Downloadable Official CompTIA Project+ Student Guide

The Official CompTIA® Project+®
Student Guide (Exam PK0-004)
Course Edition: 2.0
Acknowledgements
PROJECT TEAM
Laurie A. Perry, Project+, Author

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Thomas Reilly, Vice President Learning
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The Official CompTIA®
Project+® Student Guide
(Exam PK0-004)
Lesson 1: Defining Project Management Fundamentals... 1

Topic A: Identify Project Management Basics.................................. 2
Topic B: Describe the Project Life Cycle........................................ 12
Topic C: Identify Organizational Influences on Project
Management............................................................................ 20
Topic D: Define Agile Methodology...............................................31
Lesson 2: Initiating the Project......................................43

Topic A: Identify the Project Selection Process.............................. 44
Topic B: Prepare a Project SOW..................................................... 55
Topic C: Create a Project Charter..................................................58
Topic D: Identify Project Stakeholders.......................................... 64
Lesson 3: Planning the Project...................................... 71

Topic A: Identify Project Management Plan Components...............72
Topic B: Determine Stakeholder Needs......................................... 80
Topic C: Create a Scope Statement............................................... 89
| The Official CompTIA® Project+® Student Guide (Exam PK0-004) |
Lesson 4: Preparing to Develop the Project Schedule............ 97

Topic A: Develop a WBS.......................................................................... 98
Topic B: Create an Activity List............................................................. 104
Topic C: Identify the Relationships Between Activities........................... 112
Topic D: Identify Resources.................................................................. 121
Topic E: Estimate Time......................................................................... 126
Lesson 5: Developing the Project Schedule......................... 133

Topic A: Develop a Project Schedule..................................................... 134
Topic B: Identify the Critical Path.......................................................... 144
Topic C: Optimize the Project Schedule................................................ 148
Topic D: Create a Schedule Baseline..................................................... 155
Lesson 6: Planning Project Costs........................................ 159

Topic A: Estimate Project Costs............................................................ 160
Topic B: Estimate the Cost Baseline...................................................... 166
Topic C: Reconcile Funding and Costs.................................................. 171
Lesson 7: Planning Human Resources and Quality

Management................................................................177
Topic A: Create a Human Resource Plan .............................................. 178
Topic B: Create a Quality Management Plan.......................................... 184
Lesson 8: Communicating During the Project .....................199

Topic A: Identify Communication Methods........................................... 200
Topic B: Create a Communications Management Plan........................... 205
Lesson 9: Planning for Risk.................................................213

Topic A: Create a Risk Management Plan.............................................. 214
Topic B: Identify Project Risks and Triggers.......................................... 226
Topic C: Perform Qualitative Risk Analysis............................................ 232

Topic D: Perform Quantitative Risk Analysis......................................... 240
Topic E: Develop a Risk Response Plan................................................. 247
Lesson 10: Planning Project Procurements.......................... 253

Topic A: Collect Project Procurement Inputs......................................... 254
Topic B: Prepare a Procurement Management Plan................................260
Topic C: Prepare Procurement Documents............................................ 265
Lesson 11: Planning for Change and Transitions.................273

Topic A: Develop an Integrated Change Control System........................274
Topic B: Develop a Transition Plan........................................................280
Lesson 12: Executing the Project........................................ 285

Topic A: Direct the Project Execution.................................................... 286
Topic B: Execute a Quality Assurance Plan............................................ 291
Topic C: Assemble the Project Team.....................................................296
Topic D: Develop the Project Team....................................................... 301
Topic E: Manage the Project Team........................................................ 310
Topic F: Distribute Project Information................................................. 315
Topic G: Manage Stakeholder Relationships and Expectations.............. 319
Lesson 13: Executing the Procurement Plan........................ 325

Topic A: Obtain Responses from Vendors............................................. 326
Topic B: Select Project Vendors.............................................................330
Lesson 14: Monitoring and Controlling Project Performance

................................................................................... 341
Topic A: Monitor and Control Project Work........................................... 342
Topic B: Manage Project Changes......................................................... 345
Topic C: Report Project Performance.................................................... 352
| Table of Contents |
Lesson 15: Monitoring and Controlling Project Constraints. 361

Topic A: Control the Project Scope....................................................... 362
Topic B: Control the Project Schedule................................................... 367
Topic C: Control Project Costs.............................................................. 375
Topic D: Manage Project Quality........................................................... 383
Lesson 16: Monitoring and Controlling Project Risks.......... 393

Topic A: Monitor and Control Project Risks........................................... 394
Lesson 17: Monitoring and Controlling Procurements......... 401

Topic A: Monitor and Control Vendors and Procurements..................... 402
Topic B: Handling Legal Issues ............................................................ 408
Lesson 18: Closing the Project............................................415

Topic A: Deliver the Final Product......................................................... 416
Topic B: Close Project Procurements.....................................................419
Topic C: Close a Project........................................................................424
Appendix A: Taking the Exams........................................................... 433
Appendix B: Mapping Course Content to CompTIA® Project+® Exam

PK0-004..................................................................................... 437
Mastery Builders................................................................................. 449
Solutions............................................................................................ 491
Glossary............................................................................................. 571
Index.................................................................................................. 597
About This Course
If you are taking this course, you probably have some professional exposure to the duties of
a project manager, or you may be embarking on a career in professional project
management. As a project manager, the ability to demonstrate best practices in project
management—both on the job and through professional certification—is becoming the
standard to compete in today's fast-paced and highly technical workplace. In this course,
you will apply the generally recognized practices of project management to successfully
manage projects.
Project managers are always under severe pressure to complete projects on time and within
budget. However, most projects fail to meet these demands and as a result, many projects
are terminated early. Successful project management requires knowledge and experience.
This course is designed to provide you with the skills needed to be a successful project
manager in today's rapidly changing world. Additionally, this course can be a significant part
of your preparation for the CompTIA® Project+® certification exam. The skills and
knowledge you gain in this course will help you avoid making costly mistakes and increase
your competitive edge in the project management profession.
Course Description
Target Student
This course is designed for individuals in various job roles who have a basic knowledge of
project management, and who participate in small to medium scale projects.
This course is also designed for students who are seeking the CompTIA® Project+®
certification and who want to prepare for the CompTIA® Project+® PK0-004 Certification
Exam. A typical student taking the CompTIA® Project+® PK0-004 Certification Exam
should have a minimum of 12 months of project management experience. Experience with
specific project management software is helpful, but not mandatory.
Course Prerequisites
To ensure your success, you should be familiar with basic project management concepts.
Basic computing skills and some experience using Microsoft Office are desirable but not
required.
Course Objectives
In this course, you will apply recognized practices of project management and understand a
project’s life cycle, roles, and skills necessary to effectively initiate, plan, execute, monitor,
control and close a project.
You will:
• Identify the fundamentals of project management.
• Initiate a project.
• Create project plans, stakeholder strategies, and scope statement.
• Develop a Work Breakdown Structure and activity lists.
• Develop project schedule and identify the critical path.
• Plan project costs.
• Create project staffing and quality management plans.
• Create an effective communication plan.
• Create a risk management plan, perform risk analysis, and develop a risk response plan.
• Plan project procurements.
• Develop change management and transition plans.
• Assemble and launch the project team to execute the plan.
• Execute the project procurement plan.
• Monitor and control project performance.
• Monitor and control project constraints.
• Monitor and control project risks.
• Monitor and control procurements.
• Perform project closure activities.
| About This Course |
How to Use This Book

As You Learn
This book is divided into lessons and topics, covering a subject or a set of related subjects. In most
cases, lessons are arranged in order of increasing proficiency.
The results-oriented topics include relevant and supporting information you need to master the
content. Each topic has various types of activities designed to enable you to solidify your
understanding of the informational material presented in the course. Information is provided for
reference and reflection to facilitate understanding and practice.
Data files for various activities as well as other supporting files for the course are available. In
addition to sample data for the course exercises, the course files may contain media components to
enhance your learning and additional reference materials for use both during and after the course.
At the back of the book, you will find a glossary of the definitions of the terms and concepts used
throughout the course. You will also find an index to assist in locating information within the
instructional components of the book. In many electronic versions of the book, you can click links
on key words in the content to move to the associated glossary definition, and on page references in
the index to move to that term in the content. To return to the previous location in the document
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As You Review
Any method of instruction is only as effective as the time and effort you, the student, are willing to
invest in it. In addition, some of the information that you learn in class may not be important to you
immediately, but it may become important later. For this reason, we encourage you to spend some
time reviewing the content of the course after your time in the classroom.
As a Reference
The organization and layout of this book make it an easy-to-use resource for future reference.
Taking advantage of the glossary, index, and table of contents, you can use this book as a first source
of definitions, background information, and summaries.
Course Icons
Watch throughout the material for the following visual cues.
Icon Description
A Note provides additional information, guidance, or hints about a topic or task.
A Caution note makes you aware of places where you need to be particularly careful
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Video notes show you where an associated video is particularly relevant to the
content.
| About This Course |
1 Defining Project
Management
Fundamentals
Lesson Time: 2 hours, 45 minutes
Lesson Introduction
Successfully managing your projects requires effective planning up-front and adherence to
the industry's best practices through every step of the process. By identifying the processes
involved in a project life cycle, you will be better prepared to initiate a project in your
organization and position it for success. In this lesson, you will identify the effective
practices of project management and related project management processes so that you will
be ready to move forward strategically and with confidence.
Lesson Objectives
In this lesson, you will:
• Identify basic concepts and terminology of professional project management.
• Identify and describe the phases and components of the project life cycle.
• Identify and describe the organizational influences on project management.
• Define the Agile methodology.
2 | The Official CompTIA® Project+® Student Guide (Exam PK0-004)
TOPIC A
Identify Project Management Basics
You want to plan and implement projects that will positively impact your organization. A thorough
knowledge of projects and project management is required to efficiently manage your projects. In
this topic, you will identify basic concepts and terminology of project management.
Business organizations around the world are using project management as a competitive advantage
to achieve corporate strategic objectives. By identifying the main elements involved in project
management practices, you can enhance the chances of success over a wide range of projects across
application areas and industries.
Projects
A project is a temporary work endeavor that creates a unique product, service, or result. It has a
clearly defined start and finish. The end of a project is reached when its objectives are met, the need
for the project no longer exists, or it is determined that the objectives cannot be met. Projects
require resources to perform project activities and lend themselves to a teamwork structure because
they draw from a range of disciplines to complete the work. Also, projects vary widely in terms of
budget, team size, duration, expected outcomes, and industries. A project is considered to be
successful when the specified objectives are met within the specified duration and budget and with
the required quality.
Example: The Intranet Website Creation Project

Consider a project authorized by a firm to create an intranet website that will display its employees'
information. The outcome of the project is the website, and the duration will depend on the
complexity and size of the work involved. The project will come to an end when the website is
posted on the server and is ready for use by appropriate users.
Subprojects
A subproject is an independently manageable component of an existing project. A project can have
multiple subprojects and they in turn can have even smaller subprojects. Usually, a subproject is
given on contract either to an external enterprise or to another functional unit in the organization.
Example: Subprojects in a Car Project

The project team working on the interior design of a solar-powered car decided to subcontract the
designing of seats and the air-conditioning system to two individual external vendors as subprojects.
Project Management
Project management is the planned effort for executing and monitoring a project in order to
accomplish its defined goals and objectives. Managing projects involves scheduling; identifying
requirements; establishing objectives; balancing quality, scope, time, and cost; and addressing the
concerns and expectations of stakeholders.
Project management is different from the management of routine, ongoing work initiatives called
operations. Projects generally involve temporary initiatives, unique circumstances, and cross-
functional teams. Projects may involve new or specially formed teams taking on new tasks and
attempting unfamiliar skills, processes, or work efforts. Operations, on the other hand, deal with the
ongoing day-to-day production of goods and services. Operations management includes such
disciplines as human resources, purchasing, sales, and maintenance.
Lesson 1: Defining Project Management Fundamentals | Topic A
The Official CompTIA® Project+® Student Guide (Exam PK0-004) | 3
Responsibilities of a Project Manager

In any given project, some of the common responsibilities of project managers include
communicating cross-functionally, managing the efforts of the team members who do not report
directly to them, and delivering work on time, within the allotted budget and specifications for
quality.
Note: The project manager's roles and responsibilities will be discussed in detail throughout this
course.
Linear Presentation
Although project management is an iterative, cyclical process in real life, it is necessarily presented in
a linear manner throughout this course.
Programs
A program is a group of related projects that have a common objective. It offers great control over
constituent projects and delivers benefits that the organization can use to meet its goals. A program
is managed by a program manager, and individual projects are managed by project managers who
work for the program manager. However, all projects need not always be a part of programs.
Projects that do not have a common objective, but still are managed in a group, are generally known
as multiple projects.
Example: A Computer Service Expansion Program

A computer servicing firm launched a new program that aims at expanding its business. This
expansion program consists of many projects such as market research to establish demand,
construction of new branch stores, franchise selection, designing the marketing campaign, and
consolidation of customer base by establishing loyalty programs.
Portfolios
A portfolio is a collection of projects, programs, and operational work to achieve the strategic
business objectives of an organization. The projects in a portfolio may or may not be
interdependent, but they are grouped to give management a broader view of the organization's
projects and their adherence to organizational objectives. For a project to be part of a portfolio, its
attributes such as cost, resource requirements, timelines, strategic goals, and benefits should be in
line with other projects in the portfolio. Portfolios are generally managed by a senior manager or
senior management teams.
Figure 1-1: A portfolio and its contents.
Example: A Company Portfolio

An alternate energy producing company designed a breakthrough technology capitalizing on solar
energy. The company's strategy is to exploit the technical know-how in all possible areas to generate
revenue and become a trendsetter. It initiated a portfolio that contains various programs and
independent projects to identify the potential use of this technology in power generation,
transportation, and domestic and industrial markets. The portfolio also included other operational
work such as administration- and logistics-related activities. It is essential for the company to ensure
that the operational work continuously supports the projects and programs.
Programs vs. Portfolios

Program management includes related and interdependent projects, whereas a portfolio may include
several otherwise unrelated projects if they all support major goals or a significant product line.
Operations
Operations are ongoing, repetitive tasks that produce the same outcome every time they are
performed. The purpose of operations is to carry out day-to-day organizational functions, generate
income to sustain the business, and increase the value of organizational assets. Operational
processes are aligned with the business requirements of an organization. Therefore, when
organizations update or adopt new objectives based on organizational needs, customer
requirements, or market demand, these processes are continuously revised to accommodate the
changes.
The following table highlights the differences between projects and operations.
Projects Operations
One-time effort Ongoing effort

Unique product or service Repetitive product or service
Example: Operations in a Computer Manufacturing Company

In order to meet its increasing customer demands, a computer manufacturing company decided to
open a new manufacturing facility. Construction of the facility would constitute a project, and when
it opens, everything from that point forward would be an operation. The company plans to reach a
break-even point in three years by achieving the desired volume of output from its new facility. The
operations to be carried out in the new facility include daily production, routine maintenance, wages
and salary credits to employees, grievance handling, logistics, and supply of finished products to the
market.
The PMO
The Project Management Office (PMO) is a centralized, permanent, ongoing administrative unit
or department that serves to improve project management performance within an organization. The
people in the PMO provide support for project management concepts, tools, training, and
mentoring to project managers; they may or may not actually do hands-on project management
themselves. The PMO will try to maintain standards across projects, provide governance, and
improve efficiency. It has the authority to make key decisions in the projects. In some organizations,
the project managers are provided, or assigned, by the PMO.
PMOs function differently in different organizations, depending on the business needs. Unlike
programs, the projects supported by the PMO may not be related to each other. The structure and
function of the PMO depends upon the respective organizational requirements. In some
organizations, the PMO may be referred to as the “project office,” “program office,” “central
project office,” “project management center of excellence,” or “program management office.”
Some of the primary functions of the PMO include:
• Maintaining project historical information.
• Managing shared resources across projects managed by the PMO.
• Monitoring project timelines, budget, and quality at an enterprise level.
• Identifying and implementing new project management methodologies.
• Creating effective project policies, documentation, and templates.
• Helping project managers develop estimates and schedules.
• Conducting routine quality assurance reviews.
• Managing communication across projects under the PMO.
The PMO may publish their policies, templates, and other documentation on an intranet site, or in a
Wiki library. The Wiki can be structured to provide links to specific procedures that should be
followed to comply with the directives of the PMO.
Example: A PMO at a Broadband Services Company

A broadband services company identified a business need to introduce a faster, more convenient,
and cost-effective service to its customers. The project managers at each broadband exchange came
out with new processes and economies of scale to improve the performance of the system. In this
case, the PMO introduced standardized processes for calculating, leveling, loading, and developing
project budgets and helped the project managers with updating the project schedules. The PMO
also planned for developing project data references and organized a best practices sharing session
every month.
Project Stakeholders
A project stakeholder is a person who has a vested business interest in the outcome of a project or
who is actively involved in its work. Stakeholders take on various roles and responsibilities; their
participation in the project will have an impact on its outcome and its chances of success.
Stakeholders may have competing interests, needs, priorities, and opinions. They may have
conflicting visions for the project's successful outcome. Project managers must identify internal and
external stakeholders as early as possible, learn what their needs are, and secure their participation in
defining the project's parameters and success criteria. While it may be difficult to negotiate to a
consensus early in the project, it is far less painful and costly than getting to the end of the project
only to learn that someone's needs were not met or were misunderstood.
Example: Project Stakeholders Involved in Constructing a Power Plant

An alternative energy producing company initiated a new project to harness geothermal energy by
building a power plant to utilize the energy for electricity generation. Stakeholders for this project
included the staff, management, and owners of the company; local and statewide elected officials;
the licensing agencies; and engineers, architects, and construction workers employed by the project.
Project Stakeholder Types

The following table describes the common types of project stakeholders and their responsibilities.
Project Stakeholder Description
Customers/end-users Customers are individuals or organizations who will receive the

product or service generated by the project. Customers can provide
some of the resources of an external project. Some of their
responsibilities include:
• Defining the needs for the project output.
• Delivering the project output.
• Paying for the project output.
Additionally, the customer might also be the end-user who will be
affected by the product or service generated by the project.
Sponsor/champion Sponsors may be individuals or groups that provide finances,
management support, and overall control of the project. The sponsor
may be internal or external to the organization. The sponsor:
• Has the financial resources for the project.
• Signs and publishes the project charter.
• Approves initial project baselines, and changes to baselines.
• Has the ultimate responsibility for the project's success.
• Signs off on all planning documents, including requirements,
business case and scope, and change requests.
• Authorizes the team to use resources.
• Champions and supports the project manager and team.
• Reviews progress and quality.
• Cuts through red tape, helps deal with roadblocks, and expedites
activities.
• Helps the project manager "market" the project to stakeholders
who may not see the benefit of it.
Portfolio managers/ Portfolio managers or executives in the portfolio review board are a
Portfolio review board part of the project selection committees and belong to the high-level
project governance side of the organization. Their review
considerations may include:
• Gauging the Return on Investment (ROI) of the project.
• Identifying the value of the project.
• Analyzing the risks involved in taking up the project.
• Identifying the factors that may influence the project.
Program managers Program managers, in coordination with the project managers,
manage related projects in a program to obtain maximum benefits.
They also provide guidance and support to every individual project.

Project Management Office A PMO is an administrative unit that supervises and coordinates the
(PMO) management of all projects in an organization. It focuses on
providing:
• Administrative support services, which include processes,
methodologies, policies, standards, and templates.
• Any key performance indicators and parameters that will allow
projects to measure their success.
• Training and mentoring support to project managers and project
team members.
• Support and guidance in managing projects and usage of tools.
• Support for resource allocation.
• Assistance in better communication among project managers,
sponsors, and other stakeholders.
Project managers Project managers are individuals responsible for managing all
aspects of the project.
The project manager:
• Works with stakeholders to define the project.
• Plans, schedules, and budgets project activities with team input.
• Works with the team to carry out project plans.
• Monitors performance and takes corrective action.
• Identifies, monitors, and mitigates risks.
• Keeps the sponsor and the stakeholders informed.
• Requests and documents scope changes.
• Provides timely reports on project metrics.
• Acts as a liaison between the project team and other stakeholders.
Project management team The project management team are those members of the project
team who perform management activities, such as:
• Acting as the procurement manager for projects that involve
multiple contracts and vendors.
• Being responsible for inputting data into the Project Management
Information System (PMIS) and confirming the accuracy of that
data.
• Assuming the role of Project Manager in his or her absence.
Project coordinator The project coordinator role exists when the organizational
structure does not warrant or support a full-scale project manager.
The project coordinator has limited decision-making responsibilities.
This role requires cross-functional coordination and duties can
include:
• Administrative support and documentation assistance.
• Time and resource scheduling.
• Quality control checking.

Scheduler The scheduler creates and maintains the project timeline. The
scheduler is proficient at using project management software such as
Microsoft® Project and other applications. Other duties might
include:
• Communicate timeline and schedule changes.
• Monitor schedule status and solicit task status from resources.
• Report schedule performance.
Project team The project team comprises the project manager, the project
management team, and other individual team members. The
individual team members perform project work and may not be
involved in the management side of the project. The project team
contains people from different groups who possess knowledge on
specific subjects or have unique skill sets to carry out project work.
The project team's duties include:
• Use expertise to contribute to completing project tasks.
• Contribute deliverables on schedule.
• Provide estimates of task duration.
• Provide estimates of costs and dependencies.
Vendors and business Vendors are external parties who enter into a contractual agreement
partners with the organization and provide components or services needed for
the project. Seller, contractor, and supplier are also used when
referring to vendors.
In the same way, business partners are external to the company and
provide specialized support to tasks such as installation,
customization, training, or support.
Functional managers Functional managers are individuals who provide resources
(people) to the project manager, who in turn assigns them to project
activities. Examples of functional managers are engineering managers,
IT managers, and other department heads. They sometimes act as
subject matter experts or may provide services needed for the project.
Operations managers Operations managers manage the core business areas such as the
design, manufacturing, provisioning, testing, research and
development, or maintenance side of the organization. Some of their
functions include:
• Directly managing the production and maintenance of the final
products and services that the organization provides.
• Handing off technical project documentation and other records to
the operations management group upon project completion.
Positive and Negative Stakeholders

Positive stakeholders usually benefit from the successful outcome of a project, whereas negative
stakeholders see negative outcomes of a successful project. A good example of positive stakeholders
is business leaders from a community who benefit from an industrial expansion project because it
involves economic growth for the community. In this scenario, the negative stakeholders will be the
environmental groups who are more concerned about the environment and will consider the project
as harmful to the environment.
Furthermore, the positive stakeholders can go to the extent of getting the needed permits to
proceed with the project because they are more interested in the project's success. But, the negative
stakeholders can block the progress of the project by demanding more environmental reviews.
The Project Manager Role

Project managers are responsible for meeting project objectives and their job role is different from
that of a functional or operations manager. Based on the organizational structure, a project manager
may report to a portfolio or program manager. The project manager works in tandem with his or
her manager to meet the project objectives and ensure that the project plan is in alignment with the
overall program plan.
A project manager should have the following characteristics:
• Knowledge: Having good knowledge of project management.
• Performance: Performing well in projects by applying project management practices.
• Personal effectiveness: Including the project manager's attitude, personality, and leadership
skills.
Note: To learn more, check out the video on CompTIA Project+ Certification.
ACTIVITY 1-1
Identifying Project Management Basics
Scenario
Your company, Greene City Capital Group (GCCG), is located in the U.S. and has a market
capitalization of over $50 billion. The company's strategic plan calls for expanding the company by
investing in the banking sector. The development and roll-out of this new business undertaking is
the focus of this program. Because the plan is backed by venture capital funds, there are some high
expectations in highly specified time frames.
The new GCCG banks are intended to be opened in different cities in the U.S. The work involved
in setting up the bank and its branches will include:
• Setting up operations in various cities in the U.S.
• Providing banking services including corporate banking, consumer banking, trade finance, and
wealth management.
• Developing software for back-end operations (such as a customer database and an enterprise
CRM) system.
• Developing front-end solutions for each of the banking services (such as the bank’s website).
A special emphasis on processes will emerge from the operational model to assess the benefits of
processes for each service. Upon completion of the program, a continuous improvement of these
processes will be ongoing.
1. Based on the scenario, how is the GCCG determining which projects will be
included in the portfolio?
○ Selecting only projects that relate to the banking expansion.
○ Selecting all projects that must be completed in the same time frame.
○ Selecting projects that the designated Project Manager can realistically handle at the same time.
○ Selecting only projects that relate to the start-up phase of projects.
2. Which statements describe the responsibilities of a PMO? Select all that

apply.
☐ To primarily approve projects that support business goals and reject projects that do not support
business goals.
☐ To audit projects for compliance to project management processes and metrics.
☐ To plan and execute projects and subprojects based on the overall business objectives.
☐ To ensure that all the projects included in the portfolio are aligned with the business' strategic
objectives and priorities.
3. Within the GCCG organization, who provides the software, templates, and
standardized policies for a project?
○ Stakeholders
○ Human resources
○ The project budget
○ The PMO
4. Which statement best describes a program?

○ A set of repetitive ongoing tasks.
○ A set of related projects that have a common objective.
○ A collection of projects that are grouped to achieve the strategic business objectives of an
organization.
○ A temporary endeavor that is undertaken to create a unique product, service, or result.
5. Which GCCG tasks produce the same outcome every time they are
performed?
○ Programs
○ Projects
○ Portfolios
○ Operations
6. Which of the following is a temporary endeavor that creates a unique product,

service, or result?
○ Program
○ Project
○ Portfolio
○ Operation
TOPIC B
Describe the Project Life Cycle
Before you can begin planning and managing your project, you need to define the project's needs,
determine which processes are appropriate, and ascertain the degree of rigor needed to meet the
project objectives. To do this, you will identify the project management processes that are generally
recognized as good practices in most projects across industry groups. In this topic, you will describe
the project life cycle.
Effective project managers combine their skills and knowledge with appropriate processes to meet
project objectives and deliver results in line with corporate strategies. By identifying the main
elements of effective project management processes, you can enhance the chances of success over a
wide range of projects across application areas and industries.
The Project Life Cycle

In order to improve management control, projects are broken down into manageable, sequential
phases of work activities. Project phases, taken together, are referred to as the project life cycle.
Project life cycles may have four or five phases, which can vary because the life cycle is customized
to meet the needs of specific projects. A project life cycle is marked by the beginning and the end of
the project. During the initial phase, the project's general scope and timing are determined. During
the intermediate phases, detailed planning occurs along with the actual work activities. In the final
phase, project-closing activities occur.
Note: CompTIA uses the term "project phases" to mean what the Project Management
Institute's PMBOK® Guide calls "process groups." The PMBOK Guide specifically defines a
phase as a group of activities that result in one or more deliverables, and a process group as a
group of project management processes. For example, the Initiating Process Group, the
Planning Process Group, and so on. This course will use the terms process group and phase
interchangeably.
Project Life Cycle Characteristics

Though projects differ in nature, size, and complexity, they display certain common characteristics.
At the beginning of the project, the cost and staffing levels are quite low. They reach the peak once
the work is carried out and drop rapidly upon project completion. Influences, uncertainties, and
risks involved with stakeholders are high at the project start and diminish over the life of the project.
Likewise, the ability to influence the characteristic of the final product, without impacting the
project cost, is high during the initial stages of a project and low toward project completion.
Project Management Processes

A process is a sequence of activities designed to bring about a specific result in response to a
business need. Project management processes are all the activities that underlie the effective
practice of project management; they are grouped into initiating/pre-project setup, planning,
executing, monitoring/controlling, and closing a project. Project management processes may
produce project deliverables, such as schedules and performance reports, or product deliverables,
such as software interface specifications or a building's foundation.
Project management processes are recognized within the profession as good practices; applying
them appropriately improves the chances of success on nearly any project.
Lesson 1: Defining Project Management Fundamentals | Topic B
Project Life Cycle Phases (Process Groups)

The processes in a project life cycle are organized into five phases (process groups). Project Life Cycle
Phases (Process
Groups)
Figure 1-2: The process groups in a project life cycle.
Phase (Process Group) Involves
Initiating Defining the need for a new project or the new phase of an existing
project, validating the project, preparing a project charter, and
obtaining approval for the project charter to move forward.
Planning Creating the project management plan. This plan addresses scope,
time, cost, quality, risk, communications, procurement, human
resources, and stakeholders. During planning, project objectives are
refined and a strategy is developed to accomplish the work in the
project or phase.
Executing Carrying out the work mentioned in the project management plan in
order to meet project specifications.
Monitoring and Controlling Regular monitoring of project performance and tracking progress
made in the project or phase. They also include changes that are to
be made to the plan when required and corrective actions needed to
get back on track.
Closing Finalizing the project activities, handing off the project or phase
output, gaining formal acceptance, tying up administrative and
contractual loose ends, and finally closing the project or phase.
Tailoring
Not every process in the project life cycle takes place in every project. Determining which processes
are appropriate for a given project is referred to as tailoring. The project manager and the project
team are responsible for tailoring the applicable processes to meet the needs of a specific project or
phase.
Project Life Cycle Outputs

Specific outputs are generated at the end of each process group.
Process Group Outputs
Initiating • Project purpose • Assignment of a project manager,

• Goals and objectives management sponsor, functional
• Project charter manager, and user representative
• Business case • Constraints and assumptions
• High-level scope definition
• High-level risks
Planning • Project management plans • Cost estimates
• Scope management plan • Cost management plan
• Scope statement • Cost baseline
• Work Breakdown Structure (WBS) • Quality assurance plan
• Activity list • Communications plan
• Project network diagram • Resource management plan
• Activity duration estimates • Roles and responsibilities
• Project schedule • Assignment of resources
• Schedule management plan • Risk management plan
• Resource requirements • Procurement management plan
• Statement of Work (SOW)
Executing • Intermediate or final work results/ • Quality improvements
deliverables • Proposals and contracts
• Change requests
• Project records
Monitoring and • Performance reports • Risks/Issues log
Controlling • Change requests • Change control reports
• Project plan updates • Budget changes
• Corrective actions
Closing • Formal acceptance and closure • Customer sign-off
• Project archives • Sponsor sign-off
• Contract file • Transition/training
• Lessons learned
Note: The Work Breakdown Structure is a logical grouping of project deliverables arranged in a
hierarchical structure that defines the total scope of work required to complete the project. This
output is discussed in more detail in future lessons.
Project Prototyping
Project prototyping is the process of creating a mock-up of a product or system. A prototype is
usually built for demonstration purposes. In the software development life cycle, a working model
on a smaller or partial scale of the system is built, tested, and reworked until an acceptable model is
achieved. This in turn facilitates the development of the complete system or product. Project
prototyping works best in scenarios where complete project requirements are not available in
advance.
Prototyping Models
The following table describes four different prototyping models.
Model Enables You To
Proof-of-principle Check some aspects of the product design without considering the
visual appearance, the materials to be used, or the manufacturing
process.
Form study Check the primary size and appearance of a product without
simulating its exact function or design.
Visual Check the design and imitate the appearance, color, and surface
textures of the product but will not contain the functions of the final
product.
Functional Check the appearance, materials, and functionality of the expected
design.
Project Stages
A project stage is a group of related project activities that results in the completion of a major
deliverable. Each stage in a project is marked by the completion of one or more deliverables, the
review and approval of which may occur before the project can go on to the next stage. Documents
and information that are created in one stage are used as an input for the next stage. A project stage
can, but does not need to, contain all phases, or process groups.
Figure 1-3: The three-stage project of constructing a stadium.
Project Governance
Project governance is a comprehensive methodology to control a project and ensure its success. It
is carried out throughout the life cycle of a project and provides guidance in the form of project
phase reviews, to monitor and control the project. Every phase in the project is formally initiated to
decide on the deliverables expected out of that phase. A management review is performed at the
start of every phase to decide whether to begin the activities of a particular phase. This assumes
significance in cases where the activities of the prior phase are not yet complete.
Governance Activities in a Project

At the beginning of each phase, it is a good practice to verify and validate the former assumptions
made to the project, analyze risks, and explain in detail the processes required to achieve a phase's
deliverables. After the key deliverables of a particular phase are produced, a phase-end review is
necessary to ensure completeness and acceptance. Even though this method signifies the start of the
subsequent phase, a phase can be closed or the project can be terminated when huge risks are
involved for the project or when the objectives are no longer required.
Note: To learn more, check out the video on Project Lifecycle Outputs and the Cumulative
Cost.
Phase-Gate Reviews
A phase-gate review, also known as a governance-gate review, is a check point review of project
deliverables and performance that occurs at the end of each phase of a project where a management
review or sign-off may be required. Each review is used to check if each phase has fulfilled the exit
criteria and is eligible to move to the next phase. The advantage of this approach is that the project
is controlled by incremental decisions based on information, rather than one big decision based on
speculation and conjecture. The disadvantage of this approach is that it may create the impression
that the project team keeps approaching management for assurance, approval, and support and
provides management with an opportunity for mentoring and guiding the project.
Figure 1-4: An illustration of phase-gate reviews in the project life cycle.
Software development projects can utilize a special type of phase gate called a quality gate. It is
located before a phase that is strongly dependent upon the outcome of a previous phase. The
Quality Gate process is a formal way of specifying and recording the transition between stages in the
project life cycle.
Note: Like phase-gate reviews, tollgate reviews also check if a project phase in a Six Sigma
project has met all the set objectives and is eligible to move to the next phase. When a phase
receives tollgate approval, the project can proceed with the next phase.
Phase-to-Phase Relationships in a Project

Multiphased projects generally follow a sequential process that ensures greater control over the
project and aids in achieving the desired product, service, or result. There are three types of phase-
to-phase relationships: sequential, overlapping, and iterative. Sometimes, multiphased projects will
have more than one phase-to-phase relationship occurring during the life cycle of a project. In such
cases, certain factors, such as the level of control, effectiveness, and the degree of uncertainty,
decide the relationship that can be applied between phases. Based on these factors, all three types of
relationships can be applied between different phases of a project.
Phase-to-Phase Relationship Types

Each phase-to-phase relationship has specific characteristics.
Relationship Type Description
Sequential • Contains consecutive phases.

• Starts only when the previous phase is complete.
• Reduces the level of uncertainty, which produces reliable cost and
duration estimates but which may eliminate the possibility of reducing
the project duration later in the project cycle.
Overlapping • Contains phases that start prior to the completion of the preceding
phase.
• Increases the level of risk and can cause rework if the subsequent phase
begins before it receives accurate information from the previous phase.
Iterative • Includes one phase at a time that will be planned and carried out.
• Requires planning for the next phase as the work in the current phase
progresses.
• Is largely helpful in environments that are quite uncertain and
undefined.
• Reduces the need for long-term planning.
• Helps in minimizing project risk and maximizing the business value of
the product.
• Is an extension or corollary of the overlapping relationship, but in this
case the same phase repeats itself multiple times—once in each
iteration.
Progressive Elaboration
Progressive elaboration is defined as the process of increasing the level of detail in a project
management plan as more information and more accurate estimates become available. At the
beginning of a project, very little is known—perhaps only a high-level scope and some objectives.
As the project moves forward, requirements are determined; the scope is written; a Work
Breakdown Structure is developed; and time and cost estimates are prepared. Thus, the project
management plan becomes more detailed as the project progresses. Progressive elaboration applies
to work within a phase, as well as work between phases.
Figure 1-5: Detail is added to plans in progressive elaboration.
Rolling Wave Planning

Rolling wave planning is a technique in which work to be accomplished in the near term is
planned in detail, whereas future work is planned with much less detail. As time progresses, the
"wave" rolls forward so near-term work is always planned in more detail.
ACTIVITY 1-2
Describing the Project Life Cycle
Scenario
As the Project Manager for the GCCG bank start-up project, you need to identify the components
of the project life cycle in order to best lead the project team. The major strategic activities that have
been identified are as follows.
1. In which project life cycle process group would you have prepared the activity
table for the GCCG bank start-up project that is shown?
○ Initiating
○ Planning
○ Executing
○ Monitoring/Controlling
○ Closing
2. For the GCCG bank project, in which project life cycle process group will you
create the project scope, refine objectives, and develop a strategy to
accomplish the work in the project or phase?
○ Initiating
○ Planning
○ Executing
○ Closing
3. When you regularly measure progress and identify variances from the project
management plan, in which phase of the bank project life cycle will you be?
○ Initiating
○ Planning
○ Executing
○ Closing
4. At which phase will you integrate people and other resources to fulfill the
project management plan for the bank project?
○ Initiating
○ Planning
○ Executing
○ Closing
5. Your governance team conducts phase-gate reviews throughout the project

life cycle. For which of the following reasons are phase-gate reviews
conducted?
○ To check the results against the exit criteria of each phase.
○ To direct multiple projects in an organization.
○ To establish a strong foundation for the approval of the project.
○ To monitor the projects within the programs and create the required benefits.
TOPIC C
Identify Organizational Influences on Project
Management
As you advance in your development as a project manager, carefully integrating the roles and
responsibilities of everyone involved with the projects will effectively ensure that they have a clear
understanding of their duties. In this topic, you will examine some organizational structures and
project interfaces and document the roles, responsibilities, and reporting relationships of the people
working on your project.
As project manager, you want to ensure that everyone working on your project is assigned
appropriate duties. In order to ensure this, you need to clearly understand the influences of
organizational cultures and styles on the projects you manage and document the roles,
responsibilities, and relationships among each individual in the organization.
Organizational Cultures and Styles

Projects are greatly influenced by the various cultures followed by organizations. Some of the factors
that form a part of organizational culture are policies, values, management styles, and work
environment.
Factor Description
Policies Organizational policies and procedures influence the projects the

company undertakes. For example, the organizational procedures will
determine how to implement new strategies and if the work environs will
be formal or informal.
Values Values, beliefs, and expectations of an organization have a major impact
on the organizational culture. For example, the organization's strategic
decision-making choices, preferences, and approach will vary, based on its
values and beliefs.
Management style Management style of the organization is another factor that affects the
organizational culture. For example, certain factors, such as managers
following a coaching style of management or a controlling style of
management, the employees being allowed to give feedback, and the
implementation of their feedback, are all dependent upon the different
styles followed by management.
Work environment Work ethics followed by the organization also constitute the
organizational culture. For example, some organizations may allow
employees to work anytime from 7:00 A.M. to 7:00 P.M. and some others
may want them to work strictly from 8:00 A.M. to 5:00 P.M. and work
late nights if their workload is high.
The Organizational Culture's Influence on Projects

Several aspects of projects are influenced by the organizational culture.
Project Aspect Description
Project policies and The project policies and procedures should reflect the organization's
procedures cultures, policies, and procedures.
Lesson 1: Defining Project Management Fundamentals | Topic C
Project Aspect Description

Project selection The criteria for the selection of projects are determined by the
organizational culture. For example, a competitive, ambitious, and
assertive organization will select projects with high risks, whereas a
highly rigid and authoritarian organization may not take projects
with high risks.
Project management style A project manager should adapt to the management style of an
organization. For example, a project manager cannot follow a
permissive management style in an autocratic organization where all
decisions are made unilaterally.
Team performance A project manager should adhere to a company's policies when
assessments assessing the performance of a team. For example, an employee
should not be promoted to the next level unless he or she meets all
the standards set by the organization.
Organizational Process Assets

Organizational process assets are entities that can be used to influence the success of a project.
Policies, procedures, guidelines, formal and informal plans, templates, lessons learned documents,
and even historical information come under the organizational process assets. They may also include
completed schedules, earned value data, and risk data. Any updates to the organizational process
assets are handled by the project team members.
Organizational process assets can be classified into two categories.
Category Description
Processes and procedures These are the processes and procedures the organization uses for
performing project-related tasks. Examples may include:
• Policies, product and project life cycles, and quality policies and
procedures.
• Standard guidelines, proposal evaluation criteria, work
instructions, and performance measurement criteria.
• Templates such as Work Breakdown Structures, project definition
and business case forms, the project schedule, the milestone
report, and contract templates.
• Tailored guidelines and criteria for organizational processes that
will satisfy specific project needs.
• Organizational communication requirements and project closure
guidelines.
Corporate knowledge base This is a corporate knowledge repository for storing and retrieving
information. This repository can reside in a company intranet site, or
you can use a collaboration tool such as Microsoft® SharePoint® or
similar software. Examples may include:
• Process measurement databases that provide measurement data
on processes and products.
• Project files such as scope, cost, schedule, and quality baselines;
performance measurement baselines; project calendars; and risk
registers.
• Lessons learned knowledge bases and historical information.
• Issue and defect management databases.
• Configuration management knowledge bases.
• Financial databases.
Enterprise Environmental Factors

Enterprise environmental factors are the internal or external factors that can have a positive or
negative influence on the project outcome. These factors can either support or limit the project
management options and act as inputs for planning processes. Examples of enterprise
environmental factors may include organizational culture, the human resources pool, marketplace
conditions, stakeholder risk tolerances, political situations, and project management information
systems.
Expert Judgment
Expert judgment is advice provided by individuals having expertise in a specific knowledge area,
an application area, an industry, or discipline. It is typically used to make informed decisions on a
project. Expert judgment may be obtained from internal or external sources such as stakeholders,
professionals, subject matter experts, industry groups, the PMO, consultants, and functional units.
Expert judgment can be obtained either through individual consultations, such as one-on-one
meetings and interviews, or through a panel format, such as focus groups, workshops, and surveys.
Note: During the project life cycle, expert judgment may be required only once or continuously,
for a very short period or for an extended period.
Example: Expert Judgment in Building a Financial Management Software

Application
A project team is assigned to develop a financial management software application for one of their
customers. Because the project manager and the team are well versed with the software technical
aspect but are not familiar with the financial concepts, the project manager felt that the project team
required a financial expert to be present, to help them develop the software. The expert will help
analyze the ease of use, coverage of the applications to the current financial laws, and ease of
customizing the parameters based on his knowledge of frequently changing parameters in financial
systems. The expert will also provide financial data needed to carry out usability and reliability tests
on the application while selecting an appropriate application. The expert will also suggest some
typical use cases or situations that occur while dealing with and managing a financial system. The
project manager, therefore, decided to contract a financial expert from a financial services firm. The
expert will provide his or her services throughout the project life cycle.
Organizational Theory
Organizational theory provides information on the organization of work processes and operating
practices through organizational structure, power, culture, compensation and benefits, and behavior
of people, among other things. Effective use of this information helps in planning human resources
efficiently. Project managers must understand that various organizational structures influence or
impact the individual response time and performance differently.
Project Interfaces
Project interfaces are the various reporting relationships that occur within a project and on the
boundaries of the project.
Interface Description
Organizational Reporting relationships among different organizational units. They may be

internal or external to the parent organization and include interfaces
among the project team, upper management, other functional managers
that may need to support the team, and even the organization’s customers.
Technical Reporting relationships among technical disciplines on the project that can
occur during a phase or during the transition between phases. They reflect
informal and formal relationships with people on the project team and
outside the team.
Interpersonal Formal and informal reporting relationships among individuals working on
the project, whether internally or externally.
Logistical Relationships between project team members who are distributed
geographically across different buildings, states, counties, and time zones.
Organizational Structures
An organizational structure is the compositional makeup of an organization that describes how
various groups and individuals within the organization interrelate. The structure of an organization
strongly affects how projects are managed. The type of organizational structure can influence, or
limit, the availability of resources and the terms under which those resources are available to the
project.
An organization chart is a visual representation of a project’s organizational structure. Its purpose
is to show both the reporting relationships within the project and the project’s relationship to the
parent organization.
Figure 1-6: A traditional organizational structure illustrated in an organizational chart.
Types of Organizational Structures

The following table describes the four types of organizational structures: functional, projectized,
matrix, and composite.
Organizational Structure Description
Functional • Each department is responsible for carrying out a specific,

similar set of activities.
• Multiple people perform each type of activity.
• Reporting is hierarchical, with each individual reporting to a
single manager.
• The project manager’s authority is low, relative to the
functional manager’s authority.
Organizational Structure Description

Matrix • A blend of functional and projectized structures in which
individuals report upward in the functional hierarchy, but they
also report horizontally to one or more project managers.
• The matrixed reporting scheme may be permanent or
temporary.
• May be characterized as weak, balanced, or strong, depending
on the relative authority of the project manager to the
functional manager. An organization is said to have a strong
matrix when the project manager's authority is higher than
that of the functional manager.
Projectized • The project manager and a core project team operate as a
completely separate organizational unit within the parent
organization.
• Core team members are responsible for the work of extended
team members in their functional area.
• Team members are often co-located.
• The project manager reports to a program manager and has a
significant amount of authority and independence.
• Some projectized organizations may contain their own
support systems, such as a separate procurement or personnel
department, or share support systems with the parent
organization.
Composite Most modern organizations involve all the above structures at
various levels. It is a combination of all the other types of
organizations.
Functional Organizational Structure

In a functional organization, team members are loyal to their department and report only to their
functional manager. The project manager is part-time on the project and reports to a functional
manager; the team members are part-time as well. The project manager role is usually assigned to a
staff member who has only limited authority over team members because they report to the
functional manager. Overall, a functional organization makes for an inefficient project organization.
Examples of a functional organization include organizations that are dominated by silos, which are
defined as compartmentalized functional units, such as sales, engineering, production, and so on.
Figure 1-7: Functional organizational structure.
Matrix Organizational Structures

In a matrix organization, team members maintain a home in their department and report to both the
functional manager and the project manager. The project manager is full-time on the project while
team members are part-time. Overall, a matrix organization constitutes a complex and costly but
reasonably effective project organization.
The strength of the matrix is influenced by the project manager's authority over the project team
and how divided the resources are between the project and their functional department. The
following figure illustrates a matrix organizational structure.
Figure 1-8: Matrix organizational structure.
Note: The authority of the project manager is what defines a strong, balanced, or weak matrix.
The project manager's authority level is not indicated in the functional organizational structure
shown in the figure.
Projectized Organizational Structure

In a projectized organization, team members do not belong to a department so they can be loyal to
only the project. This provides flexibility in assigning ad hoc resources to a specific project. Both the
project manager and team members are full-time on the project, and the project manager has full
authority over team members because they report to only him or her. Overall, a projectized
organization makes for an efficient project organization. Examples of a projectized organization
include all organizations that exist solely to run projects, such as consulting firms or engineering
firms.
Figure 1-9: Projectized organizational structure.
Note: A purely projectized organizational structure like the one shown in the figure is only
theoretical because it does not allow for functional areas.
Relative Authority in Organizational Structures

Relative authority refers to the project manager’s authority relative to the functional manager’s
authority over the project and the project team. In a purely functional organizational structure, the
project manager’s authority is low relative to that of the functional manager. Conversely, in the
project-based organizational structure, the opposite is true.
The following table illustrates the relationships found in each organizational structure.
Relationship Functional Matrix Projectized
Team members are Functional department Conflicted loyalty Project

loyal to
Team members report Functional manager Both functional Project manager
to manager and project
manager
Project manager's role Part-time Full-time Full-time
is
Team members' role is Part-time Part-time Full-time
Relationship Functional Matrix Projectized
Control of project Low Medium High

manager over team
members is
Note: To learn more, check out the video on Leading Without Authority.
Example: Relative Authority at a Manufacturing Company

A computer hardware manufacturing company has a functional organizational structure and its
management is hierarchical. A project manager coordinating the company's participation in a trade
show has engineers, designers, and sales and marketing executives assigned to the project, but does
not have functional authority over those resources; they all report to their functional managers in
their own departments. The authority of the project manager is low relative to that of the functional
managers. Conversely, a web design company has a project-based organizational structure, with
independent project teams working on their own projects. A project manager in this organization
has much more autonomy and authority.
ACTIVITY 1-3
Identifying Organizational Influences on Project
Management
Scenario
Senior management asked you to determine the organizational structure and the working styles to be
followed in the organization and its possible impact on the projects you will be directing. But before
you start working on it, you need to verify your knowledge on the organizational structures and
functions.
1. Choose the organizational structure where the authority of the project

manager is the highest.
○ Functional
○ Projectized
○ Matrix
○ Composite
2. Which of the following best defines an organization chart?

○ The various reporting relationships that occur within the project and on the boundaries of the
project.
○ The compositional makeup of an organization that describes how the various groups and
individuals within the organization interrelate.
○ A visual representation of the project’s organizational structure, whose purpose is to show both the
reporting relationships within the project and the project’s relationship with the parent organization.
○ The project manager’s authority relative to the functional manager’s authority over the project and
the project team.
3. Which organizational structure is a combination of all the other types of

organizations?
○ Matrix
○ Functional
○ Composite
○ Projectized
4. For projects that you have successfully managed, which organizational

structure was the most supportive of your timely completion of the project?
A: Answers will vary, but will probably include some type of projectized or matrix organization
structure that provides the project manager with the necessary authority and autonomy.
TOPIC D
Define Agile Methodology
Many of the projects you manage will follow the methodology addressed throughout this course.
However, you should be aware of an alternative methodology that is becoming increasingly popular,
particularly in the IT profession. Many application developers are using it to deal with the frequent
challenges that development and programming projects face. This topic will introduce you to Agile
project management.
Basics of Agile Methodology

Agile project management is an iterative and incremental project management approach that
focuses on customer value and team empowerment. In Agile project management, the product is
developed in iterations by small and integrated teams. Each iteration can span anywhere from two to
four weeks, and after each iteration, the working product with increased functionality is shared with
the client for feedback. These frequent feedback sessions allow the developers to continuously
improve the product and reduce the risk associated with product development. In Agile project
management, the teams are involved in the project right from the planning stage and are responsible
for estimation. Therefore, there is a shift in the role of the project manager from the taskmaster role
taken in traditional projects to that of a facilitator.
To be successful in using any methodology, you need to understand the underlying values and be
able to identify with them. These values control the way a theory is implemented. Similarly, you
must be aware of the underlying values for successfully implementing Agile. Knowledge about the
values of Agile will guide you to change your behavioral practices to implement Agile. Usually, in
any project, short-term individual goals act as a hindrance to long-term team goals. Such focus
prevents teams from effectively finishing the project. To prevent this, Agile is based on a set of basic
values, which include communication, simplicity, feedback, courage, and humility.
Principles of Agile
There are six basic principles of Agile that you should follow to successfully implement the Agile
project management approach. The following table defines the principles of Agile.
Principle Description
Customer Value Agile project management focuses on providing value to customers in

terms of the product, time, and cost. The customer is an integral member
of the team. Requirements that are most important to the customer are
developed first followed by requirements that are lower on the priority list.
Further, customers can change either this priority or the features that are to
be developed before each iteration.
Iterative and With this iterative and incremental delivery, you can adapt the features to
Incremental Delivery be developed in subsequent iterations based on customer feedback. This
principle reduces monetary risks associated with the project, and reduces
effort spent on nonessential features by focusing on high-priority items at
any given point.
Lesson 1: Defining Project Management Fundamentals | Topic D
Principle Description
Intense Collaboration Customer requirements are first documented in a simple list that is defined
and prioritized by the customer and any change to these requirements is
acceptable. Intense collaboration among team members is critical to ensure
common understanding of the requirements. You can ensure intense
collaboration by facilitating face-to-face communication among team
members as they design, develop, test, and document the feature.
Additionally, intense collaboration is necessary to bring together the
business and development teams of the project.
Small and Integrated Ideally, an Agile team for each iteration should be small—comprising two
Teams to eight members who are talented, competent, and self-disciplined
individuals. Keep the overall team size to a minimum number so you can
co-locate team members and facilitate smooth, face-to-face
communication. In addition, ensure that each Agile team has members with
diversified roles to include a variety of perspectives and suggestions and
better plan each iteration. It also facilitates the estimation of time for the
different features of the product.
Self-Organizing All customer requirements are subject to change and just enough planning
Teams that is essential for each iteration is used. Therefore, teams need to be self-
organized so they can make timely decisions, and are empowered to do so.
This increases their ability to organize themselves in a way that
accomplishes project goals most efficiently. Agile project management can
be a success only if all Agile team members commit to the process and
discipline themselves to follow it.
Small and Agile project management contains small development cycles that are used
Continuous to develop the product by feature and receive client feedback on each
Improvements feature. This allows teams to adapt to change and, in the process, reflect
and learn, thus leading to continuous improvements in features in
subsequent development cycles. When the product is developed in small
development cycles, Agile teams frequently go through the complete
development process, which gives the teams the opportunity to make
continuous improvements in development procedures, team
communications, and customer interactions.
The Scrum Process

Scrum is an Agile methodology that has been developed over the last decade and can be applied to
a variety of projects. It focuses on iterative and incremental delivery of products. Scrum owes its
popularity to a simple approach, high productivity, and its scope for applicability to multiple areas.
When you use Scrum as a development process, you create the product by using customer
requirements as the starting point. Then, you assign a priority to each of these requirements based
on their priority to the customer. The list is shared with the team, which then breaks each
requirement into sub-tasks. The whole team works simultaneously on the sub-tasks that are part of a
single client requirement. Each team member picks a sub-task, gives an estimate, and starts working
on the assigned sub-task. The requirement is worked on by the team and becomes a set of features
of the finished product. Then, the team starts working on the next requirement in the queue. As
sections of the product are created, they are shared with the client for review and approval.
Figure 1-10: The Scrum process.
Note: The term Scrum is derived from rugby, in which “scrum” refers to “the method of
beginning play in which the forwards of each team crouch side by side with locked arms.”
User Stories
User stories are customer requirements or features. Each user story emphasizes the functionality of
the feature and how it adds to the final product. User stories can vary in size and complexity. Based
on a common theme, smaller user stories can be combined into an epic for convenience. These are
also called parent and child stories.
Scrum Roles and Responsibilities

When you decide to implement Scrum management, you first start with identifying the various roles
in Scrum as they are different from the traditional roles. Scrum requires each of these roles to be
actively involved in the development process.
• Product Owner—an individual or an organization who is responsible for gathering inputs about
a product from the customer and translating the requirements into the product vision for the
team and stakeholders.
• Scrum Master—an individual who serves, protects, and supports the team like a coach or
facilitator and works closely with the Product Owner but does not control the Scrum team. The
Scrum Master can be either part-time or full-time.
• Scrum Team—dedicated, self-managing, cross-functional, fully empowered individuals who
deliver the finished work required by the customer. The size of the team can range from 3 to 15,
depending on the project.
• Stakeholders—individuals who can affect or be affected by the project either positively or
negatively. Most importantly, the customer is included and engaged as a relevant stakeholder.
• Customers—an individual, or representative for an organization, who requires the end product.
Role Responsible for
Product Owner • Consolidating all client requirements into a prioritized set of

deliverables.
• Defining the features of the product based on market value.
• Managing project ROI and risk.
• Adjusting features and their priority on a regular basis.
• Participating actively in all planning and review meetings of the project.
• Providing answers to questions raised by project teams from time to
time.
• Determining the release plan for deliverables and communicating it to
all stakeholders.
• Accepting or rejecting work results.
Scrum Master • Helping the team by trying to resolve issues or blocks that the team
faces.
• Improving the productivity of the team and keeping it effective.
• Enabling close cooperation among various roles and functions.
• Keeping track of training requirements for the team to avoid delay in
deliverables.
• Protecting the team from outside interference or disruption.
• Protecting the interest of the Product Owner and maximizing the ROI.
• Organizing and facilitating Scrum-related activities and meetings.
• Ensuring that the team follows Scrum standards.
Scrum Team • Selecting the goal and specifying work results.
• Organizing the team and work.
• Demonstrating work results to the Product Owner.
• Providing the Product Owner with inputs and ideas about the final
product.
• Working within project guidelines to reach the goal.
Stakeholders • Helping the product owner define the goal and vision of the project.
• Attending planning meetings and helping team members with
prioritizing components on a regular basis.
• Optionally attending daily team meetings but not participating in the
proceedings.
• Attending review meetings to assess regular progress.
Customers • Defining the product requirements.
• Being involved in the review phase of each deliverable.
• Participating throughout the process.
Stages of the Scrum Process

The Scrum process is based upon a workflow that contains the following steps which are used to
manage a Scrum project. Noted within each of the four major steps are detailed substeps.
1. Create a vision for the project.
a. Talk to the customer.
b. Talk to the stakeholders.
c. Interview potential users.
2. Create a Product Backlog.
a. Itemize the customer requirements.

b. Verify the order of importance for each of these items from the customer.
c. Perform market research to decide on the priority of these items.
d. Use this input to create a prioritized Product Backlog.
3. Set a broad release plan.
a. Choose a release type.
b. Identify a release date.
c. Identify major components in the release.
4. Create a Sprint Backlog.
a. Organize a Scrum Team.
b. Identify a senior team member as the Scrum Master.
c. Invite the Product Owner, Scrum Master, and team members for a planning meeting.
d. Ask the Product Owner to explain the project vision.
e. Allow the team to decide on the Sprint goal.
f. Set the timeline for the Sprint.
g. Allow the participants to identify tasks from the Product Backlog for the Sprint Backlog.
h. Split large tasks and combine smaller ones.
i. Validate the items on the Sprint Backlog with the team.
Product and Sprint Backlogs

There are two different types of backlogs that are used in Scrum. A Product Backlog is a
prioritized list of customer requirements and it is the first step of Scrum. Here, priority is based on
the riskiness and business value of the user story. The Product Owner creates the Product Backlog
based on a user story, with input from each stakeholder including the team, customer, end users,
and other interested parties. A Product Backlog can hold items of varying size.
A Sprint Backlog is a list of user stories selected from the Product Backlog that the Scrum Team
chooses and commits to complete in that Sprint cycle. The team decides upon highly cohesive, low
coupled chunks of work that form the Sprint Backlog and is used to create a deliverable at the end
of the cycle. Once the team decides on the Sprint Backlog, nothing more can be added to the list
during the cycle. If the customer requirement changes or the Product Owner identifies any
additional stories, they are added to the Product Backlog and not to the Sprint Backlog. This ensures
high productivity as the team focuses on the agreed plan even when there are additional customer
requirements. However, this approach does not lead to loss of flexibility to accommodate change
because change requests are incorporated in subsequent Sprints.
The Sprint Cycle

A Sprint (or Sprint cycle) represents a complete process from planning to delivery and demo of a
part of the product. When the Product Owner defines and prioritizes the Product Backlog, the
Sprint cycle begins.
The first step in this cycle is to arrange a Sprint planning meeting to create a detailed plan. The
Product Owner reviews the vision, release plan, and Product Backlog with the Scrum Team at the
start of the Sprint cycle. A Sprint cycle lasts one to four weeks, during which an agreed upon
amount of work is completed to create a deliverable. As a result, analysis, design, development,
review, and closure occur in every Sprint. At the end of every Sprint cycle, the team has a working
product that is demonstrated to the Product Owner, other team members, the Scrum Master,
customers, stakeholders, experts, and executives.
Figure 1-11: The Sprint Cycle.
Iterative Approach
In each Sprint, a chunk of the project is planned, developed, and delivered. User stories within the
scope of the Sprint are designed, developed, and tested. At the end of the Sprint, the set of stories
that are tested and ready is delivered as a near-releasable product to the customer and the team
receives early feedback from the customer. This feedback helps develop subsequent Sprints. A
Sprint is completed on a set date whether or not the work is completed. If a team is unable to meet
the set target at the end of a Sprint, then the team is expected to acknowledge that it did not achieve
set goals. Incomplete tasks are then added to the Product Backlog.
The Agile management principle is based on reasonable intensity and a sustainable pace. Therefore,
there is no downtime between Sprints. One Sprint Review leads to the next Sprint planning meeting.
Burndown Charts
A burndown chart is a tool that is used to track the progress of the project by plotting the number
of days of Sprint against the number of hours of work remaining. Unlike other tracking charts that
are used to track how much work has been completed to date, a burndown chart is used to track the
pending work until the team’s commitment is complete. The burndown chart displays the progress
of the team toward the goal.
In an ideal situation, the burndown chart is expected to be a downward sloping graph that will hit
zero on the last day. However, this is not always the case because as the project progresses, the team
might discover unexpected complexities or issues that may cause work to slow down, which further
leads to increased number of hours of work remaining. If the burndown chart is not a downward
sloping graph, then it signals the team to do things differently or increase the pace of their work. It
also creates a feedback loop and enables the teams to improve the estimation by committing to only
the amount of work that they can accomplish in a Sprint. Usually, the teams over or under commit
in the first few Sprints. However, this improves after some time and the commitments are aligned
with the work accomplished. You can create a burndown chart using a paper and pen or a
whiteboard rather than creating the chart electronically.
Note: When you use a burndown chart to track a Sprint, the burndown chart is referred to as
Sprint burndown chart. However, when you use the burndown chart to track a release, it is
known as a release burndown chart. In a release burndown chart, you plot the iteration number
against the X-axis and the number of story points against the Y-axis.
Figure 1-12: Burndown chart and the supporting data.
Daily Standup Meetings

The daily standup meeting is a meeting in which the complete team gets together for a quick
status update. These meetings are short, 15-minute meetings that are conducted by standing in a
circle. The standup meetings should be ideally conducted at the start of working hours, and the
presence of all team members involved in the Sprint is mandatory. In these meetings, each team
member who is a part of the Scrum is expected to summarize the tasks that were completed on the
previous day, the tasks that are to be completed on the present day, and any roadblocks that the
member might be facing.
The daily standup meetings enable team members to self organize and lead to a professional and
appreciative environment. To ensure effective daily standup meetings:
• Time the meetings and keep the duration of the meetings to a maximum of 15 minutes.
• Ensure that the standup is a huddle rather than a meeting.
• Make sure all attendees stand up during the daily standup meeting.
• Signal the end after the meeting ends.
• Establish high-energy levels by discussing solutions for complicated problems offline.
The Closure Process

The Closure phase of the Sprint cycle consists of three stages: Sprint retrospective, Starting next
Sprint, and Release planning.
Closure Phase Activity
Sprint retrospective The Product Owner, Scrum Master, and the Scrum Team attend the
Sprint retrospective meeting to analyze from a process perspective what is
working well and what is not and to agree upon changes to implement.
This meeting may even have an outside facilitator if it adds value to the
discussions. This is a critical part of the Scrum process where the team is
empowered to change the process if it is not working. This is in line with
the Scrum philosophy of making the process work for the team, not the
other way around.
Starting next Sprint The next Sprint starts soon after the previous Sprint finishes. After the
Sprint review and retrospective meetings, the Product Owner
consolidates the input from the meetings and the additional priorities that
came in during the Sprint and incorporates them in the Product Backlog.
The team then goes back into Sprint planning and decides the backlog for
the next Sprint.
Release planning It is possible while closing a Sprint that the customer may want to close
the release and start using the product, so that the value from the
completed features is delivered sooner. It should be part of the Closure
process of a Sprint to determine if the entire product or some of the
features can be released to the customer before proceeding with new
development. The Product Owner could either decide on a set release
date or a set of products to be released. A special “Release Sprint” may be
planned to integrate all the modules and do a final testing before the
launch.
Agile Comparison to Other Methodologies

In the world of project management, you might encounter other methodologies, such as PMI's
PMBOK and PRINCE2. Each methodology has its own principles and processes that make it
unique to its adopters and practitioners. When comparing Agile to other project management
methodologies, there are some notable differences. The comparisons listed are general in nature, and
do not provide detail of specific methodologies.
• Agile is considered to be more informal while others can be seen as more formal.
• An iterative approach (Agile) enables quicker bursts of output rather than the result of a longer,
sequential approach where all planning is completed before execution begins (Waterfall).
• Agile is cyclical and not linear, whereas others tend to be linear.
• The outputs are incremental deliverables that are constantly being improved rather than a single
final product.
• Self-empowered teams collaborate with customers to achieve the best possible output while
other methodologies focus on process and tools.
• Responding to lessons learned ensures continued improvement while others can be hindered by
sticking to the plan.
Each methodology follows its own specialized doctrine and history of how it came to be commonly
known. For Agile, this began with the Agile Manifesto for Software Development. For more information
about Agile, see agilemethodology.org or one of the many websites related to Agile project
management.
Although the information provided here is a brief comparison of Agile and other project
management methodologies, there is more information than what can be summarized in this course.
You will definitely want to do some research on your own. Here are two links to help you get
started.
• Project Management Institute (PMI) and the PMBOK Guide (www.pmi.org)
• PRINCE2 (www.axelos.com/best-practice-solutions/prince2)
ACTIVITY 1-4
Describing Agile Methodology
Scenario
In the new bank start-up project, one of the major activities will be creating a website for each bank
branch office. Such development projects are particularly well-suited to the use of Agile
methodology. Use your knowledge of the Agile methodology to answer the following questions.
1. How is Agile project management different from traditional project

management? How will these differences benefit particular project types?
A: Answers will vary. In Agile, the product development and delivery is done in iterations, unlike
traditional project management in which the finished product is delivered to the client. This helps
the teams provide customer value and avoid rework by modifying the subsequent deliverable
based on any global feedback. In Agile, constant communication among the customer, teams, and
stakeholders is emphasized. This facilitates aligning the final project with the project requirements.
2. Which Agile principles should you follow to make an Agile meeting a

success?
☐ Ensure customer value by including new requirements in the requirements list.
☐ Maintain stringent timelines for the team to keep each requirement on schedule.
☐ Use iterative and incremental delivery to get approval for the features as they are developed.
☐ Discuss the possibility of sending only the finished product for approval to get complete feedback
on all aspects before proceeding.
☐ Collaborate with the customer to clearly understand all of the requirements.
3. What are the different values of Agile that you should remember when dealing
with your team members and why?
A: Answers may vary, but will include communication because customer requirements can keep
changing and clear communication enables the teams to understand the requirements better, and
humility because this motivates the professionals on the team to contribute fully.
4. Who is responsible for creating the project vision?

○ Scrum Team
○ Scrum Master
○ Customer
○ Product Owner
5. What experience, if any, do you have with using Agile to manage projects?
A: Answers will vary depending on students' experience with a variety of projects and the amount of
time that they have been managing projects. Less experienced project managers might not have
the exposure to using Agile, but most project managers have some experience with managing
projects iteratively and in short bursts.
Summary
In this lesson, you discovered that a solid foundation is the essential building block to successfully
manage projects. You identified the project management phases, or process groups, that are
recognized as good practices in any given project across industries. Now, you are better prepared to
initiate a project in your organization.
What types of project management experiences have you had?
A: Answers will vary, but may range from very informal, short-term projects to a full blown, long-term
project that involves a large number of people in your organization.
How does the ability to tailor each of the project management process groups to
each project or phase improve your chances of project success?
A: Answers will vary, but might include: the five project management process groups are a recognized
worldwide standard that was created over time by experienced project management professionals.
The process groups have been tried and tested and have found immense success in project
management. No two projects are the same, and therefore the activities and processes in the process
groups will not be applicable for all the projects. Therefore, project managers should tailor these
processes to meet the specific requirements or needs of a project or phase. Also, tailoring helps
achieve more predictable outcomes.
Lesson 1: Defining Project Management Fundamentals |
2 Initiating the Project
Lesson Time: 1 hour, 45 minutes
Lesson Introduction
Project management is an integrated endeavor composed of five interlinked phases (process
groups) and their component processes. Initiating is the first of five process groups that you
will perform on virtually every project you manage. Starting a project is like starting a new
job; the more you know about the company, your team members, and what is expected of
you, the more likely you are to hit the ground running and make a good impression.
Ensuring that your project starts out right will save you time and resources. It will also
eliminate the need to backtrack once your project is officially underway. In this lesson, you
will initiate a project, a critical first step in laying the foundation for your project's success.
Lesson Objectives
• Identify the project selection process.
• Prepare a project statement of work.
• Create a project charter.
• Identify project stakeholders.
TOPIC A
Identify the Project Selection Process
Projects should solve a business problem or seek to achieve a business opportunity. So, it is
important to clearly identify and define the problem or opportunity your project seeks to address.
Once you understand the project, it is imperative for you to ensure that the project's requirements
align with the stated operational or strategic goals. Additionally, you need to identify the ways in
which decision makers make critical choices among competing projects. In this topic, you will
identify some of the most significant components of project selection.
In increasingly competitive business environments, there will always be projects competing for
funding, resources, and priority. As a professional project manager, you will not be responsible for
selecting projects that your organization will pursue, but you need to understand the methodologies
behind making sound choices about what projects to pursue, prioritize, fund, and when. Applying
appropriate project management methodology to this area will increase your chances for success.
Strategic and Operational Relevance

Strategic relevance of a project determines whether the project should be done—in other words,
does it align with the company's strategic goals. Strategic relevance serves as a checkpoint and
requires that the project objectives and the strategic priorities are clearly defined and communicated
by senior leadership. It is important to remember that strategic objectives are inherently dynamic
and can be influenced by unpredictable market events.
Note: A project can meet the business requirements of solving a particular business problem in
a particular department, but may not be deemed strategically relevant by senior management.
Senior management determines the prioritization of resource allocation for the organization. If
your project is not strategically relevant, you will lose sponsor support.
Establishing operational relevance is a responsibility that requires the project objectives and
operational priorities be clearly defined and communicated by tactical management and decides if
the project should be taken up. It is important to remember that operational priorities will be heavily
influenced by both established and emerging strategic priorities
Relative Authority
The relationship between the project manager and functional managers is going to be heavily
influenced by organizational context. In strong matrix organizations, the balance of power rests with
the project manager, whereas in a weak matrix organization, the balance of power rests with the
functional manager. In many ways, both project and functional managers share tactical
responsibilities with varying degrees of authority. This reality can cloud the process of establishing
the operational relevance of any project. While strategic relevance is often easy to determine and
because the source of organizational direction is more clearly defined, the determination of
operational relevance requires that the accountability and authority for operational priorities be
clearly established and communicated.
Reconciliation of Strategic, Tactical, and Operational Goals

It is important to attune the project’s business, functional, and technical goals with the
organization’s strategic, tactical, and operational goals. Primarily, the organization’s strategic goals
are set by the executive management. These goals need to be reconciled to the project’s business
requirements. Then, the functional requirements must be reconciled to both the project’s business
goals and the organization’s tactical goals, which are set by project and functional managers.
Lesson 2: Initiating the Project | Topic A
Similarly, the project’s technical requirements must be reconciled to both the organization’s
operational goals and the functional and business requirements.
Figure 2-1: The process of reconciling a project to the organization's strategic, tactical, and
operational goals.
Project Requirements
A project requirement is a statement that defines the functionality that a project is designed to
accommodate and how the functionality will be achieved and satisfied by the solution. Project
requirements can be classified as business, functional, or technical.
• Business requirements define why the project is being conducted, and every project must
satisfy a business need or it should not be pursued. Projects typically address pressing
organizational needs or market stimuli that drive decision makers to sponsor projects and
prioritize competing projects.
• Functional requirements refer to what the project will accomplish. These requirements detail
the desired functionality, capacity, or capability expected from the project.
• Technical requirements detail how the project will meet the business and functional
requirements, including technical needs that are crucial for a project.
Figure 2-2: A list of project requirements for a travel reservation company to increase its market
share.
Project Selection Criteria

Project selection is the act of choosing a project from among competing proposals. Project
selection criteria are the standards and measurements an organization uses to select and prioritize
projects. The organization's strategic goals provide a source for at least one dimension of selection
criteria. Any project selected should be clearly linked to one or more strategic goals. Other selection
criteria may be qualitative or quantitative. Qualitative criteria deal with the project's suitability with
the organization's capabilities, while quantitative criteria may specify financial targets that the project
must meet.
Example: Project Selection Criteria at a Financial Services Organization

A financial services organization considering a project proposal to integrate their customer and
financial databases may develop the following project selection criteria:
• Links to the organization’s strategic goal of obtaining a technological advantage over the
competition.
• Qualitative criteria—feasible to produce using only internal resources.
• Quantitative criteria—meet or exceed the defined internal goal of increasing new sales revenue
by 10 percent.
Project Selection Methods

Project selection methods are systematic approaches that decision makers use to analyze the value
of a proposed project. These evaluations may be formal and detailed or informal "guesstimates,"
depending on the organization and its needs. Ideally, project selection methods should take into
account the organization's strategic objectives and historical information about past successes and
failures.
Example: Selecting Projects

A financial services firm that has the opportunity to implement two new projects, but has resources
for only one, may perform an analysis of the projected cost, projected duration, and projected
financial benefits to prioritize the one that will give greater financial return within a specific period
of time.
Project Selection Decision Models

Project selection can be difficult because each project may present a complex array of seemingly
incomparable selection criteria. Economic and technological considerations often influence project
selections. In many application environments where ecological, health, and ethical impacts are
increasingly important, often the only way to choose from many different project alternatives is by
relying on unsubstantiated professional judgment or past experience. To improve the efficiency and
effectiveness of the assessment, many organizations use formal decision models to select the
appropriate project to initiate.
A project selection decision model provides a framework for comparing competing project
proposals by helping decision makers compare the benefits of one project with another.
Decision Model Type Description
Benefit measurement Analyze the predicted value of the completed projects in different
models ways. They may present the value in terms of forecasted revenue,
ROI, predicted consumer demand in the marketplace, or the
Internal Rate of Return (IRR).
Mathematical models Use different types of mathematical formulas and algorithms to
determine the optimal course of action. Variables such as business
constraints, the highest possible profit that could be made on a
project, and the laws and safety regulations that govern business
operations may be considered.
Capital Budgeting
Capital budgeting helps senior executives make decisions about when and whether to make
significant investments in capital expenditures such as new equipment, machinery, and facilities.
Capital budgeting is often used if a project is large or if it is likely to involve the purchase of fixed
assets. In these cases, the decision makers may use formal methods such as payback period,
Discounted Cash Flow (DCF), and Net Present Value (NPV).
Scoring and Rating Systems

A scoring and rating system is used to find the best available solution or outcome.
Rating System Description
Decision tree In a decision tree model, selection criteria are arranged along the
branches of a tree flowchart. The project is evaluated against criterion
#1 on branch #1. If the project meets the criterion, it travels down to
branch #2, where it is evaluated against criterion #2, and so on. If the
project fails to meet any one criterion, it is removed from consideration.
Rating System Description

Criteria profiling This is similar to the decision tree model in that the project is evaluated
using one criterion at a time. However, in this model the project
continues to be considered even if it fails to meet some of the criteria.
At the end of consideration, the project is scored on the number of
criteria met. The score is then compared to other projects also under
consideration. The standard format of criteria profiling is considered an
unweighted factor model because the same score is assigned to each
criterion in the profile.
Weighted factor This type of model is similar to criteria profiling, but different criteria
may be weighted and factored into the scoring. For example, a project
may get one point for meeting a low-priority criterion and three points
for meeting a high-priority criterion.
Q-sorting In a Q-sorting model, groups of people rate the relative priority of a
number of projects. The process begins by determining rating criteria.
Each group member is given a deck of cards with a different project
listed on each card. Each group member sorts the deck into high,
medium, and low priority, based on the predetermined criteria. The
high-priority projects are further sorted to identify very high priority
projects. The group compares their high priority project selections. Any
projects they decide to pursue will be chosen from among the
consensus of high-priority projects.
Delphi technique This technique allows experts to be located remotely and remain
anonymous, yet still participate in group decision making. People
participating in a Delphi process are given criteria, asked to rate a
project on a zero-to-ten scale, and provide reasons for their ratings. The
resulting statistics are fed back to the participants along with a summary
of the group's reasoning. Participants can then revise their ratings based
on the group findings. The process repeats until some predetermined
stop criterion (number of rounds, achievement of consensus, etc.) is
reached.
Feasibility Analysis
Feasibility analysis is an evaluation method for proposed projects to determine if they are feasible
to the organization in terms of financial, technical, and business aspects. It gives management the
technical and operational data needed to make a decision about project selection. In many cases, the
feasibility analysis is based on expert judgment about current technological developments, in-house
technical capabilities, and historical data relating to previous project phases.
If the feasibility analysis is a formal study, it should include:
• The description of the problem that the project is expected to solve.
• The summary of relevant historical data about previous project phases.
• The summary and evaluation of available technologies that could be used to solve the problem,
including the potential output quality of each.
• The evaluation based on current assessment of the organization's technical capability and
readiness to use each technology.
• The estimate of costs and time to implement each alternative.
• The statement of assumptions or constraints used to derive the previous evaluations and
estimates.
• Recommendation as to the best alternative to pursue, based on projected cost, time, and quality.
• The statement of project goals and major development milestones.
Example: Feasibility Analysis Performed by a Utility Company

A Canadian utility company produced a feasibility analysis for a proposed project involving the use
of wind turbines to generate renewable electricity and offset losses incurred from rising oil prices.
The data to be analyzed included:
• Historical data such as wind data collected over a year, a wind energy assessment, and a wind
speed frequency distribution.
• Technical data, including the analysis of the anticipated power quality and stability.
• Financial and economic data, including detailed information about projected costs, capital
expenditures, and operational and management costs.
• A summary of impacts on the environment, sound, wildlife, public safety, and land use.
• A conclusion that summarized the analysts' findings and a recommendation regarding the wind
turbine project's feasibility.
Cultural Feasibility
Cultural feasibility is an organizational characteristic that measures the extent an organization's
shared values support the project's goals. The proposed solution must be accepted and implemented
for the organization to derive any real benefits. In order to determine the feasibility of a project, the
cultural issues that may prevent the absorption of the proposed change must be detected. This can
be achieved by looking at the relationship among people, processes, and platforms involved in the
implementation of the solution.
In order to thoroughly examine cultural feasibility, you should consider these questions:
• What key business processes are involved in the proposed change?
• What is the essence or nature of those business processes?
• Who within the organization supports those key business processes?
• What is the technical proficiency of the staff and can they handle the proposed change?
• What is the technical proficiency of the intended audience or customers and can they handle the
proposed change?
• Does the intended audience believe that the proposed project solution can help or benefit them?
Example: Initiatives to Improve an Organization's Sales Performance

The sales group for a toy manufacturer was consistently failing to meet their sales goals. In order to
help them out, senior management purchased each salesperson a wireless PDA to help them
manage their relationships and contacts. Six months after the PDAs were rolled out, the sales
numbers had not improved. When senior management inquired as to how the PDAs were helping
the sales force, they discovered that the PDAs were not being used. As it turned out, the PDAs were
incompatible with the database that the sales force was accustomed to using. A vast majority of
them did not know how to use the new tool and were not interested in learning. Even those who
did learn were forced to enter all their contact information on two separate systems, which took
time that could have been spent with customers. Most salespeople just left the PDAs in the trunks
of their cars. In this case, a project that was designed to increase sales was a failure.
Let us revisit the same toy manufacturer. Again, the sales force was failing to meet its goal. This
time, however, senior management took into account the anti-technology culture of their sales force.
Instead of supplying the salespeople with PDAs, management provided higher-end sales kits, such
as including marketing slicks and promotional materials, that could be used to help them get in the
doors of major toy distributors. This time, the sales number improved, because the salespeople were
given tools they were more inclined to use.
Technical Feasibility
Technical feasibility is a study to analyze the technical considerations of a proposed project. The
technical feasibility of a project cannot be determined until the impact to existing systems is fully
quantified. A Subject Matter Expert (SME) should be brought in to assist in the quantification of
the systems' impact when you encounter the following situations:
• The proposed project has never been attempted before.
• The proposed project will interact with any key business process or mission-critical systems.
• The project team for the proposed project does not contain personnel sufficiently knowledgeable
or certified in key aspects of the technology in question.
• The systems' impact cannot be accurately re-created and tested in a simulation environment.
Example: Local Deli's Technical Feasibility

Let's look at the example of a local deli that specializes in providing takeout services for a nearby set
of large office buildings. The owners of the deli had one of their employees, Jim, who is a student at
the local university, build a Microsoft® Access® database for the purpose of tracking information
surrounding their growing takeout business. Several successful marketing campaigns developed an
awareness of the deli's services, and the takeout business was now responsible for over 60 percent of
revenue and 75 percent of profit. Predictably, the information in the database grew dramatically, and
within 18 months, the business had outgrown the original database. The owners want to upgrade the
database, but are unsure if they should bring in outside help or let Jim handle the situation. Let's
compare this situation to our definition:
• Neither the deli owners nor Jim have ever done anything like this before.
• The proposed IT project will interact with a vital revenue stream that contributed 75 percent of
the total profit.
• The project team does not contain anyone certified as an expert with the platform.
• The deli owners do not have the technical or financial resources required to construct a testbed
environment that will allow for a test of any upgrade.
The deli owners decide to bring in an outside firm to help them with this situation because they met
the conditions described as requiring an SME. Within the first 15 minutes of the discussion, the
owners are told that all the information in their database can be transferred to a more capable
database platform, but they lacked the expertise to upgrade Access to SQL or Oracle®. A database
designer is brought in and within a month the deli owners are up and running with a powerful new
solution that Jim is being trained to administer.
First-Time/First-Use Penalty
Many IT projects suffer from what is called a first-time/first-use penalty, which means that a
particular type of project has never been done before and nobody within the organization has any
experience with the operation of this new capability. One of the more serious first-time/first-use
penalties is the proper quantification of the impact that the change will make to existing systems.
Because nobody within the organization has experience with the situation at hand, SMEs will be
needed to provide a detailed look at the system's expected impact. It is exceedingly difficult to
determine the technical achievability of any IT project until the effect on existing systems is fully
quantified.
Cost-Benefit Analysis
Cost-benefit analysis presents a project's estimated costs alongside its predicted benefits to help
decision makers make informed decisions about project selection. Cost-benefit analysis may be
formal or informal. Although the analysis contains quantitative information, it is merely forecast
expectations rather than hard data. It is important to recognize and document any assumptions used
to derive cost and benefit forecasts.
The costs include current operating costs and expected project costs related to the function under
analysis. The benefits include quantifiable benefits, such as increased sales or reduced costs expected
as a result of the project, and intangible benefits such as enhanced image or brand awareness that
can only be described subjectively.
Example: Cost-Benefit Analysis for Developing an E-commerce Capability

Senior management of a large retail firm is considering a proposal for the development and addition
of an e-commerce capability on their existing website to increase revenue. Before committing,
management asks each department director to evaluate the feasibility and provide rough cost
estimates. The directors then agree that the project is indeed feasible given their current capabilities
and should cost around $25K.
The VP of Sales and Marketing estimates that the e-commerce site will generate a five percent
increase in sales in the next five years. Given the company's current sales of $1 million, the estimated
improvement will result in an additional $50K in sales over the next five years. With $25K in
upfront costs, the net benefit is estimated to be $25K. The cost-benefit analysis results in a rough
estimation of the company's net gain.
Workflow Analysis
Workflow analysis is a technique that formally documents the manner in which work gets done
and displays that work in a flowchart. This type of analysis can be helpful in breaking down large or
complex jobs into discrete tasks and decisions, but it requires that you already know how to do the
work. Sometimes, you may encounter situations where you have limited experience with the
problem at hand. In these cases, you need help to precisely determine the functional requirements.
Once the discrete steps involved in getting a piece of work completed are identified, technology can
be applied to improve efficiency.
Example: Automating Processes in a Bank

Every day people go to the bank to make deposits. The image shows what a workflow analysis for
this particular task may look like. Millions of people automate this process with direct deposit, which
is a form of Electronic Funds Transfer (EFT). The automation of this business process means that
those bright and sunny Saturday mornings no longer need to be spent at the bank. In the same way,
automating business processes can free up time spent on rote activity so that more important issues
can be addressed.
Figure 2-3: Workflow analysis for a bank deposit.
Business Process Automation

Increased efficiency is usually accomplished by automating redundant tasks within the workflow that
require complex calculations. The most common task automated in our everyday working
environment is information retrieval.
Use Cases, Prototypes, and Scenarios

Use cases, prototypes, and scenarios are tools that are used to create or refine functional
requirements by providing a perspective or point of interaction that did not previously exist. This
newly created point of interaction allows for more detailed input to the design process.
Tool Description
Use case analysis A method for designing systems by breaking down requirements into user
functions. Each use case is an event or sequence of actions performed by
the user.
Prototype A simulated version of a new system; essential for clarifying information
elements.
Scenarios A method for developing potential or likely eventualities for different
situations.
Example: Use Case Analysis and Prototype for a Lawn Mowing Project
Imagine for a moment that you have been told to mow a lawn and that although you have a vague
understanding of the process, you have never done this before. A Business Analyst, John, shows up
and questions you about how you would like to cut the grass. He performs a use case analysis by
breaking down the larger task of cutting grass into a sequence of actions, such as start the mower,
push over grass, stop the mower, and empty the bag.
A day later an engineer shows up in your driveway with a prototype lawn mower on a trailer. The
engineer patiently spends about an hour explaining the proper operation of the mower and
answering any questions that you have. Without really knowing what to expect, you start the mower
and begin to cut the grass. Hours later, you complete the task and the Business Analyst returns to
ask you how the mowing went. You inform him that the mower was too loud, it stalled in thick
grass, and was very difficult to push. The interaction with the prototype lawn mower succeeded in
providing concrete feedback that otherwise would not have been possible. Based on the feedback
given, the analyst decides to perform further testing using other scenarios such as mowing in very
thick grass, wet grass, and on uneven terrain.
ACTIVITY 2-1
Reviewing Project Selection
Scenario
As a Project Manager, you have been assigned to manage the e-Banking Portal project that is an
important component of GCCG's plan to create branch banks. To understand the priorities and
focus of the PMO selection process, you facilitate a meeting with GCCG’s senior management. To
participate effectively in the discussions with these senior decision makers, you need to verify that
you can define the standard project selection processes.
1. What experience have you had with the pre-selection process of a project?
Have you been included in the decision-making process as either a
participant or an influencer?
A: Answers will vary depending on students' experiences. It's important to stress that the majority of
project managers are not involved in the project selection process; however, project managers
need to understand the rationale behind the decision making and selection process.
2. Which group of project requirements will GCCG use to discover the

contribution a project makes toward the business of the organization?
○ Business Requirements document
○ Functional Requirements document
○ Use Case
○ Prototype
3. Which option should be the primary driver for GCCG's project selection
criteria?
○ Strategic objectives
○ Cost-benefit analysis
○ Feasibility analysis
○ Root cause analysis
4. In GCCG's decision-making methodology, there are 10 weighted project

criteria that yield a score to determine the project's priority. One of those
criteria is purely subjective for those times when an emphasis on go-with-
your-gut is appropriate. The resulting statistics are fed back to the participants
along with a summary of the group's reasoning. Participants can then revise
their rating using a zero-to-ten scale. The process repeats until consensus is
reached. Which combination of scoring and rating systems is being used?
○ Decision tree and weighted factor
○ Decision tree and Q-sorting
○ Weighted factor and Q-sorting
○ Weighted factor and Delphi technique
5. You moved into the feasibility analysis and cost-benefit analysis of project
selection. This is the company-wide training initiative to be implemented for all
managers to understand the specifications and features of the e-Banking
Portal. The intent of the training is to ensure that the members of the
management team understand the scope, time, and costs when managing
their respective functions in creating the e-Banking Portal. The program will
include specific technology training in the use of a software application that
GCCG is developing so that managers can create, manage, and track their
respective banking transactions. Currently, only 10 percent of the managers
are using the software. What are the benefits associated with this project?
A: The benefits include: 1. Consistency can be maintained across all transactions. 2. Managers at all
levels can identify what is involved in managing high-level transactions. 3. The company's
strategic objective can be reinforced before software implementation.
TOPIC B
Prepare a Project SOW
One of the first documents you will prepare for your project is a Project Statement of Work. It is
generally a narrative description of the work that the project is going to perform, and it is the
starting point from which many other project documents will be written. In this topic, you will focus
on creating an effective Project Statement of Work.
SOW
A Statement of Work (SOW) is a document that describes the products or services that the project
will supply, defines the business need that it is designed to meet, and specifies the work that will be
done during the project.
A SOW can be internal or external.
• An internal SOW is supplied by the project's sponsor in response to an organizational need. It is
generally referred to as the Project SOW.
• An external SOW is usually supplied to a potential client during the procurement process. An
external (or procurement) SOW could be included with a request for a proposal or as part of a
contract. The Procurement SOW is discussed in detail in the Planning Project Procurements lesson.
Project SOW
The Project SOW describes the products, services, or results that the project will deliver. It either
contains or references the following:
• Business need. There are several business-related reasons that an organization might undertake
a project. These include:
• Market demand
• Technological advance
• Legal requirement
• Government regulation
• Environmental consideration
• High-level scope definition. This includes the characteristics of the product, service, or result.
It is generally brief, because it is too early in the project to have much detail available. This
information also includes any high-level project risks that are known at this time.
• Strategic plan. This contains the organization’s strategic vision, goals, and objectives, and
possibly a high-level mission statement. Every project should be aligned with the organization’s
strategic plan.
Guidelines for Preparing a Project SOW
A Project SOW will provide direction and definition to a project. Because this document will be
used as a reference when creating other project-related documents, it's important to provide the
appropriate definition and description of the project in the SOW. Use the following guidelines when
preparing your Project SOW:
• Provide the description and the high-level scope of the project. This might include its benefit to
the organization and the business need that is driving the project.
Lesson 2: Initiating the Project | Topic B
• Identify the major deliverables and any anticipated milestone events.

• Identify any known resource requirements, such as human resource needs, hardware, software,
funding, and so on.
• Identify any high-level project risks or concerns that might affect the project.
• Define the criteria that will indicate when the project is complete.
• Use the mandated Project SOW format, if your organization has one. If not, you can modify a
Project SOW from a previous, similar project.
ACTIVITY 2-2
Preparing a Project SOW
Data File
C:\095016Data\Initiating a Project\SOW Template.docx
Scenario
You and two other members of the PMO have been selected to create the project SOW for the
GCCG e-Banking Portal project. You know that GCCG has its own IT department and software
development team.
Note: Activities may vary slightly if the software vendor has issued digital updates. Your
instructor will notify you of any changes.
1. What has been your experience with creating a project SOW?

A: Answers will vary depending on students' experience as a project manager.
2. What is the first logical step in preparing this project SOW?

○ Providing a description of the project completion criteria.
○ Verifying if you should use the standard GCCG SOW format.
○ Listing every person or work group that will perform actual work on the project.
○ Presenting the information in a logical sequence.
3. Based on the scenario, which components should be included in the SOW?

Select all that apply.
☐ A clear description of what is required for the e-Banking Portal project.
☐ The specifications as to how the e-Banking Portal project will be produced and methods for
ensuring that the specifications have been met.
☐ A detailed breakdown of all deliverables that will be required to complete the project.
☐ A list of the human resources or work groups that will perform actual work for the project.
☐ The estimated date of completion of the project deliverables.
4. Yes or No? Based on the scenario, do you think that it will be necessary for
GCCG to create an additional external SOW for this e-Banking Portal project?
☐ Yes
☐ No
5. From the C:\095016Data\Initiating a Project folder, open SOW Template.docx

and discuss how you would complete it.
6. Open C:\095016Data\Initiating a Project\Solutions\Completed SOW.docx and

compare your completed SOW to it.
TOPIC C
Create a Project Charter
Determining the appropriate project management processes to apply to your project is an important
step in initiating the project. However, before you can apply organizational resources to project
activities, you need to obtain formal authorization for the project. In this topic, you will create a
project charter.
To accomplish project objectives, you need the organization's support. Without it, you may be
unable to convince anyone that your project is valuable to the organization or obtain the resources
you need. An effective project charter ensures that you gain your organization's support for the
project and the authority to apply resources to project activities.
Business Case
A business case is a document that justifies the investments made for a project and describes how
a particular investment is in accordance with the organization's policy. It outlines the technical,
investment, and regulatory factors that influence the project. The business case provides a
framework to link an investment proposal to the achievement of an organizational objective. While
project managers are not always the people who write the business case, it's important that they
understand it.
Example: A Business Case for a Geothermal Energy Project

GCCG is considering a geothermal energy project as an element of its strategy to diversify its
business portfolio. Senior management at GCCG has scheduled a meeting to review project
selections by the PMO. The project sponsor, Barbara Tolliver, will present a business case that
outlines the technical, investment, and regulatory factors influencing the project. She prepared a
business case that includes:
• Details of the proposed investments with the timeline.
• Expected returns from the project with the proposed timeline.
• Expected ROIs.
• Reference to the payback period in the context of organizational strategies and project
objectives.
Business Case Components

A business case can include a number of components, as described in the following table.
Component Description
Business need Substantiates the business reason for conducting the project.
Project contribution Determines the project's contribution toward the organization's
objectives.
Stakeholders Lists the project stakeholders, their expectations, and contributions
toward the project.
Constraints Compiles the limitations of the project.
Strategic risks Lists the risks that the project may face and the possible risk
management measures.
Benefits evaluation Analyzes and outlines the key benefits to be obtained.
Lesson 2: Initiating the Project | Topic C
Project roles Lists the members of the project team and their respective job roles in
the project.
Benefits realization plan Provides an outline of the benefits of the proposed project.
Contingency plan Outlines the alternate solutions for unplanned events.
Project Charter
A project charter is a document that formally launches and authorizes a new project, or authorizes
an existing project to continue with its next phase. A project receives authorization when the
initiator signs the project charter. To be successful, the project must link to the ongoing work of the
organization and it must match its goals and capabilities with business requirements. The project
charter may be developed by an initiator, such as a sponsor, or it may be delegated to the project
manager. If the project charter is created by the sponsor, it is advisable that the project manager also
be involved in the development process.
Note: Project charters can be publicized by using a company intranet. However, all project
stakeholders will not be given the rights to view the published charters.
Figure 2-4: The project charter for the GCCG e-Banking Portal project.
Project Charter Components

Like many project management documents, the format and level of detail contained in the charter is
determined by the PMO or senior organization management. Some charters are relatively brief,
whereas others can contain some or all of the components as described in the following table.
Project purpose A clear description of the reason for undertaking the project.
Problem statement A description of the problem or opportunity that the project must
address.
Project authorization A list of individuals who are authorized to control and manage the
project with the respective authority statement.
Scope definition A description of the scope of work that the project must include. It
can also specify what the project will and will not include.
Project objectives A description of the business benefit that an organization achieves by
performing the project.
Project description A high-level list of what needs to be accomplished in order to
achieve the project objectives. This section should also specify when
it is deemed that the specified objectives must be met.
Project deliverables A list of deliverables that must be produced at the end of each phase
of the project.
Project milestones and cost A list of project milestones and the cost estimates.
estimates
General project approach A short description of the project approach, which includes project
deliverables, process stages, quality objectives, and project
organization.
Constraints and A description of the constraints and assumptions that are made when
assumptions initiating the project, and their impact on scope, time, cost, and
quality.
Risks A list of high-level risks involved in undertaking the project.
Project stakeholders A list of key project stakeholders.
Related documents A list of references to the documents that are used to make
assumptions.
Project organizational A list of key roles and responsibilities, including signatories.
structure
Issuing authority Name of the sponsor and signature or formal acknowledgement of
the charter contents.
Example: Creating a Project Charter for an Internal Process Improvement Project

The vice president of a software development company, Catherine Long, is authorized to initiate an
internal process improvement project. She asked her program manager to help her draft the project
charter. Catherine, along with her program manager, develops a project charter to formally authorize
the project. The Process Improvement project is named in the memo and the memo's date serves as
the authorization date. The memo establishes the authority of her colleague, John, as the project
manager and provides John's contact information. Because Catherine is the project sponsor, she also
includes her contact information.
The business need to improve the internal processes and procedures to improve time to market,
while striking the appropriate balance between quality and speed, is clearly stated. The memo
provides a brief description of the service and product of the project, which is to analyze the current
processes and procedures and make recommendations.
The known constraints of completing the project with minimal impact on current project schedules
within three months are included in the memo. Catherine's signature is on the memo, which is being
distributed to all the department directors, vice presidents, and project managers who may be
affected by or involved in this project. It also establishes the priority of the project and asks these
groups to lend their support.
Guidelines for Creating a Project Charter

An effective project charter clearly communicates the project's importance to the organization and
formally authorizes the project. To create an effective project charter, follow these guidelines:
• Gather the prerequisites required to create a project charter.
• From the project SOW, gather the products or services to be delivered by the project.
• Use a business case to understand the market demand, organizational and social
requirements, and customer requests.
• Mention the contract information if the project is commissioned for an external customer.
• Keep in mind that many factors, such as company culture, government or industry standards,
stakeholder risk tolerances, market conditions, human resources, and information systems,
have an impact on the project charter development process.
• Use a corporate template, if one exists in your company.
• Involve an expert who can provide relevant information to develop a project charter.
• Include the project and authority identification information, such as the title of the project and
the date of authorization, the project manager's contact information, and the contact information
of the initiating authority (usually the customer or sponsor).
• Include a clear, concise description of the business need, opportunity, or threat that the project is
intended to address:
• Does the project charter clearly identify all the pertinent information about the project?
• What are the circumstances that generated the need for the project?
• What is the market demand for the product or service?
• Consider any legal requirements associated with the project.
• Has all extraneous information been clearly excluded from the project charter?
• Include summary descriptions of the product or services of the project—the required outcome
of the project and the critical characteristics of the product or service.
• Include a description of the project's relationship to the business need it is intended to address—
the importance of doing the project now, and how the project addresses the business need,
opportunity, or threat for which it is intended.
• Consider any known constraints and assumptions:
• Are there any known time, cost, scope, quality, or resource issues or factors that will limit the
way you and your project team can approach the project?
• Are there any factors or issues that you and your project team will presume to be true, real, or
certain in order to begin planning your project?
• Is there a risk of any project delays?
• Are there any budget constraints?
• Are there going to be problems with resource availability?
• Will the project require internal or external resources?
• Ensure that the person signing the document has the appropriate signing authority.
• Distribute the signed charter to the appropriate project stakeholders, such as the project team
members, customer and any relevant vendors, relevant functional managers, and the Finance and
Accounting departments.
ACTIVITY 2-3
Creating a Project Charter
Data File
C:\095016Data\Initiating a Project\Project Charter.docx
Scenario
Your project SOW is now complete and you have just finished another meeting with Vicky Morris,
who asked you to create the project charter for the e-Banking Portal project. Vicky will sign the
authorization for the project upon its completion. The project has been given the name “GCCG e-
Banking Portal.” The PMO allocated a budget of $1 million for this project. The project must finish
no later than April 30th because GCCG Bank is proposed to start functioning in June.
Before creating the project charter, you decide to review your notes from previous meetings.
• The project team should create a database that will link each customer's information and the
banking services each customer uses.
• All the services provided by the bank should be made accessible to the customers from the same
website window.
• One of the organizational goals is to complete the GCCG e-Banking Portal project within one
year.
• There are high expectations that by initiating this project, there will be significant growth in the
bank's revenue.
• The banking personnel should be given adequate training on the processes and on the software.
• The online portal should be designed in such a way that the customers access all the services of
the bank through a single-sign-on feature.
• The response time during transactions should not exceed four seconds.
1. What is a project charter?

A: A project charter is a document that formally recognizes a project's existence and authorizes the
project manager to undertake the project.
2. Open C:\095016Data\Initiating a Project\Project Charter.docx and compare its

contents to your discussion of the following questions.
3. What are some items that belong in the project charter?

A: Answers include the project name, the authority level of the project manager, the sponsor
signature, and possibly the scope. However, a detailed budget or Work Breakdown Structure is
not expected at this time.
4. What are the goals and objectives of this project?

A: Answers will vary, but may include: to develop a new consumer portal that will integrate all
banking-related services through a single sign-on feature to the customers of the bank.
5. What is the project's impact to the organization?

A: Answers will vary, but may include: the new portal will improve customer satisfaction and increase
the credibility, reliability, and revenue of the bank.
6. Are there any assumptions that you will include? If so, describe them.
A: Answers will vary, but may include: because this is a new foray of integrating banking services in
the e-Banking Portal, the company will expect the technology and technical skills required for this
integration to be made available for project execution. Suitable subject matter experts will be
made available for the integration of the banking services. Required hardware and software will be
procured before required by the project schedule. The requisite project team will be recruited prior
to the time the team members are needed to perform their activities.
7. Based on what you know at this point, how will you describe the primary
deliverable for this project?
A: Answers will vary, but may include: effective implementation and running of the e-Banking Portal is
the major deliverable of this project.
8. At this time, what are the constraints that should be noted in the project
charter?
A: The project must be completed on or before April 30, and within the $1 million budget.
TOPIC D
Identify Project Stakeholders
You have a project charter providing the formal authorization to apply organizational resources to
project activities. Before you can begin the planning process, it is vital to identify the groups or
individuals who will have a role to play either directly or indirectly in the project. In this topic, you
will identify the stakeholders of your project.
Stakeholders are an integral part of any project and extensively support the success of the project. It
is imperative that you document relevant information regarding stakeholders' interests and
expectations because they strongly influence a project’s product or service.
Stakeholder Analysis
Stakeholder analysis is the formal process of gathering and analyzing quantitative and qualitative
information to identify all the stakeholders of a project. It also involves building coalitions at the
onset of a project by identifying stakeholder needs, objectives, goals, issues, and impact.
Stakeholder analysis is performed through a series of steps:
1. Identify all potential stakeholders of the project.
2. Classify stakeholders based on their potential impact or support on the project.
3. Plan for likely stakeholder reaction or response and plan how to enhance stakeholders' support
and mitigate potential negative impact on the project.
Ideally, project managers will question the stakeholders about their interest in the project, their
desired outcome, their goals, and any lessons learned from prior projects. This increases the
effectiveness of the stakeholder analysis process. As the project progresses, the analysis will be
validated against the current state of project work and stakeholders' changing needs.
Figure 2-5: The process of analyzing project stakeholders.
Stakeholder Register
A stakeholder register is a document that identifies stakeholders of a project. Typical stakeholder
register entries may include the stakeholder's name, organizational position, location, role in the
project, contact information, requirements, expectations, influence on the project, specific interest in
the project or a phase, and whether the stakeholder is internal, external, for, against, or neutral to the
project.
Lesson 2: Initiating the Project | Topic D
Figure 2-6: A portion of the stakeholder register for the e-Banking Portal project.
Stakeholder Management Strategies

A stakeholder management strategy is created to ensure maximum support and minimize the
negative impacts of stakeholders throughout the project life cycle. The stakeholder management
strategy is created by the project manager when identifying stakeholders, and might not be shared
with the project team. The strategy information is ideally represented in a stakeholder analysis
matrix.
Components of a Stakeholder Management Strategy

A typical stakeholder management strategy could include:
• Stakeholder identification—a list of the identified stakeholders along with their identification-
related information.
• The stakeholder map—a chart showing the interest of different stakeholders and levels of
participation required from each identified stakeholder.
• The stakeholder analysis influence and importance matrix—a matrix that describes the
stakeholders based on their influence and importance to the project.
• The stakeholder list—a list of various stakeholder groups involved in the project and their
management.
• Stakeholder communication—a description of how the project will engage various stakeholders,
the communication routes, and the frequency of communication for each stakeholder or group
of stakeholders.
• Communication efficiency—specifies how the efficiency of the communication process will be
measured.
The Stakeholder Analysis Matrix

The stakeholder analysis matrix is a document that lists the project stakeholders and describes
their interests and the ways in which they influence the project. The stakeholder analysis matrix is a
shared document, and therefore it is imperative that the project manager exercises proper judgment
and due caution with regards to the kind of information and detail that needs to be included in it.
Figure 2-7: An example of a stakeholder analysis matrix.
Example: Identifying the Computer Networks Upgrade Project Stakeholders

Andrew is the project manager for the Computer Networks Upgrade project in a training
development company. He collects project information that includes the project charter, the
organization structure, the organization's policy documents, the lessons learned and the stakeholder
register of previous projects, and other relevant documents related to the current networking and
computer resources deployed within the company. He studies the information gathered to identify
the stakeholders from senior management.
Andrew interviews the key stakeholders, such as the department heads for Marketing, Finance,
Human Resources, Content Development, Media Development, Quality Control, and Operations,
and expands the list of identified stakeholders based on these interviews. The additional
stakeholders are the department heads for IT services, customer support, purchase, administration,
and accounts. Further, Andrew classifies the stakeholders based on their potential impact or support
to the project. He documents the details of the stakeholders in the stakeholder register and based on
his assessment of each stakeholder, he defines the stakeholder management strategy in a stakeholder
analysis matrix.
Guidelines for Identifying Project Stakeholders

It is important to identify stakeholders early in the project; analyze relevant information regarding
their interests, expectations, importance, and influence; and devise a strategy to ensure their
involvement to maximize positive influences and mitigate potential negative impacts. To identify
project stakeholders, follow these guidelines:
• Perform a review of project and related information to ascertain the list of internal and external
parties who may be impacted by the project. The documents or information are a valuable source
for stakeholder identification. These may include:
• The project charter
• Procurement documents
• The organization or company structure
• The organization or company culture
• Government or industry standards
• Stakeholder register templates
• Lessons learned from previous projects
• Stakeholder registers from previous projects
• Gather the relevant documents that help you identify the stakeholder requirements.
• Use the project charter to identify the external parties who are impacted by the project, such
as the project sponsor and customers, and the team members participating in the project.
• Use the procurement documents to identify if the project involves procurement or is based
on an established contract.
• Use existing documents, such as stakeholder registers and lessons learned from previous
projects, to determine the stakeholder needs.
• Identify groups or individuals with specialized training or knowledge who can help in the
comprehensive identification and listing of the stakeholders.
• Interview the identified stakeholders to gain knowledge of their roles, departments, interests,
knowledge levels, expectations, and influence levels within the organization.
• Analyze your lists to identify the key stakeholders of the project. These include anyone in a
decision-making or management role who is impacted by the project outcome, such as the
sponsor, the project manager, and the primary customer.
• Determine and classify the potential impact or support that each stakeholder could generate
during the project life cycle and define an approach strategy. You need to prioritize the key
stakeholders to plan for efficient communication and management of their expectations.
• Assess how stakeholders will react or respond in various situations, especially bad news, during
the project life cycle. You need to plan how to influence the stakeholders to enhance their
support of the project and also to mitigate any potential negative impacts arising from them.
• Document stakeholder information to include identification, assessment, and stakeholder
classification in the stakeholder register.
• Devise a stakeholder management strategy to increase support and minimize negative impacts of
stakeholders to the project.
ACTIVITY 2-4
Identifying Project Stakeholders
Data Files
C:\095016Data\Initiating a Project\Stakeholder Register Template.docx
C:\095016Data\Initiating a Project\B2C Stakeholder Register.docx
C:\095016Data\Initiating a Project\Project Charter.docx
Scenario
The sponsor of the GCCG e-Banking Portal project, Vicky Morris, authorized the project. As part
of the project charter, a preliminary list of project stakeholders was identified. Your intent as a
project manager is to be able to identify all the stakeholders for the project. You can refer to the
stakeholder register for a similar project, the B2C project, to determine the likely stakeholders of
your project. You are in the process of creating the stakeholder register for your e-Banking Portal
project.
1. How will you establish the total list of project stakeholders for the GCCG e-
Banking Portal project?
A: Answers will vary, but may include: study the input documents, such as the project charter and the
stakeholder register, to identify the potential stakeholders of the project. The objectives, business
need, assumptions, and project description mentioned in the project charter are understood from
the perspective of the contributors in the organization. A discussion with the project sponsor will
be of great help. Document this information along with details of impact and support that these
stakeholders will have on the project.
2. True or False? Members of the GCCG e-Banking Portal project team are
considered to be stakeholders.
☐ True
☐ False
3. How will you identify the positive and negative stakeholders of the project?
A: Answers will vary, but may include: you can perform stakeholder analysis to identify all potential
stakeholders, analyze their potential impact or support to the project, assess how each
stakeholder is likely to positively or negatively react or respond to various situations during the
project life cycle, and create a stakeholder analysis matrix. This will result in creating and
documenting a stakeholder management strategy for the project.
4. Which statements are true of the stakeholder management strategy? Select

all that apply.
☐ Identifies key stakeholders who can impact the project.
☐ Describes the level of participation for each identified stakeholder in the project.
☐ Describes the government and industry standards to be applied to stakeholder management.
☐ Identifies the stakeholder groups and their management.
5. How will you establish levels of stakeholders based on their interest in the
project and the impact they can have on the project?
A: Answers will vary, but may include: you can perform stakeholder analysis to identify the various
levels of stakeholders, use interviews to gain insight into their interest in the project, assess their
support and impact on the project, and categorize these stakeholders into various levels based on
their interest and their impact on the project. You can later document this and create a stakeholder
matrix.
6. What parameters are considered while analyzing project stakeholders?

A: Answers may include: you will document information relating to stakeholders' identification, their
assessment, and their classification in the stakeholder register. This information could include the
stakeholder name, primary role or designation, their interest or objective, their influence, the
communication strategy and mode, and the artifacts or documents required for these
stakeholders.
7. From the C:\095016Data\Initiating a Project folder, use the Project Charter

and B2C Stakeholder Register documents as you complete the stakeholder
information for the e-Banking Portal project.
a) Open the Project Charter.docx and the B2C Stakeholder Register.docx to use as reference.
b) Open the Stakeholder Register Template.docx and complete the stakeholder information based on
the scenario.
c) Compare your stakeholder register to C:\095016Data\Initiating a Project\Solutions\Completed
Stakeholder Register.docx.
Summary
In this lesson, you explored the significant elements of initiating a project, which is one of the five
interlinked process groups and a critical part of every project you will ever manage. By effectively
initiating your project and laying a solid foundation for the work that will follow, you will
significantly increase your chances for project success.
How is the project initiation phase (process group) important while managing a
project in your organization?
A: Answers will vary, but may include: because project initiation involves defining and agreeing upon the
project purpose, the project’s relationship with the organization's strategic plans, the scope of work to
be done, the project deliverables, and the acceptable criteria for the product, project initiation can be
called the cornerstone of the project.
How do you think creating the Project SOWs in your organization helps you
manage your projects?
A: Answers will vary, but may include: a Project SOW gives the project management team a clear
perspective of the project and its components. It can include the name of the project, description of
high-level deliverables, key milestones, business need, description of the project’s product or
services, priority of the project, high-level risks, and key resources. The SOW helps the project
manager manage the expectations of the project and project changes. Because the Project SOW lists
the key project stakeholders, the project manager can easily keep them informed about the project's
status and issues.
Lesson 2: Initiating the Project |
3 Planning the Project
Lesson Introduction
With your project defined at a high level and authorized by the sponsor, you are ready to
begin planning your project. Project planning is the second of the five project management
process groups that you will perform on most projects you manage.
As a project manager, it is up to you to define how the project will be carried out. You will
also be responsible for identifying the stakeholders' needs so that you can ensure their
satisfaction. With the project objectives and scope clearly defined and documented, you can
lead your project toward the agreed-upon measures of success. In this lesson, you will plan
project strategy.
Lesson Objectives
• Identify the elements of the project management plan and subsidiary plans.
• Determine stakeholder needs.
• Create a scope statement.
TOPIC A
Identify Project Management Plan Components
Your project has been authorized and the charter identifies you as the project manager. While you
are eager to get started, it's advisable that you begin by planning how the team will manage the
project to its successful completion. In this topic, you will identify the elements of a project
management plan and the additional plans that support the project.
Developing a realistic, usable, dynamic project management plan helps the project team stay focused
on the objectives and purpose of your project. Continually updating your project management plan
when new information is available will help you circumvent problems before they develop and
ensure that project work occurs according to the plan.
Project Management Plan

A project management plan is a document that details how a project will be executed to achieve
its objectives. A well-defined plan consists of certain components, including:
• A description of the project management processes that will be used and the level of
implementation for each.
• A description of the tools and techniques that will be used to complete those processes.
• Plans for monitoring and controlling changes to the project.
• Details on configuration management (documented procedures for authorizing and controlling
changes to a product, service, or result).
• A description of the techniques that will be used to create and control the project's performance
baselines (scope, time, and cost).
• Techniques for communication with stakeholders.
• A definition of the project life cycle.
• A plan for identifying, documenting, and addressing open issues.
Example: A Project Management Plan for a Supermarket Chain

A national supermarket chain sought to reduce the average amount of time its customers spend
waiting in the checkout lines. The project management plan listed the necessary management
processes and the tools needed to complete those processes.
The plan also included the tasks to be completed, such as hiring more clerks and expanding
checkout areas, methods for controlling changes to the project, details on configuration
management, performance measure baselines, stakeholder communication plans, such as weekly
regional manager meetings, a project life cycle, such as implementation, evaluation, and analysis, and
the procedure for addressing open issues.
The plan also contained a cost management plan and a quality assurance management plan.
Subsidiary Plans
Project management plans might be detailed or a simple summary, and might include any number of
subsidiary management plans that are described in the following table.
Subsidiary Plan Description
Scope management plan Provides guidance on how project scope will be defined,
documented, verified, managed, and controlled.
Lesson 3: Planning the Project | Topic A
Subsidiary Plan Description

Requirements management Documents how requirements will be analyzed, documented, and
plan managed throughout the project.
Schedule management plan Describes the scheduling methodology, the scheduling tools to
be used, and the format and established criteria for developing
and controlling the project schedule.
Cost management plan Describes the format and establishes the criteria for planning,
structuring, estimating, budgeting, and controlling project costs.
Quality management plan Describes how the performing organization's quality policy will
be implemented by the project management team throughout the
project.
Process improvement plan Details the steps for analyzing work processes to identify
activities that enhance their value.
Human resource plan Provides guidance on how human resources required for a
project should be defined, staffed, managed, controlled, and
eventually released.
Communications Provides details that document the approach to communicate
management plan efficiently and effectively with the stakeholders.
Risk management plan Describes how risk management is structured and performed on
the project.
Procurement management Describes how the procurement processes will be managed from
plan developing procurement documents through contract closure.
Note: Subsidiary plans may be formal or informal, detailed or broadly framed, and are created
based on the requirements of the project.
Scope Management Plan

A scope management plan is a planning document that describes how a project team will define,
verify, manage, and control the project scope. The plan can be either formal or informal, depending
on the needs of the project.
Example: A Scope Management Plan for the Geothermal Energy Program

The project manager of the geothermal energy program, Rachel Tagon, worked with the core
project team to construct the scope management plan. The plan contains a description of how
frequently and extensively the scope is expected to change, how the project team will identify,
discuss, and classify changes to the scope, and who will approve the changes.
Requirements Management Plan

A requirements management plan is a document that describes how project requirements will be
analyzed, documented, and managed throughout the project life cycle. Phase-to-phase relationships
between various phases of the project strongly influence how requirements are managed.
Components of the requirements management plan require project managers to choose the most
effective relationships to aid the success of the project and document this approach in the plan.
Components of the requirements management plan include:
• Methods to plan, track, and report requirement activities.
• Configuration management related activities.
• Processes for requirements prioritization.

• Formats and guidelines on developing a traceability matrix for requirements.
Example: A Requirements Management Plan for GCCG's Warehouse

Management Software Project
The project manager for GCCG's Warehouse Management Software project, Mark Anderson,
prepares the requirements documentation for the project. Mark documents the requirements
collected during the Warehouse Management Essential Requirements workshop and through
subsequent interviews conducted with each stakeholder. He creates the requirements management
plan with information on how these requirements will be analyzed, documented, and managed
throughout the project life cycle.
Schedule Management Plan

A schedule management plan, one of the subsidiary plans in the overall project plan, is an approach
to develop, maintain, and manage the project schedule.
A typical schedule management plan describes:
• The purpose of the plan.
• Approved schedule development tools and techniques such as a particular project management
software application.
• The number, types, and purposes of the project schedules to be developed and maintained.
• How changes to the schedule baseline will be managed.
• Who is responsible for developing and maintaining the project schedules.
• How and when schedule performance will be reported.
Example: A Schedule Management Plan for a Warehouse Management Software

Project
The schedule management plan clearly describes the project team's approach to developing the
schedule and for making changes to the schedule baseline. The plan names the person responsible
for maintaining the project schedules and contains a policy for schedule performance reporting.
Cost Management Plan

A cost management plan is a document that outlines the guidelines for planning, estimating,
budgeting, and controlling project costs. It describes how risk budgets, contingencies, and
management reserves will be communicated and accessed. It also provides the planning and
structure necessary to control project costs and keep them within the budget limits. The plan can be
formal or informal, detailed or brief, depending on the needs of the project.
Example: A Cost Management Plan for a Construction Project

You are the project manager of a construction project, and you want to develop the cost estimate
and budget for your project. You believe that setting up a base document enlisting the guidelines for
cost management will help the project. You tailor the existing guidelines and define the cost
management plan incorporating the estimate, methods, and procedures required for calculating
direct and indirect costs involved in the project. You also mention the process for calculating
contingency costs.
Quality Management Plan

A quality management plan is a document that describes a team’s approach to implementing the
quality policy. It explains how quality control and quality assurance will be performed. It may be
formal or informal, depending on the project's requirements.
Example: Ensuring Quality in an Outsourced Task

A manufacturer of high-end clothing may seek to reduce costs by outsourcing some of its labor. The
quality management plan will articulate exactly how quality control and assurance will be performed,
to ensure that the new source of labor can meet the company's high standards. The plan will also
identify who will be responsible for quality control; how, when, and to what degree they will
conduct inspections for quality; and how the team will respond to any quality issues that arise.
Process Improvement Plan

A process improvement plan is a document that describes the steps to analyze and determine areas
of improvements in creating the project deliverables. The areas of process improvements include
process boundaries, process configuration, process metrics, and targets for improved performance.
Example: A Process Improvement Plan at a Software Development Company

Sharon Parker is a project manager at a software development company. When managing one of the
high-priority projects, Sharon realized that the product testing process was taking longer than
required. She decided to review the existing process followed by her project. The process of testing
software involves a senior developer review at the end of each phase, unit testing, systems testing,
user acceptance testing, SME review, and customer review.
Sharon discussed the issue with the process managers and other senior managers. She created a
process improvement plan to reduce the time taken to test the product. The plan included
information on the long- and short-term goals, the purpose of the goals, actions to be taken, priority
levels, time estimates, and who will perform which activity while improving the process.
Figure 3-1: A portion of a process improvement plan.
Human Resource Plan

A human resource plan is a document that provides guidance on how the human resources required
for a project should be defined, staffed, managed, controlled, and eventually released after the
project is completed. It includes the components necessary for developing cost estimates such as the
project staffing attributes, personnel rates, and related rewards and recognitions. The plan illustrates
the project’s organizational structure and includes the staffing management plan that describes the
project management team’s approach to managing the increase and decrease of project staff across
the project life cycle.
Example: The Sales Force Automation Project

Ria is the project manager of a large scale Sales Force Automation project. She will have to deal with
a vast pool of human resources with varying skill sets and costs. She has to ensure optimum
utilization of resources; that is, the right amount of human resources with the right skill sets are used
at the right time. Based on the project schedule, she creates a human resource plan that describes
the human resource requirements for the project. The plan defines:
• The required qualifications of the work force.
• The employment contract, whether it is permanent or fixed employment, independent
contractor, or volunteer.
• Availability status, whether resources are available, developed, or hired.

• Duration, whether it is full-time or part-time or has limited duration.
• Cost of each resource—the estimated cost to obtain the human resources needed, including
gross payment, development cost, and hiring cost.
• When the resources will be released from the project.
• Resource training needs, if any.
Communications Management Plan

A communications management plan is a document that describes the project team’s approach to
communicating information about the project. It documents what information must be
communicated to whom, by whom, when, and in what manner. It also documents how information
is collected, archived, and accessed.
Example: A Communications Management Plan to Arrange for a Company's

Annual Meeting
A project manager in charge of presenting a company's annual meeting with shareholders will have
many stakeholders from different departments and at different levels of company management. The
communications management plan may include regularly scheduled status meetings with the
employees assigned to the project, with meeting minutes to be distributed to upper management. It
may also stipulate an email distribution list with all stakeholders and resources included on all
relevant project communication.
Risk Management Plan

A risk management plan is a document that describes the team's approach to identifying risks. It
identifies:
• The methodology, approaches, and tools that will be used.
• The roles and responsibilities of those involved.
• The budgeting and scheduling for risk management activities.
• The risk categories.
Note: The risk management plan does not address responses to risk. These are addressed in the
risk response plan.
Example: A Risk Management Plan for a New Project

Entrepreneurs seeking funding from venture capitalists for a new business will present a risk
management plan to their potential investors. For a proposed amusement park, the risk management
plan will describe business risks, such as operational risks of potential losses due to employee theft,
and insurable risks, such as liabilities for injuries sustained on the park's rides.
Procurement Management Plan

A procurement management plan is a document that outlines the guidelines for obtaining or
purchasing work from outside sources. It specifies the types of contracts that will be used, describes
the process for obtaining and evaluating bids or proposals, mandates the standardized procurement
documents that must be used, and explains how multiple providers will be managed. The plan also
states how procurement activities will be coordinated with other project management activities, such
as scheduling and performance reporting. Depending on the needs of the project, the procurement
management plan may be formal or informal, brief or detailed.
Example: Procurement Management for an Advertising Agency

A small advertising agency will procure contracts from external sources for some of the work
considered necessary but beyond its core capabilities, such as specialized printing and professional
photography services. The procurement management plan will outline the company's processes for
soliciting and evaluating bids or proposals from competing service providers and will specify how
management will schedule contract work, schedule payments to providers for the work done, and
evaluate the quality.
ACTIVITY 3-1
Identifying Elements of Project Management
Plans
Data File
C:\095016Data\Planning the Project\Project Management Plan.docx
Scenario
As the project manager of the GCCG e-Banking Portal project, you will be responsible for creating
a project management plan. Before you dive into the creation of the plan, you need to review the
elements that the PMO requires for projects with budgets greater than $10,000.
1. Which of the following are included in the initiating and planning phases
(process groups) of a project? Select all that apply.
☐ See the problem clearly.
☐ Build project teams.
☐ Assess risks.
☐ Translate business requirements into functional and technical specifications.
2. Reflecting on your project management experience, what types of project

management plans have you worked with or created?
A: Answers will vary depending on students' experience. Project management plans can range from
an informal, minimal information provided document to a formal, thorough, and detailed document.
3. Open C:\095016Data\Planning the Project\Project Management Plan.docx

and use it to answer the following question.
4. Based on the Project Management Plan, identify the elements that your
organization requires for a project management plan.
A: Answers will vary, but may include: the project overview, scope, project deliverables, WBS,
external and internal stakeholders, project constraints, project risks, change control, and budget.
5. Which plan deals with the closure of contracts?

○ The scope management plan
○ The procurement management plan
○ The process improvement plan
○ The communications management plan
6. Which plan details how a project will be executed to achieve its objectives?
○ The project management plan
○ The schedule management plan
7. True or False? The human resource plan is a subsidiary to the staffing

management plan.
☐ True
☐ False
TOPIC B
Determine Stakeholder Needs
You identified the elements and are integrating the various subsidiary plans into the project
management plan. In the process of finalizing your project management plan, you need to be aware
of the project stakeholder requirements and document them so as to avoid missing critical
information. In this topic, you will determine stakeholder needs.
As a project manager, you have to analyze the needs of the project stakeholders. A clear and
authentic documentation of those needs will be critical to the project's success. If the stakeholders
are not in agreement about project expectations, timelines, and cost, they will not be satisfied with
the outcome of the project. By determining the needs of the stakeholders, you can obtain a
consensus and prevent misunderstandings on the requirements of varied stakeholders of the project.
Project Objectives
Project objectives are the criteria used to measure whether a project is successful or not. Projects
can have one or more objectives, and sub-objectives can be added to the project to further clarify
project goals. However, each project must include at least one objective and the objectives must be:
• Specific in terms of the scope.
• Quantifiable in terms of time, cost, and quality.
• Realistic and attainable.
• Consistent with organizational plans, policies, and procedures.
Example: Project Objectives for the Arithmetic on a Stick Project

The following objective was developed for a project devoted to the development of an educational
product, “Arithmetic on a Stick.”
"Develop a hand-held interactive math game for three- to six-year-olds that includes four levels of
instruction, practice, and remediation in early math skills, based on national math standards,
produced by June 1, 2017, for less than $2.5 million."
Note how the objective has the characteristics of a quantifiable objective:
• The objective specifies the scope: handheld interactive math game for three- to six-year-olds that
includes four levels of instruction, practice, and remediation in early math skills.
• It is quantifiable in terms of time: by June 1, 2017.
• It is quantifiable in terms of cost: less than $2.5 million.
• A quality measurement is specified: based on national math standards.
Customer Requirements
As the name suggests, a customer requirement is the documented list of customers' needs and
expectations that must be met in order to meet the project objectives. Some of the requirements
criteria include conformance to specific standards, quality, functional interface, data, security and
control, content, technical, training and performance support, and deployment. The requirements
need to be elicited, analyzed, and recorded in sufficient detail from the customers to enable
measurement during project execution. The collected requirements form the basis for planning the
cost, schedule, and quality for the project.
Requirements are further categorized into project requirements and product requirements,
depending on the needs of the project. Project requirements could typically include the business,
project management, and delivery requirements of the project. Product requirements could typically
include the technical, security, and performance requirements of the product.
Lesson 3: Planning the Project | Topic B
Example: Analyzing Customer Requirements

Senior management of a large firm decided to undertake the development of an e-commerce
capability on their existing website. When interviewing the customer, the project manager received a
lot of requirements that were project specific. The project manager recorded the customer
requirements in sufficient detail and ranked the requirements based on priority. Because there was
an increased demand for the product, the customer wanted the product to be delivered ahead of
schedule. The project manager included this requirement to the existing list of customer
requirements.
Stakeholder Requirements Collection Methods

There are various methods to collect project or product requirements from stakeholders, such as:
• Interviewing
• Focus groups
• Facilitated workshops
• Group creativity techniques
• Group decision-making techniques
• Questionnaires and surveys
• Observations
• Prototypes
Interview Techniques
Interviewing is a technique that uses one-to-one interaction to know more about project
requirements from individual stakeholders. This is used to identify the stakeholder's individual
requirements, goals, or expectations relating to the project. This method gives opportunity to build
questions and receive detailed answers while developing a good rapport with the stakeholders. It
aids in identifying and defining the features and functions of the desired project deliverables.
Focus Groups
Focus groups are trained moderator-guided interactive discussions that include stakeholders and
SMEs (Subject Matter Experts). They are a form of qualitative research that is used to elicit
stakeholders' and SMEs' expectations and attitudes toward the proposed product, service, or result
of the project.
Example: The Focus Group

Consider a company that is developing an online documentation system. For one of the projects, a
focus group of system administrators was formed to discuss their thoughts and preferences on
issues, such as distributing and replicating huge documentation files across multiple servers and
whether or not they needed faster access to local copies of the documentation on specific client
machines. Although they had the option of having usability studies to check if the administrators
were able to operate the system, the project manager felt that having a focus group was more
efficient to discuss the issues in a single session.
Facilitated Workshops
Facilitated workshops are group sessions that bring together key multidisciplinary or cross-
functional stakeholders to define project or product requirements. Facilitated workshops are an
important technique to quickly define cross-functional requirements of the various stakeholders of
the project. They help build trust, foster relationships, reconcile differences, and improve
communication among the stakeholders, thereby leading to enhanced stakeholder consensus.
Because multiple perspectives are available, the issues or questions related to the requirements are
resolved quickly.
Example: Conducting Facilitated Workshops for GCCG's Warehouse

The project sponsor, Vicky Morris, approved the project charter for GCCG's Warehouse
Management Software project. The project charter lists stakeholders from various departments, such
as the Process Development and Implementation department, and the key project managers and
administration personnel, especially those arranging the training logistics. It also includes key PMO
staff and the Chief of the Business Transformation team. To build stakeholder consensus, the
project manager of GCCG's Warehouse Management Software project, Mark Anderson, decides to
conduct a facilitated workshop rather than holding one-on-one interviews with the key stakeholders.
He invites the key project stakeholders for a “Warehouse Management Essential Requirements”
workshop.
Mark coordinates discussions with key stakeholders during the workshop to define the requirements
of this project. Discussions in the workshop highlight the differences among various stakeholder
requirements. Mark is not only able to reconcile the stakeholder differences, but also to obtain a
consensus on all the project requirements.
Group Creativity Techniques

Group creativity techniques are group activities established within organizations to identify project
or product requirements for a project.
Figure 3-2: Group creativity techniques.
Group Creativity Technique Description
Brainstorming This technique is used to generate and create multiple ideas

related to the project and product requirements.
Nominal group technique This technique uses a voting process to rank the most useful
ideas obtained through brainstorming. Ranking allows for
further brainstorming or for prioritization.
The Delphi technique This is a group technique that extracts and summarizes
anonymous group input to choose among various alternatives.
Idea (or mind) mapping This technique consolidates ideas created through
brainstorming in a map that reflects the commonality,
differences in understanding, and generation of new ideas.
Affinity diagram This technique enables the sorting of a large number of ideas
collected during brainstorming into distinct categories for
review and analysis.
Group Decision-Making Techniques

Group decision-making techniques are assessment processes that evaluate multiple alternatives
to arrive at an outcome. These techniques are used to generate, classify, and prioritize project or
product requirements. The outcome is the resolution of future action for the project.
Various methods are adopted to reach a group decision.
Method Description
Unanimity Everyone in the group agrees on a single course of action.

Majority Requires support from more than 50% of the members of the group to
indicate the selected decision.
Plurality The largest batch in the group decides for the group even if a majority is not
achieved.
Dictatorship One individual makes the decision for an entire group.
Other Requirement Collection Techniques

Various other techniques to collect project or product requirements are also available.
Technique Description
Questionnaires and Written sets of questions designed to quickly accumulate information

surveys from a broad audience. Used when statistical analysis is appropriate for
collecting stakeholder requirements.
Observations A direct way of viewing individuals in their work environment or while
using the product to identify the project or product requirements. Also
referred to as job shadowing.
Prototypes A method of obtaining feedback on requirements by providing a
working model of the expected product.
Requirements Documentation
Requirements documentation describes how individual requirements meet the business need of
the project. The requirements that are documented in the requirements documentation must be
unambiguous, traceable, complete, consistent, and acceptable to key stakeholders of the project.
Figure 3-3: A requirements document for the GCCG e-Banking Portal project.
The RTM
The Requirements Traceability Matrix (RTM) is a tabular document that links the project or
product requirements to their origin and traces them throughout the project life cycle. It links each
requirement to the business and project objectives, Work Breakdown Structure, product design and
development, and test scenarios. It ensures that approved requirements in the requirements
documentation are met at the end of the project. The RTM also provides a structure for managing
changes to the project or product scope.
Figure 3-4: An RTM for the GCCG Warehouse Management Software project.
Note: Forward traceability in the figure implies that it is possible to trace a requirement to
elements in the outputs of later phases in the project life cycle.
Example: Identifying the GCCG Warehouse Management Software Project

Requirements
The project manager for GCCG's Warehouse Management Software project, Mark, is defining and
documenting the requirements for the project. From the project charter authorized by Vicky Morris,
he lists the high-level project requirements and product descriptions. He interviews the key
stakeholders of the project who provide him with the detailed project and product requirements. He
also analyzes the stakeholder register to determine the other stakeholders of the project and
enhances his list of project requirements by conducting a facilitated workshop to determine the
remaining needs and expectations of the stakeholders.
Mark gets the project team to develop a prototype for the Warehouse Management software,
distributes it to key stakeholders for their review, and obtains their feedback on the functional
requirements of the project.
Using the requirements obtained from the stakeholders, Mark creates the requirements
documentation for the project. He also creates the requirements management plan, which includes
the RTM that documents how the requirements will be analyzed, documented, and managed
Guidelines for Determining Stakeholder Needs
Care should be taken in defining and documenting the needs and expectations of various project
stakeholders in order to meet the project objectives. The success of a project depends on the
effective capture and management of the various project and product requirements. To effectively
define and manage project and product requirements, follow these guidelines:
• Study the project charter to identify the high-level project requirements and product descriptions.
• Examine the stakeholder register to identify stakeholders who can provide information on
detailed project and product requirements.
• Use various methods to collect project or product requirements. These methods include
interviews, focus groups, facilitated workshops, group creativity techniques, group decision-
making techniques, questionnaires, surveys, and observations.
• If possible, provide a working model or prototype of the expected product to obtain feedback on
requirements.
• Create the requirements documentation to describe how individual requirements meet the
business need for the project. Ensure that the requirements are measurable, testable, traceable,
complete, consistent, and acceptable to key stakeholders.
• Review and validate the requirements management plan along with the key stakeholders and
make sure that it:
• Describes methods to plan, track, and report requirement activities.
• Describes configuration management related activities.
• Includes process for requirements prioritization.
• Includes project or product related metrics.
• Provides a traceability matrix for requirements.
ACTIVITY 3-2
Determining Stakeholder Needs
Data File
C:\095016Data\Planning the Project\Requirements Document.docx
Scenario
The sponsor of the e-Banking Portal project, Vicky Morris, authorized the project charter and
named you as the project manager for the GCCG e-Banking Portal project. As project manager, you
are responsible for documenting the various needs and expectations of the stakeholders of the
project.
Before interviewing and documenting stakeholder requirements, you decide to review your notes
from earlier meetings with key stakeholders:
• The technology and technical skills required for integrating the banking services in the portal are
to be made available.
• The integrated banking service must have a single-sign-on authentication.
• SMEs will be made available for the integration of the banking services.
• Required software and hardware applications for the integration process must be procured.
• Required computer systems and relevant software installation must be set up.
• Response time during transactions in the portal must be in the range of zero to four seconds.
• There must be accurate data and volume forecasts in banking transactions.
1. Open C:\095016Data\Planning the Project\Requirements Document.docx and

use it as a reference to work through this activity.
2. As you review the Requirements Document, which project documents could

you have used as a basis for preparing it?
A: You can use the project charter and your notes from discussions with stakeholders given in the
scenario as a basis for the requirements documentation.
3. Based on the scenario and the list of requirements, who might be the internal
stakeholders for the e-Banking Portal project?
A: Answers might include specific personnel in the Legal, Administration, and IT Infrastructure
departments.
4. Which is the method that is used to identify requirements by studying the

individuals in their work environment or while using the product?
○ Surveys
○ Facilitated workshops
○ Observations
○ The Delphi technique
5. For the GCCG e-Banking Portal project, which of these techniques could you
initially use to identify the requirements of the stakeholders? Select all that
apply.
☐ Interviews
☐ Focus groups
☐ Facilitated workshops
☐ Prototypes
6. In which output document will you store the guidelines on requirements

prioritization along with product-related metrics for the GCCG e-Banking
Portal project?
○ The requirements documentation
○ The RTM
○ The requirements management plan
○ The idea or mind map
TOPIC C
Create a Scope Statement
You have the first of many subsidiary plans incorporated into your project management plan. Now,
you can focus on defining the project scope, a critical element essential to achieving project success.
A clear and concise scope statement will help you define the success that will guide your project.
Without a strong scope statement, you could end up spending valuable time and resources on work
that isn't even supposed to be part of your project. In this topic, you will create a scope statement.
The Project Scope Statement

The scope statement defines the project and what it does and does not need to accomplish. It is
created at an early stage in the project to reflect the stakeholders’ common understanding of major
activities to be performed in the project and provide a basis for future project decisions about what
should and should not be included in the project.
Depending upon the size and scope of the project, a project scope statement should typically
include:
• Project objectives, deliverables, exclusions, and requirements.
• Project constraints and assumptions.
• Product acceptance criteria.
It may also include initial project organization, defined risks, schedule milestones, initial WBS, and
approval requirements.
Lesson 3: Planning the Project | Topic C
Figure 3-5: The project scope statement for the e-Banking Portal project.
Note: In the scope statement, requirements and objectives are defined with specific measurable
success criteria.
Project Scope Statement Components

The following table describes some of the components found in the scope statement.
Project objectives These are the measurable success criteria for the project. Project
objectives are called critical success factors in some organizations.
Product description The characteristics of the product, service, or result of the project
undertaken.
Project requirements The conditions or capabilities that the deliverables of the project
must meet to satisfy a standard, contract, specification, or
government or industry regulation.
Project deliverables Any tangible, measurable result or outcome required to complete a
project or portion of a project. The scope statement should include a
list of the summary-level subproducts that, taken together, constitute
completion of the project.
Project boundaries The parameters of what is and what is not included within a project.
Product acceptance criteria The process and criteria for accepting finished products or services
resulting from a project.
Project constraints Factors that limit the way that the project can be approached. These
limitations may concern time, cost, scope, quality, resources, and
others. For example, you may be given a project deadline or overall
budget that your project must work within.
Project assumptions Statements that must be taken to be true in order for the planning to
begin. For example, if your project requires that you incorporate
energy costs into your budget, you may want to make the assumption
that the price of oil on the project start date will remain the same as it
is today in order to create project cost estimates.
Note: Key Performance Indicators (KPIs) are metrics that are used to evaluate factors crucial to
the success of a project or organization. KPIs differ from organization to organization.
Constraints
Constraints are limitations that concern scope, time, cost, and ultimately quality. These factors are
interrelated and exist in a state of equilibrium. As the project progresses, if one of these factors is
altered, the other two factors should be balanced to accommodate the change without
compromising on the quality of the product or service.
For example, if the project schedule is shortened due to a change in stakeholder requirements, the
cost and/or the scope will be affected. The cost can increase because more resources are needed to
meet the shortened schedule, or the scope can decrease so all of the work can be finished per the
revised schedule. In either of these situations, the quality (what the stakeholders expect from the
project) will change.
This re-prioritization of constraints can occur at any time during the project, and in large or complex
projects it can occur several times. It can be due to requests from any stakeholder, either on the
project team or the sponsor, or from someone not on the team (i.e., a customer, someone in
management, or a functional manager). It can even result from a project manager on another
project, when both projects are competing for the same resources.
Figure 3-6: The constraints triangle.

Product Analysis
Product analysis is an evaluation of the project's end product and what it will take to create the
product. It translates project objectives into tangible deliverables and requirements.
Product Analysis Techniques

The following table describes some available product analysis techniques.
Functional analysis Analyzing all the things that a product does, including primary and
related functions, to identify unnecessary functions that may drive
up cost on a product.
Value engineering and value Identifying and developing the cost versus benefits ratio for each
analysis function of a product. It is a method for controlling costs while
maintaining performance and quality standards, and is very
common in military and construction contracts.
Quality function deployment Identifying what the customer's needs are and translating those
needs into technical requirements. It is appropriate for each stage
of the product development cycle.
Systems engineering Analyzing products holistically and integrating factors such as
users, usage environment, and related hardware or software, with
which the product must function.
Alternative Identification Techniques

Alternative identification techniques are methods for generating as many alternative solutions and
plans as possible during project planning.
Lateral thinking A creative approach to problem solving in which the team attempts to
think about a problem in new ways and generate a fresh solution.
Brainstorming A general creativity technique for generating possible alternatives.
Brainstorming methods can be structured or unstructured in approach.
The goal is to generate as many ideas as possible from as many team
members as possible.
Delphi technique A group technique that extracts and summarizes anonymous expert
group input to choose among various alternatives. Often used to arrive at
an estimate or forecast.
Guidelines for Creating a Scope Statement

A well-defined scope statement provides a basis for project stakeholders to make future decisions
about the project's scope. It also serves as a baseline for monitoring the scope during execution. To
create an effective detailed scope statement, follow these guidelines:
• Refine the project objectives, deliverables, and product scope description from the requirements
documentation.
• Reexamine the project requirements from the requirements documentation. Do they need to be
re-prioritized with respect to the results of the stakeholder analysis?
• Review the project boundaries in the project charter. If the stakeholder analysis revealed
expectations that are out of alignment with the project objectives, it may be necessary to add
these expectations to the list of excluded items.
• Update the preliminary project constraints, risks, and assumptions from the requirements
documentation. As the project scope comes more into focus, the constraints, risks, and
assumptions need to be reconsidered.
• Create schedule milestones so that the client and project team have dates for setting goals and
measuring progress.
• Include a revised overall cost estimate and define any cost limitations that were listed in the
business case, project charter, or requirements document.
• Identify and document known risks as noted in the project charter.
• Map out the internal organization with regard to personnel, including management, project
teams, and stakeholders as noted in the stakeholder register. Be sure to include the management
requirements, which will define how the project scope and changes therein are managed.
• Document product specifications and approval requirements that were provided in the
requirements documentation.
• Finalize the procedure for accepting completed products.
ACTIVITY 3-3
Creating a Scope Statement
Data File
C:\095016Data\Planning the Project\Project Scope Statement Template.docx
Scenario
You are now ready to create the detailed scope statement for the GCCG e-Banking Portal project.
Vicky Morris, the PMO director, provided you with the PMO's scope statement template.
You will need to know the following project information to create the scope statement.
• The project is to develop a new e-Banking Portal that will integrate all banking-related services
through a single-sign-on feature to customers of the bank. Currently, the services of the bank are
developed through independent applications running under varied software technologies and
computer platforms. This new portal will ensure that these applications and hardware networks
will seamlessly integrate and provide services through a single window to the customer.
• The team will develop the GCCG Project Management Plan reference manual and approval of
the e-Banking Portal design. The portal will then be integrated and tested.
• The team needs to document the help system and user manuals.
• The team will upload the website to the ISP server and perform live testing.
• Complete the project before April 30th and within the $1 million budget.
1. From the C:\095016Data\Planning the Project folder, open Project Scope

Statement Template.docx.
2. Looking at the scope statement template, which documents can you use as a
resource when you're creating the scope statement?
A: Both the requirements documentation and the project charter can be used as a basis for your
scope statement. Any business case, relevant meeting notes, and other project-related
documents might also be used as resources.
3. Which of the following are included in a scope statement?

☐ Project justification
☐ Cost analysis
☐ Success criteria
☐ Deliverables
☐ Change control processes
4. Using the Project Scope Statement Template, complete the Project

Description section based on the information provided in the scenario.
5. On page 2 of the Project Scope Statement Template, list the project

deliverables based on the scenario information.
6. What changes or events would force you to modify the Project Scope
Statement? Select all that apply.
☐ A new requirement that the user could open a new account from the portal.
☐ The replacement of the project manager, who left the company.
☐ The ability of a customer to print a copy of his last five banking transactions.
☐ A delay in the completion target date of the project.
7. Compare your completed Project Scope Statement to C:\095016Data

\Planning the Project\Solutions\Completed Project Scope Statement.docx.
Summary
In this lesson, you learned that an effective project management plan will ultimately define the
execution, monitoring, controlling, and closing of your project. You examined the various
components of a successful project management plan. You created the requirements document,
which records your stakeholder requirements. Using these components, you developed a scope
statement that met the requirements. With this knowledge and skills, you are better prepared to not
only create a strong project plan, but also manage it successfully.
Which factors are important to your organization while defining the project
scope?
A: Answers will vary, but may include: the accurate definition of the project objectives, clear definition of
boundaries, stable definition of requirements, deliverables, acceptance criteria, constraints, and
assumptions. During the project scope definition, you could also include descriptions of the product,
service, or result of the project and involvement of the key stakeholders. Alternative identification on
product or project outcome processes also provides a clear understanding of the project scope.
In your experience, what are the most critical inputs for developing a project
scope statement?
A: Answers will vary, but may include: the project deliverables, the project timeline, the project charter,
client requirements, resource availability information, and the available budget.
Lesson 3: Planning the Project |
4 Preparing to Develop the
Project Schedule
Lesson Time: 3 hours
Lesson Introduction
Now that you have prepared your project scope, you are ready to begin developing the
project schedule, which will drive and guide all the work in your projects. In this lesson, you
will advance your skills by examining the tools used in schedule development.
Lesson Objectives
• Develop a WBS.
• Create an activity list.
• Identify the relationships between activities.
• Identify resources.
• Estimate time.
TOPIC A
Develop a WBS
You developed a scope statement that clearly states the objectives and lists your project's major
deliverables. Now, you can break down the major deliverables into smaller, more manageable pieces.
In this topic, you will develop a Work Breakdown Structure (WBS).
It's always easier to successfully complete a project by breaking it down into smaller, more
manageable chunks. Creating an effective Work Breakdown Structure (WBS) helps improve the
accuracy of your time, cost, and resource estimates by providing a baseline for performance
measurement and project control.
The WBS
A Work Breakdown Structure (WBS) is a logical grouping of project deliverables arranged in a
hierarchical structure. A WBS defines the total scope of work required to complete the project. The
deliverables and their component sub-deliverables are represented on the WBS in levels of
descending order.
The smallest, most granular deliverable that is represented on the WBS is called a work package. A
work package must describe a deliverable that can be adequately scheduled, budgeted, and assigned
to an individual person or group.
In a WBS, major components of work can be grouped by:
• Major project deliverables.
• Life cycle phases.
• Organizational or functional responsibility.
• Geographical location.
Note: Deliverables listed at each level on the WBS equal the sum of all the items on the level
directly beneath them.
Figure 4-1: A WBS displaying a logical grouping of project deliverables.
Lesson 4: Preparing to Develop the Project Schedule | Topic A
Thorough Work Breakdown Structures feature several input elements, such as organizational
process elements, the project scope statement, the project scope management plan, and approved
change requests.
Example: A WBS in Movie Making

Movie making is a great example of a process that commonly employs Work Breakdown Structures.
A film director is responsible for the coordination of several different departments, such as the set
designers, photographers, and editors.
Creating a robust WBS allows the director to easily manage the numerous crews working on the
film. It will organize every component of the film into separate work packages, each with its own
deliverables, deadlines, and budget.
The WBS Dictionary

The WBS dictionary is an auxiliary document containing details about each element in the WBS. It
may contain information, such as description of work, code of accounts identification, milestones,
contract information, cost, quality requirements, resource requirements, time estimates, or resource
information, for measuring performance and completeness.
Figure 4-2: An example of a WBS dictionary for a construction project.
Decomposition
Decomposition is a technique for creating the WBS by subdividing project work to the work
package level. An analysis of the scope statement will help identify the project work. The level of
decomposition varies for different projects. Decomposition of project work is stopped when the
components of the work packages are sufficient to complete the work and can be assigned to an
individual person or group, cost estimated, scheduled, and monitored.
Code of Accounts
A code of accounts is any system that is used for numbering the elements in a WBS. A code of
accounts system allows project managers to easily track individual WBS components. This system is
helpful in the areas of performance, reporting, and costing.
Example: Code of Accounts Specified by a School District

A school district requires its schools to comply with a uniform code of accounts so that it can easily
record, track, and document specific types of revenues and expenditures in every school. The code
of accounts could be shown as Function/Category/Program. If functions include administrative
salaries (30), teacher salaries (31), and consultants' fees (32); categories include para-professional
expenditures (100) and professional expenditures (101); programs include regular instructional (411),
special education (417), and languages (419), then the fee paid to a consultant leading a teacher
training workshop in special education services will be coded 32/101/417.
The Scope Baseline

Scope baseline describes the need, justification, requirements, and boundaries for the project. It is
a component of the project management plan. Components of the scope baseline include the
detailed project scope statement, the WBS, and the WBS dictionary.
Guidelines for Developing a WBS
You can use the following guidelines to create a Work Breakdown Structure:
• Gather the reference materials and other inputs you will need. Some of the materials needed
include: the scope statement, the requirements documentation, a WBS template (if available),
constraints and assumptions, relevant historical information, and other planning inputs that may
impact scope definition.
• Determine how the project work will be organized. Regardless of the organization, these
elements represent the level directly below the project name on your WBS. The WBS can be
created using various methods.
• Subdividing the project into phases as the first level of decomposition and then subdividing
the phases into product deliverables as the second level of decomposition.
• The project can be subdivided into major deliverables, which can be the first level of
decomposition.
• Identify the major deliverables or subprojects for the project. The major deliverables should be
listed in the scope statement or contract, but your team may think of more deliverables that are
necessary to achieve the project's objectives. If you are organizing your project work by major
deliverables, this will represent the level directly below the project name. If you are organizing
your work by some other method, the major deliverables will probably be two levels below the
project name.
• Analyze each element to determine whether it is sufficiently decomposed. Can each deliverable
be adequately scheduled, budgeted, and assigned to an individual person or group? If yes, you
have reached the work package level; decomposition for this element is complete. If no, further
decomposition is required for this element.
• Break down each WBS element into sub-deliverables until you reach the work package level. For
each element, ask yourself, “In order to create this deliverable, what sub-deliverables will we have
to produce?”
• Validate your WBS using a bottom-up approach. Starting at the work package level, ensure the
following:
• The lower level components are necessary and sufficient for the completion of each
decomposed item.
• Each element is described as a deliverable (preferably as a noun), and is distinguishable from
all other deliverables.
• Each element can be adequately budgeted, scheduled, and assigned to an individual person or
group.
• Remember that, although it is not necessary to have the same number of levels for each
deliverable, a disproportionate number of levels may indicate that the deliverable is
inappropriately decomposed. Analyze the element to determine whether one of the higher level
components should be broken into two sub-deliverables or whether two or more sub-
deliverables should be combined. Make any necessary modifications before assigning a unique
numeric code to each element.
• Use your organization's or project's code of accounts to assign a unique numeric cost code for
each element, indicating its branch and level on the WBS for cost performance tracking and
reporting.
ACTIVITY 4-1
Developing a WBS
Data File
C:\095016Data\Preparing to Develop the Project Schedule\WBS.pdf
Scenario
You have been asked to create a high-level WBS for the e-Banking Portal. It has been decided that
all WBS codes for this project will start with a 3-character prefix. The prefix is being used to track
deliverables across all the e-Banking Portal's subprojects. The 3-character prefix for the project is
TRN.
Based on this project's SOW, you have listed the following deliverables:
• Systems Engineering
• Hardware and Software Requirements: Planning and Setup
• Assemble IT Software Development Team
• Identify Resources
• Software Development
• Deliverables Management
• Deliverables Tracking
• Deliverables Production and Packaging
• System Test
• Support Services
• Installation
1. When creating the WBS for the e-Banking Portal, what types of reference
materials and other inputs could you use?
A: You can refer to the requirements documentation, project charter, project SOW, and project scope
statement. You should also determine if there is an existing WBS template that can be used.
2. Open C:\095016Data\Preparing to Develop the Project Schedule\WBS.pdf.

Use the GCCG WBS document to answer the following questions.
3. Based on the scenario, which WBS in Group 1 of the GCCG e-Banking Portal
WBS document is the correct one for this project?
○ WBS A
○ WBS B
○ WBS C
○ WBS D
4. Explain your answer to the previous question.

A: All of the deliverables need to appear on the same level. In Group 1, WBS B places all the
deliverables on the same level.
5. As the project manager, you are asked to decompose the WBS deliverables.
Which activity will you perform during decomposition?
○ Assign unique ID numbers to each deliverable.
○ Break the deliverables down into smaller components.
○ Arrange the deliverables into categories, based on risk.
○ Organize the deliverables, based on which project team is responsible for their completion.
6. The scenario shows two deliverables that have been partially decomposed
during a recent meeting. Which of these activities are decomposed? Select all
that apply.
☐ Assemble IT Software Development Team
☐ Identify Resources
☐ Software Development
☐ Deliverables Management
7. In Group 2, which WBS represents all the appropriate project activities,

including the decomposed deliverables?
○ WBS A
○ WBS B
○ WBS C
○ WBS D
8. Explain your answer for Question 7.

A: The decomposed deliverables are correctly displayed in both options B and C; however, option B
is correct because it includes the project name while option C does not.
TOPIC B
Create an Activity List
The next step in developing a project schedule is to accurately define project activities so that you
can be sure that the activities are tied to the project scope and you can mitigate scope creep. In this
topic, you will gather the WBS and other relevant information to create an activity list.
The activity list is a fundamental building block for an effective project schedule and budget.
Defining the activities helps ensure that all project activities remain within the project scope, so you
can avoid missing critical activities. If you define exactly what needs to be done, you can avoid
performing unnecessary work.
Duration
Duration is the amount of time that a particular task or work package will take to complete. The
metrics used to express duration are units of time such as days, weeks, months, or years.
• Fixed duration is a term that is used to describe a task or work package that requires a set
amount of time to complete. The application of additional resources will not change the time
required.
• Elapsed time is the actual calendar time required for an activity from start to finish. An activity
that requires two weeks to complete will take four calendar weeks of elapsed time if there is a
two-week plant shutdown in the middle.
Figure 4-3: An example of duration.
Effort
Effort is the measure of labor that must be applied to the completion of a particular task or work
package. The metrics used to express effort are the number of resources multiplied by the duration
of the work; generally "person-hours," "person-days," and "person-months."
• Effort-driven is a term that is used to describe a task where the effort (or work) remains fixed
regardless of the number of resources used to complete the work. In other words, the task can
be completed faster through the application of additional energy or labor resources.
Lesson 4: Preparing to Develop the Project Schedule | Topic B
Figure 4-4: An example of effort.
Work Packages
A work package refers to the planned work or the deliverables that are contained in the lowest level
component of the WBS. The work package can also be described as manageable work effort, or a
level at which the cost and schedule for the work can be easily estimated. Work packages can be
broken down or subdivided into smaller, manageable, and executable components called activities.
Note: Because activity definition is a step in project scheduling, activities are also referred to as
schedule activities.
Note that every single component of work is not tracked on the master project schedule. However,
work package owners—those responsible for the completion of the work packages—may develop a
schedule containing the itemized components of work necessary to complete the activities in the
work package.
Figure 4-5: WBS showing the work packages.
The 8/80 Rule

The 8/80 rule refers to a general guideline regarding work packages; they require more than 8 and
fewer than 80 hours of effort to be completed. The 8/80 rule helps project managers create the
work package list by identifying which work components should be considered work packages. Any
work component that can be completed in fewer than 8 hours does not rise to the level of a work
package; it can be combined with other work. Also, any work component requiring more than 80
hours of work is too large to be categorized that way; it should be broken into smaller components.
Figure 4-6: The hours of effort that define a work package.
Note: While the 8/80 rule may be a useful guideline in small projects, it will be impractical to
apply it to large projects, which will necessitate tracking millions of work packages.
Activities
An activity is an element of project work packages that requires action to produce a deliverable.
Activities lay the foundation for estimating, scheduling, executing, and monitoring and controlling
the project work. The characteristics of an activity are:
• It has expected duration.
• It consumes budget and human resources.
In each of the following examples, actions are required to produce deliverables. Each has an
expected duration and will consume budget and human resources:
• Revising a user manual.
• Making a sales presentation.
• Reserving a conference room.
Note: The term activity refers to the components of work performed during the course of a
project. The term task is used sparingly, only in reference to brands of project-management
software.
Activity Lists
An activity list is a definitive list of activities that must be completed to produce the desired project
deliverables. It includes an activity identifier and a description of the scope of work for each activity
so that each team member understands the work required for completion. The activities in an
activity list are listed in a sequential order and are used to estimate project duration and create the
project schedule.
For example, the work packages for conducting a training session will include:
1. Determine training budget
2. Schedule training date

3. Set training requirements
4. Identify trainers
5. Confirm attendees
6. Reserve conference room
7. Set up audio-visual materials
8. Acquire training software
9. Train attendees
10. Collect feedback
Continuing with the training session example, you can break down an individual activity into smaller
components. For example, the work package of reserving the conference room could be broken
down into the following activities:
1. Determine size requirement
2. Determine date needed
3. Identify possible room alternatives
4. Select room
5. Call to reserve room
6. File confirmation when received
Example: Creating an Activity List for a Web Design Project

A project team for a web design company used the WBS and activity list from a previous, similar
project to create an activity list for their project. The team used historical records of the previous
project to help identify activities that may be required to complete each deliverable. Depending on
the activities they select, the length of time may be lengthened or shortened.
Additionally, an outside multimedia expert was consulted about activity identification. Finally, to
make sure that the activities supported the project objectives, the team reviewed the scope
statement.
The project team gathered inputs and resource materials to create the activity and milestone lists and
activity attributes for the work package.
Activity Attributes
Activity attributes contain additional information about all activities in an activity list. Similar to the
WBS dictionary but for activities, the activity attributes describe the activities by listing the different
components associated with the activities, which include responsible team members and the level of
effort required. Activity attributes are used to develop project schedules and select, order, and sort
planned activities.
Milestones
A milestone is a control point event in a project with zero duration that triggers a reporting
requirement or requires sponsor or customer approval before proceeding with the project.
Milestones serve as markers and are defined by the project manager, customer, or both.
Example: Milestones for a Construction Project

A construction firm that is building a new house will include several milestones at the beginning and
end of the project and at each phase of the contract that involves deliverables. The major milestones
will include: completing the site preparation, foundation, basement, crawl space, floor, roof frames,
porch, windows and doors, plumbing, electrical and insulation work, drywalling, and furnishing.
Milestone Lists
A milestone list is a document that contains the project milestones and indicates if achieving the
milestones is mandatory or optional for the project to move to the next phase. Milestone lists are
used as indicators of a project's progress and the goals that must be reached. They may also list the
scheduled dates for each milestone. Milestone lists are usually accompanied by milestone charts.
Figure 4-7: A list of project milestones for a construction project.
Entry/Exit Criteria
Entry/exit criteria are conditions or circumstances that are required to enter into or exit from a
particular milestone. An entry criterion corresponds to a condition that has to exist for the work to
begin. An exit criterion corresponds to what must be accomplished for the milestone to be
considered complete. The exit criterion for the completion of one or more milestones is the entry
criterion for the next subproject work.
The figure illustrates that the exit criterion for Subproject #1 is the entry criterion for Subproject
#3, and the exit criteria for Subprojects #2 and #3 are the entry criteria for Subproject #4.
Figure 4-8: An example of entry/exit criteria.
ACTIVITY 4-2
Creating an Activity List
Data File
C:\095016Data\Preparing to Develop the Project Schedule\Systems Engineering Activity List.xlsx
Scenario
You are now ready to create the activity list for the Systems Engineering WBS. You are reviewing
your notes from a recent brainstorming meeting with your team where you documented the
following:
• All WBS codes for this project start with the prefix TRN001.
• Systems Engineering: Involve the PMO, project manager, technical experts, software
development leads, software architects, and functional managers.
Summary Activity Activities Involved
Technical Planning With the Technical Planning group, create a high-level technical
plan, estimate the resources required, and plan for reviews and
authorization.
Technical Supervision With the Technical Supervision team, identify the technical
requirements plan and create, review, and receive authorization for
the technical supervision plan.
Business Requirements Define the project business requirements by gathering,
Definition documenting, and reviewing the requirements and receiving
authorization of the business requirement document.
Systems Requirements Define the system requirements by discussing the requirements with
Definition the team, gathering and reviewing the requirements, and obtaining
authorization for the systems requirements document.
System Architecture & Top- With the System Architecture & Top-Level Design team, select and
Level Design develop project system architecture, conduct analysis and review for
the architecture, and obtain authorization from the senior managers
and PMO.
1. The first step in creating an activity list is to refer to appropriate documents.

Which items will be helpful in creating your list? Select all that apply.
☐ The WBS
☐ Cost-benefit analysis
☐ The scope statement
☐ Activity lists from similar projects
2. Open the Systems Engineering Activity List and complete the activity list
using the information in the scenario.
a) Open C:\095016Data\Preparing to Develop the Project Schedule\Systems Engineering Activity
List.xlsx.
b) Observe that the activities for Technical Planning, Technical Supervision, and Business
Requirements Definition have been entered.
c) For the Systems Requirements Definition and System Architecture & Top-Level Design summary
activities, list the necessary activities including their respective WBS codes.
d) Save your completed activity list as My Activity List in C:\095016Data\Preparing to Develop the
Project Schedule.
3. Compare your completed activity list to C:\095016Data\Preparing to Develop

the Project Schedule\Solutions\Completed Systems Engineering Activity
List.xlsx.
TOPIC C
Identify the Relationships Between Activities
You created an activity list for your project. Now, you can sequence the project activities and
establish a relationship among them. In this topic, you will delve into the process of sequencing
activities and creating a project schedule network diagram. You will also examine the sequencing
process and scheduling tools.
You are the project manager for the launching of a new product line. If you do not understand the
sequence in which the project work must occur, you cannot develop an effective schedule. You will
end up with rework and additional costs. Creating a project schedule network diagram for your
project will help you uncover the relationship between tasks, avoiding unnecessary work and
expense.
Activity Dependencies
An activity dependency is a logical relationship that exists between two project activities. The
relationship indicates whether the start of an activity is contingent upon an event or input from
outside the activity. Activity dependencies shape the sequence among project activities.
Example: Activity Dependencies for Designing Room Layouts

An architect, Brian, designed a residence and has a vision for room layouts. However, he will not be
able to assess the functionality of the design until the builders frame in the structure with walls,
windows, and a roof. Once the structure is in place, he will be able to reassess the plans to
determine if modifications are necessary.
Activity Dependency Types

Three common types of activity dependencies are available.
Dependency Description
Mandatory A mandatory dependency is inherent to the work itself. It is usually

affected by physical constraints. Activities must be performed in a
specific sequence for the work to be successful. Mandatory dependency is
also known as “hard logic.”
Example: Books can't be bound before they are printed.
Discretionary A discretionary dependency is defined by the project and the project
management team at their discretion. It is defined based on the best
practices followed in a specific application area or on specific
requirements. If there is no mandatory or external dependency between
two activities, the team has some flexibility in activity sequencing. It is
also known as “soft logic,” “preferential logic,” and “preferred logic.”
Example: The sponsor would like to see the book's cover design as soon
as possible, so the team may decide to have the cover artwork done
before the inside illustrations.
External An external dependency is contingent on inputs from outside the
project activities. Can be either mandatory or discretionary.
Example: The books can't be printed until the shipment of paper arrives.
Lesson 4: Preparing to Develop the Project Schedule | Topic C
Dependency Description
Internal An internal dependency is contingent on inputs from within the
organization. Like external dependencies, internal dependencies can be
either mandatory or discretionary.
Precedence Relationships
A precedence relationship is the logical relationship between two activities that describes the
sequence in which the activities should be carried out. Each activity has a Start and Finish. The
precedence relationship considers appropriate logic while connecting these points. Precedence
relationships are always assigned to activities based on the dependencies of each activity.
• The predecessor activity drives the relationship. In most relationships, the predecessor activity
comes first.
• The successor activity is driven by the relationship.
Dependency determination is the identification of the dependencies of one activity over the
other. It involves establishing the precedence relationships among activities and creating logical
sequences.
Precedence Relationships Types

Precedence relationships may vary in the way they start and finish.
Precedence Relationship Description and Example

Type
Finish-to-Start (FS) The precedence relationship between two activities where the
predecessor activity must finish before the successor activity can
start. It can be expressed as, “Activity A must finish before Activity
B can begin.” The total time for these two activities is the sum of A
and B.
Example: The foundation for a house must be finished (Activity A)
before the framing can start (Activity B).
Finish-to-Finish (FF) The precedence relationship between two activities where the
predecessor activity must finish before the successor activity can
finish. It can be expressed as, “Activity A must finish before
Activity B can finish.” The total time to complete both activities is
based on when B begins.
Example: The construction must be finished (Activity A) before
the building inspection can be finished (Activity B).
Start-to-Start (SS) The precedence relationship between two activities where the
predecessor activity must start before the successor activity can
start. It can be expressed as, “Activity A must start before Activity B
can start.” The total time to complete both activities is based on the
latest finish time of A or B.
Example: The building design must start (Activity A) before the
electrical layout design can start (Activity B).
Precedence Relationship Description and Example

Type
Start-to-Finish (SF) The precedence relationship between two activities where the
predecessor activity must start before the successor activity can
finish. It can be expressed as, “Activity A must start before Activity
B can finish.” In this relationship, the successor activity begins
before the predecessor activity. The total time to complete both
activities is the sum of A and B.
Example: The electrical inspections must start (Activity A) before
you can finish the drywalling (Activity B).
Lag
A lag is a delay in the start of a successor activity. Some relationships require a lag before a
subsequent activity can begin. Lags are determined by an external or mandatory dependency and
may affect activities with any of the four precedence relationships.
There are several reasons why lags occur. Examples of two possible lags are:
• The permit application takes six weeks to process.
• The adhesive must dry until tacky before the laminate can be installed.
In the first example, the activity that follows the submission of the permit application is delayed by
six weeks due to an external dependency of the application processing time. In the second example,
the installation of the laminate activity is delayed by the amount of time the adhesive takes to dry.
This is a lag due to a mandatory dependency because the delay is inherent to the work itself.
Effects of a Lag in an FS Relationship

When a lag is introduced in an FS relationship, the overall elapsed time required for the chain of
activities increases. The start and finish dates of the successor activity are delayed when there is a
lag.
Figure 4-9: An FS relationship with a lag.
Lead
A lead is a change in a logical relationship that allows the successor activity to start before the
predecessor activity ends in an FS relationship. A lead is implemented when you need to accelerate a
successor activity in order to shorten the overall project schedule.
Leads will vary in length, depending on the acceleration required by the amended schedule.
Sometimes, a lead introduces a risk of rework because the successor activity starts before the
completion of the predecessor activity, and the complete, comprehensive inputs may not be
available. Leads are sometimes referred to as "negative lags" because in project management
software, leads are displayed as negative numbers.
For example, the programmer for a website may decide to start programming the home page four
days before the interface design is approved. Starting the programming may shorten the overall
project schedule by four days. However, if the design is not approved, there may be significant
rework for the programmer, resulting in the loss of some or all of the four-day gain.
Figure 4-10: An FS relationship with a lead.
Project Schedule Network Diagram

A project schedule network diagram is a graphical representation of the sequence of project
activities and the dependencies among them. Project schedule network diagrams read from left to
right or top to bottom and are typically accompanied by summary information. The diagram can
either include the entire project or just specific parts of it. Parts of a schedule network diagram may
be referred to as a subnetwork or a fragmented network.
Note: Summary information describes the basic approach that is used to sequence project
activities.
Project schedule network diagrams may differ in that they may be:
• Detailed or high level.
• Generated manually or with software.
• Constructed using a variety of methods.
The PDM
The Precedence Diagramming Method (PDM) is a project schedule network diagramming
method that uses rectangular boxes or nodes to represent activities and arrows to represent
precedence relationships between activities. These types of diagrams:
• Always read from left to right.
• Show duration only in the nodes.
• Are created manually or with software.
• Report a group of related activities as an aggregate activity.
• Can use all precedence relationship types.
The following figure shows a project schedule network diagram that was constructed using the
PDM.
Figure 4-11: A network diagram using PDM.
Summary Activities
A summary activity is a group of related activities that, for reporting purposes, is shown as a single
aggregate activity in a bar chart or graph. It may also be called a hammock activity. Summary
activities have their own internal sequence of activities.
Figure 4-12: A summary or hammock activity in a network diagram.
Conditional Diagramming Methods

Activity sequences that must be revisited or repeated are called loops, whereas activities that will be
implemented only under specific conditions are called conditional branches. A conditional
diagramming method is any network diagramming method that allows for non-sequential
activities such as loops or conditional branches. Typically, activities in these types of diagrams are
represented by rectangles, decision points are represented by diamonds, and directional flow is
indicated by arrows.
Conditional diagramming methods vary based on the method used. The most common conditional
diagramming method is the Graphical Evaluation Review Technique (GERT) model.
Note: When creating a network diagram, you may want to create a "Start" node that connects by
arrows to all the nodes for activities with no dependencies.
Figure 4-13: GERT network diagrams with loops and a conditional branch.
ACTIVITY 4-3
Identifying the Relationships Between Activities
Data File
C:\095016Data\Preparing to Develop the Project Schedule\GCCG Activity List.xlsx
Scenario
The Systems Engineering activity list is complete. You evaluated the discretionary, mandatory, and
external dependencies and entered the precedence relationships into a table in the GCCG Activity
List spreadsheet.
You scheduled a meeting with the project team to discuss the project activities. To prepare for the
meeting, you will use the GCCG Activity List to create a network diagram for the activities starting
with WBS TRN001, Systems Engineering.
1. During a recent meeting with your team, a decision was made to add five
days between Technical Planning and Technical Supervision due to other
commitments that some members of the team need to address in other
projects. Will this be a lag or lead relationship that you should account for?
Please explain.
A: Due to the team members' commitments elsewhere, the additional 5 days will cause a delay, or
lag, between the activities.
2. Open C:\095016Data\Preparing to Develop the Project Schedule\GCCG

Activity List.xlsx and examine the Systems Engineering WBS information
contained in the spreadsheet.
3. In the GCCG Activity List, which of the following activities are summary
activities? Select all that apply.
☐ Business Requirements Definition
☐ Document Business Requirements
☐ Technical Planning
☐ Conduct Analysis and Review
4. In the GCCG Activity List, what does the data in cell C6 indicate?
A: The "FS" notation in C6 means that the "Create technical plan" activity (TRN001.1.1) must finish
before the "Estimate resources" activity (TRN001.1.2) can start.
5. In cell C10, how do you interpret TRN001.1 FS + 5 Days?

A: Before the "Analyze technical requirements" activity (TRN00.1.2.1) can start, its predecessor
activity of "Technical Planning" (TRN001.1) must finish and 5 days must elapse.
6. In the GCCG Activity List, what does the SS dependency for the Conduct
meetings activity indicate?
A: The "Conduct meetings" activity (TRN001.4.1) can start when its predecessor activity of "Business
Requirements Definition" (TRN001.3) has started.
7. Refer to the GCCG Activity List to complete the network diagram for all the
tasks in WBS TRN001. In the boxes, enter the activity numbers and draw an
arrow that shows the sequence and precedence relationships between the
activities.
8. Compare your completed network diagram to C:\095016Data\Preparing to

Develop the Project Schedule\Solutions\Completed Network Diagram.docx.
TOPIC D
Identify Resources
You identified the logical dependencies and precedence relationships between the project activities
and created a project schedule network diagram for your project. Now, you can determine the types
and quantities of resources needed to accomplish project work. In this topic, you will estimate
activity resources.
It is very common for projects to involve numerous people, including vendors or strategic partners,
and require different types of materials. Without a clear understanding of who is doing what, efforts
may be duplicated or may lead to costly mistakes or misunderstandings. Firmly establishing who is
involved, what role they play, who has authority for what, and what materials will be needed will
make the project run smoothly and aid in the success of the project.
Project Resources
Project resources refer to any useful materials or people needed to complete the project work.
Project resources will vary greatly in size, cost, and function. Resources can be labor, materials,
facilities, equipment, consultants, services, supplies, or utilities. Project resources are almost always
limited in quantity and, therefore, require thoughtful allocation.
Resources can be divided into three major categories: work, materials, and cost. Within each of these
categories, you can have different types of resources. The following table defines different types of
resources.
Resource Type Description
Shared resources Resources that are used for multiple projects and must be managed as
such.
Dedicated resources Resources that have been committed for your project's use.
Benched resources Skilled resources that are retained during downtime but are not
performing "billable" tasks. The benefit is that they can be put into
service immediately when the need arises.
Low-quality resources Resources that do not possess specialized skills or qualities.
Example: Resources Required to Organize a Seminar

A project for an HR department could be to present an annual employee health and wellness
seminar. Resources will include the conference room, which will be used for the seminar; the
tangible information materials, such as brochures and pamphlets that will be given to employees; the
visiting consultants, who will be hired to make presentations and answer employees' questions; and
the vendors, who will participate in the seminar and offer their services.
Resource Availability Constraints

In most organizations, the number and availability of suitable resources is limited and the project
manager must find and assign the most appropriate resources for each project activity. Several
situations can arise that make this task difficult.
• When the best resource is not available within the organization, the shortage can be handled by
either hiring someone with the needed skills, using a temporary employee provided by a staffing
agency, subcontracting the work to another company, or teaming with another company to share
Lesson 4: Preparing to Develop the Project Schedule | Topic D
a portion of the scope. In each of these cases, the project cost can be affected, and the project
manager will need to address it with a change request.
• When the best resource is assigned to an activity, it is tempting to give that person more work
than they can handle in their scheduled work hours. This overallocation can be handled by either
delaying some of the work until the resource can do it within their schedule, assigning some of
the work to another resource, or changing the scope. A fourth alternative is to permit the
overallocation and compensate the resource with overtime pay. As with the shortage situation,
cost will likely be impacted with these solutions.
• Resources in many organizations will be assigned to multiple projects, and the managers of these
projects will compete for a resource’s time. This competition will create an imbalance, resulting
in shortages and overallocations as discussed.
Resource Calendar
A resource calendar is a calendar that lists the time during which project resources can participate
in the project tasks. It helps prevent resource scheduling conflicts because it includes details such as
vacation time and other project commitments. Composite resource calendars will list additional
information such as the available list of resources and the skills and capabilities of human resources.
Figure 4-14: A resource calendar in Microsoft Project.
Alternatives Analysis
Every project's activities can be accomplished using different methods. Alternatives analysis is the
process of examining the different methods of accomplishing activities and determining a preferred
method. The analysis may involve selecting among different skills, tools, and equipment and
determining whether the project work can be accomplished by the project team or must be procured
from outside the organization.
Published Estimating Data

Published estimating data is information found in commercial publications about production
rates, resource cost, and labor requirements. For example, if a publication states that an experienced
concrete finisher can smooth x square yards of concrete per hour, extrapolation can be used to
determine how many finishers will be needed to smooth 5x square yards of concrete.
Project Management Software

Project management software is a software application that generates and organizes resource
information, such as cost estimates, Work Breakdown Structures, and project schedules. It also
helps optimize resource utilizations. Project management software provides ways of tracking
planned dates versus actual dates and forecasting effects of changes to the project schedule and
possible project results.
Project management software can be used as a desktop application or a web-based app that's
available from any location on multiple devices. Applications can range from a single-user
application to a multi-user app that enables collaborative use. Some examples of project
management software include:
• Microsoft® Project 2016—part of the Microsoft® Office suite of applications.
• Oracle® Primavera—project management software for enterprises.
• LiquidPlanner®—an online project management application for collaborative IT projects.
• Smartsheet®—an online project management application.
• Atlassian® JIRA Agile™—a software development application used by Agile teams.
Note: There are many software solutions available to create and manage project schedules. An
excellent resource that summarizes almost 90 software applications can be found at
www.projectmanagementsoftware.com.
Activity Resource Requirements

The availability of resources will influence the accomplishment of project activities. Activity
resource requirements are the descriptions of resources, such as people, equipment, and location,
and the quantities of resources necessary to complete project activities. Resource requirements will
be progressively elaborated when developing the human resource plan.
The Resource Breakdown Structure

The resource breakdown structure is a hierarchy of identified resources, organized by category
and type. Category includes labor and equipment and type includes resource skills and grade levels.
The resource breakdown structure helps organize and report project schedule information along
with the resource utilization data.
Example: Determining Resources for the Website Design Project

Robert is trying to determine the resources required for the initial design work package of a website
project. The art director provided him with a list of resources he will need. Because there are no in-
house graphic designers available, Robert authorizes him to hire a contractor.
The computer, workstation, and black-and-white printer are overhead items that are already
available to the art department. However, there is no color printer on site and the software program
will need to be purchased. The company's policies require that this equipment be rented rather than
purchased. As an alternative, Robert directed the art department to utilize a commercial printing
facility for presentation items that require color.
Guidelines for Identifying Resources

Accurate estimations of the resources required to complete project deliverables are vital in
developing a realistic project schedule and budget. You can follow these guidelines to determine the
resource requirements for your project:
• Determine the resources necessary to complete each activity in the work packages.
• Determine the quantity of resources necessary to complete each activity.
• Refer to the resource calendars to identify the availability of each resource.
• Generate possible alternatives for unavailable resources and areas where:
• Resources are known to be constrained.
• The work is new to your organization so new resources will need to be brought in.
• Many different resourcing options are known to exist.
• There have been disagreements about resource requirements in the past.
• Certain activities have high risk.
• Analyze the scope statement to ensure that you identified all the resources required to perform
the project work.
• Consider organizational policies that could affect resource acquisition and usage.
• Can you use contract labor to take advantage of lower hourly rates for certain types of work?
• Is renting equipment preferred over purchasing?
• Must suppliers be selected only from a list of those approved and qualified?
• Are there any resource usages that require authorization from upper management?
• Identify and use resources that provide expertise, such as project team knowledge, internal
organizations, industry colleagues, technical or professional associations, SMEs, and other
project managers of projects with aspects similar to your project.
• Analyze the resources currently available, such as in-house staff as well as materials, facilities, and
equipment.
• If necessary, use project management software to plan, organize, and manage project schedules
and resources.
Note: Most project managers use a spreadsheet program to capture the resource
requirements for their projects. This allows flexibility in formatting the information and lets
you output the columns you want for a particular purpose.
ACTIVITY 4-4
Identifying Project Resources
Scenario
You now have all the appropriate activities listed with their unique WBS codes, and you established
the appropriate relationships with each predecessor for the GCCG e-Banking Portal. It is now time
to estimate the activity resources for your project. During previous meetings, it was determined,
based on the work packages, that the following resources will be required for these roles:
• Technical Experts
• Software Development Leads
• External Consultants
• Functional Managers
• Software Development Team
• Software Architects
• Web Designers
• Graphic Designers
• Software Testing Team
• Documentation Team
• Network Specialists
• Network Engineers
• Website Administrator
One area of concern is based on recent discussions as to whether GCCG has enough graphic
designers to design the portal and technical writers to document the functionality of the portal. This
is something that will need to be determined quickly if the project will meet the deadline.
1. What are some additional factors that you will consider when identifying the
resources to fill the identified roles?
A: Answers will vary, but may include: willingness and interest, resource availability, reporting
structure, experience, and costs.
2. What are some things that you will consider when determining the external
consultants and technical experts?
A: Answers will vary, but may include: GCCG's organizational policies that could affect resource
acquisition and usage, availability, industry expertise, travel distance, and costs.
3. As the project manager, what factors will you consider to make a decision on
whether to outsource graphic designing?
A: Answers will vary, but may include: verifying the project scope statement and considering resource
availability, resource experience, costs, and time for development.
4. What other types of resources, other than people, will you list for the e-
A: Answers will vary, but may include: availability of required infrastructure to accommodate the
project team, materials and necessary equipment, such as computers, and necessary software.
TOPIC E
Estimate Time
You identified the activity resources that will be needed for each scheduled activity in a work
package. Now, it is time for you to determine how long each activity will take. In this topic, you will
estimate activity duration.
Inaccurate time estimates will affect the schedule and may frustrate the team involved in meeting the
schedule. By minimizing potential adjustments to the schedule, you and other stakeholders will not
have to work overtime and you can preserve your reputation as a project manager.
Reserve Analysis
Reserve analysis is the process of identifying and adding extra time that will serve as contingency
or management reserves to the duration estimates.
• Contingency reserves serve as buffers in recognition of scheduled risks or setbacks. These
reserves are usually determined by the project manager.
• Management reserves are buffers added to the project for unforeseen changes to project scope
and cost. These reserves are usually determined by the sponsor.
As the project progresses, reserve analysis is used to determine if the remaining or planned buffer is
adequate for project completion. Reserve analysis runs the risk of inflating a cost estimate.
Example: Reserve Analysis at a Cell Phone Manufacturing Company

A cell phone manufacturing company contracted a vendor to integrate a new telecommunication
technology with their current system. The project manager, Bob, has been assigned to manage this
new project. He creates a schedule to complete the project within one month. Bob anticipates that if
the technical integration aspects are unavailable, the project will need to be extended for one more
month. Therefore, he specifies this in the project management plan and retains a contingency
reserve of one month. Senior managers, upon reviewing the project management plan, advised Bob
to add two more weeks as management reserves to the project in order to accommodate the risks
that may occur due to unknown-unknowns.
The Analogous Estimating Technique

Analogous estimating or top-down estimating is an estimating technique in which managers use
their experience, historical information from similar projects, and expert judgment to determine the
total project cost or time estimate. The resulting total is then apportioned across the major
categories of project work. Estimates are generated for the top levels of the WBS and then
apportioned downward through the levels of the WBS.
Analogous cost estimating is used when:
• You have a limited amount of detailed information about the project.
• You have a similar project to use for comparison.
• Those preparing the estimates have the requisite expertise.
Example: Estimating Duration to Prepare a Report

Laurie has been asked to provide an estimate to prepare a report. It is early in the project, and she
does not have many details about what will go into the report. However, she has written many
reports for similar projects, and remembers that most of them took her about four weeks to
prepare. This new project is slightly more complex than her other ones, so she adds a week and
estimates that she can complete it in five weeks.
Lesson 4: Preparing to Develop the Project Schedule | Topic E
The Parametric Estimating Technique

Parametric estimating is a technique that is used to predict duration or cost by using historical
data in a mathematical model. The most common parametric model uses simple multiplication, as
shown in the following example. The accuracy of a parametric estimate will only be as good as the
accuracy of the data used in it.
Example: Parametric Estimating for a Web Design Project

A project manager for a web design firm, William, may use parametric estimating to produce cost
and time estimates for new accounts. He will base his estimates on past experience and expert
judgment. If several other similar sites, each of which included five pages and basic functionality,
took approximately 15 hours to develop, then he could fairly estimate that a site with 10 pages will
require 30 hours of development time.
The Three-Point Estimating Technique

Three-point estimating is a method of activity duration estimating in which three types of
estimates are incorporated into a singular duration estimate scenario: optimistic, most likely, and
pessimistic. Optimistic estimate is the best-case estimate of the time required to complete the
specified work. Most likely estimate is the time required to complete the work under normal
conditions. Pessimistic estimate is the worst-case estimate or the time required to complete the work
if any unanticipated delays occur. These estimates are generally based on historical information and
help in increasing the level of accuracy in estimating project duration. Three-point estimating is
based on Program Evaluation Review Technique (PERT) analysis.
The most commonly used formula for three-point estimating is:
[Optimistic time + 4(most likely time) + pessimistic time] / 6
Example: Three-Point Estimating for a Marketing Campaign Project

You are the project manager for the creation of an innovative marketing campaign project across
the country. Several similar projects conducted previously required three months to complete (most
likely estimate); one was completed in one month (optimistic estimate); and one took eleven months
to complete (pessimistic estimate). Therefore, you estimate that the time for the current project will
be four months, based on the formula:
[1 + 4 * 3 + 11] / 6
The Bottom-Up Estimating Technique

Bottom-up estimating is a method of estimating the duration or cost of each work package in the
WBS. The estimates are then rolled up or aggregated for progressively higher levels within the WBS.
The project manager reviews the estimate figures to compile the total project duration or cost.
Bottom-up estimating is the most accurate method but it is also challenging, costly, and time
consuming.
Use bottom-up estimating in the project life cycle when:
• More detail is available about the work packages.
• You need more accurate estimates.
• You have the time to invest in making the estimates.
You should also use bottom-up estimating for work packages with the highest level of uncertainty
associated with cost. Make sure that you weigh the additional accuracy provided by bottom-up
estimating against the additional cost of making the estimates.
Guidelines for Estimating Time

Accurate activity time estimates form the basis of an accurate project schedule because they include
a careful review of effort required, the duration of tasks, the delivery date or deadline, and customer
priorities. You can use the following guidelines to ensure that your estimates are as accurate and
realistic as possible:
• Gather all the prerequisites, such as activity lists, activity attributes, resource calendars, activity
resource requirements document, and project products, required to estimate the duration of each
activity in the project.
• Involve the work package owners or others who are familiar with the work of the activity.
• Consult historical information.
• Are there any detailed records from previous, similar projects that you could use to derive
your estimates?
• Are there any relevant commercial duration estimating databases?
• Do any project team members have experience with similar activities?
• Determine which technique you want to use to estimate the activity duration. The techniques
include:
• Analogous estimating
• Bottom-up estimating
• Parametric estimating
• Three-point estimating
• Reserve analysis
• Determine how you want to quantify the work that needs to be done: in terms of the estimated
hours of labor that will be needed, the number of units to be produced, and the number of
customers to be served.
• Consider resource requirements and capabilities. For example, who will be assigned to the
activity and how will the skills of the assigned staff affect the duration estimates?
• Determine the appropriate estimation method to use.
• If it is early in the planning phase or if there is good historical data, consider using analogous
estimating.
• If there is inadequate historical data, consult SMEs.
• Use quantitatively based duration to estimate activities when quantities of work units can be
multiplied by the productivity rate.
• If you are using the three-point estimating technique, ask the estimators for the optimistic,
most likely, and pessimistic estimates.
• Modify the constraints and assumptions from the other planning processes.
• Verify the accuracy of your estimates.
• What is the probability associated with this estimate?
• What was this estimate based upon?
• Are there any risks associated with this estimate?
• Consider the need for reserve time. As more information becomes available about the activity or
work package, the reserve time can be modified.
• Include the list of assumptions made in the creation of the estimates.
• Include a range of variance for each estimate.
• Update all project documents that require changes.
ACTIVITY 4-5
Estimating Time
Data File
C:\095016Data\Preparing to Develop the Project Schedule\Activity Duration.xlsx
Scenario
After determining the resources that you will need to complete the GCCG e-Banking Portal project,
you are now ready to estimate the duration for each activity. You have given the group a list that
includes each activity's WBS, name, predecessor relationship, and assigned resource. The goal of the
meeting is to determine the duration for these activities.
1. For the summary activity, Technical Supervision, the team members

explained that, based on typical levels of resource availability and past
experience, they will need two weeks to complete analyzing the technical
requirements. When asked how many hours they expected to work, they
responded with 12 hours. Based on their response to this question, what will
the elapsed time be for this activity?
○ 12 hours
○ 40 hours
○ Two weeks
○ A day and a half
2. When the team members determined how long they thought it would take to
complete the summary activity, what type of duration estimating technique
were they probably using?
○ Analogous estimating
○ Parametric estimating
○ Three-point estimating
○ Reserve analysis
3. Open C:\095016Data\Preparing to Develop the Project Schedule\Activity

Duration.xlsx. Observe the activity resources and durations data and use it to
answer the following questions.
4. In which activities does the PMO need to be involved?

A: The PMO is involved when plans need to be authorized.
5. What is the duration assigned to the activity named "Create technical plan"?
A: 10 days.
6. Given the duration required for the first two activities, "Create the technical
plan" and "Estimate resources," what is the duration to complete these two
activities?
○ 6 days
○ 8 days
○ 12 days
○ 14 days
7. What is the total duration for the summary activity, Business Requirements
Definition? Why?
A: The total duration is 8 days because you need to add up the durations of the four activities that are
involved, 4 + 2 + 1 + 1 = 8. All of the activities in this summary activity are related in a Finish-to-
Start relationship, so the total duration is calculated by adding the individual durations.
8. Looking at the assigned resources for each activity, are you alerted to any
potential problems?
A: Because many of the same resources are assigned to each activity, you need to stay on top of
any potential resource availability conflicts.
9. Do you find it helpful to have milestones represented with zero duration in the
activity list? Why or why not?
A: Answers will vary, but may include: yes, it is helpful, because a zero duration activity will
immediately indicate a milestone. A milestone indicates a significant event. It should be tracked for
completion.
Summary
In this lesson, you identified the major elements of project schedules, which include activity lists,
project network schedule diagrams, estimates of activity duration, and techniques for making
estimates. You will now be able to develop effective project schedules and manage schedules in
response to organizational constraints on time and resources so that you can complete your projects
on time and on budget.
How do you think creating an activity list for projects will help ensure that your
project activities are tied to the project scope?
A: Answers will vary, but may include: the activity list is developed by the decomposition of the WBS of
the project. The project WBS is a project scope description. Because the activities are derived from
the validated WBS, it ensures that activities are tied up to the project.
Reflect on the advantages of creating a project schedule network diagram. How

do you think this will help you organize your project more effectively?
A: Answers will vary, but may include: the project schedule network diagram depicts the flow of project
execution. With such a diagram, you can identify flaws in the flow of project activities and immediately
rectify the flaws.
Lesson 4: Preparing to Develop the Project Schedule |
5 Developing the Project
Schedule
Lesson Introduction
The project schedule is an essential component of any project management effort. As you
strive to advance your skills as a professional project manager, you need to have a good
command of all project schedule-related elements. Developing effective project schedules
and skills to manage the schedules in response to organizational constraints on time and
resources will help you complete your projects on time and on budget. In this lesson, you
will develop the project schedule.
Lesson Objectives
• Develop a project schedule.
• Identify the critical path.
• Optimize the project schedule.
• Create a schedule baseline.
TOPIC A
Develop a Project Schedule
You identified the necessity of effective activity duration estimating in successful schedule planning.
Now, you will put that to use by moving on to the next stage of schedule development. In this topic,
you will develop a project schedule.
The project schedule is one of the most important tools for keeping upper management and project
stakeholders informed about the project's status and for tracking performance. Given its importance
and high visibility, you want to make sure that the schedule you create is realistic. If you don't take
the time to establish realistic start and finish dates, it is unlikely that your project will finish on time
and within the quality and cost targets.
Project Schedules
A project schedule is the project team's plan for starting and finishing activities on specific dates
and in a certain sequence. The schedule also specifies planned dates for meeting project milestones.
The purpose of the project schedule is to coordinate activities to form a master plan in order to
complete the project objectives on time. It is also used to track schedule performance and keep
upper management and project stakeholders informed about the project's status.
Figure 5-1: An example of a project schedule from Microsoft Project.
The Critical Path

The critical path is the network path that has the longest duration. Activities on the critical path
cannot be delayed or the whole project will be delayed unless subsequent activities are shortened.
Lesson 5: Developing the Project Schedule | Topic A
Figure 5-2: A network diagram showing the critical path of activities.
Note: To learn more, check out the video on Working with the Critical Path.
Float
Float is the amount of time an activity can be delayed from its Early Start (ES) without delaying the
project finish date or the consecutive activities. Float occurs only in activities that are not on the
critical path. Float is also called slack. There are two types of float: total and free.
Figure 5-3: A schedule network diagram showing float.
Standard Schedule Diagramming Notations

When representing float, it might be helpful to use the standard schedule diagramming notations.
Project network diagrams use the standard diagramming nomenclature as described in the following
table.
Figure 5-4: Standard schedule diagramming notations for an activity.
Notation Description
ES Early Start is the earliest time an activity can start. Usually, the ES of the first
activity in a network diagram is zero. The ES of all other activities is the latest
Early Finish (EF) of any predecessor activities (assuming that any successor
activity starts as soon as all its predecessor activities are finished).
EF Early Finish is the earliest time an activity can finish. The EF for the first
activity is the same as its duration. For all other activities, EF is the latest EF of
all the predecessor activities of an activity plus its duration.
LF Late Finish is the latest time an activity can finish. The LF for the last activity is
the same as its EF time. The LF for any predecessor activity is the earliest LS of
any of its successor activities.
LS Late Start is the latest time an activity can start. The LS for the last activity is its
EF minus its duration. The LS for any predecessor activity is its LF minus its
duration.
DU Duration is the number of work periods required for the completion of an
activity.
Total Float
Total float is a type of float where the total amount of time an activity requires can be delayed
without delaying the project finish date. Total float for an activity can be calculated by subtracting its
EF from its LF or its ES from its LS. The total float for every activity on the critical path is zero.
Note: When you see the term float by itself, it generally refers to total float.
In the following Critical Path Method (CPM) diagram, Activity C has an ES of 25 days. However,
should it begin on its LS date, the value is 36. Therefore, the amount of time the start date can be
delayed without affecting the finish date is 11 days. The Total Float (TF) value is 11 (36 - 25 = 11).
Figure 5-5: A CPM network diagram with total float.
Free Float
Free float is the amount of time an activity can be delayed without delaying the ES of any activity
that immediately follows it. It allows flexibility of the start or finish time within that activity only. If
there is a string of activities with float, free float will be available only for the activity at the end of
the string. Free float for an activity is calculated by subtracting the EF of the activity from the ES of
its successor activity.
In the CPM diagram, the free float for Activity E can be calculated by subtracting its EF from the
ES of the successor activity, which in this case is Activity H. The free float value is Activity H's ES
(61) - Activity E's EF (50), or 61 - 50. The free float is 11.
Figure 5-6: A CPM network diagram with free float.
Schedule Network Analysis

Schedule network analysis is a technique that is used to calculate the theoretical early and late start
and finish dates for all project activities. In other words, it helps create a project schedule. This
method also generates float or slack.
Schedule network analysis may be achieved using one of the four methods:
• Critical Path Method (CPM)
• Critical chain method
• What-if scenario
• Resource leveling
Example: Developing a Schedule for a Marketing Campaign Project

You are trying to craft a schedule for the creation of a new marketing campaign, which will involve
finding a new advertising agency, creating the advertisements, and producing marketing materials.
Because the project contains so many different work packages, you decide that schedule network
analysis is necessary. Using a project management software application, you are able to define the
network path from “request for proposals” to “launch campaign.” From there, you can estimate the
points in the schedule where there is slack and adjust the activities accordingly.
The CPM
The Critical Path Method (CPM) is a schedule network analysis method that estimates the
minimum project duration and determines the amount of scheduling flexibility that exists in a
project. It uses all four precedence relationships and calculates one early and late start and finish
date for each activity using a single-duration estimate. The longest path through the network—the
critical path—is identified. Then float is calculated to identify activities where there is some
scheduling flexibility. CPM is the mathematical analysis technique used in most types of project
management software.
Figure 5-7: The Critical Path Method involves calculating one early and late start and finish date
for each activity.
The Critical Chain Method

The critical chain method is a schedule network analysis method that allows you to consider
resource limitations and adjust the schedule as appropriate to work within those limitations. The
critical chain is established by analyzing the critical path alongside the resources that are actually
available. The critical chain method is also used to plan and manage reserves or buffers and helps
mitigate possible cost and schedule risks.
Figure 5-8: A critical chain project schedule allows you to consider resource limitations and
adjust the schedule.
What-If Scenario Analysis

The what-if scenario analysis method allows you to consider different situations that may occur
and influence the schedule; it assesses the feasibility of the schedule under various adverse
conditions. It allows you to compute different schedules based on potential delays or unplanned
events that are a normal part of business life, such as key employees resigning during a project. The
outcomes are also used to mitigate the impact of unexpected situations when preparing risk
response plans. This method helps in selecting the optimum plan.
Example: What-If Scenario Analysis for a Planned Move of a Corporate

Headquarters
The project manager, David, used the what-if scenario analysis method to compute different
schedules for a planned move of the corporate headquarters to a new facility. He based his
computations on several scenarios, such as: What if the contractor for the new building brings the
goods in late? What if key decision makers are allocated elsewhere during the planning process?
What if there is a union strike affecting the construction workers?
Resource Leveling
Resource leveling is used to analyze the schedule model. It allows you to readjust the work as
appropriate so that people are not overly allocated. It is also used to address scheduling activities
when critical resources are only available at certain times. Resource leveling is normally done after
the critical path has been initially identified. The critical path frequently changes as a result of
resource leveling.
Resource leveling tools are found in many types of project management software. You need to
consider automated leveling and resource smoothing when using resource leveling tools.
• Automated Leveling: Most project management software packages have resource leveling
capabilities. However, make sure that you analyze the results before accepting them. Automated
leveling often pushes out the project's completion date. Resources may be reallocated to work at
times that are inappropriate due to other constraints.
• Resource Smoothing: A resource leveling technique that involves rescheduling activities in a
project to ensure that appropriate resources are allocated to each activity. Resource smoothing
does not create a delay in the project completion date. It only allows for delays in the activities
within their float.
Note: The most common scheduling conflicts are under-allocation of resources to a critical task
and over-allocation of a critical resource.
Example: Resource Leveling at a Construction Company

Daniel, a project manager who worked for a construction company, always managed several projects
simultaneously. His project resources included construction workers who were paid varying hourly
wages. By using the resource leveling method via a tool in his project management software, Daniel
could make sure that the most expensive hourly workers, including electricians and stone masons,
were appropriately and consistently allocated.
Schedule Formats
The project schedule can be presented in different formats, depending on the circumstances. Three
commonly used schedule formats are:
• Gantt chart
• Milestone chart
• Project schedule network diagram with dates
Gantt Chart
Created by Henry Gantt, the Gantt chart is the visual representation of a project schedule in bar
chart form. Tasks in the Gantt chart are listed down the left side and dates are listed across the top
or bottom with bars to indicate start and finish dates. Time is represented with horizontal bars that
correspond to the activities. Gantt charts may also show the dependencies of the project activities,
as well as the percentage of the activity completed to date and the actual progress in relation to
planned progress.
These charts are often used when presenting the project status to upper management. A detailed
view of the chart is used when reviewing the project status with the project team.
Figure 5-9: An example of a Gantt chart.
Milestone Chart
A milestone chart provides a summary level view of a project's schedule in terms of its milestones.
Milestones are typically listed from the left to right of the chart, and icons or symbols are used to
show scheduled milestone events. Time intervals—divided into hours, days, weeks, or months—are
usually presented horizontally across the top or bottom of the chart, as illustrated in the figure.
Milestone charts can be effective in demonstrating the project's overall schedule to project team
members, stakeholders, and upper management.
Figure 5-10: A milestone chart.
Project Schedule Network Diagram with Dates

Adding dates to the project schedule network diagram helps when assigning start and finish dates to
activities on the project schedule network diagram. These types of charts can be useful when you
need to communicate the project status in terms of activity precedence relationships.
Figure 5-11: A project schedule network diagram with dates.
ACTIVITY 5-1
Developing a Project Schedule
Data Files
C:\095016Data\Developing the Project Schedule\Calendar.docx
C:\095016Data\Developing the Project Schedule\Project Schedule Template.xlsx
Scenario
Now that you have the list of activities, estimated duration, and estimated resources, it is time to
draft the project schedule to determine the start and finish dates for the project activities. The
project is scheduled to start on August 3rd and must finish no later than April 30th of the next year.
1. What documents should you have before developing the project schedule?
A: Documents that would be useful to gather include resource calendars, the project scope
statement, specific milestone dates that must be met, and the activity list with durations.
2. Using the calendars provided, complete the Project Schedule for the
summary activities, Technical Supervision (TRN001.2) and Business
Requirements Definition (TRN001.3).
a) Open C:\095016Data\Developing the Project Schedule\Calendar.docx and C:\095016Data
\Developing the Project Schedule\Project Schedule Template.xlsx.
b) Use the September calendar and the duration column to fill in the Start Date and Finish Date
columns. Resources do not work on weekends and there are no holidays in this scenario.
c) Save your file as My Project Schedule in the C:\095016Data\Developing the Project Schedule folder.
d) Compare your schedule dates to C:\095016Data\Developing the Project Schedule\Solutions
\Completed Project Schedule.xlsx.
TOPIC B
Identify the Critical Path
Now that you drafted a project schedule, you are ready to establish the start and finish times for
each of the activities in your project and determine the duration of the entire project. That means
you will need to know the critical path through your project activities. In this topic, you will identify
the critical path.
Sometimes, the resources you are counting on may not be available when they are scheduled to be.
How do you know when your project cannot be successfully completed? The answer is that you
must identify the critical path when developing the project schedule. Identifying the critical path
allows you to determine which activities have scheduling flexibility before you complete your project
schedule.
Critical Activities
Critical activities are the activities that are on the critical path. Generally, for all activities along the
critical path, ES = LS and EF = LF. There can be no flexibility in the start time or the finish time
for these activities. Activities that are not on the critical path usually have some flexibility in their
start and finish times. Activities on the critical path have a total float of zero.
Figure 5-12: Critical activities lie on the critical path (Activities A, B, F, G, and H).
Note the following characteristics in the CPM graphic:

• The ES for the first activity (A) equals zero.
• The EF for the first activity is its ES plus its duration (0 + 10 = 10).
• The ES for all successor activities is the latest EF of any of its predecessor activities plus any lags
or minus any leads between the two activities.
For example, the ES for Activity D is the same as the EF for Activity C (29) and the ES for
Activity G is the EF for Activity F (41) plus an 8 FS lag, which is indicated as FS 8 (41 + 8 = 49).
Lesson 5: Developing the Project Schedule | Topic B
Note: Although the ES of the first activity can be zero, it can also have the value one. But
when the ES of the first activity is one, then the EF should be calculated as ES + DU - 1.
The ES of the successor activity will then be the EF of the predecessor activity plus one. For
example, if the ES of the first activity is one, then its EF will be 1 + 10 - 1 = 10 and the ES
of the second activity will be 11.
• The EF for all subsequent activities is its ES plus its duration. For example, the EF of Activity B
(25) is its ES (10) plus its duration (15).
• The LF for the last activity is the same as its EF time (66).
• The LS for the last activity (61) is its EF (66) minus its duration (5).
• The LF for any predecessor activity is the same as the earliest LS of any of its successors plus or
minus any leads or lags between the two activities.
For example, the LF of Activity E is the same as the LS of Activity H (61), and the LF for
Activity F (41) is the LS for Activity G (49) minus the 8 day FS lag (49 – 8 = 41).
• The LS for any predecessor activity is its LF minus its duration. For example, the LS for Activity
E (48) is its LF (61) minus its duration (13).
• Only the three activities that are not on the critical path (C, D, and E) have total float (TF = 11).
• Only the last activity in that string (Activity E) has free float (FF = 11).
• The critical path is indicated by bold lines with arrows and includes activities A, B, F, G, and H.
It is the path with the longest duration and zero float.
Note: To learn more, check out the video on Forward and Backward Passes to Calculate
the Critical Path.
ACTIVITY 5-2
Identifying the Critical Path
Data File
C:\095016Data\Developing the Project Schedule\Activity List with Durations.xlsx
Scenario
You identified the activities, estimated the duration, estimated the resources, and drafted the project
schedule. Now, you are ready to calculate the critical path on the project network diagram to
document any float that you currently have in the schedule. At this point, you will focus on the first
two phases of the GCCG e-Banking Portal project. You need to determine the ES and EF for each
activity.
1. In the diagram, observe that the first activity 1.1.1 has an ES of zero in the
upper-left corner of the activity box.
2. What is the EF for activity 1.1.1?

A: The EF is 10. The EF for the first activity is the same as its duration.
3. In the previous diagram, enter the EF in the upper-right corner of activity

1.1.1.
4. In the previous diagram, complete a forward pass by calculating and entering

the ES and EF for all of the activities.
5. Open C:\095016Data\Developing the Project Schedule\Activity List with

Durations.xlsx and compare your forward pass calculations to the data in the
file.
6. In the Activity List with Durations spreadsheet, examine the backwards pass
values—LS and LF durations—that are used to calculate float.
7. Which activities have total float greater than zero?

A: The activities, TRN001.3.1, 1.3.2, 1.3.3, and 1.3.4 have 16 days of total float.
8. What is the critical path?

A: All activities with a total float of zero are on the critical path. It is 85 days.
TOPIC C
Optimize the Project Schedule
Now that you drafted your project schedule and identified the critical path, you are ready to begin
the hands-on management of the schedule, which involves successfully negotiating organizational
constraints on time and resources. To do so, you must identify the tools that project managers use
to respond to resource fluctuations, setbacks, and delays while responding to the perennial business
need of delivering the project on time. In this topic, you will optimize the project schedule.
Setbacks, delays, constraints on time and resources, and competing priorities are all part of everyday
life in business, and they will affect every project you work on. You want to be able to work
effectively in the face of these challenges by optimizing your project schedule, which means using
project management tools to work around these problems, so that you can support the needs of the
business.
Schedule Compression
Schedule compression is the shortening of the project schedule without affecting the project
scope. Setbacks or revised deadlines can cause production problems, in which there is little time to
do a lot of work. When these issues occur, product quality is often sacrificed. Schedule compression
alleviates the pressure of completing too many activities in a short time without negatively affecting
the project scope. Compression may be achieved in one of two ways: fast-tracking and crashing.
Fast-Tracking
Fast-tracking is the process of compressing the project duration by performing some activities
concurrently that were originally scheduled sequentially. Typically, fast-tracking involves identifying
FS relationships that could be done in parallel, either as FF, SF, or SS relationships, or by simply
adding some leads to FS activities.
Some fast-tracking may entail looking very creatively at the network diagram to see if some
discretionary dependencies could be done completely independently. Usually no added costs are
incurred from fast-tracking; however, it can result in increased risk and rework.
Example: Fast-Tracking Activities to Produce a New Product

Sponsors are pressuring Carol to bring a new product to market quickly. Carol decides to fast-track
some activities by placing a lead relationship between the development of the new product and the
writing of the associated user manual. The total duration of the two activities is shortened, because
writing the manual can start before the product development is complete. Consequently, the project
duration is shortened.
Crashing
Crashing is a schedule compression method that analyzes cost and schedule trade-offs to determine
how to obtain the greatest schedule compression for the least incremental cost. Crashing typically
involves allocating more resources to activities on the critical path in an effort to shorten their
duration, thereby increasing project costs.
To crash a schedule, analyze:
• Duration estimate under normal (for example, not compressed) conditions.
• Cost associated with the normal condition.
• Duration estimate under the crash condition.
• Cost associated with the crash condition.
Lesson 5: Developing the Project Schedule | Topic C
The formula for calculating crash costs per week is:

(Crash Cost - Normal Cost) / (Normal Time - Crash Time)
Example: Crashing the Company Website Project

As project manager for the company website project, you are asked to compress the schedule for
the design deliverable. There are eleven activities, five of which are on the critical path. Using the
formula (Crash Cost - Normal Cost) / Normal Time - Crash Time), you calculate the crash costs per
week for each of the five activities to determine which activities will provide the greatest duration
reduction for the least incremental cost. Your calculations are:
Normal Crash Time Normal Crash Cost Crash

Time (wk) Time (wk) Saved Cost ($) Cost ($) Increase Cost/Wk
($)
A 10 8 2 15,000 23,000 8,000 4,000

B 12 11 1 10,000 14,500 4,500 4,500
C 8 6 2 5,000 8,000 3,000 1,500
D 6 3 3 6,000 7,500 1,500 500
E 9 6 3 12,000 18,000 6,000 2,000
Total 45 34 11 48,000 71,000 23,000 -
While you have not yet analyzed the effect of crashing the activities, you can determine from your
calculations that:
• Activities D and C are the best candidates for crashing.
• Activity D has a net gain of three weeks at a cost of just $500 per week.
• Activity C reduces the schedule by two weeks at a cost of only $1,500 per week.
• Activity E is another possible candidate with a three-week reduction at a cost of $2,000 per week.
• Activity B, which has a crash cost of $4,500 per week and a reduction of only one week, is the
worst candidate for crashing.
• The order in which the activities should be crashed is D, C, E, A, and B.
• The total number of weeks by which the project could be shortened if all of the activities on the
critical path are crashed is 11 (45 - 34).
• The total additional cost if all activities on the critical path are crashed is $23,000 ($71,000 -
$48,000).
Crash Cost Plotting Methods

Crash cost plotting methods are techniques for analyzing the crash costs by creating a graph or a
visual representation that clearly illustrates those costs. With the X-axis showing the duration and
the Y-axis showing the cost, the activities are plotted on the grid from right to left, starting with the
activity with the lowest crash cost per week. Activities with flatter slopes are the activities with
relatively larger time savings for the associated cost. These are the best candidates for crashing.
Crashing may result in increased risk and rework; the project team needs to identify the point where
it becomes impractical to crash the schedule any further.
Example: Presenting a Project's Crash Costs

In this example, the project manager plotted the crash costs against total project costs and total
project duration in weeks. Notice that the crash cost plotting illustrates the activities that have
greater savings of time and associated costs.
Figure 5-13: Plotting crash costs on a graph.
Delaying
Project resources may not always be available whenever required. Delaying is a project scheduling
process where activities are postponed to accommodate the availability of resources. Delays may be
caused by internal or external resources. The first resource on an activity that allows the activity to
be delayed is the delaying resource.
Guidelines for Optimizing the Project Schedule
You can use the following guidelines to optimize and compress the project schedule:
• Consider your resource leveling options.
• Can you pull needed resources from activities with float and apply them to critical activities?
• Can you authorize overtime or comp time to meet your project requirements?
• Is shift work possible?
• Can an activity be contracted out to free up resources during a critical period?
• Consider fast-tracking the project.
• Can any activities on the critical path be done concurrently that were originally scheduled
sequentially?
• Are there any discretionary dependencies that could be done completely independently?
• Are there any increased costs associated with fast-tracking activities?
• What are the associated risks?
• Analyze activities on the critical path to determine if crashing the schedule will produce a viable
option.
• Are there any activities on the critical path that can be shortened if more resources are added?
• What are the costs associated with crashing those activities?
• Which activities will provide the biggest duration decrease while incurring the least amount of
incremental cost?
• What are the resource allocation implications of crashing the activity? Will some key
resources be overextended? Will all resources be available when needed?
• Are there any quality implications associated with crashing the activities?
• Identify if any resources are overly allocated. Prioritize the project tasks the resources are
responsible for and delay those tasks that can be performed later, to avoid over allocation.
• Analyze each activity on the critical path to determine whether reducing the scope is a viable
option for reducing duration.
• Recalculate the critical path after compressing the schedule.
• Review any schedule changes with key stakeholders.
• Revise the schedule and distribute to the team.
ACTIVITY 5-3
Crashing a Project Schedule
Scenario
You are assisting the project manager in crashing the schedule due to some recent contractor delays.
You transferred the normal activity duration from the network diagram to a table along with the
normal cost estimates. Together you determined how much each activity can be crashed and the
associated crash cost estimates. You are almost finished, but you are having trouble evaluating the
real impact crash costs will have on this project.
To calculate the project duration under normal conditions, use the following graphic.
1. Using the following table, which activity has the highest crash cost per week?
Which has the lowest?
A: Activity A has the highest crash cost per week ($6,000 per week). D has the lowest ($250 per
week).
2. Which activities are on the critical path for this project?

A: Activities A, B, C, F, and G are on the critical path.
3. What is the project duration under normal conditions?

A: Project duration is 50 weeks under normal conditions.
4. Which activities are the best candidates for crashing and in what sequence?
A: Consider crashing in the sequence G, B, F, C, and then A. G or B will compress the schedule by 2
weeks, at a cost of $1,000 per week; F will compress the schedule by 7 weeks, at a cost of $2,000
per week; C will compress the schedule by 1 week, at a cost of $2,000 per week; and A will
compress the schedule by 3 weeks, at a cost of $6,000 per week. Carefully examine any possible
crashing because another network path may emerge as the critical path.
5. Which activity is the best candidate for crashing? Why?

A: Activity B or Activity G. This is because the best candidates are those with the flattest slope,
meaning they incur the least cost per incremental unit of time saved.
6. If you crashed all the activities identified on the original critical path, what will
happen to the duration for that network path?
A: It will go from 50 weeks (normal) to 35 weeks (10 + 4 + 5 + 13 + 3), a net decrease of 15 weeks.
7. If you crashed all activities identified on the original critical path, what will
happen to the total project cost?
A: The total project cost will increase from $92,000 to $130,000.
8. What will happen to the total project cost if you decided to crash every activity
in the project?
A: Total project cost will increase to $137,000 (43,000 + 4,000 + 5,000 + 4,000 + 9,000 + 64,000 +
8,000).
9. What other factors will you need to consider when deciding whether to crash
this schedule?
A: Answers will vary, but may include: consider resource allocation under normal and crash
conditions. Also, consider the possible quality and risk implications of compressing the duration of
each of those activities.
10.What should you do if the normal time and crash time for an activity are the
same?
A: Nothing. You can't crash that activity.
11.On the following graph, plot the crash cost per week for each activity on the
critical path.
12.Compare your plotted graph to the image shown here or displayed in the
corresponding overhead.
Note: To see alternative critical paths based on crashing certain activities, refer to
the Crashing document in the C:\095016Data\Developing the Project Schedule
\Solutions folder.
TOPIC D
Create a Schedule Baseline
Now that you optimized the schedule, you need to create a schedule baseline in order to get
management approval for your project schedule. In this topic, you will establish a schedule baseline.
As a project manager, it is your responsibility to get management approval for your project schedule
so that you can begin your project on the right footing, setting the stage for proper monitoring and
measuring of schedule performance throughout the life cycle of the project. The schedule baseline is
the key mechanism for gaining that approval, and so your ability to generate the appropriate baseline
will be critical to project success.
Schedule Baselines
A schedule baseline is the management-approved version of the project schedule; it is drawn from
the schedule network analysis and includes baseline start and finish dates. It provides the basis for
measuring and reporting schedule performance. It is a formal part of the project management plan.
Figure 5-14: A chart showing a schedule baseline.
Example: Establishing the Schedule Baseline when Launching a New Line of

Products
A cosmetics company is launching a new line of products. The project manager needs to establish a
schedule baseline and secure approval from both company management and the group of
stakeholders, which includes the company's sales and marketing teams. The project manager will
begin by distributing the preliminary product rollout schedule along with resource calendars, cost
estimates, and any related constraints. He will distribute the schedule to the appropriate parties for
formal approval.
Lesson 5: Developing the Project Schedule | Topic D
Before the team members give their approval, they will submit changes to the schedule; the project
manager will be responsible for incorporating those changes. Making these changes will impact the
cost baselines, and the project manager will need to follow the organization's formal change process
and secure approval from management before continuing. Finally, the project manager will save the
original schedule baseline and preserve the historical data related to this product launch.
Guidelines for Establishing a Schedule Baseline

Obtaining approval from the stakeholders for your project will be vital as you move through the
project life cycle and monitor the schedule performance. By establishing a schedule baseline, you
will further enhance the project's integrity by securing approval from the project management team
and stakeholders. To establish the schedule baseline, follow these guidelines:
• Gather your preliminary project schedule, which includes the project's start and finish dates.
Make sure that all of its components are accurate and up-to-date, including the resources,
duration, calendars, predecessor dates, task dependencies, cost estimates, and constraints.
Confirm that resources have not been overly allocated.
• Distribute the proposed schedule baseline to the appropriate stakeholders and project
management team for approval. This approval is a formal requirement, and as such, it should be
received in writing from the project sponsor.
• Incorporate any changes to the schedule baseline as required by the management team.
• Changes to your schedule baseline may require additional resources or more time; these changes
will affect the project cost and will require you to update your cost baseline as well.
• Revisions made to the schedule baseline after it has been approved will need to be made through
a formal change process approved by management.
• Save the original schedule baseline. During the life cycle of the project, changes will be made as
the schedule baseline is updated and revised; you will need to preserve the historical data
included in your original schedule baseline.
ACTIVITY 5-4
Creating a Schedule Baseline
Scenario
As the project manager for the GCCG e-Banking Portal project, you completed all preliminary
project work. All stakeholder requirements have been collected, the project scope has been defined,
the WBS has been created, activities have been defined and sequenced, and the duration and activity
resources have been estimated. You are now preparing to baseline the project schedule.
1. What should be done before establishing the schedule baseline?

○ Distribute the stakeholder register templates to the project management team for approval.
○ Distribute the project management plan to the appropriate stakeholders and project management
team for an in-depth review, and after revising, obtain approval by the project sponsor.
○ Distribute the procurement documents to the appropriate stakeholders and project team for
approval.
○ Distribute the project charter to the appropriate stakeholders and project management team for
approval.
2. How will you describe the difference between the draft schedule and the
schedule baseline?
A: Answers will vary, but may include: the draft schedule evolves through the planning cycle.
However, once the draft schedule is committed to by the project stakeholders, the scheduled
activities' start and finish dates, duration, and calculated work are set in the schedule baseline
data, which can be used as a comparison once the project is underway. The variance between the
current schedule and the baseline schedule is tracked and used for controlling the project.
3. Which tasks will you be able to do once the schedule baseline has been
established and project execution has begun? Select all that apply.
☐ You will be able to determine the variance for an individual activity's duration.
☐ You will be able to determine a variance in the start and finish dates for the project.
☐ You will be able to determine if resources are overly allocated.
☐ You will be able to determine if the amount of scheduled work for each work package has
changed.
4. True or False? When the schedule baseline is first saved, the schedule
variance for each activity should be equal to zero.
☐ True
☐ False
Summary
In this lesson, you developed a project schedule by taking all of the constraints into consideration.
You identified the critical path so you know which activities have scheduling flexibility when you are
completing your project schedule.
In your experience, which schedule format do you find to be the most beneficial
and why?
A: Answers will vary. Each of the schedule formats (bar chart, milestone chart, programming diagram, or
Gantt chart) has its advantages and disadvantages.
When developing a project schedule, which element or component of the

schedule do you find to be the most crucial?
A: Answers will vary. Some might say that identifying the critical path is the most important element of the
schedule, whereas others might say that establishing the schedule baseline is crucial for getting
management approval of the project.
Lesson 5: Developing the Project Schedule |
6 Planning Project Costs
Lesson Introduction
Good project management requires the ability to create accurate estimates regarding the
costs of project completion. It also requires you to have a budgeting process that helps you
monitor progress against expectations and work with the sponsor to make adjustments to
the schedule or the scope as changes arise.
The ability to deliver projects on time and on budget is a key element of good project
management. You want to be able to create accurate estimates regarding the work that must
be done and the costs that will be incurred and monitor progress against expectations. By
identifying methods for creating accurate cost estimates and budgets that will guide your
projects, you can effectively meet expectations and deliver the desired results. In this lesson,
you will plan project costs.
Lesson Objectives
• Estimate project costs.
• Estimate the cost baseline.
• Reconcile funding and costs.
TOPIC A
Estimate Project Costs
You developed the project schedules and determined the activities and resource requirements for
your project. But how much will those activities cost? Estimating project costs will provide the
answer. In this topic, you will estimate project costs.
High cost estimates may discourage sponsors from pursuing projects that have potential for success,
while estimates that are too low can waste precious resources on a project that ultimately proves
unfeasible. As a project manager, it is your responsibility to estimate project costs as accurately and
realistically as possible. Mastering the techniques for estimating project costs will help you effectively
control project costs.
Common Cost Estimate Types

The following table describes some of the common cost estimate types and their associated degrees
of accuracy. The accuracy levels noted here are approximations rather than hard percentages.
Estimate Type Description and Accuracy Rating
Rough Order of Developed without any detailed base data and often based on high-
Magnitude (ROM) level historical data, expert judgment, or a costing model. ROM is
estimate generally made early in the project.
Accuracy: -25 percent to +75 percent
Range of estimate Often used as an alternative to ROM where the accuracy of the
estimate is not well known. So, rather than $10M ±30 percent, the
estimate can be stated as $7M to $13M.
Accuracy: ±35 percent
Approximate estimate Based on more information than ROM estimates, but still lacks the
detail required for high accuracy. Approximate estimate may be
possible if the project is similar to previous ones with reliable
historical data for costing or where a proven costing model is
applicable.
Accuracy: ±15 percent
Budgetary estimate Often used for appropriation purposes.
Definitive (or control or Based on detailed information about project work. Definitive
detailed ) estimate estimate is developed by estimating the cost for each work package
in the WBS.
Phased (or rolling wave or Allows the use of ROM or approximate estimates for later parts of
moving window) estimate work, while work that must be done earlier in the project life cycle is
estimated at the definitive level.
Accuracy: ±5 percent to ±15 percent in the window closest to
present time; ±35 percent farther in the future
Lesson 6: Planning Project Costs | Topic A
Project Management Estimating Software

Project management estimating software is any software application that assists in cost estimating
while managing projects. This helps simplify the usage of cost estimating techniques and facilitates
effective cost estimate alternatives.
Note: Some examples of project management estimating software include Microsoft® Excel®,
Microsoft® Project, and Oracle® Primavera.
Vendor Bid Analysis

Vendor bid analysis is a cost estimation technique based on the bids obtained from vendors. The
proposed costing from vendors is considered while developing estimates for the project. Generally,
a part of the project is outsourced to a vendor, so the costing for that outsourced part of the project
can be sought from the vendors through their proposals, bids, or quotations. The costing can be
indicative figures with less accuracy or very accurate detailed figures.
Example: The Solar Car Model Program

Consider the company that has taken on the design and launch of the new solar car model program.
This can be further divided into several small projects for creating major components such as the
engine, chassis, drive system, solar panels, exterior, and interior. These projects have a bigger
objective and are interrelated to each other. The company decides to outsource the project that deals
with the making of solar panels and allots $100,000 for that project. The project manager sends an
invitation to vendors to obtain the best bids for the project. The costing suggested by the vendors
helped the project manager to refine the cost estimates. Later, the company decided to select a bid
that includes all the project deliverables and supports the final total project cost.
Activity Cost Estimates

Activity cost estimates provide estimates of costs necessary to finish project work. This includes
costs on direct labor, materials, equipment, facilities, services, information technology, contingency
reserves, and indirect costs. Cost estimates for each activity are added together to create an overall
cost estimate for the work package.
Example: Estimate Project Costs for a Website Project

You are estimating the costs of the company website project with a budget of $100,000. Although
you have rough estimates from some of the work package owners, it is early in the project life cycle.
Therefore, you decide to use analogous estimation. After researching outsourcing costs and
consulting several financial references, you apportion the money across major deliverables. After
reviewing the individual estimates to make sure that they are assigned to the proper accounts, you
submit your cost estimate and a list of assumptions.
Basis of Estimates
The basis of estimates involves supporting and additional information needed to justify cost
estimates. Details can include the project scope, justification for the estimate, assumptions,
constraints, confidence level on the estimate, and expected range of estimates.
Advantages and Disadvantages of Estimating Techniques

There are several benefits and drawbacks in using the analogous, bottom-up, and parametric
estimating techniques.
Technique Advantages Disadvantages
Analogous estimating Ensures that no work is Can be sometimes difficult for less
inadvertently omitted from work experienced managers to apportion
estimates. cost estimates.
Bottom-up estimating Accurate and gives lower level Might be time consuming and can
managers more responsibility. be used only after the WBS has
been well-defined.
Parametric estimating Not time consuming. Might be inaccurate, depending on
the integrity of the historical
information used.
Guidelines for Estimating Project Costs
Accurately estimating project costs will avoid overruns and unforeseen expenditures. Making good
cost estimates will help create a strong cost baseline, which will ultimately be used for measuring
project cost performance. To develop accurate cost estimates, you can follow these guidelines:
1. Involve the work package owners.
• When possible, the cost figures that go into the cost estimates for individual work packages
should be provided by those who will actually provide the resources. As always, it is the
people who will do the work, provide the service, or supply the material that can best
estimate what the associated costs will be. It is the project manager's responsibility to compile
these cost figures into realistic estimates.
• For some projects, though, the project manager will be solely responsible for generating the
cost estimates. This may be the case for:
• Small projects in which the project manager is familiar with the activities required.
• Projects with well-defined resource requirements.
• Projects that are similar to past projects for which the costs are well documented.
• Even in such cases, the project manager may want to do a quick reality check with the
resource supplier to make sure that incorrect assumptions have not been made.
2. Gather any relevant input information, such as estimating publications and resource rates, that
may help you prepare the estimates.
3. Determine which estimating technique to use.
• Use analogous estimating when you have a limited amount of detailed information about the
project, you have a similar project to use for comparison, and the work package owners
preparing the estimates have the requisite expertise.
• Use parametric estimating to estimate work packages when you have reliable parametric
models and the work conforms closely to those models.
• Use bottom-up estimating later in the project life cycle, when more detail is available about
the work packages, you need more accurate estimates, and you have the time to invest in
making the estimates. Also use bottom-up estimating for work packages with the highest level
of uncertainty or risk associated with cost. Make sure that you weigh the additional accuracy
provided by bottom-up estimating against the additional cost of making the estimates.
• Use a combination of estimating techniques when you have a combination of circumstances
for different deliverables on the WBS.
4. Look for alternative costing options. Some options you may explore can include:
• Using stock components versus custom-made.
• Stretching the duration of an activity to eliminate overtime charges.
• Leasing versus purchasing of capital equipment.

• Outsourcing as opposed to handling the work in-house.
5. Determine the units of measure that will be used.
• Estimates should all be in the same unit of measure (usually monetary).
• Units must be clearly defined and easily interpreted.
6. Consider possible risks that may impact cost.
7. Ensure that all cost estimates are assigned to the appropriate account, according to the chart of
accounts, the accounting tool that maps to the accounting ledger.
8. Make sure that your cost estimates include the following key elements:
• Estimated costs for all resources that will be charged to the project. Use the WBS and
resource requirements document to develop the estimates.
• The level of estimate (degree of certainty).
• A list of assumptions made when developing the estimates.
• How long the estimate will be valid.
ACTIVITY 6-1
Estimating Project Costs
Data File
C:\095016Data\Planning Project Costs\Public Meeting Estimate.docx
Before You Begin

You might want to use your calculator for this activity.
Scenario
GCCG Bank is opening a fully operational retail branch in Seattle with additional branches opening
shortly in various other locations. You are a project manager in GCCG assigned to manage the
launch of the new branch and related media campaign in Seattle, Washington. Earlier, you met with
the senior executives and core individuals of the project to discuss project cost estimates. Based on
their input, you allocated $62,000 of the $100 million total project budget to the Media Campaign
deliverable, which includes the Seattle Website, Public Meeting, and Information Packets work
packages. The $62,000 allocation was based on previous projects with a similar deliverable.
In particular, past public meetings of this size cost approximately $30,000. Now that more
information is known about the Media Campaign deliverable, you ask the work package owners to
provide detailed estimates. The estimates must include direct labor and overhead costs (burdened
rate) for each in-house staff resource. The standard hourly burdened rate for in-house staff is
averaged to a flat $80.
The Seattle Website work package owner gave you an estimate that came to $15,000. The
Information Packets work package owner gave you an estimate of $18,000. The Public Meeting
work package owner summarized the preliminary information for you in the Public Meeting Estimate
document.
1. Which estimating technique was used to come up with the allocation of

$62,000 to the Media Campaign deliverable? Why?
A: Analogous estimating was used to come up with $62,000 because you used historical information
based on similar previous projects to allocate a portion of the $100 million total project budget
(top-down).
2. How will you describe the level of accuracy for the $62,000 estimate?
A: Because GCCG Bank is very much like any other bank, it may have originated as an
appropriation, in which case, budgetary estimation may have been used with an accuracy of -10
percent to +25 percent. It could also have been an approximate estimate because it lacks the
detail required for high accuracy, with an accuracy of ±15 percent.
3. What was the impact of involving the work package owners in preparing the
cost estimates? Why?
A: The work package owners are closest to the work and have a better understanding of the work, so
their cost estimates can be expected to be more accurate.
4. Which estimating technique was used when you asked the work package
owners for their estimates?
A: Bottom-up estimating was used because they're closest to the work and know the activities.
5. Open C:\095016Data\Planning Project Costs\Public Meeting Estimate.docx

and refer to it as you work through the remaining questions.
6. What is the estimated cost of the Conduct Planning Meetings activity?

A: The four 2-hour planning meetings involving 15 in-house people at $80 an hour will cost $9,600 (4
x 2 x 15 x 80), and the two catered lunches for the 15 people at $15 per person will cost a total of
$450 (2 x 15 x 15). Therefore, the total cost of the Conduct Planning Meetings activity is $10,050.
7. What technique did you use to estimate the Conduct Planning Meeting
activity? Why is this technique beneficial?
A: Parametric modeling was used to estimate the Conduct Planning Meetings activity. This technique
is reliable and can provide a high-level of accuracy. However, the information that forms the
parameters must be accurate, quantifiable, and scalable.
8. Which estimating technique is used in the Arrange Staffing activity?

A: The Arrange Staffing activity uses analogous estimating for air travel and parametric modeling for
the other costs.
9. Using the information in the Public Meeting Estimate document, estimate the
cost of each of the activities.
A: The breakdown is: 1.1.4.2.1: $10,050; 1.1.4.2.2: $4,950 to $5,540; 1.1.4.2.3: $6,700; 1.1.4.2.4:
$7,800 to $8,300; and 1.1.4.2.5: $3,000.
10.What is your total cost estimate for the Public Meeting work package?
A: The total cost estimate should be $32,500 to $33,590.
11.What is the degree of certainty of your cost estimate now?

A: You now have a definitive (control or detailed) estimate that has an accuracy of ±5% to ±10%.
12.Do you need to take any action regarding your preliminary estimate of
$62,000 for the Media Campaign deliverable? If so, what action should you
take?
A: Because a more accurate estimate for the public meeting exceeds the initial assumption of
$30,000, your overall estimate is more than $62,000, so you need to take some action. You can
adjust your earlier estimate and try to reconcile the deficit with one of the other major deliverables;
you can work with the work package owners of the media campaign deliverable to try to get the
costs down to below $62,000; or you can go back for more funding.
TOPIC B
Estimate the Cost Baseline
After estimating project costs, you need to consolidate the costs into a project budget and prepare
the project cost baseline. In this topic, you will estimate the cost baseline.
Costs are one of the major constraints of any project, and your ability to manage the project's costs
will directly correlate to its success or defeat. You need to be able to employ sound methodology
when estimating costs and carefully monitor expenditures throughout the project life cycle. In
addition, you need to be able to track project costs associated with each work package in the WBS at
the points in the project life cycle when those costs will be incurred. By establishing a cost baseline,
you can track those project costs, set up the cash flow for the project, and measure cost
performance.
Cost Baselines
A cost baseline is a time-phased budget that will monitor and measure cost performance
throughout the project life cycle. It is developed by adding the estimated costs of project
components by period. The cost baseline typically includes a budget contingency to accommodate
the risk of incurring unidentifiable, but normally occurring costs, within the defined scope. Cost
baselines will vary from project to project, depending on each project's unique budget and schedule.
Note: Once the baseline is established, the cost becomes a commitment from the project
manager's perspective. The project manager should try to closely match the project's committed
funds to the baseline, from a timing perspective.
Figure 6-1: A generic cost baseline shown as an S-curve.
Example: Cost Performance Baseline

Many project management software packages can create an S-curve of the cost baseline for you; a
generic example of a cost baseline displayed as an S-curve is shown here. Cost is plotted on the Y-
axis and time on the X-axis. Developed by totaling the estimated project costs by period, this cost
performance baseline shows how the cumulative planned project costs are distributed across the
project's duration.
Lesson 6: Planning Project Costs | Topic B
Cost Aggregation
Cost aggregation is a technique that is used to calculate the cost of a whole component by finding
the aggregate cost of the constituent parts of the whole component. Activity costs are combined
into work package costs, which are then aggregated up the WBS until a single project cost is
produced. Cost estimation uses the cost aggregation method. You can aggregate the cost of all
project components to determine the total cost of the project.
Contingency Allowances
Contingency allowances are additional funds that are sometimes built into cost estimates to allow
for unanticipated events. Planning contingency allowances for a project ensures that the project
manager is able to manage unforeseen costs and expenditures.
There are two types on contingency allowances. Contingency reserve is added at the activity level of
the project by the project manager, to account for risks that might affect an activity; for example, an
additional $1,000 for renting a piece of equipment for one more week than scheduled. Management
reserve is added at the project level by the sponsor, to account for unknown-unknowns; for
example, 5% would be added to the project for things that cannot be identified or envisioned.
When adding a contingency reserve to your budget:
• Avoid contingency on contingency. Based on the WBS input, make sure that the work packages
do not already have a contingency amount tacked onto the basic estimate.
• As the project manager, you must release contingency funds only through a closely controlled
and well-documented process, which is included in the cost management plan. A contingency
reserve is not to be used as a slush fund without controls.
Example: Contingency Allowances for the Jazz Festival

Every year, the city of Montreal hosts the world's largest jazz festival with thousands of
performances and more than two million attendees. Contingency reserves for this event might
include funds to cover risks, such as a headlining act cancelling. Such a cancellation will force the
festival to issue ticket refunds while incurring overhead costs, including theater rental and
advertising. Contingency reserves will not be used for general operating support; for example, if
ticket sales failed to meet expectations. A management reserve of 5% of the project budget might be
added by the sponsor.
Cost Assignment Methods

Consider the way costs are assigned when establishing the baseline; this is important because the
cost should be earned or tracked in the same way it is assigned.
Cost Assignment Description

Method
50/50 percent rule 50 percent credit is given when the activity begins and the remaining 50
percent credit is given when the work is completed. For example, if an
activity is budgeted to cost $3,000, the activity will receive $1,500 when
the work begins and the other $1,500 when the work is complete. This
same method can vary in the percentage values. You can also use a
25/75 or 75/25 rule, for instance. Some of the variants to the 50/50
percent rule include 20/80 and the 0/100 rule.
Percentage complete rule Completion percentages are estimated and assessed at specified
reporting intervals. This is perhaps the most commonly used rule, and
also generally considered to be the most accurate.
Cost Assignment Description

Method
Weighted milestones The total work package value is divided up and assigned to milestone
intervals within the work package. Each milestone carries a budgeted
value. The value is earned when the milestone is achieved. This method
works well for long work packages with multiple activities.
Note: There are certain activities that are not measurable; for example, research-based activities.
It becomes difficult to account for earned values for such activities. So, to avoid the inability to
measure an activity, use the 50/50 rule. The moment activity starts, 50% work completion credit
is given to the activity. However, no further credit is given until the activity is complete.
Project Funding Requirements

Project funds are determined from the cost baseline and funding occurs in increments. These
incremental amounts are not continuous but are done periodically, sometimes quarterly or annually,
based on the project's funding requirements. The total amount of funds includes the cost baseline
plus the management reserve. Project funding requirements help define the amount of funds
required and when they are required. They also help optimize the funds' inflow to the project.
Historical Relationships
Historical relationships involve relationships that are used in parametric or analogous estimates to
develop simple or complex mathematical models for calculating project costs. The cost and accuracy
of the parametric and analogous estimates will vary widely. They can be relied upon when the
historical information used is accurate, parameters used are quantifiable, and when the models are
scalable.
Guidelines for Estimating the Cost Baseline

You can estimate a cost baseline to assist in the monitoring and measuring of cost performance
throughout the project life cycle. You can use the following guidelines to estimate the cost baseline:
• Gather the inputs you will need to establish the baseline, such as the WBS, the project schedule,
the cost estimates, and the risk management plan.
• Use the project schedule to determine when activities will be taking place.
• Using one of the methods for assigning costs, allocate funds for each activity or work package
for the time period in which it will be taking place.
• Consider adding a contingency reserve to accommodate the risk of incurring extra expenses.
• Avoid adding contingency reserves for activities with low risk values.
• Total the costs for each time period.
• Plot the costs for each period on a chart to create an S-curve of the baseline.
• Publish and distribute the cost baseline to the appropriate project stakeholders.
ACTIVITY 6-2
Estimating the Cost Baseline
Scenario
You are ready to move forward with the public meeting work package for the Media Campaign
deliverable for the GCCG Seattle bank project. The Director of Finance is ready to allocate project
funds but is interested in your cash flow. Before creating the cash flow document, you review your
notes from a recent meeting:
• Staffing arrangements must be made.
• Contracts for the venue must be completed.
• The location should be selected early in the process and the staffing should happen shortly after
the location is secured.
• Five weeks before the event, a promotional newspaper ad will be purchased. Subsequent ads will
be placed in the final week before the meeting.
• Planned meetings will be scheduled over the next 10 weeks. The first meeting will happen right
away and another in the fourth week. The remaining meetings will occur at two-week intervals
until the event.
• A food budget that covers lunch in the first meeting and the third meeting must be set.
• The project schedule is 10 weeks.
• The cost of holding the event is $3,000.
1. Do you have all the necessary inputs to establish a cost baseline?

A: Yes, you have the WBS with cost codes assigned, the project schedule with at least start and
finish dates for each activity, and the cost estimates.
2. What cost assignment method will you choose to allocate funds? Why?
A: Answers will vary, but may include: the Percentage Complete rule because the milestones are
clearly defined and can be easily reported on.
3. What are the weekly cost estimates for the activities in the Public Meeting
work package? Use the following table to estimate the costs per week,
rounding to the nearest thousand.
A: The allocation of costs will look similar to the table in the corresponding overhead.
4. Compare your completed cost table to C:\095016Data\Planning Project Costs

\Solutions\Completed Costs Per Week.docx.
5. Will you include a contingency amount?

A: No, because this is a relatively low-risk work package.
6. How will you plot the estimates to create an S-curve? Use the graph to plot
your results. Cost (in terms of thousands) is plotted on the Y-axis and time (in
terms of weeks) on the X-axis.
A: Based on how the costs were allocated, the answers will look similar to the graph in the
corresponding overhead, which plots the S-curve based on the previous Completed Costs Per
Week table.
7. Compare your completed S-curve to C:\095016Data\Planning Project Costs

\Solutions\Completed Graph.docx.
TOPIC C
Reconcile Funding and Costs
Once costs are estimated, you need to verify that there is no discrepancy between the funding
committed and the costs of the work to be done. You want to be able to reconcile the funding with
the actual costs to make sure that your project stays on track. In this topic, you will identify methods
of reconciling funding with costs.
Funding Limit Reconciliation

Funding limit reconciliation is a method of adjusting, spending, scheduling, and allocating
resources in order to bring expenditures into alignment with budgetary constraints. Most budgets
are created on the premise of steady incoming and outgoing flows. Large, sporadic expenditures are
usually incompatible with organizational operations. Therefore, funding limits are often in place to
regulate the outgoing capital flow and to protect against overspending.
Budgets must be reconciled with such limits. This will affect the scheduling of project work and
possibly reshuffle WBS work packages entirely. The schedule, in turn, can affect the distribution or
acquisition of resources.
Example: Set Funding Limits for Projects

Customers set funding limits for large projects based on internal considerations such as when their
fiscal years begin and end and how healthy their cash flows are. A customer who wants to spread the
costs of a project over two quarters may authorize $250,000 to be spent during Quarter 1 and
$350,000 during Quarter 2. In response, the project manager will have to align the resources,
schedules, and activities so that the project work does not exceed the limits on funding.
Guidelines for Reconciling Funding and Costs

Frequently, it is only at this point in a project, after you established a cost baseline, that funding
deficiencies become apparent. It is your responsibility as a project manager to reconcile the costs
with the funding that has been approved by the sponsor. To reconcile funding and costs, follow
these guidelines:
• Gather the materials you will need, including:
• The project budget and the schedule.
• The project scope statement, which may contain information regarding funding constraints.
• The cost estimation and activity cost estimates, so that you can monitor expenditures against
estimates.
• The WBS, so that you can monitor deliverables.
• Contracts, so that you can monitor the commitments and requirements that must be met.
• Map the project budget, the scope statement, and the schedule to the funding available.
• Make sure that the promised work and the promised funding are in alignment.
• Review the project scope statement, making sure that the budget accounts for the funding
constraints.
• If there is already a clear disconnect between the work that has been promised and the
funding that has been allocated, you must alert the sponsor now.
• Identify alternatives. If funding deficiencies are apparent, look for suggestions of alternatives
that the sponsor could agree to, which are typically a reduction in the scope, an increase in the
budget, an extension of the schedule, or some combination of those.
• Involve the project sponsor.
Lesson 6: Planning Project Costs | Topic C
• Reconciliation requires good communication. Now is the time to discuss funding limitations,
expectations, changes to the project scope, and options for resource allocation and schedule
revisions.
• Work with the sponsor on an ongoing basis from this point forward to adjust the project’s
scope, schedule, and cost to be in line with the funding that the sponsor is willing to formally
commit.
• Make sure that the sponsor is apprised of changes in resource allocation that may affect
deliverables.
• Partner formally with the company's financial decision makers.
• Discuss the initial project overall cost validation and mapping of financial transactions for
cash flow reasons.
• Discuss the on-going monitoring of the project's financial performance to enhance the
financial integrity of the project.
• Reconcile funding with costs on an iterative basis throughout the project. Many problems can be
avoided through careful monitoring and adjusting resources in response to the changes that will
arise.
• Actual costs may exceed the estimated costs during different time frames. Keep the sponsor (and
the external customer, if there is one) apprised of any additional costs that are incurred.
• Monitor spending.
• As work begins on the project, you will need to monitor expenditures both in terms of cash
and in terms of effort, or hours of labor.
• Monitor and document unexpected expenses as they arise, such as rework that may be
required. Unexpected expenses will affect the budget and schedule and must be discussed
with the sponsor.
• Monitor the schedule. As work begins on the project, it will be your responsibility to monitor the
activities as they are completed or partially completed so that you can identify and adjust for
delays before they derail the project.
• Monitor the risks that have been identified for your project. Alert the sponsor if those risks
become reality, so that appropriate changes can be made to the scope or the schedule. Make sure
that any risks that arise during reconciliation are reflected in an updated risk register.
ACTIVITY 6-3
Reconciling Funding and Costs
Scenario
As the project manager responsible for the launch of the new GCCG Seattle bank, you are involved
in the bank's grand opening and related advertisements. You estimated the baseline costs for the
project, which are based on previous expenditures for a few other banks' grand openings in various
locations, and your estimate shows that the costs for advertising will exceed $2,500. The funding for
this one project was set at $1,000 by the Finance Director. You are concerned that the senior
executives' expectations may not be in alignment with the reality of the cost of completing all the
work for this project.
1. The project scope statement specifies a specific number of ads to be placed

in the newspaper in the weeks leading up to the banks' grand opening. You
checked the cost of ad space and you know that the sponsors' requirements
will exceed the funding commitment. How will you proceed?
A: Answers will vary, but may include that you can approach the sponsor with a cost breakdown for
the ad placement and suggest placing fewer ads in leading newspaper journals instead of all the
papers. Come up with solutions such as spend less per ad, place smaller ads, and approach the
advertising agency about cost savings. You may also consult with an SME, such as someone in
the marketing department, who can speak directly to the sponsor in this matter.
2. Assume that you have no background in advertising or marketing. How can

you go about generating alternative ideas regarding less expensive
advertising options so that you can deliver the desired results within the
budget?
A: Answers will vary, but may include that you could consult your company's public relations
department for suggestions of cost saving efforts. You may consider implementing a partnership
with a local university by offering a marketing internship program to university students, thereby
gaining extra help at little or no additional cost.
3. You need to partner formally with your company's financial decision makers
regarding the costs of this project. Given the above scenario, what steps will
you take to further this goal?
A: Answers will vary, but may include that you could ask your financial decision makers for a
meeting, bring documentation regarding advertising costs and the budget, and ask for their help in
identifying additional sources of revenue. It is possible that they may choose to increase the
funding commitment. However, keep in mind that the forecasted cost variance should be a
guideline for how elaborate an escalation should be.
4. The advertising agency that has been contracted to produce the ads for the
GCCG Seattle bank's grand opening has unexpectedly gone over budget.
You receive an invoice that exceeds their original estimate. How will you
proceed?
A: Answers will vary, but may include: 1. You can meet with the agency to determine why they went
over budget and whether they did anything that was beyond the scope that had been agreed to. 2.
You can ask the advertising agency to work with you to identify savings elsewhere, such as a
discount on future work so that you can recoup some of your losses. 3. You can alert the sponsor
regarding the cost overrun so that changes can be made to the scope of the project.
Summary
In this lesson, you identified methods of creating accurate cost estimates and the budgets that will
guide all the work done on your projects so that you can effectively meet expectations and deliver
the desired results. Delivering projects on time and on budget is the cornerstone of good project
management.
How do you think the ability to effectively estimate costs will improve your
performance on the job?
A: Answers will vary, but may include: the ability to estimate costs effectively will help you make sound
financial decisions on the project, avoid cost overruns by implementing cost saving methods, identify
cost alternatives, and determine the cost baseline, which helps in planning project performance.
These factors will definitely improve your performance on the job and ensure project success.
How do you think incorporating good funding reconciliation practices will help in
completing a project within the allocated budget?
A: Answers will vary, but may include: incorporating good funding reconciliation practices helps in
judicious usage of funds allocated by the sponsor for the project.
Lesson 6: Planning Project Costs |
7 Planning Human
Resources and Quality
Management
Lesson Introduction
As you continue progressive elaboration of your project work, how you handle competing
demands for time, resources, and quality can have a significant impact on the success of
your project. One of the ways by which you can minimize potential resource conflicts, and
misunderstood quality standards, is to enlist the support of project stakeholders, both
internal and external, to help create effective quality and human resource plans. In this
lesson, you will plan human resources and quality.
Lesson Objectives
• Create a human resource plan.
• Create a quality management plan.
TOPIC A
Create a Human Resource Plan
You developed the project schedule and schedule baselines. Now, you want to make sure that you
acquire the right resources for your project, everyone working on the project knows what their roles
and duties are, and those responsibilities are clearly articulated and documented. In this topic, you
will create a human resource plan.
While managing a project, handling competing demands of human resources can have a significant
impact on the success of the project. You can efficiently organize human resources in a project by
acquiring appropriate resources, identifying and documenting the roles and responsibilities of each
resource in the project, and coordinating and managing the team to execute the work according to
the project plan.
Project Interfaces
Project interfaces are the various reporting relationships that occur internally or externally to a
project. There are five types of project interfaces.
Interface Description
Organizational These are reporting relationships among different organizational units. They
may be internal or external to the parent organization and include interfaces
among the project team, upper management, other functional managers
who support the team, and even the organization’s customers.
Technical These are reporting relationships among technical disciplines on the project
that occur during a phase or during the transition between phases. They
reflect informal and formal relationships with people on the project team
and outside of the team.
Interpersonal These are formal and informal reporting relationships among individuals
working on the project, whether internally or externally.
Logistical These are relationships between project team members who are distributed
across different buildings, countries, and time zones.
Political These are relationships inside an organization. Different people have
different interests in the organization and its projects. Depending upon
interpersonal dynamics and individual aspirations, people will try to satisfy
their disclosed or undisclosed interest.
The RAM
The Responsibility Assignment Matrix (RAM) chart links key project stakeholders to specific
project deliverables or activities by assigning responsibilities to each stakeholder for each element of
work.
Some of the questions the RAM attempts to answer include:
• Who is accountable for the completion of a specific deliverable or activity?
• Who has sign-off authority on the deliverable or activity?
• Who must be notified of the completion?
• Who makes the acceptance or rejection decision?
Lesson 7: Planning Human Resources and Quality Management | Topic A
Note: In a large or complex project, a matrix may be used to show the responsibilities for major
deliverables only. A lower level matrix may be developed to show work package roles and
responsibilities within each deliverable. Work package owners may develop a RAM that assigns
responsibilities to each activity in the work package.
Figure 7-1: A RAM links key project stakeholders to project deliverables.
In the RAM, the deliverables or activities are listed vertically with the key project stakeholder
positions, titles, or names listed horizontally. Responsibility for each deliverable or activity is
assigned to one of the stakeholders.
The RACI Chart

A RACI chart is a type of RAM that helps depict the level of responsibility for each project team
member. RACI stands for Responsible, Accountable, Consulted, and Informed. The RACI matrix
helps identify who is responsible for making decisions and how the people responsible are
supported. RACI is generally used to provide clarity on the roles and responsibilities assigned to
each project team member. The RACI chart is also called a RASI chart, where "S" stands for
"Support."
Figure 7-2: A RACI chart.
Ownership
Ownership refers to a condition where everyone in the project claims to understand the assigned
roles and responsibilities. A sense of ownership in employees can be achieved by clearly defining
their roles and responsibilities and making them accountable for the tasks they are expected to do.
Example: The Corporate Intranet Project

You are the project manager for a corporate intranet project, and during the execution phase, the
Software Tester, Daniel, fell ill and has taken a week off. To keep the project going without any
hassles, you decide to bring in another Software Tester to replace Daniel. In the meantime, Gavin,
from the Integration and Testing department, volunteers to take up Daniel's work. The roles and
responsibilities defined by the management for the Integration and Testing personnel also involves
software testing besides other responsibilities. You appreciate Gavin for his sense of responsibility
and ownership of taking up the job of a Software Tester.
Networking
Networking is a technique that is used during human resource planning. It helps build an excellent
rapport with the functional managers and other stakeholders, internal and external, to know their
readiness, willingness, and bandwidth to provide resources. It also helps in understanding the
interpersonal relationships among stakeholders. Efficient networking involves understanding the
political and interpersonal factors in an organization that influence staffing management. Use of
human resource network activities, such as proactive correspondence, informal conversations,
luncheon meetings, and trade conferences, will help you obtain the best resources for the project
team. Networking also enhances the professional project management practices of a project
manager at different phases of a project.
Example: Reserving Resources Through Networking

You are the project manager for the business process project, and you report to the Director of the
Project Management Office, Susan Long. This is an internal project intended to revolutionize work
through business process re-engineering across all departments of the organization. You and Susan
worked out the charter and are now focusing on the resources required to provide a high-level
budget. You identified the functional areas from where you will need resources. You and Susan
started interacting with the functional department heads. It is your rapport, which was built over a
period of time, that helped you and Susan get connected with them. You asked them to earmark
some resources, which you may require, and they agreed to do so.
Staffing Management Plans

A staffing management plan is part of the HR plan that forecasts what types of staff will work on
a project, when they will be needed, how they will be recruited, and when they will be released from
the project. Depending upon the project requirements, the staffing management plan may be formal
or informal, exhaustive or brief. The plan is a subsidiary plan to the human resource plan and is an
important input during the human resource planning process.
Example: Staffing Management Plans for Writing a Book

To coincide with a company's 100th anniversary, the CEO decided to document the company's
growth and evolution. The staffing management plan for this project will stipulate external resources
with expertise in writing, designing, printing, and publishing, but it will also include internal
resources with specialized knowledge about the company history. The staffing management plan will
identify who will be needed to help with the book, when they will be needed, what they will be
expected to contribute, and how long they will be expected to participate.
Staffing Management Plan Components

Several components of the staffing management plan evolve as you develop the project plan.
Staff acquisition When planning resources, consider whether you will use team members
from within the organization or from external sources, the costs
associated with the level of expertise required for the project, physical
location of resources, and the amount of assistance that can be provided
by other departments for the project management team.
Resource calendars The staffing management plan details the time frame required for a
project and for each project team member. Optimizing the use of
resources on a project will help finish the project on time and within
budget. Resource calendars identify the working days and times that each
resource is available; they also include vacations and other periods when
the resources cannot work on the project. Use of human resource charting
tools, such as resource histograms, can help illustrate the number of hours
that a person, department, or entire project team will need for each week
or month over the course of the project.
Staff release plan Developing a plan for releasing resources helps control project costs by
using team members’ expertise or skills as and when they are needed.
Planning for staff release also allows a smooth transition to other projects
and the mitigation of human resource risks that may occur during the final
phases of the project.
Training needs A training plan can be developed for team members who need to improve
their competency levels or who may need to obtain certifications that will
benefit the project.
Recognition and Creating incentives for meeting milestones or other project deliverables
rewards can have a positive effect on morale. An effective recognition plan
rewards team members for meeting goals that are under their control.
Compliance If the contract requires compliance with government regulation or other
standards, this should be stipulated in the staffing management plan.
Safety Projects where specific safety precautions must be taken, such as on
construction sites or nuclear power plants, can have documented policies
and procedures for the protection of team members. These procedures
should also be documented in the risk register.
Example: The Human Resource Plan for a Construction Firm

The project manager, Charles, is working on a project team at a construction firm and starts creating
a human resource plan. He decided to document the roles and reporting relationships of the project
team members. Charles reviewed the staffing requirements of the project, which state that a senior
foreman must oversee the primary labor force and should report directly to the assistant project
manager.
Also, he reviewed the project constraints and identified that the plumbing subcontractor requires at
least five full-time laborers for the duration of the project. The subcontractor must report to the
union branch chief.
Charles identified all the key stakeholders on the project and created an organization chart. Using
this information, he then created a RAM. He included all these details in the human resource plan
and distributed it among the team members and stakeholders.
Guidelines for Creating a Human Resource Plan
A well-drafted human resource plan will help you analyze the skills of the existing workforce and
forecast your resource needs to optimize the available resources and obtain the best results while
executing the project. To create an effective human resource plan, follow these guidelines:
• Review the staffing requirements that were previously identified during resource planning, and
the external relationship requirements with clients, consultants, and vendors.
• Identify the required resources.
• Determine the level of expertise required for resources.
• Estimate the cost of resources.
• Consider methods like networking for the acquisition of human resources. They can be
sourced from within the organization, outside the organization, or both.
• Obtain assistance from the human resource department of your organization for staff
acquisition.
• Identify any constraints that may limit your organizational planning options.
• Address the organizational structure of the performing organization and how this affects the
structure of the project team.
• Document the roles, responsibilities, and reporting relationships of the project personnel.
• If necessary, incorporate required roles and reporting relationships from any contractual
agreements with unions or other employee groups.
• Consider the competencies of expected staff members and how they affect the project’s
reporting relationships or roles and responsibility assignments.
• Ensure that all key project stakeholders with reporting relationships are indicated in a
hierarchical format on the chart.
• Assign roles and responsibilities to stakeholders who are directly involved with the project
work rather than to senior managers or customers who have limited or indirect involvement.
• Create an organization chart to document the reporting relationships among your project team.
Use any available template to create this chart.
• Analyze the formal and informal project interfaces that exist among the organizational units,
technical disciplines, and individuals for their possible impact on your organizational planning.
• Create a Responsibility Assignment Matrix (RAM) to document the roles and responsibilities for
key project stakeholders.
• Create the RAM as early as possible in the project and update it responsively to reflect
changes in personnel or project focus.
• Account for each element of the project’s scope in the RAM and provide a key to describe
responsibility codes.
• As part of the human resource plan, create the staffing management plan that includes the
following components: staff acquisition, resource calendars, staff release plan, training needs,
recognition and rewards, compliance, and safety.
• Distribute the human resource plan to all project team members and other key project
stakeholders.
ACTIVITY 7-1
Creating a Human Resource Plan
Scenario
You want to ensure that everyone on the GCCG e-Banking Portal project has a clear understanding
of their duties; therefore, you create a human resource plan for the project.
1. Which will be the logical first step in creating the human resource plan?
○ Creating a RAM to document the roles and responsibilities for key project stakeholders.
○ Creating an organization chart to organize the team members into a hierarchy.
○ Considering the competencies of expected staff members and how they affect the project's
reporting relationships or roles and responsibility assignments.
○ Examining the staffing requirements of the project.
2. After examining the staffing requirements of the project, your next step is to
list possible constraints that will affect the organizational planning. Which
options will you include as constraints for this project? Select all that apply.
☐ The project includes resources from several buildings.
☐ The project includes resources from outside the organization.
☐ The project requires resources that are assigned to another project that may not be released.
☐ The project includes some resources that are new hires.
3. After documenting project roles and reporting relationships, what are the key
documents you will create and distribute to project team members? Select all
that apply.
☐ Project charter
☐ RAM
☐ Organization chart
☐ Company quality policy
4. What are the main elements of the human resource plan? Select all that
apply.
☐ Roles and responsibilities
☐ The project organization chart
☐ The staffing management plan
☐ The project management plan
TOPIC B
Create a Quality Management Plan
You now need to set standards and define parameters to assess project quality. Poor quality
management is a major cause of project failure, and as a project manager it is your responsibility to
ensure that your major deliverables are completed with an acceptable level of quality. In this topic,
you will create a quality management plan.
What good is a project that is completed on time and within budget if the quality is inconsistent or
even substandard? Clearly defining quality standards for project stakeholders ensures a common
understanding of how project quality will be measured and achieved.
Quality
Quality is the “totality of features and characteristics of a product or service that bear on its ability
to satisfy stated or implied needs.” It is the degree to which the characteristics of a project fulfill its
requirements. Remember that quality is inside the project management triangle; quality represents
what the stakeholders expect from the project. The stated and implied quality needs are inputs for
devising project requirements. In business, quality should be feasible, modifiable, and measurable.
Quality is the key focus of project management.
Note: This definition is provided by the International Organization for Standardization, ISO
Standard 8402: Terms and Definitions.
The Quality Process

Quality management includes three stages: quality planning, quality assurance, and quality control.
Figure 7-3: The three stages in a quality process.
Lesson 7: Planning Human Resources and Quality Management | Topic B
Stage Description
Quality planning Identifying the standards which apply to the project and deciding how to
meet these standards, with a focus on establishing sponsor or customer
requirements, designing products and services to meet those requirements,
establishing quality goals, defining processes, and establishing controls to
use in monitoring the processes.
Quality assurance Evaluating overall project quality regularly and systematically during the
execution process so that all stakeholders have confidence that the project
will meet the identified quality standards and legal and regulatory
standards. Quality assurance is prevention oriented.
Quality control Evaluating specific quality results against quality standards and identifying
ways to improve quality and eliminate causes of unsatisfactory quality.
Quality assurance is conducted during the monitoring and controlling
processes of the project.
Variables Affecting Quality

Throughout the life cycle of a project, there are a number of variables that could arise, affecting the
quality of the deliverable. Some of those variables include:
• Cost associated with a particular problem.
• Time loss associated with a particular problem.
• Degree of hazard associated with a particular problem, such as health or safety.
• Pressure to get a product to market.
• Poor design.
• Unclear directions.
• Issues with vendors.
• Burned out team members.
TQM
Total Quality Management (TQM) is an approach to improve business results through an
emphasis on customer satisfaction, employee development, and processes rather than on functions.
TQM should be viewed as a long-term, ongoing process rather than a one-time event. The following
table describes various TQM implementations by different quality theorists.
Theorist Approach
W. Edwards Deming The Deming cycle focuses on continuous process improvement in which
quality must be continuously improved in order to meet customer needs.
Joseph M. Juran The Juran trilogy breaks quality management into quality planning,
control, and improvement. Quality improvement leads to breakthrough
improvement, meaning improvement that raises the quality bar to an
unprecedented level.
Philip Crosby This method focuses on four absolutes:
• Quality is conformance to requirements rather than a measure of how
good a product or service is.
• Quality is achieved by prevention rather than inspection.
• Everyone in the company must work to a standard of zero defects.
• Quality can be measured by determining the cost of quality.
Theorist Approach
Genichi Taguchi The Taguchi method emphasizes that quality should be designed into the
product so that factors that cause variation can be identified and
controlled.
William (Bill) Smith, Jr. Six Sigma emphasizes responding to customer needs and improving
processes by systematically removing defects. Originally developed by a
Motorola, Inc. engineer named Bill Smith, Six Sigma is now closely
associated with General Electric, Inc. and other major industrial
companies such as Eastman Kodak.
Note: As part of your quest to further your project management skills, you should consider
investigating some of the major motivational and leadership theories that are a key part of
serious project management efforts today. Many organizations are increasingly using project-
based continuous improvement approaches; the work of W. Edwards Deming provided the
foundation for this effort. Deming's 14 Points for Management, included in his book The New
Economics for Industry, Government, Education, provides a systematic and pragmatic approach to
transforming a western style of management in industry, education, or government to one of
optimization. For further reading, see Out of the Crisis by W. Edwards Deming.
Standards and Regulations

Standards are voluntary guidelines or characteristics that have been approved by a recognized body
of experts such as the International Organization for Standardization (ISO). In some cases, the
standards body will provide certification that suppliers conform to the requirements of their
standards. Often, the conformance to standards is a customer requirement.
Regulations are compliance-mandatory characteristics for specific products, services, or processes.
Standards often start out as accepted or de facto best practices describing a preferred approach and
may later become de jure regulations, such as using the Critical Path Method in scheduling major
construction projects.
Note: There are also de facto standards that aren't approved by a standards body. For example,
TCP/IP is the de facto standard protocol for all modern computer networks. It is the approved
standard for the Internet, but everyone uses it on private networks as well.
Example: Standards and Regulations in Toy Manufacturing

In the U.S., consumer-safety legislation governs the manufacturing of products, including toys. In
2007, a recall of millions of toys produced with lead-based paint compelled lawmakers to introduce
stricter federal regulations with criminal penalties for noncompliance. But major U.S. toy retailers, in
response to public demand, went further; they forced their suppliers to meet even tougher standards
regarding lead in surface paint.
The ISO 9000 Series

The ISO 9000 series is a quality system standard that is applicable to any product, service, or
process in the world. It was developed by the ISO, which is a consortium of approximately 100 of
the world’s industrial nations. There are limits to the certification, which does not guarantee that an
organization will produce quality products or services; it simply confirms that appropriate systems
are in place. Subsections of the standard address particular industries or products.
Project managers must be aware of the local, state, and federal laws that may directly or indirectly
affect the project. Managers should ensure that the laws used at the workplace comply with both the
federal and state guidelines.
Note: For more information about the ISO 9000 series, visit the ISO website at www.iso.org.
Cost of Quality
Cost of quality refers to the total cost of effort needed to achieve an acceptable level of quality in
the project’s product or service. These costs include all the work necessary to ensure conformance
and all the work performed as a result of non-conformance to requirements.
The four types of cost associated with quality are prevention costs, appraisal costs, internal failure
costs, and external failure costs. Prevention and appraisal costs are called conformance costs—
amounts spent to avoid failures. Internal and external failure costs are called non-conformance
costs—amounts spent to rectify errors.
Type of Cost Description Example
Prevention costs Upfront costs of programs or • Design plans

processes needed to meet customer • Quality plans
requirements or design in quality. • Employee and customer training
• Process evaluations and
improvements
• Vendor surveys
• Other related preventive
activities
Appraisal costs Costs associated with evaluating • Inspections
whether the programs or processes • Testing
meet requirements. • Design reviews
• Destructive testing loss
Internal failure costs Costs associated with making the • Scrap or rejects
product or service acceptable to the • Design flaws
customer after it fails internal • Rework or repair
testing and before it is delivered to
• Defect evaluation
the customer.
External failure costs Costs due to rejection of the • Product returns
product or service by the customer. • Liabilities
• Evaluation of customer
complaints
• Maintenance costs
• Corrective action
• Loss of contract
Checklists
A checklist is a job aid that prompts employees to perform activities according to a consistent
quality standard. Items on checklists are phrased as either imperatives, such as “Make sure that this
file is saved correctly,” or questions, such as “Does this image match the description in the
database?” Checklists can be simple or complex and may range in detail, depending on the
experience and skill level of the employees and the complexity of the situation.
Example: An Image Quality Checklist

A sample checklist for printing images is shown. Note that the checklist prompts the graphic artist
to create images according to a consistent quality standard. The items on the list are phrased as
interrogatives. If the artist cannot answer all the questions in the affirmative, the image should not
be handed off.
Figure 7-4: A sample checklist.
Flowcharts
A flowchart is a diagram that shows the relationships of various elements in a system or process.
Flowcharting techniques can assist the team’s efforts in identifying potential quality problems and
the possible effects of those problems. The two most widely used flowcharting techniques are:
• Process (or system) flowcharts
• Cause-and-effect diagrams
Process Flowcharts
A process flowchart, a process diagram, or system flowchart shows the sequence of events and
the flow of inputs and outputs between elements in a process or system. There is a definite
beginning and end along with decision points clearly called out with the actions to be taken, based
on the result of each decision.
Figure 7-5: A sample process flowchart.
Cause-and-Effect Diagrams
• A cause-and-effect diagram is a type of flowchart organized by category. The cause-and-effect
diagram provides a structured method to identify and analyze potential causes of problems in a
process or system. This method organizes potential causes of problems into defined categories.
Using these defined categories promotes the identification of potential causes.
• Some common categories include, but are not limited to:
• Material
• Method
• Environment
• Personnel
• Measurement
• Energy
Figure 7-6: A sample cause-and-effect diagram.
Note: The cause-and-effect diagram is also called the Ishikawa diagram (named after its creator,
Kaoru Ishikawa of Japan) or the fishbone diagram (named for its shape).
Control Charts
Control charts are graphs that are used to analyze and communicate the variability of a process or
project activity over time. Control charts help show the potential capability of the process and also
suggest the range of variability in the process. This range of variability can assist a project manager
in determining if the variance is caused by common or assignable sources. If the process variability
fluctuates around the average, or statistical mean, the process shows very little variability and is said
to be stable.
The components of a control chart include the process mean, the Upper Control Limit (UCL),
and the Lower Control Limit (LCL). The process mean is determined by taking samples from the
actual process and calculating the statistical mean. As additional samples are taken and tested, they
are evaluated in terms of standard deviations from the process mean. For most repetitive processes,
the UCL will be three standard deviations above the mean, while the LCL will be three standard
deviations below the mean.
Control charts have measurements that indicate instability because they each have measurements
that exceed the range between the UCL and LCL. Analysis of the first chart shown is that there are
more than seven consecutive points above the mean. In the second chart, more than seven
consecutive points are below the mean. This seven-point variance is called the seven-run rule. Run
rules are used to indicate situations that are out-of-statistical control. When seven or more
consecutive points lie on one side of the mean, it indicates that there should be a shift in the mean.
Figure 7-7: Variability above UCL.
Figure 7-8: Variability below LCL.
Benchmarking
Benchmarking addresses the evaluation of a group’s business or project practices in comparison to
those of other groups. It is used to identify the best practices in order to meet or exceed them.
Benchmarking can be conducted between identical processes in a variety of ways: in similar or
dissimilar industries and with internal or external organizational areas.
Benchmarking is commonly used to determine:
• The products or services to offer and the features that should be included.
• The processes used by other groups to achieve customer satisfaction.
• The metrics or goals used to measure the processes or products that achieve customer
satisfaction.
Example: Benchmarking the Espresso-Based Beverages

Twenty percent of Americans drink espresso-based beverages every day, and the multi-billion dollar
premium coffee market is expected to grow significantly in the next several years. Several leading
fast-food retailers benchmarked the performance of Seattle-based Starbucks Corp., the world's
largest chain of coffee houses. McDonald's, Dunkin' Donuts, and Tim Horton's expanded their
menus of premium coffees to compete in this arena and offer similar, high-quality coffee products.
DOE
Design of Experiments (DOE) is a technique that is used to systematically identify varying levels
of independent variables. DOE can determine:
• Which variable has the greatest effect.
• What the relationship is between each variable and the customer-focused quality specifications.
• What the best value is for each variable, to ensure optimal quality or value.
When done properly, DOE can result in significant improvements to products and processes,
including shorter development cycles, more robust products, and cost reductions.
Example: DOE for Producing a New Style of Jars

A cannery was about to bring forth a new style of jar into production. As development of the
packaging moved forward, questions arose regarding the ability of the in-line capper to deliver the
precise amount of torque when rotating the lid onto the new jar. Early testing demonstrated that lid
torque less than three inch pounds will result in a leaky package. Torque greater than eight inch
pounds will mar the finish on the screw-on lid.
Given the task of determining the optimum torque requirement for the new packaging, the project
team used a DOE software program to generate statistical information about how torque was
affected by other interconnected factors. Two of the factors tested were spindle speed and conveyor
speed. The results indicated that these speeds had the greatest effect on lid torque.
Armed with this information, it was a simple exercise in determining adjustments to these settings
that will result in consistent optimum torque. The experiment employed by the project team was
successful because it was able to identify the variable that had the greatest effect and its relationship
to the quality specification of lid torque.
Quality Metrics
Quality metrics is an actual value that describes the measurements for the quality control process.
It determines which elements of the project are going to be measured, how they will be measured,
and how they are factored into the project. Some examples of quality metrics include timely
performance, budget control, defect density, reliability, rate of failure, and test coverage.
Example: Quality Metrics for a Cellphone Company

One of the leading cellphone manufacturers defined their quality policy for software development.
They mentioned a few measurement areas in their quality policy, which included:
• Delivered defects per size
• Total effectiveness throughout the process
• Schedule adherence
• Accuracy of estimates
• Number of open customer problems
• Time that problems remain open
• Cost of non-conformance
• Software reliability
Process Improvement Planning

Process improvement planning is the process of analyzing and identifying areas of improvement
in project processes and enumerating an action plan based on the project goals and identified issues.
The process involves:
• Describing operational theories and project roles and responsibilities.
• Identifying long- and short-term goals.
• Describing process improvement objectives and activities.
• Identifying risks and resource requirements.
• Determining process improvement activities.
• Creating a process improvement plan.
• Receiving approval from stakeholders and senior managers.
• Executing the process improvement plan.
Example: The Quality Management Plan

A project team is given the task of creating a quality management plan. The team discovers that the
company has an adequate quality policy. However, it does not address potential problems. The team
assigns roles and responsibilities to the individuals responsible for project quality and includes a
project quality assurance coordinator.
The team reviews the baseline performance requirements and customer-requested quality
requirements. They ascertain that a cost-effective quality trade-off will be to repeat the design
process and peer plan reviews. Finally, the organization’s quality manual is referenced in regard to
approved approaches to each relevant quality assurance and control item, including specifications,
change control, checking criteria, and control logs.
Guidelines for Creating a Quality Management Plan

Creating a quality management plan will ensure that the organizational structure, responsibilities,
procedures, processes, and resources are in place to implement quality management. To create an
appropriate quality management plan, follow these guidelines:
• Collect the documents required to create a quality management plan.
• The project management plan
• The scope baseline that includes the scope statement, the WBS, and the WBS dictionary
• The stakeholder register
• The cost performance baseline
• The schedule baseline
• The risk register
• Any regulations, rules, standards, guidelines, and operating conditions that may affect the
application area
• Quality policies, procedures, guidelines, and historical information
• Review the organization’s quality policy and determine how your project team will implement the
policy.
• How will your team identify potential quality problems and their impact on the quality of the
project's product, service, systems, or processes? Will you use particular flowcharting
methods, benchmarking, design of experiments, or other techniques?
• Are there any standards and regulations that are applicable to your project?
• Are there any activities or components that require the development of operational
definitions to provide a common understanding of the project's quality standards? If so, who
is responsible for developing them?
• Does your organization have any standard checklists that can be modified, or used as is, to
prompt employees to perform certain activities according to a specific quality standard? If
not, should checklists be developed? Who is responsible for developing them? What are the
conditions under which they should be developed?
• Review the product description to identify customer or stakeholder quality requirements.
• Identify the variables affecting the quality of the deliverable.
• Determine the cost of quality trade-offs.
• How will your team define quality to avoid expensive rework?
• Are the proposed processes and systems worth the cost of implementing them?
• Review the quality management plan and make sure that it:
• Describes the project management team's approach to implementing its quality policy (quality
assurance, quality control, and quality improvement approaches).
• Describes the resources required to implement quality management.
• Includes quality management roles and responsibilities for the project.
• Is as detailed and formal as required, based on the quality needs of the project.
• Includes how customer satisfaction will be measured and managed.
ACTIVITY 7-2
Creating a Quality Management Plan
Scenario
You are managing the process of building an embedded database management system for the e-
Banking Portal. The project has a stringent quality process and will be reviewed externally every two
weeks by auditors. You created a detailed plan to ensure the quality of processes and deliverables.
The embedded databases must comply with policies, procedures, and applicable standards specified
by the organization. Identification and removal of defects in deliverables must be quick and
efficient. You are now calculating the cost of quality as you are comparing it to other suppliers who
are competitors for the database portion of the e-Banking Portal project.
1. Which documents will you use to create a quality management plan? Select
all that apply.
☐ The stakeholder register
☐ The project scope statement
☐ The process improvement plan
2. Which tool can be used to analyze and communicate the variability of the
performance of the database management system?
○ Benchmarks
○ Control charts
○ Flowcharts
○ Checklists
3. What will you use for quality planning as you compare vendors for the
database portion of the e-Banking Portal project?
○ The project scope statement
○ Benchmarking
○ The product description
○ Environmental factors and legislation
4. How do standards and regulations factor into the database creation?

A: When creating the databases, the vendors will need to comply with the policies, procedures, and
standards set by your organization.
5. What are the quality factors that are relevant to this effort?
A: Answers might include whether the database is based upon the latest versions of the policies,
procedures, and standards; an independent verification that the output created by the database is
correct; and whether any changes to the database have been documented and approved in
accordance with the project's change management plan.
6. What are some good tools to consider for the process implementation?
A: Answers might include checklists, flowcharts, and cause-and-effect diagrams.
Summary
In this lesson, you identified project team interactions, and quality standards and metrics for
measuring quality performance. These steps help in creating a necessary framework to effectively
plan for project staffing and quality management.
Which components will you include while creating a staffing management plan in
your organization?
A: Answers will vary, but may include: components such as staff acquisition, staff release plan, training
needs, recognition and rewards, compliance, and safety. Smaller organizations might not be as
formal when creating staffing management plans. The plans will be tailored to their particular project
needs.
What is the purpose of a quality management plan in your organization?

A: Answers will vary, but may include: a quality management plan describes how the project structures its
quality system; areas of application; the quality policies and procedures; and roles, responsibilities,
and authorities. The quality management plan will help projects produce deliverables of high quality
with few or no errors. It also enables the project team to identify errors at the early stages of a project
and avoid rework.
Lesson 7: Planning Human Resources and Quality Management |
8 Communicating During
the Project
Lesson Introduction
One of the most important skills in project management is the ability to communicate
efficiently and effectively with all of the project stakeholders during the project. As a project
manager, up to 90% of your time might be spent communicating about the project.
Therefore, it's critical that you have a strategy for effective communication. In this lesson,
you will examine communication techniques and develop a communications plan.
Lesson Objectives
• Identify communication methods and factors that influence communication.
• Create a communications management plan.
TOPIC A
Identify Communication Methods
It's important to identify the different communication methods that are available and to know when
one method might be more appropriate than another. Additionally, communication technologies are
continuously changing so it's important to stay informed about what is available. As the project
manager, you will also need to be aware of the many factors that can influence the team's
communication among themselves and with other stakeholders.
Communication Methods
Communication methods are techniques that are used to share and manage information among
stakeholders in a project. They help the team communicate project performance and progress.
These ensure that the concerned people in the issue resolution process are aware of the impending
severity of the issue, which enables them to take immediate action. Communication methods are
specified in the communications management plan.
Communication methods can be broadly classified into three types:
• Interactive communication: Involves communication between multiple people performing
multi-directional information exchange.
• Push communication: Involves sending information to a receiver. It ensures that the
information has been distributed but does not guarantee that it has reached the receiver.
• Pull communication: Involves receivers accessing information whenever required.
Communication Types
The communication medium and type that you choose will depend on who is communicating, what
type of message is being communicated, and how much feedback (verbal or non-verbal) the speaker
wants or needs. Common examples of communication types include, but are not limited to, the
following.
Type Benefits Constraints
Face-to-face • Provides the opportunity for • Requires parties to be in the same

meetings instant feedback—auditory and physical location.
visual. • Requires a meeting date and time.
• Can immediately clarify if there are
questions or confusion.
• Can be scheduled or impromptu.
Video and voice • Eliminates the need to be in the • Potential for message to get lost in
conferencing same physical location. translation.
(virtual • Can provide beneficial audio and • Crossing time zones can be
meetings) visual feedback. problematic.
• Can be scheduled or impromptu. • Requires special equipment and
connection.
Lesson 8: Communicating During the Project | Topic A
Type Benefits Constraints

Email • Enables parties to communicate • Not always the most timely.
when it's convenient and works • Security/hacking might be an issue
with their schedules. for confidential messages.
• Can provide an official paper trail.
• Enables receiver to have a record
of communication.
Fax • Convenient and easy to send. • Equipment and connection
• Software enables you to send a fax required.
from your computer. • Outdated form of communication
that not all offices have set up.
IM—Instant • Immediate real-time • Message content can be limited.
Messaging communication. • Informal nature might be seen as
• Can be setup and configured by an "unofficial."
organization (i.e., Skype for
Business).
Text messaging • Immediate communication. • Requires a mobile device and app.
• Available and accessible to anyone • Limited to short bursts of
with a mobile device. communication.
Printed media • Provide official documentation and • Costly to produce.
and documents legal archives. • Is a permanent record of the
• Gives a sense of legitimacy to the communication, which can be a
message. disadvantage in some situations.
Social media • Low-overhead method of • Communication can tend to be
broadcasting a message. one-way.
• Specialized method to • Limited amount of feedback.
communicate with a specific
demographic.
Company • Enables consistent, dynamic • Requires personnel to manage and
website communication to broad base of update.
recipients. • Two-way communication is not
• Reduces the geographic location real-time and feedback can be
factor. limited.
Communication Model
Communication models determine how information must flow from the sender to the receiver. The
major components of the communication model include the sender, the receiver, and the message.
The communication model must be considered when planning for project communications. During
the communication process, it is the responsibility of the sender to send information that is clear
and complete so that the receiver receives the information correctly and understands it properly.
The receiver is responsible for confirming that the information from the sender has been received,
verifying the completeness of the message, and ensuring it has been understood properly. The
project can be negatively impacted if the communication between the sender and receiver fails.
Communication Technology Considerations

Communication technology is any type of technology that is used for communicating
information, including websites, email, instant messaging, phones, and video conferencing. Some
technologies are instantaneous, while others take time; some are interactive, while others are one-
way only. Some provide a historical record of what was communicated, while others are transient.
Questions to ask when determining communications technology for each type of communication
are:
• How quickly must the information reach the audience?
• Is there likely to be feedback from the communication? How will it be collected and integrated?
• Must there be a record of the communication? What type of record is required?
• What technologies are available for transmitting the given communication? Are they appropriate
to the type and value of the communication?
• What technology will the audience need to receive the communication? Is it likely that the
receiving technology is in place? If not, how expensive is it?
• Are there technical difficulties or learning curve issues with communicating via the technology?
• Are there access issues, such as security-protected sites, which could limit the number of
audience members who could receive the communication?
• What types of archival technology will be used to store the communication? Where will the
communication be stored? Are there compatibility or access issues that must be addressed?
• Is the particular mode of technology (transmittal, storage, or reception) likely to become
outdated before the project is completed?
• What is the relative cost of each technology, taking into account the number of communication
channels and number of members who must receive the communication?
• Consider any relevant global communication issues that may affect your project; how will they
influence your choice of the most appropriate technology?
Communication Method Considerations

There are many factors that can influence the project team's communication methods and their
effectiveness. Although it's tempting to try to control the factors, as the project manager, the key is
having an awareness of the factors and knowing which communication will work best in each
situation.
Factor Description
Language barriers When stakeholders span across countries, language can be one of the
biggest barriers to effective communication. You must strive to find a
common language or provide translators and interpreters who can ensure
that the message is sent and received clearly. When language is a potential
barrier, you might choose to use written or printed material that can be
translated rather than spoken words that can be misinterpreted or
misunderstood.
Geographical factors When team members are scattered across time zones or global
hemispheres, the time zone difference can affect the timely delivery of
messages. It's important to consider the message's destination when
choosing how and when you will communicate. Voice and video
conferencing can help to bridge the geographical gap, but be careful to
avoid meeting when someone should be sleeping.
Technological Having the appropriate technological resources will be important for
everyone on the project team to be able to send and receive clear
messages. Something as simple as making sure everyone has functioning
speakers with little or no static can help to make your video calls go more
smoothly.
Cultural When different cultures are involved, it's important that the
communication method be inclusive and take any cultural beliefs into
consideration.
Factor Description
Inter-organizational The method of communication between two or more organizations
might be dictated in an official organization procedures manual, but most
likely, it will depend on the parties involved, what needs to be
communicated, how frequently the communication needs to happen, and
so on.
Intraorganizational Within an organization, the communication methods and channels are
probably well-defined; however, having an understanding of the most
effective methods will be invaluable in conveying the message.
Personal preferences Some team members might have a preference for email while others
appreciate a phone call. Knowing the individual preferences can help you
choose the best communication method.
Rapport/relationship When the goal of communication is to build rapport or relationships, a
building personal touch is often more effective. A phone call or a personal email
can be more persuasive than a mass email.
Message content Some messages won't be easy to deliver because they contain news that
the receiver does not want to hear. In that case, you need to be ready for
the variety of reactions to how the message is received. While it might be
tempting to avoid conveying bad, or undesirable, news in person, that
might be the best method to get your message across. Using a personal
touch might provide the support that the receiver needs to actually hear
the message.
Criticality For project messages that are of the highest importance and critical to the
success of the project, you will want to ensure that your communication
method is appropriate.
Stakeholder Documentation for official tracking and monitoring purposes might be
requirements the driving force for the chosen communication method.
ACTIVITY 8-1
Identifying Effective Communication Methods
Scenario
In preparation for the project kick-off meeting, as the project manager you need to identify the most
effective communication methods to use. One member of the team will be participating from a
remote location.
1. What are the three major components of the standard communications

model?
○ Sender, receiver, and message.
○ Sender, medium, and receiver.
○ Encoding, decoding, and message.
2. During the project kickoff meeting, you want to make sure that the information
you present is understood by the people in attendance. Which communication
method should you employ?
○ Interactive
○ Push
○ Pull
3. In the GCCG project, what cultural factors might influence how you choose to
communicate with stakeholders?
A: Answers will vary, but might include different languages and the need to be sensitive to others.
Even when speaking the same language, others might literally interpret someone's words rather
than the intent of the message.
4. When communicating with the project team that is located in multiple

locations, and maybe even different time zones, how do you determine which
communication method will be the most effective?
A: You need to evaluate the specific situation that is requiring communication and determine whether
being face-to-face is critical or not. For status updates or communicating relatively standard
information, sending an email might be the most effective. However, if you need to break bad
news to the project team, you will definitely benefit from being able to see, and possibly handle,
their reactions firsthand. This might need to be done in a virtual meeting, but a meeting
nonetheless. Also, using a public forum to share good news can also be a motivating factor for
team members.
TOPIC B
Create a Communications Management Plan
Now that you are aware of the different communication methods and technologies available, you
need to create a strategy or plan for the best way to communicate with your project team and other
stakeholders. In this topic, you will create a communications management plan to ensure effective
communication.
Communications Management Plan

An effective communications management plan ensures that the right people receive the right
information in the most appropriate format at the right time. Efficient communication means that
the right amount of information and level of detail is given at the right time. You don’t want your
resources expending unnecessary energy reporting on details that are not required at that time. Nor
do you want to spend hours generating unnecessarily long reports. Mastering the techniques to
develop an effective communications management plan will ensure that you deliver significant
information to stakeholders when they need it.
As a project manager, your communication plan needs to identify the audience (who), the types of
information they should receive (what), the frequency (when), and the communication method and
technology (how) that will be used. The plan can be in a table or spreadsheet format as shown in the
following example.
Stakeholder Message Method/Format Frequency Responsible
Sponsor Status report Written document Weekly or Project Manager

providing quick Monthly
reference on
project issues.
Customer Project plan Formal plan At beginning of Project Manager
document the project
End-user Results of the Training via class At the end of the Assigned trainer
project or one-on-one project
Team Collecting project Web-based As needed Team members
data database
Team Project issues Team meetings As needed Project
coordinator
Team Progress reports Informal written Weekly Project Manager
documents
Example: Creating a Communications Management Plan for a New Project

You are working on a project for a multinational company. Communication for this project has
been particularly difficult, with members missing vast amounts of information being generated or
acting on misinformation. These errors cost thousands of dollars in lost work hours. You discovered
that the problem is due to the geographic dispersal of team members and the irregular schedules of
several stakeholders.
Based on these considerations, you determined that the communications management plan will use
a web-based template that allows deployed staff to submit their information to a uniform database.
To facilitate information collection and dissemination, you determine that an online form will
categorize the data while the online program organizes the data and automatically prepares reports
Lesson 8: Communicating During the Project | Topic B
in email format that are delivered on a schedule, based on the needs of all stakeholders. You
integrate all the information in the communications management plan and provide copies to all
project stakeholders.
Stakeholder Communication Requirements Analysis

Communication requirements are the project stakeholders' documented communication needs.
They include relevant information that contributes to the success of a project and analysis of cost,
time, and logistics. Not all stakeholders will require the same amount, level, or timeliness of
communication. The variances must be factored into the communication requirements.
Communication requirements analysis is an investigation that leads to a clear articulation of the
stakeholders' communication needs and helps the project manager make effective choices regarding
the technologies to be recommended in the communications management plan. It should also
address special communication needs, such as time zones, communication preferences, functional or
hierarchical barriers, language barriers, technological barriers, and cultural differences, when working
with remote teams or team members.
This analysis should take the form of a grid, questionnaire, or survey that documents the
communication and technology requirements for each stakeholder. It will also enable the project
manager to obtain buy-in from stakeholders and shape their perceptions by providing the right
information at the right time.
A project manager conducting communication requirements analysis may survey stakeholders
regarding their communication needs by asking some basic questions, such as:
• How often will you like to receive status reports?
• How will you prefer to receive information: by phone, by email, or in face-to-face meetings?
• What level of detail are you expecting?
Issues of appropriateness, level of detail, timeliness, and cost should be considered in addition to the
preferences and technology capabilities of stakeholders.
Communication Channels Calculation

Project managers need to identify the number of communication channels, or paths, which will
indicate the complexity of the project's communication. The number of channels, or the number of
ways that a team can communicate, is identified with the formula:
(n(n – 1)) / 2
where n = number of stakeholders
For example: 12 stakeholders: (12 x 11) / 2 = 66 communication channels
The relevance of this relationship becomes apparent when we recognize that the number of
channels also represents the number of ways that we can miscommunicate—66 potential ways for a
group of 12 stakeholders.
Note: To learn more, check out the video on Communication Channels
Communication Triggers, Target Audience, and Rationale

The following table describes the types of events that can trigger the need for communication from
the project manager, identifies the target audience, and provides a rationale.
Trigger Target Audience Rationale
Audits Project team Timeframe of audit
Trigger Target Audience Rationale
Project planning Project sponsor, client Impact on project planning

documents
Project change Project team Impact on schedule, cost, or
risk
Risk register updates Project sponsor, project team Impact on schedule or cost
Milestones Project sponsor, client Milestone reporting
requirement
Schedule changes Project sponsor, functional Impact on schedule, cost, or
managers, client risk
Task initiation/completion Project team Impact on upcoming tasks
Stakeholder changes Project team, affected Impact on schedule, cost, or
stakeholders risk
Gate reviews Project team Reporting requirement
Business continuity response Project team, project sponsor Impact on project
Incident response Project team Impact on schedule, cost, or
risk
Resource changes Functional managers, project Impact on schedule, cost, or
team risk
Situational Communication Responses

Certain situations require specific responses on the part of the project manager, as described here.
• Personality conflicts between team members. Meet with the two team members separately
and try to understand their individual issues and concerns. Then meet with them together to
discuss and resolve the differences.
• The project is significantly behind schedule. Discuss the issue with the sponsor.
• Minor organizational changes have occurred. Discuss the issue with the project team during
the team's regular meeting.
• An important milestone has been successfully completed. Notify the sponsor and senior
management of the achievement.
• A team member leaves the organization. Discuss the team member's exit and its effect on the
project during the team's regular meeting.
• A team member passed away unexpectedly. Immediately hold an emergency meeting with
the project team to discuss its effect on the project.
• The main vendor is unresponsive. First meet with the vendor and review the contract
requirements and deliverables. Immediately following that, the sponsor should be notified. In
order to protect your legal standing, document your objections to the vendor in writing.
• Significant budget cuts have occurred. Call an emergency meeting of your project team and
announce the change and how it's going to affect the scope, project, and resources needed for
the project. If required, also meet with the vendor and negotiate new contract terms.
Guidelines for Creating a Communications Management Plan
Effective communications management plans ensure that all project team members are aware of the
type and format of information shared with project stakeholders for the success of the project. To
create an effective communications management plan, follow these guidelines:
• Gather and distribute contact information for all involved parties.
• Determine the communication needs of project stakeholders.
• Work from an organization chart to avoid omitting a key stakeholder.
• Ask for your project sponsor’s input.
• Ask open-ended questions.
• As a rule of thumb, project team members require more detail on a more frequent basis. Senior
management typically requires summary information on a less frequent basis.
• Analyze the value to the project of providing information.
• Evaluate any constraints and assumptions to determine their possible impact on communications
planning.
• Determine the appropriate communication technologies to use for communicating project
information.
• Determine the immediacy of the need for information.
• Analyze the availability of technology systems.
• Evaluate the expected project staff to identify their knowledge of and access to proposed
technology.
• Conduct research to determine the likelihood that there will be changes to the proposed
technology before the project is over.
• Make sure that your communications management plan includes all key elements:
• A description of the type of information required for each project stakeholder.
• A collection and filing structure that describes the methods the project team will use to
collect and file project information.
• A distribution structure describing to whom and by whom project information, such as status
reports, data schedules, and meeting minutes, should be provided.
• The methods that will be used to distribute the various types of information.
• Schedules for the production of each type of communication.
• Methods for accessing information between scheduled communications.
• A method for updating and refining the communications management plan throughout the
project life cycle.
• Identify the functional or hierarchical barriers, language barriers, technology barriers, and any
cultural differences in the project and document them in the communications management
plan.
• Integrate the communications management plan into the overall project plan.
• Distribute the plan to project stakeholders.
ACTIVITY 8-2
Creating a Communications Management Plan
Scenario
You have assigned roles and responsibilities to the team members for the GCCG e-Banking Portal
project. Now, you need to define in your communications management plan so everyone is aware of
how the project team will communicate with each other. While most of your team is situated locally,
several key members are geographically dispersed across several states.
1. What is the best description of a communication requirements analysis?

○ Your decision of what information will be important to the stakeholders, based upon other projects
you have managed.
○ An understanding of the communications needs of each stakeholder.
○ The results of a meeting between you and the project sponsor, where the two of you have decided
what information should be shared with the stakeholders.
2. Which item should you use to determine the communication needs of all
project stakeholders?
○ Research material
○ Stakeholder analysis data
○ Project report deadlines
○ Executive board schedule
3. Given the scenario, which technology can be used for enhancing team
member interactions and building relationships through the life of the project?
○ The team building event at project kick-off.
○ The project team threaded discussion board.
○ Using email and databases to collect and store information.
○ High-quality virtual teleconferencing on a semiweekly or weekly basis.
4. Given the scenario, what will be a good primary communication technology

for exchanging project information?
○ Phone exchange with email confirmation
○ Weekly face-to-face meetings
○ Voice mail
○ Video conferencing
5. After integrating the communications management plan in the overall project

plan, what will be the next logical step?
○ Determining whether there will be changes to the proposed technology before the project is over.
○ Creating a schedule for the production of each type of communication.
○ Distributing the plan to all the stakeholders.
○ Creating a description of stakeholder communication requirements.
Summary
In this lesson, you identified the importance of developing a communications management plan to
ensure that everyone on the project team understands the strategy for communicating the project's
progress. As the project manager, you must facilitate and demonstrate efficient and effective
communication throughout the life of the project.
In your experience, which communication methods did you find to be the most
effective? Which methods were the least effective?
A: Answers will vary, but might include one-on-one status updates being an effective method of
communicating the necessary information with the right person at the right time. Another effective
method might be posting project status updates on a shared team site so everyone has the
information at their fingertips when they need it and don't have to waste time searching for what they
need. The least effective methods would probably involve lengthy, large group meetings where
attendees feel as if their presence is unnecessary or wasted.
Share a situation when you were required to communicate a difficult message

about the project to its sponsor or a top-level executive. What approach and
communication method did you take?
A: Answers will vary, but will probably include the need to be as clear and concise as possible. In addition
to communicating the difficult or bad news, it's beneficial to provide the steps or process that will be
used to correct the situation so the sponsor knows you're working on solving the root cause of the
problem and not just patching the symptoms.
Lesson 8: Communicating During the Project |
9 Planning for Risk
Lesson Introduction
You have created several important components of a sound project management plan,
including plans for managing the schedule, cost, quality, and communication. Unexpected
events can upset your work plan or bring your project to a screeching halt. Experienced
project managers take steps to plan how to manage potential risks to projects. Risk analysis
and planning allow you to be proactive, identifying and circumventing potential issues,
rather than scrambling to respond to problems. Your risk management plan will help
identify and neutralize risks before they can affect the project. In this lesson, you will
develop a risk management plan so that you can identify and respond to the risks to your
project.
Lesson Objectives
• Create a risk management plan.
• Identify project risks and triggers.
• Perform qualitative risk analysis.
• Perform quantitative risk analysis.
• Develop a risk response plan.
TOPIC A
Create a Risk Management Plan
All projects carry risks. As a project manager, it is your responsibility to conduct effective risk
management planning to proactively respond to any potential issues. In this topic, you will plan and
execute risk management activities and examine a risk management plan.
Project management carries with it inherent risk that things can go differently than you had hoped
or planned. Deciding how to approach and plan for project risks early in the planning phase can
help you maximize opportunities in positive risks and minimize the consequences of adverse risks
that may occur during the life of your project.
Risk
A risk is an uncertain event that may have either a positive or negative effect on the project. Its
primary components are a measure of probability that a risk will occur and the impact of the risk on
a project. Some common ways to classify risk are effect-based classification, source-based
classification, and level of uncertainty.
Example: Weather Risks

Due to its relative unpredictability, the weather is a risk common to business. An organization
planning an outdoor festival will likely choose a location and day with the highest probability for
agreeable weather. In this scenario, the threat of rain is a risk that could seriously affect attendance
and revenue. Because the weather is known to be a possible risk but its impact is yet unknown, this
risk will be classified as known-unknown.
Negative Risks
Negative risks are risks that have a negative impact on the project. These can also be referred to as
threats. Project managers strive to prevent these risks from occurring or reduce their impact.
Example: Negative Risk in a Project

Because a competitor introduced a new and improved product, the demand for the existing product
may decrease; therefore, the revenue will be impacted.
Positive Risks
Positive risks are risks that when taken, produce a positive project outcome. These can also be
referred to as opportunities.
Example: Positive Risk in a Project

An example of positive risk is the increase in market demand and revenue for a product due to
effective marketing strategies and need for the product.
Effect-Based Risk Classification

Effect-based risk classification is a method of analyzing the way that risks to a project could
impact its success. A risk can have an effect on time, cost, quality, and scope. All these effects are
interrelated; therefore, any changes to one element will affect all the others.
A project manager may choose to use effect-based risk classification for a complex project in which
many of the risk factors are interrelated, such as a large-scale corporate endeavor or initiative in
Lesson 9: Planning for Risk | Topic A
which many departments, teams, and external resources are participating. Any one department's
failure to produce will impact on the rest of the project.
Source-Based Risk Classification

Source-based risk classification is a method of analyzing risk in terms of its origins. Sources may
be internal or external to the project, and technical, nontechnical, industry-specific, or generic.
For a project requiring internal and external resources, such as an advertising campaign, a project
manager may classify the risks in terms of where they originate. One source of risk could be the
potential rise in the price of advertising time on network television, which could affect cost and
scope. Another source of risk could be the failure of an external advertising agency to meet its
deadlines, which would affect the schedule and scope.
Business Risk vs. Insurable Risk

Project risks are of two types: business and insurable. A business risk is one that is inherent in a
business endeavor, such as when a company assumes that it will spend money and make money, and
that any project undertaken carries with it the potential for success or failure, profit or loss.
Insurable risk is a risk that has only the potential for loss and no potential for profit or gain. An
insurable risk is one for which insurance may be purchased to reduce or offset the possible loss.
Example: Risks in a Retail Store

For a retail store owner, the outlay of money to purchase inventory without a guarantee that it will
sell is a business risk. A loss of inventory due to a fire is an insurable risk.
Business Risk Types

Project managers should be aware of some of the common types of business risks.
Business Risk Description
Competitive Risks such as the risk of increased competition in the marketplace and a
rival company developing a superior product.
Legislative Risks such as the risk of new laws or changes in regulations governing
your products, goods, or services, that require your company to spend
more to maintain compliance.
Monetary Risks such as the risk of increased prices for raw materials, increased
taxes, increased operating costs, and losses due to nonpayment by
customers.
Operational Risks such as the risk of fraud, theft, employee injury, workplace
accidents, and damage to equipment.
Insurable Risk Types

Several types of insurable risks are available.
Insurable Risk Description
Direct property Risk of property damage due to weather, fire, and so on.
Indirect property Risk of additional expenditures needed to recover from property loss.
Liability Risk of needing to make good after causing damage to another.
Insurable Risk Description

Personnel-related Liability risk for damage to employees.
Probability Scales
A probability scale is a graph showing the assignment of value to the likelihood of a risk occurring.
Probability scales are designed using a variety of values, such as linear, nonlinear, or an ordinal scale
using relative probability values ranging from not very unlikely to almost certain. A risk’s probability
score can range in value from 0.0 (no probability) to 1.0 (certainty). While this is a common way to
assign probability, any other set of values can be used instead—for example one to five, or one to
ten.
Figure 9-1: A probability scale with values showing the likelihood of a risk occurring.
Basics of Probability
When you perform probabilistic analysis, you will need to apply some of the basic principles of
probability.
Principle of Probability Description
Sum of probabilities The sum of the probabilities of all possible events must be equal
to 1 (100%).
Probability of single event The probability of any single event must be greater than or equal
to 0 and less than or equal to 1.
Mean The sum of the events divided by the number of occurrences.
Median The number that separates the higher half of a probability
distribution from the lower half. It is not the same as the average,
although the two terms are often confused.
Standard deviation This is the measure of the spread of the data, or the statistical
dispersion of the values in your data set.
Probability Distribution
Probability distribution is the scattering of values assigned to likelihood in a sample population. It
can be visually depicted in the form of a Probability Density Function (PDF). In a PDF, the
vertical axis refers to the probability of a particular value that is depicted on the horizontal axis. The
zero on the horizontal axis represents the mean, and the plus and minus numbers represent standard
deviations from the mean.
Probability can be assigned subjectively or objectively. Subjective probability is based on people’s
opinions, which may be shaped by information, experience, and attitude. Even if they are given the
same set of facts, they may make very different determinations of the probability of an event.
Objective probability is deduced mathematically.
Figure 9-2: A probability density function graph displaying the probability of a measurement with
a specific value.
The Normal Distribution PDF

A normal distribution PDF results when there is a symmetrical range or variation in the
probabilities of each outcome. Visually, the data is distributed symmetrically in the shape of a bell
with a single peak, resulting in the common term bell curve. The peak represents the mean; the
symmetry indicates that there are an equal number of occurrences above and below the mean.
Figure 9-3: A normal distribution PDF graph.
The Triangular Distribution PDF

A triangular distribution PDF results when there is an asymmetrical distribution of probabilities.
Visually, the data is skewed to one side, indicating that an activity or element presents relatively little
risk to project objectives. If either the probability of occurrence is low or the impact is low, then this
necessarily indicates that there is little risk.
Figure 9-4: A triangular distribution PDF graph displaying asymmetrical distribution of

probabilities.
Impact Scale
An impact scale is a rating system of values that reflect the magnitude of the impact of a risk event
on project objectives. The impact scale can be ordinal, using values of very low, low, moderate, high,
and very high. Numbers are assigned to these values. To improve the integrity and quality of the
data and make the processes consistent and repeatable, organizations typically develop definitions
for each value to help the risk management team assign each risk's impact score consistently. As
with the probability scale, any set of numbers can be used to correspond to the range of impacts.
Figure 9-5: Impact scale.
The following table shows an example of an organization's impact scale.
Impact Impact Level Definition

Rating
1 Very low If this risk occurs, the impact on the project's objectives would
be minor and not noticeable outside the project.
3 Low If this risk occurs, the impact on the project's objectives would
be minor but noticeable to the customer or sponsor.
Impact Impact Level Definition

Rating
5 Moderate If this risk occurs, the impact to the project's objectives would be
significant and would create customer or sponsor dissatisfaction
with the project.
7 High If this risk occurs, the impact on the project would be significant
and would create major customer or sponsor dissatisfaction. The
project would be in jeopardy.
9 Very high If this risk occurs, the impact would be catastrophic. The project
would be cancelled.
Levels of Uncertainty
Levels of uncertainty describe the risks of a project based on how much is known about the
source and effect of the risk, which are often described as knowns, known-unknowns, and
unknown-unknowns.
Level of Uncertainty Description and Example
Known Items that you know could affect you, and for which you can roughly
predict the nature and extent of the effect.
Example: A 50% staff turnover in the fast food industry.
Known-unknown Items that you know could affect you, although you are not able to
predict how or how much they will affect you.
Example: Competition in the marketplace.
Unknown-unknown Items that are beyond your ability to foresee, predict, or prepare for.
Example: Hurricane Katrina in the U.S. in 2005.
The Project Risk Management Process

The project risk management process is a high-level process that includes the following outputs: risk
management planning, risk identification, qualitative risk analysis, quantitative risk analysis, and risk
response planning.
Figure 9-6: The project risk management process outputs.
Risk Management Plan

A risk management plan is a document that describes the team's approach to manage risks. It
determines the methodology, approaches, and tools that will be used; documents the roles and
responsibilities of those involved; identifies the budgeting and the scheduling for risk management
activities; and lists the risk categories.
Note: The risk management plan does not address responses to risks. Those are addressed in
the risk response plan.
Example: A Risk Management Plan for a New Project

Entrepreneurs seeking funding from venture capitalists for a new business will present a risk
management plan to their potential investors. For a proposed amusement park, the risk management
plan will describe business risks, such as operational risks of potential losses due to employee theft,
and insurable risks such as liabilities for injuries sustained on the park rides.
Risk Management Plan Components

A good risk management plan will include several components.
Methodology Defines the tools, approaches, and data sources that may be used to
perform risk management on the project.
Roles and responsibilities Defines the lead, support, and risk management team membership for
each type of action in the risk management plan. Participants might
include project team members and a risk officer.
Definitions of risk Scales of risk probabilities and impact are defined for use in qualitative
probability and impact risk analysis using terms such as “very unlikely” to “almost certain”
with respective values in numbers for these terms. For instance, “very
unlikely” may have 0.05 as a probability value.
Probability and impact Predefined matrix with risk priority areas earmarked, which has product
matrix of impact value on the X-axis and probability value on the Y-axis.
Revised stakeholder Stakeholder tolerances may need to be updated as a result of planning
tolerances for risk management.
Budgeting A budget for project risk management should be established and
included in the risk management plan.
Timing Defines how often the risk management activities will be performed
Risk categories Documentation, such as a Risk Breakdown Structure (RBS) or
categories from previous projects, will help identify and organize risks.
Reporting formats Defines how outputs of this process will be documented, analyzed, and
communicated.
Tracking Documents how risk activities will be recorded and audited.
RBS
A Risk Breakdown Structure (RBS) is a hierarchical arrangement of identified risks that helps
project managers to organize potential sources of risk to the project. Functioning much like a WBS,
an RBS arranges categories into a hierarchy. This approach allows the project team to define risk at
detailed levels.
Figure 9-7: An RBS displaying the different levels of project risks.
Risk Analysis
Risk analysis is the evaluation of the probability and impact of the occurrence of a risk in a project.
Risk analysis is typically conducted through either qualitative or quantitative techniques. The level of
risk to the project is the product of the probability of the risk occurring and the predicted impact
that the risk will have on the project's success.
Example: Risk Analysis for a New Venture

A manufacturing company would conduct various kinds of risk analyses before launching a new line
of products. It would evaluate the probability and impact of the risks, such as the costs of research
and design; the potential for future sales and revenue from a new product line; fluctuating consumer
demand; competition from rivals; and pending consumer-safety legislation associated with this new
venture that may govern the manufacturing of the new products.
Risk Tolerance
Risk tolerance refers to the level of risk acceptable to a project manager or key stakeholder when
the investment is compared to the potential payoff.
Stakeholders may perceive risk differently. Some stakeholders may be interested in only
conservative, low-risk projects that are similar in nature and scope to many past successes. Other
stakeholders may seek out high-risk ventures in uncharted territory; they may be willing to risk a
great amount of capital on a speculative project with the potential for large returns.
Risk Tolerance Levels

There is a range of risk tolerance levels starting with the risk-averter to the extreme risk-seeker. Most
people find themselves comfortable somewhere in between the averter and the seeker.
Risk Tolerance Description

Classification
Risk-averter Not likely to take a risk that is considered a high risk.

Risk-neutral Tolerance to risk is proportional to the amount of money at stake.
Risk-seeker Accepts an uncertain outcome and may be willing to take a high risk
regardless of the consequences.
Guidelines for Creating a Risk Management Plan
Creating an effective risk management plan provides the project team with a secure approach to
identifying, analyzing, responding to, monitoring, and controlling project risk. To create an effective
risk management plan, follow these guidelines:
• Collect the cost, schedule, and communications management plans to know how budget,
schedule, and contingencies and management reserves will be communicated and accessed.
• Determine how you will organize your project’s risk management team.
• Consider assigning a risk officer to coordinate all risk management activities. While not all
organizations have risk officers, it may be a helpful option to consider.
• Define the roles and responsibilities for each person on the risk management team.
• The sponsor may be able to assist in some risk management activities, such as developing
response strategies for all risks classified as high risks.
• Conduct risk planning meetings to develop the risk management plan.
• Establish a budget for risk management.
• Consult your organization’s risk management policy and make sure that your risk planning
complies with the policy. If your organization has a risk management plan template, use it and
make modifications to meet the specific needs of your project.
• Describe the approaches, tools, and data sources that may be used to perform risk management
activities for this project.
• How will the risks be identified? Will you conduct brainstorming sessions? Will you use the
Delphi technique? Will you use SMEs?
• How will the identified risks be scored and analyzed so that effective response strategies can
be developed? Is there organizational policy mandating a specific scoring and prioritization
method?
• Determine and describe the schedule for performing risk management activities.
• Determine and describe how your team will document risk response efforts.
• What tools will your team use to store risk information and track responses?
• How will the risk response efforts be communicated to the project stakeholders?
• Determine and describe how the lessons learned from your risk management activities will be
documented for the benefit of future projects.
• If an organization, sponsor, or customer has specific guidelines or requirements regarding risk
thresholds, this information should be included in your risk management plan.
ACTIVITY 9-1
Creating a Risk Management Plan
Data File
C:\095016Data\Planning for Risk\GCCG Risk Management Plan.docx
Scenario
You constructed your project management plan for the GCCG e-Banking Portal project, which
includes plans for managing costs, quality, and communication. The risk management plan for the
project has been developed and you would like to review its content before you share it with the
project team. You know that your risk management plan needs to address all risks associated with
the GCCG e-Banking Portal project and the external service providers.
1. During your project review, you determine that a risk officer is needed to
handle risk management activities. Which activities would you assign to this
person? Select all that apply.
☐ Assigning roles and responsibilities to each team member.
☐ Developing response strategies.
☐ Confirming and articulating the risks' probability and impact to the business strategy.
☐ Coordinating risk identification and analysis activities.
2. With your planning meetings started and budget decided, your team begins
the task of determining how to identify risks. When planning project risks,
which component will you look at first?
○ Other project risk management policies
○ The organization's risk management policy
○ The organization's quality policy
3. Which additional factor should you consider when developing your risk
management plan?
○ The geographic location of the project team
○ Thresholds
○ Job descriptions
○ Communication technology
4. You integrated specific risk-related activities and deliverables in the project's

schedule and documented how to track risk response efforts in your risk
management plan. Which task should you perform to complete the risk
management plan?
○ Determine the necessary budget.
○ Make sure that roles and responsibilities are clearly understood by the team and other
stakeholders.
○ Determine how to document lessons learned for future projects.
○ Create a probability impact matrix.
5. Open C:\095016Data\Planning for Risk\GCCG Risk Management Plan.docx

and use it to answer the remaining questions.
6. As noted in the GCCG Risk Management Plan, the risk management plan for
your e-Banking Portal project uses a probability scale to define the probability
of occurrence of a risk listed in the risk register. Which of the following is the
probability scale defined for the project?
○ 0.1, 0.3, 0.5, 0.7, 0.9
○ 1, 3, 5, 7, 9, 11
○ 1.1, 1.3, 1.5, 1.7, 1.9
○ 2, 4, 6, 8, 10, 12
7. Which section of the GCCG Risk Management Plan document highlights the
risk priority areas for the project?
○ The probability and impact matrix
○ Methodology
○ Frequency of updating risk registers
○ Roles and responsibilities
8. According to the GCCG Risk Management Plan document, who is

responsible for updating the Risk Register?
A: Project Manager
TOPIC B
Identify Project Risks and Triggers
In the previous topic, you created a risk management plan. Using the approach outlined in the plan,
you can begin the process of identifying potential risks that may affect your project. In this topic,
you will delve into the risk identification component process and identify project risks and triggers.
Identifying risks and triggers helps you determine the most effective action to take for each risk.
Mastering the tools and techniques to identify project risks and triggers ensures that you are
prepared to take the appropriate action.
Triggers
Triggers are the early warning signs or indications that a risk to your project is about to occur. They
could be external factors that influence your project, such as proposed changes in relevant
legislation. They could also be internal factors that influence your project, such as proposed changes
in staffing, governance, or funding within your organization. Triggers must be examined during
regularly scheduled risk review sessions held during the life of the project.
Example: Trigger Indicators

For a project involving the production of an independent documentary for television, news of an
impending television writers' strike will be a trigger. If the writing on the documentary is not yet
complete, the trigger could indicate a negative risk that critical external resources will not be
available during the strike. If the writing on the documentary is complete, the trigger could indicate a
positive risk that the networks' demand for the product could increase in the absence of other new
programming.
Example: Identify Project Risks and Triggers

A car manufacturer conducted an internal study and concluded that passengers had difficulty
buckling the company's standard seat belt. A team was commissioned to redesign the belt buckle.
The project manager directed the risk management team to review the project documentation and
results of the study. The risk management team brainstormed a list of potential risks and their
triggers for the new buckles. Two risks identified were that the buckles would fail to provide proper
slack during regular use and that the buckles may accidentally release during a collision.
The project team examined old test results for similar buckle designs and commercial safety studies
concerning seat belts. After reviewing the information, these risks were categorized as technical. The
project manager called for tests that would specifically check the probability of these risks occurring.
Because public safety was at risk, the team agreed that even one failed test would trigger an
immediate risk response plan. The team noted all their results in the initial project risk register for
later analysis.
Information-Gathering Techniques
Information-gathering techniques are methods that are used to collect data that will assist the
project team in identifying risks and risk triggers to the project.
Brainstorming Used to identify overall project risks or may focus on the risks within a
particular project segment or work package.
Lesson 9: Planning for Risk | Topic B
Delphi technique Used to generate a consensus among project risk experts who
anonymously submit their risk list to a facilitator. Because it relies on
achieving consensus, the Delphi technique may be difficult to implement
in many organizations.
Root cause analysis Used to identify problems, discover the root cause, and develop corrective
actions.
Interviewing Used to get information from people with wide experience across many
projects, such as stakeholders, team members, project managers from
previous projects, and functional management peers, to quantify the
probability and impact of risk on project objectives. The output is a
statistical interpretation of the data from which a range of probability can
be expressed against a level of confidence that the risk will or will not
occur, such as optimistic or low and pessimistic or high.
There are two interviewing methods used for generating risk probabilities:
Direct and Diagrammatic.
• Direct: Approaching an expert to assign subjective probabilities to a
given range of values, providing a lowest possible value, most likely
value, and highest possible value.
• Diagrammatic: Using diagrams to seek advice from an expert to assign
subjective probabilities to a given range of values, providing a lowest
possible value, most likely value, and highest possible value.
Documentation Reviews
Documentation reviews are the structured reviews of project plans and related documents that are
conducted to improve the quality of the documents. They also help in determining if there are any
discrepancies between the documents and the stated project requirements, which may be indicators
of project risks. The documents of previous projects that are used in the current project may also be
reviewed along with other documents.
Example: Documentation Reviews in a Global Service Providing Company

A global service providing company, situated in several locations across the world, decides to
incorporate an ERP system within the organization and customize business processes to suit the
organization's requirements. Because the company conducted a similar project earlier, the PMO
decides to use the project documents created for the previous project. While reviewing the
documents, the PMO identified that the activity list was not updated with some changes made
during the later phases of the project. The PMO rectified this in the current project.
Checklist Analysis
Checklist analysis is the process of systematically evaluating the pre-created checklists and
developing a checklist based on relevant historical information. It serves as a standardized way to
identify risks and is applicable to any process or system, including equipment and human issues.
This analysis is generally performed by experts and the quality of evaluation is primarily based on the
knowledge and experience of people creating the checklists. It is recommended to review the
checklist during project closure and incorporate the lesson learned for future use on projects.
The steps involved in checklist analysis include:
1. Determine the process or system of interest.
2. Define the areas of interest.
3. Classify the process or system.
4. Create relevant checklists.

5. Subdivide the elements of the activity or system if necessary.
6. Respond to the questions related to the checklists.
7. Use the results for making validations, recommendations, or improvements.
Assumptions Analysis
Assumptions are statements that must be taken to be true in order to begin project planning.
Assumptions analysis is the process of validating the assumptions made during project planning.
It involves documenting the assumptions and then determining the risks that may be caused due to
inaccuracy, instability, or incompleteness of the project assumptions. Assumptions analysis can be
carried out at any phase of the project life cycle.
Diagramming Techniques
Different diagramming techniques are used to identify project risks.
Diagramming Technique Used To
Cause-and-effect diagrams Identify the causes of project risks.

Flowcharts Identify process elements that have risk associated with them.
SWOT Analysis
SWOT analysis is the process of examining the project from the perspective of strengths,
weaknesses, opportunities, and threats. SWOT analysis identifies the objective of the project and the
external and internal factors that may positively or negatively impact the project. The analysis can be
used for making decisions and developing strategies or plans that help an organization achieve its
business objectives.
Figure 9-8: A sample SWOT analysis chart.
Risk Registers
The risk register is a living document that identifies and categorizes risks, potential risk responses,
and their triggers, or warning signs. If risk categories are changed, the risk register must be updated.
Any possible risk responses included in the risk register are forwarded for use in planning risk
responses. The risk register will be updated with the results of other risk management processes and
provided to project team members involved in project risk management.
Note: The risk register will ultimately contain the outcomes of other risk management
processes, including the results of the qualitative risk analysis, quantitative risk analysis, and risk
response planning. In its initial stage, the risk register does not necessarily contain information
regarding planned responses to risks. However, the sample risk register shown in the following
figure is a completed one.
Figure 9-9: An example of a completed risk register.
Risk Categories
Risk categories divide project risks into areas reflecting common sources of the risk.
Risk Category Examples
Technical, quality, or • Technical changes.

performance risks • Changes to industry standards during the project.
• Reliance on unproven or complex technology.
• Unrealistic performance goals.
Project management risks • Inadequate time and resource allocation.
• Ineffective project plan development.
• Poor cost estimates.
Organizational risks • Resource conflicts with other projects.
• Inadequate project funding.
• Inconsistent management support.
External risks • Union issues.
• Change of management in customer’s organization.
• Regional security issues.
Guidelines for Identifying Project Risks and Triggers

It is important to identify and document the characteristics of risks that affect the project so that the
project team can determine the most effective action to take for each risk. The project risks and
triggers identified will determine the type of risk analysis to be performed. To identify project risks
and triggers, follow these guidelines:
• Perform a structured review of documents and processes with key project stakeholders to ensure
an understanding of the risks involved. These documents are a valuable source for risk
identification and they may include:
• The project charter.
• The WBS.
• The product description.
• The schedule and cost estimates.
• The resource plan.
• The procurement plan.
• The list of constraints and assumptions.
• Use a consistent method to identify risks and their possible triggers. Techniques may include:
• Information-gathering techniques such as brainstorming, interviewing, the Delphi technique,
and SWOT analysis.
• Risk identification checklists (make every effort to itemize all types of possible risks to the
project on the checklist).
• Assumptions analysis.
• Diagramming techniques such as cause-and-effect diagrams and system flow charts. You can
also use influence diagrams, which provide a graphical representation of a problem showing
causal influences, time ordering of events, and other relationships among variables and
outcomes.
• Apply the selected method systematically. Before the project begins, identify risks in every
project segment and work package. At the start of each project segment, reexamine the risks for
that segment. Update your list of risks at the close of each project segment.
• Think outside the box. Apply your method consistently, but be on the lookout for special
circumstances that may arise in any project segment. Those checklists and templates are in place
to help get the risk identification process going, but they are far from complete. As the project
progresses, circumstances change. Be on the lookout for changed assumptions, new risks, or
additional impacts from previously identified risks.
• Consult relevant historical information, such as risk response plans and final reports from
previous similar projects, that may include lessons learned describing problems and their
resolutions. Another source of historical information for risk identification is published
information, such as commercial databases, academic studies, and benchmarking results.
• Collect the historical information and other project-related documents and perform a checklist
and assumptions analysis. Conduct a SWOT analysis to identify the risks involved in achieving
the project objectives.
• Once risks have been identified, group them into categories that reflect common sources of risk
for your industry or application area.
• Examine each identified risk to determine what triggers will indicate that a risk has occurred or is
about to occur.
• Use the results of your analysis to initiate the risk register.
• Consider implementing any risk-register software that may be in common usage at your
company. You can also create a risk register without specialized software by using a
spreadsheet or table.
• Include the project's name, sponsor, key stakeholders, and objectives.
• Identify the risks inherent in your project with a description of each.
ACTIVITY 9-2
Identifying Project Risks and Triggers
Scenario
With a completed risk management plan, your project team for the GCCG e-Banking Portal project
moves to the risk identification phase. You hold a meeting with your team and provide each team
member with a copy of the project charter and technical documentation for the risk identification
process.
1. You and your project team will have a meeting to identify and examine the
strengths and weaknesses within GCCG that can potentially impact the
project, as well as any opportunities or threats that may be imposed by the
external consultants and network providers. Which information-gathering
techniques will you use? Select all that apply.
☐ Brainstorming
☐ Interviewing
☐ SWOT analysis
☐ The Delphi technique
2. There is a new upgrade to the web development software that the

programmers are using. This upgrade is mandatory to the project
development environment and therefore, when available, will be required by
GCCG. In what risk category should your team place this risk?
○ Project management
○ Technical, quality, or performance risks
○ Organizational
○ External
3. What is the trigger for the software upgrade risk that has been identified?
○ The potential increase to the total project costs that the upgrade will cause.
○ The enhancements to the web development software.
○ The IT department scheduling the software upgrade.
○ The impact the upgrade will have on the project by narrowing the RFPs sent to external
consultants.
TOPIC C
Perform Qualitative Risk Analysis
You identified the risks that may affect your project and documented their characteristics. Now, you
must assess the impact and likelihood of these identified risks. In this topic, you will perform
qualitative risk analysis, where you will rank and prioritize project risks according to their potential
effect on project objectives.
Identifying risks is only one part of an effective strategy to minimize work activity disruptions that
could cause your project to go over budget or exceed its promised deadline. It is important to rank
their importance so that precious time isn’t wasted addressing risks with low priority. Qualitative risk
analysis lays the foundation for effectively quantifying high-priority risks in your project.
Qualitative Risk Analysis

Qualitative risk analysis is the process of determining the probability of occurrence and the
impact of identified risks by using logical reasoning when numeric data is not readily available. This
is then used to determine the risk exposure of the project by multiplying the probability and impact.
The qualitative risk analysis process ultimately provides the list of prioritized risks for further
actions.
Example: Performing Qualitative Risk Analysis for a Music Concert

An event management company is planning to organize a jazz concert in a coastal city. An initial
marketing survey undertaken by the company indicates that the response for the concert will be
good, because the general population of that city likes jazz music. Also, historical data shows that
the response toward similar musical concerts held in this city has been very encouraging.
However, a recent weather bureau announcement indicated that there is a slight possibility that the
low-pressure area that developed beside the coastal city can cause heavy rains on the day of the
concert. The organizing committee officials decide to have a discussion about the weather risk with
all the stakeholders involved, to evaluate the impact of risk on the project objectives on the basis of
a scale of low, medium, and high.
The members discuss the issue, list different areas of concern, and rate them. The members find
that in the worst case scenario, the low-pressure area over the coast may develop into a tropical
storm, accompanied by very heavy rains and wind. But the chances of that are remote, because the
weather bulletin does not project a tropical storm and indicates that there is only a slight possibility
of heavy rains.
Secondly, some of the members were concerned that heavy rains may force people to stay indoors
and reduce the incremental revenue from ticket sales at the box office on the day of the event, as
well as from sales of souvenirs and concessions at the event. But on the contrary, others felt that
because the concert is to be held inside an auditorium, the chance of rain having a big impact on the
audience turnout is remote. Also, even a seat occupancy rate of 50% would ensure that the
expenditure involved with this event can be reclaimed.
Based on the deliberations, the organizing committee finally concludes that the risk exposure is low
or at the worst moderate in nature. The event managing company documents the information in the
risk register.
Risk Matrix Criteria

To create a numerical risk matrix, you must identify the probability and impact of each risk on a
project. The following table is an example of a one-to-five scale that can be used for probability and
impact.
Lesson 9: Planning for Risk | Topic C
Risk Level Criteria
5—Very high Will break the project. For example, if the technology doesn't meet basic quality
requirements, the system will seriously disrupt a mission-critical business
function.
4—High Significant additional resources in time and cost will be required to complete
the project. Sponsor may need to handle the risk.
3—Medium The project will be delayed, but can still be completed with moderate additional
resources. The project manager can handle this risk with the support of the
sponsor.
2—Low The project can be completed with minor additional resources in time or cost.
The project manager can handle this risk.
1—Very low Minor inconvenience. For example, an important internal skill resource
becomes unavailable, but external equivalent skill resources are readily available
at equivalent cost. The project manager can handle this risk.
Risk Data Quality Assessment

Risk data quality assessment is a technique that involves the evaluation of the reliability of the
available data concerning a risk. It includes examining the data obtained about a particular risk for
the amount of data available, the quality of data available, the extent to which the source of the
information understands the risk, and the legitimacy and dependability of the data.
Example: Risk Assessment for a Restaurant Chain

As project manager for a restaurant chain, Barry is responsible for the new site development. The
company is interested in expanding to a location in the northern section of the city, and Barry
conducted a risk assessment to determine whether or not it would be financially sound to purchase
property in a large shopping plaza there. The risk assessment includes the average cost per square
foot of real estate within that neighborhood; this figure indicates that real estate is selling at a very
reasonable price. Upon detailed examination of the risk data, however, Barry discovers that the
information used to calculate the average cost per square foot is five years old. Barry's quality
assessment indicates that the data is too out-of-date to be useful in the risk analysis, and purchasing
property based on this information would be a poor idea.
Risk Probability and Impact Assessment

Risk probability and impact assessment is a risk assessment technique that is used to evaluate
the likelihood of occurrence and potential impact of the identified project risks. The risk
probability and risk impact factors are often ranked either as very high, high, moderate, low, and
very low or else as numbers from one through ten. Then, probability and impact of a risk are
multiplied to identify the risk score, which is used to set the priority for each identified risk. The
methods used to assess risk probability and impact include meetings, interviews, expert judgment,
and drawing from historical information.
Figure 9-10: A chart used to assess a project's risk probability and impact.
Probability and Impact Risk Rating Matrix

The probability and impact risk rating matrix is a graph showing the assignment of risk rating to
risks or conditions. The matrix combines the probability and impact scales to prioritize and identify
risks that are likely to require further analysis. Risk rating is calculated by multiplying the risk’s
impact score by its probability score. It may indicate risk thresholds by applying shading, color, or
line variations. The probability and impact risk rating matrix will guide the response plans.
The sample probability and impact risk rating matrix shown here is a simplified example; the
shadings of color indicate the levels of probability and impact. A real probability and impact risk
rating matrix will be used to assess very complicated risks with many factors and data points.
Figure 9-11: A simplified probability and impact risk rating matrix.
Example: Qualitative Risk Analysis for a Fast Food Company

A fast food company wanted to reduce its long lines and increase its hourly sales. The company
discovered that by reducing the cooking time of hamburgers by 30 seconds, they could average 10
more customers served per hour. The shift managers decided to perform qualitative risk analysis to
identify potential problems with this plan. Most of the risks they identified centered around food
safety and were based on existing health and safety standards for the cooking of meat products.
These regulations forced the restaurant chain's risk threshold to be very low.
A probability and impact matrix was created and each identified risk was scored on the matrix.
Highest in the ranking was the cook's inability to guarantee consistency of internal food temperature
based on a formula of cooking times.
Risk Urgency Assessment

Urgent risks are risks that require immediate attention. Risk urgency assessment is the task of
evaluating project risks and prioritizing them based on their urgency. The assessment may also
include specific information on timing for responding to each risk.
Example: Assessing Risk Urgency in a Construction Project

David is managing a small construction project. During project execution, he identifies that the
building's scaffolding support is inadequate, which may lead to a fatal accident on site. This risk will
require immediate attention while other risks, such as unavailability of resources and weather threats,
though equally important, will be less urgent.
Risk Register Analysis

There are several ways that the data in a risk register can be analyzed, as shown here.
Analysis Description
Relative ranking or priority list The overall risk ranking for a project can be determined by
of project risks adding the individual risk factor scores and dividing by the
number of risks.
Risks grouped by categories Placing risks in categories may reveal areas of risk concentration.
It may also highlight common causes of risk, allowing you to
improve risk anticipation and response.
Causes of risk or project areas Identifying specific frequently occurring causes in risk occurrence
requiring particular attention enables better risk response planning.
Lists of risks requiring Some risks may require action in the near term. These can be
response in the near term grouped separately from the risks that will be addressed at a later
date.
List of risks for additional Risks that may require additional analysis and management
analysis and response typically include risks classified as high or moderate. For example,
a schedule risk that threatens to delay the project end date beyond
acceptable limits will require quantitative analysis.
Watchlist of low-priority risks Risks that are not urgent and do not require near-term action can
be documented on a watchlist for monitoring.
Trends in qualitative risk As qualitative risk analysis is repeated, a trend may result that can
analysis results make risk response or further analysis more urgent or less urgent.
The Ongoing Risk Assessment Process

The ongoing risk assessment process is an iterative process of identifying, analyzing, and
documenting the risks facing your project; it is conducted throughout the project life cycle. This is
primarily an organizational issue that requires the project manager, or the PMO, to have project
managers outside the project shadow the project manager and provide oversight and fresh
perspective during risk management reviews.
Figure 9-12: The ongoing risk assessment process.
Guidelines for Performing Qualitative Risk Analysis

Performing qualitative risk analysis provides a method by which you can rank and prioritize risks.
Effective qualitative risk analysis can assist an organization with the decision-making process when
selecting which project to do and what resources are assigned. To perform qualitative risk analysis,
follow these guidelines:
• Use the risk register to examine the list of identified risks.
• Are all the risks identified?
• Are all the risks completely documented?
• Analyze the data available for each risk, and assign a data precision ranking score, if you find that
helpful.
• Does the source of the data fully understand the risk?
• Is the source reliable and trustworthy?
• Is the amount of data sufficient to adequately analyze the risk?
• What is the accuracy and quality of the data?
• Are there risks that require further monitoring? Should they be placed in the risk register for
scrutiny?
• Determine the organization’s risk threshold for this project.
• Analyze the assumptions identified during risk identification as potential risks against the validity
of the assumption and the impact on the project if false. Use the help of an expert if necessary.
• Analyze the probability and impact of each identified risk using well-defined probability and
impact scales.
• Determine the risk factor scores using a probability and impact risk matrix.
• Prioritize the risks according to the risk management plan. Identify risks that require further
analysis.
• Determine the overall risk for the project and compare it with the organization risk threshold.
• Document all changes to the risk register.
ACTIVITY 9-3
Performing Qualitative Risk Analysis
Scenario
After brainstorming the potential risks for the GCCG e-Banking Portal, it is now time to analyze the
risks qualitatively and document them in the Risk Register document. Right now, you are reviewing
the risks associated with obtaining external consultants. Use the information in the following tables
to complete this activity.
1. You need to enter the risk factors into the risk register for obtaining an
external consultant. Using the GCCG Risk Event Impact Scale and the
Probability Rating tables, use your judgment to assign a risk probability rating
for each task.
A: The probability ratings are based on your judgment, and there is no correct answer.
2. For each risk that is identified, provide an impact rating for the work activity.
A: The impact ratings are determined by your informed opinions, and there is no correct answer.
3. Given your own analysis, which of the risks do you feel should receive the
highest priority for this project?
○ The IT department may not approve the immediate web development software upgrade request.
○ RFPs do not meet GCCG specifications for dates and costs.
○ Temporary loss of a team member.
○ Change in organizational requirements to use external consultants.
TOPIC D
Perform Quantitative Risk Analysis
You performed a qualitative risk analysis for your project. Now you can determine the extent of the
risk exposure to your entire project. In this topic, you will perform quantitative risk analysis.
Taking advantage of opportunities can often mean turning a negative outcome into a positive one.
By performing a quantitative risk analysis, you can take steps to maximize the positive consequences
of the opportunities facing your project.
Quantitative Risk Analysis

Quantitative risk analysis is a technique that is used to assess the risk exposure events to overall
project objectives and determine the confidence levels of achieving the project objectives.
Quantifying risk can help you identify time and cost contingencies of a project. It further refines and
enhances the prioritization and scoring of risks produced during qualitative analysis.
In most everyday project management scenarios, conducting qualitative risk analysis is adequate to
meet the project manager's purposes; only in sophisticated, mature project management
environments is there much additional value added by conducting quantitative risk analysis.
Example: Quantitative Risk Analysis for the Supply-Chain Management Software

Project
The project team on the Supply-Chain Management Software project identifies process data for a
statistical analysis using a Monte Carlo simulation to determine the confidence level that the project
will be completed on time and within the budget. The team identifies critical project parameters,
which affect the project schedule. The team further determines project success rate and makes
decisions about viable project alternatives taking into account the risks within the project.
Quantitative Risk Analysis Update Components

Several quantitative risk analysis update components are available.
Probabilistic analysis of the Once risks are qualitatively and quantitatively analyzed, the project
project team should be able to forecast the possible completion dates and
costs and provide a level of confidence for each.
Probability of achieving the Using quantitative risk analysis, the project team can estimate the
cost and time objectives likelihood of achieving the project objectives under the current plan
and with the current knowledge of the project risks.
Prioritized list of quantified Identified risks are prioritized according to the threat they pose or
risks the opportunity they present to the project. This prioritized list
includes a measure of the impact of each identified risk.
Trends in quantitative risk Repeating the quantitative risk analysis allows the project's risk
analysis results management team to analyze the trends and make adjustments as
necessary. Information on project schedule, cost, quality, and
performance gained when performing quantitative risk analysis will
help the team to prepare a quantitative risk analysis report.
Lesson 9: Planning for Risk | Topic D
Project Risk Ranking

Project risk ranking is the overall risk ranking for producing the final deliverable of the product or
service of the project. It allows for comparisons among other projects, assisting in project initiation,
budget and resource allocation, and other decisions.
In the following example, the project risk management team created a probability and impact matrix
that illustrates the relative position of threats as identified in the qualitative risk analysis. The team
now calculates the percent exposure of the top four risks.
Qualitative risk analysis already suggested the descending order of risks. The following table displays
the total exposure of all the risks for the project as 3.22 and the exposure of the top four risks as
2.37. Considering the top four risks, the team determines the exposure to these risks as 73.6%.
Figure 9-13: A probability and impact matrix and risk exposure table for the risk ranking
example.
Quantitative Analysis Methods

Quantitative analysis methods allow project managers to consistently determine the probability
and impact of each risk.
Method Description
Sensitivity analysis Places a value on the effect of changing a single variable within a
project by analyzing that effect on the project plan.
Decision tree analysis Factors both probability and impact for each variable, indicating the
decision providing the greatest expected value when all uncertain
implications and subsequent decisions are quantified.
Simulation Uses models that calculate potential impact of events on the project,
based on random input values.
Expected Monetary Value Assesses the average outcome of various unknown scenarios.
(EMV) analysis
Note: EMV and decision tree analysis are commonly used together to arrive at a final decision.
Sensitivity Analysis
Sensitivity analysis is a method of assessing the relative effect of changing a variable in the project
to gain an insight into possible outcomes of one or more potential courses of action.
Sensitivity analysis is probably the simplest method of analyzing the impact of a potential risk and its
results are easy for project stakeholders to understand. However, it does not lend itself well to
assessing combinations of risks and how they may affect a project. Furthermore, the sensitivity
diagram does not provide an indication of anticipated probability of occurrence of the risk event.
Often, sensitivity analysis is performed independently on a number of variables. When displayed on
a single graph or sensitivity diagram, the results allow you to compare which variables have the
highest likely impact on project performance. Typically, it is only performed for variables that are
likely to have a major impact on project performance in terms of cost, time, or economic return.
Decision Tree Analysis

Decision tree analysis is an assessment of the data obtained using the decision tree method to
evaluate various possible outcomes. Decision trees allow decision makers to evaluate both the
probability and impact for each branch of every decision under consideration, making it a useful tool
for risk analysis. Solving the decision tree indicates the decision that will provide the greatest
expected value when all the uncertain implications, costs, rewards, and subsequent decisions are
quantified.
Simulation
Simulation is a technique that uses computer models and estimates of risk to translate uncertainties
at a detailed level into their potential impact on project objectives. For schedule development,
simulation involves calculating multiple project duration with varying sets of assumptions regarding
project activities.
Example: Using Simulation for Planning a Multimedia Campaign

You are planning a multimedia campaign for a client. Your team is divided as to which printing
contractor to use. Printer A has handled similar projects for you in the past. However, they are
poorly staffed and turnaround time can be slow. Printer B is a large company with modern
equipment and fast turnaround time. However, their remote location will add at least a day for each
shipment of the product.
Your team simulates the two project activities duration using each of the printers. Your simulation
takes into account factors such as previous turnaround times for similar projects, realistic shipping
times, and maximum production capabilities. Based on your simulation results, you decide to stick
with Printer A.
Monte Carlo Analysis

Monte Carlo analysis is a simulation technique used by project managers to make predictions
about the statistical distribution of activity durations or cost estimates for a project. It is a form of
simulation, where the project model is run many times with input values (durations or costs) chosen
at random for each iteration from the duration or cost probability distributions. This analysis does
not produce a single result, but calculates a range of possible results.
In more general business terms, Monte Carlo refers to not one single analysis method but to a wide
class of techniques, mostly making use of sophisticated computers and inputs of random numbers,
probabilities, and algorithms. It has a wide range of applications in many fields, including finance
and engineering; because it works effectively with large inputs of numbers, it is well suited for
complex project management problems in which more than a few inputs such as costs, activity, and
duration are unknown.
Example: Monte Carlo Analysis for a Project

Stakeholders asked George Allen, a project manager, to estimate how long it will take to complete a
project involving three tasks and an inexperienced team. The first task is scheduled to take 30 days,
the second task is scheduled to take 60 days, and the third task is scheduled to take 90 days. But with
inexperienced resources, the tasks' durations could take more time. Using a software application,
George will run a Monte Carlo simulation analysis using repeated (potentially thousands of) random
duration values for each task. The result of these calculations will be a statistical distribution of
durations for the project. From this distribution, George estimates that this project has a 40%
probability of being completed within 170 days, a 60% probability of being completed within 180
days, and an 80% probability of being completed within 200 days.
EMV Analysis
Expected Monetary Value (EMV) analysis is a method of calculating the average outcome when
the future is uncertain. Opportunities will have positive values and threats will have negative values.
EMV is found by multiplying the monetary value of a possible outcome by the probability it will
occur. This is done for all possible outcomes and their figures are added together. The sum is the
EMV for that scenario.
This technique is used in decision tree analysis; EMV must be calculated in order for the analysis to
find the best outcome. The best outcome is the lowest combination of cost and EMV.
Guidelines for Performing Quantitative Risk Analysis

Performing quantitative risk analysis enables the project team to prioritize risks according to the
threat they pose or the opportunity they present to the project. The prioritized list can be used to
develop an effective response plan for each risk. To effectively perform quantitative risk analysis,
• Review the risk, cost, and schedule management plans to identify project risks.
• Begin with your original estimate of time or cost. Break out the various components of the
estimate into manageable chunks. Determine the variable that you wish to investigate and
identify its likely range of variation.
• Calculate and assess the impact of changing the range of results on the overall project estimate
for each value in the range.
• Consult historical information, such as similar completed projects, studies of similar projects by
risk specialists, and risk databases for information, that may be useful for quantitative risk
analysis on your project.
• Use the appropriate interviewing technique and obtain probability distributions from
stakeholders and subject matter experts.
• If expertise resides with more than one person and the problem does not lend itself to precise
analytical techniques but can benefit from subjective judgments on a collective basis, consider
using the Delphi technique.
• Consider using the direct method when time or resource constraints do not allow for more
complex, resource-intensive methods and questions can be phrased clearly and concisely.
• If your expert has a solid understanding of probability concepts and is familiar with PDFs,
consider using the diagrammatic method.
• Depict the distributions in a PDF.
• Perform a sensitivity analysis to determine which risks have the most potential impact on the
project by examining the extent to which the uncertainty of each element affects the objective
being examined if all other uncertain elements are held at their baseline values. Use the decision
tree analysis technique to examine the implications of choosing alternatives by incorporating the
probabilities of risks and the costs or rewards of each logical path of events and future decisions.
• Conduct a project simulation using a model to translate uncertainties at a detailed level into their
potential impact on project objectives at the total project level. Prioritize the quantified risks
according to the threat they pose or the opportunity they present to the project objectives.
Include a measure of each risk's impact. Document all changes to the risk register.
• Update the risk register, project management plan, and other project documents.
ACTIVITY 9-4
Performing Quantitative Risk Analysis
Scenario
The GCCG e-Banking Portal project requires an external consultant. Your team assessed each
consultant's rate of success in providing advice and appropriate recommendations within the
required time frame and within budget, and you plotted the results as shown.
1. Which analysis technique was used in the image to determine the most cost-
effective choice of an external consultant?
○ Decision tree
○ Simulation
○ Delphi
○ Diagrammatic
2. What is the probability that Vendor 1 will complete the project on time?
○ 60 percent
○ 50 percent
○ 40 percent
○ 70 percent
3. What is the probability that Vendor 2 will run over the allotted time for the
project?
○ 50 percent
○ 60 percent
○ 70 percent
○ 40 percent
4. What is Vendor 3's expected monetary value?

○ $10,300
○ $1,700
○ $0
○ $200
5. Your team combines each vendor's EMV and costs. You want to choose the
vendor bid with the most economic advantage for GCCG. Based on this
number, which vendor should your team choose?
○ Vendor 1
○ Vendor 2
○ Vendor 3
○ Vendor 1 and Vendor 3
TOPIC E
Develop a Risk Response Plan
You performed a qualitative or quantitative risk analysis for your project. Now, you need to decide
how you are going to address these project risks. In this topic, you will perform risk response
planning, the final risk planning component process, by developing a risk response plan.
Whether you realize it or not, each planned response stems from an identified risk. Developing a
risk response plan provides insurance for your project because you are taking steps to ensure that
each possible scenario has an action plan.
Negative Risk Strategies

Negative risk strategies specify how to deal with risk scenarios that have a possible negative
impact on the project.
Strategy Description
Risk avoidance Involves changing the project plan to prevent a potentially detrimental
risk condition or event from happening. One way to eliminate a risk is to
reduce or change the scope of the project in an attempt to avoid high-risk
activities. The scope change could involve the project requirements or
specifications, or it can mean changing the approach to meeting the
requirements or specifications.
Risk transference Involves shifting the impact of a risk event and ownership of the risk
response to a third party. This strategy is used in connection with
financial risk exposure and most often involves payment of a risk
premium to the party assuming the risk.
Risk mitigation Attempts to reduce the probability or impact of a potential risk event to
an acceptable level. Mitigation may involve implementing a new course of
action in an effort to reduce the problem or changing the current
conditions so that the probability of the risk occurring is reduced.
Sometimes, when reducing the probability is not possible, the focus must
be on reducing the consequences of the risk event.
Risk acceptance Involves accepting that a risk exists. The acceptance may be passive or
active. Active acceptance indicates that a plan is ready for execution if the
risk occurs. Passive acceptance indicates that no action is planned if the
risk occurs and whatever action is suitable will be executed on an
extempore basis.
Positive Risk Strategies

Positive risk strategies address how to deal with risk scenarios that have a possible positive impact
on the project.
Risk exploitation Often used when a project team wants to make sure that a positive risk is
fully realized. This is often done by hiring the best experts in a field or
ensuring that the most technologically advanced resources are available to
the project team.
Lesson 9: Planning for Risk | Topic E
Risk sharing Entails partnering with another party in an effort to give your team the
best chance of seizing the opportunity. Joint ventures are a common
example of risk sharing.
Risk enhancement Attempts to increase the probability that an opportunity will occur. This
is done by focusing on the trigger conditions of the opportunity and
trying to optimize their chances for occurrence.
Risk acceptance Involves accepting the risk and actively responding to it as it comes, but
not through pursuit.
Contingent Response Strategies

A contingent response strategy is a risk response strategy developed in advance, before things go
wrong; it is meant to be used if and when identified risks become reality. An effective contingent
response strategy allows a project manager to react quickly and appropriately to the risk event,
mitigating its negative impact or increasing its potential benefits. A contingent response strategy may
include a fallback plan, which is implemented if the initial response strategy is ineffective in
responding to the risk event. A contingent response strategy is also called a contingency plan.
Example: Contingent Response Strategy for an Outdoor Event

A rain date is a classic example of a contingent response strategy. For an outdoor event, such as a
company picnic, that could be spoiled by inclement weather, the project manager can announce in
advance the contingent response strategy: in case of rain, the picnic will be postponed by one week.
Contingency Reserves
A contingency reserve is a predetermined amount of additional time, money, or resources set aside
in advance to be used to further the project's objectives in the event that unknown risks or accepted
known risks become reality. Contingency reserves cover risk events that are not accounted for in the
project’s schedule and cost baselines. The amount of reserve is determined by the potential impact
of the risk, but should include enough to implement a contingency plan and a buffer for dealing
with unidentified risks.
Example: Contingency Reserve for a Trade Show

A project manager in charge of company participation at a trade show may solicit help in the form
of employees willing to participate. His contingency reserve will take the form of human resources;
he could solicit more volunteers than he expects he will need. In the event that some employees are
not able to participate at the last minute, he will have a reserve of other employees to call upon.
Risk-Related Contract Decisions

Risk-related contract decisions are risk response approaches agreed upon by both parties when
procuring materials from a third party. These decisions are made when:
• Planning risk responses for the project.
• Sharing or transferring part or all of the risk (opportunity or threat, respectively).
• Enhancing or mitigating part or all of the opportunity or threat, respectively, faced by an
organization.
Some of the risk-related contract decisions include agreements for insurance, bonding, services,
Letter of Credit (LoC), bank guarantee, and other items as appropriate for the project.
Example: Risk Response Plan for a New Product

You and your team have been asked to create a new line of exercise equipment. Your project team
reviews all documentation for risks. From these documents, the team identifies three risks that need
risk response planning. Because the first risk deals with loss of time due to possible worker injuries,
the team decides to employ risk transference, paying a premium for insurance.
The second risk involves a scenario in which the new products could be first to market. To address
this opportunity, the team settles on risk exploitation by hiring more staff to ensure the positive
outcome. After a lengthy review, the team is unable to determine a course of action for the final risk,
which is the possibility that a key patent may not be approved in time for production. For this risk,
the team develops a contingency plan and the team then documents all changes in the risk register,
risk management plan, and project plan.
Guidelines for Developing a Risk Response Plan

An effective risk response plan describes the response strategies for each identified risk. The
selected response strategies should take advantage of opportunities and reduce the probability and
impact of threats to project objectives. You can follow these guidelines to develop an effective risk
response plan:
• Examine each identified risk to determine its causes and how it may affect the project objectives.
Brainstorm possible strategies for each risk to identify which project stakeholders can be
assigned responsibility of a risk. Involve those people in your risk response planning.
• Choose the response strategy that is most likely to be effective for each identified risk. Ensure
that the chosen risk response strategies are:
• Enough to bring the risk to a value below the organization's threshold.
• Appropriate to the severity of the risk.
• Cost effective.
• Timely enough to be successful.
• Realistic within the context of the project.
• Agreed to by all parties involved.
• Owned by a responsible person.
• If you are unable to bring a risk's rating below the organization's risk threshold, ask your sponsor
for help. Develop specific actions for implementing the chosen strategy.
• Identify backup strategies for risks with high risk factor scores.
• Determine the amount of contingency reserves necessary to deal with accepted risks. Consider
how much the contingency plan will cost and how much time the contingency plan will add to
the schedule.
• Determine how much of a contingency reserve you should set aside for unknown risks (ones that
have not been identified).
• Consult the risk management plan for the description of the content and format of the risk
response plan. Include the following elements in your risk response plan:
• A description of the identified risks along with the area of the project affected (i.e., the WBS
element).
• Risk owners and assigned responsibilities.
• Qualitative and quantitative risk analysis results.
• Response strategies selected and the specific actions for implementing the strategies.
• The level of residual risk expected to remain after the response strategies are implemented.
• The budget and schedule for responses.
• Contingency plans and fallback plans for all accepted risks with high risk values.
• Incorporate the risk response plan into the overall project plan so that the strategies can be
implemented and monitored. As the project progresses through the life cycle, examine trends in
the qualitative and quantitative analyses results that may guide your response strategies.
ACTIVITY 9-5
Developing a Risk Response Plan
Scenario
You are now ready to develop a risk response plan based on the following risks that you and your
team have identified in the GCCG e-Banking Portal project:
• A potential project software upgrade. IT approval may occur during the project life cycle.
• Change in organizational requirements. Vicky Morris, the PMO Director, may resign.
• External consultant illness.
1. The first risk has possible positive outcomes. Which risk response strategy
should you employ?
○ Risk avoidance
○ Risk enhancement
○ Risk mitigation
○ Risk sharing
2. What are some responses you can plan for the potential risk of a project
software upgrade during the project life cycle?
A: If the software meets the approval of the IT department, you may want to include a provision to
obtain a beta version of the software. You may choose to have a pilot group work with the
software.
3. The change in organizational requirements due to the resignation of Vicky

Morris has possible negative outcomes to the project, but there is no way to
avoid this scenario completely. Which risk response strategy should you
employ?
○ Risk avoidance
○ Risk mitigation
○ Risk exploitation
4. You determine that an external consultant illness cannot be avoided. Which

risk response strategy should you employ?
○ Risk acceptance without a contingency plan
○ Risk acceptance with a contingency plan
5. What are some responses you can plan for the potential risk of an external
consultant illness during the project?
A: Answers will vary, but one possibility is to include the availability of a backup consultant in the
vendor contract.
Summary
In this lesson, you analyzed risks and planned risk responses. You created a risk management plan
that describes how project risk management activities are structured and performed throughout the
project. By taking a proactive approach during risk planning, you arm yourself with the necessary
information required to manage potential risks to your projects and ensure the best possible
environment for success.
How could your organization benefit from comprehensive risk planning?
A: Answers will vary, but may include: a disciplined approach on risk planning is absolutely necessary for
any organization. Early identification of project risks through various tools and techniques and
implementing immediate corrective actions will increase the probability of project success and reduce
possibilities of failure. It is the responsibility of the project manager to proactively identify potential
risks before they occur and implement appropriate risk response measures.
Which tools and techniques will you use to effectively perform qualitative risk
analysis for future projects you manage?
A: Answers will vary, but may include: risk probability and impact assessment, probability and impact
matrix, risk data quality assessment, risk categorization, risk urgency assessment, and expert
judgment.
Lesson 9: Planning for Risk |
10 Planning Project
Procurements
Lesson Introduction
You planned for project risk and are almost ready to transition your project to the executing
process group. But before you can do that, you need to identify ways of securing external
resources when necessary.
Competitive pressure and increased time-to-market force many companies to look outside
their organizations to fill resource gaps and gain a competitive advantage. By clearly defining
your expectations and requirements, you enhance the chances of finding qualified,
responsive suppliers who can help you achieve a successful outcome for your project. In
this lesson, you will plan project procurements and create a procurement management plan.
Lesson Objectives
• Collect the input needed to create a procurement management plan.
• Prepare a project procurement management plan.
• Prepare procurement documents.
TOPIC A
Collect Project Procurement Inputs
Before you transition your project to the executing process group, you need to plan for the project
procurements based on the resource requirements that you identified. In this topic, you will plan
project procurements.
Before you commence with the execution of a project, the project purchasing requirements and
decisions are to be identified and documented. This requires the identification of resources that
need to be procured from outside the project organization and an approach to identify potential
sellers for the project. A good procurement plan ensures that risks and changes to the project
schedule are minimal.
Procurement Management
Procurement management is the management of processes involved in acquiring the necessary
products and services from outside the project team. Procurements are managed by constructing
and implementing a procurement management plan, which specifies the procurements that will be
used, determines the process for obtaining and evaluating bids, mandates standardized procurement
documents that must be used, and describes how multiple providers will be managed.
Procurement management includes the management of project contracts and change control
processes developed to administer project procurements. When managing contracts, a project
manager ensures compliance with the terms and conditions stipulated in the contract and
documents any change in the terms that are made to the contract during execution.
Note: Not all organizations have a procurement department; however, there might be someone
responsible for procurements. As the project manager, it's important for you to know how
procurements are managed in your organization.
Outsourcing
Outsourcing refers to moving beyond the organization to secure services and expertise from an
outside source on a contract or short-term basis; it is done for core work that has traditionally been
done within the organization. Outsourcing is used frequently because it allows businesses to focus
more on their core competencies. On the other hand, many businesses are emphasizing that work
should be kept in-house whenever possible, in an effort to maintain stricter quality controls and
security measures. As a project manager, you will need to work within the expectations and
constraints that result from either situation.
Example: Outsourcing by a Clothing Manufacturer

A U.S. clothing manufacturer that has been producing its own buttons for decades may find that it
is more cost-effective to move this part of its operations to an outside source. By outsourcing the
button production to a vendor in a different locale, the company may realize significant cost savings
while focusing on its core operations.
Make-or-Buy Analysis
Make-or-buy analysis is a technique that is used to analyze various parameters, such as cost of
making versus buying, capacity (based on size) of making, legal eligibility of making, and technical
feasibility of making, and determine whether it will be better to produce a product or service in-
house or procure it from an outside seller. Make-or-buy decisions can significantly impact project
Lesson 10: Planning Project Procurements | Topic A
time, cost, and quality. In the case of a buy decision, you must also consider if the product needs to
be purchased, leased, or rented.
Example: Make-or-Buy Analysis for Developing Training Materials

A multimedia company was required to deliver several days of training to a client on the operation
of its flagship product. The company's project team had to decide whether to increase staff in order
to develop the training materials in-house or to outsource the work to a seller. The company's
budget constraints and relative inexperience made it cost-effective to contract with an experienced
outside firm.
Factors in Make-or-Buy Decisions

When making a make-or-buy decision, it is important to consider several factors.
Factor Description
Impact Consider the impact on cost, time, or quality. For instance, if current
personnel must be retrained for services requiring a new skill set, it may be
less expensive to outsource those services.
Ongoing need If the organization will continue to need a specific skill set—even for
future, unrelated projects—it may be a worthwhile investment to train
current personnel to perform that service.
Learning curve While it may make financial sense to develop an in-house solution, there
may not be enough time to train personnel and implement the necessary
policies and equipment to produce that solution.
Cost-effectiveness If the required resources are readily available internally, organizations will
usually use them. However, if the project involves technology, skills,
materials, or resources that are beyond the organization's capabilities, it may
be cost-effective to hire outside help.
The Lease, Rent, or Buy Decision

The lease, rent, or buy decision refers to business analysis that determines the most cost-effective
way to procure the necessary equipment for a project if purchasing is not an option. Such a decision
is primarily based on financial analysis.
Example: Lease, Rent, or Buy Decisions for Acquiring a High-Speed Copier

A project requires a high-speed copier with collating capabilities. If it is a small, one-time project and
the equipment is very expensive and prone to breaking, it may be cost-effective to lease the
equipment and take advantage of a service agreement. But if the project is ongoing over a period of
months and service needs are not anticipated, it may be more cost-effective to rent a copier for the
duration of the project. For a long-term project requiring extensive copying resources, it may be
more cost-effective to purchase the equipment.
Market Research
In addition to the formal procurement documents, project managers should use whatever tools are
available to them to discover, learn about, and research potential vendors. Some of the available
tools that might offer useful information include:
• Vendor websites
• Vendor knowledge bases
• Industry analyst reports
• Consumer buying guides

• Internal experts
Example: Enterprise Solutions from Deltek

Headquartered in Virginia, Deltek (www.deltek.com) is a market research firm that provides
market research, buyer guides, and solutions to assist organizations in outsourcing. One buyer guide
offers suggestions on selection criteria, which include reputation and past performance, industry
knowledge, strategic partnership, and the ability to meet needs. Input's research shows that most
contracts include provisions to safeguard against unsatisfactory partnering, but most companies
hesitate to exercise the provisions. Buyers should look for a supplier with a proven record of
excellence and reputation for quality.
Teaming Agreements
A teaming agreement is a legal contractual agreement between two or more parties to form a joint
venture or any other arrangement as defined by the parties to meet the requirements of a business
opportunity. The parties can be internal or external to the organization executing the project. When
a teaming agreement is created for a project, it significantly impacts the planning processes for the
project and predefines issues such as the scope of work and competition requirements.
Example: GCCG's Agreement with Develetech Industries

GCCG and Develetech Industries have been associated partners for the last four years. The
agreement insists that GCCG will have to procure the hardware from Develetech Industries for any
implementation-related and turn-key projects executed by GCCG in the North American region.
However, this arrangement is not obligatory when the implementation is done in any other area.
Specifications
Specifications are descriptions of the work to be done or the service or product to be provided;
they define the requirements that must be met in exacting detail. These descriptions can be in the
form of words, pictures, or diagrams. Specifications may relate to a product's design, performance,
or functionality.
Guidelines for Collecting Procurement Inputs
Effectively planning project procurements helps document the project purchasing decisions, specify
the approach to be used in project procurements, identify potential sellers for the project, and add
this information to the procurement management plan. To generate an effective procurement
management plan, follow these guidelines:
• Identify the project needs that can be fulfilled by acquiring products, services, or results.
Determine:
• What is to be acquired.
• How to acquire.
• How much to acquire.
• When to acquire.
• Study the various input documents required for planning procurements to determine information
related to the procurement requirements. The documents include:
• The project scope baseline.
• The requirements documentation.
• Existing teaming agreements.

• Project risk registers.
• Risk-related contract decisions.
• Activity resource requirements.
• The project schedule.
• Activity cost estimates.
• The cost performance baseline.
• Appropriate enterprise environmental factors.
• Existing organizational process assets.
• Consult technical experts to define specifications for the project needs clearly, concisely, and
completely.
• Perform a make-or-buy analysis to determine whether particular work can be accomplished by
the project team or must be procured from outside the organization. If procuring from the
outside, will it be something that you need to lease, rent, or buy?
• Determine the contract types to be used for specific procurement needs of the project.
• Document the procurement information that was collected to use it in the development of the
procurement management plan.
ACTIVITY 10-1
Evaluating Procurement Inputs
Scenario
During the development of the GCCG e-Banking Portal project charter and project scope
statements, it had been determined that outside sellers will perform software, hardware, and network
installation due to lack of expertise within the organization. To prepare for your meeting with David
Anderson, GCCG’s procurement manager, you need to gather and evaluate any available
procurement inputs.
1. Which of GCCG's project documents contain information about the time frame
for each project deliverable?
○ The scope baseline
○ The project schedule
○ The requirements document
○ Activity resource requirements
2. Which of the following documents include details of the agreements that are
prepared to specify each party's responsibility for specific risks in the project?
○ Risk-related contract decisions
○ Teaming agreements
○ Enterprise environmental factors
○ Organizational process assets
3. Which of the following documents include information on the specific activity

resource needs of the project?
4. Which of the following documents address issues that can influence the
process of planning procurements such as market conditions and supplier
information?
5. Which of the following documents are contracts between the organization and
one or more external entities to work together?
6. Which of the following documents include factors that can influence the
process of planning procurements such as policies, procedures, guidelines,
and management systems?
TOPIC B
Prepare a Procurement Management Plan
You have collected the necessary project input documents and are now ready to create the plan for
managing the project procurement. In this topic, you will prepare a procurement management plan.
Procurement Management Plan

After gathering all of the project procurement inputs, the next step is to assemble the information
into a procurement management plan, which outlines the following:
• Whether or not to procure
• What to procure
• How to procure
• How much to procure
• When to procure
You must understand the need to procure products or services and the input required for
procurement planning. You must clearly define the scope of the project, the products, market
conditions, and constraints and assumptions before undertaking procurement planning.
Example: Creating a Procurement Management Plan for a Warehouse

The project manager of GCCG's Warehouse Management Software project, Mark Anderson, is
creating the procurement management plan for the project. Mark discusses with stakeholders the
various project requirements that include the warehouse management software, related computer
hardware, networking, database, and project staffing. He studies the project scope baseline to
determine the scope of the warehouse management software implementation within GCCG. He
goes through the requirements documentation for each of the project requirements.
Mark involves Brian Wells, the IT Consultant of GCCG, to draw up the technical specifications of
the project requirements. Further, discussions with Brian indicate that the warehouse management
software and other requirements of this project have to be procured from outside the organization
because the current infrastructure at GCCG does not support the requirements of this project.
Based on the procurement information collected, Mark prepares the procurement management plan
for GCCG's Warehouse Management Software project.
Source Selection Criteria

Source selection criteria are the standards used to rate or score proposals, quotes, or bids and
form a part of the procurement solicitation documents. Criteria can be objective or subjective.
• Objective criteria can be readily demonstrated, specific, and measured.
• Subjective criteria are open to different interpretations.
The following table provides examples of objective and subjective criteria.
Objective Criteria Subjective Criteria
Ph.D. chemist with at least five years of Experienced laboratory chemist with strong analytical
experience in chromatographic research. skills.
80,000–90,000 square-foot storage area Ample square-foot storage area near Dallas-Fort
within three miles of the Dallas-Fort Worth Airport.
Worth Airport.
Lesson 10: Planning Project Procurements | Topic B
Source selection criteria can be set in different ways.
Source Selection Criteria Description
Understanding of need Does the seller's proposal effectively address the procurement
SOW while demonstrating a clear understanding of the needs?
Overall or life-cycle cost Does the selected seller produce the lowest total cost of
ownership, which includes the purchase cost and operating
cost?
Technical capability Does the seller have or is the seller expected to acquire the
technical skills and knowledge needed for the project?
Management approach Does the seller have or can the seller reasonably develop the
management processes and procedures to ensure a successful
project?
Technical approach Do the seller's proposed technical methodologies, techniques,
solutions, and services meet the project requirements?
Warranty Does the seller provide a warranty for the final product and for
what duration?
Financial capacity Does the seller have or is the seller expected to obtain the
necessary financial production capacity and interest resources?
Production capacity and interest Does the seller have the capacity and interest to meet the
project requirements?
Business size and type Does the seller's company meet a specific category of business
defined by the buyer, or established by a governmental agency,
and included as a condition in the contract? Categories could
include small, women-owned, or disadvantaged small
businesses.
Past performance of sellers Does the company have past experience with selected sellers?
References Does the seller provide references from previous customers
verifying the seller's work experience and compliance with
contractual requirements?
Intellectual property rights Are intellectual property rights established by the seller in work
processes or services to be used for the project?
Proprietary rights Are proprietary rights ensured by the seller in the work
processes or services to be used for the project?
Guidelines for Preparing a Procurement Management Plan

To generate an effective procurement management plan, follow these guidelines:
• Identify the project needs that can be fulfilled by acquiring products, services, or results.
Determine:
• What is to be acquired.
• How to acquire.
• How much to acquire.
• When to acquire.
• Study the various input documents required for planning procurements to determine information
related to the procurement requirements. The documents include:
• The project scope baseline.
• The requirements documentation.

• Existing teaming agreements.
• Project risk registers.
• Risk-related contract decisions.
• Activity resource requirements.
• The project schedule.
• Activity cost estimates.
• The cost performance baseline.
• Appropriate enterprise environmental factors.
• Existing organizational process assets.
• Consult technical experts to define specifications for the project needs clearly, concisely, and
completely.
• Perform a make-or-buy analysis to determine whether particular work can be accomplished by
the project team or must be procured from outside the organization.
• Determine the contract types to be used for specific procurement needs of the project.
• Document the procurement information you identified so far in the procurement management
plan.
• After the procurement management plan is created, you will also generate other relevant outputs
of the procurement process, including:
• The procurement statements of work.
• Make-or-buy decisions.
• Procurement documents.
• Source selection criteria.
• Change requests.
Note: Some of the information developed in generating these outputs will be used to
finalize the procurement management plan.
ACTIVITY 10-2
Preparing a Procurement Management Plan
Data File
C:\095016Data\Planning Project Procurements\Procurement Management Plan.docx
Scenario
You need to review the GCCG Procurement Management Plan that describes how the procurement
processes will be managed from developing procurement documents through contract closure.
Before you meet David Anderson, GCCG’s procurement manager, to discuss the procurement
requirements, you want to ensure that the procurement management plan includes suitable guidance
for successful project procurement.
1. To review the input that was previously collected, open C:\095016Data

\Planning Project Procurements\Procurement Management Plan.docx.
2. In GCCG's Procurement Management Plan document, who is authorized by

GCCG to enter a prescribed contract with the service provider?
○ The project sponsor
○ The project manager
○ The procurement manager
○ The operations manager
3. In GCCG's Procurement Management Plan document, which of these job

tasks are defined for the solicitation process of the project? Select all that
apply.
☐ Characteristics of project requirements are to be documented in a procurement SOW.
☐ Necessary electronic and paper documentation and source files are to be provided.
☐ An RFP is to be sent to prospective vendors.
☐ Evaluation criteria are to be determined to evaluate proposals from vendors.
4. Which of the following proposed criterion for evaluating vendors is subjective?

○ The vendor must have a minimum of four years of experience in banking hardware and software
business.
○ The vendor must be flexible about the changes to be made to the processes whenever necessary.
○ The vendor must have a minimum of two banking-related clients.
○ The vendor must receive an 8 out of 10 approval rating from all provided references.
5. Which section in the Procurement Management Plan document refers to the

parameters to choose vendors?
○ Contract type
○ Procurement description
○ Source selection
○ Procurement responsibility
TOPIC C
Prepare Procurement Documents
After gathering input about procurement resources and developing a procurement management
plan, you need to prepare the necessary procurement documents.
The Procurement SOW

The procurement SOW is a detailed narrative description of the resources, goods, or services that
are being sought from external sources to fulfill a project's requirements. It is distributed to potential
sellers, who will use it to evaluate their capability to perform the work or provide the services. In
addition, the SOW will serve as a basis for developing the procurement documents during the
solicitation process. Information in the project scope baseline is used to create the procurement
SOW. The procurement SOW goes through multiple rounds of reviews and fixes until the contract
award is signed.
An effective procurement SOW describes the work being procured in sufficient detail so that
potential vendors can evaluate their capability to perform this work. The procurement SOW also
serves as a basis for developing the procurement documents during the solicitation process.
Note: Even though a procurement SOW is created for each procurement item, multiple
products or services can be grouped and specified in one procurement SOW.
To prepare a procurement SOW, you will need to identify procurement resources with the necessary
expertise. If a formal contracting group or department within your organization is not available to
support you in your procurement efforts, you will need to obtain those resources and expertise from
within your project team. Some of the skills and expertise required for a full-blown procurement
effort include:
• Supplier base and supplier qualification
• Contracting expertise
• Negotiating
• Legal services
• Knowledge of company policies and forms
Lesson 10: Planning Project Procurements | Topic C
Figure 10-1: A procurement SOW for the GCCG e-Banking Portal project.
Example: Preparing a Procurement SOW to Hold a Public Carnival

The City of Butterfield Visitors' Association decided to hold a public carnival to increase tourism to
Butterfield. To create a procurement SOW for this project, the project manager, Rachel, enlisted the
help of her organization's chief negotiator and a lawyer. She also hired a consultant to define the
specifications of the various carnival rides and attractions that will be utilized.
The organization had no existing preferred SOW format, so the project team researched SOW's
used by other companies for similar events. The SOW is laid out in a logical sequence and uses
consistent terminology throughout.
The statement also defines acceptable service criteria and includes key elements such as a schedule
and acceptance standards. Before sending this SOW to prospective bidders, the project team had the
document reviewed and validated by an independent legal firm.
Guidelines for Preparing a Procurement SOW

To prepare an effective procurement SOW, follow these guidelines:
• Review the product description to ensure that you fully understand the scope of the work being
procured.
• Consult technical experts to define specifications clearly, concisely, and completely.
• Use a mandated procurement SOW format, if your organization has one. If there is no standard
procurement SOW format, modify one from a previous, similar project.
• Present the information in a logical sequence.
• Use consistent terminology and level of detail throughout the procurement SOW.
• Determine whether any collateral services will be required of the vendor as a part of the contract:
• What are the vendor's performance reporting requirements?
• Will the vendor be required to provide any post project operational support?
• Determine the acceptable criteria for the product or service.
• Include the following key elements in the procurement SOW:
• Clear identification of the project name and deliverable name or identification number.
• A clear description of the deliverable.
• When, where, and how delivery is required.
• Specifications to which the deliverable must be produced and methods for ensuring that the
specifications have been met.
• Acceptance standards for the deliverable.
• Documentation requirements the seller must complete as part of the bidding process (i.e.,
references, compliance documents, confidentiality agreements, proof of insurance,
contractor's license number, and so on).
• Description of any required collateral services that will support the main work activities
provided in the contract.
• Any additional instructions the prospective seller will need to bid on the item.
• Have a knowledgeable third-party review the procurement SOW to ensure that it is complete,
correct, and understandable.
• Document your make-or-buy decisions.
Procurement Documents
Procurement documents are the documents that are submitted to prospective sellers and service
providers to solicit their proposals for the work needed. Many organizations use procurement
document terms interchangeably. It is important to be sure that you understand the terms and
definitions used by your organization.
All procurement documents must be written to facilitate accurate and complete responses from
prospective sellers. The documents should include background information about the organization
and the project, the relevant statement of work, a schedule, a description of the desired form of
response, evaluation criteria, pricing forms, and any required contractual provisions. They should
also be comprehensive enough to ensure consistent, comparable responses, but flexible enough to
allow consideration of seller suggestions for improved ways to meet the requirements.
Common documents include:
• Request for Information (RFI)
• Request for Bid (RFB)
• Request for Quote (RFQ)
• Request for Proposal (RFP)
• Invitation for Bid (IFB)
RFI
A Request for Information (RFI) is commonly used to develop lists of qualified vendors and gain
more input for resource availability.
This document is used to gather relevant information about a vendor's organization and financial
history, including:
• Seller organization’s history
• Balance sheets
• Business type (family owned, private, publicly listed, etc.)
• Owner’s history and background
• Bank statements for the past three years
RFB
A Request for Bid (RFB) is commonly used when deliverables are commodities for which there
are clear specifications and when price will be the primary determining factor. The RFB is submitted
to selected sellers for a formal bidding process. You can anticipate some negotiations.
RFQ
A Request for Quote (RFQ) is commonly used when deliverables are commodities for which
there are clear specifications and when price will be the primary determining factor. Unlike a
Request for Bid (RFB), this solicited price quote is used for comparison purposes and is not a
formal bid for work. Negotiation of price is generally not associated with an RFQ.
RFP
A Request for Proposal (RFP) is commonly used when deliverables are not well-defined or when
other selection criteria will be used in addition to price. Sellers are often encouraged to offer
suggestions and alternative approaches to meet the project goals. Preparing the RFP is time-
consuming and costly for the seller. Negotiation is expected. Because it is time-consuming and
expensive to create a proposal in response to an RFP, it is typical that not all the sellers solicited will
respond.
IFB
An Invitation for Bid (IFB) is commonly used when deliverables are commodities for which there
are clear specifications and when the quantities are large. It is sometimes used interchangeably with
an RFQ. Unlike the other documents which are submitted by selected vendors, this invitation is
usually widely advertised and any vendor may submit a bid. Negotiation is typically not anticipated.
Guidelines for Preparing Procurement Documents

To create a thorough procurement document, follow these guidelines:
• Examine the procurement need and determine which procurement document to use.
• Use standard procurement forms or templates if available.
• Develop a strong set of source selection criteria based on the real needs of your project.
• Objective criteria will probably be required when requesting bids for most goods and
facilities.
• However, you may find that using objective criteria alone will be too restrictive when it comes
to selecting resources such as a video producer, graphic artist, or central office site.
• Allow room to select from a range of capabilities and experience to get the best possible fit.
• Determine how you want the prospective vendors to respond:
• Must the response be provided on a specific form?
• Is there a specific format that must be followed?
• What is the deadline for proposal submissions?
• Is there any additional documentation that must be provided?
• Where and to whom should the proposals be sent?
• Examine the relevant SOW and make any necessary modifications that may have been identified
when planning for contracting.
• Verify that the procurement management plan is structured to facilitate consistent, comparable
responses from sellers. It should include, at the minimum, the following key elements:
• Reference to (or inclusion of) the relevant SOW. You may also include other relevant project
documents, such as the WBS or network diagram, as appropriate.
• Clear instructions for how the prospective seller should respond.
• Any required contractual provisions such as confidentiality agreements and certifications.
• Criteria by which proposals will be evaluated.
• Identify and consider any regulations that may define the required structure of procurement
documents for government contracts.
• When required, include the following information in the procurement management plan:
• Listing of qualified sellers expected to bid (to drive down costs).

• Bidders' conferences.
• Supplier payment plan.
• How change requests will be managed.
ACTIVITY 10-3
Preparing Procurement Documents
Data File
C:\095016Data\Planning Project Procurements\Combined SOW and Procurement.docx
Scenario
During the development of the GCCG e-Banking Portal project charter and project scope
statements, it had been determined that external suppliers and service providers will provide
software, hardware, and network solutions due to unavailability of appropriate expertise within the
organization. You updated the procurement SOW that will serve as a basis for the procurement
team to develop the GCCG procurement documents during the solicitation process. You are
meeting with key members of your team to make sure that it includes all the work for this portion of
the project.
Additionally, it is GCCG's policy that all project managers must get approval from the procurement
department for all external procurements. Before you meet with the GCCG procurement manager,
you've been asked to come to the meeting with an outline of the procurement SOW that is to be
included in the procurement document.
1. Based on the scenario, what will be a logical first step in creating the
procurement document?
○ Determining the most appropriate procurement document to use.
○ Determining how you want sellers to respond.
○ Defining the product requirement specifications.
○ Examining the project SOW and making any necessary changes.
2. Open C:\095016Data\Planning Project Procurements\Combined SOW

Procurement.docx and use it to answer the activity questions.
3. In the Combined SOW and Procurement document, which components define

the specifics of the work being procured?
A: The description of the work, the Seller Responsibilities list, and exhibits A and B define the work
being procured.
4. In the Vendor Responsibilities section, are there any inconsistencies used in

the document that may be confusing?
A: Answers will vary, but may include using the terms “supplier” and “service provider”
interchangeably, which might cause confusion. It's recommended that the same term be used
when referring to the vendor.
5. Does the Combined SOW and Procurement document include any collateral
services to be provided by the client?
A: The follow-up support will be considered as a collateral service in this contract. Training materials
might also be considered to be collateral.
6. Does the Combined SOW and Procurement document describe when, where,
and how delivery is required?
A: The work schedule describes when the work will be delivered. The Seller Responsibilities list
states that the seller must be responsible for installing, configuring, and testing the products.
Exhibits A and B describe in detail how delivery should be made.
7. The delivery of project software and hardware required, timely installation and
maintenance, training and support, and costs will be the determining factors
in your choice of suppliers. What type of procurement document is this?
○ RFQ
○ RFB
○ RFP
○ IFB
8. Why is the RFP the appropriate document?

A: The RFP is appropriate because cost is not the only factor. You are also looking at the software
and hardware delivery, timely installation and maintenance, and training and support.
Summary
In this lesson, you planned for procuring products or services from external sources. With a
procurement SOW and the procurement management plan, you determined how procurement for
the project will be handled. This effective planning and documentation of all project procurements
up-front ensures the successful outcome of your project.
How can your organization benefit from more effective procurement planning?
A: Answers will vary, but may include: effective procurement planning ensures better sourcing and
selection of sellers by your organization using the detailed product and service specifications, seller
analysis and identification, and guidelines for carrying out project procurement.
In the future, what do you plan to use to prepare better SOWs and procurement
documents?
A: Answers will vary, but may include: product analysis, alternative identification, required quality
standards, risk-related suggestions, and the WBS dictionary. Having the right information helps in
preparing thorough procurement documents. You will be continually looking for small improvements.
Lesson 10: Planning Project Procurements |
11 Planning for Change and
Transitions
Lesson Time: 1 hour
Lesson Introduction
You planned for project procurements. As the project advances, you will have to manage
the changes that the project will undergo during its execution. Changes are inherent to a
project and addressing them in advance can save the project from becoming a failure. A
proper approach to changing management activities, diagnosing gaps, and developing
corrective actions will increase the chances for project success. In this lesson, you will
develop a change control system. You will also develop a plan to transition the completed
project to its recipients. This will ensure that it meets their expectations, and will save last-
minute rework at the end of the project.
Lesson Objectives
• Develop an integrated change control system.
• Develop a transition plan.
TOPIC A
Develop an Integrated Change Control System
As you continue to plan your project, you understand the important steps you must take toward
making sure that your project is conducted with the appropriate internal integrity and oversight. You
will further this goal by developing an integrated change control system, which formally governs
significant changes to the project work, schedule baseline, and budget. In this topic, you will develop
an integrated change control system.
You want to make sure that none of the customers, stakeholders, or members of the project
management team are surprised by delays to your schedule or significant cost overruns. By
developing an integrated change control system for your project, documenting its parameters, and
adhering to its guidelines, you can reduce the risk to your project and maintain its positive forward
movement.
Integrated Change Control

Integrated change control is the process of identifying, documenting, approving or rejecting, and
controlling any changes to the project baselines. Integrated change control reduces risk to your
project by governing the execution of proposed changes that will affect schedule and cost or any
other objectives of the project. It allows project managers to record the changes that are requested,
make sure that changes are implemented in a standardized and approved manner, minimize their
disruptive effect, and monitor their progression from initial request through completion.
Once the change requests are identified, they are documented in a change request form. The form is
then sent to the change management team, which can include the sponsors and customers, for
review and approval. It is important to define the turnaround time for each change request and
initiate a document routing process for a proper communication flow among the reviewers and
stakeholders of the project.
Example: Developing an Integrated Change Control System in an Independent

Company
A new project manager at a small, independent company, Rad, will be responsible for following the
organization's guidelines regarding change control. He will first need to determine if there is a
formal change control process in place; if there is not, he will develop one for his project. He will
begin by gathering all relevant information and documentation and will identify the changes that
require management approval.
He will proceed to identify who the key players are within the management team who need to
approve or initiate change requests. This will be very important when it comes to asking for
additional funding for the project or deadline extensions. He will identify who will manage changes
and give authorization for expenditures. He will also need to document who needs to give consent
to change requests and whether the consent of customers is required.
CCB
A Change Control Board (CCB) is a formally chartered group responsible for reviewing,
evaluating, approving, delaying, or rejecting changes to the project, and for recording and
communicating such decisions.
Lesson 11: Planning for Change and Transitions | Topic A
Change Control Systems

A change control system is a collection of formal, documented procedures for changing official
project documents and project deliverables. An effective change control system includes forms,
tracking methods, processes, and approval levels required for authorizing or rejecting requested
changes. Change control systems often specify that a CCB will address the issues that affect the
scope, cost, time, and product quality.
Example: A Change Control System for an Internal Project

A project manager for an internal project documented the project changes in the change control
system. Any changes affecting the original scope, cost, or schedule baselines must be submitted with
a standardized change request form, including a description of the change being requested, its
relative priority, and the reason behind it. The internal CCB will evaluate each proposed change
request for potential risks and benefits and make a decision whether to approve or reject the change.
Types of Project Changes

During a project, some of the types of common project changes include:
• Timeline—changes to any activities that can affect the overall schedule.
• Funding—changes to activities that can affect the funding allotted to the project; for example, a
change that increases the cost of the project.
• Risk event—a new risk, or change to an existing risk, than can affect any aspect of the project.
• Requirements—changes to the project requirements initiated by a stakeholder.
• Quality—changes to the project scope, schedule, or cost that result in a decrease in the quality
of project deliverables.
• Resource—changes to the project's human or equipment resources.
• Scope—changes that require the project scope to be modified.
Causes of Project Changes

Performance variation is an inevitable component of project work and can be caused by several
common factors.
Cause Description
Inaccurate initial estimates There are many reasons why initial time and cost estimates for
completing the project work prove to be inaccurate. These reasons
may include lack of experience, lack of information, reliance on
inaccurate data, excessive optimism, technological difficulties, and
unreliable resources. Getting those original estimates to be as realistic
and accurate as possible makes the control process more manageable.
Specification changes Project work can open up new avenues of development and design
that were not considered during the initial planning of the project
work and scope. As new options for a product or service become
apparent, customers, sponsors, or the project manager may broaden
the project's scope to include new specifications and deliverables.
New regulations As project work is progressing, new governmental or industry-specific
regulations may be enacted. This can be especially true for very
lengthy projects. Accommodating new regulations or legislation can
also mean revisiting the planning process to determine the effect the
new regulations will have on resource needs, schedule duration, and
quality specifications.
Cause Description
Missed requirements Many times the requirements are identified by reviewing the
documentation and interviewing the end users and policy makers.
However, there are times when complete and comprehensive
understanding may not be possible.
For example, even though the interviewer feels that he or she has
understood the point, and the interviewee feels that he or she has
expressed everything significant, there still may be no meeting of the
minds. Although a Requirements Traceability Matrix (RTM) is
prepared, the confusion may still arise in a planning document.
Prototyping can help demonstrate the functional and technical
requirements of the project, and a missed requirement might surface
during development of the prototype.
Although all these techniques reduce the chances of missing any
requirements, they cannot guarantee that every requirement is
captured. In many cases, there are some discrepancies that surface at
different phases in the project.
Organizational Change Types

The following table describes the organizational changes that would affect a project.
Organizational Change Description
Mergers/acquisitions The overall size and number of personnel in your organization is

increased to incorporate another organization. This might affect the
top-level executives or your project sponsor, and the effects will trickle
down to other levels within the project.
De-mergers/splits Similar to a merger, when organizations separate into two or more
smaller organizations, this might affect the top-level executive or
sponsor of your project and have trickle-down effects.
Business process change The organization changes the official processes for getting things
done. This might affect how funding and resources are approved.
Internal reorganization Within the organization. when personnel and functional managers are
reassigned, this might affect the project team's members and process.
Relocation When a project team member leaves the organization or is transferred
to another department within the organization, you might have to find
a new project team member. If the entire organization relocates, then
this might impact the personnel structure throughout the entire
organization as well as business processes and preferred vendors.
Outsourcing When the company decides to procure services from an external
resource, this might disrupt the project's workflow processes or the
stakeholders involved.
Project Change Categories

Project changes can be classified into three broad categories.
Corrective action Documented direction on actions that must be carried out to help
bring the future project performance requirements back on track and
conform with the current project management plan.
Preventive action Documented direction on actions that must be implemented to
diminish the effects of any negative risks.
Defect repair Formally documented measures that must be undertaken to address
the defects in the project components, which are recommended to be
either repaired or replaced.
Change Requests
Sometimes, a change in the project scope, work, or process may be necessary to meet the project
objectives. Change requests are requests for changes that are processed through the change
control system for their evaluation and approval. They can also be recommendations for taking
corrective or preventive actions. Change requests can be raised by any stakeholder as long as they
use the correct procedure. When the change request is approved, you may need to make changes to
the related project documents, baselines, and processes. Change requests from vendors must also be
carefully documented and approved before implementation.
Configuration Management
Configuration management is a process that is used to manage changes to a product or service
being produced. Changes can be of a technical nature and in administrative direction. Configuration
management is used to:
• Control product iterations.
• Ensure that product specifications are current.
• Control the steps for reviewing and approving product prototypes, testing standards, and
drawings or blueprints.
A configuration management system is a set of tools that contains procedures that help provide
technical and administrative guidance for identifying and recording the characteristics of a product
or service, controlling changes made to the characteristics, documenting the changes and the status
of implementation, and verifying the product's conformance to the requirements. One of the
subsystems of the configuration management system is the change control system.
Configuration management systems, when combined with integrated change control, provide
standardized and effective ways of managing approved changes and baselines within a project.
Configuration control involves specifying the deliverables and processes, while change control
involves identifying, recording, and supervising changes to project baselines.
Note: When dealing with government contracts or other large systems, a configuration
management system is often required.
Example: Implementing Configuration Management to Control Change

Requests
An art director, Reanna, implemented a configuration management system specifically for
controlling change requests to the images and animations in customers' advertisements. She created
a database to track the project images. When a customer identified a need for an image or
animation, the team created a new entry in the database; each entry included the name and size of
the image along with a detailed description of the ad. Using this configuration management system,
the art director could easily check the database for new entries, assign the change requests to team
members, and track them through the approval process.
Guidelines for Developing an Integrated Change Control

System
Your goal in developing an integrated change control system should be to ensure that the project
management team and the stakeholders are not surprised by schedule delays or cost overruns. By
developing a change control process, documenting its parameters, and adhering to its guidelines, you
can reduce the risk to your project and maintain its momentum. To develop an integrated change
control system, follow these guidelines:
• Use the approved change control system, if it exists. It is your responsibility to implement the
approved integrated change control system for your project in accordance with all relevant
company procedures and requirements.
• If no integrated change control system is used at your organization, it is your responsibility to
develop one for your project. Gather any relevant historical data within the organization that
relates to the process of identifying, documenting, approving or rejecting, and controlling
changes to the project baselines.
• Identify what will be considered a change that is significant enough to require management
approval. For the sake of maintaining forward momentum on project work, project managers
will not bring minor changes to schedule and cost estimates to upper management for approval.
Make sure that the organizational expectations regarding change control have been clearly
defined and documented. How much latitude does the team have in making autonomous
decisions about changes? At what point should you bring a change request to the upper
management team?
• In conversation with stakeholders and the project management team, identify these responsible
parties:
• The people who are able to initiate change requests. These may include stakeholders, project
management team members, and customers, among others.
• The parties who are authorized to give or withhold business approval to a request for a
change. Who will make the decision about whether or not a change is necessary and
appropriate?
• The parties who have the authority to approve additional funding, overtime costs, and
purchase orders.
• The parties who will be responsible for executing the work necessary to satisfy the requested
change and evaluate the work for quality assurance.
• The person(s) who will be responsible for managing changes. In some organizations, this may
be the project manager, but in other organizations, it may be one or more functional
managers.
• The parties who are responsible for prioritizing changes and making qualitative decisions
about them. Is this change imperative to the success of the project or merely nice to have if
time and resources allow?
• Identify how change requests must be approved. Some organizations may require written
approval from customers before changes to the scope, schedule baseline, and budget can be
implemented.
ACTIVITY 11-1
Developing an Integrated Change Control
System
Scenario
The GCCG e-Banking Portal project has a very tight deadline and a strict budget. You are
concerned that any possible changes could negatively affect project performance baselines. You
need to ensure that there is a standardized method for handling changes to project work.
1. Who will you involve in the change control process for the e-Banking Portal
project and what is their role in the change control process?
A: The change control process should involve GCCG-selected senior executives and strategic
planning individuals who are the key stakeholders. Their role will be to identify what will be
considered a significant enough change from each baseline to require management approval. You
should also include the PMO and the CCB.
2. Which document records the change requests initiated in the integrated

change control system?
○ The cost management plan
○ Performance reports
○ The change request form
3. The IT department informs you that a project software upgrade for the e-
Banking Portal will have a significant delay in delivery. In the risk register, you
accounted for delay due to the software upgrade, but this delay is much
longer than originally anticipated. What action should you take first?
○ Coordinate changes across knowledge areas.
○ Document the change request in a change control system.
○ Update the project plan to reflect changes.
○ Bring the information to the stakeholders for evaluation and approval.
○ Identify corrective action to take to resolve the problem.
4. The procurement manager contacted the software vendor and was able to
secure a beta version of the project software. The beta version may have
some minor bugs, but it will be available in time for the training. Based on
your change control process, what further action, if any, should you take?
A: You should document the problems regarding the beta version and its flaws, the actions taken to
work within these issues, and the reasoning behind your decision to use the beta version of the
software.
TOPIC B
Develop a Transition Plan
You developed an integrated change control system and created some of the subsidiary plans of the
project management plan. Another plan is the project transition plan, which enables you to manage
the project's transition to its recipients—usually a customer or an operations department. In this
topic, you will develop a transition plan.
Achievement of expected benefits alone does not mark the completion of a project. You must
ensure that the project product obtained is transferred to the appropriate group for sustenance.
Transitions are performed in accordance with the transition plan. The project manager is
responsible for creating the transition plan.
Product Transition
Product transition is a formal hand-off of a project's outcome to its recipients, which could be a
client or the next phase of the project. The project outcome, which includes the products, services,
or benefits, is transferred to the next level for sustainment. Apart from the product, all required
documents, such as training materials, support systems, facilities, and personnel, are also delivered
during the transition. The transition process ends only when the receiving entity or organization
performs all preparation processes to receive the project's end product and incorporate it.
Transitions can be contract-based activities or can occur among functions or projects within an
organization.
The Transition Plan

The transition plan is a document that describes how the outputs of a project will be transferred
either to another organization or to a functional group within the performing organization.
Transition plans must be created after detailed discussions with both the sponsors and customers.
Some organizations may add the complete list of tasks specified in the initial list to the transition
plan, whereas others may limit the transition plan to tasks that specify the transition of deliverables
or resources.
Project transition events need not occur only at the completion of a project. They can happen when
necessary, during any phase of the project life cycle. For instance, a project or a non-project work
deliverable will be transferred when the specific project activity is complete.
Example: A Transition Plan for an Automotive Company

An automobile manufacturer has taken up the design and launch of a new solar car model. The
development of major components, such as the engine, chassis, drive system, solar panels, exterior,
and interior, are dealt with as separate projects. The project that deals with the making of solar
panels has been outsourced. The vendor responsible for this project created the solar panels and
also created a transition plan that specifies the details regarding the transition of the product to the
automotive company.
Transition Plan Components

The transition plan is part of the project exit criteria. It includes:
• Creating the scope of the transition and specifying what must be included and what can be
excluded in the transition.
• Identifying the stakeholders and their organization or group that must receive the transferred
products.
Lesson 11: Planning for Change and Transitions | Topic B
• Ensuring that the project benefits are measured and the benefits sustainment plan exists.
• Ensuring that the products are transferred at the right time.
• Creating a resource release plan that specifies what the resources must do after the benefits are
realized and the products transferred.
• Creating a financial closure plan that describes the requirements for the closure of project
finances.
• Ensuring that the contract closure requirements are consistent with the terms specified in the
contracts.
• Determining the processes to receive deliverable acceptance.
• Communicating the requirements for project closure to the appropriate person with approval
from the concerned person.
• Listing the impacts of project closure and describing how the organization or its structure will be
affected by it.
Example: Creation of a Transition Management Plan for a New Project at Leaps

and Bounds Travel
Linda Perez is the project manager for a new project at Leaps and Bounds Travel. She begins
drafting the project management plan and wants to plan project transition. She schedules a meeting
with the stakeholders and receiving organization to determine their views and expectations. She also
measures the benefits to be obtained and creates the benefits sustainment plan. She is now all set to
create the transition management plan that will ensure a smooth transition of the project benefits.
Transition Dates
The transition plan should specify the date when the project product, service, or result will be
handed off to its recipients. The transition date has to be specified in the plan so that the products
are transferred at the right time. After the product is handed off to the receiving entity or
organization, the closure of project finances and contracts will be decided by the managers.
Product Training Events

Product training events are demonstrations provided by the company on a product or service
during its transition phase. These training events are undertaken to teach recipients how to use
purchased products or services. Modes of training differ from one product to another, and can
include instructor-led training, video walkthroughs, handbooks, service manuals, and live
demonstrations by experienced personnel.
Example: Product Training for the Anti-Spyware Software

Ristell is one of the companies that supply the latest cellphones to customers worldwide. The anti-
spyware software for the cellphones is purchased from another vendor that provides anti-malware
solutions. The anti-spyware software has to be integrated into the cellphones along with other
software applications. During the product transition phase of the anti-spyware software, the vendor
company had to provide a demonstration of the software to the people at Ristell. The vendor
company prepared a video walkthrough of the anti-spyware software and how it can be integrated
into the cellphones.
Extended Support
Extended support refers to a type of assistance provided by a company to its customers. It is most
often a paid service and offers assistance after the expiration of the warranty period of a particular
product or service. Extended support may include technical support; customer service; software or
product support; troubleshooting; maintenance; and any upgrades, installation, or configuration past
the warranty period. These kinds of assistance can be provided over the phone, through email,
through technical support personnel, or through a web chat.
Note: For a detailed discussion of warranties, you can refer to the lesson titled "Monitoring and
Controlling Procurements."
Guidelines for Developing a Transition Plan

Planning project transition ensures that the benefits are sustained even after the completion of the
project. To create a project transition plan, follow these guidelines:
• Define the scope of project transition.
• Check the project schedule to verify when the product, service, or result is ready for transition.
• Identify the stakeholders in the receiving organizations and their functions, and request their
participation for planning project transition. The level of ownership for every involved
stakeholder should be mentioned in the transition plan.
• Include any available organizational process assets that are used by the receiving organization if
they will affect the project transition plan.
• Create and release the benefits sustainment plan based on the benefits acquired.
• Include any product training events that are planned during the transition process.
• Decide on the period of time when the company can provide support for the product. Also
include details on the warranty period and extended support that will be offered.
• Plan the transition of project products, results, or services with the stakeholders and others who
are related to the project.
ACTIVITY 11-2
Developing a Transition Plan
Scenario
The integration process for the GCCG e-Banking Portal project is following a planned stage-wise
transition, and as a manager, you are about to transition the first stage results. The first stage
involves integrating web pages related to all types of loan services provided by the bank. When the
users log in to their accounts, they will be able to view the links related to loan services. The portal is
now integrated with this service and needs to be made available to users. You are responsible for
creating the transition plan.
1. Which of these inputs will you need to develop a transition plan? Select all
that apply.
☐ The project charter
☐ The stakeholder list
☐ The project scope statement
☐ The quality management plan
2. Which organization defines the scope of the transition plan?

A: The scope of the transition plan is defined by the performing organization.
3. In which of the project lifecycle process groups is the transition plan

developed?
○ Initiating
○ Planning
○ Executing
○ Closing
4. A project's outcome, which includes products, services, or benefits, is

transferred to the next level for sustainment. Which option best describes
"sustainment" of a product?
○ It ensures that a project's end product is maintained so that the product is in operable condition
regardless of whether or not the product is used by the end user.
○ It ensures that a project's end product is sent for testing before it can be handed off to its recipients.
○ It ensures that a project's end product is delivered to its recipients regardless of its operable
conditions.
○ It ensures that a project's end product is incorporated by its recipients after the transition process.
Summary
In this lesson, you planned for change management and transitions. Building a holistic approach for
managing changes and transitions will help you identify the changes that have to be addressed
quickly and make an efficient and complete transition of a product or service to the customer or
client.
How will you manage changes in your organization?
A: Answers will vary, but may include: it is important to have a well-developed change control system in
place in order to manage changes in a project. The general process includes: 1. Identifying the
changes that have occurred or need to occur. 2. Identifying the impact of the changes to the project
scope, time, and cost. 3. Documenting the changes in a change request form. 4. Sending the change
request form to the change management team (sponsors and customers) for review and approval. 5.
Developing change management plans. 6. Taking actions to implement the changes. 7. Verifying the
changes made.
What has been your experience in developing transition plans? What items did
you choose to include?
A: Answers will vary based on students' real-world experiences. The transition plan components that are
included might be the project schedule, project scope, and stakeholder expectations.
Lesson 11: Planning for Change and Transitions |
12 Executing the Project
Lesson Introduction
You finished your project planning and integrated the outputs from each of the planning
processes into a comprehensive project management plan. Now, your project transitions
from planning to executing.
Coordinating the people and resources you need to carry out your project management plan
is essential for your project's success. The project team members need a coach to guide
them as they undertake the work defined in the scope statement. Executing project work
ensures that your team is on the same page and that your project finishes on time, on
budget, and with the required quality. In this lesson, you will execute project work.
Lesson Objectives
• Direct the project execution.
• Execute a quality assurance plan.
• Assemble the project team.
• Develop the project team.
• Manage the project team.
• Distribute project information.
• Manage stakeholders’ relationships and expectations.
TOPIC A
Direct the Project Execution
Your project officially advanced from planning to executing. Now, it is finally time to start
leveraging the plan. In this topic, you will identify the components and purpose of directing and
managing project execution.
Coordinating people and resources to carry out the project plan is like conducting musicians in an
orchestra. Effectively directing and managing project execution ensures that the project team starts
and finishes the project work according to the project management plan.
Move from Planning to Execution

Throughout the life cycle of a project, various reviews occur. As the project moves from the
planning phase (process group) to the executing and controlling phases (process groups), it is
important to conduct a review meeting. During the meeting, several items should be verified:
• All roles and skills have been identified, all required resources are available and committed to the
project, and high standards for performance are set.
• All project documents have been completed, reviewed, and signed off on, which includes the
business, functional, and technical requirements, the project charter, the scope statement, all
project plans, and the SOW.
• All issues in regard to planning have been resolved.
• The project is still feasible.
• The expectations of the stakeholders are aligned with the project plan.
PMIS
A Project Management Information System (PMIS) is an automated or manual system used by
a project team to gather, analyze, communicate, and store project information. The PMIS collects
information on the work that has and has not been accomplished in each work package and how
that work result compares to the planned schedule, cost, quality, and scope. A PMIS can utilize
sophisticated software tools, either those purchased off-the-shelf or custom built by an internal IT
group, to manage some of its components.
There is some overlap between a communication plan and a PMIS; a PMIS has a calendar associated
with it and includes a lot of communication between the project manager and the team. An example
of an off-the-shelf software product that can be deployed as a PMIS is Microsoft® Project.
Note: A common pitfall associated with using a PMIS is creating a system in which the various
pieces of data are incompatible with one another. For example, financial data may be created in
one application and reporting in a different application, and there is no way to get these two
systems to talk to each other.
Note: To learn more, check out the video on The Benefits of PMIS Software.
Example: Execution of a Project Plan in a Municipal Fire Station

The project team for a municipal fire station completed their project plan, which is well into
execution. Using the services of a systems analyst, they designed and implemented a PMIS that
includes manual and computerized methods.
Lesson 12: Executing the Project | Topic A
The team analyzed the needs of the project and balanced cost and benefits to develop a work
authorization system. The system requires an email message to be sent to notify the appropriate
people that work can begin on the next component.
Each Monday morning the team has a status review meeting. Before the meeting, the project
manager sends out the most recent open task report. During the meeting, the person responsible for
a task reports on its progress. If problems or barriers are identified, the administrative assistant logs
them in the issues log and the issue is then assigned to an individual.
Common PMIS Problems

Several common PMIS problems arise when directing and managing project execution.
Problem Description
Reacting to lagging PMIS reports show problems after-the-fact. Good project

indicators management requires proactive problem prevention.
Managing symptoms rather While the PMIS reports exceptions and overruns, it can't explain the
than problems reason for the problem. It is important to focus on finding the cause
and solving the problem, rather than making the exception or
overrun go away.
Over-reliance on PMIS Project managers need to communicate frequently with team
communication members and other stakeholders. Sending PMIS reports is
important, but it should not take the place of other types of
communication.
Invalid data in the PMIS PMIS reports can be wrong, making problems look either greater or
smaller than they are. Some very real problems may not show up in
the PMIS at all. The project manager must look beyond the PMIS to
verify information about the problems, and then concentrate on
getting the problems solved.
Too much information Too much information is counterproductive, forcing people to cope
by ignoring some of the messages. It is important to make sure that
the right people get the information they need at the right time, but
it is equally important not to swamp people with irrelevant or
untimely information. Someone has to control the scope of the
information in the PMIS, or it will overload the team and the
project manager.
Work Performance Information

Work performance information consists of periodically collected information about project
activities that are performed to accomplish the project work. This data will reside in your PMIS, if
you have one.
This information includes:
• Schedule progress with status information.
• Deliverables that have been completed and have not been completed.
• All schedule activities and their start and finish dates.
• The degree to which quality standards are being accomplished.
• Expenses authorized and incurred.
• Estimates to complete the schedule activities already in progress.
• Percent of completed schedule activities that have been started.
• Lessons learned that are posted to the lessons learned knowledge base.
• Details on resource utilization.
• Status for implementation of change requests.

• Details on corrective and preventive actions and defect repairs.
Work Authorization Systems

A work authorization system is a tool that is used to communicate official permission to begin
work on an activity or work package. It is a function, or component, of the Project Management
Information System (PMIS). Its purpose is to ensure that work is done at the appropriate time, by
the appropriate individual or group, within a specific time, and in the proper sequence.
Work authorization systems include the necessary processes, documents, tracking systems, and
approval levels required to provide work authorizations. Depending on the project, your work
authorization mechanism may be a simple email message or a formal, written notice to begin work.
Smaller projects may only require verbal authorization. The work authorization system is integrated
with the communications plan.
Figure 12-1: A sample contract work authorization system.
Guidelines for Directing the Project Execution
Throughout the entire execution of a project, the project manager can employ different techniques
to coordinate and direct the various technical and organizational aspects of a project. Tools, such as
the PMIS and the work authorization system, are powerful work aids that an organization can use to
ensure project success. To effectively execute the project plan, follow these guidelines:
Note: Selecting and implementing a PMIS is outside the scope of this class, but the guidelines
presented here are some considerations that you may want to be aware of as you move forward
in pursuit of advanced project management skills.
• Comply with any of the organizational policies and procedures that the organization has in place
regarding project execution to ensure predictable and consistent results. Make sure that all
contractors are familiar with and comply with the procedures.
• Evaluate and select the work authorization system you will use to formally sanction work to
begin on an activity or deliverable. The value of the control your system provides should be
balanced with the cost (money and time) of designing, implementing, and using the system.
• In line with good project management practice, use the artifacts necessary to get the job done.
Use the organization's project management infrastructure. If it is not there already, then invent it.
• If necessary, work with a systems analyst to create a PMIS that is workable for your project.
Make sure that the systems analyst understands the following:
• Who needs to use the information?
• What type of information will be needed by each user?
• When and in what sequence will the information be used?
• Who will generate the initial information to be incorporated in the system?
• Once the system is in place, determine who will be responsible for its day-to-day operation,
whether it will be you or someone else. Specifically, you need to determine who will be
responsible for:
• Data entry of initial information. This includes assigning people to enter data and setting up
specifications for what data must be entered, how it will be entered, and when it will be
entered.
• Analysis of information. Analysis means summarizing information, drawing conclusions from
it, and creating graphical depictions of what the information is saying. Your task here is to
assign people to do the analysis and provide specifications of how the data is to be analyzed,
how it is to be reported, and what reporting formats will be used.
• Storage, archiving, and retrieval. This includes assigning individuals to handle day-to-day
storage and retrieval and setting specifications for backing up data and archiving it.
• Systems documentation. Whatever system you choose, it must be documented. Remember
that you will be straining the PMIS during project execution. You may need to adjust it, or
even repair it, to improve its performance during this phase of the project. Good
documentation will allow support staff to make the adjustments and repairs efficiently,
without losing data or backing up the project schedule.
• Evaluate the effectiveness of the PMIS for your project.
• Do not rely too much on the PMIS. Be proactive in managing problems rather than waiting
for the PMIS to report a problem before addressing it.
• Avoid the temptation to manage the PMIS instead of the project.
ACTIVITY 12-1
Directing Project Execution
Scenario
In preparation for the business transformation, the PMO will implement a PMIS that all project
teams will use to gather, analyze, communicate, and store project information. The GCCG e-
Banking Portal project team will be the first team within the organization to use the system. You
completed project planning and the project is ready to begin. You now have to coordinate and direct
both the technical and organizational aspects of the project.
1. You need to assist the systems analyst in the creation of a PMIS that is
workable for your project. In order to design an effective PMIS, what should a
systems analyst know about the project that the PMIS will manage? Select all
that apply.
☐ Who will have access to the information?
☐ When will the information be needed?
☐ Who will incorporate the information in the system?
☐ Who is the customer?
2. As the project manager, you made sure that all organizational policies and
procedures were followed and the contract vendors are familiar with their
responsibilities. What will you do next?
○ Create a work authorization system.
○ Call a meeting with the project sponsor so that she can commence work.
○ Work with a systems analyst to create a PMIS.
○ Collect work performance information.
3. An activity did not start on its scheduled date. The members of Team 1
claimed that they could not start the activity because its predecessor activity
did not show a completion date in the latest status report. The members of
Team 2 claimed that they completed the activity on time and followed the
appropriate procedure for updating its completion status. What are the
predecessor things you will do to investigate why the status report was not
up-to-date?
A: Review the status for the activities in the PMIS because it is the central point of data collection for
activity status. If you discover that the completion status for the activity is not reflecting in the
system, alert the PMIS technical experts so that the cause can be identified. Along with the
current system for activity updates, you may also ask the resources to communicate their activity
progress on a weekly basis through email or a phone call until the original system is proven.
TOPIC B
Execute a Quality Assurance Plan
Previously in the course, you identified what is involved in creating a quality management plan. Now
that you are in the project execution phase, you are ready to move forward with this key element of
ensuring that your project meets its stated goals. This is the action phase of your work, in which you
will measure, verify, and quantify the progress achieved. In this topic, you will execute quality
assurance.
You can set quality goals for your project, but how do you know if they are being met on an
ongoing basis? Performing quality assurance ensures that the project will meet the identified quality
standards and that stakeholders are confident about the quality of the work being produced.
Quality Audit
A quality audit is an independent evaluation, inspection, or review of a project's quality assurance
system to improve the quality performance of a project. The audits can take place at scheduled or
random intervals. The auditor may be a trained individual from within the performing organization
or a qualified representative of a third-party organization. During a quality audit, the quality
management plan is analyzed to make sure that it is still reflective of what has been learned in the
project and to ensure that the operational definitions are still adequate and valid. The results of a
quality audit are important for the current project and for later projects or other parts of the
organization.
Note: You must ensure that quality audits conducted at every interval are logged in an audit log
file. Audit logs are referred to as audit trails.
Example: Quality Audits at a Manufacturing Company

An auditor for a manufacturing company performs quality audits regularly. Every six months he
walks into the factory and reviews the company's quality management plan, cost of quality, and
quality process design to make sure that these processes are up-to-date, being used correctly, and
still valid.
Quality Audit Topics

Several topics can be included in a quality audit.
Topic Description
Quality management May be evaluated to determine how well management uses quality data
policy and how well others in the organization understand how the data is being
used. The evaluation may include an analysis of management policies for
collection, analysis, and use of data in decision-making or strategic
planning.
Collection and use of May be evaluated to determine how well the project team is collecting,
information distributing, and using quality data. Items for analysis in this category may
include consistency of data collection processes, speed of information
distribution, and use of quality data in decision-making.
Lesson 12: Executing the Project | Topic B
Topic Description
Analytical methods May be evaluated to determine if the best analytical methods are being
used consistently and how well their results are being used. Items for
audit may include how analysis topics and analysis methods are selected,
what technology is used, and how results are fed back to others in the
process.
Cost of quality May be evaluated to determine the most effective proportion between
prevention, inspection, and costs of repair or rework.
Quality process design May be evaluated to determine how process design, process analysis, and
statistical process control should be used to establish and improve the
capability of a process.
Process Analysis
Process analysis is the method that is used for identifying organizational and technical
improvements to processes. Various techniques are used to conduct the analysis, including
flowcharting that shows the relationships between process steps and root cause analysis that helps
determine the underlying causes and develop corrective actions. Examples of factors that can be
examined when performing the analysis are the process capacity, capacity utilization, throughput
rate, flow time, cycle time, process time, idle time, work in progress, set-up time, direct labor time,
direct labor utilization, and quality.
Process analysis involves:
• Collecting information about the existing process and documenting a process flow diagram.
• Determining the entry and exit criteria of each step in the process.
• Conducting process analysis interviews with the people to identify the limitations in the process.
• Conducting a Failure Mode and Effects Analysis (FMEA) to identify the possible failures in
the process.
• Assessing the identified limitations and quantifying their impact.
• Identifying appropriate operating decisions to improve the process.
Quality Assurance Tools and Techniques

The following table describes tools that are used to perform project quality assurance (QA).
Tool Description
Cause-and-effect A diagram that illustrates how various factors may be associated with
diagram possible problems. Possible causes can be identified by asking “why” and
“how” for each problem identified. Cause-and-effect diagrams are also
known as Ishikawa or fishbone diagrams.
Control chart A graphical display of the results or status of a process over time and
against established control limits. It helps track the behavior of processes
over time and determine if the variances in the process are within
acceptable limits.
Flowchart A process flow diagram that assists the project team's effort to identify
potential quality problems, their associated effects on overall project
quality targets, improvement areas, and possible improvement measures.
Histogram A bar chart of variables. Each column symbolizes an element of a
problem. The height of each column represents how frequently the
element occurs. By using the shape and width of the distribution, causes
of problems are identified.
Tool Description
Pareto A histogram that shows the causes of problems in the order of their
severity.
Run chart A line graph showing plotted data points in chronological order. It could
show trends in a process over time or improvements over time. Trend
analysis uses run charts. Trend analysis is a tool you can use to
communicate forecasting information based on the project's current
performance. It is also used to monitor the project's technical, cost, and
schedule performance.
Scatter chart A diagram showing a relationship between two variables. The diagram
plots dependent variables versus independent variables. The more closely
the points form a diagonal line, the more closely they are related.
The following table describes techniques that are used to perform project quality assurance (QA).
Statistical sampling A sampling technique that is used to measure an entire population based
on actual measurement of a representative sample of that population.
Inspection An official examination of work results to verify that they meet
requirements. The inspection may be conducted by an internal or external
inspection team.
Approved change Ensures that all change requests are reviewed and implemented as
requests review approved during the perform integrated change control process.
Cost-benefit analysis Considers the tradeoffs and the benefit of meeting quality requirements
of higher productivity and lower costs while increasing stakeholder
satisfaction. The business case of each activity is used to compare the cost
of each step with its expected benefits.
Cost of Quality (COQ) Analyzing the costs incurred by preventing non-conformance to
requirements, appraising for conformance to requirements, and failing to
meet requirements (rework), internal or external.
Benchmarking Compares the quality of your project’s processes and systems to those of
other comparable groups, both internally and externally.
Design of Experiments A statistical method of identifying the factors that may influence certain
(DOE) product or process variables. DOE determines the number and type of
tests to be used and their influence on the cost of quality.
Example: Execution of a Quality Assurance Plan by a Coffee Brewing Equipment

Manufacturer
A leading coffee brewing equipment manufacturer is beginning to produce a new product line, and
Kevin Campbell is the project manager for the project. Kevin has been given the task of maintaining
a satisfactory level of quality while maintaining the fiscal goals for the project.
A quality audit was commissioned to determine if in-process monitoring produced the expected
improvement to cost and quality. Following an examination of the testing procedure outlined in the
quality management plan, the audit team analyzed the collected data from the latest series of testing
seven days per week.
The analyzed data was compared to the projected quality data based on the in-process monitoring
system, and it showed that the projections matched the actual data. Armed with this information,
the audit team recommended modifications to the quality management plan requiring testing only
twice each week. At a cost of $100 per test, the company is now spending $200 per week on testing
instead of $700, therefore saving $500 per week. Through careful review of the quality management
plan, analysis of the use and distribution of collected data, and by monitoring the cost of quality, the
company achieved marked improvements in quality while realizing an improved bottom-line.
Guidelines for Executing a Quality Assurance Plan

Effective quality assurance provides confidence that the project's product or service will satisfy
relevant quality requirements and standards. To execute a quality assurance plan, follow these
guidelines:
• Ensure that random and scheduled quality audits are conducted by qualified auditors to evaluate
the quality management plan, quality testing procedures, and measurement criteria.
• Are the quality parameters set forth in the quality assurance plan valid?
• Are the operational definitions and checklists adequate and appropriate to achieve the desired
final results?
• Are the testing methods being implemented correctly?
• Is data being interpreted, recorded, and fed back into the system properly?
• Use one or more of the quality assurance tools to determine the causes of quality problems in the
project's product, service, systems, or processes.
• Identify and implement the appropriate actions needed to increase the effectiveness and
efficiency of the project team's work results and improve the quality in the product or service.
ACTIVITY 12-2
Executing a Quality Assurance Plan
Scenario
The construction of GCCG Bank in Seattle has started. Materials have been ordered and delivered
and excavation has begun. The construction company you've hired has a standard quality
management plan that you adapted for your project. The plan contains specific operational
definitions for measuring the quality of construction work. In addition, it states that scheduled and
random quality inspections will occur. These inspections will be done by an internal quality
assurance engineer and will be in addition to the inspections conducted by the city. All corrective
actions that the quality assurance engineer feels will improve the effectiveness or efficiency will be
implemented. GCCG is ISO certified, so relevant ISO standards and regulations must be adhered to
as well. You selected a good team of workers for the construction and you are confident in their
ability to meet the quality standards.
1. The manager of quality assurance asked you about the quality management
plan. Which feature might he find problematic?
○ Occurrence of scheduled and random quality inspections during the course of the project.
○ Operational definitions were established for measuring the quality of the construction work.
○ Implementing all corrective actions that the quality assurance engineer feels will improve the
effectiveness or efficiency.
○ Quality inspections will be conducted by an internal quality assurance engineer and by the city.
2. As construction gets underway, random assessment results of product

development processes and product testing processes are unexpectedly
unsatisfactory. What sort of quality activities should be conducted?
A: Perform a random or scheduled quality audit to evaluate the quality management plan, quality
testing procedures, and measurement criteria for inconsistencies in the way that the quality plan
and operational definitions are being carried out. You can use some of the QA tools to provide
data and specific information about quality.
3. The stakeholders are questioning the amount of resources dedicated to

quality assurance. What will you do to demonstrate that the benefits of quality
assurance outweigh the cost?
○ Use flowcharts to see how systems relate and how various factors may be linked to problems or
effects.
○ Perform benchmarking to compare project practices with other projects to generate ideas for
improvement.
○ Document the identified corrective actions so that their effect on project quality, cost, and schedule
can be monitored during quality control.
○ Conduct an array of experiments to identify the factors that may be influencing specific variables.
TOPIC C
Assemble the Project Team
Once the project plan has been approved, it is time to execute it. Multitasking of many resources
makes negotiation and scheduling components of project management a constant challenge. In this
topic, you will look at methods for acquiring and scheduling skilled resources and assemble the
project team.
For the project to succeed, you must have the right resources. The most important resource in any
project is the intellectual capital that the project team brings to the table. Certain people will have
skills that you need. Your job will be much easier if you can negotiate for, effectively assign, and
schedule the human and material resources that you need to successfully complete the project. If
you lose this battle, all your hard work building that great plan will be for naught. This topic will
help you make sure that your project is not in trouble before it even begins.
Project Manager Roles

A project manager has many roles and responsibilities to fulfill on a project.
Role Description
Leader The formal authority of project managers is established in the project

charter, and the informal authority will be established by their ability to
demonstrate leadership skills with the team. Project managers must
provide clear direction for where the stakeholders need to go, and
credible strategies for how to get there. Project managers must serve as
advocates for their project. It is their responsibility to inspire others—
stakeholders and non-stakeholders—about the project and enlist their
help and support.
Planner and controller Project managers must facilitate project planning and determine
measurement criteria for evaluating the work accomplished. They must
also establish systematic processes for measuring the work against the
plan.
Communicator Project managers act as communication central on a project, interfacing
with executives, functional managers, customers, vendors, project team
members, and other interested parties outside of the project. Project
managers must communicate clearly and appropriately to each level, to
make sure that the right information is transmitted to the right person at
the right time and executive support for the project is maintained.
Negotiator Project managers need to negotiate for resources—time, money, people,
and equipment—in order to complete the project successfully.
Depending on the organization, these negotiations may involve an
element of “horse-trading” with functional managers. In addition, as the
project evolves, project managers may need to negotiate changes in the
scope, schedule, or budget with stakeholders. This may involve
negotiating trade-offs among the previously established success criteria
established for the project.
Problem-solver Every project is unique, which means that every project has its own
unique set of problems to overcome. Project managers must be able to
face problems rather than deny them, determine the root causes of
problems, and make decisions about the best method for dealing with
the problems.
Lesson 12: Executing the Project | Topic C
Role Description
Organizational change Projects exist within organizations. Project managers need to know how
agent to get things done in the organization, how to avoid political issues that
may hamper the project’s progress, and how to influence the
organization to bring about change. They also need to be willing to adapt
to project changes that may be imposed upon them by their
organization.
Political Capital
Many employees possess a reserve of corporate goodwill that is based on their perceived political
position and power in the company. This perception, also known as political capital, can come
from position, reputation, or both. Often, this goodwill can be used to achieve a desired end.
When a project is threatened, many times the main factor influencing the positive or negative
outcome for the project is the political clout of the project manager and the political clout of the
sponsor in the senior management realm. If the project manager cannot resolve serious problems,
the project manager will need to ask the sponsor to intercede. However, these requests should be
done sparingly because there is a limit to the amount of political capital that the sponsor will be
willing to use for any given project.
Team Acquisition
Successful completion of a project requires team members with the right skills, knowledge, and
ability to deliver project deliverables. Project managers must identify from the resource pool the
ideal individuals for the team. Acquisition is an approach that is used to obtain resources for the
project when there isn't enough staff within the project team or organization to complete the
project. Interviewing and recruiting the potential team members and scheduling their availability is
one of the core project management responsibilities that contributes to completing the project on
time. Organizations hire external resources, if they do not have the required number of appropriate
skilled resources on staff.
Example: Acquiring a Project Team for a Fundraising Event

Greg has been assigned the task of organizing a fundraiser for a children's hospital. First, Greg
meets with his functional managers, Kim and Rob, to determine what kinds of people should be
running each activity, if they need to hire any extra help, and how much resources will cost. They
employ about 40 people, and 20 have been preassigned by Kim and Rob to work on activities based
on previous experience with the fundraiser. Some activities have already been decided including a
hoop-shooting contest, balloon volleyball, and a karaoke contest.
Greg receives a list of everyone who has been assigned to work with him and calls a meeting to
develop his team and assign responsibilities. Some team members need to have good organizational
skills and some need to have creative skills; however, all need to be good with kids. Based on skills
and abilities Greg selects his team, including a high school basketball coach to be in charge of the
hoop-shooting contest and an art major to run arts and crafts. Greg finds a local college that agrees
to rent its gymnasium to the event for only $100.
The next day, Greg goes over the roles and responsibilities one final time with his team to make sure
that all is understood. An organization chart is made and given to the college, Kim, and Rob so that
they know exactly how the gym will be used and who will be involved in each activity. Now,
organization and setup can begin for the event.
Project Staff Assignments

Project staff assignments are the assignments of people who will work on the project, whether full-
time, part-time, or as needed. It usually involves a team directory, memos to or from team members,
and project organization charts and schedules.
Pre-Assignment
Pre-assignment is the allocation of project team members to project activities, even before the
project has officially kicked-off. These resources could be key resources who have the expertise to
perform a particular function in the project or have been promised during a competitive proposal.
Example: Pre-Assigning a Programmer for a Website Development Project

Susan Thomas has been authorized as the project manager for the company's website development
project. During the initiation phase, she realized that the services of the company’s Java
programmer, David Robinson, were required during the month of October in order to complete her
project on time. Therefore, she immediately secured the services of the programmer for that time
period.
Negotiation
Negotiation is an approach used by individuals or organizations with mutual or opposite interests
to come together to reach a final agreement. For example, staff assignments can be negotiated with
functional managers, vendors, or external organizations. This ensures that the appropriate staff is
assigned within the time frame when there is a need for scarce or specialized resources. Effective
negotiation requires knowledge of the economic and strategic worth of the project to effectively
bargain for scarce skills resources.
Note: The book "Getting to Yes: Negotiating Agreement without Giving In" written by Roger
Fisher and William Ury provides an interesting approach to problem-solving and negotiating.
Example: Negotiating with Vendors for Supplying Automobile Parts

An automobile manufacturing company decided to employ Greene City Legal Services as vendors to
provide consultants for its new project. The project manager negotiated a formal agreement with the
supplier on this issue. The negotiation included financial specifications, legal formalities, acceptable
quality of items, pricing issues, and so on. Both parties reached a favorable agreement at the end of
the negotiation.
Note: To learn more, check out the video on Negotiating a Win-Win Solution.
Effective Negotiating Skills

Negotiation is indispensable to project management and, when done effectively, will contribute to
the success of a project. Some of the skills or behaviors that managers can adapt to negotiate
successfully are:
• Analyze the situation.
• Differentiate the needs and wants of both parties.
• Focus on issues and interests rather than on a person's stance or position on the issue.
• Be realistic when making proposals.
• Give concessions and indicate that you are providing something of value.
• Ensure a win-win situation for both parties at the end of the deal.
• Communicate in an appropriate manner.
Virtual Teams
A virtual team is a team that is distributed across multiple locations. Some virtual teams have
occasional physical meetings, while others may never meet face-to-face. Virtual team building is
more difficult, for a number of reasons.
• Bonding and team identity can be hard to create when team members are geographically
dispersed because finding ways to provide a sense of team spirit and cooperation may be
difficult.
• Communication and information sharing need to rely on various forms of technology because
teams cannot meet face-to-face. However, managing electronic collaboration so that everyone on
the team can reliably transmit and access information from one another can be challenging.
• Because roles, reporting, and performance can be harder to track on a dispersed team, individual
contributions may be overlooked.
Note: To learn more, check out the video on Virtual Teams.
Example: Virtual Team for the Apollo 13 Mission

The Apollo 13 spacecraft was launched from the Kennedy Space Center in April, 1970, but an
accidental explosion in an oxygen tank aborted its mission to the moon. The virtual team
responsible for Apollo 13's launch and its subsequent safe return included the three crew members
on board and the staff of mission control in Houston, Texas. Telecommunications included voice
and television communication between astronauts and Earth.
Guidelines for Assembling the Project Team

Assembling well-formed project teams will result in meeting the resource needs of the project to
fulfill project requirements. To assemble a project team, follow these guidelines:
• Form good relationships with functional managers.
• Know when you need specific resources.
• Negotiate with the appropriate organizations or parties for critical resources timed with project
need.
• Ensure that appropriate steps are taken to retain the procured team members.
• Look for synergy and diversity among team members.
• Look outside to competent suppliers where in-house resources are not available.
• Make sure that roles and responsibilities are clearly understood by the team and other
stakeholders. If any issues arise among the team members, talk to the team members separately.
• Create and distribute an organization chart to all stakeholders.
ACTIVITY 12-3
Assembling the Project Team
Scenario
During project planning, you documented the roles, responsibilities, and reporting relationships for
your project. Now, you are ready to determine the individuals you will need to fulfill these positions.
1. Three members of your project team have to be allocated to you on a part-

time, 50 percent basis from the IT department. What will be your first step in
acquiring these resources for the project team?
A: Answers will vary, but may include: form good relationships with the functional manager in order to
identify and acquire resources, resolve problems, and manage team members. Discuss the
specific time frames that you will need for those people.
2. The functional manager of the IT department informs you that based on the
time frame for your project, two of the resources that are available are new
hires who have not worked earlier in a project on their own. What should you
do?
A: Answers will vary, but may include: ask the functional manager if a senior member of his team can
serve as a mentor to the new hires, at least throughout the beginning phases of the project. Verify
that the assigned resources will be able to perform the work required. Discuss who will be
responsible for training the new hires. Learning to negotiate effectively with functional managers is
a crucial part of the team acquisition process.
3. Which approach are you using as you work to acquire the appropriate project
resources?
○ Staff pre-assignment
○ Statistical sampling
○ Negotiation
○ Flowcharting
4. You reviewed the staffing management plan; to your surprise, it appears that
there are now staffing gaps due to resource reassignments. What will you do
to address this problem?
A: Answers will vary, but may include: one of the first things will be to develop some rough choices
for the project sponsor in terms of acquiring new resources and lead time to fill these staffing
gaps. The budget and schedule will be revised to reflect these resource reassignments.
TOPIC D
Develop the Project Team
Now that you have acquired your project team, you need to help them achieve peak performance.
Team building ensures that you build an atmosphere of trust and open communication. In this
topic, you will develop the project team.
Project teams comprise individuals, drawn from different disciplines, who must learn to work
together to achieve a common goal in a short period of time. The individuals working on your team,
all of whom have their own communication styles, work habits, motivation, and career agendas,
have to trust one another and work together rather than compete against one another for resources
and time. Team building ensures that you build an atmosphere of trust, collaboration, and open
communication.
Interpersonal Skills
Interpersonal skills are abilities that an individual should possess to work harmoniously and
efficiently with others. Being in the project management profession, it is important that you develop
a balance of conceptual, technical, and interpersonal skills that will enable you to analyze situations
and deal with them appropriately. Some of the important interpersonal skills critical to effectively
manage a project are:
• Leadership
• Team building
• Motivation
• Communication
• Influencing
• Decision making
• Political and cultural awareness
• Negotiation
Note: To learn more, check out the video on Saying No Comfortably.
Team Development Stages

In his group dynamics research titled "Tuckman's Stages of Group Development," Bruce Tuckman
describes the development of a project team in the following five stages.
Stage Description
1. Forming Team members are wondering whether the decision to join the team was a
wise one. They are making initial judgments about the skills and personal
qualities of their teammates, as well as worrying about how they personally
will be viewed by the rest of the team. During this stage, conversations tend
to be polite and noncommittal because people hesitate to reveal too much
about their personal views. In addition, team meetings tend to be confusing,
because the team tries to figure out who is in charge.
2. Storming Team members begin to assert themselves and control issues that emerge.
Personality differences begin to arise. Conflicts result because team members
differ in the way they want to do the project work or in the way they want to
make decisions.
Lesson 12: Executing the Project | Topic D
Stage Description
3. Norming The team begins to work productively, without worrying about personal
acceptance or control issues. There are still conflicts; however, they tend to
be focused on process issues rather than personality differences. The team
begins to operate on mutual dependence and trust.
4. Performing The team is working at optimum productivity. It is collaborating easily,
communicating freely, and solving its own conflict problems. Team
members feel safe in reporting problems, trusting their fellow team members
to help them create the best solution for the team as a whole.
5. Adjourning The team members complete their assigned work and shift to the next
project or assigned task. This last stage is sometimes known as “mourning.”
The process of forming, storming, norming, performing, and adjourning is not done in a “lock step”
fashion by the team. Team members keep coming in and going out of the team. Whenever a new
member joins, forming takes place; even if the rest of the team has already crossed the forming
stage. So, these stages are not followed one after the other but rather are situational.
Effective Project Teams

The team members should work in a collaborative way to ensure project success. It is the
responsibility of the project manager to build an effective project team and foster teamwork.
Managers should give opportunities that challenge the team members' abilities, provide support and
timely feedback, and recognize and reward good performance. To achieve highest team
performance, managers should use effective communication methods, develop trust among team
members, manage conflicts, and promote collaborative decision making and problem solving.
Project managers should seek support from management or the appropriate stakeholders to
effectively build project teams. This will help improve people skills, advance technical competencies,
build good team environment, and increase project performance.
Symptoms of Teamwork Problems

Several symptoms alert the project manager that the team is having trouble working together
smoothly.
Problem Symptom
Frustrated team members The symptoms may be complaining, negativity, or poor productivity.
Unhealthy conflict or Watch out for factionalism, in which subgroups work to their
excessive competition advantage at the expense of the project as a whole.
Pointless meetings If meetings are not productive in the sense of solving problems or
making team decisions, they can demoralize the team. Check that
meetings have a specific and useful purpose and that the purpose is
achieved. Also, keep a check on the level of participation of team
members.
Lack of confidence in the The team has to believe that the project manager has a vision, a
project manager strategy for making the vision happen, and the ability to translate the
strategy into action. If team members begin to second-guess or leave
the team manager out of the decision-making loop, something needs
to be done.
Note: Remember that all these are problems and symptoms, not causes. To deal with the
problem, first identify the root cause and then find the most appropriate solutions.
Barriers to Team Development

The project manager should be aware of barriers that can impair team performance. Some of those
barriers include:
• Ambiguous goals or roles.
• Conflicting roles.
• Poor communication.
• Environmental changes.
• Poor support from upper management.
• Conflicting personal and organizational agendas.
Training
Training is an activity in which team members acquire new or enhanced skills, knowledge, or
attitude. Training may be provided to teams, small groups, or individuals and can cover
management, technical, or administrative topics. It can range from a multi-day, formal workshop in
a classroom to a five-minute, informal on-the-job training demonstration at the employee's desk. It
may be formulated to provide generic skills or customized to provide a specific skill set that is
unique to the project. Training should be made available to team members as soon as the need
becomes apparent.
Example: Training on a Software Program

Mark is the programmer assigned to the company website project. Recently, Mark was informed that
he will have to create the entire site using a website development software program which he was
unfamiliar with because the entire organization was using the program and maintenance will be
easier if the tool was standardized.
Because Mark was the only programmer available to work on the project, Carrie, the project
manager, arranged for Mark to take a training course to learn the technical program. Not only will
Mark's training help the project achieve its objectives and abide by organizational policy, but it will
also enhance Mark's skills and help position him to advance within the organization.
Team-Building Activities
Team-building activities or team-building strategies are the specific functions or actions taken
to influence diverse individuals from many functional areas, each with their own goals, needs, and
perspectives, to work as a cohesive team for the good of the project. These activities help the team
develop into a mature, productive team. Team-building activities can be formal or informal, brief or
extended, and facilitated by the project manager or a group facilitator.
To foster team building within a project team, a project manager may ask each of the veteran
employees on the team to partner with a less experienced team member, offering coaching as
needed and sharing knowledge, information, and expertise. Working together toward a shared goal
is a great way for team members to help each other reach a higher level of performance.
Example: Team-Building Activity

Robin, a new project manager for a line of youth-oriented sportswear, decided that a good way to
get to know her team was to plan an outdoor team-building activity. Two of the designers were
located on the East Coast and will be working very closely with the manufacturing team at the
company's San Diego facility. Robin arranged to fly the two designers to San Diego to participate in
the all day, off-site ropes course. Robin also participated in the rope climbing exercise and an
experienced team-building coach facilitated the activity.
Ground Rules
Ground rules set clear expectations of the expected code of conduct from team members. This
ensures an increase in the productivity and decreases misunderstandings. Ground rules include all
actions that are considered acceptable and unacceptable to the project management context.
Example: Ground Rules for a Project

A project manager at a cellular phone manufacturing company has set ground rules for the team
members of his new project. The ground rules include:
• The project team members will be consulted about the sensibleness of the plan before the
project manager submits the plan for management approval.
• The project team members are responsible for notifying the project manager of any necessary
changes to the project plan.
• The project manager is responsible for ensuring that the team members assigned to a team leader
are made available for the project at the appropriate time.
• The project team members are responsible for informing the project manager of any potential
delay in meeting their scheduled deadlines as soon as it is known to them.
• The project team members are responsible for notifying the project manager or team leader
about any anticipated workload conflicts within the project.
Team Logistics
Team logistics is the practice of providing materials and facilities needed by the team to
accomplish their tasks. Logistics include:
• Materials needed for the project and project deliverables.
• Facilities for the team, including space, desks, phones, desktops, servers, software, and electrical
power.
• Communication equipment for non-co-located team members.
• Software and hardware to create the testbed environment.
• Travel facilities, including transportation, lodging, and other arrangements.
Co-location
Co-location refers to positioning most or all key team members in the same physical location to
make communication easier and enhance team performance and team spirit. Although most
commonly used on large projects, smaller project teams may also benefit from co-location. There
are different degrees of co-location. In some projects, some of the team members may be co-located
while others are not.
Example: Co-location for a National Campaign

A political candidate announcing a run for the presidency of the United States will establish a
national campaign headquarters office, in which the key members of the campaign's project team
will be co-located. The headquarters will serve as a base for national operations and centralize the
efforts of the candidate's political machine. The co-location of the project team will only last for the
duration of the campaign.
Reward and Recognition Systems

A reward and recognition system is a formal system used to reinforce performance or behavior.
Reward and recognition systems are generally standardized throughout an organization and
approved through corporate channels. The purpose is to motivate the team to perform well.
Rewards can include monetary gifts, additional vacation time or other perks, company plaques or
trophies, or small gifts. While it's common for the terms reward and recognition to be used
interchangeably, they are different. You can recognize a person without giving them a reward.
However, you should never reward a person without recognizing them.
• Rewards are tangible, consumable items that are given to a person based on a specific outcome
or an achievement. Rewards can also have a defined start and finish, or fixed time, and are
usually expected when the specified goal is achieved or attained. For example, receiving a bonus
after a successful year is a reward.
• Recognition is a more personalized, intangible, and experiential event that focuses on behavior
rather than outcome. Recognition is not restricted to a set time, is usually unexpected by the
receiver, and is intended to increase an individual's feeling of appreciation. For example,
receiving public acknowledgement and appreciation for helping another department that was
short staffed is recognition.
Caution: Rewarding or recognizing a team member for working overtime due to poor planning
or in an effort to receive extra pay is not an effective reward and recognition system because it
does nothing to motivate the team to perform well or to improve team morale.
Example: Recognizing and Rewarding a Mentor

Tim is an art director assigned to the company website. Often, Tim helps new team members and
provides coaching and mentoring. Carrie, the project manager, recognized Tim's extra efforts at the
weekly project team meeting by publicly telling the team how Tim has provided new members with
beneficial mentoring. She presented Tim with a gift certificate to a new restaurant as a reward and
incentive for his outstanding performance.
Individual Performance Rewards

In traditional organizations, rewarding individual performance refers to giving pay increases or
promotions to individuals based on merit. In a team environment, it is difficult to tie merit increases
to individual performance because of the mutual interdependence of the team members.
Note: Recognizing and rewarding individual team member performance is considered culturally
unacceptable in many countries, particularly China and Japan.
Team Performance Assessments

All project team members have their own areas of expertise that, if identified and used
appropriately, can help in completing the project successfully. Project team performance assessment
is performed to assess and identify the potential of each team member in order to help improve
interaction between team members, solve issues, and deal with conflicts.
A team's technical success is measured on the basis of meeting the project objectives and finishing
the project on time and within the decided budget. Continual formal or informal evaluations of the
team's performance is an effective way to improve the skills and competencies of project team
members and increase team cohesiveness.
You can follow these guidelines to assess team performance.
• Ask key questions of the team members. Questions may include their work experience, likes and
dislikes about the projects assigned to them, tasks that they are confident about, and project tasks
they will prefer to do.
• Speak to team members frequently through one-to-one meetings and regular project meetings
wherein the team may talk about project cost and schedule adherence, milestones, deliverables,
change management, risk management, and quality management.
• Provide constructive criticism and acclaim to team members, as necessary. Team successes
should be announced while reprimanding should be done in private.
• Evaluate individual performance. Project managers must listen to the team members before
responding and must be objective and flexible when necessary.
• In situations where a team member is not performing at the desired level, it may be necessary to
remove them from the team and reassign his or her work to another resource. If this is not
possible due to the workload and expertise of the other team members, it may be necessary to
replace the under-performing resource and to assign his or her work to the new resource.
Example: Developing the Beautification Project Team

A city council passed a proposal for a beautification project, including a new public park. Creation
of the new park design fell to a board of citizens and government officials. The Director of Parks
and Recreation, Elizabeth Fry, served as the project manager. Elizabeth scheduled a kick-off
meeting that included introductions and exchange of information for creating a team directory.
As the project moved through the execution phase, the team performed well for the most part. One
team member owned an Internet hosting service and made arrangements for the team to use web-
collaboration software, making team communication much easier. To reward team members' efforts,
Elizabeth offered small gifts of appreciation, which were donated by local merchants. She also made
sure that she recognized the extra effort of her team during city council meetings.
Elizabeth arranged for local landscape architects and gardeners to offer special training seminars to
interested team members, which proved to be extremely motivating. When conflicts arose, such as a
disagreement over what to use as surfacing materials in the playground, Elizabeth monitored the
situations but usually let the team work them out for themselves.
Guidelines for Developing the Project Team

Effective team development results in improved individual and team performance, which increases
the team's ability to achieve project objectives. To effectively develop your project team, follow
these guidelines:
• Recognize the project team's current stage of development in respect to the Tuckman scale and
be proactive in helping the team to be as productive as possible.
• During the forming stage, conduct activities that will help the team get to know one another
and develop a sense of mutual respect. The following is a list of activities for the forming
stage:
• A kick-off meeting that includes time for introductions.
• Creation of a team handbook documenting the team's goal, the major tasks required to
achieve the goal, and any constraints under which the team must operate.
• Publication of a team directory.
• Development of a team charter that sets forth guidelines on how team members will
behave toward one another, how they will communicate, when they will meet, how they
will make decisions, and how they will escalate problems.
• Selection of a team name or emblem.
• Initial social events to allow the team members to get to know one another on a personal
level.
• During the storming stage, use conflict management approaches to help the team work
through problems.
• In the norming stage, concentrate on issues of project performance.
• Focus on the team's productivity toward meeting the project goals.
• If the team is bogged down on certain problems, help create cross-functional teams to
work on the problems.
• Eliminate barriers that may be hampering team performance.
• Provide opportunities for recognition for the team's performance from management,
customers, or peers.
• In the performing stage, provide recognition for team performance, but stay out of the way
when the team manages its own problems. However, if project progress is sluggish, this is a
good stage to challenge the team with more stringent performance goals.
• In the adjourning stage, team members complete project work and shift to the next project or
assigned task.
• This phase indicates the transformational phase of achievement through synergy.
• In this phase, ensure that formal closure and completion of the tasks happen. Also,
facilitate the smooth transition of the project team members to the next project.
• Conduct periodic project team and one-to-one meetings to evaluate the team performance and
identify the strengths, weaknesses, and requirements of each project team member.
• Provide appropriate feedback to each project team member.
• Develop and implement a formal reward and recognition system.
• Consider co-location to enhance the team's ability to perform as a team and improve
communication. When co-location is not feasible, it becomes especially important to encourage
and enhance interaction among team members.
• Provide appropriate training and coaching to help team members acquire new or enhanced skills,
knowledge, or behavior.
ACTIVITY 12-4
Developing the Project Team
Scenario
As your project team continues executing the project plan, you are learning more about the team
members and their interpersonal skills and relationships.
1. In which of the following team development stages do team members begin to

work productively, without worrying about personal acceptance or control
issues.
○ Integrating
○ Storming
○ Norming
○ Performing
2. You notice that Rachel, a team member, consistently meets her deliverable
deadlines and is always on time with her status reports. She actively
participates in brainstorming sessions and makes valuable contributions to
the discussions. When required, she has gone beyond her responsibilities
and helped her project manager facilitate brainstorming meetings and
discussion sessions. How should you respond?
A: Answers will vary, but may include: consider publicly recognizing her in a team meeting to
reinforce desirable behavior. The project manager can also provide a comprehensive, valid, and
data-driven description of her work to the project team. The team may congratulate her and it may
give everyone motivation when needed to meet aggressive deadlines. It is also advisable to
provide positive input to her functional manager for her performance appraisal. This will boost her
motivation to go the extra mile and may lead to a raise.
3. One of your junior team members, who is assigned to gather information from
managers through an interview process, has confided in you that he is not
comfortable during the interviews. He feels that the managers are impatient
while he questions them. The other junior team members assigned to
interviews did not have any problems. What are some things you will do to
address this issue?
A: Answers will vary, but may include: as a project manager, you can talk to the team member about
certain aspects of his voice, such as intonation, and his communication style, such as nonverbal
cues. You need to identify if the team member has a problem in any of these aspects, which may
create a negative impression while interviewing the managers. Discuss with the managers to
check if this member faces prejudice.
4. Your team seems to have started to finally gel and smaller groups have
begun to work well together. In your weekly team meetings, you often
recognize one of the smaller groups and call attention to their progress.
Recently, you've noticed that the smaller groups have shifted their focus
inward and are not collaborating as much as with the team as a whole. Which
of the following might be the problem?
○ Unnecessary meetings
○ Unhealthy competition among the team
○ Less than supportive team members
○ Lack of faith in the project manager
5. As a project manager, you know that building a cohesive and productive team
is critical to the success of a project. What types of issues might be a barrier
to your successful team development?
A: Answers will vary, but might include ambiguous team goals or roles, conflicting roles, poor
communication, poor support from upper management, conflicting personal or organizational
agendas, and real or perceived changes to the organizational environment.
TOPIC E
Manage the Project Team
Virtual teams and matrix organizations make managing project teams more complicated for project
managers. However, when team members are accountable to a functional manager and a project
manager, this dual reporting relationship becomes a critical component for project success. Effective
project managers monitor team member performance and handle conflicts that might arise within
the team. In this topic, you will manage your project team.
Causes of Conflict
Conflict arises in most groups and working situations. Causes of conflict include:
• Competition.
• Differences in objectives, values, and perceptions.
• Disagreements about role requirements, work activities, and individual approaches.
• Communication breakdowns.
Examples: Characteristics of Conflicts

Project managers should be aware of certain characteristics of conflict that will help them effectively
handle conflicts when they arise. Conflict is a normal aspect of working in a team and forces the
need for exploring alternatives. It is a team aspect and openness about the situation or opinions can
resolve conflicts. While resolving conflicts, focus should be on the issues and not on individuals; on
the present situation and not the past.
Conflict Management
Conflict management is the application of one or more strategies for dealing with disagreements
that may be detrimental to team performance. Effective conflict management can lead to improved
understanding, performance, and productivity. Conversely, ineffective or nonexistent conflict
management can lead to destructive behavior, animosity, poor performance, and reduced
productivity—all of which threaten successful completion of the project's deliverables. There are
certain conflict resolution methods, and the need to follow a particular method includes the intensity
and importance of the conflict, the time given to resolve the conflict, the positions of the conflicting
parties, and the motivation to resolve conflicts on a short- or long-term basis.
Note: To learn more, check out the video on Managing Conflicts.
Example: Conflict Management Between Two Salespeople

Two salespeople accustomed to working independently, on commission, may be asked to partner
together on a project to bring in a major new account. If the two become embroiled in conflicts
regarding their commission splits and their differing sales styles, and if they cannot agree to work
together amicably for the sake of the project, the business will suffer. Conflict management
strategies will be used to help them work through their differences.
Conflict Management Approaches

The following table describes six basic approaches for handling conflicts; each is effective in
different circumstances.
Lesson 12: Executing the Project | Topic E
Approach Description
Confronting/problem solving Focuses on identifying the underlying problem and working out
alternatives or solutions for it in a way that allows the involved
parties to work through their disagreements.
Compromising Involves working out a middle ground that satisfies all parties to
some degree.
Smoothing/accommodating Focuses on de-emphasizing the differences between points of
view and focuses on commonalities.
Forcing Requires others to yield to the point of view of one side or
another. It may increase conflict and end in a win-lose situation.
Collaborating Incorporates insights and viewpoints from different perspectives,
which can lead to commitment between the conflicting parties.
Withdrawing/avoiding Involves avoiding or retreating from the conflict or potential
conflict and allowing the involved parties to work out the conflict
on their own.
Note: Different problem-solving business philosophies interpret and categorize compromise

and confrontation differently, in terms of their effectiveness and desirability; additionally,
different companies may have their own way of interpreting and implementing these approaches.
Also, there cannot be one universally effective way to resolve a conflict because conflicts are
mostly situational.
Potential Political Barriers

During the executing and controlling processes of a project, political barriers may surface that
negatively affect the working relationship between the organization performing the work and the
client or business organization. Some of those barriers include:
• The goals and objectives of each organization are different.
• No alignment exists between the different organizations.
• Scheduling issues exist as a result of vested interests.
• Issues exist regarding the resources required for the project.
• User management participation may not exist at the right levels.
A project manager needs to be aware of these barriers to prevent them from occurring or to be
prepared to address them when they do occur.
Performance Appraisals
The need for formal or informal performance appraisals often relies on project length, project
complexity, organizational policy, labor contract requirements, and amount and quality of
communication. Evaluation can come from supervisors and people who interact with the team. You
can use the performance appraisal to accomplish a number of tasks, including:
• Comparing performance to goals.
• Clarifying roles and responsibilities.
• Delivering positive as well as negative feedback.
• Discovering unknown or unresolved issues.
• Creating and monitoring individual training plans.
• Establishing future goals.
The Issue Log

The issue log or issue register is a document that is used to list, track, and assign project items
that need to be addressed by the project team. It can be used to track the project issue, each issue's
unique number, the issue status, and the individuals responsible for resolving certain issues by a
specific date. The issue log is useful for regular follow-up with the project team and must be
updated regularly. An issue log also serves as an important organizational process asset.
Figure 12-2: An issue log template that is used to register and manage project issues.
Example: Managing the Project Team in an Advertising Company

An advertising company has plans to develop a campaign for a customer over the next four months,
and David is acting as the project manager. David wanted to make sure that everything got off to a
good start, so he called a kick-off meeting. Before the meeting, he developed a set of metrics to
measure team performance and planned to monitor the progress of his team by meeting with them
individually once a week.
During the kick-off meeting, David asked the team to submit weekly status reports using email and
to use instant messaging software to stay in close contact with one another. He also let the team
know how their performance will be monitored and he set up a meeting schedule. However, there
was some conflict in the team. Two team members disagreed on the direction for their campaign.
One wanted to use a very contemporary, almost edgy approach, while the other wanted to appeal to
traditional, more conservative values. After a series of meetings with the customer's product analyst,
the team was able to find a middle ground that satisfied both team members and pleased the
customer.
From the earliest days of the project, David instituted the practice of using an issues log to track all
matters in question or dispute in the project. This became extremely valuable because the project
made it to the final stages and was ready for hand-off to the customer. Everyone was clear on
exactly what they had committed to, and the customer received the expected deliverables.
Action Items
An action item is any piece of work that needs to be performed by a resource. It is not important
enough to be included in the issue log, and it does not qualify as an activity in the project schedule.
Action items can result from meetings or they can be related to any project objective. The important
thing to remember about action items is that they can happen throughout the project, and may or
may not be formally documented.
Example: Action Items for a Visiting Client

When an out-of-town client visits, someone might be assigned to pick up the client at the airport
and deliver her to her hotel. Another person may be asked to take the client to dinner. And when
the client leaves town, another person will need to deliver the client back to the airport.
Guidelines for Managing the Project Team

Successful project team management results in a solid staffing management plan, updated and
submitted change requests, resolution of issues, good lessons learned documentation, and
productive team members. For effective project team management, here are some guidelines:
• Verify that team members are clear on their roles and responsibilities. Provide any necessary
assistance or coaching.
• Communicate the ground rules to each team member.
• Establish good internal and external communication among team members.
• Be aware of the issues and challenges of virtual teams—especially when team members are in
different time zones or different countries.
• Use proper email etiquette. Typing in all uppercase is synonymous to shouting. Use the
phone or a personal visit to discuss contentious issues.
• Provide cultural-sensitivity training to foster smooth communication for global project teams,
especially when English is a second language. Keep communication simple and to the point.
Eliminate slang, sports terms, or jokes as they often suffer in translation or can possibly
offend others.
• Adjust the communications plan to meet the needs of individual team members, keep
information flowing among the team, and provide feedback.
• Ensure that the project team is informed about key milestones and gate reviews when customer
or senior manager approval is required.
• Monitor performance of team members on an ongoing basis.
• Speak individually and directly to each team member. Don’t rely on email messages or
monthly reports. Personally observe the team's progress and the intangibles (such as morale,
engagement, or cynicism) that are at play.
• Develop a set of metrics to measure team performance for each project. Establish tolerances
so that corrective actions can be taken when needed. Use a management-by-exception
approach to avoid micromanaging the team.
• Provide constructive feedback to team members on a frequent basis. Performance reviews
can be formal or informal. If disciplinary actions are taken, these must be in writing to avoid
any misunderstanding.
• Consider additional training for those team members who need to improve their
performance.
• Consider a quality audit to verify that the team is headed in the right direction to meet the
project’s quality requirements. An effective quality audit team needs to be independent from the
project team.
• Establish how conflicts will be resolved, including escalation procedures.
• Manage conflict using the appropriate approach for the circumstances and individuals involved.
Regardless of the approach, apply the following principles:
• Allow people to have their say—giving both sides a chance to state their case. Demonstrating
respect and acknowledging people's different positions are a must to effectively addressing
conflicts.
• Actively listen to what is being said. Paraphrase or ask questions to verify understanding.
• Find those areas at issue where both sides are in agreement.
• Encourage both sides to find an agreeable win-win resolution to the problem.
• Keep the group focused on the goal of finding a resolution to the problem.
• Set expected ground rules, based on the communications management plan, for the team to
operate on.
• When conflict occurs among team members or between the team and other organizational
entities, it may be effective to confront the problem head on—focusing on the problem. It
may be advantageous to try to defuse conflicts early to avoid escalation.
• Establish an issues log to track and assign project issues, and enable regular follow-up with the
project team. Hold specific team members accountable for resolution of issues.
ACTIVITY 12-5
Managing the Project Team
Scenario
Work on GCCG Bank continues to move along. All deadlines are being met. However, one of the
masonry supervisors, Joe, sends you an email message detailing a recent argument between the
plumbing contractor and the tile contractor assigned to the project. He is concerned that their
possible inability to get along may jeopardize the project.
1. Given the masonry supervisor's email message about the conflict between
the plumbing and tile contractors, what should you do next?
○ Wait for results of the weekly masonry work progress report.
○ Investigate directly to confirm their inability to get along and its probable impact on the team.
○ Provide constructive feedback to the contractors.
○ Consider offering an online conflict resolution course for the contractors.
2. When speaking with the contractors, you discover that the tile contractor feels
that the plumber is spending too much time at lunch and on breaks, which
causes the tile contractor to have to work past 6:00 each day. The plumber
responds that he takes a normal lunch break. What can you to do resolve this
situation?
A: To help resolve this conflict, you can review the expected ground rules that were set at the
beginning of the project based on the communications management plan. Confirm the amount of
time that should be used for lunch and breaks and verify the facts of the breaks being taken.
Remind the plumber of the team's ground rules and schedule expectations, and his
responsibilities on the project. Document the incident and monitor the situation as the contractors
continue to work together to complete the project.
3. The roofing team has been working effectively, meeting all deadlines and
experiencing no personnel problems. What approach should you take when
monitoring this team?
A: Give positive feedback. Providing constructive feedback to team members on a frequent basis
enables the team members to know that they are on track. Speaking to team members one-on-
one is an excellent way to maintain communication and monitor progress. Also identify the
reasons behind good team work and document it for future use.
TOPIC F
Distribute Project Information
During project planning, you developed a communications management plan describing the team's
approach to project communication. Now that work results are being accomplished, you need to let
project stakeholders know how the project is progressing. In this topic, you will identify the process
involved in distributing project information.
In a project, information provides critical links for successfully meeting the project’s objectives.
Distributing project information efficiently and effectively ensures that meaningful and appropriate
information is available to project stakeholders. This in turn assists stakeholders in making
appropriate decisions by giving a clear view of the project progress.
Information Distribution Tools

Information distribution tools are distribution methods and presentation tools that are used to
provide project information to stakeholders. The tools include:
• Email
• Hard-copy documents
• Presentations
• Video conferencing
• Meetings
• Phone calls
Example: Information Distribution to Stakeholders

As the company website project continues through the executing process, a huge amount of project
information is generated and collected. Carrie, the project manager, is diligent in providing the
stakeholders with the information they need to make sound decisions. First, she and her team
review the communications management plan to make sure that they implement an information
retrieval system.
The executive stakeholders present a challenge regarding project communication. On the one hand,
they need to make decisions about the project and require enough information to support their
decision-making, but they are impatient with lengthy presentations. So Carrie prepares a clear,
concise summary of key information and a detailed report with charts and status updates for those
who are interested.
Carrie invites the stakeholders to ask questions or provide other feedback. She monitors the
communication system to make sure that messages are getting through as planned and that the
recipients fully understand the content.
Guidelines for Distributing Project Information

Effective information distribution ensures that project information is appropriately dispensed to
project stakeholders. Getting the necessary information in a timely manner enables the stakeholders
to make decisions regarding the project in time to make a difference. To distribute project
information effectively, follow these guidelines:
• Create and distribute project information, such as project records, reports, and presentations, in
accordance with the communications management plan.
• Use effective communication skills to exchange information.
• Use the communications plan as a guide to ensure that the appropriate level of
communication occurs among all project stakeholders.
Lesson 12: Executing the Project | Topic F
• Monitor the effectiveness of communications and adjust them accordingly, especially when
scope changes occur or risks are realized.
• When communicating new information, include constraints and assumptions, and the impact
of that information.
• Verify the immediacy of the need for information and use the appropriate means to
communicate it, depending on its urgency.
• Increase communication when stakeholders indicate they need more information or as the
project moves into a phase that affects them more directly. Decrease communication when
the phase of the project has little to do with a particular stakeholder.
• Modify communication schedules as needed to correct problems that arise.
• Monitor the need to obtain additional information, including feedback, and adjust the plan
based on that feedback.
• Verify that new team members are familiar with technologies and tools you are using for
communication.
• If schedule changes or risk becomes more likely, ensure that you communicate all changes to
the appropriate people and obtain necessary sign-offs.
• Ensure that your reports and other communication are clearly and concisely delivered.
• Ensure that communication delivers a consistent message to all audiences.
• Use an information retrieval system to provide stakeholders' access to project information.
Everyone should have access to the information needed. Whether manual, computerized, or a
combination of both, make sure that your system complies with the following standards:
• The system has sufficient storage capacity to hold the necessary project information.
• The system follows any security protection protocols established in the communications
management plan so that sensitive information can be accessed only by appropriate
stakeholders.
• The system provides a method of version control to protect data and to ensure that everyone
is working on the same, most recent document.
• The system is organized to meet the needs of the project and the stakeholders.
• Select the appropriate information distribution method for distributing project information.
• Sending an email message announcing that a report is posted on the intranet site.
• Making a telephone call to schedule a one-on-one meeting.
• Taking notes of phone calls to provide a written record of the communication.
• Making a presentation to highlight the important points in a report.
• Monitor the communication system for feedback to make sure that messages are getting through
as planned. If individuals or organizations are not able to send or receive messages adequately,
identify the problem and adjust the communications management plan, information distribution
method, or retrieval system accordingly. This might include speaking to individuals directly to get
a more straightforward answer.
• Analyze the effects on project execution when unexpected requests for information surface.
Take appropriate action to make changes to the plan as necessary. Document such unexpected
requests for future use.
ACTIVITY 12-6
Distributing Project Information
Scenario
A primary PMO goal for all projects during the GCCG Bank Start-up program is consistent and
timely reporting of project information. This was in large part the justification for the GCCG e-
Banking Portal project and the implementation of the PMIS at GCCG. However, the project
managers at GCCG are now concerned that they will be spending more time creating reports for
senior management than actually managing their projects. You are meeting with Sharon Williams,
the new PMO Director, to discuss these concerns.
1. An automated information retrieval system will provide stakeholders with

access to project information via the intranet. What, if any, concerns do you
have with relying on this type of distribution of project information to
stakeholders?
A: Answers will vary, but may include: while this may be a good method for making information
available to stakeholders in an efficient manner, the information is left up to the stakeholders to
interpret. One-on-one meetings will still be necessary to provide an overview of how the
information reflects the reality of the project status. Also, the information must be carefully
screened for accuracy. Consider the importance of version control; they should be able to share
information without losing earlier versions of the material. Consider whether only selected people
should have the ability to modify the content.
2. As people strive to meet their deadlines, reporting the status of activities can
become a low priority. This is a problem when you are trying to distribute up-
to-date information on the status of the project. What are some things that you
could do to make sure that people report accurate and timely information to
you?
A: Answers may vary, but may include: schedule weekly project status meetings or meet with
resource groups on an individual basis. If they are using the same document to report their status,
you may consider implementing a date and time stamp for version control.
3. You are asked by your manager to provide the senior executives your
project's progress to date. Which information distribution methods will be most
appropriate in this situation?
○ Send an email message based on status notes that you took over the phone while communicating
with team members.
○ Make a presentation to the senior executives highlighting the important points in the report.
○ Make a telephone call to schedule one-on-one meetings with each executive.
○ Send an email message announcing that a report is posted on the intranet site.
4. Which standard should an information retrieval system need to comply with?

○ It should provide a method of version control.
○ It should have limited storage capacity.
○ It should be computerized.
○ It should be open for access to all.
5. True or False? Once you have established an information communications

system, you should continually monitor the system for feedback.
☐ True
☐ False
TOPIC G
Manage Stakeholder Relationships and
Expectations
You informed project stakeholders about how project resources are being used to achieve project
objectives. As project issues arise, you need to address and resolve them with the appropriate project
stakeholders. In this topic, you will identify the process involved in actively managing stakeholder
relationships and working within their expectations.
Managing communication to satisfy the requirements of and resolve issues with project stakeholders
can make or break a project. Actively managing relationships with your project's stakeholders and
working with their expectations increases the chances that your project will remain on track and that
issues are resolved right away to avoid disruptions at a later stage in the project life cycle.
Project Meetings
Project meetings are meetings held among project stakeholders to discuss or convey project-
related information. Other meetings, such as team meetings, management meetings, and company
meetings, may also include discussions about each project.
Some considerations for conducting effective project meetings include:
• When a meeting is scheduled, an agenda should be written and distributed beforehand so the
attendees know what to expect during the meeting.
• The meeting should be led by someone who is familiar with the topics to be discussed, but this
person does not necessarily need to be the project manager.
• Discuss any topics outside the agenda at the end of the meeting, if time permits, or defer them to
another meeting.
• The meeting should begin and end on time to respect the individual schedules of the attendees.
• And finally, meeting minutes should be prepared, distributed to the appropriate stakeholders,
and archived for future reference.
Project kickoff meetings are particularly important, because they set the tone for communications
throughout the duration of the project. The agenda for a project team that is meeting for the first
time will include:
• Reinforcing project assignment documents.
• Introducing the team members.
• Stating the project goals and expectations.
• Sharing contact information of the team members.
• Establishing timelines and assigning project tasks.
• Discussing potential project issues if any.
• Setting the ground rules.
Expectation-Gathering Techniques
Expectation-gathering techniques help maintain and update the values and expectations of
stakeholders. Stakeholder expectations are continuously gathered throughout the project. The
progress of the project can be measured against the expectations and stakeholder satisfaction.
Conflicts in stakeholder expectations must be resolved and brought to a consensus. Common
techniques to gather stakeholder expectations are brainstorming, interviews, and surveys.
Expectation-gathering techniques provide the ability to:
• Compare the project's benefits delivery against the estimated values and expectations.
Lesson 12: Executing the Project | Topic G
• Analyze and make recommendations for change when value estimates and expectations are not
met.
• Regularly update deliverables with changes, current information, and results.
Example: Managing Stakeholders in an Insurance Company

Alex is a project manager in an insurance company. His team has been developing a new type of
insurance plan for car owners. When the project kicked off, Alex created a communications plan
and distributed it to the project stakeholders for their review. He met with them and got their
feedback, so now a communications plan is in place that seems to be working well.
The communications plan set up a regular status meeting. Before each meeting, Alex prepares a
summary of the project status. The stakeholders appreciate this brief summary. Alex also always
gives the stakeholders an opportunity to bring up concerns. In the most recent meeting, the
stakeholders had an issue with the discount the new insurance plan offers to people with clean
driving records. While the stakeholders think this is a good offer, they would like to extend this offer
to single car owners with no co-ownership.
Alex agreed that this change is manageable and immediately logged this change in requirements into
the database for it to be analyzed and processed through the integrated change control system.
The Stakeholder Expectations Matrix

A stakeholder expectations matrix is a document that contains the names of project stakeholders,
their expectations from the project, and their influence on the project. This helps the project team
understand the commitment levels needed to provide accurate attention on key milestones in the
project. The stakeholder expectations matrix may be created through the stakeholder analysis
process.
Stakeholder Expectations Matrix Mapping

Stakeholder expectations matrix mapping is the process of mapping goals and expectations of senior
managers and sponsors within an organization. Goals and expectations are derived or identified by
conducting interviews with key stakeholders along with the business case, project road map,
sponsors, and contracts. The matrix is updated continuously with the goals and expectations of new
stakeholders as the project planning phase progresses.
The stakeholder expectations may change during the planning and executing stages of a project.
Therefore, it is necessary that the matrix is updated regularly and reviewed by everyone related to
the project.
Figure 12-3: An example of the stakeholder expectations matrix mapping document.
Expectations Mapping Objectives

The main objectives of the expectations matrix mapping are:
• Cultivating an understanding of the stakeholder groups.
• Identifying and updating stakeholder values and expectations.
• Monitoring and controlling project progress against the expectations and assessing stakeholder
satisfaction.
• Defining strategies for resolving conflicts among stakeholder expectations and obtaining
consensus.
• Communicating how the project delivers the benefits with the estimated values and expectations.
• Identifying and recommending adjustments in the project if value estimates and expectations are
not met.
• Updating deliverables with changes, current information, and results.
Expectations Mapping Matrix Components

The expectations mapping matrix includes several components.
Expectation Describe the expectation that is to be met by the project.

Validation and sign-off Validate and sign-off the criteria used to measure the progress
when the activity is complete or when the expectation is met.
This is usually conducted by the person who defined or
provided the expectation.
Priority Prioritize the level of importance and resources that are assigned
to meet the expectation using an appropriate scale of measure.
Process to meet expectation List the processes and methods used to meet the expectation.
Responsibility for process List the names and roles of people who are responsible for
ensuring that the processes and methods defined to meet
expectations are being performed.
Measure of success List the measurement criteria that are to be used for each
expectation.
Goals List the performance goals of each expectation.
Reporting progress List the name and role of the person responsible for reporting
the progress of meeting the expectation against the standard
measures.
Schedule frequency Determine the frequency of reporting and communicating
progress against the measurement criteria.
Current rating Capture and identify the current progress toward meeting the
expectation.
Guidelines for Managing Stakeholder Relationships and

Expectations
Actively managing stakeholders ensures that your stakeholders understand the progress your project
is making. Managing stakeholder expectations will support your team's project schedule, enhance
team performance, and decrease project interruption. To effectively manage stakeholders, follow
these guidelines:
• Assess the communications needs of each stakeholder during the planning phase of the project.
When managing stakeholders, the project manager needs to follow the plan and periodically
obtain stakeholder feedback to make any required adjustments to the plan.
• Hold face-to-face meetings with stakeholders when possible because face-to-face meetings are
most effective. Assessing body language provides the project manager with an opportunity to
determine whether or not the stakeholder is pleased with the project’s progress. For example, if
during a project update the stakeholder is frowning, has arms folded, and is looking at his shoes,
it is essential that the project manager determine the stakeholder’s concerns. By managing
stakeholder expectations, the project will continue to have their buy-in.
• Use a suitable alternative when face-to-face meetings are not practical, such as in global projects.
If available to the project team, some useful substitutes might include video/web conferencing,
webinars, desktop sharing, net meeting, and video chat.
• Create a stakeholder expectations matrix to help the project team members ensure that all of the
stakeholder expectations are implemented in the project. Ensure that the stakeholder
expectations are collected frequently.
• Periodically update the stakeholders with the status of the project.
• Be flexible when communicating with the project sponsor or other members of senior
management. Be prepared to provide a summary of project status in five minutes or less if the
need arises. Flexible communication is the ability to meet the specific communication
requirements of each stakeholder. For example, one may prefer extensive numerical data while
some others may just prefer a synopsis.
• Use an issue log to assign, track, and resolve open issues that are of interest to stakeholders.
Issues that remain unresolved can lead to project delays.
• Change requests need to be processed to update the communications plan reflecting changes in
project staffing.
• Take corrective action as needed to bring project performance in line with customer
expectations.
• Document lessons learned to reflect the causes of issues and changes made to rectify them.
ACTIVITY 12-7
Managing Stakeholder Relationships and
Expectations
Scenario
The GCCG Bank project faced several challenges, including staffing changes and construction
problems. Although you consistently informed stakeholders of all changes using the protocols
outlined in the communications plan, several stakeholders have been expressing concern that the
project has gotten off track.
1. Stakeholders are worried about the current state of the project. How should
you handle their concerns?
○ Follow processes outlined in the communications plan.
○ Conduct a face-to-face meeting with a clear agenda targeting their specific concerns.
○ Document lessons learned.
○ Take corrective action.
2. Two stakeholders are out of town on a business trip and are available
sporadically. Another has an extremely busy schedule and can't squeeze
another lengthy meeting into his day. You know it is important to have face-to-
face interaction with each stakeholder. How can you accommodate their
needs? Select all that apply.
☐ Send a memo via email.
☐ Use video conferencing.
☐ Hold a brief summarization meeting.
☐ Use an instant messaging service.
3. During the face-to-face meeting with project stakeholders, you offer a recap of
some contractor changes that occurred. It became necessary to add another
electrical contractor to the team, which resulted in changes to the project cost
baseline. While you are talking about this issue, you notice that one of the
project stakeholders continually looks down at the floor and rapidly taps her
pen against the table. What does her behavior indicate?
A: Assessing body language provides the project manager with an opportunity to determine if the
stakeholder is pleased or not with the project’s progress. Based on her body language, you can
determine that the project stakeholder is uncomfortable with the information you are providing to
the group. She may otherwise be preoccupied with other thoughts, which in her opinion are of
much higher priority than the meeting. You can draw her into a conversation to determine what
aspect of the information is unsettling to her. Her answer will tell you if there are outstanding
issues to address in regards to project cost baselines or any other issue that may be of concern to
her.
Summary
In this lesson, you managed project execution. Executing your project according to the project
management plan ensures that your project team is on the same page and that your project fulfills
the project requirements and delivers necessary deliverables.
What aspects of executing the project plan have you found to be the most
challenging? Why?
A: Answers will vary, but may include: among the various processes involved in project execution,
developing the project team is one of the most challenging processes. Because projects depend on
collective performance of the project team, acquiring and improving skills required for the project,
communicating project information to all team members, and motivating them to improve performance
becomes one of the most important tasks. These tasks may become challenging when the project
team members are inexperienced and require a learning curve and when the project team is spread
across different countries or organizations, which makes communication among the team members
difficult.
Which tools and techniques will you use to more effectively execute projects in
the future?
A: Answers will vary, but may include: the PMIS, quality auditing, negotiation, training, team-building
activities, observation and conversation, conflict management, project performance appraisals,
process analysis, interpersonal skills, and lessons learned.
Lesson 12: Executing the Project |
13 Executing the
Procurement Plan
Lesson Time: 1 hour
Lesson Introduction
Earlier in the process, you planned project procurement. Now, it is time to execute your
procurement plan. As the project manager, it is your responsibility to make sure that your
project is completed on time and on budget. Obtaining proposals or bids from vendors
gives you confidence that work products will meet project objectives at a fair and reasonable
cost. And once you have those documents in hand, you need to be able to follow
established techniques for evaluating them accurately and choosing from among them. In
this lesson, you will execute project procurement by requesting vendor responses and
selecting a vendor.
Lesson Objectives
• Obtain responses from vendors.
• Determine which vendors to use for the project.
TOPIC A
Obtain Responses from Vendors
During project planning, you prepared a procurement document. Now, you are ready to obtain bids
or proposals from prospective vendors to meet project purchasing requirements. In this topic, you
will obtain responses from vendors.
Obtaining proposals or bids from vendors gives you confidence that the work products will meet
project objectives at a fair and reasonable cost. Mastering the tools and techniques for requesting
vendor responses ensures that you obtain relevant, accurate, and appropriate responses from
prospective vendors.
Qualified Vendors
Qualified vendors are vendors who are approved to deliver products, services, or results based on
the procurement requirements identified for a project. The list of qualified vendors can be obtained
from historical information about different vendors who delivered resources required for prior
projects executed in your organization.
If the resources you require are new to the organization, you may need to do some research in
collaboration with your Purchasing Department to identify qualified vendors for each resource. You
can perform an Internet search using specific search criteria to expedite the process. This research
will generate a list of possible vendors, and you will need to interview the prospective vendors, visit
their work sites, review work samples, interview their references, check with certification boards, or
use other approaches to validate whether they qualify as vendors for the procurement requirements.
Many vendors publish an Internet knowledge base that contains information about their products
and services, where you can search for specifics that will help you determine whether a company
should be included in the qualified vendors list.
Note: In case further information is required about the prospective vendors, you can send an
RFI to each of them to gather details about their capabilities.
Example: Qualified Vendors Selection by Mixed Messages Media

Mixed Messages Media invites proposals from vendors for setting up a Wi-Fi network for their new
corporate office in New York. The Wi-Fi network needs to meet all specifications of the newly
announced governmental regulations. On reviewing the list of their old suppliers, Mixed Messages
Media found that none of the suppliers could provide them with a Wi-Fi network that could enable
them to meet the governmental regulations.
An advertisement requesting the submission of information about prospective vendors was
announced in all the national dailies and business journals. There was an overwhelming response
from a large group of vendors. Based on the vendors' information, Mixed Messages Media was able
to generate a list of 10 prospective qualified vendors. The qualified vendors were then called in for a
conference, where each vendor was asked to demonstrate their capability to deliver the required
product. At the end of the presentations, Rudison Technologies and Develetech Industries were
selected as the qualified vendors for the Wi-Fi network installation because they met most of the
requirements and standards prescribed by Mixed Messages Media. Later, Mixed Messages Media
sent the RFP to these two organizations and continued the process of vendor selection.
The Qualified Vendors List

A qualified vendors list contains details regarding vendors who meet the organization's
requirements and to whom requests can be sent. It is sometimes known as an approved vendor list.
The RFI for each vendor is scrutinized and evaluated for qualifying the vendors. The term “qualified
Lesson 13: Executing the Procurement Plan | Topic A
vendors” does not mean that the organization is bound to do business with them. It only indicates
that when needed, the organization will interact with the vendors and RFPs, IFBs, or RFQs will be
sent to the qualified vendors. Generally, vendor identification number or vendor registration
number is assigned to the qualified vendors.
Note: In project management, the following terms are frequently used interchangeably: seller,
vendor, supplier, and contractor.
Figure 13-1: A qualified vendors list for the Computer Network Upgrade project.
Bidder Conferences
Bidder conferences are meetings conducted by the buyer after issuing an RFP but prior to
submissions of a bid or proposal by the vendors. During this meeting, the buyer explains the
requirements, proposed terms, and conditions, and the buyer clarifies the vendors' queries. The
buyer facilitates the conference to ensure that all prospective vendors have a clear and common
understanding of the technical and contractual requirements of the procurement. Bidder
conferences can also be called vendor conferences, pre-bid conferences, pre-proposal conferences,
or contractor conferences.
Example: Hosting a Bidder Conference for the Wi-Fi Network Project

Mark holds a bidder conference, which is attended by all the prospective vendors. During the bidder
conference, a number of clarifications are sought by the vendors regarding the procurement
specifications and these are addressed by the project team. The updated procurement documents are
now sent along to each prospective vendor. Vendors submit their proposals in response to the RFP
which has been previously sent to them.
Guidelines for Obtaining Responses from Vendors
A well-crafted vendor response request, sent to carefully selected vendors, ensures that you obtain
relevant, accurate, and appropriate responses from prospective vendors. To obtain responses from
vendors, follow these guidelines:
• Gather and review all your procurement documents for accuracy and completeness.
• If necessary, obtain or develop a qualified vendors list.

• If your organization has a centralized Purchasing Department, there might be available
qualified or approved vendor lists, or historical information about different vendors.
• You may also consider talking to the people in your company who will be using the resource
being sought, to find out more information about their needs.
• If the resource you require is new to your organization, you may need to collaborate with
your Purchasing Department to identify qualified vendors for that resource. You can research
using the Internet, telephone and business directories, library services, and trade and
professional organizations. After identifying vendors, you will need to take additional
qualification steps, such as interviewing the prospective vendors, visiting their work sites,
reviewing work samples, interviewing their references, checking with any available
certification boards, or other approaches to ensure that they are indeed qualified candidates.
• Determine how and from whom you will request vendor responses.
• If your list of qualified vendors is sufficient for the work being procured, you may decide to
send procurement documents to only those prospective vendors.
• If your list is insufficient, you might use advertising to expand the list of potential vendors. If
your project is a subcontract to a large government project, you may be obliged to advertise
the request. Check with your legal consultants or Purchasing Department experts on the
wording for the advertisement. Most government projects require that bids or proposals be
publicly advertised to ensure that no supplier has unfair advantage over others. Such
notification may be in formats that include local newspapers, government publications,
professional journals, and other appropriate venues.
• Send the request for vendor responses to the identified prospective vendors. The type of request
sent to prospective vendors is dependent on the procurement criteria set for the project. The
types of requests sent to obtain responses include RFB, RFP, and RFQ.
• If necessary, hold a bidder conference to allow prospective vendors to ask questions and seek
clarification about the deliverables and the requirements for preparing their responses.
• The questions raised at a bidder conference will be of great interest to the team who prepared
the original procurement documents. If there are common misinterpretations of words or if
important information is found to be missing, capture this to improve future procurement
documents. This might involve modifying the standard documents or templates.
• If the bidder conference points out serious problems that will cause the vendor's proposals to
be in error, you need to amend the original procurement documents and send amended
versions to the original vendor list. The amended sections must be clearly identified and the
areas of difference annotated.
• Respond to questions asked during the bidder conference. Respond in writing to each recipient
of the RFP, so they can include that information in their proposals. This will ensure that all
prospective vendors are operating “on the same page.”
ACTIVITY 13-1
Obtaining Responses from Vendors
Scenario
Working with David Anderson, GCCG’s Procurement Manager, you planned the GCCG e-Banking
Portal project's hardware and software procurement, and you are ready to manage this phase of
work by soliciting proposals from prospective vendors. An RFP is created and the procurement
manager has approved it for release to potential hardware and software providers. The next step is
to send the RFP to prospective hardware and software providers.
1. What do you think will be the most appropriate method of finding qualified
hardware and software providers for the GCCG e-Banking Portal project?
A: Answers will vary, but may include: GCCG may have a list of hardware and software providers
that the bank has used in the past. Placing advertisements is also a good option.
2. There are only two reasonably qualified hardware and software providers in a
20-mile radius of the bank. You decide to expand your vendor list outside of
your local area. What methods will you use to do this?
A: Answers will vary, but may include: to find qualified vendors, you can perform an Internet search,
review professional journals, and contact the Procurement Department or a project software sales
representative in your organization. Once you compile your list, you may consider asking the
vendors for references.
3. What is the purpose of a bidder conference?

○ To allow prospective vendors to ask questions.
○ To obtain bids from prospective vendors.
○ To expand the list of prospective vendors.
○ To develop a list of qualified vendors.
4. Based on the scenario, will you conduct a bidder conference? Why or why
not?
A: Answers will vary, but may include: based on the initial feedback and queries that you get from
various vendors in response to your RFP, you may decide to conduct a bidder conference. This
will allow prospective vendors to seek clarification about the deliverables and the procurement
requirements for preparing their responses. However, if the proposals from various vendors
indicate a proper understanding of the requirements, you will not require a bidder conference
because this incurs additional costs, time, and effort that need not be expended.
TOPIC B
Select Project Vendors
As a result of requesting vendor responses, you now have proposals, quotes, or bids from
prospective vendors. Now, you can determine which vendor best meets your project's time, cost,
and quality commitments. In this topic, you will determine project vendors.
You received proposals from three web designers for your website project. You've worked with two
of them in the past. The third person was recommended by a senior level executive in your
company. All three proposals are within your price range. Because rolling out your new website is a
high-profile project for the business as a whole, you can't afford to make a mistake by selecting the
wrong vendor. Using best practices to select the best vendor helps you avoid making critical errors
before signing a contract to purchase products or services.
Vendor Proposals
Vendor proposals are responses submitted by potential vendors that are prepared in accordance
with the requirements stated in the procurement documents. The proposal should demonstrate an
understanding of the procurement need, describe the vendor's ability to provide the service or
product, propose methodology for providing the service, and detail the price for delivering the
desired goods or services.
Short-Listing (Screening)
Short-listing, or screening, is a technique used to reduce the number of proposals that have been
received to a more concise number for further analysis. In this process, the buyer might use an
abbreviated scoring system or internal discussions to remove some proposals from further
consideration.
Proposal Evaluation Techniques

Proposal evaluation techniques are a set of methods to evaluate, create a short-list, and select a
vendor. The fundamental part of any evaluation technique is the set of evaluation criteria. The
evaluation techniques may suggest subjective or objective criteria or a combination of both. Though
a weighting system is the most commonly used evaluation technique, short-listing (screening) or
independent estimating are also used in combination.
Independent Estimates
Procuring organizations may sometimes prepare their own independent cost estimates or have an
external professional estimator prepare the project's estimate of costs. If a proposal comes in at an
unexpectedly high or low price, you may want to obtain an independent estimate to verify that the
proposed price is reasonable. Any significant differences in the cost estimates can indicate that the
procurement SOW was ambiguous, deficient, or that the vendors either misunderstood or failed to
respond completely to the procurement SOW.
Weighting Systems
A weighting system is a method for quantifying qualitative data to minimize the influence of
personal bias on source selection. By assigning numerical weights to evaluation criteria, you can
objectively prioritize the criteria that best meets the needs of your project. A weighted scorecard is
one type of weighting system.
Lesson 13: Executing the Procurement Plan | Topic B
In a weighted scorecard, evaluation criteria are grouped in general categories and each category is
given a numerical weight. A vendor is rated on a scale of zero to five for each of the technical
criteria. These numbers are totaled and then multiplied by the weighting factor to determine the
weighted score for that category.
In this example, the company received scores of four, three, and five in the three technical criteria,
with a total score of 12 out of a possible 15. When multiplied by the weighting factor, the weighted
technical score is 240 out of a possible 300. The weighted score for each of the other categories is
calculated in a similar manner. Then all the weighted scores are totaled to obtain a grand total score.
Figure 13-2: A sample weighted scorecard.
Procurement Negotiation Stages

Procurement negotiation is the process of coming to a mutual agreement regarding the terms and
conditions of a contract. Before a contract is signed by both parties, a number of procurement
negotiation stages are conducted between the concerned parties to arrive at a consensus on the
terms and conditions of the contract.
Five different stages for contract negotiation are available.
Stage Description
1. Introduction All parties become acquainted and the overall attitude of the negotiation is
established; this tone is largely set by the buyer’s team leader—normally,
the person with authority to sign the contract will lead the contract
negotiation team.
2. Probing Each side attempts to learn more about the other’s real position.
Stage Description
3. Bargaining Give-and-take discussions take place to arrive at the best possible
agreement for all.
4. Closure The tentative agreement is revised and everyone has an opportunity to
tweak the results.
5. Agreement The team tries to ensure that all parties clearly understand and agree to all
terms and conditions of the contract.
Types of Agreements
During procurement, you might encounter some of the following types of agreements. The
following agreements will be discussed in more detail in the following pages.
• Memorandum of understanding
• Letter of intent
• Service Level Agreement (SLA)
• Contract
• Fixed-price
• Cost-reimbursable
• Time & Material (T&M)
• Procurement Contract
• Term contract
• Completion contract
Memorandum of Understanding
A Memorandum of Understanding is an agreement between two or more parties to form a
business partnership. It is not legally binding, but is more formal than a "gentlemen's agreement." It
is used where the parties do not wish to enter into a formal contract, or when a legally enforceable
contract cannot be created.
Similar to a memorandum of understanding, a letter of intent is a non-binding document that
outlines the agreement between parties before the official agreement documents are finalized and
signed.
SLA
A Service Level Agreement (SLA) is a contract between an organization that provides a service,
and the user of the service. The contract specifies what the customer will receive and the
performance standards the provider is obligated to meet. Performance standards can include, for
example, the percentage of time the service will be available; help desk response time; and
performance benchmarks that the level of service will be compared to. In many instances, penalties
and exclusions are included in the SLA. Information technology companies frequently use SLAs.
Contracts
Contracts are mutually binding agreements that detail the obligations of both parties; in terms of
procuring work, they relate to both the buyer and vendor. Although contracts are customized for
each agreement, they tend to fall into a number of standard patterns, such as fixed-price, cost-
reimbursable, or Time and Material (T&M) contracts.
Example: A Fixed-Price Contract

A project team is procuring the manufacturing unit for its new line of footwear. After seeking the
advice of SMEs and reviewing historical records of similar projects, the team estimates the
manufacturing cost at $25,000. Including the manufacturer's fee of $10,000, the entire contract will
be worth $35,000. This is an example of a fixed-price contract because it establishes a definitive
determined total price for a product or service.
Contract Components
In general, any contract must include these elements, at a minimum:
• Description of the project, its deliverables, and scope.
• Delivery date or other schedule information.
• Identification of authority, where appropriate.
• Responsibilities of both parties.
• Management of technical and business aspects.
• Price and payment terms.
• Provisions for termination.
• Applicable guarantees and warranties.
• Limits of liabilities or damages.
• Indemnity or compensation paid for losses incurred.
• Insurance requirements.
• Nondisclosure, patent indemnification, non-compete, or other applicable legal statements.
• Other applicable terms and legal requirements.
Contract Types
Three common types of contracts are used in the procurement of goods and services. Each type of
contract has risks associated with it for both the buyer and seller. Some contract types are riskier for
the buyer, while others are riskier for the seller.
Contract Type Description
Fixed-price Also called a lump sum contract, it establishes a total price for a product
or service. The vendor agrees to perform the work at the negotiated
contract value. This value is based on anticipated costs and profit, as
well as a premium to cover unforeseen problems. The contract may
include incentives for meeting requirements such as schedule
milestones. Fixed-price contracts provide maximum protection to the
buyer but require a long time for preparation and bid evaluation.
Because this type of contract is tied to a fixed cost, it is most suited to
projects with a high degree of certainty about their parameters.
Types of fixed-price contracts include:
• Firm Fixed Price Contracts (FFP): This is a commonly used
contract type favored by most buying organizations because the
price for products or services is set at the outset and not subject to
change unless the scope of work changes.
• Fixed Price Incentive Fee Contracts (FPIF): This fixed-price
contract is flexible in that it allows for deviation from performance.
Financial incentives are tied to achieving metrics that are agreed to
earlier.
• Fixed Price with Economic Price Adjustment Contracts (FP-
EPA): This is a fixed-price contract type with special provision to
allow predefined final adjustments to the contract price due to
changed conditions, such as inflation changes or cost increases or
decreases for specific commodities such as fuel, and for currency
fluctuations. An FP-EPA contract protects both buyer and vendor
from external conditions beyond their control. It is used whenever
the vendor's performance period spans a considerable time period.
The Economic Price Adjustment (EPA) clause must relate to a
reliable financial index, which is used to precisely adjust the final
price.
• Purchase Order (PO): This can be a type of fixed-price contract, or
a separate document that is appended to a contract. It is sent from a
buyer to a vendor with a request for an order. When the vendor
accepts the purchase order, a legally binding contract is formed. A
purchase order is sometimes used for commodity items where the
specifications are clear; for example, in a catalog.
Contract Type Description

Cost-reimbursable This contract provides vendors with a refund of the expenses incurred
while providing a service, plus a fee representing vendor profit. Incurred
costs are generally classified as direct costs (those incurred for the
project), or indirect costs (costs allocated to the project by the
organization as a cost of doing business). These contracts sometimes
include incentives for meeting certain objectives, such as costs,
schedule, or technical performance targets. This approach is tied to the
actual cost to perform the contract, and therefore is most suitable if
project parameters are uncertain.
The cost-reimbursable contracts include:
• Cost Plus Fixed Fee Contracts (CPFF): This contract ensures
that the vendor is reimbursed for all allowable costs for performing
the contract work. The vendor receives a fixed fee payment
calculated based on the initial estimated project costs. This fixed fee
does not change due to vendor performance.
• Cost Plus Incentive Fee Contracts (CPIF): This contract ensures
that the vendor is reimbursed for all allowable costs for performing
the contract work. The vendor also receives a predetermined target
fee. In addition to this, there is a provision of an incentive fee
payable to the vendor, which is based on achieving certain
performance objectives as set forth in the contract. In case the final
costs are lesser or greater than the original estimated costs, then both
the buyer and vendor share the costs from the difference based on
the pre-negotiated cost sharing formula; for example, an 80/20 split
over or under target costs based on actual performance of the
vendor.
• Cost Plus Award Fee Contracts (CPAF): This contract ensures
that the vendor is reimbursed for all legitimate costs. The majority of
the fee is earned based on the satisfaction of certain broad subjective
performance criteria defined and incorporated into the contract. The
determination of the fee is based on the buyer's subjective
determination of vendor performance and is generally not subject to
appeals.
Time and Material This type of contract includes aspects of both fixed-price and cost-
(T&M) reimbursable contracts. The buyer pays the vendor a negotiated hourly
rate and full reimbursement for materials used to complete the project.
This contract is used for staff augmentation, acquisition of experts, and
any outside support when a precise SOW cannot be quickly prescribed.
Many organizations include not-to-exceed values and time limits in
T&M contracts to prevent unlimited cost growth.
Procurement Contract
A procurement contract is a mutually binding agreement that details the obligations of the buyer
and vendor. The procurement contract, which can be a complex document or in the form of a
simple purchase order, is given to each selected vendor. Some of the major components in the
contract include: the SOW, the schedule baseline, the period of performance, performance
reporting, roles and responsibilities, pricing, payment terms, penalties, acceptance criteria, warranty,
liability limitations, change request handling, insurance and performance bonds, termination clauses,
and other applicable terms and legal requirements.
Term Contracts vs. Completion Contracts

A term contract engages the vendor to deliver a set amount of service—measured in staff-hours or
a similar unit—over a set period of time. A completion contract stipulates that work will not be
considered complete until the vendor delivers the product to the buyer and the buyer accepts the
product.
Example: Vendor Contracts for the 2002 Winter Olympics

Salt Lake City, Utah, hosted the 2002 Winter Olympics and needed many contracts for vendors and
service providers. Term contracts are appropriate for the independent security firms that were
contracted to provide professional security services for the duration of the Olympic events.
Completion contracts are appropriate for the construction companies hired to improve interstate
roads and build a new light rail system to handle the increased area traffic.
ACTIVITY 13-2
Selecting Project Vendors
Data Files
C:\095016Data\Executing the Procurement Plan\Vendor Scoring Sheet.xlsx
C:\095016Data\Executing the Procurement Plan\Vendor Proposal Notes.docx
Scenario
You are the project manager for the GCCG e-Banking Portal project. You received three proposals
from prospective hardware and software providers, and now it is time to determine which provider
met the criteria outlined in the RFP:
• The vendor must have a minimum of three years of experience in banking hardware and
software business.
• The vendor must have a minimum of two banking-related clients and include some top
companies in their clientele.
• The vendor must receive positive feedback from all provided references.
• The vendor must provide banking hardware and software, related equipment, and maintenance
and support services until the completion of the e-Banking Portal project.
• The vendor must provide a price range that is on par with the market for the services it provides.
Based on discussions that you had with the Procurement Manager, the costs should not exceed
$35,000.
1. To find a qualified vendor, you decide to use a weighted system. What will be
your first two steps?
☐ Assign a numerical weighting factor to each evaluation criterion.
☐ Score each prospective vendor based on the rating scale for criteria.
☐ Select the vendor with the highest score.
☐ Develop a rating scale for scoring the criteria.
2. For each evaluation criterion, you specified a rating scale. What should you
do next?
○ Add the scores of the scale.
○ Select the highest rated score.
○ Score each prospective vendor on each criterion using the rating scale.
○ Multiply the vendor's score by the weighting factor for each criterion or the sum of the criteria in a
category.
3. You selected a vendor. You and the procurement manager are meeting with
the vendor to negotiate the contract. The procurement manager asks about
the vendor's real position. Which part of the negotiating phase are they
engaged in?
○ The introduction stage
○ The probing stage
○ The bargaining stage
○ The agreement stage
4. From C:\095016Data\Executing the Procurement Plan, open Vendor Proposal

Notes.docx and Vendor Scoring Sheet.xlsx.
5. Based on the scenario and the vendor notes provided, complete the vendor
scoring sheet.
a) In the Vendor Scoring Sheet, enter your rating for each vendor's selection criteria.
b) Using the Weighting Factor provided, calculate the Score for each criterion by multiplying the Rating
by the Weighting Factor.
c) Calculate the Total Score for each vendor.
6. Open C:\095016Data\Executing the Procurement Plan\Solutions\Completed

Vendor Scoring Sheet.xlsx and compare your calculated total scores.
Ratings for each vendor are determined by predetermined selection criteria and the evaluation of the
vendor proposals that were received from different vendors. Scores were calculated based on the
weighting factors and totals for scores were calculated for each vendor. You performed a quantitative
evaluation of the vendor proposals.
7. Based on your quantitative evaluation of the vendor proposals, which vendor

will you choose for your project?
A: Answers will vary, but may include: based on the total scores that you calculated using the
weighting system, you now possess a quantitative evaluation of each vendor. The final total
scores will serve as an objective parameter in the comparison and selection of the vendor for your
project. Based on the total scores, you may select Rudison Technologies because they posted a
score of 470, which is the highest score among the three vendors.
Summary
In this lesson, you managed project procurement by requesting vendor responses and selecting a
vendor. You identified vendors who can provide the best quality of work for your project, selected
vendors after conducting procurement negotiations on the contract, and finally awarded the
procurement contract to the selected vendor at a fair and competitive price. By effectively
conducting project procurements, you ensured that the procurement requirements of your project
were suitably met within the scope of your project's time, cost, and quality commitments.
How will you make sure that you are specifying adequate detail when requesting
vendor responses?
A: Answers will vary, but may include: verify your procurement documents to ensure that you included
measurable technical specifications as mentioned in the SOW and proposed terms and conditions of
the contract, the regulatory and statutory requirements, the necessary documentation required, and
details for the proposal submission process when requesting vendor responses.
How do you think assigning numerical weighting factors to the evaluation criteria
will help when you are trying to make critical choices about selecting vendors?
A: Answers will vary, but may include: using a weighting system enables quantifying qualitative data to
minimize the influence of personal bias in selecting vendors. It also enables you to focus on what is
important.
Lesson 13: Executing the Procurement Plan |
14 Monitoring and
Controlling Project
Performance
Lesson Introduction
As the project work accelerates, more effort will be spent on monitoring and controlling
project work, which is a key element in your overall goal of controlling the project cost,
schedule, and quality.
Monitoring the work results and effectively communicating both good and bad information
to project stakeholders is critical to any project. Monitoring project performance allows you
to monitor trends that may affect process improvements and it ensures that the project will
meet the required expectations. Effectively monitoring the project and reporting its
performance is essential for successful project completion. In this lesson, you will monitor
the project's performance.
Lesson Objectives
• Monitor and control project work.
• Manage project changes.
• Report project performance.
TOPIC A
Monitor and Control Project Work
With your project execution well on its way, you need to control changes to the project's
performance so that you can best ensure that it meets expectations for schedule, cost, and quality.
Change control and several other tasks are part of the monitoring and controlling project work
process. In this topic, you will identify the best practices to be followed to monitor and control your
project.
As a project manager, it is your responsibility to deliver your project on time, on budget, and to the
required specifications. By monitoring and controlling the project work, you will be better
positioned to ensure that your project meets stakeholders' expectations for time, cost, and quality
performance and maintain an efficient and effective flow of work throughout the project life cycle.
Best Practices of Monitoring and Controlling Project Work

When monitoring and controlling project work, the project manager tracks, reviews, and regulates
the project processes to meet the project's performance objectives. Effective monitoring ensures
that necessary preventive actions are taken in order to control the project performance.
To effectively monitor and control project work, follow these guidelines:
• Compare and evaluate project performance with the project plan and, if necessary, recommend
actions.
• Analyze, track, and monitor risks to make sure they are being recognized and reported, and
response plans are being executed.
• Maintain accurate information about the project as it unfolds.
• Maintain the integrity of baselines ensuring that only approved changes are incorporated.
• Provide information to support status reporting, progress reporting, and forecasting.
• Provide forecasts to update recent cost and schedule information.
• Monitor the execution of approved changes when they occur.
Note: The process of monitoring and controlling project work is not one specific task; it is an
overarching process that is ongoing, cyclical, interactive, and interlocking. It involves ongoing
work throughout the life cycle of the project.
Example: Monitoring and Controlling Project Work in a Software Development

Project
Mike is the project manager for the tax preparation software development project. The project is
multiphased and is in its second phase. Mike's programmers have been meeting schedule deadlines
and showing good time management skills. However, the documentation department that creates
user manuals and help systems works very slowly and is making mistakes. Assessment of reviewer
feedback confirmed these observations.
Mike realizes this is a risk for the project. If the deliverables are wrong, he will lose his customer. He
decides that the documentation department needs a bit more monitoring. In the company's
procedures for documentation, it clearly states that the preliminary software documentation must be
created within three days of development of each deliverable from the software department. Mike
created a database where the deliverable turnaround time is recorded. After looking through
information on past performance, Mike sees that the accuracy of deliverables was 10 percent better
than what it is now. Mike believes that with this newly implemented database, the performance and
quality will continue to improve.
Lesson 14: Monitoring and Controlling Project Performance | Topic A
Technical Performance Measurement

Technical performance measurement is used to identify the overall technical accomplishments
made during the project. It compares the project's accomplishments to the planned
accomplishments as outlined in the project plan. Objective, quantifiable measures of technical
performance are used here. These measures may include the functionality of a deliverable at a
milestone, as well as specific measurable criteria such as conformance to specifications. Any
differences can help predict if the final project scope will be achieved. The parameters used to
measure technical performance include the system, software, and resource performance.
Guidelines for Monitoring and Controlling Project Work
Effective monitoring and controlling of project work ensures that the project achieves the expected
organizational objectives. To effectively monitor the project work, follow these guidelines:
• Obtain regular status reports from the project team members.
• Use metrics to report project performance to stakeholders. Care should be taken not to
overburden the stakeholders with unnecessary information.
• Conduct effective reviews of the reported project status.
• Review the current project schedule and cost status and their deviations from the planned
values. If variances between the project plan and status are identified, recognize the corrective
actions to be taken.
• Analyze and identify the major concerns of the project.
• Evaluate and determine the accomplishments since the last review.
• Review major project risks and challenges.
• Emphasize the most immediate milestones.
• Anticipate potential problems and identify possible solutions for the risks.
• If any new changes are introduced by the project team or other stakeholders, document the
change in the change control system and track the change until its closure.
• Recognize exceptional performers. Encourage and help lagging performers and provide training
or informal mentoring, if necessary.
• Conduct regular project meetings to understand the issues or problems the team members are
facing. Use these meetings to convey the overall project performance and status and the
accomplishments of the team members.
ACTIVITY 14-1
Monitoring and Controlling Project Work
Scenario
The training part of the GCCG e-Banking Portal project has been running smoothly, thanks to the
efforts of the technical writer, Sarah. She has been instrumental in getting her team to work together
to meet their tight deadlines. During a crucial phase in the project, Sarah falls ill. A less experienced
writer, Kevin, is brought in to replace her. For this project, it is more important to maintain the
schedule than to maintain the cost baseline.
1. What can you do, as the project manager, to mitigate the negative effects of a
staffing change?
○ Put the project on hold until Sarah returns from sick leave.
○ Rebuild the schedule to include additional time for Kevin to complete his tasks.
○ Closely monitor Kevin's work to assess any possible risk.
○ Discuss with the team the impending change and whether the team can expect to go through the
team development stages again.
2. Kevin missed an important deadline. What action can you take to help Kevin
get back on schedule?
A: Answers will vary, but may include investigating the reason why Kevin missed the deadline. Then,
you may recommend that another technical writer be brought in to assist him. Once you determine
that project performance is not meeting the project plan, it becomes necessary to recommend
corrective action. A change in head count will have an impact on cost and scheduling and will
require the monitoring of changes as they occur.
3. After he has been given extra help, Kevin manages to meet his next important
deadline. What should be your next action as project manager?
○ Keep a private log for your own reference, detailing changes that have been made to the project.
○ Update recent cost and schedule changes that resulted from recent changes.
○ Ask Kevin to closely monitor changes to the project's cost and schedule.
○ Ask Kevin to let you know if he has any further problems as the project progresses.
TOPIC B
Manage Project Changes
Earlier, you developed an integrated change control system to monitor and control project work.
While a project is being monitored and controlled, changes that may affect the scope will occur. As
a project manager, you need to be able to appropriately handle those changes. In this topic, you will
manage project changes.
Because it is the nature of business to get the product for the lowest price, customers will sometimes
push the edge of the project scope beyond its limits. If not controlled, this can easily spell disaster
for the project. By controlling project changes, you can minimize their impact on the project scope,
time, cost, and quality commitments.
The Change Management Process

Change management is the process of managing project changes in a structured and standardized
manner. It consists of five main stages.
Stage Description
1. Change identification Involves identifying the changes that must be made to a project.
The changes may positively or negatively impact the planned
project deliverables and performance. The requirement for change
can be identified by anyone involved in the project.
2. Change documentation Involves documenting the changes in the change control form,
initiating a formal request for the change.
3. Analyzing the impact of the Involves identifying and assessing issues that may arise and
change adversely impact the various aspects of the project. This will
usually be done by the project manager or any other requester.
4. Course of action Involves coordinating with the appropriate stakeholders, to select
the necessary actions to be taken, and implementing the approved
changes.
5. Updating related plans Involves updating the project management plan components that
are related to the approved change requests.
Lesson 14: Monitoring and Controlling Project Performance | Topic B
Figure 14-1: A process flowchart for managing project changes.
Example: A Change Control Process for an Elementary School-Age Reading

Project
As the project team for an elementary school-age reading program moves through the execution
phase, the project manager, Ben, monitors progress by reviewing performance reports and
evaluating any variances to the original scope definition and performance baselines. When variances
are identified, the project management team members examine the causes and determine the
corrective action necessary to bring future performance in line with the project plan. They diligently
document the lessons learned for the benefit of future projects.
As change requests are generated, both Ben and the project's CCB review and evaluate their impact
on performance baselines as outlined in the change control system. When changes are made that
affect performance baselines, Ben updates the project plan to reflect the changes. Using
configuration management methods, such as the image tracking database, all changes to the original
characteristics of the course are controlled and tracked. The project team's efforts enable them to
effectively maintain the original performance baselines and scope definition and keep the project on
track.
Change Control Form

A change control form is used to request a project change. Change control forms or change
management forms are generally referred to as change request forms. A sample change control form
template is shown in the following figure.
Figure 14-2: A sample change control form template.
Advantages of Effective Change Management

Effective change management presents several advantages to project managers, including:
• Faster response time.
• Maximum traceability of changes.
• Increased team awareness of change needs.
• Increased engagement of team and stakeholders, internally and externally.
• Better team support for change requirements.
• An organizational framework for moving forward effectively.
The Impact Analysis Process

Impact analysis is the process of evaluating the impact of a change on the project. It involves three
major steps.
Step Description
1. Impact identification Identifying the impact of a potential change on:

• The triple constraints (time, cost, scope).
• Quality.
• Project complexity.
• The current and subsequent phases of the project.
• The list of project milestones and deliverables.
• Project testing needs.
• Resources needed for a project.
2. Impact prediction Forecasting the characteristics, magnitude, and duration of the major
impacts.
3. Impact evaluation Evaluating how the expected impact can be mitigated.
Scope Creep
Scope creep is the extension of the project scope caused by unapproved and uncontrolled changes
that impact the cost, quality, or timing of the project. Scope creep contributes significantly to project
failure.
Figure 14-3: An example of scope creep.
Formal Acceptance of Project Work

Formal acceptance of project work is the process for securing approval for completing the
remainder of the project work. It requires change requests to be documented and analyzed for their
impact on other aspects of project work including time, cost, quality, and risk. It includes a receipt,
or documented acknowledgment, that the terms of the contract have been satisfied. It also validates
that the acceptance criteria will still be satisfied as a consequence of this change.
Guidelines for Managing Project Changes

Managing project changes ensures that the original project scope and the integrity of performance
baselines are maintained. Ensuring that changes are agreed upon and continuously managing
changes as they occur minimizes the impact changes may have on project time, cost, and quality
concerns. To effectively utilize the change control systems for managing changes in the project,
• Make sure that your change control system is cost-effective. It should not cost more money to
implement than it saves through controlling.
• Establish or make use of an existing Change Control Board (CCB) composed of project
stakeholders to evaluate change requests.
• Make sure that the requested change deals with the project deliverable rather than project
structure or controls.
• Does the requested change address the business, technical, or functional requirements?
• Does the requested change ask for a deliverable to be added?
• Does the requested change ask for the modification of a project deliverable? This will need to
be negotiated with the customer prior to acceptance.
• Document the effect the changes have on the project. What is the effect of the change on
schedule, cost, time, and quality?
• Obtain approval from the appropriate parties for all change requests before implementing the
change.
• Use configuration management to document and control changes to original product
characteristics.
• Coordinate changes across project attributes as appropriate. For example, does a proposed
schedule change affect cost, risk, quality, and staffing?
• Use performance reports to measure project performance and assess whether plan variances
require corrective action. Make sure that performance reports are timely and accurate to increase
the effectiveness of control decisions.
• Identify corrective action necessary to bring expected performance in line with the project plan.
• Determine the source and severity of the problem.
• Review the project plan and objectives.
• Consider factors inside and outside the project that may influence corrective action decisions.
• Identify alternative options available.
• Choose from among the alternatives by evaluating the impact of each alternative on cost,
schedule, and quality.
• Update the project plan to reflect changes made that affect performance baselines.
• Document the causes of variances, the steps taken to correct performance problems, and the
rationale behind the decision-making process to avoid similar problems on future projects.
• Analyze the impact of the change to verify that no new problems are introduced. If problems
arise, be sure to have a regression plan to efficiently reverse any changes that are out of
proportion with the benefits or the intended results.
ACTIVITY 14-2
Managing Project Changes
Scenario
Working with the senior executives at GCCG and with the PMO, a formal change control process
has been put in place for all GCCG Bank Start-up projects and a Change Control Board (CCB) has
been set up, which includes the Bank Start-up program manager, the PMO director, and the CCB
administrator. You are reviewing the formalized CCB process and summarizing the following for
your team:
When a change in the project appears to be necessary or desirable, the initiator of a change
completes a Change Request form, attaches any supporting material, and submits it to the person
responsible for change management in the project (it could be the program or project manager) for
review and concurrence. The program or project manager (or whoever responsible) reviews or
ensures that the change request is reviewed by the people or bodies responsible for reviewing the
request for validity, completeness, and accuracy and forwards the request to the director. The
director reviews and disposes of the request in one of the following ways:
• Reject: Indicates disagreement with the proposed change on the request form; it is rejected and
returned to the program or project manager.
• Concur: Indicates agreement with the proposed change on the request form; it is returned to the
program or project manager for submission to the CCB administrator to set up a meeting.
• Approve: Recommends approval without a meeting of the CCB. Notes the reason for, and any
conditions of, approval on the decision page of the Change Request form and forwards it to the
CCB administrator.
The PMO, upon receipt of change request decisions, records the information in a database to track
all change request patterns.
1. The project team members responsible for software development cannot

meet their deliverable of November 16. What actions should you take? Select
all that apply.
☐ Use configuration management to document and control changes to the original vendor contract.
☐ Identify required corrective action to resolve the problem.
☐ Recommend corrective actions to the CCB.
☐ Update the project plan to reflect these changes.
2. What are the tasks that you should consider when determining appropriate
corrective actions? Select all that apply.
☐ Identify alternative options available.
☐ Determine the source of the problem and its severity.
☐ Record how corrective actions should be tracked.
☐ Review the project plan and objectives.
3. GCCG's change control process states, “The PMO, upon receipt of change
request decisions, records the information in a database to track all change
request patterns.” What benefits do you see in tracking change request
patterns?
A: Answers will vary, but may include: it may be helpful to see a breakdown as to how many change
requests were due to contractual agreements. You will be able to research and identify other
projects that have had similar change requests and patterns. By doing this, you will be able to
identify the root-cause of the problem and rectify the cause.
4. How do you ensure that all functional areas are aware of the requested
changes that may affect them?
A: Answers will vary, but may include: implement a CCB with representatives from each functional
area and send weekly email messages with reports and ask managers to approve or disapprove
the requests.
5. As the project manager, what could you do to encourage the team to use the
change control system?
A: Answers will vary, but may include: have everyone use the database to submit their change
request, implement a workflow so areas of impact will see and approve each request, create a
report for everyone to review new and closed requests by the CCB, and conduct biweekly
meetings with the CCB.
TOPIC C
Report Project Performance
In order to ensure that your project meets stakeholder needs, you need to communicate with your
stakeholders about how well your project is performing. This includes monitoring individual and
team performance and providing relevant feedback and appraisals. In this topic, you will report
project performance.
Implementing control processes into your project work can make a tremendous difference in your
ability to communicate project performance to upper management, stakeholders, and customers,
and to reassure those with a vested interest in project success that the work is on time and within
budget. Performance reports are really the heart of the entire monitoring and controlling process.
Effective performance reporting enables you—and your team members, sponsors, stakeholders, and
customers—to make reasoned, informed, and timely decisions regarding project status.
Performance Measurement Tools

Project managers have many tools available to them to summarize and analyze data about how well
a project is meeting the objectives set forth by the stakeholders. Selecting the right tool and
communicating the information the tool provides in an understandable way are important to
addressing whether the project is meeting stakeholder expectations. You should be familiar with the
most commonly used performance measurement tools, and how to apply them to your project.
Tool Description
Key Performance Key Performance Indicators (KPIs) in project management consist of

Indicators tools that indicate if the project is meeting specific goals. KPIs should be
defined early in the project; they should be quantifiable; and they should
be measured regularly. Common KPIs relate to how well the project is
tracking against the planned schedule and cost baselines and if project
milestones are being met. Other indicators can include the status of issues
(resolved vs. unresolved); change requests (pending, approved, and
disapproved); and effectiveness of risk response strategies. KPIs are often
displayed as charts (e.g., line, pie, column, etc.) and indicators (e.g.,
colored traffic lights).
Dashboards Dashboards are graphical summaries of project measures, often a
collection of multiple KPIs. They provide an “at-a-glance” view of
important data that managers can base business decisions on. Dashboards
can be created from project management software, or purchased from a
number of software suppliers. An example of a project dashboard created
with Microsoft® Project is shown following this table.
Key Performance Key Performance Parameters (KPPs) are key system capabilities that
Parameters must be met for a system to meet its goals. The threshold value of a KPP
is the minimum acceptable value (cost, schedule, and technology) below
which the system is unacceptable. For more information about KPPs, see
http://www.dtic.mil/cjcs_directives/cdata/unlimit/3170_01a.pdf.
Balanced Scorecard The balanced scorecard is a tool that integrates project management
and portfolio management so that projects are aligned with an
organization’s strategy. It identifies a small number of financial and non-
financial measures and attaches targets to them. When performance
deviates from expectations, managers can focus their attention on areas
where meaningful improvement in performance is possible.
Lesson 14: Monitoring and Controlling Project Performance | Topic C
A Dashboard Example
Figure 14-4: An example of a dashboard.
Budget Forecasts
Budget forecast is the estimated budget required to complete the remaining project work.
Stakeholders will be given Estimate to Complete (ETC) and Estimate at Completion (EAC)
values for a project.
• The Estimate to Complete value is the estimated cost to finish all the remaining project work.
• The Estimate at Completion value is the estimated total cost of completing all work, expressed as
the sum of the actual cost to date and the estimate to complete.
Forecasting Methods
Forecasting methods are classified into various categories.
Time series methods Estimation of future outcomes is based on historical data. Some of the
methods under this category include earned value and moving average.
Causal or econometric Causal forecasting includes the factors that may influence the identified
methods variables, by combining economic theories and statistical information.
Some econometric methods under this category include regression
analysis and econometrics.
Judgmental methods Forecasting where there is a complete lack of historical data; for
example, when a new product is being launched. Some of the methods
under this category include scenario forecasting, Delphi technique, and
forecasting by analogy.
For more information about Judgmental forecasting, see https://
www.otexts.org/fpp/3.
Reporting Systems
Reporting systems are tools that help in collecting, storing, and distributing project information to
stakeholders. Information can be distributed through various formats such as a presentation and
spreadsheet analysis. Project managers use different software applications to collect information
from various sources and consolidate them to distribute among stakeholders. Reporting systems are
part of the PMIS.
Example: Reporting the Performance of a Construction Project

The project team for a construction project completed the first phase. Before moving on to phase
two, the executive board asks the project manager to prepare a mid-project report. The project
manager assembles the team and discusses the requirements of the report and explains its value in
terms of future development for the remaining work on the current project and for future projects.
The team takes a few days to evaluate the project's accomplishments against expected performance
and to discuss and document lessons learned. Because they have regularly monitored and
documented project progress and held performance review meetings, they have solid data to
evaluate.
Their mid-project report uses the standard format specified in the communications management
plan and consists of the following information as required by the plan: a cover page, a narrative
description of accomplishments as compared to established goals, interim performance reports and
end of project reports, and any appendices or supporting materials. The comparison section also
includes a table showing the earned value information for phase one development.
Report Types
The type of report you use will depend on the purpose of the report, the audience, and the message
that data is trying to convey. The report format can range from simple to complex depending on the
data that is being presented. Some common types of performance reports include:
• Progress report: A summary of activities over a period of time, such as a week or month.
• Status report: A summary of activities over a cumulative period of time, such as a year-to-date
or since the start of a project.
• Dashboard report: A simple status report that commonly uses colored indicators, such as red,
yellow, and green to provide an at-a-glance identifier for the state of a project component.
Performance Reports
A performance report is a document that reports the progress made in the project activities against
the specified baseline. Project performance is reported to ensure that the project manager is
monitoring the project progress, comparing achievements with the plan, reviewing plans and
options against future scenarios, detecting issues during the early phases of the project, initiating
corrective action, and authorizing further work.
Performance reports can be classified by either frequency, purpose, or both. The following are
common classifications of performance reports:
• Routine performance reports aren't necessarily scheduled but might be distributed at intervals
that coincide with project phases or milestones. The frequency of performance reports depends
on how smoothly the project functions.
• Exception performance reports provide project team members with information they need to
make a decision on or notify them of a change that affects their work. Exception performance
reports are also distributed to stakeholders to inform them that a decision has been made.
• Special analysis performance reports contain information about the results of a focused study
that might be conducted as part of a project or to determine a solution to a problem encountered
during a project. These special reports are not only useful documents for a current project, but
are also valuable records of lessons learned for future projects.
Common Problems with Reports

Some frequent problems with performance reports include:
• Too much information or the wrong kind of information.
• Information not distributed in a timely manner.
To avoid these problems when reporting, it is important to:
• Make sure information is current and relevant.
• Create reminders for the due dates of progress reports.
Types of Performance Reports

There are various types of performance reports submitted at different phases of a project.
Performance Report Description
End stage Submitted by the project manager to the PMO or senior managers to sign
off the stage, having met its required success criteria, and approve
transition to the next stage.
Highlight Submitted by the project manager to the PMO or senior managers at
regular intervals as the project progresses. This reports the progress of the
stage and project. It also identifies exceptions and issues.
Exception Submitted by the project manager to the PMO or senior managers when
early warnings of any forecast deviations beyond the tolerance levels are
identified in the project. Tolerance levels might be ten percent on time
and five percent on cost, but of course they will vary from one project to
another.
End project Created and submitted by the project manager to the PMO or the senior
manager for the project to be signed off as completed and to consider the
necessary follow-up actions.
Post implementation Controlled by members external to the project. They are notified whether
review the expected project benefits have been realized. This review is carried out
as soon as the benefits and issues are identified and measured after the
project's completion.
Performance Report Components

Performance reports mainly serve the purpose of making the actual versus baseline information with
forecasted results available in a consolidated manner. They may be simple or detailed. A simple
report may contain information on the project scope, time, cost, and quality, whereas the detailed
report may also contain components such as:
• Inferences of the past analysis.
• Current risk status.

• Work completed.
• Work to be completed.
• Summary of approved changes.
• Variance analysis results; for example, Schedule Variance (SV), Cost Variance (CV), Schedule
Performance Index (SPI), and Cost Performance Index (CPI).
• Forecasted results; for example, Estimate at Completion (EAC), and Estimate to Complete
(ETC).
Benefits of Creating Performance Reports

Some of the overall benefits of creating performance reports include:
• Analysis of the current status of the schedule and budget.
• Feedback to team members and work package owners.
• Communication with upper management and customers.
• Early identification of variance.
• Early implementation of corrective actions.
Guidelines for Reporting Project Performance

Identifying variance to performance as early as possible helps the team pinpoint programmatic and
administrative problems that may need to be resolved, and enhances the team's ability to implement
corrective actions early enough to make a difference. Final performance reports provide historical
information that may improve the likelihood of success for future projects. To effectively report
project performance, follow these guidelines:
• Analyze work results against planned performance based on performance elements defined
during the planning processes.
• Involve the team members who are closest to the work in the data analysis. They are the
people who understand the work and can probably identify appropriate corrective actions for
resolving variances.
• Use Earned Value Management (EVM) techniques to assess cost and schedule progress
against planned performance.
• Evaluate the results of corrective actions to determine whether they have produced the
desired results.
• Hold performance reviews to communicate and assess project status and progress.
• Keep meetings productive and concise by creating meeting rules that everyone clearly
understands and agrees to follow.
• Define the start and stop times.
• Prepare and distribute a written agenda.
• Make sure that the people presenting are ready and understand their role in the meeting.
• Consult your project management plan's subsidiary plans for guidelines and procedures for
reporting on the various aspects of project performance.
• Consult the procurement management plan for guidelines and procedures for analyzing and
reporting contractor cost, schedule, and technical performance.
• Consult the cost management plan for guidelines and procedures for analyzing and reporting
project cost performance.
• Consult the schedule management plan for guidelines and procedures for analyzing and
reporting project schedule performance.
• Consult the quality management plan for guidelines and procedures for analyzing and
reporting project quality performance.
• Determine the type of report needed for the information being reported. Make sure that the
format of the report adequately provides the type of information and level of detail required by
various stakeholders. Refer to the communications management plan for information regarding
stakeholder needs.
• Prepare performance reports containing the required information in an appropriate format that
enhances understanding of the material. Formal reports should contain:
• A cover page with the project name, project manager's name, type of report, and date of
report.
• A narrative description of the project's actual accomplishments for the reporting period as
compared to the goals established for the period. The description should include qualitative
and quantitative terms if possible. In addition, any changes implemented or anticipated
should be described.
• Interim performance reports should include a forecast of how the project is expected to
perform in the future.
• End of project reports should include a brief description of major accomplishments, an
evaluation of the project's performance (including in-house staff and contractor
performance), an explanation of any variances in the performance and project objectives, and
any future plans for the project.
• Appendices, which may include any supporting material that contributes to an understanding
of the project and its progress to date, such as charts, tables, and samples.
• If available, use standard formats for status, progress, and forecasting reports. These standard
formats should be specified in the communications management plan or as part of the PMIS.
• Balance the cost, time, and logistics of preparing performance reports against the benefits gained
by the reporting.
• Measure and monitor performance the same way throughout the project life cycle so that
meaningful comparisons can be made.
ACTIVITY 14-3
Reporting Project Performance
Scenario
There were some unexpected delays in GCCG's Seattle Bank project due to problems with the
HVAC installation and other contractor problems. You and your project team minimized the impact
of these issues; however, senior management is concerned as to how the actual schedule and costs
performance compare with their original baselines.
1. You need to provide a progress report to senior management. What should

your first step be in gathering data for your report?
○ Consult subsidiary plans for guidelines on reporting project performance.
○ Check for the variances between the planned versus actual project cost, schedule, and
performance and provide appropriate action plans to remedy any variances.
○ Hold performance reviews.
○ Prepare an appropriately formatted performance report.
2. Scenario forecasting, the Delphi technique, and forecasting by analogy are

examples of which type of forecasting method?
○ Causal or econometric method
○ Time series method
○ Judgmental method
○ Simulation method
3. After you completed your analysis of work results, you held project
deliverables performance reviews with project team members to assess the
project status. You gathered all relevant data necessary for completing your
progress report. Given the cost and schedule concerns of senior
management, what kind of data should be included?
A: The format of the report you prepare should indicate variance; level of detailing; and planned
versus actual cost, schedule, and performance.
4. True or False? Your reporting systems are part of your PMIS.

☐ True
☐ False
5. Because project baselines shifted, one of the team leads for the project
suggests that you should alter the format of the progress report before
handing it off to senior management. She says that extensive enhancements
to the graphic elements are necessary to truly express the major points of the
report. How would you decide whether or not to implement her changes?
A: Examine if the changes are cosmetic or if they truly express the data to be presented. If the
changes are purely cosmetic and would highlight large variances, then don't implement them.
Also, evaluate the effort needed to make the suggested changes. If the elements help express the
major points of the report and if you have time, it is a good idea to implement the changes.
Summary
In this lesson, you determined how to properly manage project performance. By properly
monitoring a project, you will be able to meet all project goals, including the cost and schedule.
Also, reporting project performance keeps the stakeholders informed of the project progress and
helps them make appropriate decisions regarding project status.
How can you make the change management processes followed in your
organization more effective?
A: Answers will vary, but may include: change management processes can be made effective by
implementing an integrated change control system for the projects in accordance with all the relevant
company procedures and requirements; by clearly identifying the roles responsible for initiating,
authorizing, and approving change requests; and by effectively managing the approved changes.
In your environment, which elements are the most difficult to control—cost,

schedule, or scope?
A: Answers will vary, but may include: almost all project managers will find controlling project costs,
schedule, and quality challenging in project management. Paying more attention to project quality
may increase the project cost and duration. Maintaining quality while keeping the project cost and
duration under check can be one of the most difficult tasks for a project manager.
Lesson 14: Monitoring and Controlling Project Performance |
15 Monitoring and
Controlling Project
Constraints
Lesson Introduction
As a project manager, you identified areas associated with executing a project in your
organization. Next, monitoring and controlling a project is essential to ensure that the
project is on track with plans. As a project manager, you need to apply monitor and
controlling tools, such as performance reviews, and variance analysis to improve your
chances of executing the project within the prescribed time, scope, cost, and quality
constraints. In this lesson, you will monitor and control project constraints.
Lesson Objectives
• Control the project scope.
• Control the project schedule.
• Control project costs.
• Manage the project quality.
TOPIC A
Control the Project Scope
You defined your project's scope and developed a Work Breakdown Structure as part of your
project planning effort. Now that the project work is moving forward, you need to control changes
to project scope using the control scope inputs and tools. In this topic, you will examine how to
control the scope of the project.
Because it is the nature of business to get the most for the lowest price, customers will sometimes
push the edge of the project scope beyond its limits. Because changes to project scope almost always
impact performance baselines, you want to be able to control the project scope. Controlling project
scope changes helps you minimize the impact to project time, cost, and quality commitments.
Verified Deliverables
Verified deliverables are project products or results that are completed and verified for their
correctness after performing quality control. These deliverables are used as inputs during scope
validation of the project to determine if work is complete and satisfies project objectives.
Inspections
An inspection is an official examination of work results to verify that requirements are met. It is
sometimes referred to as a review, product review, audit, or walkthrough. An inspection may be
conducted by an internal or external inspection team. During scope verification, an inspection
typically involves:
• Comparing baseline specifications and any approved changes to the actual project results.
• Determining the likelihood that remaining deliverables will be completed as promised.
• Identifying actions that may be needed to ensure that work results will meet the specifications,
scope, or schedule and budget goals.
In some cases, your team will be asked to conduct the inspection. In other cases, stakeholders may
decide to ask an outside entity to either conduct the inspection or to participate with you in
conducting it.
Example: Inspecting an Educational Toy

An inspector was asked to examine a new children's educational toy to determine whether its design
requirements had been met. His inspection revealed that the instruction booklets accompanying the
toy had not been adequately translated into all languages; some children and their parents were not
able to decipher the instructions. The inspector recommended that the instruction booklets be
improved before work requirements could be considered fulfilled.
Inspection Report Components

Inspection reports are necessary and contain several components.
Project baseline and status The comparison of baseline specifications, schedules, and budgets
comparison to the actual project results for the project phase or deliverable.
Overall project status A discussion of whether the project as a whole is on track, or
whether it is likely to deviate in some way from project plans.
Lesson 15: Monitoring and Controlling Project Constraints | Topic A
Change recommendations Based on the inspection result, recommended changes that will be
needed in order to meet the specifications, scope, or schedule and
budget goals.
Scope and methodology of An explanation of what the audit attempted to prove, how it went
the inspection about proving it, what measurements were used to determine
conformance to requirements, and what assumptions or limitations
influenced the way that data was collected.
Note: Some application areas and organizations have specific expectations for scope verification
inspections and will probably have documented guidelines and procedures for preparing and
conducting them.
Variance
Variance is the quantifiable deviation from the expected results for any component of a product
and service being developed, including scope, quality, schedule, and cost. Variance can be extreme
or almost undetectable; it may result from many internal and external causes, such as problems with
resource availability, or from the skills of personnel assigned to the project. Variance may be
obvious the moment a product is produced or may become obvious over time through use and
exposure to environmental conditions. To control quality, you must recognize the difference
between quality variance within a normal range and variance that indicates a quality error.
Variance Analysis
Variance analysis is the comparison of the difference between the actual or predicted results and
the original scope baseline or expected results. Any variances must be analyzed to determine
whether they are acceptable or they merit corrective action to keep the performance within
specifications. Scope control includes determining the cause and degree of variance relative to the
scope baseline and deciding if any corrective or preventive action is necessary.
Work Performance Measurements

Work performance measurements involve calculating the variance between the planned and actual
technical performance or other scope performance measurements. The results of performance
measurements are documented, generally consolidated in the form of performance reports, and then
communicated to project stakeholders. The report may include items such as:
• Features of the product planned versus features of the product being delivered.
• Any addition to or deletion from the features list.
• New changes to the project scope.
Example: Controlling the Project Scope in a Website Designing Project

Two months into the production of a website designed to increase American preschoolers' readiness
for kindergarten, the project team received a formal change request submitted through the change
control system by one of the team members, an expert in early childhood education. The change
request proposed making changes to the site's functionality that were categorized as high priority.
Before approving the change request, the CCB asked the team to analyze the change to the
schedule, budget, and resources as well as the potential risks and benefits.
The multimedia lead explained that the requested change will require an interface design
modification; he estimated that it could be done with current resources and with no significant
impact on the schedule. The technical lead agreed that the change could be implemented easily and
will not require additional resources because the heavy programming for the course will not start for
another month. Both leads felt that the risk to the project was extremely minimal when compared to
the potential benefits described in the change request.
Given this information, the CCB approved the change request and documented the decision. The
project manager updated the scope statement and the WBS. In addition, the project manager
documented the decision and monitored the implementation of the change carefully to ensure that it
was properly implemented and that no new risks were introduced.
Guidelines for Controlling the Project Scope
Continually monitoring and controlling changes to the project scope enable you to maintain the
original project scope definition and make changes when necessary. In addition, controlling project
scope changes ensures that cost, schedule, and quality performance baselines are maintained. To
effectively control the project scope, follow these guidelines:
• Develop and implement a scope change control system, possibly integrated with the project's
integrated change control system. The system should:
• Include the paperwork, tracking systems, and approval levels for authorizing scope changes.
• Comply with relevant contractual provisions when the project is carried out under contract.
• Comply with the guidelines specified in the scope management plan.
• Evaluate change requests by asking questions:
• What is the magnitude of the change when compared to the scope statement and WBS?
• What is the impact of the change on project cost, schedule, and quality objectives?
• What are the potential risks and benefits of the change?
• Identify and document corrective action to bring expected future project performance in line
with planned performance.
• Ensure that formal agreements are reached and new specifications detailed when the project
scope is expanded to include either additional work that is clearly outside the original scope, or
required as a result of scope boundary clarifications.
• Depending upon the nature of the change, you may need to revise cost, schedule, or quality
performance baselines to reflect changes and to form a new baseline to measure future
performance against. Notify project stakeholders of any changes made to project baselines.
• Use performance measurement techniques to monitor changes.
• Are changes being properly implemented?
• Do changes bring about the desired results?
• What new risks are introduced as a result of implementing changes? It's prudent practice to
conduct a risk review after any scope change.
• Document lessons learned during scope change control for use on future projects. The
documentation should include causes of variances, performance baselines affected by the
changes, rationale behind the recommended corrective action, and any other lessons learned
during scope change control.
ACTIVITY 15-1
Controlling the Project Scope
Scenario
The GCCG Seattle bank's new PMO director spent several weeks reviewing the project. Due to the
complexity of such a large project, the director received authorization for all project managers to
attend a one-week comprehensive workshop on banking and finance. This workshop is to be
incorporated into the GCCG Seattle bank project. While the departure of Vicky Morris and possible
organizational changes were included in the risk management plan, no cost or schedule contingency
was allocated for such a change to the project scope.
1. Which input is used during scope validation?

○ Verified deliverables
○ WBS
○ Scope statement
○ Activity list
2. When verifying the project scope, which activities are involved in the
inspection?
☐ Determining the probability of the deliverables being completed as promised.
☐ Identifying the necessary actions for completing the deliverables as promised.
☐ Modifying the project schedule to accommodate disruptions in deliverables.
☐ Comparing actual results to the baseline specifications and approved changes.
3. Which component of the inspection report explains what the inspection was
trying to prove, the process and tools used, and any assumptions that were
made?
○ Overall project status
○ Change recommendations
○ Scope and methodology of the inspection
○ Project baseline and status comparison
4. A scope change request recommending additional test documentation has

been submitted to the CCB for analysis. This change may impact the project
finish date. What should be done first with this request?
○ Evaluate the request.
○ Ensure that new specifications are detailed.
○ Monitor changes.
○ Identify corrective action to take.
5. What is the analysis between actual or predicted results and original scope
baseline or expected results called?
○ Scope control
○ Cost analysis
○ Variance analysis
○ Deliverable analysis
6. The CCB informs you that additional costs for the workshop will be adjusted in
the project budget. However, the project finish date must remain the same. As
the project manager, what can you do to ensure that the project finishes on
time?
A: Consider assigning additional resources to effort-driven activities on the critical path.
TOPIC B
Control the Project Schedule
When you planned your project, you developed a schedule to serve as a baseline during project
execution, monitoring, and controlling. Now you need to determine how much variance exists
between the actual work completed and the work scheduled. In this topic, you will control the
project schedule.
“When was the work scheduled to be completed?” “Can we change the project end date?” “Are we
going to finish the project on time?” Answering questions like these is what schedule control is all
about. Effective control over the project schedule ensures that you complete your project on time
according to the project schedule.
Scheduling Tools
Scheduling tools are tools that use updated schedule data combined with project management
software or other methods to perform schedule network analysis and generate an updated project
schedule. These tools accelerate the scheduling process by generating start and finish dates of
activities based on their inputs, creating network diagrams, and producing resource and activity
duration.
EVM
Earned Value Management (EVM) is a method of measuring project progress by comparing the
actual schedule and cost performance against planned performance as laid out in the schedule and
cost baselines. Assessing the value of work requires first determining what work has actually been
performed and, therefore, what value it has contributed to the project.
During planning, project work is broken down into work packages and activities. Each work
package is assigned a budget and schedule. Because each increment of work is time-phased, a
Schedule Variance (SV) results when work is not completed as scheduled. It is always better to
understand the monetary value of work contribution as it relates to the schedule. Therefore, SV is
often expressed in terms of the monetary value.
Note: EVM is often used for government projects but is becoming more popular for private
sector projects.
Cost and Schedule Performance

The EVM approach to monitoring cost and schedule performance provides metrics that show
variances from baselines. Armed with this information, the project manager can identify appropriate
corrective actions. When cost and schedule variance analysis is conducted at appropriate time
intervals and levels, it can be effective in controlling against further cost and schedule problems.
PV
Planned Value (PV) is the budgeted portion of the approved cost estimate to be spent during a
particular time period to complete the scheduled project work. This amount is specified in the
project's cost baseline. In simpler terms, PV indicates the value of work to be done during a
particular time period.
Lesson 15: Monitoring and Controlling Project Constraints | Topic B
Figure 15-1: An illustration of planned value, earned value, and actual cost.
Example: Evaluating Planned Value

A project to build a shed was proposed. It involved three tasks to be done: flooring, drywalling, and
roofing. Flooring was budgeted at $200 and will take two days to complete. The task of drywalling
was budgeted at $800 and will take four days to complete. Roofing was budgeted at $600 and will
take three days to complete. The total budget for building the shed came to $1,600. The total budget
calculated for the first six days of work, involving two days of flooring and four days of drywalling,
will be $200 + $800 = $1,000. Therefore, the PV of this project for six days is $1,000.
EV
Earned Value (EV) is a composite measurement of both cost and time performance in relation to
scheduled or planned cost and time performance. EV is calculated by multiplying the percentage of
work completed by the budgeted cost for the activity as laid out in the cost baseline.
Earned Value (EV) = % completed x Planned Value (PV)
In order to determine the EV of the project work to date, you will have to look back at the cost
baseline to determine how costs were assigned originally. If the PV was determined by the
percentage completed to date method, you will apply the same method of assessing the EV. In other
words, EV indicates the value of work actually performed during a particular time period.
Example: EV Calculation for Shed Project

The manager of the shed building project receives a project report at the end of day six, which says
that the flooring task ($200) is 100% complete and the drywalling task ($800) is 75% complete. To
calculate the EV for the completed work, you apply the following formula. Therefore, the calculated
EV for the project at the end of day six is $800.
EV = (100% x Flooring budget) + (75% x Drywalling budget)
EV = (100% x 200) + (75% x 800)
EV = 200 + 600
EV = $800
Note: To learn more, check out the video on Earned Value Analysis.
AC
Actual Cost (AC) refers to the total amount of costs incurred while accomplishing work
performed, either during completion of a schedule activity or during the completion of a WBS
component. Actual cost is calculated and documented once the work is complete. In other words,
AC indicates the actual money that has been spent for work that has been completed.
Example: AC Calculation for Shed Project

The shed building project report also states that the actual money spent on flooring is $180 and on
drywalling is $700. So, the actual cost for the project as of day six is $880.
EVM Measures for Schedule Control

The most commonly used EVM measures for schedule control are:
• Schedule Variance (SV = EV-PV)
• A positive SV indicates that the project is ahead of schedule.
• A zero SV indicates that the project is on schedule.
• A negative SV indicates that the project is behind schedule.
• Schedule Performance Index (SPI = EV/PV)
• An SPI number greater than 1.0 indicates that the project is ahead of schedule.
• An SPI of 1.0 means the project is on schedule.
• An SPI number less than 1.0 indicates that the project is behind schedule.
Note: Content related to schedule and costs has been dealt with as separate topics in this course.
For detailed information on Cost Variance (CV) and the Cost Performance Index (CPI), refer to
the “Control Project Costs” topic.
Example: Controlling the Project Schedule for an Elementary Reading Course

Project
The project team producing an elementary reading course is four months into production. The
performance reports indicate schedule performance problems. To get a better picture, the project
manager compares the actual work completed to the schedule baseline and calculates the SPI as
0.80. This figure confirms the concern that the project is behind schedule.
The project manager calls a core team meeting to determine the cause of the schedule variance and
the magnitude of the variance. According to the multimedia and technical leads, the major rework in
the text-to-speech option in the glossary is taking more time to implement than expected. It is taking
valuable resources away from other activities on the critical path.
The team members agreed that corrective action is necessary to bring the project back in line with
the original schedule baseline. Realizing that they still have to implement the change to the text-to-
speech option and that the project's end date cannot be extended, the team brainstorms other
corrective action alternatives. The team members decide to recommend adding one graphic artist
and one programmer to work on the text-to-speech issues for two months at a total cost of $15,000.
After discussing their recommendation with the project sponsor, the core team submits a change
request to the CCB. The CCB approves the change request and the project manager informs project
stakeholders of the decision. The project manager carefully monitors the situation and recalculates
the SV after one to two months. Trend analysis shows that the corrective action was effective in
bringing the schedule back in line with the baseline.
The project manager documents the problem, the causes of the variance, the alternatives considered,
the corrective action chosen, and the reason for the decision. In addition, the project manager
documents the results of the corrective action and files the documentation in the project archives as
lessons learned.
Schedule Control Chart

Another tool you can use to illustrate schedule performance is the schedule control chart. This
chart can be used to show trends in schedule performance. The following graphic is an example of a
schedule control chart plotting the variance in the schedule and shows that the project started
behind schedule and that corrective action was probably taken to bring the project back in line with
planned schedule estimates.
Figure 15-2: Using schedule control chart to track schedule performance.
Gantt Chart
A Gantt chart is an effective tool for providing up-to-date summary information and can be
extremely helpful for analyzing the project's overall time performance. The Gantt chart also shows
when milestones are scheduled and if those critical dates are still on track. Using the approved
schedule baseline as the standard for measuring progress, the project manager can collect reporting
information for each activity and use a Gantt chart to summarize data.
Figure 15-3: A software development Gantt chart.
Example: Gantt Chart for a Software Development Project

Dan is the project manager for a software development project. The estimated duration of the entire
project is four months. Dan decides early in the project life cycle that there will be eight reporting
periods and that work package owners will supply schedule performance reports every two weeks.
On the fifth reporting period, Dan receives schedule reports and plots the results on a Gantt chart,
as shown in the figure.
The Gantt chart shows that:
• Activities A, B, and C are finished.
• Activity B finished behind schedule.
• Activity C finished early.
• Activity D started a week late.
• Activity E is behind schedule.
• Activity F has not started yet.
Guidelines for Controlling the Project Schedule

Continually monitoring schedule performance and controlling changes to the approved project
schedule enables you to maintain the schedule baseline. To control the project schedule, follow
these guidelines:
• Develop and implement a schedule change control system. Make sure that your system:
• Is integrated with the project's integrated change control system.
• Includes the paperwork, tracking systems, and approval levels necessary for authorizing
schedule changes.
• Complies with any relevant contractual provisions when the project is done under contract.
• Complies with the guidelines specified in the schedule management plan.
• Evaluate change requests by asking these questions:
• What is the magnitude of the change when compared to the schedule baseline?
• What is the impact of the change on project cost and quality objectives?
• Use performance measurement techniques to compare actual schedule performance to planned
performance.
• Use schedule reports to monitor schedule performance.
• Calculate SV and SPI to determine whether the project is ahead of or behind schedule.
• Analyze the results of your performance measurements by asking these questions:
• What is the cause of the variance?
• What is the magnitude of the variance? Is the activity that is causing the variance on the
schedule's critical path? If so, this will indicate that your project finish date will be pushed out.
• Is it likely that the variance can be made up in the near future without corrective action or is
corrective action necessary to bring the schedule performance back in line with the baseline?
• Identify and document corrective action to take to bring expected future project performance in
line with planned performance. Depending on the priorities of your project, consider one or
more of the following alternatives:
• Fast-tracking
• Crashing
• Outsourcing
• Resource leveling
• Reducing the project scope
• Depending upon the nature of the change, you may need to revise the cost, schedule, or quality
performance baselines to reflect the changes and to form a new baseline against which to
measure future performance. Notify project stakeholders of any changes made to project
baselines.
• Use performance measurement techniques, including trend analysis, to monitor the changes.
• Are the changes being properly implemented?
• Do the changes bring about the desired results?
• Are new risks being introduced as a result of implementing the changes?
• Document lessons learned during schedule control for use on future projects. The
documentation should include:
• Causes of variances.
• Performance baselines affected by the changes.
• Rationale behind the recommended corrective action.
• Any other lessons learned during schedule control.
ACTIVITY 15-2
Controlling the Project Schedule
Scenario
The GCCG Seattle bank is undergoing minor renovations. The entire project is scheduled to last 16
weeks at a total cost of $25,000. It is eight weeks into the project and your manager asks you
whether the project is on schedule. You plan to use various analysis techniques to determine the
status.
1. You plan to measure project progress by comparing the actual performance

against planned performance as documented in the schedule and cost
baselines. What method will you use?
○ EV
○ AC
○ PV
○ EVM
2. According to your baselines, you expected to complete $15,000 worth of work

by the end of the eighth week. What is the term for this information?
○ AC
○ EV
○ PV
○ SV
3. According to your status reports, you’ve completed 48% of the work so far.
Based on this information, what is the EV and how did you calculate it?
A: EV = $12,000 = (.48 x 25000)
4. How do you determine the AC for your project?

A: The actual cost (AC) is not a calculated amount. Rather, it is obtained from your bank statement or
checkbook register.
5. With the data you have so far, what actions should you take at this point?
☐ Bring it to the attention of the CCB with some possible solutions.
☐ Use it to decide whether a corrective action is needed.
☐ Use it to compare actual schedule performance to planned performance.
☐ Bring it to the attention of project stakeholders.
6. What is the SV for your project, how did you calculate it, and what does it
indicate?
A: $12,000 (EV) - $15,000 (PV) = -$3,000. A negative SV indicates the project is behind schedule.
7. What is the SPI for your project, how did you calculate it, and what does it
indicate?
A: $12,000 (EV) / $15,000 (PV) = .80. An SPI below 1 also indicates the project is behind schedule.
8. What should you do with the results of your performance measurement

analysis?
A: Now that you know the project is behind schedule, you need to determine what activity is causing
the problem. Once the activity has been identified, you must then determine whether it is on the
critical path. If it is on the critical path, you most likely will have to take corrective action, such as
fast-tracking, compression, or resource leveling to meet your milestone dates and your project
deliverable deadline. Remember to analyze the impact of your corrective action on project cost
and quality performance baselines. You should continue to carefully monitor the schedule
performance to check the effectiveness of your corrective action.
TOPIC C
Control Project Costs
You established a cost baseline for your project. Now that work results are being produced, you
need to monitor project costs as your project progresses. In this topic, you will control project costs.
Cost Control
Controlling cost performance is a lot like watching for smoke from a fire tower. The earlier you see
the smoke, the easier it will be to put out the fire. Effective cost control will allow you to spot the
warning signs early, measure the cost variance, and make the necessary adjustments before cost
overruns cause the project to go up in flames.
You also want to monitor the rate at which you are using up your budget, called the burn rate, to
avoid running out of money before the scope has been completed.
EVM Measures for Cost Control

The most commonly used EVM measures for cost control are:
• Cost Variance (CV = EV - AC)
• A positive CV indicates that the project is performing under budget.
• A zero CV indicates that the project is on budget.
• A negative CV indicates that the project is performing over budget.
• Cost Performance Index (CPI = EV / AC)
• A CPI number greater than 1.0 indicates that the project is under budget.
• A CPI of 1.0 means the project is on budget.
• A CPI number less than 1.0 indicates that the project is over budget.
Example: Cost Control for a Project

The project team for the preschoolers' educational website implemented the change to the cost
baseline required to bring the schedule back in line with the schedule baseline after adding the added
functionality. Ben, the project manager, continually monitors the revised cost baseline by calculating
the CV and CPI to determine whether the project is performing over or under budget at regular
reporting intervals. Using EVM, Ben analyzes any variances to determine their cause and magnitude.
As of the eighth reporting period, only minor variances in cost performance occur. These variances
may be corrected by renegotiating contracts and by verifying the estimates of work still to be done,
resulting in lower estimates.
Trend analysis conducted at the sixth, seventh, and eighth reporting periods indicates that the
corrective actions were effective in maintaining the cost baseline. The project manager documents
the cost variances, their causes, corrective action, and the results of the corrective action as lessons
learned for future projects.
Cost Control Chart

The cost control chart can be used to illustrate trends in cost performance. The following graphic
shows the cost variance over time, using data for actual cost and earned value. The actual cost is
always greater than the earned value, and we can conclude that the project is progressively more
over budget as time goes on.
Lesson 15: Monitoring and Controlling Project Constraints | Topic C
Figure 15-4: Using a cost control chart to track cost performance.
Performance Reporting Techniques

Performance reviews are meetings held to review the schedule activity, work package, or cost
account status and progress, usually in concurrence with one or more performance reporting
techniques.
Performance Reporting Description

Technique
Variance analysis Comparing actual project performance to projected performance. For

the most part, cost and schedule variances are analyzed. However,
variances from the project scope, resource, quality, and risk are taken
into consideration.
Trend analysis Inspecting project performance over a period of time to determine if
performance is increasing or decreasing.
Earned value performance Compares the baseline plan to actual performance.
EVM Performance Measurement Analysis Techniques

The cause and magnitude of variance and corrective action for variance are all important factors in
schedule and cost control. Several standard values for a schedule activity, work package, and control
account are involved in the earned value technique. The following table provides calculations to
determine cost performance efficiency.
Note: You won't be performing all of these calculations in this course. However, this detailed
list is provided for your future reference.
Cost Formula Description
Estimate to Complete (ETC) The total budgeted cost of the project at completion.
ETC = BAC - EV or (BAC - EV) / CPI
Estimate at Completion (EAC) The forecasting technique, based on an updated, mid-project

using new estimate estimate. This method requires making a new ETC for all
remaining project work and adding that estimate to the ACs
incurred to date. It should be used when original estimating
assumptions are flawed and conditions have changed.
EAC = AC + ETC
Estimate at Completion (EAC) This forecasting method uses the sum of the ACs and the
using remaining budget Budget at Completion (BAC) minus the EV. It should be
used when current cost variances are atypical of future
variances.
EAC = AC + BAC - EV
Estimate at Completion (EAC) This forecasting method involves adding the AC to the
using CPI difference of the BAC and the EV divided by the CPI. It
should be used when current variances are typical of future
variances.
EAC = AC + ((BAC - EV) / CPI) or EAC = BAC / CPI
Variance at Completion (VAC) The estimated cost overrun or underrun for completing project
work. A negative VAC indicates a project overrun; a positive
VAC indicates a project underrun.
VAC = BAC - EAC
To-Complete Performance An indicator of the usage of resources for the remainder of the
Index (TCPI) based on BAC project.
TCPI = (BAC - EV) / (BAC - AC)
To-Complete Performance Index If management decides that the BAC is not achievable, a new
(TCPI) based on EAC EAC is created by the project manager.
TCPI = (BAC - EV) / (EAC - AC)
Summary of Earned Value Management Calculations

You can use the information presented in the schedule and cost control topics to evaluate a project
from an Earned Value Management perspective. You will compute schedule and cost performance
values for each project activity, then use the results to manage those activities that are behind
schedule and/or over budget.
The project manager analyzes the information given in the table and graph and determines that the
AC to perform the work is more than its EV. This indicates a negative CV and a budget overrun. In
addition, the EV is less than the PV, which indicates a negative SV.
Figure 15-5: Project schedule showing planned and actual work.
Figure 15-6: EVM calculations for project schedule.
The combination of both a negative SV and negative CV indicates that the project is performing
over budget and producing less work than scheduled. The project manager uses this information to
find out the causes of the variances and determine the appropriate corrective action necessary to
bring the cost and schedule performance back in line with the baselines. He repeats the analysis at
regular intervals to monitor the results.
Note: Content related to schedule and costs has been addressed as separate topics. This example
is provided to summarize using EVM calculations to monitor and control the project schedule
and cost.
Guidelines for Controlling Project Costs

Continually monitoring cost performance and controlling changes to the project's budget enables
you to maintain the cost baseline. Controlling project costs also helps avoid budget problems that
may jeopardize the successful completion of a project. To control cost performance, follow these
guidelines:
• Develop and implement a cost change control system. This can be integrated with the project's
integrated change control system. Make sure that your system:
• Includes the paperwork, tracking systems, and approval levels necessary for authorizing
changes to the cost baseline.
• Complies with any relevant contractual provisions when the project is done under contract.
• Complies with the guidelines specified in the cost management plan.
• Evaluate change requests by asking these questions:
• What is the magnitude of the change when compared to the cost baseline?
• What is the impact of the change on the project schedule and quality objectives?
• Use performance measurement techniques to compare actual cost performance to planned
performance.
• Use performance reports to monitor cost performance.
• Calculate CV, CPI, and VAC to determine whether the project is performing over or under
budget.
• Use earned value analysis and management to continually measure cost and schedule
performance and to assess the value of work performed to date.
• Analyze the results of your performance measurements by asking these questions:
• What is the cause of the variance?
• What is the magnitude of the variance? Is the activity causing the variance on the critical
path?
• Is it likely that the variance can be made up in the near future without corrective action, or is
corrective action necessary to bring the cost performance back in line with the baseline?
• Identify and document corrective action to take to bring expected future cost performance in
line with planned performance. Depending on the priorities of your project, consider one or
more of the following alternatives:
• Recheck cost estimates to determine whether they are still valid. Avoid the temptation to
reduce estimates simply to make the cost performance look better.
• Identify alternate, cheaper sources for materials. For example, consider using a lower grade
building material to keep the project costs on target.
• Brainstorm ways to improve productivity. Consider using an efficiency expert to identify
areas where productivity could be bolstered with training or guidance.
• Change the schedule baseline. When a schedule change is contemplated, make sure that it is
done in communication with customers and other key stakeholders to determine the schedule
flexibility. If finishing on time is not as important as finishing on budget, cost overruns can be
corrected through schedule changes.
• Reduce the project scope. One way to reduce the scope is to prioritize the remaining work
and eliminate work with the lowest priority. Another option is to plan for a Phase 2 project to
cover unfinished scope items. Reducing the project scope must be done according to the
integrated change control system and with approval of the customer and the sponsoring
organization.
• Depending upon the nature of the change, you may need to revise the cost, schedule, or quality
performance baselines to reflect the changes and to form a new baseline against which to
measure future performance.
• Review the cost management plan as you begin to monitor cost performance. Follow the
systematic procedures outlined in the cost management plan as you identify the need for
corrective action and baseline adjustments.
• Notify project stakeholders of any changes made to project baselines.
• Use performance measurement techniques, including trend analysis and EAC, to monitor the
changes.
• Are the changes being properly implemented?
• Do the changes bring about the desired results?
• Are new risks being introduced as a result of implementing the changes?
• Document lessons learned during cost control for use on future projects. The documentation
should include:
• Causes of variances.
• Performance baselines affected by the changes.
• Rationale behind the recommended corrective action.
• Any other lessons learned during cost control.
ACTIVITY 15-3
Controlling Project Costs
Data Files
C:\095016Data\Monitoring and Controlling Project Constraints\Cost Performance Report.docx
C:\095016Data\Monitoring and Controlling Project Constraints\Cost Baseline.docx
Scenario
As the media campaign for the GCCG Seattle bank project progresses, you ask each of the work
package owners to give you a cost performance report for the sixth reporting period. The first
report you receive is the Cost Performance Report document from the Public Meeting work
package owner. You compare the information received in the report against the original cost
baseline for the work package (Cost Baseline document) to measure its cost performance to date.
You will work with the work package owners to calculate the EV, PV, CV, SPI, and SV for the
report.
Use the data available in this table to perform the calculations for the questions in the activity.
1. Follow your instructor's directions to open C:\095016Data\Monitoring and

Controlling Project Constraints\Cost Baseline.docx and C:\095016Data
\Monitoring and Controlling Project Constraints\Cost Performance
Report.docx.
Note: Instead of spending the time in class performing the calculations, your
instructor might have you open the Completed Cost Performance Report.docx
and interpret the EVM data that has been completed.
2. Calculate the total EV for the Public Meeting work package in the 6th week
reporting period. With a total budget of $33,000, what is the EV for the work
package, and what does it represent?
A: The EV is $21,600. It represents the value of the work performed on the work package.
3. According to the cost baseline, the PV up through the sixth reporting period is
$22,000. What is the CV for this work package, and what does it tell you
about the project cost?
A: The CV is +$5,600 and indicates that the project is performing below budget; however, the AC for
the Hold Event activity isn't factored into the calculation because it hasn't happened yet.
4. Based on the formula EV/AC, you determine that the CPI for this work
package is 1.35. When you take the CPI and CV into consideration, how is
this work package performing?
A: A CPI greater than 1.0 and a positive CV indicates the work package is performing better than
anticipated when compared against the budget.
5. True or False? When determining the nature of a cost change, you need to
review the cost management plan to identify corrective actions and baseline
adjustments.
☐ True
☐ False
TOPIC D
Manage Project Quality
Your quality management plan describes how your project team will move forward. Now that your
project is well underway, you need to monitor the work results to ensure that they meet the quality
standards you defined in your quality management plan. In this topic, you will manage project
quality.
Companies face fierce competition to minimize development time and bring products to market
before competition does. At the same time, organizations are faced with the challenge of staying
competitive by keeping customers' costs low. As a result, quality is a component that permeates all
aspects of project work. Effective quality control can streamline project work, saving time and
money while continuing to maintain customer and stakeholder satisfaction. Controlling quality
ensures that your project meets or exceeds your customers' quality requirements.
Quality Control Measurements

Quality control measurements are measurements used to assess a product's adherence to the
specified standards. The measurements used may be quantitative or qualitative. Quality control
measurements can be used to measure the quality of elements such as products, processes, and
performance.
Example: Quality Control Measurements at a Turbine Manufacturing Company

A water turbine manufacturing company made quality specifications for its turbines. The
specifications state that the deviation between two blades of a turbine should not exceed 0.20
degrees. The company used a 3D digitizing system to examine the turbines' adherence to the
specified quality. If any turbine has blades with inclination more than the specified measurements,
the turbine will be rejected.
Causes of Variance
Causes of variance in a process or item are the sources or reasons for deviations from the expected
standard. There are two main types of causes of variance: random and special.
Random, or common, causes are those everyday occurrences that are always present in project work;
as such, they may be unavoidable. They may be either insignificant and have little impact on the
overall quality performance or they may have a dramatic effect on quality. The corrective actions
taken in response to random causes of variance are typically long term and generally involve overall
changes to the process.
Special, or assignable, causes are unusual, sporadic occurrences; they are the result of some
unexpected circumstance and are typically not caused by a flaw in the overall production process.
Like random causes, special causes of variance can also have a dramatic effect on performance. By
analyzing instances of the occurrences of special variances, you may be able to isolate the cause and
take corrective action to avoid the negative effects on quality performance. The corrective actions
taken in response to special causes of variance are typically short term and do not involve overall
changes to the process. Special causes do not occur frequently, but it can sometimes be decided not
to act upon them because the cost of action may be much more than the benefit.
Example: Causes of Variance in the Metropolitan Bus Schedules

A metropolitan bus company is trying to improve customer satisfaction in one key area: the buses
consistently run late. Random causes of the schedule variances include the weather and traffic
conditions: these are unavoidable, everyday occurrences that will have an impact on how closely the
Lesson 15: Monitoring and Controlling Project Constraints | Topic D
buses can meet their schedules. A special cause of schedule variance is a minor traffic accident. This
is an isolated, unexpected issue that may have a dramatic effect on the bus's schedule that day, but it
does not indicate a process flaw.
Significance
Significance of the variance analysis is the weight or importance given to variances to determine
whether and what type of corrective action needs to be taken. The project manager must determine
the significance of the variance, keeping the balance of the three main constraints in mind.
For example, if the cost variance is $5,000 on a $5 million project, the significance is very low. If the
cost variance is $5,000 on a $50,000 project, the significance is much higher.
Example: Schedule Variance

A project manager was responsible for ten projects occurring concurrently and was understaffed.
Seven of the projects were performing on schedule. The other three projects had SPIs of 0.98, 0.96,
and 0.975. Even though the SV was greater on the second and third projects, they were small and
not schedule-driven. The project with the SPI of 0.98 was a mission-critical application that was
schedule-driven, so the project manager temporarily diverted team members from some of the other
projects to correct the variance on this project.
Root Cause Analysis

Root cause analysis is a technique used to determine the true cause of a problem that when
removed, prevents the problem from occurring again.
Example: Root Cause Analysis for a Project

A customized application was in development for the sales force, to enable them to print invoices at
the customer location. The program sporadically miscalculated the sales tax due on the invoice.
Although initially it appeared that the problem was with the tax calculation portion of the program
code, several hours of debugging determined that the root cause was that some of the products in
the database had been misclassified, causing the wrong rates to be used.
Tolerances
Tolerances are measurement values that determine if a product or service is acceptable or
unacceptable. They are the standards against which data collected will be analyzed. Tolerances are
typically expressed in ranges. If the result of the test falls within the range specified by the tolerance,
it is acceptable. If not, it is considered unacceptable. Tolerances are specified in the quality
management plan.
Example: Tolerance Level for a Product's Weight

The tolerance for a product's weight may be 5.8 grams ± 0.2 grams. If a product weighs more than
6.0 grams or less than 5.6 grams, it is considered unacceptable because it exceeds the tolerance and
does not meet the specification.
Variability Indications
Measurements that exceed the upper and lower control limits in a control chart are considered to be
an indication of instability. The variability expressed is atypical for the process and may be an
indication of a special source of variance.
It is important to remember that, although control charts can effectively show variability, they can
neither indicate the source of the variability nor show performance in relation to expected
performance. The control chart shows only the capability of the process to produce similar
products. It does not show the conformity of that process to a customer's specifications.
Standard Deviation and Variability

Project managers use control charts to check for instability because processes always have some
fluctuation and variability. In measuring deviations, if one has six standard deviations between the
process mean and the nearest control limit defined in the control chart, practically no items will fail
to meet specifications. This is termed the Six Sigma limit. In terms of controlling processes, the Six
Sigma limit is significant because it provides a guideline for monitoring quality and adjusting it as
necessary for processes where extremely high-quality results are required.
Data in a statistically normal distribution will exhibit deviation as follows:
• About 68.26% of the values lie within +1 standard deviation of the mean.
• About 95.46% of the values lie within +2 standard deviations of the mean.
• About 99.73% of the values lie within +3 standard deviations of the mean.
The Six Sigma Process

Six Sigma has also evolved into a business management strategy that seeks to improve the quality of
process outputs by identifying and removing the causes of defects and variability in processes. To
achieve process Six Sigma, a process must not produce more than 3.4 defects per million
opportunities.
Histograms
Histograms are quality control tools that organize individual measured values in a data set
according to the frequency of occurrences. Frequency can be either the number or percentage of
occurrences. Histograms can be used to track many items, such as the frequency of failures.
Histograms show the shape of the distribution of values as a bar chart. In addition, they make it easy
to show the range, mean, and variation of data. You can use histograms to:
• Show the distribution of data.
• Evaluate both attribute (pass/fail) and variable (measurement) data.
• Determine how variable the process is.
• Analyze whether the variation is random.
Figure 15-7: A sample histogram showing a range of data grouped together into intervals.
Pareto Charts
A Pareto chart is a histogram that is used to rank causes of problems in a hierarchical format. The
goal is to narrow down the primary causes of variance on a project and focus the energy and efforts
on tackling the most significant sources of variance. The variables in the chart are ordered by the
frequency of occurrences.
A typical Pareto chart is used to represent data, which is first organized in descending order of
occurrences and then plotting the cumulative curve. The bars represent the number of failures for
each of the causes (A through E). In this example, approximately 72 percent of the total number of
failures are due to causes A and B (320 out of 440). The project team can easily see that they should
focus most of their corrective action efforts on those two causes.
Figure 15-8: A Pareto chart.
Pareto Analysis
The analysis used to develop Pareto charts is referred to as a Pareto analysis, after Vilfredo Pareto,
an Italian economist of the late 19th and early 20th century. In his analysis, Vilfredo Pareto found
that 80 percent of the land in late 19th century Italy was controlled by 20% of the population.
During a Pareto analysis, data is collected in various forms, such as reports, inspections, and surveys.
This data is then analyzed to isolate the major causes of project variance and is assigned a frequency
or percentage value. The resulting chart is a histogram that identifies specific sources of variance and
ranks them according to their effect on the quality performance. Pareto charts can be very useful
tools throughout the entire project for prioritizing and focusing on corrective actions. Comparative
analysis of Pareto charts at different points in the project can be an effective tool for determining
and communicating the effect corrective actions have had on curtailing or eliminating variability.
The 80/20 Rule

Pareto charts are based on Pareto's law, also known as the 80/20 rule. The 80/20 rule is a general
guideline with many applications; in terms of controlling processes, it contends that a relatively large
number of problems or defects, typically 80 percent, are commonly due to a relatively small number
of causes, typically 20 percent.
Run Charts
A run chart is a line graph showing plotted data points in chronological order. It could show trends
in a process or improvements over time. Trend analysis is a tool that uses run charts to
communicate forecast information based on the project's current performance. It is also used to
monitor technical, cost, and schedule performance.
Figure 15-9: A sample run chart displaying plotted data points in chronological order.
Example: Managing Quality for the Arithmetic on a Stick Project

As the project team for the Arithmetic on a Stick project continues through production, the team
continually monitors work results by conducting online reviews of the completed lessons and
documenting any problems in the project's database. During one of the core team's meetings, the
project manager does a quick trend analysis and notices that there is an unusually high number of
problems in the database for the fifth lesson when compared to the previous four lessons.
The project manager asks the quality control engineer to evaluate the problems to determine which
are generating more problems. The quality control engineer does a Pareto analysis and plots the
results on a Pareto diagram. Because curriculum changes and technical problems are generating
most of the problems, the team decides to focus on those two issues. Further analysis of the
problems caused by technical reasons reveals that one technical problem was the cause of all
trouble. The technical lead was able to isolate the problem and resolve the issues.
The curriculum changes were not so easily resolved. A new curriculum developer had been hired
recently. The new curriculum developer was having difficulty understanding the project team's
development process and consistently changed lessons after they had already been produced and
programmed. This resulted in change requests for the art director and for the programmers.
Intensive training sessions were suggested and implemented.
Trend analyses conducted on the sixth, seventh, and eighth lessons indicated that the corrective
actions were effective in reducing the number of problems due to curriculum changes and technical
problems. Now, the highest number of problems was due to curriculum and programming errors, so
the team focused their attention on those issues. As they moved through the remaining lessons, the
overall number of problems in the database significantly declined, indicating an overall increase in
project quality.
Scatter Charts
A scatter chart (or diagram) is a diagram that displays the relationship between two variables. The
diagram plots dependent and independent variables. The independent variable is usually marked on
the X-axis and the dependent variable on the Y-axis. The more closely the points form a diagonal
line, the more closely they are related.
Figure 15-10: A sample scatter chart.
Statistical Sampling
Statistical sampling is a technique that is used to determine the characteristics of an entire
population based on actual measurement of a representative sample of that population. Sampling is
a way to determine if large batches of a product should be accepted or rejected without having to
test every single item produced. Its goal is to produce a process that does not require inspection of
every item. The size of samples and the frequency and cost of sampling must be determined when
planning for project quality.
A common example of statistical sampling is polling. Polling organizations ask questions to a small,
random sample of participants. The answers given by the sample group are used to suggest how an
entire group may feel regarding an issue.
Sample size can affect the accuracy of results. Generally speaking, the larger the sample size, the
higher the likelihood the sample will truly represent the variability of the population. In quality
terms, the larger the sample size, the more confidence you can have that your measurements reflect
the quality level of the entire product population.
Note: It is important that members of a team whose focus is on quality control have a strong
understanding of statistics. Other members need only have a basic understanding of statistical
concepts.
Example: Statistical Sampling Through Polling

A common example of statistical sampling is polling. Polling organizations ask questions of a small,
random sample of participants. The answers given by the sample group are used to suggest how an
entire group may feel regarding an issue.
The Statistical Sampling Process

The statistical sampling process involves dividing sampling data into two categories—attribute
and variable—each of which is gathered according to sampling plans. Because corrective actions are
taken in response to analysis of statistical sampling and other quality control activities and because
trend analysis is performed, defects and process variability should be reduced. The use of statistical
sampling during quality control can reduce the overall quality cost by helping to forecast and prevent
errors before they occur.
Figure 15-11: The statistical sampling process.
Attribute Sampling Data

Attribute sampling data is data from the sample that is counted, such as the number of employees
participating in profit sharing, the number of customer complaint calls, and the number of returned
items.
Attribute sampling uses no scale. It simply tells you whether or not a standard has been met.
Implementing an attribute sampling plan is fairly simple. Team members may be required to count
the number of items that do not conform to a quality specification or that show evidence of a
quality defect. If the number exceeds a certain limit, the sample fails to meet quality specifications.
Example: Attribute Sampling for a Random Sample of Widgets

A project team is given a sampling plan that involves taking a random sample of 500 widgets and
counting the number of widgets that do not meet the relevant operational definition. The plan states
that there must be fewer than 10 defective widgets in order for the sample to pass the inspection.
The team inspects each of the widgets, compares them to the standard specified by the operational
definition, and determines that 30 of the widgets do not meet the standard. The sample did not pass
the inspection because the number of defective widgets exceeded the minimum acceptance level of
10.
This is an example of attribute sampling because no scale is used. The test was a pass-or-fail
inspection to determine whether the sample exceeded a certain acceptance level.
Variable Sampling Data

Variable sampling data is data from a sample that is measured on a continuous scale, such as:
• Time
• Temperature
• Weight
For variable data, the compliance to specifications is rated on a continuous scale. Measurements can
fall between an upper and a lower range. To implement a variable sampling plan, you will collect a
sample of the product and take some specific measurement to determine if the sample meets quality
specifications. Variable samples typically provide the same level of accuracy as attribute samples with
much smaller sample sizes.
Example: Variable Sampling by an Ice Cream Manufacturing Company

A company manufacturing premium ice cream will use variable sampling data to ensure quality
control. Not every batch of ice cream produced will be tested for quality measurements, but testers
will take measurements of random batches and test for flavor, consistency, color, texture, visual
appeal, and other internal markers for quality.
Guidelines for Managing Project Quality

Managing project quality ensures that the quality complies with relevant quality standards. Meeting
quality standards enhances the team's ability to deliver an overall project performance that meets
project objectives. To effectively manage project quality, follow these guidelines:
• Conduct inspections to detect quality errors as project work is ongoing.
• Consult the quality management plan for the procedures and guidelines to use during quality
control.
• Check work results against relevant operational definitions and checklists. Document the
results.
• Use statistical sampling to determine whether large batches of a product should be accepted
or rejected based on the quality of the sample(s). Ensure that samples are chosen randomly
and that the sample size is large enough to demonstrate the variability of the entire group.
• Analyze quality variance to determine the root cause of the problem.
• If the same problem keeps recurring, you have treated the symptoms rather than solving the
root cause of the problem. Before you can take corrective action, you must determine the
root cause of the problem.
• Use Pareto diagrams to focus corrective actions on the problems having the greatest effect on
overall quality performance and to measure and monitor the effect of corrective actions over
time.
• Use control charts to analyze and communicate the variability of a process or project activity
over time. As you analyze performance with control charts, you must not only look for variability
outside the control limits, but you should also analyze patterns of data within control limits.
• Identify ways to eliminate causes of unsatisfactory results in order to minimize rework and bring
nonconforming items into compliance. Use flowcharts to identify redundancies, missed steps, or
the source of quality performance problems.
• Initiate process adjustments by implementing corrective or preventive actions necessary to bring
the quality of work results to an acceptable level. Major adjustments must be made according to
the project's change control system.
• Continue to monitor, measure, and adjust quality throughout the project life cycle.
ACTIVITY 15-4
Controlling Project Quality
Scenario
You are managing the construction of the GCCG Seattle bank project. The HVAC contractors are
completing the work for the installation of the heating and cooling activity. Your team developed
operational definitions and checklists for this work, and you provided these to the lead quality
control engineer. Historically, on similar projects, there has been no more than an average
temperature variance of one degree between floors. The quality inspections reveal that the second
floor is three degrees cooler than the first floor.
1. Given that there is a significant variation in temperature between the first and
second floors, what should be done at this time? Select all that apply.
☐ Report this information to the appropriate people, according to the project's change control system.
☐ Because of the potentially high rework cost, finding a solution should be a top priority.
☐ Initiate process adjustments.
☐ Continue to monitor quality as the HVAC installation continues.
2. The quality management plan documented acceptability of the installation

with a tolerance of a one-degree variance between floors. What will you do to
determine the reasons for the variance in quality tests?
A: You will need to get experts involved to determine the root cause (source) of the variability so that
appropriate corrective action can be taken. Take a closer look at how the HVAC installation is
being done among the contractors. Also consider how the quality testing is being done. Is the
same quality control engineer inspecting all the floors?
3. After researching the cause of the variance, you discover that the testing was
done by one quality control engineer. You then meet with the contract
supervisor to investigate the process. You discover that the duct work on the
second floor was installed over a weekend by a different, less experienced
crew. What should your next step be?
A: Recommend corrective action to the supervisor to bring in the first floor crew to troubleshoot the
variance between the floors. It is important that you consider the impact any corrective action may
have on the project budget and schedule. Adjustments must be made according to the project's
change control system.
Summary
In this lesson, you monitored and controlled project constraints. Without controlling project
constraints, your project may exceed its promised deadline and go over budget. Monitoring and
controlling the project schedule, scope, cost, and quality helps your organization maintain its
competitive advantage in the marketplace.
Of the three components, schedule, cost, and scope, which according to you
has the most impact on the program outcome?
A: Answers will vary, but may include: any of the three components, cost, time, and scope. Cost change
may affect the need for the increase in money that needs to be spent, change in schedule may affect
the time that may be required to perform an individual activity, and scope change may affect the
efforts that need to be put in to complete a project successfully. Answers will depend on the
objectives of the project and what its alignment will be to the three components.
What performance measurement techniques will you use in the future to

measure schedule performance?
A: Answers will vary, but may include: Schedule Variance (SV), Schedule Performance Index (SPI), trend
analysis, variance analysis, schedule reports, and Estimate at Completion for time (EAC - time).
Lesson 15: Monitoring and Controlling Project Constraints |
16 Monitoring and
Controlling Project Risks
Lesson Time: 45 minutes
Lesson Introduction
During project planning, you developed a risk management plan that describes how the
project team will respond to identified risks. Now that your project is in full swing, you need
to continue to monitor project work for new and changing risks.
Monitoring and controlling project risks may involve choosing alternative strategies,
executing a contingency plan, or taking corrective actions to keep the project on track. If an
assessed risk changes during the project's life cycle, it is important to analyze it quickly to
determine if a threat or opportunity may result. As the project manager, your command of
the tools and techniques to monitor and control project risks will enhance your ability to
successfully complete your project. In this lesson, you will continue to monitor and control
the project, focusing on project risk.
Lesson Objectives
• Monitor and control project risks.
TOPIC A
Monitor and Control Project Risks
In the planning process group, you developed a risk management plan and a risk response plan.
During project execution, you need to implement those plans. In this topic, you will monitor and
control project risks.
You identified the project risks, quantified and ranked them, and planned an appropriate response
to each risk. That's just the beginning. It is up to you, as project manager, to implement these risk
response plans appropriately. Effective project risk monitoring and control ensures that you respond
in a reasoned manner.
Project Status Meetings

Project status meetings are regularly scheduled meetings that are conducted to discuss the current
status of the project with the project team members and other stakeholders. Risk identification and
management is one of the agenda items in the project status meeting. The time taken to address the
identified risks depends on what risks have been identified, their priority, and complexity of
response.
Example: Handling Project Risks During Organizational Restructuring

As the project work for a driver's safety video nears completion, the parent organization announces
a restructuring of the department. As part of the restructuring effort, two of the project's resources,
one graphic designer and one video producer, are transferred. The transfer of those resources will
significantly impact the project and may cause some turbulence in the team.
In addition to their regular risk review meetings, the project manager calls an emergency core team
meeting to develop a strategy for dealing with this new risk. The risk officer and the project sponsor
attend the emergency meeting in which the group brainstorms alternative strategies in response to
the risk.
Because two other projects have been canceled as part of the organization's restructuring plan, other
graphic designers are now available. Those resources will be distributed among the various other
projects that had lost resources. The new team members will need to be trained.
With the deadline looming, the project manager allocates a portion of the contingency reserves to
cover the additional expenses that will be incurred to complete the video production, which had to
be outsourced. This is a serious setback because four videos still need to be written and produced.
The multimedia lead takes ownership of this new risk. He hires a seller to edit the videos using the
in-house editing equipment. He also collaborates on rewriting the scripts to make use of stock
footage rather than having to shoot new footage to produce the four remaining videos. A risk
response audit shows that the team's response plan for dealing with this unforeseen risk was
effective in reducing its impact on the project objectives. The team updates the project's risk
database to reflect the actions taken and the results of those actions.
Risk Reassessment
Risk reassessment is the process of reexamining and reevaluating the risks in a project risk register.
It involves identifying new risks, reassessing current risks for their probability and impact, and
closing the outdated risks. Risks can be reassessed during project status meetings. The extent of risk
assessment at the status meetings depends on how the project is flowing compared to its objectives.
For example, if an unanticipated risk develops, it may be necessary to have additional response
planning.
Lesson 16: Monitoring and Controlling Project Risks | Topic A
Figure 16-1: The process of risk reassessment.
The Project Risk Response Audit

The project risk response audit is the process of examining the team's ability to identify risks, the
effectiveness of risk response plans, and the performance of risk owners. The audit may be
conducted by a third party, the project's risk officer, or other qualified personnel.
The auditor reviews the risk register and data concerning project work results to determine whether
the risk management activities are producing the desired results. In addition, the auditor evaluates
the performance of the risk owner in implementing the response plan. The auditor documents the
results of the audit and makes recommendations for improvement in the project's risk management
efforts.
Figure 16-2: Risk response audit for a project.
Trend Analysis
Trend analysis is the process of examining project results over time to determine if performance is
improving or deteriorating. A risk or a risk category is tracked over a period of time to determine
whether its exposure to the project is increasing or decreasing. Trend analysis helps determine the
categories of risks that are increasing or decreasing in their exposure to the project. It involves
reviewing the various trends in project performance on a regular basis and can be used to predict
future performance. Project trends should be reviewed using data collected on performance. Results
from trend analysis may forecast a difference of cost and schedule from their initial targets. Earned
value analysis and various other techniques can be used to monitor project performance.
Guidelines for Controlling Project Risks
Controlling project risks ensures that appropriate responses to risk events are implemented. To
effectively control project risks, follow these guidelines:
• When an event affects the project objectives, consult the risk response plan to execute actions as
mentioned in the risk response plan.
• Monitor the environment for any new risks that may arise due to:
• Changes in the project objectives. Any change to the overall cost, schedule, or quality or
performance level of your project will change your overall risk picture.
• Changes to the scope. Whether the scope of the project increases or decreases, the risk
picture changes. For example, increasing the scope of the project without assessing the
impact on time or cost can spell disaster. Changes in the scope require iterating the risk
management process.
• Changes within the organization, such as restructuring within functional departments, that
may mean some of the resources you were counting on will no longer be available for
assignment to the project.
• Changes outside of the organization such as technological changes, changes in industry
standards, economic or market changes, or legal or regulatory changes.
• Monitor the effectiveness of the risk response, contingency, and fallback plans laid out in the risk
response plan. Make sure that your monitoring is done in accordance with the policies and
procedures defined in the risk management plan.
• Conduct project risk response audits to examine and document the effectiveness of the risk
response plan and the performance of the risk owner.
• Perform earned value analysis to monitor overall project performance against the baselines. If
the project is deviating significantly from the baseline, reiterate the risk identification and
analysis processes.
• Conduct periodic project risk reviews that are part of the project schedule to communicate
risk response effectiveness and to identify new risks or triggers that may require additional
response planning.
• Measure technical performance to determine whether variances are significant enough to
warrant additional risk response planning.
• If the response plans are not effective in reducing or eliminating risk, consider implementing
the fallback plan.
• Deal with unforeseen risks by systematically planning a reasoned response.
• Develop workarounds for risks with low risk values.
• Perform additional response planning for risks with significant impact on project objectives.
• Update project documentation as changes to risks are indicated.
• Keep the risk response plan up-to-date when risks occur and response plans are changed or
added.
• Issue change requests in accordance with the integrated change control system.
• Update performance baselines if the changes are significant.
• Update risk identification checklists to help manage risk in future projects.
• Update the risk register with the status of each risk. Add any new risks that have been
identified.
• Identify the variances and trends in project performance and manage the contingency reserve so
that the additional time, money, and resources are utilized as planned.
• Periodically check the project performance and compare the project's technical performance to
the planned performance as outlined in the project plan.
ACTIVITY 16-1
Scenario
During the course of GCCG's New Seattle bank project, you receive an email message from the
electrical contractor outlining a 3-week delay in the Install and Terminate Electrical Devices activity,
due to defective material. The electrical contractor's SOW states that if there is a potential delay, all
subcontractors must inform you in writing within 48 hours of the onset of the delay, and the email
message meets this requirement. The project has already been significantly delayed due to severe
weather conditions. Although your risk analysis included a schedule contingency for weather
conditions and the receipt of defective materials, this is a serious problem that threatens to further
delay the project.
1. What action should you first take with regard to the material delay?
○ Monitor the environment for new risks.
○ Conduct a project risk response audit.
○ Update performance baselines.
○ Consult the risk response plan.
2. Fortunately, you developed a very robust risk response plan. Based on the
vendor performance report, you conclude that chances of delay have now
become very high (from an earlier rating of high). You now need to decide
what will be your next step.
○ Execute the actions specified in the risk response plan.
○ Follow the risk management process.
○ Implement the fallback plan.
○ Develop a workaround.
3. The contractor suggests that it may ultimately be more cost-effective to buy

materials from another contractor, although the initial cost of materials will be
higher. What are the considerations for changing contractors?
A: Answers will vary, but may include: although the cost of materials will be higher when purchased
in this manner, the cost of the schedule delay may even be more expensive. By buying materials
right away, you will forestall any additional work delays. You will also need to consider the
potential impact and additional risks that may be induced if deciding to buy from another
contractor, and whether changing contractors will affect quality.
4. Once the issue is resolved, you and the team continue to examine the project
results over time to determine if performance is improving or worsening.
Which analysis process are you using?
○ Trend analysis
○ Process analysis
5. At all status meetings, you identify new risks, examine and evaluate the
current risks for their probability and impact, and close outdated risks. What
process are you using?
○ Performing trend analysis
○ Planning project risk responses
○ Performing risk reassessment
○ Monitoring the environment for new risks
6. How do you deal with unforeseen risks?

○ Perform additional response planning for low-impact risks.
○ Develop workarounds for high-impact risks.
○ Have a contingency fund for the project.
○ Perform additional response planning for high-impact risks.
7. What steps are performed when reassessing project risks? Select all that
apply.
☐ Identifying new risks.
☐ Closing outdated risks.
☐ Examining the team's ability to identify risks.
☐ Examining the effectiveness of risk response plans.
Summary
As the project manager, you are responsible for monitoring the risks facing your project and
controlling them appropriately to ensure the successful completion of your project.
How have changes to the business environment affected your project's risk
control efforts?
A: Answers will vary, but may include: changes, such as a change in leadership or regulatory changes
might introduce new risks that may affect the performance of the project. These changes need to be
analyzed during the risk assessment conducted in periodic project status meetings to understand the
impact on the project.
What is your biggest challenge when it comes to monitoring and controlling

risks?
A: Answers will vary, but might include developing a plan for responding to all risks, especially those that
are unforeseen or unexpected. Also, identifying new risks in an ongoing project.
Lesson 16: Monitoring and Controlling Project Risks |
17 Monitoring and
Controlling
Procurements
Lesson Time: 45 minutes
Lesson Introduction
You selected a vendor to fulfill your project's procurement requirements. Now, you need to
ensure that the vendor's performance meets the contract requirements. In this lesson, you
will administer project procurements.
Lesson Objectives
• Monitor and control vendors and procurements.
• Handle legal issues associated with procurements.
TOPIC A
Monitor and Control Vendors and Procurements
Keeping the project on time and within budget focuses on monitoring and controlling the vendors,
procurement documentation, contract change control system, and other systems that relate to the
payment, records, and budget-related issues for the project.
Vendor Management
Vendor management is a management technique that is used to obtain and oversee contracted
resources, including people, facilities, equipment, and materials. Managing project vendors is
important for obtaining procured project elements without any delays. Contracts must be
established to stipulate the quality and services of vendors. In a large project involving many
vendors, web-based applications, such as Vendor Management Systems (VMS), can be used. In
addition, performance must be closely monitored to ensure that services meet the quality objectives
of the project. Change requests from vendors must be carefully documented and approved before
implementing them.
The WBS must be thoroughly reviewed before determining which tasks and deliverables should be
provided internally and which should be purchased from vendors. Factors to consider when
selecting vendor services include:
• Impact on other projects.
• Initial and ongoing maintenance costs internally versus externally.
• Intellectual capital considerations. For example, will the organization lose the opportunity to gain
a critical competence if the work is done externally?
• Performance capabilities.
• Compatibility with existing support structure.
• The organization's capability to manage a vendor relationship.
Example: Vendor Management for a Construction Project

The project manager for an industrial construction project, Christopher Young, is planning the
procurement of the necessary raw materials for the construction. Christopher contracted two
external vendors for the supply of construction materials. One of his site managers complained of
repeated delays in the delivery of construction materials by one of the contracted vendors. The
schedule is so far unaffected by using the contingency reserve. Christopher examines the vendors'
contract and revisits the clause stipulating that any delay in the delivery of materials, excluding
adverse climatic changes, will result in levying a 10 percent delay fee to cover additional costs of the
schedule delay. Christopher directs the site manager to remind the vendor that any further delays in
material supply will invoke the additional costs clause without notice. After a week, the site manager
reported improvement in supply according to the schedule.
Procurement Documentation
Procurement documentation contains information about vendor performances on the cost, scope,
quality, contract change notes, approved and rejected changes, payment notifications, and claims. It
can also include technical documentation, deliverables, seller performance reports, warranties,
financial documents, and results of contract inspections. Procurement documentation is
acknowledged and validated for contract closure. The documentation is created when administering
Lesson 17: Monitoring and Controlling Procurements | Topic A
The Procurements Administrator’s Duties

On a small project, the project manager may play the role of a procurements administrator. On a
larger project, the project manager may delegate this task to one or more team members and
monitor them.
In either case, the procurements administrator has the following duties:
• Act as a contract compliance officer.
• Interpret contract specifications and ensure that their terms are met.
• Monitor vendor performance.
• Integrate subcontracted elements.
• Manage change requests.
• Resolve disputes and manage payments.
• Deal with contract breach, early termination, and so forth.
Procurement Performance Reviews

A procurement performance review is the evaluation of the vendor's work. It verifies that the
work performed is in accordance with the scope, schedule, quality, and cost as defined by the
contract. It can include a review of documentation submitted by the vendor, inspections, or quality
audits. The purpose of this review is to identify strengths and weaknesses with project performance
and to monitor the progress of schedules and tasks.
Example: Contract Performance Review of Construction Materials

A company contracted four suppliers to supply construction materials for an industrial complex
construction project. Because the quality standards for the project are stringent, the project manager
wants the quality of the materials reviewed periodically. He appoints a team member to regularly
monitor the material quality and send a weekly report on it.
The Contract Change Control System

The contract change control system might be a component of the integrated change control
system or it might be a separate system, but it is dedicated specifically to control contract changes. It
specifies the process by which project contract changes can be made. It includes the documentation,
dispute-resolution processes, and approval levels to authorize the changes to contract specifications.
Example: Documenting Changes in the Contract Change Control System

A global service providing company contracted a website designing company to develop an online
portal for one of its services. After the initial designing phase, the website design was sent to the
customer for review. The customer, after reviewing the design, asked for additional features to be
added to the website. The web designers analyzed the changes and identified that the
implementation of these changes will extend the project schedule by one week. Upon approval by
the customer, the change in the project deadline and the reasons for changes were documented in
the contract change control system.
Vendor Inspection and Audit

Inspections and audits are conducted by the buyer to verify compliance in the vendor's work
processes or deliverables. This is always outlined in the contract. Some contracts allow buyer
procurement personnel as part of their inspection and audit teams. The goal of the audit is to
establish a record that may be used to shape procurement practices in other contracts for this
project or for other projects. The lessons learned from an audit can be valuable information for
future contracts.
A vendor audit seeks to answer several questions about the procurement process.
• Were the contract specifications completed as specified and were all terms and conditions met?
• Were the quality, timelines, and cost acceptable?
• Were the vendor's project management, contract management, financial management, and
communications management practices acceptable?
• Was the vendor able to accommodate requested changes?
• Were the members of the vendor's staff acceptable? Did any individuals merit special
recognition?
• Was there anyone you will not recommend for future assignments?
• Were there areas for improvement?
• What were the lessons learned from this contract?
Example: Procurement Audit of Marketing Materials

A project manager, Dave, asked each of his core team members to evaluate the vendors they used
during the course of the project for new marketing material. Dave gave the team leads a checklist
and asked them to answer each of the questions that were relevant to the type of contract used.
Randy, the multimedia lead, used over 50 freelance illustrators, video producers, audio producers,
photographers, and animators throughout the project. Randy developed a template to use for each
vendor.
This is an example of an effective procurement audit because it provides valuable information
regarding the vendor's performance that will be helpful in future projects. It also provides lessons
learned information that will increase the freelance illustrator database.
Figure 17-1: A sample vendor audit document.
Payment Systems
Payment systems are used to make payments to vendors that are made contingent on the
acceptance of the delivered goods or services and on the receipt of a valid invoice. Typically,
invoices are sent to the organization's Accounts Payable department, which in turn checks with the
project organization to verify that the goods or services were delivered and accepted and then
authorizes payment.
Claims Administration
Disputes that arise when buyers and vendors cannot agree on changes are referred to as claims or
appeals. Claims are handled in accordance with contract terms and are managed throughout the
term of the contract. If the buyer and vendor do not resolve the claim, it will be handled according
to the dispute resolution procedures in the contract. Contract clauses may include arbitration or
litigation and may be brought up after contract closure.
The Records Management System

The records management system is a software application that is used to generate, track, and
retrieve documents and for correspondence purposes. It is also used to manage the project vendors,
procurements, and contract documentations. It contains the processes, control functions, and
automation tools. The records management system is a subsystem of the PMIS.
Guidelines for Monitoring and Controlling Procurements
Regardless of the size of the project, the project manager is responsible for administering
procurements for the project. Experienced project managers always rely heavily on the contract
administration expertise of their organizations' Procurement, Purchasing, and Legal departments.
Effective procurement administration ensures that the vendor's performance meets contractual
requirements and objectives.
To administer procurements, follow these guidelines:
• Index and store all contract correspondence for ease of retrieval.
• Develop and implement an effective contract change control system. The system might be
integrated with the project's overall change control system. It should include these elements:
• Forms and paperwork required to request a contract change.
• Contract performance-tracking mechanisms.
• Procedures for submitting and approving change requests, including approval levels based on
cost or impact of change.
• Procedures for reviewing and resolving contract disputes.
• Evaluate the risk of each contract change request.
• Document all contract changes and incorporate any effect of the changes into the project plan.
• Develop and implement an effective performance reporting system for the vendor. The
performance reporting system should include these elements:
• Project performance baselines such as baseline time, cost, and quality specifications.
• Actual time, cost, and quality specifications.
• Performance of contractual reports including status reporting, on-site visits, and product
inspection.
• Spell out in the contract any performance reporting specifications to be imposed on the vendor.
• Set performance milestones to monitor project progress.
• Depending on your project, you may use partial deliveries, completion of selected portions of
the product, or preliminary versions of the finished product as milestones.
• Make sure that the milestones are arranged and agreed upon with the vendor ahead of time.
• Negotiate a deadline for each milestone and quality and completeness specifications for the
milestone.
• If work is performed at another site, conduct site visits to determine how the vendor's work is
progressing.
• Be sensitive to the cost of site visits in terms of time and impact on vendor relationships.
• Schedule the visits up-front, set an agenda for each visit, and use only the time required.
• Verify that the objectives of the project are being met.
• Approve the submitted invoices for payment in accordance with the contract and the project's
payment system.
ACTIVITY 17-1
Monitoring and Controlling Procurements
Scenario
The GCCG e-Banking Portal project is continuing through the execution processes. You selected
Hexa Web Hosting to provide consultants for building the software architecture. You have been
asked to administer the contract. Hexa Web Hosting provided this kind of support for GCCG in the
past, with good results. However, because the project needs to be completed on time, you want to
carefully monitor the work to stay ahead of problems and take actions early to mitigate the risk of
delays.
1. The work done by Hexa Web Hosting is scheduled to be completed in three

stages. What action can you take to ensure that these deadlines are met?
○ Document contract changes.
○ Implement a contract change control system.
○ Set performance milestones.
○ Index all contract correspondence.
2. Your contact at Hexa Web Hosting informs you that the company's primary
project software engineer resigned. The company asked to push the
milestone date by a week to get another software engineer up to speed. What
action should you take first?
○ Consult the contract change control system.
○ Conduct an on-site visit.
○ Negotiate a milestone deadline.
3. Hexa Web Hosting informed you that it has completed the beta verification of
the software architecture as specified in the contract. It is your responsibility,
as project manager, to verify that all feedback was incorporated correctly.
Upon your review, you notice that some of the alpha review feedback was not
incorporated. What action should you take?
A: Answers will vary. You should begin by reviewing the contract to see if there was an alpha review
requirement. From there, you can begin to figure out what happened at the alpha review. Because
the issues may have been caused due to known bugs in the software, you may first discuss the
issues with the vendor and ask the reasons for the inconsistency. Because you neared the end of
the project, it is advisable to insist that the vendor fix any show-stopper issues and continue with
the contract.
TOPIC B
Handling Legal Issues
When working with procurement matters, you will need to understand and deal with legally binding
documents, such as contracts. When you experience changes to any procurement relationships, you
might need to change the terms of a contract or other legal document.
Whether or not you were involved in procurement negotiations, you must understand your rights
and responsibilities under the contract so that problems can be worked out with a minimum impact
on project goals. Meanwhile, you need to be careful not to take actions that could undermine your
organization's legal position, should litigation be necessary later on.
Changes to Contract Terms

Either party can propose contract change requests for any of the contract terms, including the
scope, cost, delivery date, or quality of goods or services.
Contract Change Description
Administrative changes These are non-substantive changes to the way the contract is
administered. This is the most common type of contract change.
Administrative changes should be documented and written
notification sent to the vendor with a clear expectation that the
vendor will approve and return the change document. Administrative
changes require no adjustment in payment.
Contract modification This is a substantive change to the contract requirements such as a
new deadline or a change to the product requirements. Contract
modifications should be documented and a formal change order
should be sent to the vendor. Contract modifications may result in
claims for payment adjustment.
Supplemental agreement This is an additional agreement related to the contract but negotiated
separately. A supplemental agreement requires the signatures of both
buyer and vendor. A separate payment schedule is attached for the
work in a supplemental agreement.
Constructive changes These are changes that the buyer may have caused through action or
inaction. As a result of constructive changes, a vendor is required to
change the way the contract is fulfilled. The vendor may claim a
payment adjustment as a result of constructive changes.
Termination of contract A contract may be terminated due to seller default or for customer
convenience. Defaults are typically due to nonperformance, such as
late deliveries and poor quality, or nonperformance of some or all
project requirements. Termination due to customer convenience may
result due to major changes in the contract plans, through no fault of
the seller.
Example: Administering a Contract for a Website Project

With his change request approved, Peter, a project manager, becomes responsible for monitoring
the graphic artist's contract for his company's website project. Peter fills out a conversation log for
each conversation he has with the artist about the project and files the conversation logs in the
seller's file.
Lesson 17: Monitoring and Controlling Procurements | Topic B
Peter schedules meetings with the artist to monitor progress and to clarify expectations if necessary.
As partial deliverables are made according to predetermined milestones, he reviews them for quality
before signing and submitting the artist's invoices to the Accounts Payable department for payment.
Peter places a copy of each invoice in the seller's file.
As the project team gets closer to completing the project, it decides to add another section to the
website. This change to the project goes through the appropriate change control system set up for
the project. After being analyzed for its impact on project cost, schedule, and quality, the change
request is approved.
The additional section requires a modification to the contract for the design and production of the
graphics for the new section. Peter negotiates the terms of the change with the artist and submits a
change request for the contract modification using the change request form specified in the contract
change control system.
This change request is also evaluated for its impact on the project cost, schedule, and quality before
being approved and signed. Peter submits the request for the contract modification to the Legal
Department, which incorporates the change and sends the modified contract to the artist to sign and
return. Peter then files the signed modification in the seller's file.
The vendor's work goes smoothly with no legal issues. Eventually, the final deliverable is made and
accepted, and the seller submits the final invoice for payment. Peter signs and submits the invoice
for payment and thanks the artist for a job well done.
Legal Concepts
Project managers should be familiar with some of the common legal issues related to procurement
administration.
Legal Issue Description
Warranty A promise, explicit or implied, that goods or services will meet a

predetermined standard. The standard may cover features such as
reliability, fitness for use, and safety. Some warranty agreements may
promise repair or replacement of products or services for certain
months, years, or for life.
Waiver The giving up of a contract right, even inadvertently.
Breach of contract Failure to meet some or all of the obligations of a contract. It may
result in damages paid to the injured party, litigation, or other
ramifications.
Non-disclosure A legal contract that outlines confidential material, information, or
agreement (NDA) knowledge that two parties wish to share only with each other. It is
used to protect confidential and proprietary information, often
including trade secrets, from being shared with other parties.
Cease-and-desist letter A document sent to an individual or a business to stop (cease)
allegedly illegal activities and to not undertake them again (desist).
Such a letter can be used as a warning of impending legal action if it is
ignored.
Letter of intent A document that outlines an agreement between two parties before
the agreement is finalized. It is sometimes used to highlight
fundamental terms of an agreement before potentially expensive legal
negotiations are begun, or to indicate that the parties have begun
negotiations.
Legal Issue Description

Force majeure clause A common clause that refers to a superior force added to contracts
that addresses the actions from both the parties when an
extraordinary circumstance beyond the control of either party occurs.
The extraordinary circumstances include war, strike, riot, crime, or a
natural disaster (a so-called “Act of God” that includes floods,
earthquakes, and storms) that prevent one or both parties from
fulfilling their obligations under the contract. The force majeure
clause is not intended to excuse negligence or other misconduct by
the parties, and nonperformance is caused by usual and natural
consequences.
Example: Warranty Agreement for a Solar Panel

The manufacturer of a new solar car model outsourced the project that deals with the making of
solar panels. The vendor responsible for this project created the solar panels and delivered them
within the allotted time and budget. The company signed a warranty agreement with the vendor that
extends for a year. The agreement listed all the services the vendor may provide in case of any
serious defects found in the solar panels. They even agreed to a replacement of panels if the defect is
found within a month of its manufacturing date.
Types of Warranties
As a project manager, you may encounter several types of warranties.
Warranty Type Description
Express warranty If the predetermined standard for quality or performance is specified,

either in a formal warranty or in the manufacturer's description of the
product, it is considered an express warranty.
Implied warranty If the predetermined standard for quality or performance exists but is
not specified, it is considered an implied warranty. This type of
warranty takes effect if the buyer depends on the seller's expertise
when making a purchasing decision. If you purchase items that are
widely available on the market, it is assumed that you are relying on
the seller's expertise in determining that the goods are merchantable
and fit for a particular purpose.
On the other hand, if you are a technical expert, and you require an
unusual modification to the product or you intend to use the standard
product in an unusual way, you will not be able to claim implied
warranties.
Similarly, if you provide detailed product specifications and the seller
meets them, you will not be able to claim that the seller breached an
express warranty if the goods do not meet your needs.
Warranties of A type of implied warranty that requires goods to be fit for ordinary
merchantability usage. Any sale of an item is subject to warranties of merchantability.
The sale of an item for use in a particular project will mean that the
item was also subject to warranty of fitness if it can be proven that
the seller knew how it will be used.
Warranties of fitness for A type of implied warranty that requires goods to be fit for the usage
purpose that was intended by the buyer.
Types of Waivers
It is possible for a party on a contract to explicitly waive a contract right. However, project managers
should be particularly aware of the ways in which they can inadvertently waive their contract rights.
These include:
• Accepting a product that fails to meet standards for quality or performance.
• Accepting late deliveries.
• Overlooking some other aspect of non-conformance to contractual obligations.
To protect against losses incurred by an inadvertent waiver of contract rights, some contracts are
written to specifically exclude the possibility of waiving a specified right.
Types of Breaches of Contract

Project managers may encounter different types of breaches of contracts.
Type of Breach Description
Anticipatory An unavoidable indication that the other party will not be able to
produce the performance necessary to fulfill the contract.
Fundamental A breach so serious that it negates the very foundation of the
contract.
Material A serious breach that prevents the injured party from benefiting from
the contract. In a material breach, the injured party can claim
damages, but is no longer obligated to fulfill any contract
commitments.
Immaterial The contract is breached in such a way that there is no resulting
damage to the injured party; because there are no damages, the
injured party is not entitled to receive compensation. This is also
called a minor breach.
Guidelines for Handling Legal Issues

Project managers should have a general understanding of contracts and breaches of contracts, but
they are not expected to be legal experts. The best way to protect yourself, your project, and your
organization is to make sure that your legal department reviews and approves all contracts before
you sign them. As a general guideline, you should never sign a contract unless you are sure that you
understand all its terms. Other guidelines for handling legal issues include:
• Have a good understanding of the differences between important legal terms that can, if ignored,
have a significant impact on the project—warranty, waiver, and breach of contract.
• Be sure to consult with somebody in your company's legal department or seek advice from an
outside legal expert so you thoroughly understand any contracts that affect your project.
• If your contract isn't written specifically to exclude inadvertent waivers, avoid doing any of the
following that would waive your contract rights:
• Accept a product that fails to meet standards for quality or performance.
• Accept late deliveries.
• Overlook an aspect of non-conformance to contractual obligations.
ACTIVITY 17-2
Handling Legal Issues
Scenario
You ordered a case of 12 widget-cleaning kits and signed a contract with the vendor to deliver them
in one shipment. You intend to use one kit each month, and then dispose of it. The shipment
arrives on time.
1. On the day the shipment arrives, you open the first cleaning kit and see that it
is broken. You contact the vendor and ask for a replacement. What is the
correct term for this situation?
○ Breach of contract
○ Warranty of merchantability
○ Warranty of fitness for purpose
○ Waiver
○ Force majeure
2. When you open the sixth kit halfway through the project, you see that an
important component is missing. You contact the vendor and ask for a
replacement. The vendor says that because you already accepted the
delivery of the entire shipment, they can refuse to honor your request. What is
the correct term to describe the situation?
○ Waiver
○ Force majeure
3. Instead of your shipment arriving on time, it comes two weeks late because of
a hurricane that partially destroyed the vendor’s shipping facility. What is the
correct term to describe this situation?
○ Waiver
○ Force majeure
4. If the vendor does something that is very serious and negates the very
foundation of the contract, what is this called?
○ Material breach
○ Anticipatory breach
○ Fundamental breach
○ Immaterial breach
5. Going forward, you ask that invoices are submitted to the accounting
department instead of to the PMO. Why is this considered to be an
administrative change?
○ They are non-substantive changes to the way the contract is administered.
○ They are substantive changes to contract requirements, such as a new deadline.
○ They are additional agreements related to the contract but negotiated separately.
○ They are changes that the vendor may have caused through action or inaction.
Summary
In this lesson, you monitored project procurements, and examined the importance of executing the
project contracts effectively so that you can successfully bring your project to its conclusion.
How will developing and implementing an effective performance reporting
system help you administer contracts on future projects?
A: Answers will vary, but may include: developing and implementing an effective performance reporting
system helps maintain a historical record of vendor performance with regard to contractual obligations
and provides future projects with information on risks that affect the project schedule, cost, or quality.
What are the most common legal issues you’ve encountered when monitoring
and controlling vendors?
A: Answers will vary, but might include breaches of contract caused by various resource problems or
scheduling issues.
Lesson 17: Monitoring and Controlling Procurements |
18 Closing the Project
Lesson Introduction
You successfully completed the last project deliverable and approved the last invoice for
payment. You are almost done! But first, you must properly close out the project.
Unfinished business, contracts not correctly closed out, and poor documentation can turn
into months of additional work and expenditure. The last thing you do on a project will be
the first thing people remember about your efforts overall. Mastering the techniques of
effective project closure helps ensure that there are no loose ends that could unravel the
good work of your team and the success of your project. In this lesson, you will perform
project closure.
Lesson Objectives
In this lesson, you will perform project closure.
• Deliver the final product.
• Close project procurements.
• Close a project.
TOPIC A
Deliver the Final Product
You monitored and controlled the project and the project's product is ready to be handed off to the
customer. In this topic, you will complete various tasks associated with delivering the final product.
There are many tasks involved in handing off the final product to the customer. Although those
tasks are not difficult or time consuming, it is important to ensure that you covered all the bases and
obtained final sign-off from the customer. Then, you will know that you successfully completed the
project according to the customer's expectations, and it can go a long way toward building your
credibility with sponsors of future projects.
Accepted Deliverables
Accepted deliverables are all deliverables that are completed, accepted, and formally signed-off. The
deliverables that have been formally signed-off or acknowledged by the sponsors or customers are
moved toward project closure.
The Final Product, Service, or Result Transition

The final product, service, or result transition is the process of transferring the final product that the
project was authorized to produce. The final product is usually reviewed for completeness and
accuracy before it can be transitioned to its recipients.
Example: Release of the Final Product

The financial module of an ERP package was ready to be released to production. The project team
members completed the customization of the package, managed data migration, and performed unit
and functional testing, including a final pre-release test in a duplicated production environment
testing facility. They documented the known issues, errors, and customizations done to the software.
They compiled technical documentation for support personnel and provided early release
information for training so that end user training could be prepared.
The training department first conducted change management training, because a number of
accountants had serious concerns about changing how they were currently doing things. They then
conducted special technical training sessions for the help desk personnel. A series of web-based
training sessions were set up to train the accountants on the new software, prior to its release. One
month prior to release, the company posted product highlights, release information, and a FAQ to
the company intranet. The installation of the software was scheduled at the beginning of the month
so that it wouldn’t conflict with month-end closeouts. A representative from the team was
scheduled to provide floor support during the first week after release and was on hold for the
second week if needed. To put a positive spin on the release, email notices were sent daily to
stakeholders during the two weeks prior to release, with a countdown to the big day. The project
manager coordinated a kickoff celebration with the VP of finance.
Guidelines for Delivering the Final Product
Accurate delivery of a final product ensures that all deliverables are transferred in a quality-
controlled format with a smooth transition and according to the stakeholders’ expectations. To
deliver the final product, follow these guidelines:
Lesson 18: Closing the Project | Topic A
• Perform the final user acceptance or operational test. Test systems performance to ensure that
stated quality standards and performance targets are being met.
• Verify that known issues and errors have been identified and that information has been
transferred to support personnel.
• Provide operational support personnel with the documentation created.
• Verify that the transfer date has been communicated and that stakeholders are prepared to accept
the deliverables:
• Determine who is responsible for future support to provide operational continuity.
• Determine who has ownership rights to the intellectual capital represented by the
deliverables.
• Double-check to make sure that all the stakeholders’ hand-off requirements have been met.
• Ensure that the training plan has been executed and that the team performed those
responsibilities as specified in the transfer plan.
• Ensure that the project team is prepared to provide floor support for the specified time during
the initial launch. This support is critical for a smooth transition, but it’s easy to lose team
members to other projects when the current project winds down.
• Conduct any other activities that were specified in the hand-off deliverables checklist.
• Manage customer perceptions:
• Many times the hand-off is a non event—technical or installation experts install the product
or process and then leave.
• Consider creating a formal transfer event to provide a sense of closure, such as a formal
demonstration event, a walkthrough, or a ribbon-cutting ceremony.
• Highlight the benefits of the new system.
• Secure the appropriate approvals and sign-offs.
ACTIVITY 18-1
Delivering the Final Product
Scenario
You are the project manager for the network upgrade project at the GCCG Seattle bank, and the
team completed the upgrade to the new ATM network backbone. The documentation for the
project is ready to go. All the systems were tested for their stability and performance in order to be
handed off to the Network Operations team, but no formal transfer date has been set. The testing
uncovered several performance issues that were forwarded to the manufacturer and the team is
awaiting a fix for the problems.
The Training department was unable to build an online web tutorial on time to support the
operational transfer; therefore, a two day instructor-led event was created. The classes will be broken
down into groups and will be taught by the field engineering group that executed the upgrade for
other banks.
1. What could happen if the transfer date is not formally set?

A: Answers will vary, but may include: the bank will most likely suffer downtime due to the confusion
surrounding the transfer of support responsibilities. Critical support personnel may not be
available if no specific date is chosen.
2. What could happen if known issues and errors are not properly
communicated?
A: Answers will vary, but may include: the network operations staff will not be aware of problems that
have already been diagnosed and may not apply solutions to issues due to lack of awareness.
Also, the necessary fixes may not get into the project plan in order to be corrected.
3. What should you do when delivering the final product? Select all that apply.
☐ Make sure that all stakeholders' requirements have been met.
☐ Manage customer perceptions.
☐ Lay out recommendations for maintenance.
☐ Make sure that the training plan has been executed and that the team has performed those
responsibilities as specified in the transfer plan.
4. What could happen if the training program is not completed?

A: Answers will vary, but may include: the local support at the other banks will have no idea of what
they need to do and there will be considerable pressure on the network engineers at the Network
Operations Center (NOC) to supply training over the phone on a one-on-one basis. There could
be significant loss of productivity because people will not know how to work around the same
functionality.
5. What could happen if the NOC staff doesn’t get the proper documentation?
A: Answers will vary, but may include: they will have difficulty avoiding significant downtime and
completing preventative maintenance. They will need to get direct assistance from SMEs as their
only source of information.
TOPIC B
Close Project Procurements
You and your project team successfully carried out your project plan, produced work results, and
controlled the project's performance baselines. You also need to close any contracts with service
providers and vendors who were contracted for part of the project. In this topic, you will close
Incomplete or inaccurate project records indicate poor organizational skills. Although you may
never have to go back into your procurement files, other project managers in your organization may
want to use them as historical information for their projects. Proper closure of a contract ensures
that contract records will serve as valuable information for future contracts and that work
completed under the contract was accomplished completely and correctly.
Procurement Audits
A procurement audit is a formal evaluation of the effectiveness of the procurement process itself.
The goal of the audit is to establish a record that may be used to shape procurement practices in
other contracts for this project or for other projects. This audit considers the following elements of
the procurement process:
• Make or Buy Analysis.
• Preparation of the procurement SOW and procurement documents.
• Selection of selected vendors.
• Adequacy of the procurement contract.
• Contract administration.
Procurement Audit Lessons Learned

The lessons learned from a procurement audit can be invaluable information for future contracts.
For example, the contract structure or payment terms that seemed appropriate at the start of the
contract may have acted as disincentives to performance during the contract itself. By including as
much anecdotal detail in the lessons learned as possible, you help others in the organization apply
the learning to their situations.
Negotiated Settlements
Negotiated settlements are undertaken to arrive at a final equitable settlement for all outstanding
issues, claims, and disputes by negotiation. The parties may resort to Alternative Dispute Resolution
(ADR), which includes mediation and arbitration, if settlement cannot be achieved through direct
negotiations held between the parties.
Closed Procurements
Closed procurements are usually a formal written document between the buyer and the seller
stating that no considerations are pending from either party. This can be done whenever a
procurement contract is satisfied and can happen on a rolling basis throughout the project. The
buyer receives what was expected and is satisfied; the seller receives the payment and other aspects
as prescribed in the contract. The contract spells out the terms and conditions for contract
acceptance and closure. These terms and conditions are usually included in the procurement
management plan.
Lesson 18: Closing the Project | Topic B
Special Issues in Contract Closeout

The following table describes special issues that may impact contract closeout.
Issue Description
Incomplete contract • Contracts may be terminated early due to vendor nonperformance or

closeout through no fault of the vendor whatsoever.
• If a project is shut down prematurely due to issues within the customer
or project organization, how does that impact contract closeout? In this
situation, the contract itself will probably provide guidance as to how to
deal with early termination.
• For example, the contract may have a clause that specifies that either
side may withdraw from the contract with a 30-day written notice to
the other side. During the 30-day notice period, the vendor may
continue working on the project, tying up loose ends, taking receipt
of material ordered for the project, and so forth. Once the project has
been terminated, the project manager should take whatever steps are
necessary to provide the appropriate written notice as soon as
possible, in order to start the termination clock.
• In addition, an explanatory call to the vendor in advance of the
written notice is an expected courtesy. If the contract ties payment to
specific deliverables, the procurement audit should verify that the
deliverables were received as specified and that the invoices reflect
only those deliverables that were received. Issues of time, cost, and
quality are still relevant.
• Be sure to evaluate these issues based on the version of the
deliverable you are paying for, rather than for the final deliverable.
For example, say the vendor was contracted to supply a beta version
of the product in January and a final version in March. But the
project was canceled in February.
• The product quality audit should be based on whether it met the
specifications for a beta product, not for a final product.
Vendor staff • In some cases, vendors will request that you participate in evaluating
evaluations their staff members who are participating in your project.
• In other cases, you may wish to send letters of commendation to a
vendor, in order to recognize the performance of some of their staff
members.
• Your organization may have a policy that limits your participation in
evaluating the ongoing performance of vendor staff. You should consult
this policy before providing any sort of written performance evaluation.
• Most organizations allow letters of commendation that recognize the
contribution of particular vendor staff members. This practice is highly
motivating to the vendor staff.
• Usually, a copy is sent both to the staff member individually and to the
vendor organization.
Guidelines for Closing Project Procurements

Use can use the following guidelines to properly close the project procurements:
• Ensure that all required products or services were provided by the vendor.
• Make sure that any buyer-furnished property or information was returned to the buyer.
• Settle any outstanding contracting issues. Are there any claims or investigations pending on this
contract?
• Conduct a procurement audit to identify successes and failures of the procurement process.
• Conduct a vendor inspection and audit to evaluate the performance of the vendor.
• Address any outstanding invoices and payments.
• Archive the complete contract file with the project archives.
• Provide the vendor with formal written notice that the contract has been completed.
ACTIVITY 18-2
Closing a Contract
Data File
C:\095016Data\Closing the Project\TriMark SOW.docx
Scenario
The bank sidewalk work package for the GCCG Seattle bank project is wrapping up. According to
the TriMark SOW document, the sidewalk is complete and the landscape architect's plans have been
returned. You receive a final invoice from TriMark. At the same time, you receive a telephone call
from the manager, Justine, who tells you that there is excess concrete and other debris behind the
bank and a small crack in the new sidewalk.
1. Open C:\095016Data\Closing the Project\TriMark SOW.docx and refer to it as

you work through the activity questions.
2. Based on the information, can you close out the contract?

○ Yes, the contract has been fulfilled.
○ No, the contract has not been fulfilled.
○ You cannot determine this until a procurement audit has been completed.
○ You cannot determine this until the vendor completes a staff evaluation.
3. What will you do to resolve incorrect or unsatisfactory contract work in the

situation described in the scenario?
A: Answers will vary, but may include: making arrangements to meet TriMark at the work site to
evaluate what outstanding work is required to finish the job correctly and satisfactorily; calling the
contractor and directing him to return to the work site, cleaning up the debris, and repairing the
crack in the sidewalk; or conducting a procurement audit to ensure that the contract work was
properly completed.
4. The contractor returned to the work site and resolved the outstanding contract
issues and completed the cement work correctly and satisfactorily. Can you
close out the contract? Why or why not?
A: Yes. This contract can be closed out because TriMark resolved the outstanding contract issues
and completed the cement work correctly and satisfactorily.
5. When performing contract closure, why should you complete a procurement

audit?
○ To provide feedback to the vendor.
○ To evaluate the vendor's performance.
○ To provide a procurement record for future projects.
○ To verify that the procurement process was effective.
○ To provide written notice that the contract has been completed.
6. Will you include a vendor evaluation in your procurement audit? Why or why
not?
A: No, because the procurement audit doesn't deal with vendor performance. The vendor audit does
that.
7. If TriMark had been unable to clean up the work site, what would you
undertake?
○ Closing procurements
○ Closing contracts
○ Final product, service, or results transition
○ Negotiated settlements
TOPIC C
Close a Project
You and your project team successfully carried out your project plan, produced work results, and
controlled the project's performance baselines. It is time to tie up all the loose ends and close your
project or phase. In this topic, you will perform the administrative portion of project or phase
closure.
Ending a project or phase requires the same care and attention as starting the project or phase. As a
project manager, the way in which you end your project or phase says a great deal about you to your
stakeholders. Obtaining formal acceptance of your project's or phase's final product, service, or
result ensures that the project or phase is properly closed.
Knowledge Management
Closing a project involves more than simply completing the project’s scope and getting sign-off
from the customer and other key stakeholders. You will need to prepare several closure documents
and make them available to future projects, so they can benefit from what you learned during your
project and hopefully avoid some of the rough spots that you were faced with. You will also
organize the data you collected during your work—status reports, performance measurement
information, and all of the change requests—so other people can learn from your experiences.
These reports and data can be archived on a company intranet site, rather than stored in boxes in a
warehouse. People with the appropriate permissions can then find them long after your project has
ended and the team has moved on to other work. If your organization uses one of the popular
collaboration tools, you will not need to “start from scratch” to develop your archiving system.
Note: Microsoft® SharePoint® is a widely used collaboration tool, and an Internet search will
provide many other options.
Administrative Closure
Administrative closure involves verifying and documenting project results to formalize project or
phase completion on all aspects. During the administrative closure process, the project team gathers
and updates project documentation and relevant records and reports. Project results are compared
with customer and stakeholder expectations and requirements. A properly completed administrative
closure process ensures that:
• The project or phase requirements were met and formal acceptance was granted.
• The project objectives were completely met.
After the administrative closure is complete, you should conduct a project evaluation whereby you
will review the original proposed financial and operational benefits and determine whether or not
they have been achieved over time. If they have not been achieved, you should evaluate and
determine if further action is required.
Project Records to Archive

During administrative closure, it may be beneficial to archive selected project records such as:
• The project management plan with its subsidiary plans and supporting detail.
• Project performance records, audit reports, and financial records.
• Contract documentation as completed in closed procurements.
• Copies of all relevant communication, status reports, meeting minutes, and change requests.
Lesson 18: Closing the Project | Topic C
• Relevant project databases.

• Staff evaluations.
• Lessons learned reports and the final project report.
• Formal acceptance documentation.
It may be helpful to construct a list of outstanding items that must be resolved, addressed, or
completed before the customer will accept the final work results. Include the actions taken to
resolve any outstanding issues and any time frames associated with completion.
Lessons Learned Reports

Lessons learned reports are documents that capture salient and helpful information about the
work done in a project; they identify both the project team's strengths and areas for improvement.
They can be formal or informal, depending on the organizational norms or requirements. The
lessons learned reports can be built by contributions from the project team throughout the project,
and edited into a clean document during closing. This minimizes the need for contributors to recall
details at the end of the project.
Lessons learned reports will be beneficial to future project teams. Having this knowledge base
enables project teams to capitalize on work that has already been done, avoid repeating mistakes,
and benefit from ongoing organizational learning.
Example: Lessons Learned When Launching a New Product Line

After a particularly challenging project involving the launch of a new product line, the project
manager finalized the lessons learned report based on inputs provided by the project team. Also, in a
meeting with key team members and stakeholders, the participants were asked about what went well
in the project and what they will do differently next time. The project manager documented their
responses into a report for future reference; it captured the challenges that had been overcome,
suggestions that were generated, and other lessons that had been learned.
Considerations of Lessons Learned

During administrative closure, project managers should take into account the following
considerations of lessons learned.
Consideration Description
Scheduling lessons learned These include any relevant scheduling problems or issues. They
also document the management strategies that were implemented
to deal with schedule or resource constraints. Capture beneficial
approaches to implement as new best practices.
Conflict management lessons These include any issues that arose within the team or between
learned the team and customers. They include documentation of the
nature and source of the conflict and the impact that the conflict
had on the project. The documentation should also specify how
management intervened in response to the conflict.
Vendor lessons learned New seller experience and performance should be documented
and provided to the procurement department.
Customer lessons learned If a customer is excessively litigious or unreasonable to work with,
that information should be conveyed to the sales and legal
departments and documented in the lessons learned repository. If
the customer experience is positive, then capture the potential for
future sales or working together.
Consideration Description
Strategic lessons learned Strategic lessons learned are those that typically impact some
aspect of the organization's project management methodology or
significantly improve a template, form, or process. These address
the questions: Can we reuse this project's artifact to get more
done with the same resources and deliver work sooner?
Tactical lessons learned Tactical lessons learned are those that answer the question: If we
were to do this type of project again, what should we stop, start,
and continue so that we can execute the project flawlessly? They
focus on developing recommendations, reviewing
recommendations with other managers in other departments,
developing implementation plans, and implementing those plans.
Other aspects of lessons Project managers should take into account scope, schedule, cost,
learned quality, and customer satisfaction and any corrective action taken
in response to issues, as well as any new practices to adopt.
Closure Meetings
Closure meetings, or closeout meetings, are sessions held at the end of a project or phase; they
involve discussing the work and reviewing lessons learned. Closure meetings include stakeholders,
team members, project resources, and customers. They typically follow a formal agenda and may
require official minutes to be recorded. Conducting closeout meetings is essential, and not all
organizations or projects require closeout meetings in a formal manner. Some organizations require
the minutes from closure meetings to be completed in full, approved by management, and preserved
in a specific manner.
Some organizations require official closure meetings so that they can obtain the customers' formal
project acceptance, while others use them as an opportunity to discuss the project with the
customers as a prelude to soliciting additional business. Other organizations use closeout meetings
for internal purposes, for the edification of the staff and improvement of internal processes. From
an organizational standpoint, good endings lead to good beginnings on subsequent projects.
Example: Fire Safety Closure Meetings

A project manager responsible for fire safety equipment and inspections will hold a closure meeting
at the conclusion of the inspection process. He will invite the stakeholders, project team members,
and representatives from the fire marshal's office. They will review inspection documentation
records; complete and sign inspection certificates; review, approve, and sign the plans for evacuation
procedures; and document the inspections and testing of fire safety equipment. Those signed,
official documents will be filed both with the fire marshal and at the company in accordance with
fire safety procedures.
Auditing vs. Debriefing

Auditing is an examination of a project’s goals and achievements, including adequacy, accuracy,
efficiency, effectiveness, and the project’s compliance with applicable methodologies and
regulations. It tends to be a formal, one-sided process that can be extremely demoralizing to team
members.
Debriefing is a less formal, more cooperative means of discussing the positives and the negatives of
the project, what worked, and what will be done differently next time. This discussion includes
technology issues, people issues, vendor relationships, and organizational culture.
Example: Obtain Candid Feedback with a Debriefing Meeting

At the conclusion of an 18-month, $2 million project that came in on time, but $200,000 over
budget, the project manager knew she would be subjected to an organizational audit to verify the
project’s use of resources to accomplish the goal of the project. She chose, however, to use
facilitated debriefing in the final project review, knowing that she would be able to keep the meeting
positive and get better feedback from her team. Also the intermediate closeout meetings conducted
at the end of every phase of the project helped keep the final closeout meeting short and effective.
The meeting was then followed by a team celebration.
Historical Information
Historical information is an aggregate of lessons learned and other useful information collected
from preceding projects. This information can be used as best practices in similar projects.
Artifacts, such as plans, standards and procedures, estimations, metrics, and risks, are some of the
historical information that can be referred to when managing pertinent projects. Historical
information that describes successes, failures, and lessons learned is particularly important during
planning and managing projects. The project manager is responsible for maintaining these artifacts
that often prove useful when a significant amount of work is done by virtual teams or when it
involves multicultural communication.
Example: Project Closure for Renovation of a Manufacturing Plant

The renovation of a manufacturing plant project is in its last stages. The project manager developed
documents, technical and managerial, such as plant layouts, minutes of meetings that took place at
different points, and so on. The specifications for renovated plants were compared with the actual
work. The key stakeholders who were involved in finalizing the specifications were invited for
validating the deliverables. A detailed presentation containing photographs, images, key issues faced,
best times, and worst times on the project was developed. The team members were invited for the
final ceremony of project conclusion. They were awarded based on their contributions to the
project. The team had a project postmortem meeting and at the end they came up with ideas for
improvements in the next project. The project stakeholders were happy and the managing director
commended the team on the systematic approach taken toward the project.
Guidelines for Creating a Project Closure Report

When you accurately create a project closure report, you clearly and concisely document the project
life cycle, its effectiveness, value, issues, and cultural impact so that this information is easily
communicated and can be used for future reference on projects of a similar nature. When you create
a project closure report, be sure to do the following:
• Define the organization of the project.
• Document project strengths and weaknesses and the techniques used to get results:
• Project effectiveness: Use the project charter and scope statement to validate whether the
project achieved the strategic objectives.
• Project efficiency: Define whether or not the project was on time, on specification, and on
budget.
• Document project team recommendations.
• Define the project’s cultural impact—the impact of the project upon the organizational structure
and culture.
• Explain the value—define the capability or capabilities added to the organization and explain
how they will support the strategic objectives.
• Lay out recommendations for maintenance—get stakeholders involved and identify ongoing
responsibilities of the operational management for supporting and leveraging the new capability
to ensure operational continuity.
• Consider using a corporate intranet site, groupware repository, such as a SharePoint team site, or
other shared location as you collect, document, and share information with people who need to
know it.
Guidelines for Closing a Project

Each phase of the project must be properly closed to ensure that valuable information is
safeguarded for future projects. To properly close a project, follow these guidelines:
• Some organizations and application areas have a project termination checklist that may be useful
when closing out a project or phase. You may find it useful to prepare one if there is not one
available. This helps to ensure that you are thorough in your administrative closeout.
• Gather and organize performance measurement documentation, product documentation, and
other relevant project records for ease of review by stakeholders.
• Release project resources. Recognize and reward team members who have performed well in the
project.
• Update records to ensure that they reflect final specifications. Be sure to update the resource
pool database to reflect new skills and increased levels of proficiency.
• Analyze project success and effectiveness and document lessons learned.
• Finalize lessons learned reports and a final project report.
• Obtain project approval and formal project acceptance. Demonstrate to the customer or sponsor
that the deliverables meet the defined acceptance criteria to obtain formal acceptance of the
phase or project. This may involve preparing an end-of-project report or giving a presentation.
• Archive a complete set of indexed project records.
• Celebrate the success of the project with the team and other stakeholders.
ACTIVITY 18-3
Closing a Project
Scenario
Your good project planning and control resulted in the GCCG e-Banking Portal project coming to a
successful close. The final project deliverable is complete. You collected the performance
measurement reports and updated product documents and other relevant project records for
archiving. Before you can close your project, you need to obtain formal project approval from the
project sponsor. You scheduled a meeting in the afternoon.
1. Are your project records ready for review by the project sponsor? Why or why
not?
A: Yes, because you collected performance measurement and product documentation and other
relevant project records to archive.
2. What document will you prepare before obtaining formal acceptance from
your project sponsor to officially complete the project?
A: You should prepare a final project report that summarizes the project. You should also complete a
lessons learned report.
3. In this case, what might constitute formal acceptance?

A: Answers will vary, but may include: a formal presentation to stakeholders followed by a memo
from the project sponsor that the project is complete. Formal acceptance documentation should
be distributed to the appropriate stakeholders and stored with the project archives.
4. What should you document when creating a project closure report? Select all
that apply.
☐ Project efficiency
☐ Resource usage
☐ Project team recommendations
☐ The cultural impact of the project
5. What types of documentation or computer files should you store in the project
archives?
A: Answers will vary, but may include: the project plan, project performance records, contract
records, names of team members, or financial records. Basically, anything that is relevant and
significant for future projects.
Summary
In this lesson, you learned how to effectively close a project. Your efforts to create a smooth and
orderly closure will help shape stakeholders' perceptions of the overall project. In addition,
effectively closing the project provides valuable lessons learned and input for your organization's
future projects.
What steps do you plan to take to improve the project closure process in the
future?
A: Answers will vary, but may include: defining the closure procedures for closing project or phases and
procurements, documentation, final results transition, and final verification of the products received
from vendors or delivered to buyers.
How will compiling a formal lessons learned report help you manage future
projects effectively? Explain your ideas.
A: Answers will vary, but may include: compiling lessons learned implies indexing it for easy storage and
access. The formal lessons learned report captures salient and helpful information about the work
done in the project or phase and will serve as historical information for future projects. If lessons
learned are stored in a systematic manner and are accessible for future projects, mistakes are less
likely to be repeated. Also, by making best practices easily accessible, you can avoid spending time
on issues that have already been identified. It also helps improve the performance of the projects
based on the knowledge of the strengths, weaknesses, opportunities, and threats that affect projects
in an organization.
Lesson 18: Closing the Project |
Course Follow-Up
Congratulations! You have completed the CompTIA® Project+® (Exam PK0-004) course. You have
successfully discovered how to manage projects by applying recognized project management
knowledge and processes. You now have the skills and knowledge you need to successfully manage
projects in your organization by applying a standards-based approach to most projects, most of the
time, across industry groups. You can use these widely recognized tools on the job to effectively
initiate, plan, execute, control and monitor, and close projects across application areas and
industries.
Course Follow up
A Taking the Exams
When you think you have learned and practiced the material sufficiently, you can book a
time to take the test.
Preparing for the Exam

We've tried to balance this course to reflect the percentages in the exam so that you have
learned the appropriate level of detail about each topic to comfortably answer the exam
questions. Read the following notes to find out what you need to do to register for the exam
and get some tips on what to expect during the exam and how to prepare for it.
Questions in the exam are weighted by domain area as follows:
CompTIA Project+ PK0-004 Certification Domain Areas Weighting
1.0 Project Basics 36%

2.0 Project Constraints 17%
3.0 Communication and Change Management 26%
4.0 Network Security 21%
Registering for and Taking the Exam

CompTIA Certification exams are delivered exclusively by Pearson VUE.
• Log on to Pearson VUE and register your details to create an account.
• To book a test, log in using your account credentials then click the link to schedule an
appointment.
• The testing program is CompTIA and the exam code is PK0-004.
• Use the search tool to locate the test center nearest you, then book an appointment.
• If you have purchased a voucher or been supplied with one already, enter the voucher
number to pay for the exam. Otherwise, you can pay with a credit card.
• When you have confirmed payment, an email will be sent to the account used to register,
confirming the appointment and directions to the venue. Print a copy and bring it with
you when you go to take your test.
When You Arrive at the Exam

On the day of the exam, note the following:
• Arrive at the test center at least 15 minutes before the test is scheduled.
• You must have two forms of ID; one with picture, one preferably with your private
address, and both with signature. View CompTIA's candidate ID policy for more
information on acceptable forms of ID.
Note: See the candidate ID policy at https://certification.comptia.org/testing/
test-policies/candidate-id-policy.
• Books, calculators, laptops, cellphones, smartphones, tablets, or other reference materials are not
allowed in the exam room.
• You will be given note taking materials, but you must not attempt to write down questions or
remove anything from the exam room.
• It is CompTIA's policy to make reasonable accommodations for individuals with disabilities.
• The test center administrator will demonstrate how to use the computer-based test system and
wish you good luck. Check that your name is displayed, read the introductory note, and then
click the button to start the exam.
Taking the Exam

CompTIA has prepared a Candidate Experience video. Watch this to help to familiarize yourself
with the exam format and types of questions.
Note: The Candidate Experience video is available at https://www.youtube.com/embed/
kyTdN2GZiZ8.
• There are up to 95 multiple-choice, multi-response, and drag and drop questions, which must be
answered in 90 minutes. The exam is pass/fail only with no scaled score.
• Read each question and its option answers carefully. Don't rush through the exam as you'll
probably have more time at the end than you expect.
• At the other end of the scale, don't get "stuck" on a question and start to panic. You can mark
questions for review and come back to them.
• As the exam tests your ability to recall facts and to apply them sensibly in a troubleshooting
scenario, there will be questions where you cannot recall the correct answer from memory.
Adopt the following strategy for dealing with these questions:
• Narrow your choices down by eliminating obviously wrong answers.
• Don't guess too soon! You must select not only a correct answer, but the best answer. It is
therefore important that you read all of the options and not stop when you find an option
that is correct. It may be impractical compared to another answer.
• Utilize information and insights that you've acquired in working through the entire test to go
back and answer earlier items that you weren't sure of.
• Think your answer is wrong - should you change it? Studies indicate that when students
change their answers they usually change them to the wrong answer. If you were fairly certain
you were correct the first time, leave the answer as it is.
• Don't leave any questions unanswered! If you really don't know the answer, just guess.
• The exam may contain "unscored" questions, which may even be outside the exam objectives.
These questions do not count toward your score. Do not allow them to distract or worry you.
• The exam questions come from a regularly updated pool to deter cheating. Do not be surprised
if the questions you get are quite different to someone else's experience.
Caution: Do not discuss the contents of the exam or attempt to reveal specific exam questions
to anyone else. By taking the exam, you are bound by CompTIA's confidentiality agreement.
Appendix A : Taking the Exams |
After the Exam

Note the following after taking the exam:
• A score report will be generated immediately, and a copy will be printed for you by the test
administrator.
• The score report will show whether you have passed or failed and your score in each section.
Make sure you retain the report!
• If you passed your CompTIA exam, your score report will provide you with instructions on
creating an account with the Certmetrics candidate database for viewing records, ordering
duplicate certificates, or downloading certification logos in various file formats. You will also be
sent an email containing this information. If you failed your CompTIA exam, you’ll be provided
with instructions for retaking the exam.
• Newly-certified individuals will receive a physical certificate by mail. If six weeks have passed
after taking your exam and you haven't received a copy of your certificate, contact CompTIA
support.
Retaking the Exam and Additional Study

If you fail the first attempt of your certification, you can retake it at your convenience. However,
before your third attempt or any subsequent attempt to pass such examination, you are required to
wait a certain amount of time since your last attempt. Review your score report to understand how
long before you can attempt again. Note that you will have to pay the exam price each time you
attempt.
Appendix A : Taking the Exams |
B Mapping Course Content
to CompTIA® Project+®
Exam PK0-004
Obtaining CompTIA® Project+® certification requires candidates to pass exam PK0-004.
This table describes where the objectives for exam PK0-004 are covered in this course.
Exam Objective Lesson and Topic Reference
Domain 1.0 — Project Basics

1.1 Summarize the properties of a project.
• Temporary Lesson 1, Topic A
• Start and finish Lesson 1, Topic A
• Unique Lesson 1, Topic A
• Reason/purpose Lesson 1, Topic A
• Project as part of a program Lesson 1, Topic A
• Project as part of a portfolio Lesson 1, Topic A
1.2 Classify project roles and responsibilities.
• Sponsor/champion Lesson 1, Topic A
• Approval authority Lesson 1, Topic A
• Funding Lesson 1, Topic A
• Project charter Lesson 1, Topic A
• Baseline Lesson 1, Topic A
• High-level requirements Lesson 1, Topic A
• Control Lesson 1, Topic A
• Marketing Lesson 1, Topic A
• Roadblocks Lesson 1, Topic A
• Business case/justification Lesson 1, Topic A
• Project Manager Lesson 1, Topic A; Lesson 12, Topic
C
• Manage team, communication, scope, risk, Lesson 12, Topic C
budget, and time
• Manage quality assurance Lesson 12, Topic B

• Responsible for artifacts Lesson 18, Topic C
• Project coordinator Lesson 1, Topic A
• Support project manager Lesson 1, Topic A
• Cross-functional coordination Lesson 1, Topic A
• Documentation/administrative support Lesson 1, Topic A
• Time/resource scheduling Lesson 1, Topic A
• Check for quality Lesson 1, Topic A
• Stakeholder Lesson 1, Topic A
• Vested interest Lesson 1, Topic A
• Provide input and requirements Lesson 3, Topic B
• Project steering Lesson 2, Topic D
• Expertise Lesson 1, Topic A
• Scheduler Lesson 1, Topic A
• Develop and maintain project schedule Lesson 1, Topic A
• Communicate timeline and changes Lesson 1, Topic A
• Reporting schedule performance Lesson 1, Topic A
• Solicit task status from resources Lesson 1, Topic A
• Project team Lesson 1, Topic A
• Contribute expertise to the project Lesson 1, Topic A
• Contribute deliverables according to Lesson 1, Topic A
schedule
• Estimation of task duration Lesson 1, Topic A
• Estimation of costs and dependencies Lesson 1, Topic A
• Project Management Office (PMO) Lesson 1, Topic A
• Sets standards and practices for Lesson 1, Topic A
organization
• Sets deliverables Lesson 1, Topic A
• Provides governance Lesson 1, Topic A
• Key performance indicators and parameters Lesson 1, Topic A
• Provides tools Lesson 1, Topic A
• Outlines consequences of non-performance Lesson 1, Topic A
• Standard documentation/templates Lesson 1, Topic A
• Coordinate resources between projects Lesson 1, Topic A
1.3 Compare and contrast standard project
phases.
• Initiation Lesson 1, Topic B; Lesson 2, Topic A
Appendix B : Mapping Course Content to CompTIA® Project+® Exam PK0-004 |
• Project charter Lesson 2, Topic C

• Business case Lesson 2, Topic C
• High-level scope definition Lesson 2, Topic B
• High-level risks Lesson 2, Topic B
• Planning Lesson 1, Topic B; Lesson 3, Topic A
• Schedule Lesson 4, Topic A; Lesson 5, Topic A
• Work Breakdown Structure Lesson 4, Topic A
• Resources Lesson 4, Topic D
• Detailed risks Lesson 3, Topic A; Lesson 9, Topic A
• Requirements Lesson 3, Topics A and B
• Communication plan Lesson 8, Topic B
• Procurement plan Lesson 3, Topic A; Lesson 10, Topic
B
• Change management plan Lesson 11, Topic A
• Budget Lesson 6, Topics A and C
• Execution Lesson 1, Topic B; Lesson 12, Topics
A-G; Lesson 13 throughout
• Deliverables Lesson 12, Topics A, B-E, G; Lesson
13 throughout
• Monitor and Control Lesson 1, Topic B; Lesson 14, Topics
A-B; Lesson 15, Topics A and C;
Lesson 16, Topic A; Lesson 17, Topic
A
• Risks/issues log Lesson 12, Topic E; Lesson 16, Topic
A
• Performance measuring and reporting Lesson 14, Topic C; Lesson 15, Topic
A
• Quality assurance/governance Lesson 15, Topic D
• Change control Lesson 11, Topic A; Lesson 14, Topic
B; Lesson 15, Topic B; Lesson 17,
Topic A
• Budget Lesson 15, Topic C
• Closing Lesson 1, Topic B; Lesson 18
throughout
• Transition/integration plan Lesson 11, Topic B
• Training Lesson 11, Topic B
• Project sign off Lesson 18, Topics A and C
• Archive project documents Lesson 18, Topic C
• Lessons learned Lesson 18, Topic C
• Release resources Lesson 18, Topic C
• Close contracts Lesson 18, Topic B

1.4 Identify the basics of project cost control.
• Total project cost Lesson 4, Topic E; Lesson 5, Topic C;
Lesson 6 throughout; Lesson 15,
Topic C
• Expenditure tracking Lesson 6, Topic C
• Expenditure reporting Lesson 6, Topic C
• Burn rate Lesson 15, Topic C
• Cost baseline/budget Lesson 6, Topic B; Lesson 15, Topic
C
• Plan vs. actual Lesson 15, Topic C
1.5 Identify common project team
organizational structures.
• Functional Lesson 1, Topic C
• Resources reporting to Functional Manager Lesson 1, Topic C
• Project Manager has limited or no authority Lesson 1, Topic C
• Matrix Lesson 1, Topic C
• Authority is shared between Functional Lesson 1, Topic C
Managers and Project Managers
• Resources assigned from Functional area to Lesson 1, Topic C
project
• Project Manager authority ranges from Lesson 1, Topic C
weak to strong
• Projectized Lesson 1, Topic C
• Project Manager has full authority Lesson 1, Topic C
• Resources report to Project Manager Lesson 1, Topic C
• Ad hoc resources Lesson 1, Topic C
1.6 Given a scenario, execute and develop
project schedules.
• Work Breakdown Structure Lesson 4, Topic A
• Scheduling activities Lesson 5, Topic B
• Determine tasks Lesson 4, Topic B; Lesson 5, Topic B
• Determine task start/finish dates Lesson 5, Topic B
• Determine task durations Lesson 5, Topic B
• Determine milestones Lesson 4, Topic B
• Set predecessors Lesson 4, Topic C
• Set dependencies Lesson 4, Topic C
• Sequence tasks Lesson 4, Topic C
• Prioritize tasks Lesson 4, Topic C
• Determine critical path Lesson 5, Topics A and B

• Allocate resources Lesson 4, Topic D
• Set baseline Lesson 5, Topic D
• Set quality gates Lesson 1, Topic B
• Set governance gates Lesson 1, Topic B
• Client sign off Lesson 1, Topic B
• Management approval Lesson 1, Topic B
• Legislative approval Lesson 1, Topic B
1.7 Identify the basic aspects of the Agile
methodology.
• Readily adapt to new/changing requirements Lesson 1, Topic D
• Iterative approach Lesson 1, Topic D
• Continuous requirements gathering Lesson 1, Topic D
• Establish a backlog Lesson 1, Topic D
• Burndown charts Lesson 1, Topic D
• Continuous feedback Lesson 1, Topic D
• Sprint planning Lesson 1, Topic D
• Daily standup meetings/SCRUM meetings Lesson 1, Topic D
• SCRUM retrospective Lesson 1, Topic D
• Self-organized and self-directed teams Lesson 1, Topic D
1.8 Explain the importance of human
resource, physical resource, and personnel
management.
• Resource management concepts Lesson 4, Topic D
• Shared resources Lesson 4, Topic D
• Dedicated resources Lesson 4, Topic D
• Resource allocation Lesson 4, Topic D
• Resource shortage Lesson 4, Topic D
• Resource overallocation Lesson 4, Topic D
• Low-quality resources Lesson 4, Topic D
• Benched resources Lesson 4, Topic D
• Interproject dependencies Lesson 4, Topic D
• Interproject resource contention Lesson 4, Topic D
• Personnel management Lesson 12, Topics C-E
• Team building Lesson 12, Topic D
• Trust building Lesson 12, Topic D
• Team selection Lesson 12, Topic C
• Skill sets Lesson 12, Topic D

• Remote vs. in-house Lesson 12, Topics C and D
• Personnel removal/replacement Lesson 12, Topic D
• Communication issues Lesson 8, Topic B; Lesson 12, Topic
E
• Conflict resolution Lesson 12, Topic E
• Smoothing Lesson 12, Topic E
• Forcing Lesson 12, Topic E
• Compromising Lesson 12, Topic E
• Confronting Lesson 12, Topic E
• Avoiding Lesson 12, Topic E
• Negotiating Lesson 12, Topic C
Domain 2.0 — Project Constraints
2.1 Given a scenario, predict the impact of
various constraint variables and influences
through the project.
• Common constraints Lesson 15, Topics A-D
• Cost Lesson 15, Topic C
• Scope Lesson 15, Topic A
• Time Lesson 15, Topic B
• Deliverables Lesson 15, Topic A
• Quality Lesson 15, Topic D
• Environment Lesson 15, Topic D
• Resources Lesson 15, Topic D
• Requirements Lesson 15, Topics A-D
• Scheduling Lesson 15, Topic B
• Influences Lesson 12, Topic G; Lesson 14,
Topics A and B; Lesson 15, Topic A
• Change request Lesson 14, Topic B; Lesson 15, Topic
A
• Scope creep Lesson 14, Topic B
• Constraint re-prioritization Lesson 3, Topic C
• Interaction between constraints Lesson 3, Topic C
• Stakeholders/sponsors/management Lesson 3, Topic C
• Other projects Lesson 3, Topic C
2.2 Explain the importance of risk strategies
and activities.
• Strategies Lesson 9, Topic E
• Accept Lesson 9, Topic E

• Mitigate Lesson 9, Topic E
• Transfer Lesson 9, Topic E
• Avoid Lesson 9, Topic E
• Exploit Lesson 9, Topic E
• Risk activities Lesson 9, Topics A, B, and D
• Identification Lesson 9, Topic B
• Quantification Lesson 9, Topic D
• Planning Lesson 9, Topic A
• Review Lesson 16, Topic A
• Response Lesson 9, Topic E
• Register Lesson 9, Topics B and C
• Prioritization Lesson 9, Topic D
• Communication Lesson 9, Topic A; Lesson 16, Topic
A
Domain 3.0 — Communication and Change
Management
3.1 Given a scenario, use the appropriate
communication method.
• Meetings Lesson 8, Topic A; Lesson 12, Topics
F and G; Lesson 18, Topic C
• Kick-off meetings Lesson 12, Topic D and G
• Virtual vs. in-person meetings Lesson 8, Topic A
• Scheduled vs. impromptu meetings Lesson 8, Topic A
• Closure meetings Lesson 18, Topic C
• Email Lesson 8, Topic A
• Fax Lesson 8, Topic A
• Instant messaging Lesson 8, Topic A
• Video conferencing Lesson 8, Topic A
• Voice conferencing Lesson 8, Topic A
• Face-to-face Lesson 8, Topic A
• Text message Lesson 8, Topic A
• Distribution of printed media Lesson 8, Topic A
• Social media Lesson 8, Topic A
3.2 Compare and contrast factors influencing
communication methods.
• Language barriers Lesson 8, Topic A
• Time zones/geographical factors Lesson 8, Topic A
• Technological factors Lesson 8, Topic A

• Cultural differences Lesson 8, Topic A
• Inter-organizational differences Lesson 8, Topic A
• Intra-organizational differences Lesson 8, Topic A
• Personal preferences Lesson 8, Topic A
• Rapport building/relationship building Lesson 8, Topic A
• Tailor method based on content of message Lesson 8, Topic A
• Criticality factors Lesson 8, Topic A
• Specific stakeholder communication Lesson 8, Topic B
requirements
• Frequency Lesson 8, Topic B
• Level of report detail Lesson 8, Topic B
• Types of communication Lesson 8, Topic B
• Confidentiality constraints Lesson 8, Topic B
• Tailor communication style Lesson 8, Topic B
3.3 Explain common communication triggers
and determine the target audience and
rationale.
• Audits Lesson 8, Topic B
• Project planning Lesson 8, Topic B
• Project change Lesson 8, Topic B
• Risk register updates Lesson 8, Topic B
• Milestones Lesson 8, Topic B
• Schedule changes Lesson 8, Topic B
• Task initiation/completion Lesson 8, Topic B
• Stakeholder changes Lesson 8, Topic B
• Gate reviews Lesson 8, Topic B
• Business continuity response Lesson 8, Topic B
• Incident response Lesson 8, Topic B
• Resource changes Lesson 8, Topic B
3.4 Given a scenario, use the following change
control process within the context of a project.
• Change control process Lesson 11, Topic A; Lesson 14, Topic
B
• Identify and document Lesson 14, Topic B
• Evaluate impact and justification Lesson 14, Topic B
• Regression plan (Reverse changes) Lesson 14, Topic B
• Identify approval authority Lesson 14, Topic B
• Obtain approval Lesson 14, Topic B

• Implement change Lesson 14, Topic B
• Validate change/quality check Lesson 14, Topic B
• Update documents/audit documents/ Lesson 14, Topic B
version control
• Communicate throughout as needed Lesson 14, Topic B
• Types of common project changes Lesson 11, Topic A
• Timeline change Lesson 11, Topic A
• Funding change Lesson 11, Topic A
• Risk event Lesson 11, Topic A
• Requirements change Lesson 11, Topic A
• Quality change Lesson 11, Topic A
• Resource change Lesson 11, Topic A
• Scope change Lesson 11, Topic A
3.5 Recognize types of organizational change.
• Business merger/acquisition Lesson 11, Topic A
• Business demerger/split Lesson 11, Topic A
• Business process change Lesson 11, Topic A
• Internal reorganization Lesson 11, Topic A
• Relocation Lesson 11, Topic A
• Outsourcing Lesson 11, Topic A
Domain 4.0 — Project Tools and
Documentation
4.1 Compare and contrast various project
management tools.
• Project scheduling software Lesson 4, Topics C and D; Lesson 5,
Topic A
• Charts Lesson 4, Topic C; Lesson 7, Topic B;
Lesson 15, Topics B and D
• Process diagram Lesson 7, Topic B
• Histogram Lesson 12, Topic B; Lesson 15, Topic
D
• Fishbone Lesson 12, Topic B; Lesson 7, Topic
B
• Pareto chart Lesson 12, Topic B; Lesson 15, Topic
D
• Run chart Lesson 12, Topic B; Lesson 15, Topic
B
• Scatter chart Lesson 12, Topic B; Lesson 15, Topic
D
• Gantt chart Lesson 5, Topic A; Lesson 15, Topic

B
• Dashboard/status report Lesson 14, Topic C
• Knowledge management tools Lesson 1, Topics A and D; Lesson 5,
Topic A; Lesson 13, Topic A; Lesson
18, Topic C
• Intranet sites Lesson 1, Topic C
• Internet sites Lesson 5, Topic A; Lesson 13, Topic
A
• Wiki pages Lesson 1, Topic A
• Vendor knowledge bases Lesson 13, Topic A
• Collaboration tools Lesson 1, Topic C; Lesson 12, Topic
D; Lesson 18, Topic C
• Performance measurement tools Lesson 14, Topic C
• Key performance indicators Lesson 3, Topic C; Lesson 14, Topic
C
• Key performance parameters Lesson 14, Topic C
• Balanced score card Lesson 14, Topic C
• SWOT analysis Lesson 9, Topic B
• Responsible, Accountable, Consulted, Lesson 7, Topic A
Informed (RACI) Matrix
4.2 Given a scenario, analyze project-centric
documentation.
• Project charter Lesson 2, Topic C
• Project management plan Lesson 3, Topic A
• Issues log Lesson 12, Topic E
• Organizational chart Lesson 1, Topic C
• Scope statement Lesson 3, Topic C
• Communication plan Lesson 8, Topic B
• Project schedule Lesson 5, Topic A
• Status report Lesson 14, Topic C
• Dashboard information Lesson 14, Topic C
• Action items Lesson 12, Topic E
• Meeting agenda/meeting minutes Lesson 8, Topic A; Lesson 12, Topic
G; Lesson 18, Topic C
4.3 Identify common partner or vendor-centric
documents and their purpose.
• Request for Information Lesson 10, Topic C
• Request for Proposal Lesson 10, Topic C
• Request for Quote Lesson 10, Topic C

• Mutually binding documents Lesson 13, Topic B; Lesson 17, Topic
B
• Agreements/contracts Lesson 13, Topic B; Lesson 17, Topic
B
• Non-disclosure agreement Lesson 17, Topic B
• Cease and Desist letter Lesson 17, Topic B
• Letters of Intent Lesson 17, Topic B
• Statement of Work Lesson 2, Topic B; Lesson 10, Topic
C
• Memorandum of Understanding Lesson 13, Topic B
• Service Level Agreement Lesson 13, Topic B
• Purchase Order Lesson 13, Topic B
• Warranty Lesson 17, Topic B
Mastery Builders
Mastery Builders are provided for certain lessons as additional learning resources for this
course. Mastery Builders are developed for selected lessons within a course in cases when
they seem most instructionally useful as well as technically feasible. In general, Mastery
Builders are supplemental, optional unguided practice and may or may not be performed as
part of the classroom activities. Your instructor will consider setup requirements, classroom
timing, and instructional needs to determine which Mastery Builders are appropriate for you
to perform, and at what point during the class. If you do not perform the Mastery Builders
in class, your instructor can tell you if you can perform them independently as self-study,
and if there are any special setup requirements.
Mastery Builder 1-1

Reviewing Project Management
Fundamentals
Activity Time: 10 minutes
Scenario
In this Mastery Builder, you will have an opportunity to test your knowledge of the
information that was presented in this lesson.
Note: The activity includes questions similar to those you may find in the
CompTIA Project+ (PK0-004) certification exam.
1. Which process group involves defining the need for a project or

phase and obtaining a commitment to move forward?
○ Planning
○ Executing
○ Initiating
○ Closing
2. Which process group involves developing a strategy and refining

objectives?
○ Planning
○ Closing
○ Initiating
○ Executing
3. What does the term “progressive elaboration” refer to?

○ Constantly changing the scope of the project.
○ Gaining additional clarity and detail of project deliverables as the project moves
through the project life cycle.
○ Letting team members make scope changes without customer approval.
○ Introducing detailed information in to the project plan as the project progresses.
Mastery Builders
4. Which is an ongoing administrative unit or department in an organization that

coordinates and manages projects under its control?
○ The project team
○ The project management office
○ The project management team
○ The project management process group
5. Which stakeholder manages the core business areas such as the design,
manufacturing, provisioning, testing, research and development, or
maintenance side of the organization?
○ The functional manager
○ The program manager
6. In which organizational structure is an individual assigned to report to a single

manager?
○ The weak matrix
○ The strong matrix
○ The functional structure
○ The project-based structure
7. Which project structure typically results in greater levels of technical depth

and breadth within the parent organization?
○ The weak matrix
8. Which is true of a matrix structure?

○ In a matrix structure, employees' administrative, developmental, and performance management are
focused on their functional manager with proportional performance and developmental input by project
managers.
○ In a matrix structure, 50% of an employee's time is assigned to functional tasks and the other 50%
to project tasks.
○ In a matrix structure, employees are equally answerable to both functional and project managers.
○ In a matrix structure, employees are answerable to the project manager, but report both to the
functional and project manager.
9. Of the various organizational structure alternatives, which has the fastest

response time?
○ The weak matrix
Mastery Builders
10.Whichof the following principles are found in the Agile

methodology?
☐ Focus on customer value
☐ Iterative and incremental delivery
☐ PMO-organized teams
☐ Collaborative team
☐ Simultaneous implementation of collected improvements
Mastery Builders
Mastery Builder 2-1

Reviewing Project Initiation
Scenario
In this Mastery Builder, you will have an opportunity to test your knowledge of the information that
was presented in this lesson.
Note: The activity includes questions similar to those you may find in the CompTIA Project+
(PK0-004) certification exam.
1. Choose the component that should always be included in the project charter.
○ A breakdown of the functions and activities to be performed on the project.
○ A statement of project goals via a project SOW and authorization of the project manager to use
organizational resources on the project.
○ A list of the project stakeholders and their areas of responsibilities.
○ A schedule of project activities.
2. True or False? An effective SOW helps internal resources and potential

sellers to evaluate their capability to perform the work specified.
☐ True
☐ False
3. Which reasons are important for a project charter to be signed by a highly

placed person in the organization? Select all that apply.
☐ To indicate the relative importance and priority of the project within the organization.
☐ To provide authority for the project manager to cross functional boundaries when carrying out
project plans and activities.
☐ To provide a signed document, which indicates that the project team members can start work on
the project.
☐ To provide greater credibility with people outside the project who may be asked to contribute
resources or join the project team.
4. Which option documents an approach to increase the support and minimize

negative impacts of stakeholders throughout the project life cycle?
○ Stakeholder analysis
○ Stakeholder communications planning
○ Risk management planning
○ Stakeholder management strategy
Mastery Builders
5. What information will a SOW contain? Select all that apply.

☐ It describes the products or services that the project will supply.
☐ It defines the business need that it is designed to meet.
☐ It defines the functionality that a project is designed to accommodate.
☐ It specifies the work that will be done during the project.
6. Which statement about stakeholder management strategy is true?

○ It is the process of identifying all the stakeholders of a project.
○ It is created by the project manager when identifying stakeholders.
○ It classifies stakeholders based on their potential impact or support on the project.
○ It is a document that describes the company's marketing needs and request for
proposals.
7. Which component of the project charter specifies what the project

will produce?
○ Project objectives
○ Scope definition
○ Project description
○ Project deliverables
Mastery Builders
Mastery Builder 3-1

Reviewing Project Strategy
Scenario
1. What is the purpose of scope definition?

○ Creates an overall strategy for approaching the project.
○ Defines the tasks that are included in a project and the tasks that are not included.
○ Provides an understanding of the project’s major objectives by identifying what is within the scope
and what is currently out of the scope.
○ Defines the quality parameters affecting project procurements.
2. Which component is a graphical representation of the deliverables included in

the project?
○ The Requirements Document
○ The Work Breakdown Structure
○ The Organizational Breakdown Structure
○ The Project Schedule
3. Which elements are included in a project scope statement? Select all that
apply.
☐ Detailed project risks
☐ Project justification and deliverables
☐ Project description and objectives
☐ Schedule and costs for the project
4. Which technique involves decision-making methods such as unanimity,

majority, plurality, and dictatorship?
○ Group decision-making techniques
○ Interviews
○ Questionnaires and surveys
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Mastery Builder 4-1

Reviewing Project Schedule Development
Scenario
1. Activity A has an SS precedence relationship with Activity B;

further, Activity B has a two-day lag. If A's duration is eight days,
and B's duration is five days, what is the total amount of time it
should take to complete both A and B?
○ 13 days
○ 15 days
○ 5 days
○ 8 days
2. Which estimating method requires managers to use their

experience, historical information from similar projects, and expert
judgment to determine total project cost or a time estimate?
○ Analogous or top-down estimating
○ Bottom-up estimating
○ Revenue estimating
3. What will be the outcome in an FS precedence relationship with a

one-day lead?
○ The precedent activity can start one day before the subsequent activity starts.
○ The subsequent activity can start one day before the precedent activity is completed.
○ The subsequent activity cannot start until one day after the precedent activity
finishes.
○ The subsequent activity must start within one day of when the precedent activity
starts.
4. Which is an example of an FS interactivity relationship?

○ Activity B can't start until Activity A is complete.
○ Activity B can't finish until Activity A is complete.
○ Activity B can't finish until Activity A starts.
○ Activity B can't start until Activity A starts.
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5. Activity A has an FF precedence relationship with Activity B. If A's duration is

two days and B's duration is eight days, what is the shortest total duration for
completing both A and B?
○ 10 days
○ 8 days
○ 12 days
○ 6 days
6. Activity A has an SS precedence relationship with Activity B, which has a four-

day lag. If A's duration is two days and B's duration is 12 days, what is the
total amount of time it will take to complete both A and B?
○ 12 days
○ 18 days
○ 14 days
○ 16 days
7. Which task is related to the process of estimating activity resources?

○ Estimating the type and number of resources required to complete activities.
○ Developing cost estimates for each resource required for project work.
○ Apportioning resource cost estimates across all work packages.
○ Documenting product requirements and identifying potential sources.
8. Choose the statements that are true of bottom-up estimating. Select all that
apply.
☐ It is used when enough historical information is present.
☐ The most accurate estimating method.
☐ The most challenging estimating method.
☐ The most costly and time-consuming estimating method.
9. When a lead occurs in an activity, what is its effect upon other activities?
○ It accelerates a successor task.
○ It delays a successor task.
○ It delays a predecessor task.
○ It accelerates a predecessor task.
10.What are the reasons that deliverables should be broken down into work
packages during the development of the WBS? Select all that apply.
☐ In order to define the scope of the project.
☐ In order to make the activities easier to manage.
☐ In order to make costing easier.
☐ In order to create activities that can be assigned to a single organizational unit.
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11.What do you find at the lowest level of a WBS?

○ Tasks
○ Sub-tasks
○ Work packages
○ Cost accounts
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Mastery Builder 5-1

Reviewing Project Schedule Development
Scenario
1. Which statements are true of the critical path? Select all that apply.
☐ It is used to analyze the schedule model.
☐ It shows the shortest amount of time required for completing the project.
☐ It is the longest path through the network.
☐ It always has zero amount of total float.
2. What are the two schedule compression techniques—fast-tracking and
crashing—used for?
○ Estimating activity duration
○ Shortening total project schedule duration
○ Planning activity sequence
○ Developing an activity schedule
3. In a PDM network, which formula will you use to calculate the slack for an
activity?
○ Earliest start date minus the earliest finish date for that activity.
○ Latest time when the event can start minus the earliest time when the event can start.
○ Earliest time when the event can start minus the latest time when the event can finish.
○ Total project duration minus total duration on the critical path.
4. Choose the appropriate task a project manager needs to perform when
leveling resources on a project.
○ Extending the finish date.
○ Adding resources.
○ Discussing a change in the project scope with the stakeholders.
○ Manually determining where to adjust resources.
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5. What is total float?

○ The amount of time that an activity can be delayed from its EF without delaying the
finish date of the consecutive activities.
○ The amount of time that an activity can be delayed without delaying the ES of the
activities that immediately follow it.
○ The amount of time on a critical network path that an activity can be delayed without
delaying the completion date of the project.
○ The amount of float on any network path.
6. Which technique involves overlapping project activities to shorten

project duration?
○ Fast-tracking
○ Risk conversion
○ Synchronous manufacturing
○ Parallel management
7. When crashing an activity, which task should the project team

focus on?
○ Accelerating the performance of as many tasks as possible.
○ Accelerating the performance of those tasks on the critical path.
○ Accelerating the performance by minimizing costs.
○ Accelerating the performance of noncritical tasks.
8. Which element is drawn from the schedule network analysis and

includes baseline start and finish dates?
○ The WBS package
○ Summary activities
○ The activity list
○ The schedule baseline
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Mastery Builder 6-1

Reviewing Project Costs
Scenario
1. Identify the sources from where you can obtain cost estimate information.
☐ Trade organizations, vendors, and suppliers
☐ Past project experience and current project team members
☐ The project schedule
☐ Commercial databases
2. What should be included in a project cost baseline? Select all that apply.
☐ Estimates of the most likely project costs
☐ Management reserves
☐ Unforeseen expenditures for the project
☐ Assumptions for the estimates
3. What step will a project manager take to help prevent cash flow problems?
○ Use the contingency reserves of other projects.
○ Make efforts to engage the finance department to put in place a cash flow forecast.
○ Make sure that customers are financially stable.
○ Request additional funding from project sponsors.
4. Which inputs will you use to determine the project budget?

○ Activity cost estimates, resource calendars, funding limit reconciliation, and cost aggregation
○ Basis of estimates, the scope baseline, resource calendars, and reserve analysis
○ Activity cost estimates, the scope baseline, the project schedule, and contracts
○ Activity cost estimates, the scope baseline, the project schedule, and the cost performance
baseline
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5. Which guidelines allow you as the project manager to reconcile the

costs with the funding that has been approved by the sponsor?
☐ Map the project budget, scope statement, and schedule to the funding available.
☐ Involve the project sponsor.
☐ Consider adding in a contingency amount to accommodate the risk of incurring extra
expenses.
☐ Partner formally with the company's financial decision makers.
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Mastery Builder 7-1

Reviewing Human Resources and Quality
Scenario
1. Which tool is consistently used to document the roles and responsibilities of a

project?
○ The role administration matrix
○ The responsibility assignment matrix
○ The responsibility and role hierarchy
○ The staffing management plan
2. Which document shows the reporting structure within the project and its
relationship to the parent organization?
○ The resource staffing histogram
○ The organization chart
3. On which concept is “total quality management” based?
○ Quality is an ongoing process rather than a one-time event.
○ Quality standards should be established universally in every industry.
○ Quality issues should be supervised and controlled by a quality management team.
○ Quality planning is the most integral part of the quality system.
4. What is quality planning?
○ The process of identifying the quality standards that can be applied to the project and determining
how to meet those standards.
○ The process of evaluating quality results and planning improvement strategies.
○ The process of systematically evaluating project quality.
○ The process of establishing a communications plan between stakeholders and work package
owners for quality updates.
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5. What are the uses of project benchmarking? Select all that apply.
☐ Compare project practices to those of other projects to develop performance
measurements.
☐ Identify potential problems and possible effects for those problems.
☐ Determine marketing costs associated with a specific product.
☐ Determine which product or services to offer and what features to include.
6. Which tasks are included in the cost of quality? Select all that
apply.
☐ Cost of quality planning
☐ Cost of preventing conformance
☐ Cost of rework
☐ Cost of monitoring non-conformance
7. Which statements are true about formal project recognition and

rewards? Select all that apply.
☐ Documented in the communications management plan.
☐ Documented in the human resource management plan.
☐ Perceived by project team members as being tied to performance.
☐ Addressed only at the end of the project.
8. At what points in the project should the quality audits or inspections

take place? Select all that apply.
☐ At the end of every process cycle.
☐ When each project activity starts.
☐ At random intervals within a process cycle.
☐ At random intervals over the course of the project.
9. Why is the cost of quality used during quality assurance?

○ To determine the most effective approach when considering prevention, inspection,
and repair of processes.
○ To determine if the cost of the product will meet budget requirements.
○ To persuade management to invest in quality product methods.
○ To assess the cost of implementing quality improvements.
10.Which task is an example of cost of non-conformance?

○ Training
○ Product design
○ Planning
○ Rework
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11.Which tool is used to verify if the steps in a process are being followed?
○ Checklist
○ Trend analysis
○ Inspection
○ Performance review
12.Choose the factors to be considered when analyzing project trade-offs among

cost, time, and quality, where cost must be controlled in order to meet the
cost baseline. Select all that apply.
☐ The impact on quality only.
☐ The impact on schedule and quality.
☐ The impact of additional risk that may be introduced.
☐ The impact on schedule and scope.
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Mastery Builder 8-1

Reviewing Communication During a
Project
Scenario
1. The communications management plan is the most important

portion of the project management plan for managing stakeholders.
Why?
○ It keeps the stakeholders involved with day-to-day management of the project.
○ It helps the project manager to understand stakeholder expectations for project
communication.
○ It gets stakeholders involved in the planning process.
○ It helps identify all the stakeholder needs and objectives for the project.
2. Which project factor is likely to prevent effective performance of the

communications plan?
○ The virtual team will use the company intranet to transmit documents.
○ All client company meeting time has been set to no more than 30 minutes a week for
each employee.
○ The customer wants its technical manager to review project data monthly.
○ The team is co-located in a trailer behind the main plant.
3. A team has 20 people on it. How many potential communication

channels exist on this team?
○ 19
○ 190
○ 20
○ 380
4. Which is true of using project intranets and home pages for

communication?
○ Limited because only large organizations have access to these tools.
○ Ineffective because external project stakeholders cannot access them.
○ A security risk because there is no way to restrict access to them.
○ An effective way to provide information to a variety of users.
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5. Which tool will you use for analyzing and communicating the relationships
between process steps?
○ Scatter diagrams
○ Control charts
○ Flowcharts
○ Trend analysis
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Mastery Builder 9-1

Reviewing Project Risk Management
Planning
Scenario
1. What is the purpose of qualitative risk analysis?

○ Used to select alternative strategies for dealing with risks.
○ Used to determine if the risk responses have been implemented as planned.
○ Used to analyze the probability of each risk numerically.
○ Used to assess the impact and likelihood of the identified risks.
2. Which option best describes transference?

○ Reducing the probability of an adverse risk event to an acceptable level.
○ Changing the project plan to eliminate a risk.
○ Shifting the responsibility for a response and possible impact of a risk to a third party.
○ Developing a contingency plan.
3. What are the four main areas that project managers typically
consider when discussing risks?
○ Design, supply chain, production, and marketing
○ Time, cost, quality, and scope
○ Initiation, planning, executing, and closing
○ Methods, materials, metrics, and people
4. What do you call a specific occurrence that may impact the project
in the future, either positively or negatively?
○ Risk factor
○ Project risk
○ Risk-opportunity dichotomy
○ Expected value
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5. What are residual risks?

○ Those risks that have no impact on the project budget or schedule.
○ The same as secondary risks.
○ Those risks that remain after risk responses have been taken.
○ A direct result of implementing a risk response.
6. During a project's life cycle, risk identification:

○ Should take place during each project phase.
○ Is done during the implementation and planning phases only.
○ Is done during the planning phase only.
○ Is no longer needed during the closing phase of a project.
7. For what reasons are the network diagramming and flowcharting methods
used in risk identification? Select all that apply.
☐ To indicate areas of the WBS that should be redrawn as a result of risk identification.
☐ To determine the root cause of a project risk.
☐ To show the effect of a particular risk on a project.
☐ To identify all the possible risks to a project.
8. For what reasons is the Delphi technique often used during risk identification?
☐ It emphasizes the potential impact of risk by describing incidents that illustrate the consequences
of ignoring the risk.
☐ It identifies overall project risks and focuses on a particular project segment or work package.
☐ It ensures that all stakeholder inputs are received and the risk process is not unduly influenced by
a small number of persons.
☐ It motivates stakeholders to invest in the risk identification process through the use of anonymous
input via questionnaires.
9. Jennifer is a publisher. In order to make sure that her writer delivers on time,
she inserts a penalty clause for late delivery in her writer’s contract. Which
risk response is Jennifer using?
○ Risk acceptance
○ Risk transference
○ Risk mitigation
○ Risk avoidance
10.Which risk response can be categorized as either passive or active?

○ Risk mitigation
○ Risk acceptance
○ Risk avoidance
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Mastery Builder 10-1

Reviewing Procurement Planning
Scenario
1. Which procurement document is commonly used when

deliverables are commodities for which there are clear
specifications and when price will be the primary determining
factor?
○ RFQ
○ RFP
○ RFB
○ RFI
2. Which option is used to evaluate each seller's proposal and make

comparisons among different proposals?
○ The source selection criteria
○ The teaming agreements
○ The procurement statements of work
○ The procurement documents
3. Which document provides a description of the work authorized to

be performed by a supplier?
○ The work breakdown system
○ The procurement SOW
○ The project plan
4. Which document includes the invitation for bid and guidelines for
sellers to submit the invitation for bid?
○ The procurement document
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5. Which is a legal contractual agreement between two or more parties to form a

joint venture defined by the parties to meet the requirements of a business
opportunity?
○ Outsourcing
○ Teaming agreement
○ Change requests
6. Which procurement document is generally used to develop lists of qualified

sellers and gain more input for resource availability?
○ RFI
○ RFP
○ IFB
○ RFQ
Mastery Builders

Reviewing Change and Transitions
Scenario
1. How is the project scope statement used?

○ As input during project transition that helps determine the limitations of the project.
○ As input during project transition that helps align the transition plan with stakeholder
expectations and interests.
○ As output during project transition that ensures that project benefits are measured
and benefits to the sustainment plan exist.
○ As a tool to manage changes to the project management plan.
2. What are some of the reasons for performance variations in a

project? Select all that apply.
☐ Specification changes
☐ New regulations
☐ Missed requirements
☐ New changes to the project plan
☐ Inaccurate initial estimates
3. Which tool is used to manage changes to a product or service

being produced?
○ Infrastructure management
○ Configuration management
○ Agile project management
○ Operations management
4. Which items are included in work performance information? Select

all that apply.
☐ Details on project stakeholders.
☐ Lessons learned that are posted to the lessons learned knowledge base.
☐ Contingency amounts reserved for the project.
☐ Expenses authorized and incurred.
☐ All schedule activities and their start and finish dates.
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5. True or False? Product transitions can be contracted.

☐ True
☐ False
6. With whom should you conduct detailed discussions while creating a

transition management plan? Select all that apply.
☐ Sellers
☐ Sponsors
☐ Customers
☐ CEO
☐ Stakeholders
7. Which is not a component of the transition plan?

○ Creating the scope of the transition and specifying what must be included and what can be
excluded in the transition.
○ Identifying the stakeholders and their organization or group that must receive the transferred
products.
○ Creating a resource release plan that specifies what the resources must do after the benefits are
realized and the products transferred.
○ Identifying all the schedule activities and their start and finish dates.
8. Which type of support is not included as part of extended support?

○ Troubleshooting
○ Product training
○ Maintenance
○ Customer service
○ Installation
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Reviewing Project Execution
Scenario
1. What are the important reasons behind the efforts taken by a

project manager to foster motivation? Select all that apply.
☐ To help the team work through a temporary setback.
☐ To help the team overcome lack of confidence.
☐ To ensure that there are no activities that have late start criteria.
☐ To accomplish early “wins” in the project's life cycle.
2. Which option helps notify the work package owners when to begin
work?
○ The status review system
○ The work authorization system
○ The PMIS
3. What does a work authorization system ensure? Select all that

apply.
☐ Work done is in line with the project goals.
☐ Clearly outlines what work is to be done.
☐ Identifies who is to do the work.
☐ Helps understand when the work is to begin and end.
4. Which element is a form of operational definition?

○ Metrics
○ Control limits
○ PCIs
○ COQ
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5. Which tool is used to collect, archive, and distribute project information?

○ The communications plan
○ The project management enterprise software
○ The PMIS
○ The communication and feedback system
6. Which items are contained within the work performance information? Select
all that apply.
☐ Completed and incomplete deliverables.
☐ Actual conformance to the quality plan.
☐ Intended performance details of the work to be completed.
☐ ETC for scheduled activities that have started.
7. What is quality assurance?

○ Strategizing how to create products that meet quality requirements.
○ Conforming product specifications to customer requirements.
○ A pattern of activities which ensure that the product will meet quality requirements.
○ A set of tactics that are used to determine if goods meet quality requirements.
8. Which statements best describe project quality audit? Select all that apply.
☐ Contains an approved quality audit methodology.
☐ Contains the historical data of change recommendations.
☐ Ensures that efficient or effective processes and procedures are used.
☐ Determines whether the project complies with organizational and project policies, processes, and
procedures.
9. What does co-location mean?

○ That the team members are distributed geographically.
○ That the team is working in one physical location.
○ That the team uses one server to log in.
○ That the team members work from home.
10.Which statement is true of version control?

○ Required so that team members do not overwrite one another's work.
○ Not required for project managers who use adequate backup systems.
○ Required to make sure that everyone is working with the same, most recent document.
○ Required to maintain only the latest version of the document.
11.Which of these statements are true of the PMO? Select all that apply.
☐ A team that manages multiple projects concurrently.
☐ The same as the office of the CEO.
☐ A unit that centralizes and coordinates the management of projects.
☐ An organization that may provide project support functions.
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12.Which of these statements are true of quality audits? Select all that
apply.
☐ Are only done at the end of the project.
☐ Are used to check the fitness of the project's output or the fitness of the quality plan.
☐ Are done only once during the entire project life cycle.
☐ Are best done at random intervals over the course of the project.
13.Why are quality audits performed? Select all that apply.

☐ To evaluate whether the project output is fit for the purpose it was intended.
☐ To evaluate if the best practices identified in the previous projects have been
implemented.
☐ To evaluate whether the quality management plan is still appropriate after quality
improvements have been made.
☐ To evaluate if the quality assurance team members are qualified.
☐ To evaluate how statistical process control may be used to improve the capability of
a process.
14.What should you do when the quality assurance team suggests

quality improvements in your project? Select all that apply.
☐ Assess them for risk to project success.
☐ Determine the cost of quality.
☐ Subject them to trade-off analysis.
☐ Ensure that the change does not affect the project scope.
15.On which idea is quality assurance based?

○ Creating a margin of error for product specifications.
○ Preventing problems, rather than fixing them.
○ Establishing upper and lower specifications for products.
○ Increasing production rates by providing training for quality control inspectors.
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Reviewing Project Procurement Execution
Scenario
1. What does the project manager do when requesting seller responses?

○ The project manager plans purchases.
○ The project manager solicits quotations.
○ The project manager selects a seller.
○ The project manager evaluates project progress.
2. Which allows potential sellers to ask questions about the project and its
requirements?
○ Advertised bids
○ Bidder conferences
○ The newspaper advertisement
○ The annual meeting
3. Which is included on a qualified sellers' list?

○ Sellers' names
○ Procurement documents
○ Proposals
○ Advertised bids
4. Which document sent to prospective sellers provides information regarding

the requirement specifications and needs of your project?
○ Project documents
○ The procurement document
○ The RFI
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5. What tools are used while conducting procurement?

○ Bidder conferences, SWOT analysis, independent estimates, and expert judgment
○ Procurement negotiations, advertising, contingent response strategies, and proposal
evaluation techniques
○ Independent estimates, make-or-buy decisions, qualified seller lists, and source
selection criteria
○ Bidder conferences, independent estimates, expert judgment, and procurement
negotiations
6. True or False? A procurement contract is a mutually binding

agreement that details the obligations of only the seller.
☐ True
☐ False
7. Which is not an evaluation system technique?

○ Independent estimates
○ The screening system
○ The weighing system
○ Bidder conferences
8. In which procurement process step will you perform contract

negotiation?
○ Plan purchases and acquisitions
○ Plan contracting
○ Request seller responses
○ Select sellers
9. The project manager is in the process of evaluating bids on a

scope of work that the resources in the organization are not familiar
with. Which is the best technique to ensure that there are no
significant differences in the comprehension of the scope with the
prospective seller?
○ The weighting system
○ The expected value
○ The independent estimate
10.In which of the processes is contract an output?

○ Plan purchase and acquisition
○ Select sellers
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Reviewing Monitoring and Controlling Project
Performance
Scenario
1. What is scope creep?

○ Reduction of the project scope.
○ A type of residual risk.
○ An activity that needs to be included in the project schedule.
○ Undocumented changes to the project scope.
2. The control processes are repeated throughout the project life cycle.
Therefore, which term can be attributed to the control processes?
○ Facilitative processes
○ Integrative processes
○ Core processes
○ Iterative processes
3. What types of information do the performance reports provide you with?

☐ Details of team members assigned to work on the project.
☐ Percentage of activity work completed to date.
☐ Activities started to date.
☐ Activities completed to date.
4. Who is responsible for ensuring that changes are processed through the
integrated change control process?
○ The president
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5. Which statements are true of change requests? Select all that

apply.
☐ They must be documented.
☐ They can come from anyone.
☐ They will not affect the project scope.
☐ They must be subjected to an integrated change control process.
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Constraints
Scenario
1. What statements best describe inspections? Select all that apply.

☐ May be referred to as product reviews, audits, or walkthroughs.
☐ Involve comparing schedules and budgets to the actual project results.
☐ Are examinations of change requests to verify that the objectives are met.
☐ Are only effective if done at random intervals in a production process.
2. Which analytical tools are used to assess project progress and identify the
magnitude of cost, resource, and production variations? Select all that apply.
☐ Gantt chart review
☐ Monte Carlo analysis
☐ Project cost baseline audit
☐ Earned value analysis
3. What does a CPI of 0.8 mean to the project?

○ Under-budget to date.
○ Over-budget to date.
○ On budget.
○ Nothing; CPI values are always above 1.0.
4. For what reasons are Gantt charts useful for reporting project progress?
☐ They display schedule performance trends.
☐ They are easy to read.
☐ They are available in most project management software packages.
☐ They provide detailed analysis for making adjustments.
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5. A project has a negative cost variance and an SPI less than 1.0.
What does this mean to the project?
○ It is over-budget and ahead of schedule.
○ It is under-budget and behind schedule.
○ It is over-budget and behind schedule.
○ It is under-budget and ahead of schedule.
6. What is the purpose of trend analysis?

○ Forecast future project performance.
○ Improve variance reporting.
○ Create change requests.
○ Mitigate the harmful effects of scope creep.
7. What is the difference between the EV and PV?

○ Cost variance
○ Schedule variance
○ Unearned value
○ Actual cost
8. What does an SPI of 1.2 mean to the project?

○ Ahead of schedule.
○ According to schedule.
○ Behind schedule.
○ Nothing; SPI values are always above 1.0.
9. What is the SV if the PV is $275,000 and the EV is $300,000?

○ $25,000
○ - $25,000
○ $125,000
○ $575,000
10.What are the changes made to keep project activities on schedule

called?
○ Corrective actions
○ Quality audits
○ Performance measurements
○ Schedule baselines
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11.Basedon the performance measures indicated in the following table, what is

the CV for Case 3?
○ -1,000
○ 1,000
○ 2,000
○ -2,000

the SV for Case 2?
○ -1,000
○ 1,000
○ 2,000
○ -2,000
13.“500 rejected parts” is an example of which sampling technique?

○ Attribute sampling
○ Variable sampling
○ Random sampling
○ Stratified sampling
14.Which statement is true of quality problems that organizations face?

○ Originate on the shop floor because of waste and rework.
○ Could be avoided by taking action on potential quality improvement ideas.
○ Could be eliminated if supervisors monitored their work more closely.
○ Originate in the QA organization where the ultimate responsibility for quality rests.
15.A+ or – 3-Sigma limit indicates approximately what percentage of the process

output will be within acceptable limits?
○ 30
○ 80
○ 68
○ 99
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16.Which chart is ordered by frequency of categorized causes of poor

quality performance?
○ A control chart
○ A fishbone diagram
○ A Pareto chart
○ A trend analysis
17.A Pareto chart is a tool that is used to determine the relative impact
each quality problem has on project performance. Which statement
best describes the philosophy of the Pareto Principle?
○ In general, 80% of the quality problems can be justified as correctable using a cost-
benefit analysis. The remaining 20% are not financially worth fixing.
○ To achieve zero defects, all quality problems, including those that do not have a
direct cost, should be corrected.
○ The vast majority of defects are caused by a small percentage of the identifiable
causes. Therefore, improvement efforts should be reserved for these vital few problems.
○ To minimize financial loss to the firm from quality problems, all problems that have a
measurable cost should be corrected.
18.Which technique is used to determine the characteristics of an

entire population based on actual measurement of a representative
sample of that population?
○ Logistical sampling
Mastery Builders

Risks
Scenario
1. A risk reassessment comprises three steps. Select all that apply.

☐ Identify new risks.
☐ Reassess current risks for their probability and impact.
☐ Update the risk management plan.
☐ Close outdated risks.
2. New risks may arise during the execution of a project from which of the
following causes?
☐ Changes in project objectives.
☐ Notification that the project has been cancelled.
☐ A decrease in the project scope.
☐ A restructuring within the organization.
3. True or False? The project management plan can change as a result of a risk
response audit.
☐ True
☐ False
4. How often should risk management be discussed during regular project status
meetings?
○ When new risks have been identified by a member of the project team.
○ During every status meeting.
○ When the objectives of the project change.
○ Whenever an identified risk becomes a reality.
Mastery Builders
5. A risk response audit has determined that nearly all of the

identified risks have been successfully controlled by mitigation.
What might this indicate about the philosophy used to manage
risks?
○ There is adequate contingency reserve in the project.
○ More money is probably being spent on managing risks than is necessary, and the
team should consider accepting more of the risks than mitigating them.
○ Some of the risks should be transferred to another organization.
○ The risk management philosophy is appropriate for the project.
Mastery Builders

Procurements
Scenario
1. When a project is terminated before its scheduled completion date, which of

these is not a correct action?
○ You should halt further expenditures in an orderly way.
○ You should cancel vendor contracts.
○ You should identify and document reasons for termination.
○ You should identify the status of complete and incomplete deliverables.
2. Which are suitable contract performance milestones? Select all that apply.
☐ Partial deliveries of the requirements.
☐ Deferred deliveries of the requirements.
☐ Completion of selected portions of the project work.
☐ Delivery of preliminary versions of the product.
3. As a buyer, what is the purpose of an on-site visit to a supplier?

○ To assess the engagement of the workforce.
○ To determine if your supplier's employees are legal workers.
○ To determine contract performance.
○ To develop a change control system.
4. Which statement is true of the contract change control system?

○ Belongs to the vendor rather than the project organization.
○ Contains all the forms, performance tracking, and procedural information needed to deal with
contract changes.
○ Does not feed information to the project's change control system.
○ Does not include procedures for reviewing and resolving contract disputes.
Mastery Builders

Reviewing Project Closure
Scenario
1. What is true of lessons learned during the project?

○ Should be documented only in the closeout report.
○ Should consist of only project data.
○ Should be documented throughout the project.
○ Should consist of only things that went well during project execution.
2. Which process is concerned with obtaining formal stakeholder

acceptance of completed project deliverables?
○ Project plan execution
○ Scope management
○ Scope verification
○ Quality assurance
3. Which activities are included in an orderly closeout process? Select

all that apply.
☐ Formal acceptance by the customer.
☐ Creation of a transition plan.
☐ Closure of all contracts.
☐ Administrative closure and final reporting.
4. Which is true of a formal project hand-off?

○ It is a bad idea because it embroils the project in the customer's political intrigues.
○ It can positively shape perceptions of the product by highlighting product benefits.
○ It should only be held if the customer pays extra for this service.
○ It does not have a structured agenda for the hand-off meetings.
Mastery Builders
5. When does administrative closure occur in a project? Select all that apply.
☐ At the end of the project.
☐ At the end of each project phase.
☐ Upon delivery of pre-specified milestone deliverables.
☐ When new team members join the team.
6. Which is true of project archives?
○ Should never contain computerized records because they may not be retrievable in later software.
○ Should include key information such as baselines and performance data.
○ Should be handed to the sponsor at the end of the project.
○ Should be updated only at the end of the project.
7. When can the contract closeout occur?
○ At the end of a project only.
○ Whenever a contract is completed and accepted.
○ At the end of a project only, unless the project is terminated early.
○ Whenever a seller is selected.
8. What are the goals of contract closeout? Select all that apply.
☐ To arrange for final settlement of seller payments and claims.
☐ To verify that work was done and delivered to specification.
☐ To provide performance evaluation of seller staff.
☐ To update contract records and documents.
9. Which option best describes the final product, service, or result transition?
○ It is the process of transferring the final product that the project was authorized to produce.
○ It is the process of transitioning the final deliverables to the next phase of development.
○ It is the process of transferring the final product to the Testing department.
○ It is the process of transferring the final product for maintenance.
10.Which content categories should the final project report include? Select all
that apply.
☐ Administrative performance and recommendations.
☐ All invoices from the sellers.
☐ Project structure and recommendations.
☐ Project management performance and recommendations.
11.For what reasons is publishing a project closeout schedule a good idea?
☐ It helps keep people motivated by imposing a deadline.
☐ It provides a sense of order in a time of fluctuating team membership.
☐ It helps team members who are leaving to understand what they must accomplish or handoff
before they can move to a different position.
☐ It provides stakeholders with information on the status of the project.
Mastery Builders
12.What is the output while closing a project or phase?

○ Project management plan updates
○ Final product, service, or result transition
○ Contract closure
○ Work performance information
Mastery Builders
Solutions
ACTIVITY 1-1: Identifying Project Management Basics
1. Based on the scenario, how is the GCCG determining which projects

will be included in the portfolio?
◉ Selecting only projects that relate to the banking expansion.
○ Selecting all projects that must be completed in the same time frame.
○ Selecting projects that the designated Project Manager can realistically handle at the same
time.
○ Selecting only projects that relate to the start-up phase of projects.
2. Which statements describe the responsibilities of a PMO? Select all

that apply.
☑ To primarily approve projects that support business goals and reject projects that do not
support business goals.
☑ To audit projects for compliance to project management processes and metrics.
☐ To plan and execute projects and subprojects based on the overall business objectives.
☑ To ensure that all the projects included in the portfolio are aligned with the business'
strategic objectives and priorities.
3. Within the GCCG organization, who provides the software, templates,

and standardized policies for a project?
○ Stakeholders
○ Human resources
○ The project budget
◉ The PMO
4. Which statement best describes a program?

○ A set of repetitive ongoing tasks.
◉ A set of related projects that have a common objective.
○ A collection of projects that are grouped to achieve the strategic business objectives of an
organization.
○ A temporary endeavor that is undertaken to create a unique product, service, or result.
5. Which GCCG tasks produce the same outcome every time they
are performed?
○ Programs
○ Projects
○ Portfolios
◉ Operations
6. Which of the following is a temporary endeavor that creates a

unique product, service, or result?
○ Program
◉ Project
○ Portfolio
○ Operation
ACTIVITY 1-2: Describing the Project Life Cycle
1. In which project life cycle process group would you have prepared
the activity table for the GCCG bank start-up project that is shown?
◉ Initiating
○ Planning
○ Executing
○ Closing
2. For the GCCG bank project, in which project life cycle process
group will you create the project scope, refine objectives, and
develop a strategy to accomplish the work in the project or phase?
○ Initiating
◉ Planning
○ Executing
○ Closing
3. When you regularly measure progress and identify variances from

the project management plan, in which phase of the bank project
life cycle will you be?
○ Initiating
○ Planning
○ Executing
◉ Monitoring/Controlling
○ Closing
Solutions
4. At which phase will you integrate people and other resources to fulfill the
project management plan for the bank project?
○ Initiating
○ Planning
◉ Executing
○ Closing
5. Your governance team conducts phase-gate reviews throughout the project

life cycle. For which of the following reasons are phase-gate reviews
conducted?
◉ To check the results against the exit criteria of each phase.
○ To direct multiple projects in an organization.
○ To establish a strong foundation for the approval of the project.
○ To monitor the projects within the programs and create the required benefits.
ACTIVITY 1-3: Identifying Organizational Influences on Project

Management
1. Choose the organizational structure where the authority of the project

manager is the highest.
○ Functional
◉ Projectized
○ Matrix
○ Composite
2. Which of the following best defines an organization chart?

○ The various reporting relationships that occur within the project and on the boundaries of the
project.
○ The compositional makeup of an organization that describes how the various groups and
individuals within the organization interrelate.
◉ A visual representation of the project’s organizational structure, whose purpose is to show both the
reporting relationships within the project and the project’s relationship with the parent organization.
○ The project manager’s authority relative to the functional manager’s authority over the project and
the project team.
3. Which organizational structure is a combination of all the other types of

organizations?
○ Matrix
○ Functional
◉ Composite
○ Projectized
Solutions
4. For projects that you have successfully managed, which

organizational structure was the most supportive of your timely
completion of the project?
A: Answers will vary, but will probably include some type of projectized or matrix
organization structure that provides the project manager with the necessary authority and
autonomy.
ACTIVITY 1-4: Describing Agile Methodology
1. How is Agile project management different from traditional project

management? How will these differences benefit particular project
types?
A: Answers will vary. In Agile, the product development and delivery is done in iterations,
unlike traditional project management in which the finished product is delivered to the
client. This helps the teams provide customer value and avoid rework by modifying the
subsequent deliverable based on any global feedback. In Agile, constant communication
among the customer, teams, and stakeholders is emphasized. This facilitates aligning the
final project with the project requirements.
2. Which Agile principles should you follow to make an Agile meeting

a success?
☑ Ensure customer value by including new requirements in the requirements list.
☐ Maintain stringent timelines for the team to keep each requirement on schedule.
☑ Use iterative and incremental delivery to get approval for the features as they are
developed.
☐ Discuss the possibility of sending only the finished product for approval to get
complete feedback on all aspects before proceeding.
☑ Collaborate with the customer to clearly understand all of the requirements.
3. What are the different values of Agile that you should remember
when dealing with your team members and why?
A: Answers may vary, but will include communication because customer requirements
can keep changing and clear communication enables the teams to understand the
requirements better, and humility because this motivates the professionals on the team to
contribute fully.
4. Who is responsible for creating the project vision?

○ Scrum Team
○ Scrum Master
○ Customer
◉ Product Owner
5. What experience, if any, do you have with using Agile to manage

projects?
A: Answers will vary depending on students' experience with a variety of projects and the
amount of time that they have been managing projects. Less experienced project
managers might not have the exposure to using Agile, but most project managers have
some experience with managing projects iteratively and in short bursts.
Solutions
Mastery Builder 1-1: Reviewing Project Management

Fundamentals
1. Which process group involves defining the need for a project or phase and
obtaining a commitment to move forward?
○ Planning
○ Executing
◉ Initiating
○ Closing
2. Which process group involves developing a strategy and refining objectives?

◉ Planning
○ Closing
○ Initiating
○ Executing
3. What does the term “progressive elaboration” refer to?

○ Constantly changing the scope of the project.
◉ Gaining additional clarity and detail of project deliverables as the project moves through the project
life cycle.
○ Letting team members make scope changes without customer approval.
○ Introducing detailed information in to the project plan as the project progresses.
4. Which is an ongoing administrative unit or department in an organization that

coordinates and manages projects under its control?
○ The project team
◉ The project management office
○ The project management team
○ The project management process group
5. Which stakeholder manages the core business areas such as the design,
manufacturing, provisioning, testing, research and development, or
maintenance side of the organization?
◉ The operations manager
○ The program manager
Solutions
6. In which organizational structure is an individual assigned to report

to a single manager?
○ The weak matrix
◉ The functional structure
7. Which project structure typically results in greater levels of

technical depth and breadth within the parent organization?
○ The weak matrix
◉ The functional structure
8. Which is true of a matrix structure?

◉ In a matrix structure, employees' administrative, developmental, and performance
management are focused on their functional manager with proportional performance and
developmental input by project managers.
○ In a matrix structure, 50% of an employee's time is assigned to functional tasks and
the other 50% to project tasks.
○ In a matrix structure, employees are equally answerable to both functional and
project managers.
○ In a matrix structure, employees are answerable to the project manager, but report
both to the functional and project manager.
9. Of the various organizational structure alternatives, which has the

fastest response time?
◉ The project-based structure
○ The weak matrix
10.Which of the following principles are found in the Agile

methodology?
☑ Focus on customer value
☑ Iterative and incremental delivery
☐ PMO-organized teams
☑ Collaborative team
☐ Simultaneous implementation of collected improvements
Solutions
ACTIVITY 2-1: Reviewing Project Selection
1. What experience have you had with the pre-selection process of a project?
Have you been included in the decision-making process as either a
participant or an influencer?
A: Answers will vary depending on students' experiences. It's important to stress that the majority of
project managers are not involved in the project selection process; however, project managers need to
understand the rationale behind the decision making and selection process.
2. Which group of project requirements will GCCG use to discover the

contribution a project makes toward the business of the organization?
◉ Business Requirements document
○ Functional Requirements document
○ Use Case
○ Prototype
3. Which option should be the primary driver for GCCG's project selection
criteria?
◉ Strategic objectives
○ Cost-benefit analysis
○ Root cause analysis
4. In GCCG's decision-making methodology, there are 10 weighted project

criteria that yield a score to determine the project's priority. One of those
criteria is purely subjective for those times when an emphasis on go-with-
your-gut is appropriate. The resulting statistics are fed back to the participants
along with a summary of the group's reasoning. Participants can then revise
their rating using a zero-to-ten scale. The process repeats until consensus is
reached. Which combination of scoring and rating systems is being used?
○ Decision tree and weighted factor
○ Decision tree and Q-sorting
○ Weighted factor and Q-sorting
◉ Weighted factor and Delphi technique
Solutions
5. You moved into the feasibility analysis and cost-benefit analysis of

project selection. This is the company-wide training initiative to be
implemented for all managers to understand the specifications and
features of the e-Banking Portal. The intent of the training is to
ensure that the members of the management team understand the
scope, time, and costs when managing their respective functions in
creating the e-Banking Portal. The program will include specific
technology training in the use of a software application that GCCG
is developing so that managers can create, manage, and track
their respective banking transactions. Currently, only 10 percent of
the managers are using the software. What are the benefits
associated with this project?
A: The benefits include: 1. Consistency can be maintained across all transactions. 2.
Managers at all levels can identify what is involved in managing high-level transactions. 3.
The company's strategic objective can be reinforced before software implementation.
ACTIVITY 2-2: Preparing a Project SOW
1. What has been your experience with creating a project SOW?

A: Answers will vary depending on students' experience as a project manager.
2. What is the first logical step in preparing this project SOW?

○ Providing a description of the project completion criteria.
◉ Verifying if you should use the standard GCCG SOW format.
○ Listing every person or work group that will perform actual work on the project.
○ Presenting the information in a logical sequence.
3. Based on the scenario, which components should be included in
the SOW? Select all that apply.
☑ A clear description of what is required for the e-Banking Portal project.
☑ The specifications as to how the e-Banking Portal project will be produced and
methods for ensuring that the specifications have been met.
☐ A detailed breakdown of all deliverables that will be required to complete the project.
☑ A list of the human resources or work groups that will perform actual work for the
project.
☑ The estimated date of completion of the project deliverables.
4. Yes or No? Based on the scenario, do you think that it will be
necessary for GCCG to create an additional external SOW for this
e-Banking Portal project?
☐ Yes
☑ No
Solutions
ACTIVITY 2-3: Creating a Project Charter
1. What is a project charter?

A: A project charter is a document that formally recognizes a project's existence and authorizes the
project manager to undertake the project.
3. What are some items that belong in the project charter?

A: Answers include the project name, the authority level of the project manager, the sponsor signature,
and possibly the scope. However, a detailed budget or Work Breakdown Structure is not expected at
this time.
4. What are the goals and objectives of this project?

A: Answers will vary, but may include: to develop a new consumer portal that will integrate all banking-
related services through a single sign-on feature to the customers of the bank.
5. What is the project's impact to the organization?

A: Answers will vary, but may include: the new portal will improve customer satisfaction and increase
the credibility, reliability, and revenue of the bank.
6. Are there any assumptions that you will include? If so, describe them.
A: Answers will vary, but may include: because this is a new foray of integrating banking services in the
e-Banking Portal, the company will expect the technology and technical skills required for this
integration to be made available for project execution. Suitable subject matter experts will be made
available for the integration of the banking services. Required hardware and software will be procured
before required by the project schedule. The requisite project team will be recruited prior to the time the
team members are needed to perform their activities.
7. Based on what you know at this point, how will you describe the primary
deliverable for this project?
A: Answers will vary, but may include: effective implementation and running of the e-Banking Portal is
the major deliverable of this project.
8. At this time, what are the constraints that should be noted in the project
charter?
A: The project must be completed on or before April 30, and within the $1 million budget.
ACTIVITY 2-4: Identifying Project Stakeholders
1. How will you establish the total list of project stakeholders for the GCCG e-
A: Answers will vary, but may include: study the input documents, such as the project charter and the
stakeholder register, to identify the potential stakeholders of the project. The objectives, business need,
assumptions, and project description mentioned in the project charter are understood from the
perspective of the contributors in the organization. A discussion with the project sponsor will be of great
help. Document this information along with details of impact and support that these stakeholders will
have on the project.
Solutions
2. True or False? Members of the GCCG e-Banking Portal project

team are considered to be stakeholders.
☑ True
☐ False
3. How will you identify the positive and negative stakeholders of the
project?
A: Answers will vary, but may include: you can perform stakeholder analysis to identify all
potential stakeholders, analyze their potential impact or support to the project, assess
how each stakeholder is likely to positively or negatively react or respond to various
situations during the project life cycle, and create a stakeholder analysis matrix. This will
result in creating and documenting a stakeholder management strategy for the project.
4. Which statements are true of the stakeholder management

strategy? Select all that apply.
☑ Identifies key stakeholders who can impact the project.
☑ Describes the level of participation for each identified stakeholder in the project.
☐ Describes the government and industry standards to be applied to stakeholder
management.
☑ Identifies the stakeholder groups and their management.
5. How will you establish levels of stakeholders based on their

interest in the project and the impact they can have on the project?
A: Answers will vary, but may include: you can perform stakeholder analysis to identify
the various levels of stakeholders, use interviews to gain insight into their interest in the
project, assess their support and impact on the project, and categorize these
stakeholders into various levels based on their interest and their impact on the project.
You can later document this and create a stakeholder matrix.
6. What parameters are considered while analyzing project

stakeholders?
A: Answers may include: you will document information relating to stakeholders'
identification, their assessment, and their classification in the stakeholder register. This
information could include the stakeholder name, primary role or designation, their interest
or objective, their influence, the communication strategy and mode, and the artifacts or
documents required for these stakeholders.
Mastery Builder 2-1: Reviewing Project Initiation
1. Choose the component that should always be included in the

project charter.
○ A breakdown of the functions and activities to be performed on the project.
◉ A statement of project goals via a project SOW and authorization of the project
manager to use organizational resources on the project.
○ A list of the project stakeholders and their areas of responsibilities.
○ A schedule of project activities.
Solutions
2. True or False? An effective SOW helps internal resources and potential

sellers to evaluate their capability to perform the work specified.
☑ True
☐ False
3. Which reasons are important for a project charter to be signed by a highly

placed person in the organization? Select all that apply.
☑ To indicate the relative importance and priority of the project within the organization.
☑ To provide authority for the project manager to cross functional boundaries when carrying out
project plans and activities.
☐ To provide a signed document, which indicates that the project team members can start work on
the project.
☑ To provide greater credibility with people outside the project who may be asked to contribute
resources or join the project team.
4. Which option documents an approach to increase the support and minimize

negative impacts of stakeholders throughout the project life cycle?
○ Stakeholder analysis
○ Stakeholder communications planning
○ Risk management planning
◉ Stakeholder management strategy
5. What information will a SOW contain? Select all that apply.

☑ It describes the products or services that the project will supply.
☑ It defines the business need that it is designed to meet.
☐ It defines the functionality that a project is designed to accommodate.
☑ It specifies the work that will be done during the project.
6. Which statement about stakeholder management strategy is true?

○ It is the process of identifying all the stakeholders of a project.
◉ It is created by the project manager when identifying stakeholders.
○ It classifies stakeholders based on their potential impact or support on the project.
○ It is a document that describes the company's marketing needs and request for proposals.
7. Which component of the project charter specifies what the project will
produce?
○ Project objectives
◉ Scope definition
○ Project description
○ Project deliverables
Solutions
ACTIVITY 3-1: Identifying Elements of Project

Management Plans
1. Which of the following are included in the initiating and planning

phases (process groups) of a project? Select all that apply.
☑ See the problem clearly.
☐ Build project teams.
☑ Assess risks.
☑ Translate business requirements into functional and technical specifications.
2. Reflecting on your project management experience, what types of

project management plans have you worked with or created?
A: Answers will vary depending on students' experience. Project management plans can
range from an informal, minimal information provided document to a formal, thorough,
and detailed document.
4. Based on the Project Management Plan, identify the elements that

your organization requires for a project management plan.
A: Answers will vary, but may include: the project overview, scope, project deliverables,
WBS, external and internal stakeholders, project constraints, project risks, change
control, and budget.
5. Which plan deals with the closure of contracts?

◉ The procurement management plan
○ The communications management plan
6. Which plan details how a project will be executed to achieve its

objectives?
◉ The project management plan
○ The schedule management plan
7. True or False? The human resource plan is a subsidiary to the

staffing management plan.
☐ True
☑ False
Solutions
ACTIVITY 3-2: Determining Stakeholder Needs
2. As you review the Requirements Document, which project documents could

you have used as a basis for preparing it?
A: You can use the project charter and your notes from discussions with stakeholders given in the
scenario as a basis for the requirements documentation.
3. Based on the scenario and the list of requirements, who might be the internal
stakeholders for the e-Banking Portal project?
A: Answers might include specific personnel in the Legal, Administration, and IT Infrastructure
departments.
4. Which is the method that is used to identify requirements by studying the

individuals in their work environment or while using the product?
○ Surveys
◉ Observations
○ The Delphi technique
5. For the GCCG e-Banking Portal project, which of these techniques could you
initially use to identify the requirements of the stakeholders? Select all that
apply.
☑ Interviews
☑ Focus groups
☑ Facilitated workshops
☐ Prototypes
6. In which output document will you store the guidelines on requirements

prioritization along with product-related metrics for the GCCG e-Banking
Portal project?
○ The RTM
◉ The requirements management plan
○ The idea or mind map
ACTIVITY 3-3: Creating a Scope Statement
2. Looking at the scope statement template, which documents can you use as a
resource when you're creating the scope statement?
A: Both the requirements documentation and the project charter can be used as a basis for your scope
statement. Any business case, relevant meeting notes, and other project-related documents might also
be used as resources.
Solutions
3. Which of the following are included in a scope statement?

☑ Project justification
☐ Cost analysis
☑ Success criteria
☑ Deliverables
☐ Change control processes
6. What changes or events would force you to modify the Project

Scope Statement? Select all that apply.
☑ A new requirement that the user could open a new account from the portal.
☐ The replacement of the project manager, who left the company.
☑ The ability of a customer to print a copy of his last five banking transactions.
☑ A delay in the completion target date of the project.
Mastery Builder 3-1: Reviewing Project Strategy
1. What is the purpose of scope definition?

○ Creates an overall strategy for approaching the project.
○ Defines the tasks that are included in a project and the tasks that are not included.
◉ Provides an understanding of the project’s major objectives by identifying what is
within the scope and what is currently out of the scope.
○ Defines the quality parameters affecting project procurements.
2. Which component is a graphical representation of the deliverables

included in the project?
○ The Requirements Document
◉ The Work Breakdown Structure
○ The Organizational Breakdown Structure
○ The Project Schedule
3. Which elements are included in a project scope statement? Select

all that apply.
☐ Detailed project risks
☑ Project justification and deliverables
☑ Project description and objectives
☐ Schedule and costs for the project
4. Which technique involves decision-making methods such as

unanimity, majority, plurality, and dictatorship?
◉ Group decision-making techniques
○ Interviews
○ Questionnaires and surveys
Solutions
ACTIVITY 4-1: Developing a WBS
1. When creating the WBS for the e-Banking Portal, what types of reference
materials and other inputs could you use?
A: You can refer to the requirements documentation, project charter, project SOW, and project scope
statement. You should also determine if there is an existing WBS template that can be used.
3. Based on the scenario, which WBS in Group 1 of the GCCG e-Banking Portal
WBS document is the correct one for this project?
○ WBS A
◉ WBS B
○ WBS C
○ WBS D
4. Explain your answer to the previous question.

A: All of the deliverables need to appear on the same level. In Group 1, WBS B places all the
deliverables on the same level.
5. As the project manager, you are asked to decompose the WBS deliverables.
Which activity will you perform during decomposition?
○ Assign unique ID numbers to each deliverable.
◉ Break the deliverables down into smaller components.
○ Arrange the deliverables into categories, based on risk.
○ Organize the deliverables, based on which project team is responsible for their completion.
6. The scenario shows two deliverables that have been partially decomposed
during a recent meeting. Which of these activities are decomposed? Select all
that apply.
☑ Assemble IT Software Development Team
☐ Identify Resources
☐ Software Development
☑ Deliverables Management
7. In Group 2, which WBS represents all the appropriate project activities,

including the decomposed deliverables?
○ WBS A
◉ WBS B
○ WBS C
○ WBS D
8. Explain your answer for Question 7.

A: The decomposed deliverables are correctly displayed in both options B and C; however, option B is
correct because it includes the project name while option C does not.
Solutions
ACTIVITY 4-2: Creating an Activity List
1. The first step in creating an activity list is to refer to appropriate

documents. Which items will be helpful in creating your list? Select
all that apply.
☑ The WBS
☑ The scope statement
☑ Activity lists from similar projects
ACTIVITY 4-3: Identifying the Relationships Between

Activities
1. During a recent meeting with your team, a decision was made to

add five days between Technical Planning and Technical
Supervision due to other commitments that some members of the
team need to address in other projects. Will this be a lag or lead
relationship that you should account for? Please explain.
A: Due to the team members' commitments elsewhere, the additional 5 days will cause a
delay, or lag, between the activities.
3. In the GCCG Activity List, which of the following activities are

summary activities? Select all that apply.
☑ Business Requirements Definition
☐ Document Business Requirements
☑ Technical Planning
☐ Conduct Analysis and Review
4. In the GCCG Activity List, what does the data in cell C6 indicate?
A: The "FS" notation in C6 means that the "Create technical plan" activity (TRN001.1.1)
must finish before the "Estimate resources" activity (TRN001.1.2) can start.
5. In cell C10, how do you interpret TRN001.1 FS + 5 Days?

A: Before the "Analyze technical requirements" activity (TRN00.1.2.1) can start, its
predecessor activity of "Technical Planning" (TRN001.1) must finish and 5 days must
elapse.
6. In the GCCG Activity List, what does the SS dependency for the
Conduct meetings activity indicate?
A: The "Conduct meetings" activity (TRN001.4.1) can start when its predecessor activity
of "Business Requirements Definition" (TRN001.3) has started.
Solutions
ACTIVITY 4-4: Identifying Project Resources
1. What are some additional factors that you will consider when identifying the
resources to fill the identified roles?
A: Answers will vary, but may include: willingness and interest, resource availability, reporting structure,
experience, and costs.
2. What are some things that you will consider when determining the external
consultants and technical experts?
A: Answers will vary, but may include: GCCG's organizational policies that could affect resource
acquisition and usage, availability, industry expertise, travel distance, and costs.
3. As the project manager, what factors will you consider to make a decision on
whether to outsource graphic designing?
A: Answers will vary, but may include: verifying the project scope statement and considering resource
availability, resource experience, costs, and time for development.
4. What other types of resources, other than people, will you list for the e-
A: Answers will vary, but may include: availability of required infrastructure to accommodate the project
team, materials and necessary equipment, such as computers, and necessary software.
ACTIVITY 4-5: Estimating Time
1. For the summary activity, Technical Supervision, the team members

explained that, based on typical levels of resource availability and past
experience, they will need two weeks to complete analyzing the technical
requirements. When asked how many hours they expected to work, they
responded with 12 hours. Based on their response to this question, what will
the elapsed time be for this activity?
○ 12 hours
○ 40 hours
◉ Two weeks
○ A day and a half
2. When the team members determined how long they thought it would take to
complete the summary activity, what type of duration estimating technique
were they probably using?
◉ Analogous estimating
○ Three-point estimating
○ Reserve analysis
4. In which activities does the PMO need to be involved?

A: The PMO is involved when plans need to be authorized.
Solutions
5. What is the duration assigned to the activity named "Create

technical plan"?
A: 10 days.
6. Given the duration required for the first two activities, "Create the
technical plan" and "Estimate resources," what is the duration to
complete these two activities?
○ 6 days
○ 8 days
○ 12 days
◉ 14 days
7. What is the total duration for the summary activity, Business

Requirements Definition? Why?
A: The total duration is 8 days because you need to add up the durations of the four
activities that are involved, 4 + 2 + 1 + 1 = 8. All of the activities in this summary activity
are related in a Finish-to-Start relationship, so the total duration is calculated by adding
the individual durations.
8. Looking at the assigned resources for each activity, are you alerted
to any potential problems?
A: Because many of the same resources are assigned to each activity, you need to stay
on top of any potential resource availability conflicts.
9. Do you find it helpful to have milestones represented with zero

duration in the activity list? Why or why not?
A: Answers will vary, but may include: yes, it is helpful, because a zero duration activity
will immediately indicate a milestone. A milestone indicates a significant event. It should
be tracked for completion.
Mastery Builder 4-1: Reviewing Project Schedule

Development
1. Activity A has an SS precedence relationship with Activity B;

further, Activity B has a two-day lag. If A's duration is eight days,
and B's duration is five days, what is the total amount of time it
should take to complete both A and B?
○ 13 days
○ 15 days
○ 5 days
◉ 8 days
Solutions
2. Which estimating method requires managers to use their experience,

historical information from similar projects, and expert judgment to determine
total project cost or a time estimate?
◉ Analogous or top-down estimating
○ Bottom-up estimating
○ Revenue estimating
3. What will be the outcome in an FS precedence relationship with a one-day

lead?
○ The precedent activity can start one day before the subsequent activity starts.
◉ The subsequent activity can start one day before the precedent activity is completed.
○ The subsequent activity cannot start until one day after the precedent activity finishes.
○ The subsequent activity must start within one day of when the precedent activity starts.
4. Which is an example of an FS interactivity relationship?

◉ Activity B can't start until Activity A is complete.
○ Activity B can't finish until Activity A is complete.
○ Activity B can't finish until Activity A starts.
○ Activity B can't start until Activity A starts.
5. Activity A has an FF precedence relationship with Activity B. If A's duration is

two days and B's duration is eight days, what is the shortest total duration for
completing both A and B?
○ 10 days
◉ 8 days
○ 12 days
○ 6 days
6. Activity A has an SS precedence relationship with Activity B, which has a four-

day lag. If A's duration is two days and B's duration is 12 days, what is the
total amount of time it will take to complete both A and B?
○ 12 days
○ 18 days
○ 14 days
◉ 16 days
7. Which task is related to the process of estimating activity resources?

◉ Estimating the type and number of resources required to complete activities.
○ Developing cost estimates for each resource required for project work.
○ Apportioning resource cost estimates across all work packages.
○ Documenting product requirements and identifying potential sources.
Solutions
8. Choose the statements that are true of bottom-up estimating.

☐ It is used when enough historical information is present.
☑ The most accurate estimating method.
☑ The most challenging estimating method.
☑ The most costly and time-consuming estimating method.
9. When a lead occurs in an activity, what is its effect upon other

activities?
◉ It accelerates a successor task.
○ It delays a successor task.
○ It delays a predecessor task.
○ It accelerates a predecessor task.
10.What are the reasons that deliverables should be broken down into
work packages during the development of the WBS? Select all that
apply.
☐ In order to define the scope of the project.
☑ In order to make the activities easier to manage.
☑ In order to make costing easier.
☑ In order to create activities that can be assigned to a single organizational unit.
11.What do you find at the lowest level of a WBS?

○ Tasks
○ Sub-tasks
◉ Work packages
○ Cost accounts
ACTIVITY 5-1: Developing a Project Schedule
1. What documents should you have before developing the project

schedule?
A: Documents that would be useful to gather include resource calendars, the project
scope statement, specific milestone dates that must be met, and the activity list with
durations.
ACTIVITY 5-2: Identifying the Critical Path
2. What is the EF for activity 1.1.1?

A: The EF is 10. The EF for the first activity is the same as its duration.
7. Which activities have total float greater than zero?

A: The activities, TRN001.3.1, 1.3.2, 1.3.3, and 1.3.4 have 16 days of total float.
Solutions
8. What is the critical path?

A: All activities with a total float of zero are on the critical path. It is 85 days.
ACTIVITY 5-3: Crashing a Project Schedule
1. Using the following table, which activity has the highest crash cost per week?
Which has the lowest?
A: Activity A has the highest crash cost per week ($6,000 per week). D has the lowest ($250 per week).
2. Which activities are on the critical path for this project?

A: Activities A, B, C, F, and G are on the critical path.
3. What is the project duration under normal conditions?

A: Project duration is 50 weeks under normal conditions.
4. Which activities are the best candidates for crashing and in what sequence?
A: Consider crashing in the sequence G, B, F, C, and then A. G or B will compress the schedule by 2
weeks, at a cost of $1,000 per week; F will compress the schedule by 7 weeks, at a cost of $2,000 per
week; C will compress the schedule by 1 week, at a cost of $2,000 per week; and A will compress the
schedule by 3 weeks, at a cost of $6,000 per week. Carefully examine any possible crashing because
another network path may emerge as the critical path.
5. Which activity is the best candidate for crashing? Why?

A: Activity B or Activity G. This is because the best candidates are those with the flattest slope, meaning
they incur the least cost per incremental unit of time saved.
6. If you crashed all the activities identified on the original critical path, what will
happen to the duration for that network path?
A: It will go from 50 weeks (normal) to 35 weeks (10 + 4 + 5 + 13 + 3), a net decrease of 15 weeks.
7. If you crashed all activities identified on the original critical path, what will
happen to the total project cost?
A: The total project cost will increase from $92,000 to $130,000.
Solutions
8. What will happen to the total project cost if you decided to crash
every activity in the project?
A: Total project cost will increase to $137,000 (43,000 + 4,000 + 5,000 + 4,000 + 9,000 +
64,000 + 8,000).
9. What other factors will you need to consider when deciding

whether to crash this schedule?
A: Answers will vary, but may include: consider resource allocation under normal and
crash conditions. Also, consider the possible quality and risk implications of compressing
the duration of each of those activities.
10.What should you do if the normal time and crash time for an activity
are the same?
A: Nothing. You can't crash that activity.
ACTIVITY 5-4: Creating a Schedule Baseline
1. What should be done before establishing the schedule baseline?

○ Distribute the stakeholder register templates to the project management team for
approval.
◉ Distribute the project management plan to the appropriate stakeholders and project
management team for an in-depth review, and after revising, obtain approval by the
project sponsor.
○ Distribute the procurement documents to the appropriate stakeholders and project
team for approval.
○ Distribute the project charter to the appropriate stakeholders and project
management team for approval.
2. How will you describe the difference between the draft schedule
and the schedule baseline?
A: Answers will vary, but may include: the draft schedule evolves through the planning
cycle. However, once the draft schedule is committed to by the project stakeholders, the
scheduled activities' start and finish dates, duration, and calculated work are set in the
schedule baseline data, which can be used as a comparison once the project is
underway. The variance between the current schedule and the baseline schedule is
tracked and used for controlling the project.
3. Which tasks will you be able to do once the schedule baseline has
been established and project execution has begun? Select all that
apply.
☑ You will be able to determine the variance for an individual activity's duration.
☑ You will be able to determine a variance in the start and finish dates for the project.
☐ You will be able to determine if resources are overly allocated.
☑ You will be able to determine if the amount of scheduled work for each work
package has changed.
Solutions
4. True or False? When the schedule baseline is first saved, the schedule
variance for each activity should be equal to zero.
☑ True
☐ False
Mastery Builder 5-1: Reviewing Project Schedule Development
1. Which statements are true of the critical path? Select all that apply.
☐ It is used to analyze the schedule model.
☐ It shows the shortest amount of time required for completing the project.
☑ It is the longest path through the network.
☑ It always has zero amount of total float.
2. What are the two schedule compression techniques—fast-tracking and

crashing—used for?
○ Estimating activity duration
◉ Shortening total project schedule duration
○ Planning activity sequence
○ Developing an activity schedule
3. In a PDM network, which formula will you use to calculate the slack for an
activity?
○ Earliest start date minus the earliest finish date for that activity.
◉ Latest time when the event can start minus the earliest time when the event can start.
○ Earliest time when the event can start minus the latest time when the event can finish.
○ Total project duration minus total duration on the critical path.
4. Choose the appropriate task a project manager needs to perform when

leveling resources on a project.
○ Extending the finish date.
○ Adding resources.
○ Discussing a change in the project scope with the stakeholders.
◉ Manually determining where to adjust resources.
5. What is total float?

○ The amount of time that an activity can be delayed from its EF without delaying the finish date of
the consecutive activities.
○ The amount of time that an activity can be delayed without delaying the ES of the activities that
immediately follow it.
◉ The amount of time on a critical network path that an activity can be delayed without delaying the
completion date of the project.
○ The amount of float on any network path.
Solutions
6. Which technique involves overlapping project activities to shorten

project duration?
◉ Fast-tracking
○ Risk conversion
○ Synchronous manufacturing
○ Parallel management
7. When crashing an activity, which task should the project team

focus on?
○ Accelerating the performance of as many tasks as possible.
◉ Accelerating the performance of those tasks on the critical path.
○ Accelerating the performance by minimizing costs.
○ Accelerating the performance of noncritical tasks.
8. Which element is drawn from the schedule network analysis and

includes baseline start and finish dates?
○ The WBS package
○ Summary activities
○ The activity list
◉ The schedule baseline
ACTIVITY 6-1: Estimating Project Costs
1. Which estimating technique was used to come up with the

allocation of $62,000 to the Media Campaign deliverable? Why?
A: Analogous estimating was used to come up with $62,000 because you used historical
information based on similar previous projects to allocate a portion of the $100 million
total project budget (top-down).
2. How will you describe the level of accuracy for the $62,000
estimate?
A: Because GCCG Bank is very much like any other bank, it may have originated as an
appropriation, in which case, budgetary estimation may have been used with an accuracy
of -10 percent to +25 percent. It could also have been an approximate estimate because
it lacks the detail required for high accuracy, with an accuracy of ±15 percent.
3. What was the impact of involving the work package owners in

preparing the cost estimates? Why?
A: The work package owners are closest to the work and have a better understanding of
the work, so their cost estimates can be expected to be more accurate.
4. Which estimating technique was used when you asked the work
package owners for their estimates?
A: Bottom-up estimating was used because they're closest to the work and know the
activities.
Solutions
6. What is the estimated cost of the Conduct Planning Meetings activity?

A: The four 2-hour planning meetings involving 15 in-house people at $80 an hour will cost $9,600 (4 x
2 x 15 x 80), and the two catered lunches for the 15 people at $15 per person will cost a total of $450 (2
x 15 x 15). Therefore, the total cost of the Conduct Planning Meetings activity is $10,050.
7. What technique did you use to estimate the Conduct Planning Meeting
activity? Why is this technique beneficial?
A: Parametric modeling was used to estimate the Conduct Planning Meetings activity. This technique is
reliable and can provide a high-level of accuracy. However, the information that forms the parameters
must be accurate, quantifiable, and scalable.
8. Which estimating technique is used in the Arrange Staffing activity?

A: The Arrange Staffing activity uses analogous estimating for air travel and parametric modeling for the
other costs.
9. Using the information in the Public Meeting Estimate document, estimate the
cost of each of the activities.
A: The breakdown is: 1.1.4.2.1: $10,050; 1.1.4.2.2: $4,950 to $5,540; 1.1.4.2.3: $6,700; 1.1.4.2.4:
$7,800 to $8,300; and 1.1.4.2.5: $3,000.
10.What is your total cost estimate for the Public Meeting work package?
A: The total cost estimate should be $32,500 to $33,590.
11.What is the degree of certainty of your cost estimate now?

A: You now have a definitive (control or detailed) estimate that has an accuracy of ±5% to ±10%.
12.Do you need to take any action regarding your preliminary estimate of
$62,000 for the Media Campaign deliverable? If so, what action should you
take?
A: Because a more accurate estimate for the public meeting exceeds the initial assumption of $30,000,
your overall estimate is more than $62,000, so you need to take some action. You can adjust your
earlier estimate and try to reconcile the deficit with one of the other major deliverables; you can work
with the work package owners of the media campaign deliverable to try to get the costs down to below
$62,000; or you can go back for more funding.
ACTIVITY 6-2: Estimating the Cost Baseline
1. Do you have all the necessary inputs to establish a cost baseline?

A: Yes, you have the WBS with cost codes assigned, the project schedule with at least start and finish
dates for each activity, and the cost estimates.
2. What cost assignment method will you choose to allocate funds? Why?
A: Answers will vary, but may include: the Percentage Complete rule because the milestones are clearly
defined and can be easily reported on.
Solutions
3. What are the weekly cost estimates for the activities in the Public
Meeting work package? Use the following table to estimate the
costs per week, rounding to the nearest thousand.
A: The allocation of costs will look similar to the table in the corresponding overhead.
5. Will you include a contingency amount?

A: No, because this is a relatively low-risk work package.
6. How will you plot the estimates to create an S-curve? Use the
graph to plot your results. Cost (in terms of thousands) is plotted on
the Y-axis and time (in terms of weeks) on the X-axis.
A: Based on how the costs were allocated, the answers will look similar to the graph in
the corresponding overhead, which plots the S-curve based on the previous Completed
Costs Per Week table.
Solutions
ACTIVITY 6-3: Reconciling Funding and Costs
1. The project scope statement specifies a specific number of ads to be placed

in the newspaper in the weeks leading up to the banks' grand opening. You
checked the cost of ad space and you know that the sponsors' requirements
will exceed the funding commitment. How will you proceed?
A: Answers will vary, but may include that you can approach the sponsor with a cost breakdown for the
ad placement and suggest placing fewer ads in leading newspaper journals instead of all the papers.
Come up with solutions such as spend less per ad, place smaller ads, and approach the advertising
agency about cost savings. You may also consult with an SME, such as someone in the marketing
department, who can speak directly to the sponsor in this matter.
2. Assume that you have no background in advertising or marketing. How can

you go about generating alternative ideas regarding less expensive
advertising options so that you can deliver the desired results within the
budget?
A: Answers will vary, but may include that you could consult your company's public relations department
for suggestions of cost saving efforts. You may consider implementing a partnership with a local
university by offering a marketing internship program to university students, thereby gaining extra help
at little or no additional cost.
3. You need to partner formally with your company's financial decision makers
regarding the costs of this project. Given the above scenario, what steps will
you take to further this goal?
A: Answers will vary, but may include that you could ask your financial decision makers for a meeting,
bring documentation regarding advertising costs and the budget, and ask for their help in identifying
additional sources of revenue. It is possible that they may choose to increase the funding commitment.
However, keep in mind that the forecasted cost variance should be a guideline for how elaborate an
escalation should be.
4. The advertising agency that has been contracted to produce the ads for the
GCCG Seattle bank's grand opening has unexpectedly gone over budget.
You receive an invoice that exceeds their original estimate. How will you
proceed?
A: Answers will vary, but may include: 1. You can meet with the agency to determine why they went
over budget and whether they did anything that was beyond the scope that had been agreed to. 2. You
can ask the advertising agency to work with you to identify savings elsewhere, such as a discount on
future work so that you can recoup some of your losses. 3. You can alert the sponsor regarding the cost
overrun so that changes can be made to the scope of the project.
Mastery Builder 6-1: Reviewing Project Costs
1. Identify the sources from where you can obtain cost estimate information.
☑ Trade organizations, vendors, and suppliers
☑ Past project experience and current project team members
☐ The project schedule
☑ Commercial databases
Solutions
2. What should be included in a project cost baseline? Select all that

apply.
☑ Estimates of the most likely project costs
☐ Management reserves
☐ Unforeseen expenditures for the project
☑ Assumptions for the estimates
3. What step will a project manager take to help prevent cash flow
problems?
○ Use the contingency reserves of other projects.
◉ Make efforts to engage the finance department to put in place a cash flow forecast.
○ Make sure that customers are financially stable.
○ Request additional funding from project sponsors.
4. Which inputs will you use to determine the project budget?

○ Activity cost estimates, resource calendars, funding limit reconciliation, and cost
aggregation
○ Basis of estimates, the scope baseline, resource calendars, and reserve analysis
◉ Activity cost estimates, the scope baseline, the project schedule, and contracts
○ Activity cost estimates, the scope baseline, the project schedule, and the cost
performance baseline
5. Which guidelines allow you as the project manager to reconcile the

costs with the funding that has been approved by the sponsor?
☑ Map the project budget, scope statement, and schedule to the funding available.
☑ Involve the project sponsor.
☐ Consider adding in a contingency amount to accommodate the risk of incurring extra
expenses.
☑ Partner formally with the company's financial decision makers.
ACTIVITY 7-1: Creating a Human Resource Plan
1. Which will be the logical first step in creating the human resource
plan?
○ Creating a RAM to document the roles and responsibilities for key project
stakeholders.
○ Creating an organization chart to organize the team members into a hierarchy.
○ Considering the competencies of expected staff members and how they affect the
project's reporting relationships or roles and responsibility assignments.
◉ Examining the staffing requirements of the project.
Solutions
2. After examining the staffing requirements of the project, your next step is to
list possible constraints that will affect the organizational planning. Which
options will you include as constraints for this project? Select all that apply.
☐ The project includes resources from several buildings.
☑ The project includes resources from outside the organization.
☑ The project requires resources that are assigned to another project that may not be released.
☑ The project includes some resources that are new hires.
3. After documenting project roles and reporting relationships, what are the key
documents you will create and distribute to project team members? Select all
that apply.
☐ Project charter
☑ RAM
☑ Organization chart
☐ Company quality policy
4. What are the main elements of the human resource plan? Select all that
apply.
☑ Roles and responsibilities
☑ The project organization chart
☑ The staffing management plan
ACTIVITY 7-2: Creating a Quality Management Plan
1. Which documents will you use to create a quality management plan? Select
all that apply.
☑ The stakeholder register
☑ The project scope statement
☐ The process improvement plan
☑ The project management plan
2. Which tool can be used to analyze and communicate the variability of the
performance of the database management system?
○ Benchmarks
◉ Control charts
○ Flowcharts
○ Checklists
Solutions
3. What will you use for quality planning as you compare vendors for
the database portion of the e-Banking Portal project?
◉ Benchmarking
○ The product description
○ Environmental factors and legislation
4. How do standards and regulations factor into the database

creation?
A: When creating the databases, the vendors will need to comply with the policies,
procedures, and standards set by your organization.
5. What are the quality factors that are relevant to this effort?
A: Answers might include whether the database is based upon the latest versions of the
policies, procedures, and standards; an independent verification that the output created
by the database is correct; and whether any changes to the database have been
documented and approved in accordance with the project's change management plan.
6. What are some good tools to consider for the process

implementation?
A: Answers might include checklists, flowcharts, and cause-and-effect diagrams.
Mastery Builder 7-1: Reviewing Human Resources and

Quality
1. Which tool is consistently used to document the roles and

responsibilities of a project?
○ The role administration matrix
◉ The responsibility assignment matrix
○ The responsibility and role hierarchy
2. Which document shows the reporting structure within the project

and its relationship to the parent organization?
○ The resource staffing histogram
◉ The organization chart
3. On which concept is “total quality management” based?

◉ Quality is an ongoing process rather than a one-time event.
○ Quality standards should be established universally in every industry.
○ Quality issues should be supervised and controlled by a quality management team.
○ Quality planning is the most integral part of the quality system.
Solutions
4. What is quality planning?

◉ The process of identifying the quality standards that can be applied to the project and determining
how to meet those standards.
○ The process of evaluating quality results and planning improvement strategies.
○ The process of systematically evaluating project quality.
○ The process of establishing a communications plan between stakeholders and work package
owners for quality updates.
5. What are the uses of project benchmarking? Select all that apply.
☑ Compare project practices to those of other projects to develop performance measurements.
☐ Identify potential problems and possible effects for those problems.
☐ Determine marketing costs associated with a specific product.
☑ Determine which product or services to offer and what features to include.
6. Which tasks are included in the cost of quality? Select all that apply.
☑ Cost of quality planning
☐ Cost of preventing conformance
☑ Cost of rework
☑ Cost of monitoring non-conformance
7. Which statements are true about formal project recognition and rewards?
☐ Documented in the communications management plan.
☑ Documented in the human resource management plan.
☑ Perceived by project team members as being tied to performance.
☐ Addressed only at the end of the project.
8. At what points in the project should the quality audits or inspections take
place? Select all that apply.
☑ At the end of every process cycle.
☐ When each project activity starts.
☑ At random intervals within a process cycle.
☑ At random intervals over the course of the project.
9. Why is the cost of quality used during quality assurance?

◉ To determine the most effective approach when considering prevention, inspection, and repair of
processes.
○ To determine if the cost of the product will meet budget requirements.
○ To persuade management to invest in quality product methods.
○ To assess the cost of implementing quality improvements.
10.Which task is an example of cost of non-conformance?

○ Training
○ Product design
○ Planning
◉ Rework
Solutions
11.Which tool is used to verify if the steps in a process are being

followed?
◉ Checklist
○ Trend analysis
○ Inspection
○ Performance review
12.Choose the factors to be considered when analyzing project trade-

offs among cost, time, and quality, where cost must be controlled in
order to meet the cost baseline. Select all that apply.
☐ The impact on quality only.
☑ The impact on schedule and quality.
☑ The impact of additional risk that may be introduced.
☐ The impact on schedule and scope.
ACTIVITY 8-1: Identifying Effective Communication

Methods
1. What are the three major components of the standard

communications model?
◉ Sender, receiver, and message.
○ Sender, medium, and receiver.
○ Encoding, decoding, and message.
2. During the project kickoff meeting, you want to make sure that the
information you present is understood by the people in attendance.
Which communication method should you employ?
◉ Interactive
○ Push
○ Pull
3. In the GCCG project, what cultural factors might influence how you
choose to communicate with stakeholders?
A: Answers will vary, but might include different languages and the need to be sensitive to
others. Even when speaking the same language, others might literally interpret
someone's words rather than the intent of the message.
Solutions
4. When communicating with the project team that is located in multiple

locations, and maybe even different time zones, how do you determine which
communication method will be the most effective?
A: You need to evaluate the specific situation that is requiring communication and determine whether
being face-to-face is critical or not. For status updates or communicating relatively standard information,
sending an email might be the most effective. However, if you need to break bad news to the project
team, you will definitely benefit from being able to see, and possibly handle, their reactions firsthand.
This might need to be done in a virtual meeting, but a meeting nonetheless. Also, using a public forum
to share good news can also be a motivating factor for team members.
ACTIVITY 8-2: Creating a Communications Management Plan
1. What is the best description of a communication requirements analysis?

○ Your decision of what information will be important to the stakeholders, based upon other projects
you have managed.
◉ An understanding of the communications needs of each stakeholder.
○ The results of a meeting between you and the project sponsor, where the two of you have decided
what information should be shared with the stakeholders.
2. Which item should you use to determine the communication needs of all
project stakeholders?
○ Research material
◉ Stakeholder analysis data
○ Project report deadlines
○ Executive board schedule
3. Given the scenario, which technology can be used for enhancing team
member interactions and building relationships through the life of the project?
○ The team building event at project kick-off.
○ The project team threaded discussion board.
○ Using email and databases to collect and store information.
◉ High-quality virtual teleconferencing on a semiweekly or weekly basis.
4. Given the scenario, what will be a good primary communication technology

for exchanging project information?
◉ Phone exchange with email confirmation
○ Weekly face-to-face meetings
○ Voice mail
○ Video conferencing
5. After integrating the communications management plan in the overall project

plan, what will be the next logical step?
○ Determining whether there will be changes to the proposed technology before the project is over.
○ Creating a schedule for the production of each type of communication.
◉ Distributing the plan to all the stakeholders.
○ Creating a description of stakeholder communication requirements.
Solutions
Mastery Builder 8-1: Reviewing Communication

During a Project
1. The communications management plan is the most important

portion of the project management plan for managing stakeholders.
Why?
○ It keeps the stakeholders involved with day-to-day management of the project.
◉ It helps the project manager to understand stakeholder expectations for project
communication.
○ It gets stakeholders involved in the planning process.
○ It helps identify all the stakeholder needs and objectives for the project.
2. Which project factor is likely to prevent effective performance of the

communications plan?
○ The virtual team will use the company intranet to transmit documents.
◉ All client company meeting time has been set to no more than 30 minutes a week for
each employee.
○ The customer wants its technical manager to review project data monthly.
○ The team is co-located in a trailer behind the main plant.
3. A team has 20 people on it. How many potential communication

channels exist on this team?
○ 19
◉ 190
○ 20
○ 380
4. Which is true of using project intranets and home pages for

communication?
○ Limited because only large organizations have access to these tools.
○ Ineffective because external project stakeholders cannot access them.
○ A security risk because there is no way to restrict access to them.
◉ An effective way to provide information to a variety of users.
5. Which tool will you use for analyzing and communicating the
relationships between process steps?
○ Scatter diagrams
○ Control charts
◉ Flowcharts
○ Trend analysis
Solutions
ACTIVITY 9-1: Creating a Risk Management Plan
1. During your project review, you determine that a risk officer is needed to
handle risk management activities. Which activities would you assign to this
person? Select all that apply.
☐ Assigning roles and responsibilities to each team member.
☐ Developing response strategies.
☑ Confirming and articulating the risks' probability and impact to the business strategy.
☑ Coordinating risk identification and analysis activities.
2. With your planning meetings started and budget decided, your team begins
the task of determining how to identify risks. When planning project risks,
which component will you look at first?
○ Other project risk management policies
◉ The organization's risk management policy
○ The organization's quality policy
3. Which additional factor should you consider when developing your risk
management plan?
○ The geographic location of the project team
◉ Thresholds
○ Job descriptions
○ Communication technology
4. You integrated specific risk-related activities and deliverables in the project's

schedule and documented how to track risk response efforts in your risk
management plan. Which task should you perform to complete the risk
management plan?
○ Determine the necessary budget.
○ Make sure that roles and responsibilities are clearly understood by the team and other
stakeholders.
◉ Determine how to document lessons learned for future projects.
○ Create a probability impact matrix.
6. As noted in the GCCG Risk Management Plan, the risk management plan for
your e-Banking Portal project uses a probability scale to define the probability
of occurrence of a risk listed in the risk register. Which of the following is the
probability scale defined for the project?
◉ 0.1, 0.3, 0.5, 0.7, 0.9
○ 1, 3, 5, 7, 9, 11
○ 1.1, 1.3, 1.5, 1.7, 1.9
○ 2, 4, 6, 8, 10, 12
Solutions
7. Which section of the GCCG Risk Management Plan document

highlights the risk priority areas for the project?
◉ The probability and impact matrix
○ Methodology
○ Frequency of updating risk registers
○ Roles and responsibilities
8. According to the GCCG Risk Management Plan document, who is

responsible for updating the Risk Register?
A: Project Manager
ACTIVITY 9-2: Identifying Project Risks and Triggers
1. You and your project team will have a meeting to identify and
examine the strengths and weaknesses within GCCG that can
potentially impact the project, as well as any opportunities or
threats that may be imposed by the external consultants and
network providers. Which information-gathering techniques will you
use? Select all that apply.
☑ Brainstorming
☐ Interviewing
☑ SWOT analysis
☐ The Delphi technique
2. There is a new upgrade to the web development software that the

programmers are using. This upgrade is mandatory to the project
development environment and therefore, when available, will be
required by GCCG. In what risk category should your team place
this risk?
○ Project management
◉ Technical, quality, or performance risks
○ Organizational
○ External
3. What is the trigger for the software upgrade risk that has been
identified?
○ The potential increase to the total project costs that the upgrade will cause.
○ The enhancements to the web development software.
◉ The IT department scheduling the software upgrade.
○ The impact the upgrade will have on the project by narrowing the RFPs sent to
external consultants.
Solutions
ACTIVITY 9-3: Performing Qualitative Risk Analysis
1. You need to enter the risk factors into the risk register for obtaining an
external consultant. Using the GCCG Risk Event Impact Scale and the
Probability Rating tables, use your judgment to assign a risk probability rating
for each task.
A: The probability ratings are based on your judgment, and there is no correct answer.
2. For each risk that is identified, provide an impact rating for the work activity.
A: The impact ratings are determined by your informed opinions, and there is no correct answer.
3. Given your own analysis, which of the risks do you feel should receive the
highest priority for this project?
○ The IT department may not approve the immediate web development software upgrade request.
◉ RFPs do not meet GCCG specifications for dates and costs.
○ Temporary loss of a team member.
○ Change in organizational requirements to use external consultants.
Solutions
ACTIVITY 9-4: Performing Quantitative Risk Analysis
1. Which analysis technique was used in the image to determine the

most cost-effective choice of an external consultant?
◉ Decision tree
○ Simulation
○ Delphi
○ Diagrammatic
2. What is the probability that Vendor 1 will complete the project on

time?
○ 60 percent
○ 50 percent
◉ 40 percent
○ 70 percent
3. What is the probability that Vendor 2 will run over the allotted time
for the project?
◉ 50 percent
○ 60 percent
○ 70 percent
○ 40 percent
4. What is Vendor 3's expected monetary value?

○ $10,300
○ $1,700
○ $0
◉ $200
5. Your team combines each vendor's EMV and costs. You want to
choose the vendor bid with the most economic advantage for
GCCG. Based on this number, which vendor should your team
choose?
○ Vendor 1
◉ Vendor 2
○ Vendor 3
○ Vendor 1 and Vendor 3
Solutions
ACTIVITY 9-5: Developing a Risk Response Plan
1. The first risk has possible positive outcomes. Which risk response strategy
should you employ?
○ Risk avoidance
◉ Risk enhancement
○ Risk mitigation
○ Risk sharing
2. What are some responses you can plan for the potential risk of a project
software upgrade during the project life cycle?
A: If the software meets the approval of the IT department, you may want to include a provision to
obtain a beta version of the software. You may choose to have a pilot group work with the software.
3. The change in organizational requirements due to the resignation of Vicky

Morris has possible negative outcomes to the project, but there is no way to
avoid this scenario completely. Which risk response strategy should you
employ?
○ Risk avoidance
◉ Risk mitigation
4. You determine that an external consultant illness cannot be avoided. Which

risk response strategy should you employ?
○ Risk acceptance without a contingency plan
◉ Risk acceptance with a contingency plan
5. What are some responses you can plan for the potential risk of an external
consultant illness during the project?
A: Answers will vary, but one possibility is to include the availability of a backup consultant in the vendor
contract.
Mastery Builder 9-1: Reviewing Project Risk Management

Planning
1. What is the purpose of qualitative risk analysis?

○ Used to select alternative strategies for dealing with risks.
○ Used to determine if the risk responses have been implemented as planned.
○ Used to analyze the probability of each risk numerically.
◉ Used to assess the impact and likelihood of the identified risks.
Solutions
2. Which option best describes transference?

○ Reducing the probability of an adverse risk event to an acceptable level.
○ Changing the project plan to eliminate a risk.
◉ Shifting the responsibility for a response and possible impact of a risk to a third party.
○ Developing a contingency plan.
3. What are the four main areas that project managers typically
consider when discussing risks?
○ Design, supply chain, production, and marketing
◉ Time, cost, quality, and scope
○ Initiation, planning, executing, and closing
○ Methods, materials, metrics, and people
4. What do you call a specific occurrence that may impact the project
in the future, either positively or negatively?
○ Risk factor
◉ Project risk
○ Risk-opportunity dichotomy
○ Expected value
5. What are residual risks?

○ Those risks that have no impact on the project budget or schedule.
○ The same as secondary risks.
◉ Those risks that remain after risk responses have been taken.
○ A direct result of implementing a risk response.
6. During a project's life cycle, risk identification:

◉ Should take place during each project phase.
○ Is done during the implementation and planning phases only.
○ Is done during the planning phase only.
○ Is no longer needed during the closing phase of a project.
7. For what reasons are the network diagramming and flowcharting

methods used in risk identification? Select all that apply.
☐ To indicate areas of the WBS that should be redrawn as a result of risk identification.
☑ To determine the root cause of a project risk.
☑ To show the effect of a particular risk on a project.
☐ To identify all the possible risks to a project.
Solutions
8. For what reasons is the Delphi technique often used during risk identification?
☐ It emphasizes the potential impact of risk by describing incidents that illustrate the consequences
of ignoring the risk.
☐ It identifies overall project risks and focuses on a particular project segment or work package.
☑ It ensures that all stakeholder inputs are received and the risk process is not unduly influenced by
a small number of persons.
☑ It motivates stakeholders to invest in the risk identification process through the use of anonymous
input via questionnaires.
9. Jennifer is a publisher. In order to make sure that her writer delivers on time,
she inserts a penalty clause for late delivery in her writer’s contract. Which
risk response is Jennifer using?
○ Risk acceptance
◉ Risk transference
○ Risk mitigation
○ Risk avoidance
10.Which risk response can be categorized as either passive or active?

○ Risk mitigation
◉ Risk acceptance
○ Risk avoidance
ACTIVITY 10-1: Evaluating Procurement Inputs
1. Which of GCCG's project documents contain information about the time frame
for each project deliverable?
○ The scope baseline
◉ The project schedule
○ The requirements document
2. Which of the following documents include details of the agreements that are
prepared to specify each party's responsibility for specific risks in the project?
◉ Risk-related contract decisions
Solutions
3. Which of the following documents include information on the

specific activity resource needs of the project?
◉ Activity resource requirements
4. Which of the following documents address issues that can

influence the process of planning procurements such as market
conditions and supplier information?
◉ Enterprise environmental factors
5. Which of the following documents are contracts between the

organization and one or more external entities to work together?
◉ Teaming agreements
6. Which of the following documents include factors that can influence

the process of planning procurements such as policies,
procedures, guidelines, and management systems?
◉ Organizational process assets
Solutions
ACTIVITY 10-2: Preparing a Procurement Management Plan
2. In GCCG's Procurement Management Plan document, who is authorized by

GCCG to enter a prescribed contract with the service provider?
◉ The procurement manager
3. In GCCG's Procurement Management Plan document, which of these job

tasks are defined for the solicitation process of the project? Select all that
apply.
☑ Characteristics of project requirements are to be documented in a procurement SOW.
☐ Necessary electronic and paper documentation and source files are to be provided.
☑ An RFP is to be sent to prospective vendors.
☑ Evaluation criteria are to be determined to evaluate proposals from vendors.
4. Which of the following proposed criterion for evaluating vendors is subjective?

○ The vendor must have a minimum of four years of experience in banking hardware and software
business.
◉ The vendor must be flexible about the changes to be made to the processes whenever necessary.
○ The vendor must have a minimum of two banking-related clients.
○ The vendor must receive an 8 out of 10 approval rating from all provided references.
5. Which section in the Procurement Management Plan document refers to the

parameters to choose vendors?
○ Contract type
○ Procurement description
◉ Source selection
○ Procurement responsibility
ACTIVITY 10-3: Preparing Procurement Documents
1. Based on the scenario, what will be a logical first step in creating the
procurement document?
◉ Determining the most appropriate procurement document to use.
○ Determining how you want sellers to respond.
○ Defining the product requirement specifications.
○ Examining the project SOW and making any necessary changes.
Solutions
3. In the Combined SOW and Procurement document, which

components define the specifics of the work being procured?
A: The description of the work, the Seller Responsibilities list, and exhibits A and B define
the work being procured.
4. In the Vendor Responsibilities section, are there any

inconsistencies used in the document that may be confusing?
A: Answers will vary, but may include using the terms “supplier” and “service provider”
interchangeably, which might cause confusion. It's recommended that the same term be
used when referring to the vendor.
5. Does the Combined SOW and Procurement document include any

collateral services to be provided by the client?
A: The follow-up support will be considered as a collateral service in this contract.
Training materials might also be considered to be collateral.
6. Does the Combined SOW and Procurement document describe

when, where, and how delivery is required?
A: The work schedule describes when the work will be delivered. The Seller
Responsibilities list states that the seller must be responsible for installing, configuring,
and testing the products. Exhibits A and B describe in detail how delivery should be
made.
7. The delivery of project software and hardware required, timely

installation and maintenance, training and support, and costs will
be the determining factors in your choice of suppliers. What type of
procurement document is this?
○ RFQ
○ RFB
◉ RFP
○ IFB
8. Why is the RFP the appropriate document?

A: The RFP is appropriate because cost is not the only factor. You are also looking at the
software and hardware delivery, timely installation and maintenance, and training and
support.
Solutions
Mastery Builder 10-1: Reviewing Procurement Planning
1. Which procurement document is commonly used when deliverables are

commodities for which there are clear specifications and when price will be
the primary determining factor?
○ RFQ
○ RFP
◉ RFB
○ RFI
2. Which option is used to evaluate each seller's proposal and make
comparisons among different proposals?
◉ The source selection criteria
○ The teaming agreements
○ The procurement documents
3. Which document provides a description of the work authorized to be
performed by a supplier?
○ The work breakdown system
◉ The procurement SOW
○ The project plan
4. Which document includes the invitation for bid and guidelines for sellers to
submit the invitation for bid?
◉ The procurement document
5. Which is a legal contractual agreement between two or more parties to form a
joint venture defined by the parties to meet the requirements of a business
opportunity?
○ Outsourcing
◉ Teaming agreement
○ Change requests
Solutions
6. Which procurement document is generally used to develop lists of

qualified sellers and gain more input for resource availability?
◉ RFI
○ RFP
○ IFB
○ RFQ
ACTIVITY 11-1: Developing an Integrated Change

Control System
1. Who will you involve in the change control process for the e-
Banking Portal project and what is their role in the change control
process?
A: The change control process should involve GCCG-selected senior executives and
strategic planning individuals who are the key stakeholders. Their role will be to identify
what will be considered a significant enough change from each baseline to require
management approval. You should also include the PMO and the CCB.
2. Which document records the change requests initiated in the

integrated change control system?
○ The cost management plan
○ Performance reports
◉ The change request form
3. The IT department informs you that a project software upgrade for

the e-Banking Portal will have a significant delay in delivery. In the
risk register, you accounted for delay due to the software upgrade,
but this delay is much longer than originally anticipated. What
○ Coordinate changes across knowledge areas.
◉ Document the change request in a change control system.
○ Update the project plan to reflect changes.
○ Bring the information to the stakeholders for evaluation and approval.
○ Identify corrective action to take to resolve the problem.
4. The procurement manager contacted the software vendor and was

able to secure a beta version of the project software. The beta
version may have some minor bugs, but it will be available in time
for the training. Based on your change control process, what
further action, if any, should you take?
A: You should document the problems regarding the beta version and its flaws, the
actions taken to work within these issues, and the reasoning behind your decision to use
the beta version of the software.
Solutions
ACTIVITY 11-2: Developing a Transition Plan
1. Which of these inputs will you need to develop a transition plan? Select all
that apply.
☐ The project charter
☑ The stakeholder list
☑ The project scope statement
☐ The quality management plan
2. Which organization defines the scope of the transition plan?

A: The scope of the transition plan is defined by the performing organization.
3. In which of the project lifecycle process groups is the transition plan

developed?
○ Initiating
◉ Planning
○ Executing
○ Closing
4. A project's outcome, which includes products, services, or benefits, is

transferred to the next level for sustainment. Which option best describes
"sustainment" of a product?
◉ It ensures that a project's end product is maintained so that the product is in operable condition
regardless of whether or not the product is used by the end user.
○ It ensures that a project's end product is sent for testing before it can be handed off to its recipients.
○ It ensures that a project's end product is delivered to its recipients regardless of its operable
conditions.
○ It ensures that a project's end product is incorporated by its recipients after the transition process.
Mastery Builder 11-1: Reviewing Change and Transitions
1. How is the project scope statement used?

○ As input during project transition that helps determine the limitations of the project.
◉ As input during project transition that helps align the transition plan with stakeholder expectations
and interests.
○ As output during project transition that ensures that project benefits are measured and benefits to
the sustainment plan exist.
○ As a tool to manage changes to the project management plan.
Solutions
2. What are some of the reasons for performance variations in a

project? Select all that apply.
☑ Specification changes
☑ New regulations
☑ Missed requirements
☐ New changes to the project plan
☑ Inaccurate initial estimates
3. Which tool is used to manage changes to a product or service

being produced?
○ Infrastructure management
◉ Configuration management
○ Agile project management
○ Operations management
4. Which items are included in work performance information? Select

all that apply.
☐ Details on project stakeholders.
☑ Lessons learned that are posted to the lessons learned knowledge base.
☐ Contingency amounts reserved for the project.
☑ Expenses authorized and incurred.
☑ All schedule activities and their start and finish dates.
5. True or False? Product transitions can be contracted.

☑ True
☐ False
6. With whom should you conduct detailed discussions while creating

a transition management plan? Select all that apply.
☐ Sellers
☑ Sponsors
☑ Customers
☐ CEO
☑ Stakeholders
7. Which is not a component of the transition plan?

○ Creating the scope of the transition and specifying what must be included and what
can be excluded in the transition.
○ Identifying the stakeholders and their organization or group that must receive the
transferred products.
○ Creating a resource release plan that specifies what the resources must do after the
benefits are realized and the products transferred.
◉ Identifying all the schedule activities and their start and finish dates.
Solutions
8. Which type of support is not included as part of extended support?

○ Troubleshooting
◉ Product training
○ Maintenance
○ Customer service
○ Installation
ACTIVITY 12-1: Directing Project Execution
1. You need to assist the systems analyst in the creation of a PMIS that is
workable for your project. In order to design an effective PMIS, what should a
systems analyst know about the project that the PMIS will manage? Select all
that apply.
☑ Who will have access to the information?
☑ When will the information be needed?
☑ Who will incorporate the information in the system?
☐ Who is the customer?
2. As the project manager, you made sure that all organizational policies and
procedures were followed and the contract vendors are familiar with their
responsibilities. What will you do next?
◉ Create a work authorization system.
○ Call a meeting with the project sponsor so that she can commence work.
○ Work with a systems analyst to create a PMIS.
○ Collect work performance information.
3. An activity did not start on its scheduled date. The members of Team 1
claimed that they could not start the activity because its predecessor activity
did not show a completion date in the latest status report. The members of
Team 2 claimed that they completed the activity on time and followed the
appropriate procedure for updating its completion status. What are the
predecessor things you will do to investigate why the status report was not
up-to-date?
A: Review the status for the activities in the PMIS because it is the central point of data collection for
activity status. If you discover that the completion status for the activity is not reflecting in the system,
alert the PMIS technical experts so that the cause can be identified. Along with the current system for
activity updates, you may also ask the resources to communicate their activity progress on a weekly
basis through email or a phone call until the original system is proven.
Solutions
ACTIVITY 12-2: Executing a Quality Assurance Plan
1. The manager of quality assurance asked you about the quality

management plan. Which feature might he find problematic?
○ Occurrence of scheduled and random quality inspections during the course of the
project.
○ Operational definitions were established for measuring the quality of the construction
work.
◉ Implementing all corrective actions that the quality assurance engineer feels will
improve the effectiveness or efficiency.
○ Quality inspections will be conducted by an internal quality assurance engineer and
by the city.
2. As construction gets underway, random assessment results of

product development processes and product testing processes are
unexpectedly unsatisfactory. What sort of quality activities should
be conducted?
A: Perform a random or scheduled quality audit to evaluate the quality management plan,
quality testing procedures, and measurement criteria for inconsistencies in the way that
the quality plan and operational definitions are being carried out. You can use some of
the QA tools to provide data and specific information about quality.
3. The stakeholders are questioning the amount of resources

dedicated to quality assurance. What will you do to demonstrate
that the benefits of quality assurance outweigh the cost?
○ Use flowcharts to see how systems relate and how various factors may be linked to
problems or effects.
○ Perform benchmarking to compare project practices with other projects to generate
ideas for improvement.
◉ Document the identified corrective actions so that their effect on project quality, cost,
and schedule can be monitored during quality control.
○ Conduct an array of experiments to identify the factors that may be influencing
specific variables.
ACTIVITY 12-3: Assembling the Project Team
1. Three members of your project team have to be allocated to you on

a part-time, 50 percent basis from the IT department. What will be
your first step in acquiring these resources for the project team?
A: Answers will vary, but may include: form good relationships with the functional
manager in order to identify and acquire resources, resolve problems, and manage team
members. Discuss the specific time frames that you will need for those people.
Solutions
2. The functional manager of the IT department informs you that based on the
time frame for your project, two of the resources that are available are new
hires who have not worked earlier in a project on their own. What should you
do?
A: Answers will vary, but may include: ask the functional manager if a senior member of his team can
serve as a mentor to the new hires, at least throughout the beginning phases of the project. Verify that
the assigned resources will be able to perform the work required. Discuss who will be responsible for
training the new hires. Learning to negotiate effectively with functional managers is a crucial part of the
team acquisition process.
3. Which approach are you using as you work to acquire the appropriate project
resources?
○ Staff pre-assignment
◉ Negotiation
○ Flowcharting
4. You reviewed the staffing management plan; to your surprise, it appears that
there are now staffing gaps due to resource reassignments. What will you do
to address this problem?
A: Answers will vary, but may include: one of the first things will be to develop some rough choices for
the project sponsor in terms of acquiring new resources and lead time to fill these staffing gaps. The
budget and schedule will be revised to reflect these resource reassignments.
ACTIVITY 12-4: Developing the Project Team
1. In which of the following team development stages do team members begin to

work productively, without worrying about personal acceptance or control
issues.
○ Integrating
○ Storming
◉ Norming
○ Performing
2. You notice that Rachel, a team member, consistently meets her deliverable
deadlines and is always on time with her status reports. She actively
participates in brainstorming sessions and makes valuable contributions to
the discussions. When required, she has gone beyond her responsibilities
and helped her project manager facilitate brainstorming meetings and
discussion sessions. How should you respond?
A: Answers will vary, but may include: consider publicly recognizing her in a team meeting to reinforce
desirable behavior. The project manager can also provide a comprehensive, valid, and data-driven
description of her work to the project team. The team may congratulate her and it may give everyone
motivation when needed to meet aggressive deadlines. It is also advisable to provide positive input to
her functional manager for her performance appraisal. This will boost her motivation to go the extra mile
and may lead to a raise.
Solutions
3. One of your junior team members, who is assigned to gather

information from managers through an interview process, has
confided in you that he is not comfortable during the interviews. He
feels that the managers are impatient while he questions them. The
other junior team members assigned to interviews did not have any
problems. What are some things you will do to address this issue?
A: Answers will vary, but may include: as a project manager, you can talk to the team
member about certain aspects of his voice, such as intonation, and his communication
style, such as nonverbal cues. You need to identify if the team member has a problem in
any of these aspects, which may create a negative impression while interviewing the
managers. Discuss with the managers to check if this member faces prejudice.
4. Your team seems to have started to finally gel and smaller groups
have begun to work well together. In your weekly team meetings,
you often recognize one of the smaller groups and call attention to
their progress. Recently, you've noticed that the smaller groups
have shifted their focus inward and are not collaborating as much
as with the team as a whole. Which of the following might be the
problem?
○ Unnecessary meetings
◉ Unhealthy competition among the team
○ Less than supportive team members
○ Lack of faith in the project manager
5. As a project manager, you know that building a cohesive and

productive team is critical to the success of a project. What types of
issues might be a barrier to your successful team development?
A: Answers will vary, but might include ambiguous team goals or roles, conflicting roles,
poor communication, poor support from upper management, conflicting personal or
organizational agendas, and real or perceived changes to the organizational environment.
ACTIVITY 12-5: Managing the Project Team
1. Given the masonry supervisor's email message about the conflict

between the plumbing and tile contractors, what should you do
next?
○ Wait for results of the weekly masonry work progress report.
◉ Investigate directly to confirm their inability to get along and its probable impact on
the team.
○ Provide constructive feedback to the contractors.
○ Consider offering an online conflict resolution course for the contractors.
Solutions
2. When speaking with the contractors, you discover that the tile contractor feels
that the plumber is spending too much time at lunch and on breaks, which
causes the tile contractor to have to work past 6:00 each day. The plumber
responds that he takes a normal lunch break. What can you to do resolve this
situation?
A: To help resolve this conflict, you can review the expected ground rules that were set at the beginning
of the project based on the communications management plan. Confirm the amount of time that should
be used for lunch and breaks and verify the facts of the breaks being taken. Remind the plumber of the
team's ground rules and schedule expectations, and his responsibilities on the project. Document the
incident and monitor the situation as the contractors continue to work together to complete the project.
3. The roofing team has been working effectively, meeting all deadlines and
experiencing no personnel problems. What approach should you take when
monitoring this team?
A: Give positive feedback. Providing constructive feedback to team members on a frequent basis
enables the team members to know that they are on track. Speaking to team members one-on-one is
an excellent way to maintain communication and monitor progress. Also identify the reasons behind
good team work and document it for future use.
ACTIVITY 12-6: Distributing Project Information
1. An automated information retrieval system will provide stakeholders with

access to project information via the intranet. What, if any, concerns do you
have with relying on this type of distribution of project information to
stakeholders?
A: Answers will vary, but may include: while this may be a good method for making information available
to stakeholders in an efficient manner, the information is left up to the stakeholders to interpret. One-on-
one meetings will still be necessary to provide an overview of how the information reflects the reality of
the project status. Also, the information must be carefully screened for accuracy. Consider the
importance of version control; they should be able to share information without losing earlier versions of
the material. Consider whether only selected people should have the ability to modify the content.
2. As people strive to meet their deadlines, reporting the status of activities can
become a low priority. This is a problem when you are trying to distribute up-
to-date information on the status of the project. What are some things that you
could do to make sure that people report accurate and timely information to
you?
A: Answers may vary, but may include: schedule weekly project status meetings or meet with resource
groups on an individual basis. If they are using the same document to report their status, you may
consider implementing a date and time stamp for version control.
3. You are asked by your manager to provide the senior executives your
project's progress to date. Which information distribution methods will be most
appropriate in this situation?
○ Send an email message based on status notes that you took over the phone while communicating
with team members.
◉ Make a presentation to the senior executives highlighting the important points in the report.
○ Make a telephone call to schedule one-on-one meetings with each executive.
○ Send an email message announcing that a report is posted on the intranet site.
Solutions
4. Which standard should an information retrieval system need to

comply with?
◉ It should provide a method of version control.
○ It should have limited storage capacity.
○ It should be computerized.
○ It should be open for access to all.
5. True or False? Once you have established an information

communications system, you should continually monitor the system
for feedback.
☑ True
☐ False
ACTIVITY 12-7: Managing Stakeholder Relationships

and Expectations
1. Stakeholders are worried about the current state of the project.

How should you handle their concerns?
○ Follow processes outlined in the communications plan.
◉ Conduct a face-to-face meeting with a clear agenda targeting their specific concerns.
○ Document lessons learned.
○ Take corrective action.
2. Two stakeholders are out of town on a business trip and are

available sporadically. Another has an extremely busy schedule
and can't squeeze another lengthy meeting into his day. You know
it is important to have face-to-face interaction with each
stakeholder. How can you accommodate their needs? Select all
that apply.
☐ Send a memo via email.
☑ Use video conferencing.
☑ Hold a brief summarization meeting.
☐ Use an instant messaging service.
Solutions
3. During the face-to-face meeting with project stakeholders, you offer a recap of
some contractor changes that occurred. It became necessary to add another
electrical contractor to the team, which resulted in changes to the project cost
baseline. While you are talking about this issue, you notice that one of the
project stakeholders continually looks down at the floor and rapidly taps her
pen against the table. What does her behavior indicate?
A: Assessing body language provides the project manager with an opportunity to determine if the
stakeholder is pleased or not with the project’s progress. Based on her body language, you can
determine that the project stakeholder is uncomfortable with the information you are providing to the
group. She may otherwise be preoccupied with other thoughts, which in her opinion are of much higher
priority than the meeting. You can draw her into a conversation to determine what aspect of the
information is unsettling to her. Her answer will tell you if there are outstanding issues to address in
regards to project cost baselines or any other issue that may be of concern to her.
Mastery Builder 12-1: Reviewing Project Execution
1. What are the important reasons behind the efforts taken by a project manager
to foster motivation? Select all that apply.
☑ To help the team work through a temporary setback.
☑ To help the team overcome lack of confidence.
☐ To ensure that there are no activities that have late start criteria.
☑ To accomplish early “wins” in the project's life cycle.
2. Which option helps notify the work package owners when to begin work?
○ The status review system
◉ The work authorization system
○ The PMIS
3. What does a work authorization system ensure? Select all that apply.
☐ Work done is in line with the project goals.
☑ Clearly outlines what work is to be done.
☑ Identifies who is to do the work.
☑ Helps understand when the work is to begin and end.
4. Which element is a form of operational definition?

◉ Metrics
○ Control limits
○ PCIs
○ COQ
Solutions
5. Which tool is used to collect, archive, and distribute project

information?
○ The communications plan
○ The project management enterprise software
◉ The PMIS
○ The communication and feedback system
6. Which items are contained within the work performance

information? Select all that apply.
☑ Completed and incomplete deliverables.
☑ Actual conformance to the quality plan.
☐ Intended performance details of the work to be completed.
☑ ETC for scheduled activities that have started.
7. What is quality assurance?

○ Strategizing how to create products that meet quality requirements.
○ Conforming product specifications to customer requirements.
◉ A pattern of activities which ensure that the product will meet quality requirements.
○ A set of tactics that are used to determine if goods meet quality requirements.
8. Which statements best describe project quality audit? Select all

that apply.
☑ Contains an approved quality audit methodology.
☐ Contains the historical data of change recommendations.
☑ Ensures that efficient or effective processes and procedures are used.
☑ Determines whether the project complies with organizational and project policies,
processes, and procedures.
9. What does co-location mean?

○ That the team members are distributed geographically.
◉ That the team is working in one physical location.
○ That the team uses one server to log in.
○ That the team members work from home.
10.Which statement is true of version control?

○ Required so that team members do not overwrite one another's work.
○ Not required for project managers who use adequate backup systems.
◉ Required to make sure that everyone is working with the same, most recent
document.
○ Required to maintain only the latest version of the document.
Solutions
11.Which of these statements are true of the PMO? Select all that apply.
☐ A team that manages multiple projects concurrently.
☐ The same as the office of the CEO.
☑ A unit that centralizes and coordinates the management of projects.
☑ An organization that may provide project support functions.
12.Which of these statements are true of quality audits? Select all that apply.
☐ Are only done at the end of the project.
☑ Are used to check the fitness of the project's output or the fitness of the quality plan.
☐ Are done only once during the entire project life cycle.
☑ Are best done at random intervals over the course of the project.
13.Why are quality audits performed? Select all that apply.

☑ To evaluate whether the project output is fit for the purpose it was intended.
☐ To evaluate if the best practices identified in the previous projects have been implemented.
☑ To evaluate whether the quality management plan is still appropriate after quality improvements
have been made.
☐ To evaluate if the quality assurance team members are qualified.
☑ To evaluate how statistical process control may be used to improve the capability of a process.
14.What should you do when the quality assurance team suggests quality
improvements in your project? Select all that apply.
☑ Assess them for risk to project success.
☐ Determine the cost of quality.
☑ Subject them to trade-off analysis.
☑ Ensure that the change does not affect the project scope.
15.On which idea is quality assurance based?

○ Creating a margin of error for product specifications.
◉ Preventing problems, rather than fixing them.
○ Establishing upper and lower specifications for products.
○ Increasing production rates by providing training for quality control inspectors.
ACTIVITY 13-1: Obtaining Responses from Vendors
1. What do you think will be the most appropriate method of finding qualified
hardware and software providers for the GCCG e-Banking Portal project?
A: Answers will vary, but may include: GCCG may have a list of hardware and software providers that
the bank has used in the past. Placing advertisements is also a good option.
Solutions
2. There are only two reasonably qualified hardware and software

providers in a 20-mile radius of the bank. You decide to expand
your vendor list outside of your local area. What methods will you
use to do this?
A: Answers will vary, but may include: to find qualified vendors, you can perform an
Internet search, review professional journals, and contact the Procurement Department or
a project software sales representative in your organization. Once you compile your list,
you may consider asking the vendors for references.
3. What is the purpose of a bidder conference?

◉ To allow prospective vendors to ask questions.
○ To obtain bids from prospective vendors.
○ To expand the list of prospective vendors.
○ To develop a list of qualified vendors.
4. Based on the scenario, will you conduct a bidder conference? Why

or why not?
A: Answers will vary, but may include: based on the initial feedback and queries that you
get from various vendors in response to your RFP, you may decide to conduct a bidder
conference. This will allow prospective vendors to seek clarification about the deliverables
and the procurement requirements for preparing their responses. However, if the
proposals from various vendors indicate a proper understanding of the requirements, you
will not require a bidder conference because this incurs additional costs, time, and effort
that need not be expended.
ACTIVITY 13-2: Selecting Project Vendors
1. To find a qualified vendor, you decide to use a weighted system.

What will be your first two steps?
☑ Assign a numerical weighting factor to each evaluation criterion.
☐ Score each prospective vendor based on the rating scale for criteria.
☐ Select the vendor with the highest score.
☑ Develop a rating scale for scoring the criteria.
2. For each evaluation criterion, you specified a rating scale. What

should you do next?
○ Add the scores of the scale.
○ Select the highest rated score.
◉ Score each prospective vendor on each criterion using the rating scale.
○ Multiply the vendor's score by the weighting factor for each criterion or the sum of the
criteria in a category.
Solutions
3. You selected a vendor. You and the procurement manager are meeting with
the vendor to negotiate the contract. The procurement manager asks about
the vendor's real position. Which part of the negotiating phase are they
engaged in?
○ The introduction stage
◉ The probing stage
○ The bargaining stage
○ The agreement stage
7. Based on your quantitative evaluation of the vendor proposals, which vendor

will you choose for your project?
A: Answers will vary, but may include: based on the total scores that you calculated using the weighting
system, you now possess a quantitative evaluation of each vendor. The final total scores will serve as
an objective parameter in the comparison and selection of the vendor for your project. Based on the
total scores, you may select Rudison Technologies because they posted a score of 470, which is the
highest score among the three vendors.
Mastery Builder 13-1: Reviewing Project Procurement

Execution
1. What does the project manager do when requesting seller responses?

○ The project manager plans purchases.
◉ The project manager solicits quotations.
○ The project manager selects a seller.
○ The project manager evaluates project progress.
2. Which allows potential sellers to ask questions about the project and its
requirements?
○ Advertised bids
◉ Bidder conferences
○ The newspaper advertisement
○ The annual meeting
3. Which is included on a qualified sellers' list?

◉ Sellers' names
○ Procurement documents
○ Proposals
○ Advertised bids
4. Which document sent to prospective sellers provides information regarding

the requirement specifications and needs of your project?
○ Project documents
◉ The procurement document
○ The RFI
Solutions
5. What tools are used while conducting procurement?

○ Bidder conferences, SWOT analysis, independent estimates, and expert judgment
○ Procurement negotiations, advertising, contingent response strategies, and proposal
evaluation techniques
○ Independent estimates, make-or-buy decisions, qualified seller lists, and source
selection criteria
◉ Bidder conferences, independent estimates, expert judgment, and procurement
negotiations
6. True or False? A procurement contract is a mutually binding

agreement that details the obligations of only the seller.
☐ True
☑ False
7. Which is not an evaluation system technique?

○ Independent estimates
○ The weighing system
◉ Bidder conferences
8. In which procurement process step will you perform contract

negotiation?
○ Plan purchases and acquisitions
◉ Select sellers
9. The project manager is in the process of evaluating bids on a

scope of work that the resources in the organization are not familiar
with. Which is the best technique to ensure that there are no
significant differences in the comprehension of the scope with the
prospective seller?
◉ The weighting system
○ The expected value
○ The independent estimate
10.In which of the processes is contract an output?

○ Plan purchase and acquisition
◉ Select sellers
Solutions
ACTIVITY 14-1: Monitoring and Controlling Project Work
1. What can you do, as the project manager, to mitigate the negative effects of a
staffing change?
○ Put the project on hold until Sarah returns from sick leave.
○ Rebuild the schedule to include additional time for Kevin to complete his tasks.
◉ Closely monitor Kevin's work to assess any possible risk.
○ Discuss with the team the impending change and whether the team can expect to go through the
team development stages again.
2. Kevin missed an important deadline. What action can you take to help Kevin
get back on schedule?
A: Answers will vary, but may include investigating the reason why Kevin missed the deadline. Then,
you may recommend that another technical writer be brought in to assist him. Once you determine that
project performance is not meeting the project plan, it becomes necessary to recommend corrective
action. A change in head count will have an impact on cost and scheduling and will require the
monitoring of changes as they occur.
3. After he has been given extra help, Kevin manages to meet his next important
deadline. What should be your next action as project manager?
○ Keep a private log for your own reference, detailing changes that have been made to the project.
◉ Update recent cost and schedule changes that resulted from recent changes.
○ Ask Kevin to closely monitor changes to the project's cost and schedule.
○ Ask Kevin to let you know if he has any further problems as the project progresses.
ACTIVITY 14-2: Managing Project Changes
1. The project team members responsible for software development cannot

meet their deliverable of November 16. What actions should you take? Select
all that apply.
☐ Use configuration management to document and control changes to the original vendor contract.
☑ Identify required corrective action to resolve the problem.
☑ Recommend corrective actions to the CCB.
☐ Update the project plan to reflect these changes.
2. What are the tasks that you should consider when determining appropriate
corrective actions? Select all that apply.
☑ Identify alternative options available.
☑ Determine the source of the problem and its severity.
☐ Record how corrective actions should be tracked.
☑ Review the project plan and objectives.
Solutions
3. GCCG's change control process states, “The PMO, upon receipt of

change request decisions, records the information in a database to
track all change request patterns.” What benefits do you see in
tracking change request patterns?
A: Answers will vary, but may include: it may be helpful to see a breakdown as to how
many change requests were due to contractual agreements. You will be able to research
and identify other projects that have had similar change requests and patterns. By doing
this, you will be able to identify the root-cause of the problem and rectify the cause.
4. How do you ensure that all functional areas are aware of the
requested changes that may affect them?
A: Answers will vary, but may include: implement a CCB with representatives from each
functional area and send weekly email messages with reports and ask managers to
approve or disapprove the requests.
5. As the project manager, what could you do to encourage the team

to use the change control system?
A: Answers will vary, but may include: have everyone use the database to submit their
change request, implement a workflow so areas of impact will see and approve each
request, create a report for everyone to review new and closed requests by the CCB, and
conduct biweekly meetings with the CCB.
ACTIVITY 14-3: Reporting Project Performance
1. You need to provide a progress report to senior management.

What should your first step be in gathering data for your report?
○ Consult subsidiary plans for guidelines on reporting project performance.
◉ Check for the variances between the planned versus actual project cost, schedule,
and performance and provide appropriate action plans to remedy any variances.
○ Hold performance reviews.
○ Prepare an appropriately formatted performance report.
2. Scenario forecasting, the Delphi technique, and forecasting by

analogy are examples of which type of forecasting method?
○ Causal or econometric method
○ Time series method
◉ Judgmental method
○ Simulation method
3. After you completed your analysis of work results, you held project
deliverables performance reviews with project team members to
assess the project status. You gathered all relevant data necessary
for completing your progress report. Given the cost and schedule
concerns of senior management, what kind of data should be
included?
A: The format of the report you prepare should indicate variance; level of detailing; and
planned versus actual cost, schedule, and performance.
Solutions
4. True or False? Your reporting systems are part of your PMIS.

☑ True
☐ False
5. Because project baselines shifted, one of the team leads for the project
suggests that you should alter the format of the progress report before
handing it off to senior management. She says that extensive enhancements
to the graphic elements are necessary to truly express the major points of the
report. How would you decide whether or not to implement her changes?
A: Examine if the changes are cosmetic or if they truly express the data to be presented. If the changes
are purely cosmetic and would highlight large variances, then don't implement them. Also, evaluate the
effort needed to make the suggested changes. If the elements help express the major points of the
report and if you have time, it is a good idea to implement the changes.
Mastery Builder 14-1: Reviewing Monitoring and Controlling

Project Performance
1. What is scope creep?

○ Reduction of the project scope.
○ A type of residual risk.
○ An activity that needs to be included in the project schedule.
◉ Undocumented changes to the project scope.
2. The control processes are repeated throughout the project life cycle.
Therefore, which term can be attributed to the control processes?
○ Facilitative processes
○ Integrative processes
○ Core processes
◉ Iterative processes
3. What types of information do the performance reports provide you with?
☐ Details of team members assigned to work on the project.
☑ Percentage of activity work completed to date.
☑ Activities started to date.
☑ Activities completed to date.
4. Who is responsible for ensuring that changes are processed through the
integrated change control process?
○ The president
◉ The project manager
Solutions
5. Which statements are true of change requests? Select all that

apply.
☑ They must be documented.
☑ They can come from anyone.
☐ They will not affect the project scope.
☑ They must be subjected to an integrated change control process.
ACTIVITY 15-1: Controlling the Project Scope
1. Which input is used during scope validation?

◉ Verified deliverables
○ WBS
○ Scope statement
○ Activity list
2. When verifying the project scope, which activities are involved in

the inspection?
☑ Determining the probability of the deliverables being completed as promised.
☑ Identifying the necessary actions for completing the deliverables as promised.
☐ Modifying the project schedule to accommodate disruptions in deliverables.
☑ Comparing actual results to the baseline specifications and approved changes.
3. Which component of the inspection report explains what the

inspection was trying to prove, the process and tools used, and
any assumptions that were made?
○ Overall project status
○ Change recommendations
◉ Scope and methodology of the inspection
○ Project baseline and status comparison
4. A scope change request recommending additional test

documentation has been submitted to the CCB for analysis. This
change may impact the project finish date. What should be done
first with this request?
◉ Evaluate the request.
○ Ensure that new specifications are detailed.
○ Monitor changes.
○ Identify corrective action to take.
Solutions
5. What is the analysis between actual or predicted results and original scope
baseline or expected results called?
○ Scope control
○ Cost analysis
◉ Variance analysis
○ Deliverable analysis
6. The CCB informs you that additional costs for the workshop will be adjusted in
the project budget. However, the project finish date must remain the same. As
the project manager, what can you do to ensure that the project finishes on
time?
A: Consider assigning additional resources to effort-driven activities on the critical path.
ACTIVITY 15-2: Controlling the Project Schedule
1. You plan to measure project progress by comparing the actual performance

against planned performance as documented in the schedule and cost
baselines. What method will you use?
○ EV
○ AC
○ PV
◉ EVM
2. According to your baselines, you expected to complete $15,000 worth of work

by the end of the eighth week. What is the term for this information?
○ AC
○ EV
◉ PV
○ SV
3. According to your status reports, you’ve completed 48% of the work so far.
Based on this information, what is the EV and how did you calculate it?
A: EV = $12,000 = (.48 x 25000)
4. How do you determine the AC for your project?

A: The actual cost (AC) is not a calculated amount. Rather, it is obtained from your bank statement or
checkbook register.
5. With the data you have so far, what actions should you take at this point?
☐ Bring it to the attention of the CCB with some possible solutions.
☑ Use it to decide whether a corrective action is needed.
☑ Use it to compare actual schedule performance to planned performance.
☐ Bring it to the attention of project stakeholders.
Solutions
6. What is the SV for your project, how did you calculate it, and what
does it indicate?
A: $12,000 (EV) - $15,000 (PV) = -$3,000. A negative SV indicates the project is behind
schedule.
7. What is the SPI for your project, how did you calculate it, and what
does it indicate?
A: $12,000 (EV) / $15,000 (PV) = .80. An SPI below 1 also indicates the project is behind
schedule.
8. What should you do with the results of your performance

measurement analysis?
A: Now that you know the project is behind schedule, you need to determine what activity
is causing the problem. Once the activity has been identified, you must then determine
whether it is on the critical path. If it is on the critical path, you most likely will have to take
corrective action, such as fast-tracking, compression, or resource leveling to meet your
milestone dates and your project deliverable deadline. Remember to analyze the impact
of your corrective action on project cost and quality performance baselines. You should
continue to carefully monitor the schedule performance to check the effectiveness of your
corrective action.
ACTIVITY 15-3: Controlling Project Costs
2. Calculate the total EV for the Public Meeting work package in the
6th week reporting period. With a total budget of $33,000, what is
the EV for the work package, and what does it represent?
A: The EV is $21,600. It represents the value of the work performed on the work package.
3. According to the cost baseline, the PV up through the sixth

reporting period is $22,000. What is the CV for this work package,
and what does it tell you about the project cost?
A: The CV is +$5,600 and indicates that the project is performing below budget; however,
the AC for the Hold Event activity isn't factored into the calculation because it hasn't
happened yet.
4. Based on the formula EV/AC, you determine that the CPI for this
work package is 1.35. When you take the CPI and CV into
consideration, how is this work package performing?
A: A CPI greater than 1.0 and a positive CV indicates the work package is performing
better than anticipated when compared against the budget.
5. True or False? When determining the nature of a cost change, you

need to review the cost management plan to identify corrective
actions and baseline adjustments.
☑ True
☐ False
Solutions
ACTIVITY 15-4: Controlling Project Quality
1. Given that there is a significant variation in temperature between the first and
second floors, what should be done at this time? Select all that apply.
☑ Report this information to the appropriate people, according to the project's change control system.
☑ Because of the potentially high rework cost, finding a solution should be a top priority.
☐ Initiate process adjustments.
☐ Continue to monitor quality as the HVAC installation continues.
2. The quality management plan documented acceptability of the installation

with a tolerance of a one-degree variance between floors. What will you do to
determine the reasons for the variance in quality tests?
A: You will need to get experts involved to determine the root cause (source) of the variability so that
appropriate corrective action can be taken. Take a closer look at how the HVAC installation is being
done among the contractors. Also consider how the quality testing is being done. Is the same quality
control engineer inspecting all the floors?
3. After researching the cause of the variance, you discover that the testing was
done by one quality control engineer. You then meet with the contract
supervisor to investigate the process. You discover that the duct work on the
second floor was installed over a weekend by a different, less experienced
crew. What should your next step be?
A: Recommend corrective action to the supervisor to bring in the first floor crew to troubleshoot the
variance between the floors. It is important that you consider the impact any corrective action may have
on the project budget and schedule. Adjustments must be made according to the project's change
control system.

Project Constraints
1. What statements best describe inspections? Select all that apply.

☑ May be referred to as product reviews, audits, or walkthroughs.
☑ Involve comparing schedules and budgets to the actual project results.
☐ Are examinations of change requests to verify that the objectives are met.
☐ Are only effective if done at random intervals in a production process.
2. Which analytical tools are used to assess project progress and identify the
magnitude of cost, resource, and production variations? Select all that apply.
☑ Gantt chart review
☐ Monte Carlo analysis
☑ Project cost baseline audit
☑ Earned value analysis
Solutions
3. What does a CPI of 0.8 mean to the project?

○ Under-budget to date.
◉ Over-budget to date.
○ On budget.
○ Nothing; CPI values are always above 1.0.
4. For what reasons are Gantt charts useful for reporting project
progress? Select all that apply.
☐ They display schedule performance trends.
☑ They are easy to read.
☑ They are available in most project management software packages.
☐ They provide detailed analysis for making adjustments.
5. A project has a negative cost variance and an SPI less than 1.0.
What does this mean to the project?
○ It is over-budget and ahead of schedule.
○ It is under-budget and behind schedule.
◉ It is over-budget and behind schedule.
○ It is under-budget and ahead of schedule.
6. What is the purpose of trend analysis?

◉ Forecast future project performance.
○ Improve variance reporting.
○ Create change requests.
○ Mitigate the harmful effects of scope creep.
7. What is the difference between the EV and PV?

○ Cost variance
◉ Schedule variance
○ Unearned value
○ Actual cost
8. What does an SPI of 1.2 mean to the project?

◉ Ahead of schedule.
○ According to schedule.
○ Behind schedule.
○ Nothing; SPI values are always above 1.0.
9. What is the SV if the PV is $275,000 and the EV is $300,000?

◉ $25,000
○ - $25,000
○ $125,000
○ $575,000
Solutions
10.What are the changes made to keep project activities on schedule called?
◉ Corrective actions
○ Quality audits
○ Performance measurements
○ Schedule baselines

the CV for Case 3?
○ -1,000
◉ 1,000
○ 2,000
○ -2,000

the SV for Case 2?
◉ -1,000
○ 1,000
○ 2,000
○ -2,000
13.“500 rejected parts” is an example of which sampling technique?

◉ Attribute sampling
○ Random sampling
○ Stratified sampling
14.Which statement is true of quality problems that organizations face?

○ Originate on the shop floor because of waste and rework.
◉ Could be avoided by taking action on potential quality improvement ideas.
○ Could be eliminated if supervisors monitored their work more closely.
○ Originate in the QA organization where the ultimate responsibility for quality rests.
Solutions
15.A + or – 3-Sigma limit indicates approximately what percentage of

the process output will be within acceptable limits?
○ 30
○ 80
○ 68
◉ 99
16.Which chart is ordered by frequency of categorized causes of poor

quality performance?
○ A control chart
○ A fishbone diagram
◉ A Pareto chart
○ A trend analysis
17.A Pareto chart is a tool that is used to determine the relative impact
each quality problem has on project performance. Which statement
best describes the philosophy of the Pareto Principle?
○ In general, 80% of the quality problems can be justified as correctable using a cost-
benefit analysis. The remaining 20% are not financially worth fixing.
○ To achieve zero defects, all quality problems, including those that do not have a
direct cost, should be corrected.
◉ The vast majority of defects are caused by a small percentage of the identifiable
causes. Therefore, improvement efforts should be reserved for these vital few problems.
○ To minimize financial loss to the firm from quality problems, all problems that have a
measurable cost should be corrected.
18.Which technique is used to determine the characteristics of an

entire population based on actual measurement of a representative
sample of that population?
○ Logistical sampling
◉ Statistical sampling
ACTIVITY 16-1: Controlling Project Risks
1. What action should you first take with regard to the material delay?
○ Monitor the environment for new risks.
○ Conduct a project risk response audit.
○ Update performance baselines.
◉ Consult the risk response plan.
Solutions
2. Fortunately, you developed a very robust risk response plan. Based on the
vendor performance report, you conclude that chances of delay have now
become very high (from an earlier rating of high). You now need to decide
what will be your next step.
◉ Execute the actions specified in the risk response plan.
○ Follow the risk management process.
○ Implement the fallback plan.
○ Develop a workaround.
3. The contractor suggests that it may ultimately be more cost-effective to buy

materials from another contractor, although the initial cost of materials will be
higher. What are the considerations for changing contractors?
A: Answers will vary, but may include: although the cost of materials will be higher when purchased in
this manner, the cost of the schedule delay may even be more expensive. By buying materials right
away, you will forestall any additional work delays. You will also need to consider the potential impact
and additional risks that may be induced if deciding to buy from another contractor, and whether
changing contractors will affect quality.
4. Once the issue is resolved, you and the team continue to examine the project
results over time to determine if performance is improving or worsening.
Which analysis process are you using?
◉ Trend analysis
○ Process analysis
5. At all status meetings, you identify new risks, examine and evaluate the
current risks for their probability and impact, and close outdated risks. What
process are you using?
○ Performing trend analysis
○ Planning project risk responses
◉ Performing risk reassessment
○ Monitoring the environment for new risks
6. How do you deal with unforeseen risks?

○ Perform additional response planning for low-impact risks.
◉ Develop workarounds for high-impact risks.
○ Have a contingency fund for the project.
○ Perform additional response planning for high-impact risks.
7. What steps are performed when reassessing project risks? Select all that
apply.
☑ Identifying new risks.
☑ Closing outdated risks.
☐ Examining the team's ability to identify risks.
☐ Examining the effectiveness of risk response plans.
Solutions
Mastery Builder 16-1: Reviewing Monitoring and

1. A risk reassessment comprises three steps. Select all that apply.

☑ Identify new risks.
☑ Reassess current risks for their probability and impact.
☐ Update the risk management plan.
☑ Close outdated risks.
2. New risks may arise during the execution of a project from which of
the following causes?
☑ Changes in project objectives.
☐ Notification that the project has been cancelled.
☑ A decrease in the project scope.
☑ A restructuring within the organization.
3. True or False? The project management plan can change as a

result of a risk response audit.
☑ True
☐ False
4. How often should risk management be discussed during regular

project status meetings?
○ When new risks have been identified by a member of the project team.
◉ During every status meeting.
○ When the objectives of the project change.
○ Whenever an identified risk becomes a reality.
5. A risk response audit has determined that nearly all of the

identified risks have been successfully controlled by mitigation.
What might this indicate about the philosophy used to manage
risks?
○ There is adequate contingency reserve in the project.
◉ More money is probably being spent on managing risks than is necessary, and the
team should consider accepting more of the risks than mitigating them.
○ Some of the risks should be transferred to another organization.
○ The risk management philosophy is appropriate for the project.
Solutions
ACTIVITY 17-1: Monitoring and Controlling Procurements
1. The work done by Hexa Web Hosting is scheduled to be completed in three

stages. What action can you take to ensure that these deadlines are met?
○ Implement a contract change control system.
◉ Set performance milestones.
○ Index all contract correspondence.
2. Your contact at Hexa Web Hosting informs you that the company's primary
project software engineer resigned. The company asked to push the
milestone date by a week to get another software engineer up to speed. What
◉ Consult the contract change control system.
○ Conduct an on-site visit.
○ Negotiate a milestone deadline.
3. Hexa Web Hosting informed you that it has completed the beta verification of
the software architecture as specified in the contract. It is your responsibility,
as project manager, to verify that all feedback was incorporated correctly.
Upon your review, you notice that some of the alpha review feedback was not
incorporated. What action should you take?
A: Answers will vary. You should begin by reviewing the contract to see if there was an alpha review
requirement. From there, you can begin to figure out what happened at the alpha review. Because the
issues may have been caused due to known bugs in the software, you may first discuss the issues with
the vendor and ask the reasons for the inconsistency. Because you neared the end of the project, it is
advisable to insist that the vendor fix any show-stopper issues and continue with the contract.
ACTIVITY 17-2: Handling Legal Issues
1. On the day the shipment arrives, you open the first cleaning kit and see that it
is broken. You contact the vendor and ask for a replacement. What is the
correct term for this situation?
◉ Warranty of merchantability
○ Waiver
○ Force majeure
Solutions
2. When you open the sixth kit halfway through the project, you see
that an important component is missing. You contact the vendor
and ask for a replacement. The vendor says that because you
already accepted the delivery of the entire shipment, they can
refuse to honor your request. What is the correct term to describe
the situation?
◉ Waiver
○ Force majeure
3. Instead of your shipment arriving on time, it comes two weeks late

because of a hurricane that partially destroyed the vendor’s
shipping facility. What is the correct term to describe this situation?
○ Waiver
◉ Force majeure
4. If the vendor does something that is very serious and negates the
very foundation of the contract, what is this called?
○ Material breach
○ Anticipatory breach
◉ Fundamental breach
○ Immaterial breach
5. Going forward, you ask that invoices are submitted to the

accounting department instead of to the PMO. Why is this
considered to be an administrative change?
◉ They are non-substantive changes to the way the contract is administered.
○ They are substantive changes to contract requirements, such as a new deadline.
○ They are additional agreements related to the contract but negotiated separately.
○ They are changes that the vendor may have caused through action or inaction.
Solutions

Project Procurements
1. When a project is terminated before its scheduled completion date, which of

these is not a correct action?
○ You should halt further expenditures in an orderly way.
◉ You should cancel vendor contracts.
○ You should identify and document reasons for termination.
○ You should identify the status of complete and incomplete deliverables.
2. Which are suitable contract performance milestones? Select all that apply.
☑ Partial deliveries of the requirements.
☐ Deferred deliveries of the requirements.
☑ Completion of selected portions of the project work.
☑ Delivery of preliminary versions of the product.
3. As a buyer, what is the purpose of an on-site visit to a supplier?

○ To assess the engagement of the workforce.
○ To determine if your supplier's employees are legal workers.
◉ To determine contract performance.
○ To develop a change control system.
4. Which statement is true of the contract change control system?

○ Belongs to the vendor rather than the project organization.
◉ Contains all the forms, performance tracking, and procedural information needed to deal with
contract changes.
○ Does not feed information to the project's change control system.
○ Does not include procedures for reviewing and resolving contract disputes.
ACTIVITY 18-1: Delivering the Final Product
1. What could happen if the transfer date is not formally set?

A: Answers will vary, but may include: the bank will most likely suffer downtime due to the confusion
surrounding the transfer of support responsibilities. Critical support personnel may not be available if no
specific date is chosen.
2. What could happen if known issues and errors are not properly
communicated?
A: Answers will vary, but may include: the network operations staff will not be aware of problems that
have already been diagnosed and may not apply solutions to issues due to lack of awareness. Also, the
necessary fixes may not get into the project plan in order to be corrected.
Solutions
3. What should you do when delivering the final product? Select all
that apply.
☑ Make sure that all stakeholders' requirements have been met.
☑ Manage customer perceptions.
☐ Lay out recommendations for maintenance.
☑ Make sure that the training plan has been executed and that the team has performed
those responsibilities as specified in the transfer plan.
4. What could happen if the training program is not completed?

A: Answers will vary, but may include: the local support at the other banks will have no
idea of what they need to do and there will be considerable pressure on the network
engineers at the Network Operations Center (NOC) to supply training over the phone on
a one-on-one basis. There could be significant loss of productivity because people will not
know how to work around the same functionality.
5. What could happen if the NOC staff doesn’t get the proper
documentation?
A: Answers will vary, but may include: they will have difficulty avoiding significant
downtime and completing preventative maintenance. They will need to get direct
assistance from SMEs as their only source of information.
ACTIVITY 18-2: Closing a Contract
2. Based on the information, can you close out the contract?

○ Yes, the contract has been fulfilled.
◉ No, the contract has not been fulfilled.
○ You cannot determine this until a procurement audit has been completed.
○ You cannot determine this until the vendor completes a staff evaluation.
3. What will you do to resolve incorrect or unsatisfactory contract

work in the situation described in the scenario?
A: Answers will vary, but may include: making arrangements to meet TriMark at the work
site to evaluate what outstanding work is required to finish the job correctly and
satisfactorily; calling the contractor and directing him to return to the work site, cleaning
up the debris, and repairing the crack in the sidewalk; or conducting a procurement audit
to ensure that the contract work was properly completed.
4. The contractor returned to the work site and resolved the

outstanding contract issues and completed the cement work
correctly and satisfactorily. Can you close out the contract? Why or
why not?
A: Yes. This contract can be closed out because TriMark resolved the outstanding
contract issues and completed the cement work correctly and satisfactorily.
Solutions
5. When performing contract closure, why should you complete a procurement

audit?
○ To provide feedback to the vendor.
○ To evaluate the vendor's performance.
○ To provide a procurement record for future projects.
◉ To verify that the procurement process was effective.
○ To provide written notice that the contract has been completed.
6. Will you include a vendor evaluation in your procurement audit? Why or why
not?
A: No, because the procurement audit doesn't deal with vendor performance. The vendor audit does
that.
7. If TriMark had been unable to clean up the work site, what would you
undertake?
○ Closing procurements
○ Closing contracts
○ Final product, service, or results transition
◉ Negotiated settlements
ACTIVITY 18-3: Closing a Project
1. Are your project records ready for review by the project sponsor? Why or why
not?
A: Yes, because you collected performance measurement and product documentation and other
relevant project records to archive.
2. What document will you prepare before obtaining formal acceptance from
your project sponsor to officially complete the project?
A: You should prepare a final project report that summarizes the project. You should also complete a
lessons learned report.
3. In this case, what might constitute formal acceptance?

A: Answers will vary, but may include: a formal presentation to stakeholders followed by a memo from
the project sponsor that the project is complete. Formal acceptance documentation should be
distributed to the appropriate stakeholders and stored with the project archives.
4. What should you document when creating a project closure report? Select all
that apply.
☑ Project efficiency
☐ Resource usage
☑ Project team recommendations
☑ The cultural impact of the project
Solutions
5. What types of documentation or computer files should you store in

the project archives?
A: Answers will vary, but may include: the project plan, project performance records,
contract records, names of team members, or financial records. Basically, anything that is
relevant and significant for future projects.
Mastery Builder 18-1: Reviewing Project Closure
1. What is true of lessons learned during the project?

○ Should be documented only in the closeout report.
○ Should consist of only project data.
◉ Should be documented throughout the project.
○ Should consist of only things that went well during project execution.
2. Which process is concerned with obtaining formal stakeholder
acceptance of completed project deliverables?
○ Project plan execution
○ Scope management
◉ Scope verification
○ Quality assurance
3. Which activities are included in an orderly closeout process? Select
all that apply.
☑ Formal acceptance by the customer.
☐ Creation of a transition plan.
☑ Closure of all contracts.
☑ Administrative closure and final reporting.
4. Which is true of a formal project hand-off?
○ It is a bad idea because it embroils the project in the customer's political intrigues.
◉ It can positively shape perceptions of the product by highlighting product benefits.
○ It should only be held if the customer pays extra for this service.
○ It does not have a structured agenda for the hand-off meetings.
5. When does administrative closure occur in a project? Select all that
apply.
☑ At the end of the project.
☑ At the end of each project phase.
☑ Upon delivery of pre-specified milestone deliverables.
☐ When new team members join the team.
Solutions
6. Which is true of project archives?

○ Should never contain computerized records because they may not be retrievable in later software.
◉ Should include key information such as baselines and performance data.
○ Should be handed to the sponsor at the end of the project.
○ Should be updated only at the end of the project.
7. When can the contract closeout occur?

○ At the end of a project only.
◉ Whenever a contract is completed and accepted.
○ At the end of a project only, unless the project is terminated early.
○ Whenever a seller is selected.
8. What are the goals of contract closeout? Select all that apply.
☑ To arrange for final settlement of seller payments and claims.
☑ To verify that work was done and delivered to specification.
☐ To provide performance evaluation of seller staff.
☑ To update contract records and documents.
9. Which option best describes the final product, service, or result transition?
◉ It is the process of transferring the final product that the project was authorized to produce.
○ It is the process of transitioning the final deliverables to the next phase of development.
○ It is the process of transferring the final product to the Testing department.
○ It is the process of transferring the final product for maintenance.
10.Which content categories should the final project report include? Select all
that apply.
☑ Administrative performance and recommendations.
☐ All invoices from the sellers.
☑ Project structure and recommendations.
☑ Project management performance and recommendations.
11.For what reasons is publishing a project closeout schedule a good idea?

☐ It helps keep people motivated by imposing a deadline.
☑ It provides a sense of order in a time of fluctuating team membership.
☑ It helps team members who are leaving to understand what they must accomplish or handoff
before they can move to a different position.
☐ It provides stakeholders with information on the status of the project.
12.What is the output while closing a project or phase?

○ Project management plan updates
◉ Final product, service, or result transition
○ Contract closure
○ Work performance information
Solutions
Glossary
8/80 rule activity dependency

A general guideline regarding work A logical relationship that exists between
packages; they require more than 8 and two project activities.
fewer than 80 hours of effort to be
completed. activity list
A definitive list of activities that must be
80/20 rule completed to produce the desired project
A general guideline with many applications; deliverables.
in terms of controlling processes, it
contends that a relatively large number of activity resource requirements
problems or defects, typically 80 percent, A description of resources and quantities
are commonly due to a relatively small necessary to complete project activities.
number of the causes, typically 20 percent.
administrative closure
AC The project management process of
(Actual Cost) The total amount of costs verifying and documenting project results
incurred while accomplishing work to formalize project or phase completion.
performed, either during completion of a
schedule activity or during the completion Agile project management
of a WBS component. An iterative and incremental project
management approach that focuses on
acquisition customer value and team empowerment.
An approach that is used to acquire
resources when enough staff is not alternatives analysis
available within the project team or The process of analyzing the different
organization to complete the project. methods of accomplishing activities and
determining a globally preferred method.
action item
Any piece of work that needs to be alternatives identification
performed by a resource at any time during The act of generating different plans for
the project. achieving project goals.
activity analogous estimating

A discrete, scheduled component of work A top-down estimating technique using
performed during the course of a project; duration of previous similar activities to
it has estimated duration, cost, and estimate future duration.
resource requirements.
anticipatory breach balanced scorecard

An unavoidable indication that the other A tool that integrates project management
party will not be able to produce the and portfolio management so that projects
performance necessary to fulfill an agreed- are aligned with an organization’s strategy.
upon contract.
baseline
appeals An approved time phased plan for a
See "claims." project, a WBS component, a work
package, or an activity, plus the approved
appraisal costs scope, cost, schedule, and technical
Costs associated with evaluating whether changes.
the programs or processes meet
requirements. benchmarking
A method of addressing the evaluation of a
artifact group’s business or project practices in
Items such as plans, standards and comparison to those of other groups. It is
procedures, estimations, metrics, risks, and used to identify best practices in order to
other historical information that provide meet or exceed them.
evidence for lessons learned.
benefit measurement models
assumptions A project selection decision model that
The statements that must be taken to be analyzes the predicted value of the
true in order to begin project planning. completed projects in different ways. They
may present the value in terms of
assumptions analysis forecasted revenue, ROI, predicted
The process of exploring and validating the consumer demand in the marketplace, or
assumptions made during project planning. the Internal Rate of Return (IRR).
attribute sampling data bidder conferences
Data that is counted, such as the number Meetings conducted by the buyer prior to
of product defects or customer complaints. submissions of a bid or proposal by the
vendors.
audit
See "inspection." bottom-up estimating
A method of estimating the cost for each
auditing
work package in the WBS. The estimates
An examination of a project’s goals and
are then rolled up or aggregated for
achievements, including adequacy,
progressively higher levels within the WBS.
accuracy, efficiency, effectiveness, and the
project’s compliance with applicable breach of contract
methodologies and regulations. Failure to meet some or all of the
obligations of a contract. It may result in
average
damages paid to the injured party,
The number that typifies the data in a set.
litigation, or other ramifications.
It is calculated by adding the values of a
group of numbers and dividing that total budget forecast
by the number of objects included. The estimated budget required to complete
the remaining project work.
BAC
(Budget at Completion) The total budgeted burn rate
cost of the project at completion. The rate at which you are using up your
budget.
Glossary
burndown chart can be used as a warning of impending legal

A tool that is used to track the progress of the action if it is ignored.
project by plotting the number of days of
Sprint against the number of hours of work change control form
remaining. A document that is used to request a project
change. They can also be recommendations for
business case taking corrective or preventive actions. See also
A brief document that justifies the investments "change request."
made for a project and describes how a
particular investment is in accordance with the change control system
organization's policy. A collection of formal, documented
procedures for changing official project
business partner documents and how project deliverables will be
Individuals and organizations who are external controlled, changed, and approved.
to the company and provide specialized
support to tasks such as installation, change management
customization, training, or support. The process of managing project changes in a
structured and standardized manner.
business requirements
The pressing organizational needs that drive change request
decision makers to sponsor projects and Request for change that is sent to the upper
prioritize competing projects. management or the Change Control Board
(CCB) for its evaluation and approval. See also
business risk "change control form."
The inherent risk in any business endeavor that
carries the potential for either profit or loss. checklist
Types of business risks are competitive, A job aid that prompts employees to perform
legislative, monetary, and operational. activities according to a consistent quality
standard.
capital budgeting
A decision-making process that is used to checklist analysis
evaluate fixed asset purchases. The process of systematically evaluating the
pre-created checklists and developing a
cause-and-effect diagram checklist based on relevant historical
It provides a structured method to identify and information.
analyze potential causes of problems in a
process or system. claims
Disputes that arise when buyers and vendors
causes of variance cannot agree on changes.
The sources or reasons for deviations from the
expected standard in a process or item. closed procurement
A formal written notification from the buyer
CCB and the vendor stating that no considerations
(Change Control Board) A formally chartered are pending from either.
group responsible for reviewing, evaluating,
approving, delaying, or rejecting changes to the closure meetings
project, and for recording and communicating Sessions held at the end of a project or phase
such decisions. in which you discuss and document areas for
improvement and capture lessons learned for
cease-and-desist letter use in future projects.
A document sent to an individual or a business
to stop (cease) allegedly illegal activities and to
not undertake them again (desist). Such a letter
Glossary
co-location configuration management

The placing of most or all key team members A controlling tool for applying technical and
in the same physical location to make administrative direction and surveillance to
communication easier and enhance team manage changes that affect the function or
performance and team spirit. characteristics of the product or service being
produced.
code of accounts
Any system that is used for numbering the configuration management system
elements in a WBS. A set of tools that provide technical and
administrative guidance for identifying and
communication requirements recording the characteristics of a product or
The project stakeholders' documented service, controlling changes made to the
communication needs. characteristics, documenting the changes and
the status of implementation, and verifying the
communication requirements product's conformance to the requirements.
analysis
An investigation that leads to a clear conflict management
articulation of the stakeholders' The application of one or more strategies for
communication needs. dealing with disagreements, struggles, and
compatibility issues that may be detrimental to
communication technology team performance.
Any type of technology that is used for
communicating information, including conformance costs
websites, email, instant messaging, phones, and The amount spent to avoid failures, such as
video conferencing. Some technologies are prevention and appraisal costs, that factor into
instantaneous, whereas others take time; some the total cost of quality.
are interactive, whereas others are one-way
only. constraints
The factors that limit the way that the project
communications management plan can be approached.
A document that describes the project team’s
approach to communicating project contingency allowances
information. Additional funds that are sometimes built into
cost estimates to allow for unanticipated
completion contract events, or known unknowns.
A type of contract that is completed when the
vendor delivers the product to the buyer and contingency plan
the buyer accepts the product. See "contingent response strategy."
composite organizational structure contingency reserve

An organizational structure with a combination A predetermined amount of additional time,
of functional, project-based, and matrix money, or resources set aside in advance to be
organization structure types. used to further the project's objectives in the
event that unknown risks or accepted known
conditional branch risks become reality.
Activities that will be implemented only under
specific conditions. contingent response strategy
A risk response strategy developed in advance;
conditional diagramming method it is meant to be used in the event that
A network diagramming method that allows identified risks become reality.
for non-sequential activities such as loops or
conditional branches.
Glossary
contract vendor is reimbursed for all legitimate costs.

A mutually binding agreement that details the The majority of the fee is earned based on the
obligations of the buyer and vendor. satisfaction of certain broad subjective
performance criteria defined and incorporated
contract change control system into the contract.
An offshoot of the overall change control
system, but dedicated specifically to controlling CPFF contract
contract changes. (Cost Plus Fixed Fee contract) A cost-
reimbursable contract which ensures that the
contract change requests vendor is reimbursed for all allowable costs for
Any requested change to contract terms. performing the contract work. The vendor
receives a fixed fee payment based on the
control chart initial estimated project costs.
A graph that is used to analyze and
communicate the variability of a process or CPI
project activity over time. (Cost Performance Index) A measurement of
cost performance that is used to determine
cost aggregation whether the project is over or under budget.
A technique that is used to calculate the cost of The formula for calculating CPI is CPI =
a whole component by finding the aggregate of EV/AC.
the cost of the constituent parts of the whole
component. CPIF contract
(Cost Plus Incentive Fee contract) A cost-
cost baseline reimbursable contract which ensures that the
A time-phased budget that will monitor and vendor is reimbursed for all allowable costs for
measure cost performance throughout the performing the contract work. The vendor also
project life cycle. receives a predetermined target fee with
provision of an incentive fee.
cost control chart
Used to illustrate trends in cost performance. CPM
(Critical Path Method) An analysis method that
cost management plan
uses a sequential Finish-to-Start network logic
A document that outlines the criteria for
and calculates one early and late start and finish
planning, estimating, budgeting, and
date for each activity using a single-duration
controlling project costs.
estimate.
cost of quality
crash cost plotting methods
The total cost of effort to achieve an
Techniques for analyzing the crash costs by
acceptable level of quality in the project’s
creating a graph or visual representation.
product or service.
crashing
cost-benefit analysis
A schedule compression method that analyzes
A comparison of the predicted costs versus the
cost and schedule trade-offs to determine how
predicted benefits of a project.
to obtain the greatest schedule compression
cost-reimbursable contract for the least incremental cost.
A contract type that provides vendors a refund
criteria profiling
of the expenses incurred while providing a
A decision model that is used to evaluate and
service, plus a fee representing vendor profit.
score alternatives on each criterion.
CPAF contract
critical activities
(Cost Plus Award Fee contract) A cost-
The activities that are on the critical path.
reimbursable contract which ensures that the
Glossary
critical chain method de facto regulations

An analysis method that allows you to consider Regulations that are widely accepted and
resource limitations and adjust the schedule as adopted through use.
appropriate to work within those limitations.
de jure regulations
critical path Regulations that are mandated by law or have
The network path that has the longest duration been approved by a recognized body of
in a project or work package. experts.
cultural feasibility debriefing

An organizational characteristic that measures A less formal, more cooperative means of
the extent an organization's shared values discussing the positives and the negatives of
support the project's goals. the project, what worked, and what will be
done differently next time.
customer
Individuals or companies with varying decision tree
requirements and specifications. Can also be A type of screening system decision model that
referred to as users. uses a branch diagram to choose among two
different alternatives. This model incorporates
customer requirement probabilities of occurrence and the costs or
A requirement that documents the customers' rewards of each decision.
needs and expectations to meet the project
objectives. decision tree analysis
An assessment of the data obtained using the
CV decision tree method to evaluate various
(Cost Variance) The difference between the possible outcomes.
EV and the AC incurred to complete that
work. The formula for calculating CV is CV = decomposition
EV - AC. A technique for creating the WBS by
subdividing project deliverables to the work
daily standup meeting package level.
A meeting in which the complete team gets
together for a quick status update. These delaying
meetings are short, 15-minute meetings that A project scheduling process where activities
are conducted by standing in a circle. are postponed to accommodate the availability
of resources.
dashboard
Graphical summaries of project measures, deliverable
often a collection of multiple KPIs, that The end result of work; it can be a product,
provide an “at-a-glance” view of important service, or outcome that responds to a business
data that managers can use when making need or fits the sponsor's requirements.
project-related decisions.
Delphi technique
data gathering A group technique that extracts and
The process of collecting project-related data summarizes anonymous group input to choose
using techniques such as interviewing, among various alternatives. This technique is
questionnaires, expert brainstorming, and often used to arrive at an estimate or forecast.
Delphi techniques.
dependency determination
DCF The identification of the dependencies of one
(Discounted Cash Flow) A method that is used activity over the other. It involves establishing
to evaluate the opportunity of an investment. the precedence relationships among activities
and creating logical sequences.
Glossary
discretionary dependency EMV analysis

Defined by the project and the project (Expected Monetary Value analysis) A method
management team at their discretion. It is of calculating the average outcome when the
defined based on the best practices followed in future is uncertain.
a specific application area or on specific
requirements. If there is no mandatory or end-users
external dependency between two activities, The people who will be affected by the
the team has some flexibility in activity product or service generated by the project.
sequencing. Also known as “soft logic,” This might be the individuals or organization
“preferential logic,” and “preferred logic.” in the customer role, but can also be someone
else.
documentation reviews
The structured reviews of project plans and enterprise environmental factors
related documents that are conducted to Internal or external factors that can have a
improve the quality of the documents. positive or negative influence on the project
outcome.
DOE
(Design of Experiments) A technique that is entry/exit criteria
used to systematically identify varying levels of Conditions or circumstances defined by the
independent variables. project manager that are required to enter into
or exit from a particular milestone.
duration
The amount of time expressed in days, weeks, ETC
months, or years taken to complete a particular (Estimate to Complete) A forecasting
task or work package from start to finish. technique based on a new estimate that is more
accurate and comprehensive; it is independent
EAC for all outstanding work.
(Estimate at Completion) A forecast of total
costs needed to complete the project; it is used EV
to predict and control cost problems. (Earned Value) A composite measurement of
both cost and time performance in relation to
effect-based risk classification scheduled or planned cost and time
A way of analyzing the major risks that are performance. EV is calculated by multiplying
inherent to a project that could have an impact the percentage of work completed by the
on its success. These major risks include time, budgeted cost for the activity as laid out in the
cost, quality, and scope. cost baseline.
effort EVM
The measure of labor expressed in time over (Earned Value Management) A methodology
unit format that is applied to the completion of that measures project progress by comparing
a particular task or work package. actual schedule and cost performance against
planned performance as laid out in the
effort-driven schedule and cost baselines.
A term that is used to describe a task that can
be completed faster through the application of expert judgment
additional energy or labor resources. Advice sought from individuals having
expertise in a particular knowledge area, an
elapsed time application area, an industry, or discipline.
The actual calendar time required from start to
finish of an activity. May or may not be the express warranty
same as duration. A warranty in which the predetermined
standard for quality or performance is
Glossary
specified, either in a formal warranty or in the that has never been created before, and
manufacturer's description of the product. consequently nobody within the organization
has any experience with the operation of the
external dependency new capability.
Contingent on inputs from outside the project
activities. fixed duration
A term that is used to describe a task or work
external failure costs package that requires a set amount of time to
Costs due to rejection of the product or service complete.
by the customer.
fixed-price contract
facilitated workshops Also called a lump sum contract, it establishes
Group sessions that bring together key a total price for a product or service. The
stakeholders to define the project or product vendor agrees to perform the work at the
requirements for the project. negotiated contract value.
fallback plan float

Included in the contingent response strategy, The amount of time an activity can be delayed
this plan is implemented if the initial response from its ES without delaying the project finish
strategy is ineffective in responding to the risk date or the consecutive activities. Also called
event. slack.
fast tracking flowchart

The process of compressing the project A diagram that shows the relationships of
duration by performing some activities various elements in a system or process.
concurrently that were originally scheduled
sequentially. FMEA
(Failure Mode and Effects Analysis) A system
feasibility analysis that consists of reviewing components,
An analysis that provides technical and assemblies, and subsystems to identify how
operational data to management to help they might fail, and the causes and effects of a
determine if a project will work for the failure. It is often the first step in a system
organization or if an alternative should be reliability study, and it is sometimes used in risk
pursued. mitigation.
FF focus group
(Finish-to-Finish) The precedence relationship Trained moderator-guided interactive
between two activities where the predecessor discussions that include stakeholders and
activity must finish before the successor Subject Matter Experts.
activity can finish. It can be expressed as,
“Activity A must finish before Activity B can force majeure clause
finish.” Translated from French as "superior force,"
this common clause is added to contracts that
FFP contract addresses the actions of both parties when an
(Firm Fixed Price contract) A commonly used extraordinary circumstance beyond the control
contract type favored by most buying of either party occurs, such as war, strike, or
organizations because the price for products or natural disasters usually deemed as acts of
services is set at the outset and not subject to God.
change unless the scope of work changes.
form study
first-time/first-use penalty This prototyping model enables you to check
Any disadvantage or obstacle created by the the primary size and appearance of a product
fact that a project will generate an outcome without simulating its exact function or design.
Glossary
formal acceptance of project work functional requirements

The process for securing approval for Project requirements that detail the desired
completing the remainder of the project work; functionality, capacity, or capability expected
it requires change requests to be documented from the project.
and analyzed for their impact on other aspects
of project work including time, cost, quality, fundamental breach
and risk. A breach of contract so serious that it negates
the very foundation of the contract.
FP-EPA contract
(Fixed Price with Economic Price Adjustment funding limit reconciliation
contract) A fixed-price contract type with A method of adjusting, spending, scheduling,
special provision to allow predefined final and resource allocation in order to bring
adjustments to the contract price due to expenditures into alignment with budgetary
changed conditions. constraints.
FPIF contract Gantt chart

(Fixed Price Incentive Fee contract) A fixed- The visual representation of a project schedule
price contract that is flexible in that it allows in bar chart form. Activities are listed down the
for deviation from performance. left side and dates across the top or bottom
with bars to indicate start and finish dates.
free float Time is represented with horizontal bars that
The amount of time an activity can be delayed correspond to the activities. Gantt charts may
without delaying the ES of any activity that also show the dependencies of the project
immediately follows it. activities, as well as the percentage of the
activity completed to date and the actual
FS progress in relation to planned progress.
(Finish-to-Start) The precedence relationship
between two activities where the predecessor GERT
activity must finish before the successor (Graphical Evaluation Review Technique) An
activity can start. It can be expressed as, analysis method that provides a graphical
“Activity A must finish before Activity B can display of the conditional and probabilistic
begin.” treatment of logical relationships; it illustrates
that not all the activities may ultimately be
functional performed.
This prototyping model enables you to check
the appearance, materials, and functionality of ground rules
the expected design. Rules that set clear expectations of the
expected code of conduct from team members
functional managers so as to increase productivity and decrease
Individuals who are part of management in the misunderstandings.
administrative or functional side, such as
human resources, finances, accounting, or even group decision-making techniques
procurement of the business in the Assessment processes that assess multiple
organization. They sometimes act as subject alternatives to arrive at an expected outcome.
matter experts or may provide services needed
for the project. hammock activity
See "summary activity."
functional organizational structure
An organizational structure where reporting is histograms
hierarchical, with each individual reporting to a They are quality control tools that organize
single manager. individual measured values in a data set
according to the frequency (number or
percentage) of occurrence.
Glossary
human resource plan also be referred to as reviews, product reviews,

A document that provides guidance on how or walkthroughs.
the human resources required for a project
should be defined, staffed, managed, insurable risk
controlled, and eventually released after the A risk that has only the potential for loss and
end of the project. no potential for profit or gain. An insurable
risk is one for which insurance may be
IFB purchased to reduce or offset the possible loss.
(Invitation for Bid) Used interchangeably with Types of insurable risks are direct property,
RFP, an IFB is commonly used when indirect property, liability, and personnel-
deliverables are commodities for which there related.
are clear specifications and when the quantities
are very large. integrated change control
The process of identifying, documenting,
immaterial breach approving or rejecting, and controlling changes
A breach of contract in which there is no to the project baselines, which include the cost
resulting damage to the injured party; because baselines and schedule baselines.
there are no damages, the injured party is not
entitled to receive compensation. internal dependency
Contingent on inputs from within the
impact analysis organization.
The process of evaluating the impact of a
change on the project. internal failure costs
Costs associated with making the product or
impact scale service acceptable to the customer after it fails
The assignment of a value that reflects the internal testing and before it is delivered to the
magnitude of the impact of a risk event on customer.
project objectives.
interpersonal skills
implied warranty Abilities that an individual should possess to
A warranty in which the predetermined work harmoniously and efficiently with others.
standard for quality or performance exists but
is not specified; it takes effect if the buyer IRR
depends on the vendor's expertise when (Internal Rate of Return) The discount rate
making a purchasing decision. that makes the Net Present Value (NPV) of
the future cash return equal to the initial capital
influence diagram investment.
A visual representation of a decision situation
that helps make appropriate decisions when ISO 9000 series
planning for project risks. A quality system standard that is applicable to
any product, service, or process in the world.
information-gathering technique
Any method or approach used to collect data issue log
that will assist the project team in identifying A document that is used to list, track, and
risks to the project. assign project items that need to be addressed
by the project team.
inspection
An official examination of work results to issue register
verify that requirements are met; it involves See "issue log."
measuring, examining, and verifying results to
be sure work and deliverables meet job shadowing
requirements and acceptance criteria. It may Another term for observation, which is a direct
way of viewing individuals in their work
Glossary
environment or while using the product to fundamental terms of an agreement before

identify the project or product requirements. potentially expensive legal negotiations are
begun, or to indicate that the parties have
KPI begun negotiations.
(Key Performance Indicator) In general, these
metrics are used to evaluate factors crucial to levels of uncertainty
the success of a project or organization. In A way of analyzing the risks of a project based
project management, a KPI consists of tools on how much is known about them.
that indicate if the project is meeting specific
goals. The best practice is to define KPIs early loop
in the project; and they should be quantifiable Activity sequences that must be revisited or
and measured regularly. Common KPIs relate repeated.
to how well the project is tracking against the
planned schedule and cost baselines and if make-or-buy analysis
project milestones are being met. A technique that is used to determine whether
it will be better to produce a product or service
KPP in-house or to procure it from an outside
(Key Performance Parameters) The key system vendor.
capabilities that must be met for a system to
meet its goals. The threshold value of a KPP is management horizon
the minimum acceptable value (cost, schedule, The time frame within which the management
and technology) below which the system is team calculates potential risk and rewards.
unacceptable. Many organizations use a three-year horizon,
but this will vary from organization to
lag organization.
A delay in the start of a successor activity.
management reserves
LCL Buffers added to the project tasks for
(Lower Control Limit) The bottom limit in unplanned changes to the project scope and
quality control for data points below the cost.
control or average line in a control chart.
mandatory dependency
lead Inherent to the work itself. It is usually affected
A change in a logical relationship that allows by physical constraints. Activities must be
the successor activity to start before the performed in a specific sequence for the work
predecessor activity ends in an FS relationship. to be successful. Also known as “hard logic.”
lease, rent, or buy decision material breach

Business analysis that determines the most A serious breach of contract that prevents the
cost-effective way to procure the necessary injured party from benefiting from the
equipment for a project. contract; the injured party can claim damages,
but is no longer obligated to fulfill any contract
lessons learned reports commitments.
Formal documents that capture salient and
helpful information about the work done in a mathematical models
project or a project phase; they include A project selection decision model that uses
information about what worked well on the different types of mathematical formulas and
project and areas for improvement. algorithms to determine the optimal course of
action. Variables such as business constraints,
letter of intent the highest possible profit that could be made
A document that outlines an agreement on a project, and the laws and safety
between two parties before the agreement is regulations that govern business operations
finalized. It is sometimes used to highlight may be considered.
Glossary
matrix organizational structure negative risk strategies

An organizational structure with a blend of Methods that specify how to deal with risk
functional and project-based structures in scenarios that have a possible negative impact
which individuals still report upward in the on the project.
functional hierarchy, but they also report
horizontally to one or more project managers. negative risks
Risks that have a negative impact on the
mean project.
The sum of the events divided by the number
of occurrences. negotiated settlements
Are undertaken to arrive at a final equitable
median settlement of all outstanding issues, claims, and
The number that separates the higher half of a disputes by negotiation.
probability distribution from the lower half. It
is not the same as the average, although the negotiation
two terms are often confused. An approach used by individuals or
organizations with mutual or opposite interests
memorandum of understanding to come together to reach a final agreement.
An agreement between two or more parties to
form a business partnership. It is not legally networking
binding, but is more formal than a A technique that is used during human
“gentlemen’s agreement.” resource planning to gather resources.
milestone non-conformance costs

A control point event in a project with zero The amount spent to rectify errors, such as
duration that triggers a reporting requirement internal failure and external failure costs, that
or requires sponsor or customer approval factor into the total cost of quality.
before proceeding with the project.
normal distribution PDF
milestone list A visual depiction of a PDF in which the data
A document that contains the project is distributed symmetrically in the shape of a
milestones and indicates if achieving the bell with a single peak.
milestones are mandatory or optional.
NPV
Monte Carlo analysis (Net Present Value) The present value of an
A technique that is used by project managers investment minus the initial investment.
to make predictions about the optimistic, most
likely, and pessimistic estimates for variables in objective probability
the model, and simulates various outcomes of Probability that is deduced mathematically.
the project schedule to provide a statistical
ongoing risk assessment
distribution of the calculated results.
An iterative process of identifying, analyzing,
NDA and documenting the risks facing your project;
(Non-Disclosure Agreement) A legal contract it is conducted throughout the project life
that outlines confidential material, information, cycle.
or knowledge that two parties wish to share
operational relevance
only with each other. It is used to protect
A project responsibility that requires that the
confidential and proprietary information, often
desired future state described in the project
including trade secrets, from being shared with
concept definition is aligned with, coordinated
other parties.
with, or in support of the operational priorities
authorized by tactical management for the
stated management horizon.
Glossary
operations payment systems

Ongoing, repetitive tasks that produce the Systems that are used to make payments to the
same outcome every time they are performed. vendors that are made contingent on the
acceptance of the delivered goods or services
operations manager and on the receipt of a valid invoice for the
An individual who manages a core business goods or services.
area such as the design, manufacturing,
provisioning, testing, research and PDF
development, or maintenance side of the (Probability Density Function) A visual
organization. depiction of probability distribution in which
the vertical axis refers to the probability of the
opportunities risk event and the horizontal axis refers to the
See "positive risks." impact that the risk event will have on the
project objects.
organization chart
A visual representation of the project’s PDM
organizational structure. (Precedence Diagramming Method) A project
schedule network diagramming method that
organizational process assets produces a type of project schedule network
Any assets that can be used to influence the diagram that uses rectangular or circular nodes
success of a project. to represent activities and arrows to represent
precedence relationships between activities.
organizational structure
The compositional makeup of an organization performance appraisal
that dictates how the various groups and Project team reviews that are conducted to
individuals within the organization interrelate. clarify the roles and responsibilities of project
team members, provide constructive feedback,
outsourcing
identify unknown or unresolved issues,
Moving beyond the organization to secure
develop individual training plans, and establish
services and expertise from an outside source
future goals.
on a contract or short-term basis.
performance report
ownership
A document that reports the progress made in
Refers to a condition where everyone in the
the project activities against the scheduled
project claims to understand the roles and
performance.
responsibilities assigned to them.
performance reviews
parametric estimating
Meetings that are used to measure, analyze, and
A technique that is used to predict total project
compare schedule performance. This includes
costs by using the project's characteristics and
comparing the actual start and finish dates,
historical information in a mathematical model.
percent complete, and the time needed to
Pareto chart complete the work in progress.
A bar chart or histogram that illustrates the
phase-gate review
causes of problems and their relative severity.
A checkpoint review of project deliverables
Used for prioritizing efforts to solve problems.
and performance at the end of each phase or
payback period subphase of a project at which point a
The time taken to reclaim the original management review or sign-off may be
investment that was made. required. This is also known as a governance-
gate review.
Glossary
PMBOK positive risk strategies

(Project Management Body of Knowledge) A Methods that specify how to deal with risk
process-based approach to manage most scenarios that have a possible positive impact
projects. PMBOK is a process framework and on the project.
not a methodology like Agile. The PMBOK
recognizes processes that fall into five process positive risks
groups: Initiate, Plan, Execute, Monitor and Risks that when taken, produce a positive
Control, and Close. These five process groups project outcome.
have knowledge areas.
pre-assignment
PMIS The allocation of project team members to
(Project Management Information System) An project activities, even before the project has
automated or manual system used by a project officially kicked-off.
team to gather, analyze, communicate, and
store project information. precedence relationship
The logical relationship between two activities
PMO that describes the sequence in which the
(Project Management Office) A centralized, activities should be carried out.
ongoing administrative unit or department that
serves to improve project-management predecessor activity
performance within an organization by When sequencing two activities, the activity
providing oversight, support, tools, and helpful that must take place prior to the other.
methodologies to project managers.
prevention costs
PO Upfront costs of programs or processes
(Purchase Order) This can be a type of fixed- needed to meet customer requirements or
price contract, or a separate document that is design in quality.
appended to a contract. It is sent from a buyer
probability and impact risk rating
to a vendor with a request for an order. When
matrix
the vendor accepts the purchase order, a legally
The assignment of risk rating to risks or
binding contract is formed.
conditions.
political capital
probability distribution
A reserve of corporate goodwill that is based
The scattering of values assigned to a
on a person's perceived political position and
likelihood in a sample population.
power in the company. This capital can come
from a person's position, reputation, or both. probability scale
It is often spent by project managers and A graph showing the assignment of value to
project sponsors when a project is threatened. the likelihood of a risk occurring.
portfolio process
A collection of projects, programs, and A sequence of activities designed to bring
operational work to achieve the strategic about a specific result in response to a business
business objectives of an organization. need.
portfolio managers process analysis
Individuals, often executives, in the portfolio The method that is used for identifying
review board who are part of the project organizational and technical improvements to
selection committee and belong to the high- processes.
level project governance side of the
organization.
Glossary
process control structure procurement negotiation

The formal organization of the modifications The process of bargaining to come to a mutual
made to deliverables that are controlled by agreement regarding the terms and conditions
configuration management. of a contract.
process flowchart procurement performance review

It shows the sequence of events and the flow The evaluation of the vendor's work that
of inputs and outputs between elements in a verifies that the work performed is in
process or system. accordance with the scope, quality, and cost as
defined by the contract.
process improvement plan
A subsidiary plan of the project management Procurement SOW
plan that describes the steps to analyze and The procurement SOW (Statement of Work) is
identify areas of improvements in project a narrative description of the resources, goods,
process. or services that are being sought from external
sources to fulfill a project's requirements; it is
process improvement planning distributed to potential vendors, who will use it
The process of analyzing and identifying areas to evaluate their capability to perform this
of improvement in project processes and work or provide the services.
enumerating an action plan based on the
project goals and identified issues. product analysis
An evaluation of the project's end product and
procurement audit what it will take to create this product.
A formal evaluation of both the vendor's
performance of the contract and the product backlog
effectiveness of the procurement process itself. A prioritized list of customer requirements. It
is the first step of Scrum.
procurement contract
A mutually binding agreement that details the product review
obligations of the buyer and vendor. This See "inspection."
agreement can be a simple purchase order or a
complex contract. product training events
Demonstrations provided by the company on a
procurement documents product or service during its transition phase.
Documents submitted to prospective vendors
or service providers to solicit their proposals product transition
for the work needed. A formal hand-off of a project's outcome to its
recipients.
procurement management
The management of processes involved in program
acquiring the necessary products and services A group of related projects that have a
from outside the project team. common objective.
procurement management plan program manager

A document that outlines the specifications for An individual who works in coordination with
procuring work from outside sources. It the project managers, and oversee related
specifies the types of contracts that will be projects in a program to obtain maximum
used, describes the process for obtaining and benefits. They also provide guidance and
evaluating bids, mandates the standardized support to every individual project.
procurement documents that must be used,
and describes how multiple providers will be
managed.
Glossary
progressive elaboration phases of initiating/pre-project setup,

A process of development in which additional planning, executing, monitoring/controlling,
layers of detail are defined over the course of a and closing a project.
project.
project management software
project A software application that generates and
A temporary work endeavor that creates a organizes resource information, such as cost
unique product, service, or result. estimates and Work Breakdown Structures,
which helps optimize resource utilizations.
project charter
A document for project sign-off that varies project management team
from company to company and indicates the Members of the project team who perform
customer's authorization of a project. management activities, such as acting as the
procurement manager for projects that involve
project coordinator multiple contracts and vendors, being
The individual who supports the project responsible for inputting data into the PMIS
manager and provides cross-functional and confirming the accuracy of that data, and
coordination between the functional managers. assuming the role of Project Manager in his or
The project coordinator might also provide her absence.
administrative support and documentation
assistance, time and resource scheduling, and project manager
quality checking. The individual who is responsible for
managing all aspects of the project.
project deliverables
Any tangible, measurable result or outcome project meetings
required to complete a project or portion of a Meetings held among the project stakeholders
project. to discuss or convey project-related
information.
project governance
A comprehensive methodology to control a project objectives
project and ensure its success. The criteria used to measure whether a project
is successful or not.
project interfaces
The various reporting relationships that occur project phase
within a project. A group of related project activities that results
in the completion of a major deliverable.
project life cycle
A process that defines the five phases that a project prototyping
project goes through from the beginning to the The process of creating a mock-up of a
end. product or an information system.
project management project requirement

The planned effort for executing and A statement that defines why a project is being
monitoring a project in order to accomplish its undertaken, the functionality that a project is
defined goals and objectives. designed to accommodate, or how the
functionality will be achieved and satisfied by
project management plan the solution.
A document that details how a project will be
executed to achieve the specified objectives. project resource
Any useful material object or person necessary
project management processes to complete project work.
Activities that underlie the effective practice of
project management; they include all the
Glossary
project risk ranking project status meetings

The overall risk ranking for producing the final Short project meetings conducted to discuss
deliverable of the product or service of the the current status of the project among the
project. team members and other stakeholders.
project risk response audit project team

The process of examining the effectiveness of Consists of the project manager, the project
risk response plans and the performance of the management team, and other individual team
risk owner. members. The project team contains people
from different groups who possess knowledge
project schedule on specific subjects or have unique skill sets to
The project team's plan for starting and carry out project work.
finishing activities on specific dates and in a
certain sequence. The schedule also specifies projectized organizational structure
planned dates for meeting project milestones. An organizational structure where the project
manager and a core project team operate as a
project schedule network diagram completely separate organizational unit within
A graphical representation of the sequence of the parent organization.
project activities and the dependencies among
them. proof-of-principle
This prototyping model enables you to check
project scope statement some aspects of the product design without
Defines the project and what it does and does considering the visual appearance, the materials
not need to accomplish. to be used, or the manufacturing process.
project selection proposal evaluation techniques

The act of choosing a project from among A set of methods to evaluate, short-list, and
competing proposals. select the vendor.
project selection criteria prototype

The standards and measurements that the A simulated version of a new system, essential
organization uses to select and prioritize for clarifying information elements.
projects.
published estimating data
project selection decision model The commercial publications about production
A framework for comparing competing project rates, resource cost, and labor requirements,
proposals by helping decision makers compare for different countries and regions.
the benefits of one project with another.
PV
project selection method (Planned Value) The budgeted portion of the
Any systematic approach that is used to approved cost estimate to be spent during a
analyze the value of a proposed project in particular time period to complete the
order to choose among competing proposals. scheduled project work; previously known as
the budgeted cost of work scheduled (BCWS).
project stage
A group of related project activities that results Q-sorting
in the completion of a major deliverable. A decision model that uses groups of people to
rate the relative priority of a number of
project stakeholder alternatives.
A person who has a business interest in the
outcome of a project or who is actively qualified vendors
involved in its work. The vendors who are approved to deliver the
products, services, or results based on the
Glossary
procurement requirements identified for a RACI chart

project. (Responsible, Accountable, Consulted, and
Informed) This chart is a type of Responsibility
qualified vendors list Assignment Matrix (RAM) that helps detect
Contains details regarding vendors who are the level of responsibility for each project team
qualified by the organization and to whom member.
requests can be sent. It is sometimes known as
an approved vendor list. RAM
(Responsibility Assignment Matrix) A chart
qualitative risk analysis that links key project stakeholders to specific
The process of determining the probability of project deliverables or activities by assigning
occurrence and the impact of identified risks responsibilities to each stakeholder for each
by using logical reasoning when numeric data element of work.
is not readily available.
random causes of variance
quality Those everyday occurrences that are always
The totality of features and characteristics of a present in project work; as such, they may be
product or service that bear on its ability to unavoidable. They may be either insignificant
satisfy stated or implied needs. and have little impact on the overall quality
performance, or they may have a dramatic
quality audit effect on quality.
An independent evaluation, inspection, or
review of a project's quality assurance system. RBS
(Risk Breakdown Structure) A hierarchical
quality control measurements arrangement of identified risks that helps
Measurements used to assess a product's project managers organize potential sources of
adherence to the specified standards. risk to the project.
quality gates recognition
Used in software development projects, this A personal, intangible, and experiential event
special type of phase gate is a formal way of that focuses on behavior rather than outcome.
specifying and recording the transition between Recognition is not restricted to a set time, is
stages in the project life cycle. usually unexpected by the receiver, and is
intended to increase an individual's feeling of
quality management plan
appreciation.
A document that describes a team’s approach
to implementing the quality policy; it outlines records management system
how quality control and quality assurance will A software application that is used to manage
be performed. the project vendors, procurements, and
contract documentations.
quality metrics
An actual value that describes the regulations
measurements for the quality control process. Compliance-mandatory characteristics for
specific products, services, or processes.
quantitative analysis methods
Risk analysis methods that allow project relative authority
managers to consistently determine the The project manager’s authority relative to the
probability and impact of each risk. functional manager’s authority over the project
and the project team.
quantitative risk analysis
A numerical method that is used to assess the reporting systems
probability and impact of risk and measure the Tools used to collect, store, and distribute
impact. project information to stakeholders.
Glossary
requirements documentation RFI

A process of describing how individual (Request for Information) Commonly used to
requirements meet the business requirements develop lists of qualified vendors and gain
for the project. more input for resource availability.
requirements management plan RFP

A document that describes how project (Request for Proposal) Commonly used when
requirements will be analyzed, documented, deliverables are not well-defined or when other
and managed throughout the project life cycle. selection criteria will be used in addition to
price.
reserve analysis
The process of identifying and adding extra RFQ
time that will serve as contingency or (Request for Quote) Commonly used when
management reserves to the duration estimates. deliverables are commodities for which there
are clear specifications and when price will be
resource breakdown structure the primary determining factor. Unlike an RFB,
A hierarchy of identified resources, organized this solicited price quote is used for
by category and type. comparison purposes and is not a formal bid
for work.
resource calendar
A calendar that lists the time during which risk
project resources can participate in the project An uncertain event that has either a positive or
tasks. negative effect on the project. Its primary
components are a measure of probability that a
resource leveling risk will occur and the impact of the risk on a
One of the four common methods for project.
achieving schedule network analysis; a
technique that is used to analyze the schedule risk analysis
model. Resource leveling allows you to readjust The evaluation of the probability and impact of
the work as appropriate. the occurrence of a risk.
review risk categorization

See "inspection." A risk ranking technique that categorizes risks
to identify the areas of the project most
reward exposed to the effects of uncertainty.
A tangible, consumable item that is given to a
person based on a specific outcome or an risk data quality assessment
achievement. A reward can have a defined start The evaluation of the usefulness of the
and finish, or fixed time, and is usually available data concerning the risk.
expected when the specified goal is achieved.
risk impact
reward and recognition system The likely effect on project objectives if the
A formal system used to reinforce behaviors or risk event occurs. In risk analysis, each risk is
performance. The purpose is to motivate the assigned a value representing the likely
team to perform well and achieve and maintain consequences of the risk event occurring.
the desired level of individual and team morale.
risk management plan
RFB A document that describes the team's
(Request for Bid) Commonly used when approach to manage risks.
deliverables are commodities for which there
are clear specifications and when price will be risk probability
the primary determining factor. The likelihood that a risk event will occur or
prove true. In risk analysis, each risk is assigned
Glossary
a value to represent its probability or degree of scatter chart

uncertainty. Diagram that displays the relationship between
two variables.
risk probability and impact
assessment scenarios
A risk assessment technique that is used to A method for developing potential or likely
evaluate the likelihood of occurrence and eventualities for different situations.
potential impact of the identified project risks.
schedule baseline
risk reassessment The management-approved version of the
The process of reexamining and reevaluating project schedule; it is drawn from schedule
the risks in a project risk register. network analysis and includes baseline start
and finish dates.
risk register
A document that identifies and categorizes schedule compression
risks, potential risk responses, and their The act of shortening the project schedule
triggers, or warning signs. without affecting the project scope.
risk tolerance schedule control chart

The level of risk a project manager or key Used to illustrate trends in schedule
stakeholder is willing to take when the performance.
investment is compared to the potential payoff.
schedule management plan
risk urgency assessment An approach to develop, maintain, and manage
The evaluation of project risks and prioritizing the project schedule.
them based on their urgency.
schedule network analysis
risk-related contract decisions Any technique that is used to calculate the
Risk response approaches agreed upon by both theoretical early and late start and finish dates
the parties when procuring materials from a for all project activities.
third party.
schedule performance measurement
rolling wave planning Any technique that is used to determine how
A technique that is used to address the the project is performing in terms of time as
progressive elaboration characteristic of the compared to its planned performance.
project. It is nothing but the progressive
detailing of project plans. scheduler
The individual who is responsible for
root cause analysis developing and maintaining the project
A technique used to determine the true cause schedule, communicating the timeline and any
of the problem that, when removed, prevents changes to it, reporting schedule performance,
the problem from occurring again. and soliciting task status from resources.
RTM scope baseline

(Requirements Traceability Matrix) A A component of the project management plan
document that is created by associating the that describes the need, justification,
project's deliverables with the requirements for requirements, and boundaries for the project.
creating each deliverable. Components of the scope baseline include the
detailed project scope statement, the WBS, and
run chart the WBS dictionary.
A line graph showing plotted data points in
chronological order. It could show trends in a
process over time or improvements over time.
Glossary
scope creep significance

The extension of the project scope caused by It is the weight or importance given to
unapproved and uncontrolled changes that variances to determine what type of corrective
impacts the cost, quality, or timing of the action needs to be taken by the project
project. manager.
scope management plan silos

A planning tool that describes how a project Compartmentalized functional units, such as
team will define, verify, manage, and control sales, engineering, production, and so on.
the project scope.
simulation
scope statement A technique that uses computer models and
See "project scope statement." estimates of risk to translate uncertainties at a
detailed level into their potential impact on
Scrum project objectives at the total project level.
An Agile methodology that has been
developed over the last decade and can be Six Sigma limit
applied to a variety of projects. It focuses on In terms of controlling processes, the Six
iterative and incremental delivery of products. Sigma limit is significant because it provides a
Scrum owes its popularity to a simple generally accepted guideline for monitoring
approach, high productivity, and its scope for quality and adjusting it as necessary
applicability to multiple areas.
SLA
sensitivity analysis (Service Level Agreement) A contract between
A method of assessing the relative impact of an organization that provides a service, and the
changing a variable in the project to gain user of the service. The contract specifies what
insight into possible outcomes of one or more the customer will receive and the performance
potential courses of action. standards the provider is obligated to meet.
seven-run rule slack

When the variability of a process is more than See "float."
seven consecutive points above or below the
mean, indicating situations that are out-of- SME
statistical control and, therefore, there should (Subject Matter Expert) A person with
be a shift in the mean. technical expertise in a particular subject area.
SF source selection criteria

(Start-to-Finish) The precedence relationship The standards used to rate or score proposals,
between two activities where the predecessor quotes, or bids and form a part of the
activity must start before the successor activity procurement solicitation documents.
can finish. It can be expressed as, “Activity A
must start before Activity B can finish.” source-based risk classification
A method of analyzing risk in terms of its
short-listing origins.
A technique used to reduce the number of
proposals that have been received to a more SOW
concise number for further analysis. In this (Statement of Work) A document that
process, the buyer might use an abbreviated describes the products or services that the
scoring system or internal discussions to project will supply, defines the business need
remove some proposals from further that it is designed to meet, and specifies the
consideration. work that will be done during the project.
Glossary
special causes of variance stakeholder analysis

Unusual, sporadic occurrences; they are the The formal process of identifying all the
result of some unexpected circumstance and stakeholders by gathering and analyzing
are typically not caused by a flaw in the overall quantitative and qualitative information and
production process. building coalitions at the onset of a project by
identifying their needs, objectives, goals, and
specifications issues.
Descriptions of the work to be done or the
service or product to be provided; they define stakeholder analysis matrix
the requirements that must be met in exacting A document that describes the strategies to
detail. manage the stakeholders of a project.
SPI stakeholder expectations matrix

(Schedule Performance Index) The ratio of A document that outlines the deliverables or
work performed to work scheduled. The results that each stakeholder hopes to receive
formula for SPI is SPI = EV/PV. from the project.
sponsor stakeholder management strategy

Individuals or groups that provide financial A management strategy that is created to
assistance to the project. If the sponsor is ensure increase in support and minimize the
outside of the company, such as a customer, negative impacts of stakeholders throughout
their duties may be the responsibility of the the entire project life cycle.
project manager.
stakeholder register
Sprint A document that identifies stakeholders of a
See "Sprint cycle." project with information that includes their
identification, assessment, and stakeholder
Sprint backlog classification.
A list of user stories selected from the Product
Backlog that the Scrum Team chooses and standard deviation
commits to complete in that Sprint cycle. This is the measure of the spread of the data,
or the statistical dispersion of the values in
Sprint cycle your data set.
In Agile project management, this represents a
complete process from planning to delivery standards
and demo of a part of the product. The Sprint Non-mandatory guidelines or characteristics
cycle begins when the Product Owner defines that have been approved by a recognized body
and prioritizes the Product Backlog. (This can of experts such as the ISO.
also be known as Sprint.)
statistical sampling
SS A technique that is used to determine
(Start-to-Start) The precedence relationship characteristics of an entire population based on
between two activities where the predecessor actual measurement of a representative sample
activity must start before the successor activity of that population.
can start. It can be expressed as, “Activity A
must start before Activity B can start.” statistical sampling process
Dividing sampling data into two categories—
staffing management plan attribute and variable—each of which is
A subsidiary plan of the human resources plan gathered according to sampling plans.
that forecasts the staff who will work on a
project, where they will be needed, how they strategic relevance
will be recruited, and when they will be Determines whether the project should be
released from the project. done and requires that the desired future state
Glossary
established in the project concept definition is tailoring

aligned with, coordinated with, or in support of The act of determining which processes are
the organizational strategic objectives set by appropriate for any given project.
senior leadership.
TCPI
subjective probability (To-Complete Performance Index) An
Probability based on people’s opinions, which estimate that is derived by dividing the
may be shaped by information, experience, and budgeted cost of remaining work by the
attitude. remaining project budget.
subproject team logistics

An independently manageable component of The practice of providing materials and
an existing project. facilities needed by the team to accomplish
their tasks.
successor activity
When sequencing two activities, the activity team-building activities
that must take place after to the other and is Specific functions or actions taken to help the
driven by the relationship. team to develop into a mature, productive
team.
summary activity
A group of related activities that are reported team-building strategies
as an aggregate activity. See "team-building activities."
sustainment teaming agreements

(of a product) It ensures that a project's end A legal contractual agreement between two or
product is maintained so that the product is in more parties to form a partnership, joint
operable condition irrespective of whether or venture, or other arrangement as defined by
not the product is used by the end user. the parties to meet the requirements of a
business opportunity.
SV
(Schedule Variance) The measured difference technical feasibility
between the actual completion of an activity A feasibility study to analyze the hardware,
and the planned or scheduled completion of an software, facilities, and databases needed for a
activity. The formula for calculating SV is EV proposed project.
– PV = SV.
technical performance measurements
SWOT analysis Measurements used to identify the overall
The process of examining the project from the technical progress of a project by comparing
perspective of strengths, weaknesses, the actual versus planned parameters related to
opportunities, and threats. the overall technical progress of the project.
system flowchart technical requirements

See "process flowchart." The technical needs that are crucial for a
project.
T&M contract
(Time and Material contract) A type of term contract
contract that includes aspects of both fixed- A type of contract that engages the vendor to
price and cost-reimbursable contracts. The deliver a set amount of service—measured in
buyer pays the vendor a negotiated hourly rate staff-hours or a similar unit—over a set period
and full reimbursement for materials used to of time.
complete the project.
threats
See "negative risks."
Glossary
three-point estimating triple constraints

A method of activity duration estimating in They are limitations that concern scope, time,
which three types of estimates are incorporated and cost.
into a singular duration estimate scenario: most
likely, optimistic, and pessimistic. UCL
(Upper Control Limit) The top limit in quality
tolerances control for data points above the control or
The measurement values that determine if a average line in a control chart.
product or service is acceptable or
unacceptable. uniform distribution PDF
A visual depiction of a PDF in which all
top-down estimating outcomes are equally likely to occur so that the
See "analogous estimating." data is shown in a straight line.
total float urgent risks

The total amount of time that an activity can Risks that require immediate attention.
be delayed without delaying the project finish
date. It is obtained by subtracting an activity's use case analysis
EF from its LF or its ES from its LS. A method for designing information systems
by breaking down requirements into user
TQM functions. Each use case is an event or
(Total Quality Management) An approach to sequence of actions performed by the user.
improve business results through an emphasis
on customer satisfaction, employee user stories
development, and processes rather than on In Agile methodology, these are the customer
functions. requirements or features. Each user story
emphasizes the functionality of the feature and
training how it adds to the final product.
An activity in which team members acquire
new or enhanced skills, knowledge, or VAC
attitudes. (Variance at Completion) It is the difference
between the BAC and the EAC. The formula
transition plan to calculate VAC is BAC - EAC.
A document that describes how the outputs of
a project will be transferred either to another variable sampling data
organization or to a functional group within Data that is measured on a continuous scale,
the performing organization. such as time, temperature, or weight.
trend analysis variance

The process of examining project results over The quantifiable deviance or amount of
time to determine if performance is improving departure from the expected results for any
or deteriorating. component of product and service being
developed, including quality, schedule, and
triangular distribution PDF cost.
A visual depiction of a PDF in which the data
is skewed to one side, indicating that an activity variance analysis
or element presents relatively little risk to The analysis of variance from the original
project objectives. scope baseline or the quantification of
departure from expected results.
triggers
Warning signs or indications that a risk is vendor audit
about to occur in a project. Conducted by the buyer to verify compliance
in the vendor's work processes or deliverables.
Glossary
The goal of the audit is to establish a record warranty

that may be used to shape procurement A promise, explicit or implied, that goods or
practices for current and future projects. services will meet a predetermined standard.
The standard may cover reliability, fitness for
vendor bid analysis use, safety, and so on.
A cost estimation technique based on the bids
obtained from vendors. warranty of fitness for purpose
Implied warranties that require goods to be fit
vendor management for the usage that was intended by the buyer.
The management technique that is used to
obtain resources, such as people, facilities, warranty of merchantability
equipment, and materials, for the project Implied warranties that require goods to be fit
through an external organization, while for ordinary usage.
developing, maintaining, and improving
relationships with the vendors. WBS
(Work Breakdown Structure) A logical
vendor proposals grouping of project deliverables arranged in a
Responses submitted by potential vendors that hierarchical structure that defines the total
are prepared in accordance with the scope of work required to complete the
requirements stated in the procurement project.
documents.
WBS dictionary
vendors An auxiliary document containing details about
External parties who enter into a contractual each element in the WBS.
agreement with the organization and provide
components or services needed for the project. weighted factor
Seller, contractor, and supplier are also used A decision model that applies a multiplier
when referring to vendors. based on importance to each criterion, which is
factored into the scoring.
verified deliverables
Project products or results that are completed weighted scorecard
and verified for their correctness while One type of weighting system that groups
performing quality control. evaluation criteria into general categories and
assigns a numerical weight to each category. A
virtual team vendor is rated on a scale of zero to five for
A team that is distributed across multiple each of the technical criteria. These numbers
locations. Some virtual teams have occasional are totaled and then multiplied by the
physical meetings, while others may never meet weighting factor to determine the weighted
face-to-face. score for that category.
visual weighting system

This prototyping model enables you to check A method for quantifying qualitative data to
the design and imitate the appearance, color, minimize the influence of personal bias on
and surface textures of the product, but will source selection.
not contain the functions of the final product.
what-if scenario analysis
waiver An analysis method that allows you to plan for
The giving up of a contract right, even unexpected issues or problems that will
inadvertently. interfere with the schedule.
walkthrough work authorization system

See "inspection." A tool for communicating official permission
to begin work on an activity or work package.
Glossary
work flow analysis

A technique that formally documents the
manner in which work gets done and displays
that work in a flowchart.
work package
The smallest, most granular deliverable that is
displayed in the lowest-level component of the
WBS.
work performance information

Periodically collected information about
project activities being performed to
accomplish the project work.
Glossary
Index
8/80 rule 106 basics of probability 216

80/20 rule 386 basis of estimates 161
benchmarking 191
benefit measurement models 47
A bidder conferences 327
AC 369 bottom-up estimating 127
accepted deliverables 416 breach of contract
acquisition 297 defined 409
action items 312 types 411
activity budget forecasts 353
and work packages 105 burndown charts 36
attributes 107 business case 58
cost estimates 161 business partners 8
dependency 112 business requirements 45
list 106 business risk
resource requirements 123 types 215
activity dependency types 112 vs. insurable risk 215
Actual Cost, See AC
administrative closure 424 C
Agile project management 31
alternatives analysis 122 capital budgeting 47
alternatives identification 92 cause-and-effect diagrams 189
analogous estimating 126 causes of variance 383
anticipatory breach 411 CCB 274
appeals 405 cease-and-desist letter 409
appraisal costs 187 Change Control Board, See CCB
artifacts 427 change control systems 275
assumptions analysis 228 change management 345
attribute sampling data 389 change requests 277
auditing 426 checklist
audits 362 analysis 227
defined 187
claims 405
B closed procurements 419
balanced scorecards 352 closure meetings 426
baselines 155 code of accounts 99
co-location 304 crash cost plotting methods 149

communication crashing 148
methods 200 criteria profiling 48
models 201 critical activities 144
requirements 206 critical chain method 139
requirements analysis 206 critical path 134
technology 201 Critical Path Method, See CPM
communications cultural feasibility 49
management plan 76 customers 6
completion contracts 336
components D
of an expectations mapping matrix 321
of a project charter 60 dashboards 352
of a staffing management plan 181 DCF 47
of the scope statement 90 debriefing 426
composite organizational structure 25 decision tree
conditional branch 117 analysis 242
conditional diagramming method 117 defined 47
configuration management 277 decomposition 99
conflict management delaying 150
approaches 310 deliverables 106
defined 310 Delphi technique 48
conformance costs 187 dependency determination 113
considerations of lessons learned 425 Design of Experiments, See DOE
contingency Discounted Cash Flow, See DCF
allowances 167 discretionary dependency 112
plan 248 documentation reviews 227
reserves 126, 248 DOE 192
contingent response strategies 248 duration 104
contract
change requests 408 E
defined 332 Earned Value, See EV
types 333 Earned Value Management, See EVM
control chart 190 effect-based risk classification 214
cost aggregation 167 effort 104
cost baselines 166 EMV analysis 243
cost-benefit analysis 50 end-users 6
cost control charts 375 enterprise environmental factors 22
cost estimate types 160 entry/exit criteria 108
cost management plan 74 estimating techniques
cost of quality 187 advantages and disadvantages 161
Cost Plus Award Fee Contracts EV 368
CPAF 335 EVM
Cost Plus Fixed Fee Contracts, See CPFF measures 369, 375
Cost Plus Incentive Fee Contracts, See overview 367
CPIF expectations mapping matrix components
Cost-reimbursable contracts 335 321
CPAF 335 Expected Monetary Value analysis, See
CPFF 335 EMV analysis
CPIF 335 expert judgment 22
CPM 138 express warranty 410
Index
external dependency 112 histograms 385

external failure costs 187 historical information 427
human resource plan 75
F
facilitated workshops 81 I
factors of organizational culture 20 IFB 268
Failure Mode and Effects Analysis, See FMEA immaterial breach 411
fast-tracking 148 impact analysis 347
feasibility analysis 48 impact scale 219
FF 113 implied warranty 410
FFP 334 independent estimates 330
final product, service, or result transition 416 information-gathering techniques 226
Finish-to-Finish, See FF inspections 362
Finish-to-Start, See FS insurable risk
Firm Fixed Price Contracts, See FFP types 215
first-time/first-use 50 vs. business risk 215
fixed price contract 334 integrated change control 274
Fixed Price Incentive Fee Contracts, See FPIF internal dependency 113
Fixed Price with Economic Price Adjustment internal failure costs 187
Contracts, See FP-EPA Internal Rate of Return, See IRR
float 135 interpersonal skills 301
flowchart 188 interviewing 81
FMEA 292 Invitation for Bid, See IFB
focus groups 81 IRR 47
force majeure clause 410 ISO 9000 series 186
forecasting methods 353 issue log 312
formal acceptance of project work 348 issue register 312
form study model 15
FP-EPA 334 K
FPIF 334
free float 137 Key Performance Indicators, See KPIs
FS 113 Key Performance Parameters, See KPPs
functional managers 8 KPIs 352
functional model 15 KPPs 352
functional organizational structure 24
functional requirements 45 L
fundamental breach 411 lag 114
funding limit reconciliation 171 LCL 190
lead 115
G lease, rent, or buy decision 255
Gantt charts 140, 370 legal concepts 409
GERT 117 lessons learned
Graphical Evaluation Review Technique, See considerations 425
GERT reports 425
ground rules 304 letter of intent 332, 409
group decision-making techniques 83 levels
of risk tolerance 223
of uncertainty 220
H loops 117
hammock activity 117 Lower Control Limit, See LCL
Index
M P
make-or-buy analysis 254 parametric estimating 127
management Pareto
procurement 254 analysis 386
reserves 126 chart 293, 386
mandatory dependency 112 payback period 47
material breach 411 payment systems 405
mathematical models 47 PDF 216
matrix organizational structure 25 PDM 116
mean 216 performance report
median 216 defined 354
Memorandum of Understanding 332 types 355
milestones phase-gate reviews 16
defined 107 phase-to-phase relationship types 16
lists 108 Planned Value, See PV
Monte Carlo analysis 242 PMIS 286
PMO 5, 7
N PO 334
portfolio managers 6
NDA 409 portfolios 3
negative positive risk
risks 214 defined 214
risk strategies 247 strategies 247
negotiated settlements 419 pre-assignment 298
negotiations 298 Precedence Diagramming Method, See PDM
Net Present Value, See NPV precedence relationships
networking 180 defined 113
non-conformance costs 187 types 113
non-disclosure agreement, See NDA predecessor activity 113
normal distribution PDF 217 prevention costs 187
NPV 47 probability
and impact risk rating matrix 234
O basics 216
objective probability 216 distribution 216
ongoing risk assessment process 236 scales 216
operational relevance 44 Probability Density Function, See PDF
operations 4 process
operations managers 8 analysis 292
opportunities 214 flowchart 188
organizational cultures and styles 20 improvement plan 75
organizational process assets 21 improvement planning 193
organizational structures of project management 12
defined 23 procurement
organizational structure types 24 audits 419
organizational theory 23 contracts 335
organization chart 23 documents 267, 402
outsourcing 254 management 254
ownership 180 management plan 76
negotiation 331
SOW 265
product
Index
analysis 92 project stakeholders

reviews 362 defined 5
training events 281 types 6
transition 280 project team 8
program managers 6 proof-of-principle model 15
programs 3 proposal evaluation techniques 330
progressive elaboration 17 prototype 52
project prototyping models 14
change categories 276 published estimating data 123
charter components 60 Purchase Order, See PO
charters 59 PV 367
coordinator 7
defined 2 Q
deliverables 90
governance 15 Q-sorting 48
interfaces 23 qualified vendors
life cycle phases 13 defined 326
life cycles 12 list 326
meetings 319 qualitative criteria 46
objectives 80 qualitative risk analysis 232
phases 12 quality
prototyping 14 assurance techniques 293
requirements 45 assurance tools 292
resources 121 audits 291
risk management process 220 audit topics 291
risk ranking 241 control measurements 383
risk response audits 395 defined 184
schedule network diagram 116 management plan 74
schedules 134 metrics 192
scope statement 89 process 184
selection 46 quantitative analysis methods 241
selection criteria 46 quantitative criteria 46
stages 15 quantitative risk analysis 240
status meetings 394
projectized organizational structure 25 R
project management RAM 178
defined 2 random causes of variance 383
estimating software 161 rating system 47
plans 72 RBS 221
processes 12 records management system 405
software 123 regulations 186
team 7 relative authority 28
Project Management Information System, See reporting systems 354
PMIS Request for Bid, See RFB
Project Management Office, See PMO Request for Information, See RFI
project manager Request for Proposal, See RFP
defined 7 Request for Quote, See RFQ
roles 9, 296 requirements documentation 84
project selection requirements management plan 73
decision models 47 Requirements Traceability Matrix, See RTM
methods 46 reserve analysis 126
Index
resource sensitivity analysis 242

breakdown structure 123 Service Level Agreement, See SLA
calendars 122 SF 114
leveling 140 significance 384
Responsibility Assignment Matrix, See RAM simulation 242
reviews 362 Six Sigma limit 385
reward and recognition systems 305 SLA 332
rewarding individual performance 305 slack 135
RFB 267 SME 49
RFI 267 source-based risk classification 215
RFP 268 source selection criteria 260
RFQ 268 SOW 55
risk special causes of variance 383
analysis 222 specifications 256
categories 221 sponsor 6
data quality assessment 233 SS 113
defined 214 staffing management plan components 181
impact 233 staffing management plans 180
impact assessment 233 stakeholder
management plan 76 analysis 64
probability 233 analysis matrix 65
reassessment 394 expectations matrix 320
registers 229 expectations matrix mapping 320
related contract decisions 248 management strategy 65
tolerance 222 register 64
tolerance levels 223 standard deviation 216
urgency assessment 235 standards 186
Risk Breakdown Structure, See RBS Start-to-Finish, See SF
root cause analysis 384 Start-to-Start, See SS
RTM 84 Statement of Work, See SOW
run charts 387 statistical sampling
defined 388
S process 388
strategic relevance 44
scatter diagrams 387 subjective probability 216
scenarios 52 Subject Matter Expert, See SME
schedule subprojects 2
baselines 155 successor activity 113
compression 148 summary activity 117
control charts 370 sustainment 280
diagramming notations 135 SV 367
management plan 74 SWOT analysis 228
network analysis 138 system dynamic models 117
scheduler 8 system flowchart 188
Schedule Variance, See SV
scheduling tools 367
scope T
creep 348 T&M contract 335
management plan 73 tailoring 13
statement 89 team-building
statement components 90 activities 303
scoring system 47 strategies 303
Index
team development stages 301 dictionary 99

teaming agreement 256 weighted factor 48
technical feasibility 49 weighted scorecard 331
technical performance measurements 343 weighting systems 330
technical requirements 45 what-if scenario analysis 139
term contracts 336 work authorization systems 288
threats 214 Work Breakdown Structure, See WBS
three-point estimating 127 workflow analysis 51
Time and Material contract, See T&M contract work package 98
tolerances 384 work performance
top-down estimating 126 information 287
total float 136 measurements 363
Total Quality Management, See TQM
TQM 185
training 303
transition plans 280
trend analysis 396
triangular distribution PDF 218
triggers 226
U
UCL 190
uncertainty levels 220
Upper Control Limit, See UCL
urgent risks 235
use case analysis 52
V
variable sampling data 389
variance
analysis 363
defined 363
vendor
bid analysis 161
defined 8
proposals 330
verified deliverables 362
virtual teams 299
visual model 15
W
waiver 409
walkthroughs 362
warranties of fitness for purpose 410
warranties of merchantability 410
warranty 409
warranty types 410
WBS
defined 98
Index
ISBN-13 978-1-64274-113-1
ISBN-10 1-64274-113-2
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The Official CompTIA® Project+®

Student Guide (Exam PK0-004)

Course Edition: 2.0

Laurie A. Perry, Project+, Author

Lesson 1: Defining Project Management Fundamentals... 1

Lesson 2: Initiating the Project......................................43

Lesson 3: Planning the Project...................................... 71

Lesson 4: Preparing to Develop the Project Schedule............ 97

Lesson 5: Developing the Project Schedule......................... 133

Lesson 6: Planning Project Costs........................................ 159

Lesson 7: Planning Human Resources and Quality

Lesson 8: Communicating During the Project .....................199

Lesson 9: Planning for Risk.................................................213

Topic C: Perform Qualitative Risk Analysis............................................ 232

Lesson 10: Planning Project Procurements.......................... 253

Lesson 11: Planning for Change and Transitions.................273

Lesson 12: Executing the Project........................................ 285

Lesson 13: Executing the Procurement Plan........................ 325

Lesson 14: Monitoring and Controlling Project Performance

Lesson 15: Monitoring and Controlling Project Constraints. 361

Lesson 16: Monitoring and Controlling Project Risks.......... 393

Lesson 17: Monitoring and Controlling Procurements......... 401

Lesson 18: Closing the Project............................................415

Appendix A: Taking the Exams........................................................... 433

Appendix B: Mapping Course Content to CompTIA® Project+® Exam

How to Use This Book

A Note provides additional information, guidance, or hints about a topic or task.

Example: The Intranet Website Creation Project

Example: Subprojects in a Car Project

Responsibilities of a Project Manager

Example: A Computer Service Expansion Program

Figure 1-1: A portfolio and its contents.

Example: A Company Portfolio

Programs vs. Portfolios

One-time effort Ongoing effort

Example: Operations in a Computer Manufacturing Company

Example: A PMO at a Broadband Services Company

Example: Project Stakeholders Involved in Constructing a Power Plant

Project Stakeholder Types

Project Stakeholder Description

Customers/end-users Customers are individuals or organizations who will receive the

Project Stakeholder Description

Project Stakeholder Description

Positive and Negative Stakeholders

The Project Manager Role

2. Which statements describe the responsibilities of a PMO? Select all that

4. Which statement best describes a program?

6. Which of the following is a temporary endeavor that creates a unique product,

The Project Life Cycle

Project Life Cycle Characteristics

Project Management Processes

Project Life Cycle Phases (Process Groups)

Figure 1-2: The process groups in a project life cycle.

Phase (Process Group) Involves

Project Life Cycle Outputs

Process Group Outputs

Initiating • Project purpose • Assignment of a project manager,

Model Enables You To

Figure 1-3: The three-stage project of constructing a stadium.

Governance Activities in a Project