Pmp prep 5th ed-bmc master-oct 2013

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013

PMP® Certification Test PreparationPMBOK® Fifth Edition

Presents


The PMP® Certification Test Preparation

Objectives

Provide a framework for structuring the Project Management Body of Knowledge;

Identify the most generally accepted practices within the discipline of project management;

Reveal “Exam Tips”;

Explain how to apply for and take the PMP® exam

Page i

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page iii

The World of Business Management Consultants

BristolPhoenix

Chicago

Hong Kong

BeijingShanghai

TokyoTaipeiMilan

Lisbon

Mumbai

WarsawFrankfurt

Houston

Brussels

Istanbul

Singapore

SeoulMoscow

Washington DC

Vancouver

Atlanta

Bristol

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page iv

Our Learning Institutions


Three Day Course Schedule

Page vii

Day Two

Planning Processes (continued)

Practice Test

Executing Processes

Day Three

Monitoring & Controlling Processes

Practice Test

Closing Processes

Professional Responsibility

Preparing for the PMP

Day One

Introduction and overview of PMI, PMP and PMBOK

Initiating Processes

Planning Processes

Sample Test


Introduction and Overview of the PMP®


Organization of this Workbook

The PMBOK® Fifth Edition is organized by Knowledge Area.

We believe that people learn the same way they work on-the-job: by project phases.

So, this Test Preparation workbook is organized

chronologically, start to finish, from Initiating a project through to Closing the project.

Page 1


Planning Processes

Executing Processes



Page 1

Organization is Chronological

Closing Processes


New Test and New PMBOK® Edition

Page 2

The PMBOK® 5th Edition was released in January 2013. The test changed again on July 31, 2013. A new Knowledge Area was introduced: Stakeholder Management.


Qualification Requirements

A minimum of 4500 hours PM experience within the past 8

years


years

35 contact hours (PDU’s) of PM

education

+ =

Graduate, 4-Year Degree

Non-Graduate, or 2-Year Degree

Eligibility to take the PMP®

examination

Page 2

This Course ID is E1078 and Awards 24 PDU’s

The T&T CD ID is E1091 and Awards 11 PDU’s

PMTestOnline is C4070 and Awards 11 PDU’s


PMBOK Fifth Edition and the New Test

The PMBOK Fifth Edition was introduced in January 2013, and the new fifth edition test started on July 31, 2013.

The PMP examination consists of 200 questions, with a four hour time limit

That’s 72 seconds (or 1.2 minutes) per question

This training course will give you everything you need,with a little self-study, to pass the PMP® examination

Visit www.pmi.org, download PMP Certification Handbook

Page 2

http://www.pmi.org/


PMBOK 5th Edition PMP Test Domain Content

Project Initiation 13% Project Planning 24% Project Execution 30%Project Monitoring & Control 25%Project Closing 8%

Page 2

To pass, you need to get a minimum of 122

questions correct out of 200 questions (61%)

Pass rate on the 4th Edition test is about 74%


http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspxLog in with your User Name and PasswordFollow the instructions

Submit your application to Project Management Institute (PMI)

http://www.pmi.org/info/PDC_PMPHandbook.pdf

PMI ® may audit when you pay your exam fee to PMI. If you cancel or reschedule within 30 days of the test, there is a fee of $70; within 2 days, you forfeit the entire fee.

Control is through audit

Schedule a test date with Prometrichttp://www.prometric.com/PMI/default.htm

Apply to PMI to take the test,

Schedule a date with Prometric

Candidates have three (3) opportunities to pass the exam in one year. If they

do not pass any, they must wait one (1) year from the date of the last attempt.

Page 3


Types of questions to expect

You are advised that a major purchased part on your projectwill be delayed. What do you do?

A. Ignore it. It will go awayB. Notify your bossC. Let the customer know about it and talk over optionsD. Meet with the team and identify alternatives

Questions requiring experience more than study

D. Meet with the team and identify alternatives

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تجاهل

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بلغ



Study show that every time you double the production of“widgets”, unit cost goes down by 10%. Based on the study,the company concludes that the production of 4,000 “widgets”will cost $19,000. This illustrates:

A. Learning curve effectsB. Law of diminishing returnsC. The 80/20 ruleD. Bottoms up cost estimating

Information that does not matter (distractors)

A. Learning curve effects

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يوضح

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قطع

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تقليل



Questions designed to make you make you think carefully

The theory “optimum quality level is obtained whenIncremental revenue from product improvement equalsincremental cost to secure it” comes from

A. Quality control analysisB. Marginal analysisC. Standard quality analysisD. Conformance analysis

B. Marginal Analysis

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أفضل

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تزايدي

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الريع , الدخل

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يؤمن

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هامشي, حدي , حافي



Questions using unfamiliar words and expressions

Parking places, corner office/door, and a key to the executivebathroom are example of:

A. PerquisitesB. OverheadC. Herzberg’s motivatorsD. Entitlements

A. Perquisites (aka “Perks”)

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العلاوات ,الأجر الأضافي

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تكاليف عامة

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المحفزين

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تأهيل



Questions requiring understanding of the subject matter

Decomposing deliverables into smaller manageable activitiesIs complete when:

A. Project justification has been establishedB. Change requests have occurredC. Cost and duration estimates can be developed for each work

element at this levelD. Each work element is found in the WBS dictionary

C. Cost and duration estimates can be developedfor each work element at this level

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سهل الأنقياد



Questions requiring study (memorization) more than experience

Conflict resolution techniques that may be used on a projectinclude:

A. Withdrawing, compromising, controlling, and forcingB. Controlling, forcing, smoothing, and withdrawingC. Confronting, compromising, smoothing, and directingD. Smoothing, confronting, forcing and withdrawing

D. Smoothing, confronting, forcing and withdrawing

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تطلب

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إستظهار

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نزاع, صراع

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قرار

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إنسحاب

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تسوية

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سيطرة

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قوة, عنف

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مواجهة

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صقل ,توطئة, تنعيم, تسوية

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New thinking about a known topic

In a matrix organization, information dissemination is mostlikely to be effective when?

A.Information flows both horizontally and verticallyB.The communication flows are kept simpleC.There is inherent logic in the type of matrix selectedD.Project managers and functional managers socialize

A. Information flows both horizontally and vertically

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نشر, اشاعة, إعلان



Questions requiring calculation and knowledge of formulae

A project was estimated to cost $1.5 million and scheduled to last six months. After three months, the earn value analysis shows the following:

BCWP (EV) = $650,000BCWS (PV) = $750,000ACWP (AC) = $800,000

What are the schedule and cost variances?

A. SV = +$100,000 - - - CV = +$150,000B. SV = +$150,000 - - - CV = -$100,000C. SV = -$50,000 - - - - CV = +$150,000D. SV = -$100,000 - - - -CV = -$150,000

D. SV=-S100,000 : CV=-$150,000

Page 6



Questions designed to take up your time

You’ve been engaged to manage a project. The estimated cost of the project is $1,000,000. The project sponsor has approved this amount. Your earned value calculations indicate that the project will be completed on time and under budget by $200,000. Based on your calculation, your personal profit will decrease by $2,000. Given estimated decrease in personal profit, what action should you take?

A. Invoice for the full $1,000,000 based on contract and to cover profitB. Add tasks to improve the outcome and increase the actual project costC. Inform the end-user that you can add features to the project in order to

use the entire budgetD. Communicate the projected financial outcome to the project sponsor

D. Communicate the outcome to the project sponsor

Page 6



Questions using acronyms you need to understand

There are several different types of network analysis tools for determining critical path. Which method for analysis is also called Method of Moments?

A. GERTB. CPMC. PERTD. Monte Carlo

C. PERT (Program Evaluation and Review Technique)

Extra

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لحظات

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page 17

Mapping Process Groups to Knowledge AreasProcess Groups

Knowledge AreasInitiating Planning Executing Closing

Monitoring &

Controlling

4. Project IntegrationManagement

4.2 Develop ProjectManagement Plan

4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated

Change Control

5. Project ScopeManagement

5.1

Collect Requirements5.2

Define Scope

5.5 Validate Scope

5.6 Control Scope

6. Project TimeManagement

6.1

Define Activities6.2Sequence Activities6.3Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule

6.7 Control Schedule

7. Project CostManagement

7.2 Estimate Costs

7.3 Determine Budget

7.4 Control Costs

8. Project QualityManagement

8.1 Plan Quality Mgt. 8.2 Perform Quality

Assurance8.3 Control Quality

9. Project HumanResourceManagement

9.1 Plan Human

Resource Mgt.9.2 Acquire Project Team

9.3 Develop Project Team

9.4 Manage Project Team

10. ProjectCommunicationsManagement

10.1 Plan Communications

Management 10.2 Manage Communications

11. Project RiskManagement

11.1 Plan Risk Management

11.2 Identify Risks

11.3 Perform QualitativeRisk Analysis

11.4 Perform QuantitativeRisk Analysis

11.5 Plan Risk Response

11.6 Control Risks

12. Project ProcurementManagement

12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements

Project Work 4.1 Develop Project Charter

13.1 Identify Stakeholders

5.4 Create WBS

6.4

4.6 Close Project

or Phase

13.3 Manage Stakeholder

Engagement

13.4 Control Stakeholder

Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.

10.3 Control Communications

13. Project Stakeholder

Management13.2 Plan Stakeholder

Management

PMBOK 5th Edition,

Table 3-1, Page 61

(47 Processes)


Mind Maps: Integration

Handout


Mind Maps: Scope

Handout

Scope

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Handout

Time


Mind Maps: Cost

Handout


Mind Maps: Quality

Handout

Project Quality Management


Mind Maps: Human Resource

Handout


Communication


Risk


Procurement


Stakeholders


So, what is a project?

• A project is a temporary endeavor undertaken to create a unique product, service or result.

• A program is a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not obtainable from managing them individually.

• A portfolio is a collection of projects, programs, and operations managed as a group to achieve strategic objectives.

• An operation is an organizational function performing the ongoing execution of activities that produce the same product or provide the same repetitive service

Page 7


Scope(Planned Results)

Resource(Budget)

Schedule(Time)

PMBOK 5th Edition, Page 6The Triple Constraint, plus some.

Page 8


Organizational Governance: Linkages

Strategic Planning

Management by Projects

Management of

Operations

Portfolio

Management

Program

Management

Project

Management

Processes,

Tools, Metrics

Page 8

PMBOK 5th Edition, Page 7


Organizational Governance: Linkages

Page 9

Organizational Resources

VISION

Mission

Organizational Strategy & Goals

High-Level Operations Planning

& Management

Project Portfolio Planning &

Management

Management of On-Going Operations

(recurring activities)

(producing value)

Management of Authorized Programs & Projects

(projectized activities)

(increasing value production capability)


Project Programs Portfolios

Projects have defined objectives. Scope is

progressively elaborated throughout the

project life cycle.

Project managers expect change and

implement processes to keep change

managed and controlled.

Project managers progressively elaborate

high-level information into detailed plans

throughout the project life cycle..

Project managers manage the project team

to meet the project objectives.

Success is measured by product and project

quality, timeliness, budget compliance, and

degree of customer satisfaction..

Project managers monitor and control the

work of producing the products, services,

or results that the project was undertaken to

produce.

Programs have a larger scope and provide

more significant benefits.

Program managers expect change from

both inside and outside the program and

are prepared to manage it.

Program Managers develop the overall

program plan and create high-level plans to

guide detailed planning at the component

level.

Program managers manage the program

staff and the project managers; they

provide vision and overall leadership.

Success is measured by the degree to

which the program satisfies the needs and

benefits for which it was undertaken..

Program managers monitor the progress of

program components to ensure the overall

goals, schedules, budget and benefits of the

program will be met.

Portfolios have an organizational scope

that changes with the strategic objectives

of the organization.

Portfolio managers continuously monitor

changes in the broader internal and

external environment.

Portfolio managers create and maintain

necessary processes and communication

relative to the aggregate portfolio.

Portfolio managers may manage or

coordinate portfolio management staff, or

program and project staff that may have

reporting responsibilities into the aggregate

portfolio.

Success is measured in terms of aggregate

investment performance and benefit

realization of the portfolio.

Portfolio managers monitor strategic

changes and aggregate resources

allocation, performance results, and risk of

the portfolio.

Organizational Project Management

Comparison: Project, Program & Portfolio

Scope

Change

Planning

Management

Success

Monitoring


How do projects come about?

Projects can come about in the following ways:

Market demandStrategic opportunitySocial needEnvironmentalCustomer requestTechnological advanceLegal requirement

Page 10

More on selection methods later

PMBOK 5th Edition, Page 10


The Project Management Office (PMO)

A PMO is an organizational structure:• standardizes project governance processes,• facilitates the sharing of resources, • develops methodologies, tools and techniques.

Responsibilities can range from providing support functions to direct management of projects.

Projects supported by a PMO may not be related, other than being managed together

Project Manager

focuses on specific project objectives controls assigned project resources manages the constraints

PMOs

manages major program scope changes optimizes shared resources across all projects manages methodologies, standards, overall risk

Page 12


Types of Project Management Offices (PMO)

• Supportive. Consulting role , e.g., supplying templates, best practices, training, computer information, and lessons learned from other projects. Control from this type of PMO is low.

• Controlling. Provide support and require compliance, e.g., PM methodologies, specific templates-forms-tools, or conformance to governance. Control from this type of PMO is moderate.

• Directive. Control projects by managing projects. Control from this type of PMO is high.

Page 12

ExamTip

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داعمة


PBOs can be created by various organizations (functional, matrix, projectized).

They can diminish hierarchy since work is measured by results rather than position or politics.

PBOs do a majority of their work as projects rather than as a function, but can have functional support areas.

Project-Based Organizations (PBO)

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يقلل

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التسلسل الهرمي

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بالاحرى


Project Managers

Page 15

Role of the Project Manager

Role is to achieve project objectives. Understanding tools and

techniques is not enough. It requires general management

skills, and:

Knowledge of project management,

Performance or accomplishment,

Personal behavior and effectiveness when performing

the project including attitude, personality characteristics,

and leadership.

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موقف,سلوك, طريقة


The Role of the PMBOK®

PMBOK® Guide

Project Management

Body of Knowledge

Application Area

Knowledge,

Standards and

Regulations

Interpersonal

Skills

Understanding

the Project

Environment

General

Management

Knowledge and

Skills

Page 15


Organizational Structures

Project Characteristics

Functional ProjectizedMatrix

Weak Matrix Balanced Matrix Strong Matrix

Little or None

Little or None

Functional Manager

Project Manager’s Authority

Resource Availability

Who Manages the Budget?

Project Manager’s Role

Project Management Administrative Staff

Part-Time

Part-Time

Part-Time

Part-Time

Full-Time Full-Time Full-Time

Part-Time Full-Time Full-Time

Functional Manager

MixedProject

ManagerProject

Manager

Low

Low

Low to Moderate

Low to Moderate

Moderate to High

High to Almost Total

Moderate to High

High to Almost Total

Organizational Structures PMBOK® Fifth Edition, Page 22

Page 16


Strong matrix: The balance of power rests with the project manager. Weak matrix: The balance of power rests with the functional manager. Balanced matrix: The power is balanced between the functional and the project managers. Tight Matrix: Beware here. It has nothing to do with the matrix organization. It refers to

locating the project team’s offices in the same room. Watch for this one!

Exam questions deal with matrix forms.ExamTip

Organizational Influences PMBOK® Fifth Edition, Page 22

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احترس


Organizational Structure PMBOK® Fifth Edition, Page 22

Page 18

Chief Executive

FunctionalManager

FunctionalManager

FunctionalManager

Staff

Staff

Staff Staff

Staff

Staff

Staff

Staff

Staff

Staff engaged in project activities

Project Coordination

Functional Organization



Page 18

Weak MatrixChief

Executive

FunctionalManager

FunctionalManager

FunctionalManager

Staff

Staff

Staff Staff

Staff

Staff

Staff

Staff

Staff





Page 19

Balanced MatrixChief

Executive

FunctionalManager

FunctionalManager

FunctionalManager

Staff

Staff

Project Manager

Staff

Staff

Staff

Staff

Staff

Staff




Manager of Project Managers


Page 19

Strong MatrixChief

Executive

FunctionalManager

FunctionalManager

FunctionalManager

Staff

Staff

Staff Staff

Staff

Staff

Staff

Staff

Staff

Staff engaged in project activitiesProject

Coordination

Project Manager

Project Manager

Project Manager



Page 20

ProjectizedChief

Executive

ProjectManager

ProjectManager

ProjectManager

Staff

Staff

Staff Staff

Staff

Staff

Staff

Staff

Staff

Staff engaged in project activitiesProject

Coordination



Page 20

CompositeChief

Executive

FunctionalManager

FunctionalManager

FunctionalManager

Staff

Staff

Staff Staff

Staff

Staff

Staff

Staff

Staff

Staff engaged in project activities Project A Coordination

Manager of Project Managers

Project Manager

Project Manager

Project Manager

Project B Coordination


The Organization and it’s Environment

Enterprise Environmental Factors (EEF)EEF are conditions not under the control of the team. They include government or industry standards, organization culture, infrastructure (facilities & equipment), human resources, marketplace conditions, risk tolerance, politics, communication channels, data bases, and PMIS. What is out there?

These are INPUTS to Processes

Page 21

Organizational Process Assets (OPA)OPA are assets available to the project team: (1) processes and procedures, and (2) corporate knowledge bases. They include plans, processes, policies, procedures, lessons learned, historical information, schedules, risk data, and earned value data. What have we got?

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البنية التحتية


Stakeholders are persons or organizations who may affect, be affected, or perceive that that they are affected by a decision, activity or outcome of the project. They: • May be actively involved in the project or have interests affected by the project, • May exert influence over the project/team to satisfy strategic business objectives.

Project Governance is an oversight function aligned with the organization’s governance model and includes the project life cycle. Governance is alignment of the project with stakeholders’ needs or objectives. It is critical to management of stakeholder engagement, maximizing the value of project outcomes, and aligning projects to the business strategy.

The Project Manager should manage the influences of stakeholders regarding project requirements to ensure successful outcome.

Pages 22-23

Who are your stakeholders? Can you name them? See PMBOK® Fifth Edition, Pages 32-33

Stakeholders

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بذل

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وظـــفة الرقابة

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The Project Sponsor

The Project Sponsor is the person or group who provides resources and support for the project and is accountable for enabling success. The sponsor promotes the project and serves as spokesperson to management. They play a significant role in project initiation and the development of the initial scope and charter

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مسؤول

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يعزز

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ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ

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Starting

a Project

Organizing

and

Preparing

Executing the Work Closing a

Project

Co

st a

nd

Sta

ffin

g L

evel

Time

Project

Charter

Project

Management Plan

Accepted

Deliverables

Archived

Project

Documents

Project Life Cycle

Page 24


Stakeholders Influence Over Project Performance

Page 24

Value

Time

Concept Planning Execution Close-Out

Amount at Stake

Uncertainty (Risk)

Influence of Stakeholders

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مفهوم

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كمية على المحك


Process Groups are not Project Phases

Phased System Development Life Cycle (SDLC) to Launch

DevelopmentProduction

TechnologyTrials Production

Laboratory

ModelLAUNCHIDEA

Feasibility

Study

INPUTS:

Market Basic Requirements

Knowledge Concept Specification Marketing

Technology Department’s Key Technical Proof of Prototype Beta Test Production Product

Appreciation Expertise Risks Principle Documentation Models Documentation Quantity

Basic Requirements Proof of Prototype Production User Product

Concept Specification Principle Product Documentation Reaction Quantity

Key Risk Beta Test

Assessment Models

OUTPUTS:

Project Phases or Life Cycle(Phase-end reviews of deliverables are called

Stage Gates, Phase Exits, or Kill Points)

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معرفة السوق

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تقدير, ادراك

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محاكمات

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اطلاق



Process Groups PMBOK® Fifth Edition, Pages 42-43

Links between Process Groups in a Phase

Planning Processes

Executing Processes


InitiatingProcesses

ClosingProcesses

Planning Processes

Executing Processes

Planning Processes

Executing Processes



Closing Processes

Plan Do

CheckAct

Walter Shewhart, modified

by Edwards Deming

ExamTip



Begin End

Project Lifecycle

Charter Handover

Phase 1 Phase 2 Phase 3 Phase 4

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سلم


Understand the Differences Between: PMBOK Fifth Edition, Pages 42-46

• Phase-to-Phase Relationships

• Predictive Life Cycles

• Iterative and Incremental Life Cycles

• Adaptive Life Cycles

Page 26

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تنبؤي

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التكيف


Overview of Project Integration Chapter 4 of the PMBOK®

by Knowledge Area

Page 28

4.1 Develop Project Charter

4.2 Develop Project Management Plan

4.3 Direct and Manage Project Work

4.4 Monitor and Control Project Work

4.5 Perform Integrated Change Control, and

4.6 Close Project or Phase


Initiating Process Groupby Chronology

Page 31


Process Groups


Monitoring &

Controlling




Change Control


5.1


Define Scope

5.5 Validate Scope

5.6 Control Scope


6.1




7.2 Estimate Costs


7.4 Control Costs





9.1 Plan Human









11.2 Identify Risks




11.6 Control Risks



Project Work4.1 Develop Project Charter


5.4 Create WBS

6.4

4.6 Close Project

or Phase


Engagement


Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.




Management

PMBOK® Fifth Edition, Page 61

Initiating




Initiation results in:

GO

NO GO

DECISION

Initiating Process Group

Page 30



Initiation: Project Integration Management

Outputs

Project charter

Tools & Techniques

Expert judgmentFacilitation techniques

Inputs

Project statement of workBusiness caseAgreementsEnterprise environmental factorsOrganizational process assets

Page 31



Develop Project Charter is the process of developing a document that formally

authorizes the existence of a projectand provides the project manager with the authority to apply organizational resources to project activities.

The project manager is assigned early in the project, during charter development.

ALWAYS before start of planning.

Page 31

ExamTip

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وجود



Page 32

CustomerRequirements

• Problem

• Opportunity

• Business Need

ProjectInitiation

• Commitment to go ahead

• Project Charter

• Project Manager assigned

Project

Planning

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التزام



Page 32

Input: Project Statement of Work (SOW)PMBOK® Fifth Edition, Page 68

• States the Business Need and Cost-Benefit analysis in the Business Case. What triggered the project?

• Documents the characteristics of the end product

• Is progressively elaborated throughout the project life cycle

• Includes the Strategic Plan, a factor when making project selection decisions

• Should describe both what the deliverable is and what it is not

• With the project scope statement, the SOW protects against both scope creep and feature creep

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اثار



Page 33

Input: Business Case, Strategic PlanPMBOK® Fourth Edition, Page 75

Senior management considerseach project’s contribution to thestrategic goals and its alignmentwith the strategic plan beforedeciding to undertake, continue,suspend, or terminate projects

Strategic planning analyzes an organization’s strengths, weaknesses,opportunities, and threats (SWOT) to determine long-range objectives andstrategies for reaching them. Strategic planning often involves predictingfuture trends, including the need for new products and services.

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تعليق



Page 33 & 34

Input: EEF and OPAPMBOK® Fifth Edition, Page 70

Enterprise Environmental Factors (EEF)Factors not under the control of the team that influence orconstrain the charter process. EEF include government or industrystandards, organization infrastructure, marketplace conditions, etc.What is out there?

Organizational Process Assets (OPA)OPA are standard processes, policies, and corporate knowledge:lessons learned, historical information, templates and otherdocuments.What have we got?

These are INPUTS to Develop Charter



Page 35

Output: Project CharterPMBOK® Fifth Edition, Page 71

ExamTip

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الشروط المسبقة


How do projects come about?

SelectedProjects

SuggestedProjects

Project Selection Techniques

Net Present ValueReturn on Investment

Internal Rate of ReturnBenefit/Cost RatioOpportunity Cost

Page 35


Project selection methods Economic Models

Net Present Value: net economic value (per year) of a project in terms ofpresent-year monies.

A higher overall net present value is better within cash flow constraints.

Expected Present Value: Risk-adjusted NPV

Return on Investment (ROI): income divided by investment.

A higher ROI is better.

Payback Period: the amount of time it will take to recover the cost of the

project. A faster payback period is better.

Internal Rate of Return (IRR) or Hurdle Rate:the rate of return for the investment in theproject. Organizations may have a minimum rateof return (or hurdle rate).

A higher rate of return is better

Page 37

ExamTip


Project selection methods Economic Models

Return on Investment (ROI) =

Internal Rate of Return (IRR) : Solve the NPV equation for “r” (hurdle rate)when present value of “cash in” equals present value of “cash out” (i.e., at breakeven)

Net Present Value (NPV) =

FV

(1+r)n

Where, FV = Future Valuer = Interest Raten = Number of Time Periods

Average Earnings After Tax

Average InvestmentARR(Accounting Rate of Return)

Benefit Cost Ratio : Benefits should exceed costs. The higher BCR wins.

=

Page 37

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التعادل


Project selection methods Example Question

ExamTip

Many things on the Exam are not in the PMBOK. A lot of these are cost questions. Only Present Value

shows up on more than one question.

Opportunity Cost:

“A” has NPV of $45K, “B” has NPV of $75K, what is the Opportunity Cost of selecting Project “B”?

Answer: $45K. Opportunity cost is what you gave up when you made your selection

Page 37

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net present value

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تخلى

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Exercise Net present Value

Page 38

TIME PERIOD (YR) AMOUNT ($)PRESENT VALUE AT 10% INTEREST RATE

1 50 45

2 100 83

3 300 225


PROJECT A PROJECT BWhich Project

Would You Pick?

Net Present Value

$95,000 $75,000 A

IRR 13% 17% B

Payback Period

16 months 21 months A

Benefit Cost Ratio

2.79 1.3 A

Exercise Accounting Standards

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Internal Rate of Return

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فترة الاسترداد

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Project Selection Methods Weighted Scoring

Si = sijwjj = 1

n1) determine the evaluation factors2) assign a numerical weight to each factor3) rate the projects on each criterion4) multiply each rating by its weighting5) total the weighted ratings to compute an overall score6) highest number project wins

Removes personal bias, is more objective, and considers relative importance of different evaluation factors

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انحياز

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$10,000

$12,000

$8,000

$12,000

$10,200}

$10,000}

Forced Choice: Decision makers

choose among alternatives, often by

pair-wise comparisons, selecting the

one preferred and discarding the rest.

Decision Trees: Define all the possible

outcomes, the probability of each, andits value. Choose the best alternative.

Project Selection Methods Decision Models

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الزوج الحكيم



Initiation: Project Stakeholder Management

Outputs

Stakeholder register

Tools & Techniques

Stakeholder analysisExpert judgmentMeetings

Inputs

Project charterProcurement documentsEnterprise environmental factorsOrganizational process assets

Page 40

PMBOK® Fifth Edition, Section 13.1, Page 393



• It is critical for project success toidentify the stakeholders early in theproject, and to analyze their levels of interest, expectations, importance and influence

• Stakeholders should be classified according to their interest, involvement and influence in theproject

Who are your stakeholders? Make sure you can name them?

Page 40

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Stakeholder Analysis Tools and Techniques

Pages 42 and 43

Position people on the Power/Influence Grid

Think about who is essential for support:

Who are the most influential people? How much will your project affect them? How are they likely to react to your project?Who is effected by the project’s objectives?

Think about how to identify all stakeholders:

Brainstorming (free or structured) Interviews Past Utilize the project team

Develop, Monitor, Focus, Stabilize

Influence

high

medium

low

ChangeAgent

BystanderResistor

Pow

er

LÖ

BG

AR

GU

JH

CF

AB

Note: The 5th Edition lists several classification models:• Power/Interest Grid• Power/Influence Grid• Influence/Impact Grid• Salience Model

Understand the similarities and differences.

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مؤثر

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اساسي

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العصف الذهني

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استقرار


Planning Process Group

Page 45


Process Groups


Monitoring &

Controlling




Change Control


5.1


Define Scope

5.5 Validate Scope

5.6 Control Scope


6.1




7.2 Estimate Costs


7.4 Control Costs





9.1 Plan Human









11.2 Identify Risks




11.6 Control Risks





5.4 Create WBS

6.4

4.6 Close Project

or Phase


Engagement


Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.




Management


Planning

4.2 Develop Project Management Plan5.1 Plan Scope Management5.2 Collect Requirements5.3 Define Scope5.4 Create WBS6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activity Resources6.5 Estimate Activity Durations6.6 Develop Schedule 7.1 Plan Cost Management7.2 Estimate Costs7.3 Determine Budget8.1 Plan Quality Management9.1 Plan Human Resource Management10.1 Plan Communications Management11.1 Plan Risk Management11.2 Identify Risks11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Response12.1 Plan Procurement Management13.2 Plan Stakeholder Management

24 Plans


Although the constraints of text and page layout force us todepict the planning process as a linear sequence of activities, thisis not true and probably should not be practiced as such in reality.Planning is, in fact, an iterative activity. The various planningprocesses interact with each other; later processes may cause youto rethink the execution and output of earlier processes.

Replanning at phase gates is called “progressive elaboration” or“rolling wave planning.”

Planning is done by the Project TeamExamTip

Planning is Iterative

Page 45


Don’t over-plan and don’t under-plan(Your challenge is to match the degree of planning to the demands of the project).

Document, distribute, and maintain the plan(You’re not the only one who is going to use the plan)

Page 46

Project Planning



Planning: Integration Management

Outputs

Project management plan

Tools & Techniques

Expert judgmentFacilitation techniques

Inputs

Project charterOutputs from other processesEnterprise environmental factorsOrganizational process assets

Page 47



Develop Project Management Plan is the process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan.

It is the central document that defines the basis of all project work.

Page 47


Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Plan Cost Management Estimate Costs

Determine Budget Plan Quality Management Plan Human Resource Management Plan Communications Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response Plan Procurement Management Plan Stakeholder Management

The other 23 planning processes are integrated to create the projectmanagement plan. Updates to any plans require an update to the PM plan. Thinkof the PM plan as a bucket into which all the other plans “drip” until it is full.

Input: Outputs from Other Processes

Output: The PM Plan

The Project Management Plan

Pages 45 & 49


Subsidiary Plans


Page 49

Documents that flow from these planning processes are called Subsidiary Plans. These documents, also controlled by the Integrated Change Control process.

• Process Improvement Plan• Human Resource Plan• Communications Management Plan• Risk Management Plan• Procurement Management Plan• Stakeholder Management Plan

• Scope Management Plan• Requirements Management Plan• Schedule Management Plan• Cost Management Plan• Quality Management Plan


Differentiation: PM Plan and Project DocumentsProject Management Plan Project Documents

Change management plan Activity attributes Project staff assignments

Communications management plan Activity cost estimates Project statement of work

Configuration management plan Activity duration estimates Quality checklists

Cost baseline Activity list Quality control measurements

Cost management plan Activity resource requirements Quality metrics

Human resource management plan Agreements Requirements documentation

Process improvement plan Basis of estimates Requirements traceability matrix

Procurement management plan Change log Resource breakdown structure

Scope baseline• Project scope statement• WBS• WBS dictionary

Change requests Resource calendars

Quality management plan Forecasts• Cost forecast• Schedule forecast

Risk register

Requirements management plan Issue log Schedule data

Risk management plan Milestone list Seller proposals

Schedule baseline Procurement documents Source selection criteria

Schedule management plan Procurement statement of work Stakeholder register

Scope management plan Project calendars Team performance assessments

Stakeholder management plan Project charterProject funding requirementsProject scheduleProject schedule network diagrams

Work performance dataWork performance informationWork performance reports

Page 50

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مقترحات

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5.1 Plan Scope Management

Planning: Project Scope Management

Outputs

Scope management planRequirements management

plan

Tools & Techniques

Expert judgmentMeetings

Inputs

Project management planProject charterEnterprise environmental factorsOrganizational process assets

Page 51


Project Scope Management

Ensures that the project includes all the work required, and only the work required, for the project to complete successfully. It defines and controls what is and is not in the project (the positive and negative scope items).

If it is not in the scope, it is not in the WBS

The Scope Baseline includes:1. Project scope statement (SOW)2. Work breakdown structure (WBS)3. WBS dictionary

Page 51


Plan Scope Management

5.1.1 Inputs

+

Outputs of Previous Processes:

Project Management Plan

Project Charter

Always Inputs:

EEF

OPA

Page 52



5.1.3 Outputs

Scope Management Plan Part of the project management plan Defines how the scope will be defined, developed,

controlled, and verified.

Requirements Management Plan Also part of the project management plan Describes how requirements will be analyzed,

documented, and managed Includes configuration management, requirements

prioritization, metrics, and traceability.

Page 53


5.2 Collect Requirements

Planning: Scope Management PMBOK® Fifth Edition, Section 5.2, Page 110

Outputs

Requirements documentationRequirements traceability

matrix

Tools & Techniques

InterviewsFocus GroupsFacilitated Workshops Group Creativity TechniquesGroup Decision Making

TechniquesQuestionnaires and SurveysObservationsPrototypesBenchmarkingContext DiagramsDocument Analysis

Inputs

Scope Management PlanRequirements Management

PlanStakeholder Management PlanProject CharterStakeholder Register

Page 54

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استبيان

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استطلاع,استعراض

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مقارنة


5.2 Collect Requirements

Collecting Requirements is the process of determining, documenting, and managing stakeholders needs and requirements to meet project objectives

Requirements include the quantified and documented needs and expectations of the sponsor, customer and other stakeholders

Requirements must be detailed enough to allow precise measurements during Project Execution.

Tools and Techniques

InterviewsFocus GroupsFacilitated Workshops Group Creativity TechniquesGroup Decision Making TechniquesQuestionnaires and SurveysObservationsPrototypesBenchmarkingContext DiagramsDocument Analysis

Page 48

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كميا


5.2.1 Collect Requirements

Interviews: talk with all stakeholders, checklists

Focus groups: talk with prequalified stakeholders

Facilitated workshops: allow key cross-functional stakeholders to define product/project features and to reconcile differences.

Joint Application Design/Development (JAD): software

Quality Function Deployment (QFD): new products, manufacturing

Voice of the Customer (VOC): when QFD collects client needs

Group creativity techniques (see list on next page)

Group decision making techniques

Questionnaires and surveys: written sets of questions

Observations: job shadowing

Prototypes: working model

Benchmarking: comparing to best practices

Context Diagrams: a scope model

Document Analysis: analyzing existing documentation

Pages 55-57

Tools and Techniques to define features and functions

ExamTip

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قوائم

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مقابلت

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مؤهلين

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تصالح, توافق

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نشر وظيفة الجودة

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تقنيات مجموعة الابداع

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مجموعة تقنيات صنع القرار

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التظليل

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مقارنة

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قياس المعايير

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Page 56

Tools and Techniques: Group Creativity Techniques

Brainstorming: a technique to generate multiple ideas on requirements. Does not include voting or prioritization., but is often used with creative methods that do.

Nominal Group enhances brainstorming with a voting process

Technique: to rank the best ideas.

Delphi Technique: questionnaires are sent to experts: anonymous. responses are compiled, prioritized, and sent back.A method for building consensus.

Idea/Mind Mapping: a graphical method to consolidate brainstorm ideas show commonality and differences: generate new ideas

Affinity Diagram: gathering lots of ideas and sorting them into groupsanalyze to identify patterns within data

Multicriteria Decision uses a decision matrix to establish criteria (risk,

Analysis: uncertainty, valuation), evaluate, and rank many ideas.

ExamTip

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مجموعة تقنيات الابداع

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تقنية مجموعة الاسمية

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مجهول

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جمعت

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اجماع

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دمج

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رسم بياني

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مرتبة, صنف

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صنف

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خبراء



Page 57

Tools and Techniques: Group Decision-Making Techniques

Unanimity: everyone agrees. Example: Delphi Technique.

Majority: more than 50% agree.

Plurality: largest block in the group decides.

Dictatorship: one person decides. Example: Forced Choice.

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اجماع

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اغلبية

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تعدد



Page 58

Outputs

Requirements progressively elaborated

Documentation: record: how each requirement meets the business need. explicit, measurable, accepted in writing

Traceability Matrix: a table linking requirements to their origintraces then over the project life cycle a structure for managing scope changes

Example Requirements Traceability Matrix

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مفصل

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صريح, مشروح

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آثار


5.3 Define Scope

Planning: Scope Management PMBOK® Fifth Edition, Section 5.3, Page 120

Outputs

Project scope statementProject documents updates

Tools & Techniques

Expert judgmentProduct analysisAlternatives generationFacilitated workshops

Inputs

Scope management planProject charterRequirements documentationOrganizational process assets

Page 59


“... process required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Documents the features and functionality of the product, service, or result”

ExamTip

• Know and understand for exam

• Objectives = Agreement by all parties

• PMI-ism: give customer “No more - No less”

• Controls what IS and what IS NOT in project

ExamTip

• Giving the customer more than they ask for is “Gold Plating”. PMI® does not approve of Gold Plating.

• Currently only 26% of projects succeed, concentrate on doing the agreed scope of work.

• You may see a variety of questions relating to this in Scope and Quality areas.

5.3 Define Scope

Page 59

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doing more than is required on project

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Requirements vs. Scope PMBOK Fifth Edition, Page 121

Not all of the requirements identified in “Collect Requirements” may be included in “Define Scope.”

“Define Scope” selects the final project requirements.

Scope is progressively elaborated. Detailed scope is determined one iteration at a time.

ExamTip

Page 60


5.3.1 Define Scope

Pages 60 & 61

Inputs

o Prerequisites are the project

statement of work (SOW) and the

business case (need for the project

and cost/benefit analysis

o Project purpose or justification

o Measurable objectives

o Assigned project manager, authority

and responsibility

o High-level requirements, project

description, and risks

o Summary budget and milestones

o Critical success factors

o Functional organizations and their

participation

o Name and authority of sponsor

+

+


• Scope Management Plan

• Requirements Documentation

Always an Input:

OPA

There have been as many as 20 “Input, Tools, and Output” questions on past tests (10%). We want you to get these right!

(One person had 40 ITO questions on his test)


5.3.2 Define Scope

Page 61


+

+

Almost always a Tool:

• Expert Judgment

• Product Analysis

Translate objectives into deliverables

• Facilitated Workshops

key players reach understanding of the project objectives and their limits.

• Alternatives Generation

develop options using brainstorming, lateral thinking, alternatives analysis, etc.

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جانبي


5.3.2 Define Scope PMBOK Fifth Edition, Section 5.3, Page 122

Page 61

Tools and Techniques: Product Analysis, Value Analysis Example

Cost/Benefit Analysis

Benefits:increased revenuecapital assetsregulatory compliancestrategic positioning

Costs:liquid assets consumedresources occupieddeferred opportunities

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إيرادات

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اصول, الموجودات

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الفرص

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الأمتثال التنظيمي

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الموقع الأستراتيجي

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الموارد المحتلة


5.3.3 Define Scope PMBOK Fifth Edition, Section 5.3, Page 123

Page 62 & 63

Outputs

+

Subject matter document:

• Project Scope Statement

• Documents Updates: Stakeholder register Requirements docs Traceability matrix

Includes


5.3.3 Define Scope

Remember the difference between the Charter and the Scope Statement:

• the charter contains high-level information, • the scope statement is a detailed description

of the scope elements.

Page 62

Both are progressively elaborated throughout the project

See table 5-1, PMBOK Fifth Edition, Section 5.3, Page 124

ExamTip


5.3 Define Scope

Sponsor

ProjectManager

Charter

ScopeStatement

Product scope descriptionAcceptance criteriaDeliverablesProject exclusionsConstraintsAssumptions

Summary

High level


5.4 Create WBS

Planning: Scope Management

Outputs

Scope baselineProject document updates

Tools & Techniques

DecompositionExpert judgment

Inputs

Scope management planProject scope statementRequirements documentationEnterprise environmental factorsOrganizational process assets

Page 64


5.4 Create WBS

The Work Breakdown Structure is the process of subdividing project deliverables into smaller, more manageable components.

It is a hierarchical decomposition of the total scope of work done by the project team to satisfy the objectives and create the deliverables.

If it is not in the scope, it is not in the WBS, and vice versa. This is called the 100% rule.

The Scope Baseline includes:1. Project scope statement (SOW)2. Work breakdown structure (WBS)3. WBS dictionary

Page 64

ExamTip

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بالعكس


5.4 Create WBS PMBOK® Fifth Edition, Page 129

City Gentrification

LandscapingTree PlantingPreparation

Mark Holes

DigHoles

Plant Trees

Fill Holes

Lay TurfWater

Soil

• At the lowest level of the WBS, work can be properly scheduled, cost estimated, monitored and controlled

• The WBS is critical to project successThe WBS is very important

• The lowest level WBS components arecalled Work Packages

Page 67

Work Packages

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المناظر الطبيعية,


5.4.1 Create WBS PMBOK® Fifth Edition, Page 127

Inputs

+

Page 65


• Scope Management Plan


• Requirements Documentation

Always Inputs:

• EEF (industry WBS standards)

• OPA (procedures, templates, lessons

learned, files)


5.4.2 Create WBS PMBOK® Fifth Edition, Page 128


Decomposition

Decomposition is the subdivision of deliverables into smaller, more

manageable components until they are defined to the work packagelevel, where schedule and cost can be reliably estimatedwithout going to level that takes more effort to administer than isworthwhile.

Decomposition may be difficult for work to be done far in the future,

so the team does rolling wave planning.

Parts of the WBS done by a supplier are known as the contract work

breakdown structure (CWBS). Each component in a WBS should beassigned to a department, and sorting by organizational unit creates

an Organizational Breakdown Structure (OBS).

Page 66

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بشكل موثوق

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ادارة

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تخطيط موجة المتداول


5.4.2 Create WBSTools and Techniques

Page 67

001

400300200100

210 220 230 240 250 310 320 330 410 420

221 222 231 251 252 321 322 411 412

Whole Project

Main Divisions

Activity Deliverables

Work Packages


5.4.2 Create WBSTools and Techniques: Example

Page 67

Study Concept Prototype Qualification

Typical

Project

Pilot Production Project Management

Chronological

SalesProduct

EngineeringPurchasing

Quality Control

Typical

Project

Job ShopManufacturing

DepartmentProject

Management

Functional

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مرتب زمنيا


5.4.2 Create WBSTools and Techniques: Example of WBS by Phase

Page 68

Seagram MIS

Project

Functional Requirements

Definition

Project Definition Analysis Design Construction Implementation Support

Project Management

Process & Package

Evaluation

Analysis Check Point

Design & Integration

Installation

Design Check Point

User Procedures &

Training

Program Generation & Testing

Development Sign Off

Training & User Acceptance

User Sign Off


5.4.2 Create WBS PMBOK® Fifth Edition, Page 131-132

Outputs

Work not included in the WBS is outside the scope of the project.This is called the 100% rule.

People who do the work must create their part of the WBS.

The work breakdown structure is a KEY document. It provide forhierarchical summation of cost, schedule and resourceinformation, sometimes called “rolling up the WBS.”

Rules of thumb are applied to the size of a work package:the 80-hour and 2-week rules.

Include all project work and all aspects of the project deliverables.Remember, the scope of the project is always greater than thescope of the product alone!

Heuristics

Page 69

ExamTip

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الاستدلال

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جوانب


5.4.2 Create WBSOutputs, example of software to create WBS

Page 70


5.4.2 Create WBSOutputs, The WBS Dictionary, PMBOK Fifth Edition, Page 132

Page 70

Project Title: ___________________________________ Task Title: ___________ Charge Number: ___________Task Leader: _______________Department: ________________Project Manager: ____________

Task: Scheduled Start: _____ Scheduled Completion: _____Description: _____________________________________________________________________________________________________________________________________________________________________________

End Requirements: _________________________________________________________________________________________________________________________

Budget:Labor Hours Other Direct

_____________ ________ __________________________________ ________ __________________________________ ________ _____________________

Work Package Completed: _______________________

Hours Expended: ________ Date Completed: ______

WBS Dictionary

• Controls what work is done, when, by whom, for how much.

• Created with help of the team member.

Creating a WBS(Post-It Note Process)

Task “A” Specs. & Req.

Start Date Stop Date

Est. HoursWho?

= Task Description


5.4.2 Create WBSDo not confuse WBS with other breakdown structures

Page 71

WBS: a deliverable-oriented hierarchical decomposition of the work tobe executed by the project team to accomplish project objectives andto create required deliverables.

OBS: Organizational Breakdown Structure: a hierarchical view of theproject organization showing how work packages relate to functionaldepartments in the performing organization, i.e., a departmentalbreakdown for the project.

BOM: Bill of Material: a hierarchical tabulation of parts to fabricate amanufactured product.

RBS: Risk Breakdown Structure: a hierarchical depiction of identifiedrisks arranged by risk category.

Resource Breakdown Structure (another RBS?): a hierarchical view ofresources by type used on the project.

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التحرر

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الاداري


5.4.2 Create WBSOBS: Organizational Breakdown Structure

Page 71

Project

Design Production

Comp. #2Comp. #1Comp. #2Comp. #1

Co

mp

any

Engi

nee

rin

gM

anu

fact

uri

ng

Ass

emb

lyP

arts

Elec

tric

alM

ech

anic

alCost

Account

Cost Account

Cost Account

Cost Account

Cost Account

Cost Account

Cost Account

Cost Account

Cost Accounts provide a way to control how functional organizations to charge to projects.

WBS Codes show functional managers exactly what their people are doing on the project.


5.4.2 Create WBSOutputs

Page 72

Phrases about WBS that have been answers on the exam:

Graphical picture of the project

Identifies all tasks

Foundation upon which the project is built

Is VERY important

Forces you to think through all aspects of the project

A WBS can be re-used for other projects

ExamTip W.B.S.


5.4.2 Create WBSOutputs, WBS

Page 72

• The structure of the WBS should reflect the way the project work will be performed and managed

• The WBS should be broken down to the level of detail needed to provide control of the work (80 hour and 2 week rules)

• Smart PM’s know they need to manage the pieces, not the whole project.

• Each element of the WBS should be given a unique identifier that codes its position in the WBS and any parent/child relationship among WBS elements

• Each WBS element should have an associated deliverable or set of deliverables that allow an indication of work progress and completion


5.4.2 Create WBSWBS Terminology

Page 73

Chart of Accounts: a numbering system used to monitor costs by category (e.g., labor, supplies, travel)

Code of Accounts: The collection of unique identifiers for each WBS element

Cost Account: A code that allows a functional group to charge for work on a specific element of project work

Work Order: A request for a functional group to work on a specific element of a project

Work Package: An element of work or deliverable at the lowest level of the WBS (relates to tasks or activities on most projects) -- may be subdivided into tasks or activities by team members on larger projects.


6.1 Plan Schedule Management

Planning: Project Time Management

Outputs

Schedule management plan

Tools & Techniques

Expert judgmentAnalytical techniquesMeetings

Inputs

Project Management PlanProject CharterEnterprise environmental factorsOrganizational process assets

Page 74

PMBOK Fifth Edition, Page 145


6.1 Plan Schedule Management

Plan Schedule Management is the process of establishing policies, procedures, and documentation for planning, developing, managing, executing and controlling the project schedule.

It defines how schedule contingencies will be reported and assessed.

Page 74

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حالات الطوارئ

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مخبر عنه

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مقيم

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6.1.1 Plan Schedule Management

Page 74

Inputs

+


• Project Management Plan (includes the Scope Baseline)

• Project Charter

Always Inputs:

• EEF (resource availability, scheduling

tool, commercial databases)

• OPA (reporting tools, lessons

learned, control tools, closure)




Page 75


• Expert Judgment

• Analytical Techniques(techniques to estimate and schedule the project, PM software, fast track or crash, risk assessment)

• Meetings(to develop the plan)



Page 76

Outputs

• Schedule Management Plan(model development, accuracy, units, procedures, control thresholds, performance measurement rules, report formats, process descriptions)

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دقة

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عتبات

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تطوير النماذج

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قواعد قياس الاداء

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صيغ

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تقرير

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وصف العملية


6.2 Define Activities

Planning: Project Time Management

Outputs

Activity listActivity attributesMilestone list

Tools & Techniques

DecompositionRolling wave planningExpert judgment

Inputs

Schedule Management PlanScope baselineEnterprise environmental factorsOrganizational process assets

Page 77


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تخطيط موجة المتداولة


Activity definition identifies specific actions at the work package level of the

WBS to produce the deliverables. Work packages have smaller elementscalled schedule activities that have to be planned, i.e., estimated, scheduled,executed and monitored & controlled, to meet project objectives.

The best way to think about activity definition is that the outputs are

ACTIONS to be done.


Page 77



City Gentrification


Mark Holes

DigHoles

Plant Trees

Fill Holes Lay TurfWater

Soil

Page 80

Check groundMeasure distancesNail stakes…

Actions

Work Packages

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تحسين

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تصميم الموقع

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حفر

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العشب

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يعلم شيء بأوتاد

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6.2.1 Define ActivitiesInputs

Page 78

+


• Schedule Management Plan

• Scope Baseline (Scope Statement, WBS, and WBS Dictionary)

Always Inputs:

• EEF (culture, commercial databases,

PMIS)

• OPA (lessons learned, processes,

templates, activity procedures)


6.2.2 Define ActivitiesTools and Techniques

Page 78

• Decomposition Subdividing work packages into actions or work effort

necessary to complete the deliverable of the work package.

These actions or work effort are sometimes called “schedule activities.”

• Rolling Wave Planning(see next page)

• Expert Judgment (Always a tool)


Rolling Wave Planning

Rolling wave planning is progressive elaboration of the plan throughout theproject life cycle. Work accomplished in the near term is planned in detail ata low level of the WBS, while work far in the future is planned at a higherlevel of the WBS. Therefore, schedule activities can exist at various levels inthe project life cycle. For example, in the initiation stage where strategicplanning is done, activities might be kept at the milestone level. As eachproject phase is completed, rolling wave planning means that the next phasecan now be planned in more detail as more is known about the detailactivities.

6.2.2 Define ActivitiesTools and Techniques

Page 78 & 79

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التفاصيل, الأسهاب

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منجز

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فترة, مصطلح


6.2.1 Define ActivitiesDefinitions

Sometimes PMP Candidates do not understand the subtle distinction between an Activity Definition and a Work Breakdown Structure (WBS). This may help:

Activity Definition Outputs are ACTIONS TO BE DONE

W.B.S. Outputs are DELIVERABLES (Tangible Items)

ExamTip

Page 79

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المرشحين

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,دقيق ,رقيق

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التمييز


City Gentrification


Mark Holes

DigHoles

Plant Trees

Fill Holes Lay TurfWater

Soil

1. Check ground2. Measure distances3. Nail stakes…

Page 80

Activity List

6.2.3 Define ActivitiesOutputs

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تحسين

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المناظر الطبيعية

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تجهز

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وضع العشب


6.3 Sequence Activities

Planning: Time Management

Outputs

Project schedule network diagrams

Project documents updates

Tools & Techniques

Precedence diagramming method (PDM)

Dependency determinationLeads and lags

Inputs

Schedule management planActivity listActivity attributesMilestone listProject scope statementEnterprise environmental factorsOrganizational process assets

Page 82


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مخططات الأسبقية

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تقرير الأعتماد

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Activity Sequencing

Activity sequencing means identifying and documenting logical relationshipsamong project activities. Think NETWORKS !

Accurate and complete activity sequencing is critical to developing schedules.Schedule activities (actions) can be sequenced to develop the project schedule.

The project planning team should work together to clarify the sequence ofactivities and dependencies. It is usually more effective to have the team dosome form of manual activity sequencing before turning to projectmanagement software for scheduling.


Page 82

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تدقيق

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توضيح

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التبعيات

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Activities are commonly sequenced using the Precedence Diagramming Method (PDM) which allows finish-to-start, finish-to-finish, start-to-start and start-to-finish

Finish-to-start is the most common type of relationship There are three types of dependencies – mandatory

dependencies, discretionary dependencies and external dependencies

Lead and lag times add realism to the schedule (you Lead In to fast track, and Lag out to add a gap between activities)

Page 82

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الأسبقية

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إختياري أو تقديري

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إجباري

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الواقعية

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مسار


6.3.1 Sequence ActivitiesInputs

Page 83


• Activity List (activities or actions to be sequenced)

• Activity Attributes (activities have durations, resources, and costs associated and are used for schedule development)

• Milestone List (A significant event in a project. The list identifies all milestones and if they are mandatory (contractual) They have zero duration.


• EEF and OPA


6.3.2 Sequence ActivitiesTools and Techniques, Precedence Diagramming Method (PDM)

Page 84

Dependencies used in PDM

F-F

S-S

S-F

Activity A Activity B

Activity C

Activity D

Activity E

F-S


6.3.2 Sequence ActivitiesTools and Techniques, Precedence Diagramming Method (PDM)

also called Activity on Node

Page 84

Finish-to-Start (most often used)Finish-to-FinishStart-to-StartStart-to-Finish (rarely used)

Start Finish

A B C

D E F

• No repetitive activities or conditional loops! No Dummies!• Often used for Three Point Estimates (PERT) and Critical Path Method

(CPM) analysis

A-B; B-C; etc.B-EB-DF-C

Lead inLag out

ExamTip


6.3.2 Sequence ActivitiesTools and Techniques, Arrow Diagramming Method (ADM)

also called Activity on Arrow [ Not in Fifth Edition, may be on test ]

Page 85

• Finish-to-Start only (need additional nodes for leads and lags)• No repetitive activities or conditional loops• May use “dummy” activities • Nodes numbered, activities lettered, numbers above arrows are duration• Often used for Three Point Estimates (PERT) and Critical Path Method

(CPM) analysis

1Start Finish

B

C

D

E

2

4 5

3

ExamTip

6

F

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عقد

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6.3.2 Sequence ActivitiesTools and Techniques, Conditional Diagramming Method

Graphical Evaluation and Review Technique (GERT)

Not in Book

• Allows repetitive activities (looping back) and conditional branches• Combines features of flow diagrams and decision tree models

Manufacture Inspect

Rework Inspect

Package

Scrap

Ship

Not in the Fifth Edition, But has been on recent tests

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ـــــــ

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ـــــــــ

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ـــــــ


6.3.2 Sequence ActivitiesTools and Techniques, Dependency Determination

Page 86

Mandatory Dependencies (Hard Logic):

Dependencies based on technological constraints, such as not being able to paint a wall before it is constructed

Discretionary Dependencies (Soft Logic):

Dependencies based on management preference, such as delaying one task until another is completed in order to use the same resources on both.

External Dependencies:

Dependencies based on external constraints such as a required inspection before proceeding to the next activity.

Internal Dependencies:

Dependencies within the project team’s control, such as not testing a product until the product is fully assembled.


Applying Leads and Lags

A lead allows acceleration of the successor activity (you

“lead in” to fast track a project).For example, a team of technical writers can begin writing thesecond draft of a large document 15 days before they finishthe first draft. When scheduling, this is accomplished with afinish-start relationship and a 15 day lead time.

A lag directs a delay in the successor activity (you “lag out” to

allow a waiting time).For example, you have to wait 10 days to discover infantmortality of new semiconductor chips. This is accomplishedusing a finish start relationship and a 10 day lag time.

ExamTip

6.3.2 Sequence ActivitiesTools and Techniques

Page 87


6.3.2 Sequence Activities

o A hammock is a summary level activity representing a group of related activities

o A subnet or fragnet is a sub-project of a larger network diagram

o A hanger is an unintentional break in the network diagram usually due to omitting either activities or logical relationships


Page 87


6.3.3 Sequence ActivitiesOutputs

Page 88

• Project Schedule Network Diagrams (a graphical representation of activities showing dependencies)

• Project Documents Updates (include activity lists and attributes, milestone list, and risk register)

F-F

S-S

S-F

Activity A Activity B

Activity C

Activity D

Activity E

F-S


6.4 Estimate Activity Resources


Outputs

Activity resource requirements

Resource breakdown structure


Tools & Techniques

Expert judgmentAlternative analysisPublished estimating dataBottom-up estimatingProject management software

Inputs

Schedule management planActivity listActivity attributesResource calendarsRisk registerEnterprise environmental factorsOrganizational process assets

Page 89


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Activity cost estimates

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6.3 Estimate Activity Resources

Estimate Activity Resources is the process of estimating the type and quantities of material, human resources, equipment or supplies required to perform each activity.

There are five tools and techniques:• Expert judgment• Alternative analysis• Published estimating data• Bottom-up estimating• Project management software

Page 89


6.3.1 Estimate Activity ResourcesInputs

Pages 89-90


• Activity List (Activities that need resources)

• Activity Attributes (data for estimating resources)

• Resource Calendars (periods when resources are available and skill level)

• Risk Register (shows events that impact resource availability)

• Activity Cost Estimates

• EEF and OPA


6.3.1 Estimate Activity Resources

Page 78

Resource calendars document the time periods wheneach team member can work on the project. To do thiswe must have a good understanding of the person’sschedule conflicts, including holiday time andcommitments to other projects. We document activeand idle time for each person over the life of the projectand show the results in a project histogram. Resourcesinclude people, material, equipment and facilities.

Inputs, Resource Calendars


6.3.2 Estimate Activity ResourcesTools and Techniques

Pages 90-92

• Expert Judgment

• Alternative Analysis (Different people, skills, equipment, tools, make-buy)

• Published Estimating Data (data for estimating resources)

• Bottom-Up Estimating (Estimating at the bottom level of the WBS and adding [aggregating] to the top. Yields best accuracy)

• Project Management Software (a scheduling tool helps plan, manage resource pools, and develop resource estimates)


Project Title: ___________________________________

Task Title: ___________ Charge Number: ___________Task Leader: _______________Department: ________________

Project Manager: ____________

Task: Scheduled Start: _____ Scheduled Completion: _____

Description: ___________________________________

______________________________________________

______________________________________________

______________________________________________

End Requirements: _____________________________

______________________________________________

______________________________________________

Budget:

Labor Hours Other Direct

_____________ ________ _____________________

_____________ ________ _____________________

_____________ ________ _____________________

Work Package Completed: _______________________

Hours Expended: ________ Date Completed: ______

WBS Dictionary(PMBOK 3rd Edition, Page 117)

• Controls what work is done,

when, by whom, for how much.

• Created with team member’s

help

Creating a WBS(Post-It Note Process)

Task “A” Specs. & Req.


Est. HoursWho?

= Task Description

The WBS dictionary describes the detailed content of the WBS work packages.

Post-It Note Process: A Method For Bottoms Up Estimating

6.3.2 Estimate Activity ResourcesTools and Techniques

Page 91

Alternative Analysis

Brainstorming: a method of joint creative thinking that first records and

considers all possible options/solutions without judgment before proceeding to

critical evaluation of the project/product requirements.

Nominal Group Technique: enhances brainstorming with a voting process to

rank the best ideas for further brainstorming or prioritization.

Delphi Technique: questionnaires are sent to a group of experts who provide

answers and are kept anonymous. Responses are compiled, prioritized, and

sent back for another round of requirements gathering. A method for building

consensus.

Idea/Mind Mapping: a graphical method of consolidating brainstorm ideas to

show commonality and differences and to generate new ideas.

Affinity Diagram: gathering large numbers of ideas and sorting them into

groups for review and analysis – they help to identify patterns within data.

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النقاش

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يعزز

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استفتاءات

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خبراء

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مجهول المصدر

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مجموع

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مفصل

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تجمع

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إجماع

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دعم ,تعزيز

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الشيوع

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تصنيف

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رسم بياني تقارب

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تحليل البديل


6.3.3 Estimate Activity ResourcesOutputs

Page 92

Activity Resource Requirements

The output of resource planning is a set of resource requirements. The resourcerequirements describe what types of resources are required and in whatquantities for each element of the WBS. The list of resource requirements will beused for staff acquisition and procurement planning. Develop Scheduledetermines when the resources are needed.

This is a hierarchical structure of identified resources, sorted by category andtype. When limited to people resources, it is sometimes referred to as a projectorganization chart.

Updates include activity list, activity attributes, and resource calendars

Resource Breakdown Structure

Project Documents Updates

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إكتساب

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توفير ,حيازة


6.5 Estimate Activity Durations


Outputs

Activity duration estimatesProject documents updates

Tools & Techniques

Expert judgmentAnalogous estimatingParametric estimatingThree-point estimatingGroup decision-making

techniquesReserve analysis

Inputs

Schedule management planActivity listActivity attributesActivity resource requirementsResource calendarsProject scope statementRisk registerResource breakdown structureEnterprise environmental factorsOrganizational process assets

Page 93



6.5 Estimate Activity Durations PMBOK® Fifth Edition, Page 166

Estimates may be obtained in the following ways:• Expert judgment• Analogous estimating• Parametric estimating• Three-point estimates• Group decision-making

A contingency reserve (or time reserve, or buffer) may be used to account for schedule uncertainty

Page 93

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عازلة

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شئ مجهول


6.5 Estimate Activity Durations

Definition: Estimating the number of work periods needed to completeeach activity with estimated resources.

The team members should make the estimate.

Estimates: (1) amount of work to complete each activity, (2) number ofresources to be applied, and (3) number of work periods needed to finisheach activity.

Duration estimates are progressively elaborated.

Rolling Wave applies to duration estimating

Estimating duration includes elapsed time as well as work time.

Page 93

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متوسع, مفصل, محكم

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منقضي


6.5.1 Estimate Activity Durations

Pages 94-96

Schedule management plan Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement Risk register Resource breakdown structure Enterprise environmental factors Organizational process assets

Inputs


6.5.2 Estimate Activity Durations

Page 98

Tools and Techniques, Estimating Methods

Analogous Time Estimating (a form of expert judgment):Estimating the time to do tasks or to do a current project by extrapolating from actual cost of a previous project. Also called top-down time estimating. Inexpensive but may also be inaccurate.

Parametric Time Estimating:Using a statistical relationship to predict project times, e.g., activity multiplied by productivity rate predicts time standards, or number of drawings multiplied by labor hours per drawing calculates drawing duration.

Expert Judgment:By the project team, or other experts, e.g., rolling up the WBS time estimates to get a project total.

Task “A”


Est. HoursWho?

ExamTip

People doing the work create time & cost estimates

Reserve Analysis (Contingency):Project Teams can incorporate additional time into projects for schedule risk contingency or buffer. Qual. (%) or Quant. (Monte Carlo)


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يدمج

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مماثل

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إستقراء

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غير مكلف

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غير دقيق

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تنبؤ

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مضاعف

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عازلة

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تأهيلية


6.5.2 Estimate Activity Durations PMBOK® Fifth Edition, Page 170

Tools and Techniques, Analysis Methods

Critical Path Method (CPM)

• Uses a weighted average to estimate activity and project durations.• Provides variance estimates for duration dates.• Emphasis is on controlling schedule and leaving cost flexible• Used on ADM (AOA) diagrams, can have dummies.• Is used on PDM diagrams also, but they have no dummies

Three Point Estimates (PERT=Program Evaluation and Review Technique)

• One time estimate per task = “most likely” duration.• The emphasis is on controlling cost and leaving schedule flexible.• Used on ADM (AOA) diagrams, can have dummies.• Is used on PDM diagrams also, but they have no dummies

ExamTip

Pessimistic - Optimistic

6

Pessimistic + Optimistic + (4 x Most Likely)

6te =


6

2Variance =

StandardDeviation =

Sometimes called Beta Distribution

Sometimes called Method of Moments

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6.5.2 Estimate Activity DurationsTools and Techniques, Duration Estimates

Quantitative EstimateIndication of Range

Indication of Confidence

19 1days with 68% confidence19 2 days with 95.5% confidence19 4 days with 99.7% confidence

o = most optimistic completion timep = most pessimistic completion timem = most likely completion time

te = o + 4m + p

6

(te) = p – o

6

te 1 <=> 68% probabilityte 2 <=> 95.5% probability

te 3 <=> 99.7% probability

16 17 18 19 20 21 22 23 2415

3-Point or PERT

Analysis

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ثقة

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Exercise

Calculate the following values using PERT…

A 14 27 47 28.166 5.5 30.25

B 41 60 89 61.666 8 64

C 39 44 48 43.833 1.5 2.25

D 29 37 42 36.5 2.166 4.693

Task Opt Likely Pess PERT Std. Dev Variance

Assuming that the tasks listed above make up the entire critical path for the project,how long will the project take? 170.2 days ± 10.1 days (add the variances and take square root)

Page 99


6.6 Develop Schedule


Outputs

Schedule baselineProject scheduleSchedule dataProject calendarsProject management plan

updatesProject documents updates

Tools & Techniques

Schedule network analysisCritical path methodCritical chain methodResource optimization

techniquesModeling techniquesLeads and lagsSchedule compressionScheduling tool

Inputs

Schedule management planActivity listActivity attributesProject schedule network diagramsActivity resource requirementsResource calendarsActivity duration estimatesProject scope statementRisk registerProject staff assignmentsResource breakdown structureEnterprise environmental

factorsOrganizational process

assets

Page 101




Develop Schedule is the process of analyzing activity sequences, durations, resource requirements and schedule constraints to create the project schedule

A technique to generate the project schedule employing

various analytical techniques such as critical path, critical chain, what-if

analysis and resource optimization

Schedule Network Analysis

A method used to estimate minimum duration and

flexibility in network paths. Calculates theoretical early

and late start and finish dates for all activities

without regard to resource limitations, using forward

and backward pass analysis

Critical Path Method

Allows the team to place buffers on any network

path to account for limited resources and duration

uncertainties. The resource-constrained critical path is the critical chain. A project buffer can be placed at the

end of the critical chain, and feeding buffers can be places on non-critical legs that feed into the critical

chain.

Critical Chain Method

Pages 103-105 & 110

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عازلة, حاجز بين شيئين



Page 101

Determines planned start and finish calendar dates for project activities

Schedule development is iterative and continuously elaborated

Requires review of duration and resource estimates to create a schedule

Creates a baseline against which to track progress

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متوسع

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تدقيق ,نقد

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خط, مسار

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6.6.2 Develop Schedule

Page 103

Tools and Techniques, Schedule Network Analysis

Critical Path Method (CPM)

• Uses a weighted average to estimate activity and project durations.• Provides variance estimates for duration dates.• Emphasis is on controlling schedule and leaving cost flexible

Three Point Estimates (PERT=Program Evaluation and Review Technique)

• One time estimate per task = “most likely” duration.• The emphasis is on controlling cost and leaving schedule flexible.


6

Pessimistic + Optimistic + (4 x Most Likely)

6te =


6

2Variance =

StandardDeviation =

Network analysis is a technique that generates the project schedule. It employsa schedule model and includes CPM, critical chain method, what-if analysis andresource optimization to calculate early and late start and finish dates.


6.6.2 Develop Schedule

Page 96

Tools and Techniques, Critical Path Method (CPM)

CPM calculates early and late start and finish dates for activities using forward andbackward pass analyses through the network paths. The early and late start andfinish dates may not be the same on different network paths since total float maybe positive, negative, or zero. Total float provides schedule flexibility.

Critical paths have either zero or negative total float. The definition of “CriticalPath” is the longest addition of activity durations on a path from start to finish. It isalso defined as the shortest period of time in which the project can be completed.

The definition of “Total Float” is the total amount of time a schedule activity can bedelayed from its early start date without delaying the project finish date. CPMcalculates total float by determining the difference between early finish and latefinish dates, or early and late start dates. Also known as slack, float, or projectfloat.

“Free Float” is the amount of time a schedule activity can be delayed withoutdelaying the early start date of its successor.

ExamTip

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رخو

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اللاحق

PMP® Prep: PMBOK® 5th - 2013

Slack Analysis

Page 103

If you have a network with parallel paths and one leg has slack, when you create the schedule, do you take the slack at the end of that leg or at the start?

12 days 16 days

9 days 13 days 6 daysSlack

12 days 16 days

9 days 13 days6 daysSlack

OR

When first laying out a schedule, put the slack at the end of the shorter leg. It helps with resource leveling and recovery if something happens to either of the two shorter legs during execution. Don’t schedule projects JIT.

JIT


Example of Critical Path Method

Start FinishA

1 5 5

1 0 5

B

6 5 10

11 5 15

C

6 10 15

6 0 15

D

16 15 30

16 0 30

Activity Name

Early Start

Early FinishDuration

Late Finish

Late Start

Total Float

Legend

Critical PathNon-Critical Path

©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition

Path A, B, D = 25

Path A, C, D = 30

Page 105


• The critical path is the longest addition of durations over a network.

• It is the shortest period of time the project can be done.

• A project may have more than one critical path• The critical path may change as the project

progresses• Critical Path may be found using CPM, Three-

Point, or Monte Carlo analyses.

6.6.2 Develop ScheduleCritical Path Method

Definition

Brochures

Support

Margin

Stock

Profile

Training

Acceptance

Go/No Go Decision

Advertising

Training

DBT Stocking & Measuring Sys

Sales Aids & Brochure

Production

Go/No Go Launch

Program Launch

Sales

1 Week

1 Week

2 Weeks

2 Weeks

2 Weeks

4 Weeks

1 Week

0 Week

3 Weeks

4 Weeks

5 Weeks

7 Weeks

0 Week

1 Week

12 Weeks

Page 106


Calculate the Critical Path

number above the node is the earliest possible start datenumber below the node is the latest possible start datecritical path is where earliest start date = latest start date

1

2

4

3

6

5Activity D

Activity C

2 days

1 day

0

0

9

9

1 5

5

5

3 5

6

7

Page 106 PMP® Prep: PMBOK 4® - 2013


Critical Path: Related terms

Early Start Date is the earliest date that uncompleted activities can be started given the network logic and any schedule constraints

Early Finish Date is the earliest date that uncompleted activities can be finished given the network logic and any schedule constraints

Late Start Date is the latest date that an activity can begin without compromising a specified milestone (generally the project finish date)

Late Finish Date is the latest date than an activity can finish without compromising a specified milestone (generally the project finish date)

Total Float is the amount of time an activity can be delayed from its scheduled start date without delaying the project finish date, or violating a schedule constraint. Also know as float, slack, or project float

Free Float is the amount of time an activity can be delayed without delaying the early start of any following activities

Slack Time or Total Float = Late Finish Date - Early Finish Date, or Late Start - Early Start

Page 107

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مساومة, توصل الى تفاهم

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Calculating Critical Path and Float

Page 108

A

B

C

D

E

F

3

9

2

12

3

50 5

0 3

0 12

21 24

12 21

5 7

21 24

19 21

0 12

12 21

14 19

9 12

TF = 14FF = 0

TF = 14FF = 14

TF = 9FF = 2

TF = 0FF = 0

Critical Path (C-E-F) = 24Total Float in A-D-F = 14Total Float in B-E-F = 9

------ = Backward Pass

Free float: The difference between early start of predecessor and early start of successor, minus the estimated time of the predecessor

Free Float of A = 0 (5-0-5)Free Float of B = 2 (5-0-3)Free Float of D = 14 (21-5-2)

------ = Forward Pass


Exercise

Work Package

Preceding Activity

Estimate inMonths

START 0

D START 4

A START 6

F D,A 7

E D 8

G F,E 5

B F 5

H G 7

C H 8

END C,B 0

START

D

A

E

F

G

B

H C

END

Answer: The critical path (project duration) is 33 months

(1) Draw the network diagram and find the critical path…

(2) Find the slack of task A-F-B path, and of the D-E-G-H-C path from the answer above.

Answer: A-F-B = 15 Months, D-E-G-H-C = 1 Month

Page 109


Exercise: ADM

Page 109

2. If the duration of task F changes to 2 weeks, what is the effect on the project?3. What task(s) must be completed before task D begins?4. If the management tells you to complete the project two weeks early, what is the project float?

Does the critical path change?

Work Package(Nodes)

Estimate

In Weeks

A: (0 - 1) 3

9

C: (1 - 3) 3

(2 - 3) Dummy

E: (2 - 5) 2

D: (3 - 4) 2

F: (3 - 5) 1

G: (5 - 6) 4

H: (4 - 6) 2

B: (0 - 2)

The critical path is B, E, G. (Note that 0, 1, 2, 3, 4, 5, and 6 are nodes in the AOA or ADM Diagram). Critical Path = 15 Weeks.

0

1

2

3

5

4

6

B = 9

A = 3C = 3 D = 2

E = 2G = 4

F = 1

H = 2

Dummy

B-Dummy-F-G also becomes critical

Tasks A, B and C

Float is -2 weeks. No CP change unless Crashed or Fast Tracked

1. What tasks are on the critical path?

There may be 5-7 questions on network diagrams on the exam. Here is an example of a form of question that has a table of information and four questions that relate to it:


Critical chain modifies the schedule to account for limited resources. Initiallythe critical path of a network is calculated using activity duration estimates.Then, resources are applied and the resulting schedule may be resourcelimited. The critical chain method adds duration buffers that are non-workactivities. The planned activities are then scheduled to their latest start andfinish dates. Instead of managing total float, critical chain focuses on managingthe buffer durations and the resources applied to the planned activities.

6.6.2 Develop ScheduleTools and Techniques, Critical Chain Method

Pages 110


Example of Critical Chain Method

Start Finish

Legend Critical Chain LinkNon-Critical Link

Activity C

Activity A

Activity G

Activity B

Activity D

Feeding Buffer

Feeding Buffer

Activity E Activity FProject Buffer

Pages 110

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Pages 111

6.6.2 Develop ScheduleTools and Techniques, Resource Optimization: Leveling and Smoothing

Month 1 Month 2 Month 3 Month 4

Product Manager

Resource plans are best when resource requirementsincrease and decrease without variations

0.5

1.0

1.5

The resource histogram is a time-phased display of the amount of project work assigned to each resource

• May be used at the individual or group level• May be used to detect over-allocation of resources• Avoid over-allocation, under-allocation, and peaks and valleys

(PMBOK Fourth Edition, Page 156)

Scheduling Tool

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PMP® Prep: PMBOK® 5th - 2013Page 112

Critical Path: A-D-F and

B-E-F

4 Days Slack

A C

D

F

EB

Start Finish

2 2

4

2

3 3

2 3

1

1 1

2

Duration in Days

Work Force RequiredWork Force Available Each Day: 4 People

A

D

FC

B

E

2 2

1 1 1 1

2 23 3

1 1 1

1 1 1

1 2 3 4 5 6 7 8Days

Work Force 3 3 5 5 2 2 2 2

Network Analysis and Resource Leveling

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A C

D

F

EB

Start Finish

2 2

4

2

3 3

2 3

1

1 1

2

A

B

E

2 2

D

F

1 1 1 1

2 2

C3 3

1 1 1

1 1 1

1 2 3 4 5 6 7 8 9 10Days

Work Force 3 3 4 4 2 2 1 1 2 2

2 Days Slack

Page 112

Network Analysis and Resource Leveling

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Pages 113

6.6.2 Develop ScheduleTools and Techniques, “What if” Scenario Analysis

“What-If” analysis is the process of evaluating scenarios and their effect on schedule,i.e., “what if” a major component delivery is delayed? It assesses effect of adverseconditions on the project schedule and helps with response planning.

Simulations calculate multiple project durations with different activity assumptions.They use three-point estimates (PERT) to determine duration uncertainty. The mostcommon simulation uses Monte Carlo analysis. Possible activity durations are definedand used to calculate outcomes for the total project. Simulations are valuable foranalyzing the sensitivity of the project to changes and for addressing the impact ofuncertainty in the network logic, duration of activities, and availability of resources.

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Applying Leads and Lags

A lead allows acceleration of the successor activity (you

“lead in” to fast track a project).

A lag directs a delay in the successor activity (you “lag out” to

allow a waiting time).

ExamTip

Pages 114


If you can’t change the scope, there are two ways to meet schedule constraints:

CrashingA technique used to shorten the schedule duration for the least

incremental cost by adding resources.

Page 114

6.6.2 Develop ScheduleTools and Techniques, Schedule Compression

ExamTip

Fast TrackingA technique where activities or phases normally done in sequence

are done in parallel for at least a portion of their duration. Fast tracking may result in rework and increased risk.

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Exercise

Task Original Duration

in months

Crash Duration

in months

Time Savings

Original Cost in $

Crash Cost in $

Extra Cost in $

Extra Cost in $ per mth

Risk Impact

F 14 12 2 10,000 14,000 4,000 2,000 HIGH

A 9 7 2 17,000 27,000 10,000 5,000 LOW

H 3 2 1 25,000 26,000 1,000 1,000 LOW

G 7 6 1 14,000 16,000 2,000 2,000 HIGH

C 11 8 3 27,000 36,000 9,000 3,000 NONE

1. What option below would you select to save three months on the project assuming that the tasks listed below represent critical path?

There is no answer. The answer depends on whether cost or risk is most important.

2 Lets assume that time is of most importance followed by cost. Such questions are on the exam. What would be your answer?

The answer would be to select tasks F and H for an additional cost of $5,000.If risk is second to time in importance the answer would be to select task C foran additional cost of $9,000. The exam will probably not include risk columnbecause risk (nor quality) is not considered when most people crash or fast tracktheir projects. Without a risk column, simply pick the least cost alternative

Page 116


The Project Schedule may be presented in tabular form, however it’s moreoften presented graphically using milestone charts, bar charts or projectschedule network diagrams. The schedule baseline is a specific version of theproject schedule that is accepted and approved by the project team. It is acomponent of the project management plan

6.6.3 Develop ScheduleOutputs, Project Schedule

Page 117

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Example: Milestone Chart

Example: Bar Chart, Gantt Chart

6.6.3 Develop ScheduleOutputs, Project Schedule

Example Schedules

Page 117

ID Task Name

1 Mark Out Site

2 Dig Foundation A

3 Dig Foundation B

4 Concrete Foundation A

5 Concrete Foundation B

6 Com plete Base at A

7 Erect Plinth

8 Erect Tower A

9 Erect Tower B

10 Erect Span

F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T

Nov 9, '97 Nov 16, '97 Nov 23, '97 Nov 30, '97 Dec 7, '97 Dec 14, '97 Dec 21, '97


The Project Schedule

• May be represented by a Gantt chart, an activity network diagram, or a milestone chart

• Indicates the planned start and finish dates for each WBS element

• May also indicate early start, late start, early finish, and late finish dates for each activity

Definition

Brochures

Support

Margin

Stock

Profi le

Training

Acceptance

Go/No Go

DecisionAdvertizing

Training

DBT Stocking &

Measuring Sys

Sales Aids &

Brochure

Production

Go/No Go

Launch

Program Launch

Sales

Name Duration

Definition1w

Feasibility30d

Brochures1w

Margin2w

Stock Profile4w

Support2w

Training2w

Acceptance1w

Go/No Go Decision 0d

Program Development35d

Sales Aids & Brochure3w

Advertising 4w

Training 5w

DBT Stock & Measure 7w

0d

Program Launch 1w

Sales 12w

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7

Page 118

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Turn to page 387 in the workbook

There are 60 questions.

You have 72 minutes to complete

Answers are on page 404

Practice Test #1

Page 387

Hint: Use scratch paper for answers,so you can reuse the questions for practice


7.1 Plan Cost Management

Planning: Cost Management

Outputs

Cost management plan

Tools & Techniques


Inputs

Project management planProject charterEnterprise environmental factorsOrganizational process assets

Page 119

PMBOK® Fifth Edition,

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Plan Cost Management

Plan Cost Management is the process that establishes policies, procedures, documentation for planning, expending, and controlling project costs. This is a component of the project management plan.

Inputs

• Project Management Plan Information to develop the Cost Management Plan:

• Scope baseline

• Schedule baseline

• Other information

• Project Charter (Provides a summary budget)

• EEF and OPA

Page 120


Plan Cost ManagementTools and Techniques

• Expert Judgment

• Analytical Techniques (Choosing options to fund the project: self-funding, equity funding, or debt funding. Ways to finance resources: make, buy, rent, or lease. Policies may influence: ROI, payback period, internal rate of return, discounted cash flow, and net present value.)

• Meetings

Page 120

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Plan Cost ManagementOutputs

• Cost Management Plan units of measure,

level of precision,

level of accuracy (e.g., ±10%),

organizational procedures (the WBS is a framework for cost estimating),

control threshold (% deviation from the baseline plan),

rules of performance measurement (EVM),

reporting formats (format and frequency of cost reports),

process descriptions,

strategic funding, exchange rate fluctuations, and cost recording.

Page 121


7.2 Estimate Costs


Outputs

Activity cost estimatesBasis of estimatesProject documents updates

Tools & Techniques

Expert judgmentAnalogous estimatingParametric estimatingBottom-up estimatesThree-point estimatesReserve analysisCost of qualityProject management

softwareVendor bid analysisGroup decision-

making techniques

Inputs

Cost management planHuman resource mgt. planScope baselineProject scheduleRisk registerEnterprise environmental factorsOrganizational process assets

Page 122



7.2 Estimate Costs

Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.

Usually they are expressed in monetary terms, although other units of measure such as person hours or staff days are often used.

Costs include the resources to be charged to the project which includes labor, but may also include also materials, equipment and facility fees and services.

Both direct and indirect costs should be considered.

Page 123


7.2 Estimate Costs PMBOK® Fifth Edition,

Page 124

Cost estimates are progressively elaborated during the course of theproject as additional detail becomes available. Accuracy increasesthrough the project life cycle.

For example, a project in the Initiation phase could have a roughorder of magnitude (ROM) estimate in the range of -25% to +75%.Later in the project as more detail is known, estimates could narrowto -5% to +10%.


7.2.2 Estimate CostsInputs

Pages 123-125

• Cost Management Plan (how project costs will be managed and controlled)

• Human Resource Management Plan(project staffing plan, personnel rates, rewards/recognition)

• Scope baseline(Scope statement, WBS, and WBS dictionary)

• Project Schedule (type and quantity of resources and time required to complete the work)

• Risk Register(negative risks cause near-term costs to increase and project schedules may be delayed)

• EEF and OPA


7.2.2 Estimate CostsInputs

Page 123

• Should be determined per unit of use (e.g., hours, meters, kilos)• Salaries should be known at the individual or group rate• Components of labor rates may include:

– base rate– tax burden if applicable (as a percentage of base rate)– benefit burden if applicable (fixed or percentage of base rate)– allocation for overhead (percentage of burdened rate)

Charge Rate = [(Base Rate) * (Burden)] * Overhead

i.e., Charge Rate = [($30/hr) * (1.3)] * 1.8 = $70/hr.


Expert Judgment: consult with experts and obtain historical information.

Analogous Estimating: top-down estimating - a similar project is the basis of estimates for the current one. It is most reliable when previous projects are similar.

Parametric Estimating: uses a statistical link between historical data and the current project which is then used for calculation (e.g., cost per square foot).

Reserve Analysis: a contingency reserve may be used to account for cost uncertainty

Cost of Quality (COQ): determining costs incurred to assure quality

Project Management Software: simplifies cost estimating. Rapid alternatives evaluation

Vendor Bid Analysis: bids from suppliers help analyze what a project should cost

7.2.2 Estimate CostsTools and Techniques

Pages 126-129

Bottom-Up Estimating: the smaller the activity, the more accurate is the cost estimate.

Three-Point Estimates (PERT): a weighted average, more accuracy. Ce =o + 4m + p

6

Group Decision-Making Techniques: Delphi or nominal group techniques improve cost accuracy and the team commitment to cost estimates



ExamTip

People doing the work create time & cost estimates

Analogous Cost Estimating (a form of expert judgment):Estimating cost of a current project by extrapolation from actual cost ofa previous project. Also called top-down estimating. Inexpensive butmay also be inaccurate.

Parametric Cost Estimating:The quantities for specific work multiplied by the resource rate can estimate cost (number of drawings times cost per drawing, cost per line of code, cost per square foot for types of construction).

Bottom-Up Estimating:Rolling up the WBS estimates to get a project total.

Task “A”


Est. HoursWho?

Page 128

Page 128

Quantitative EstimateIndication of Range

Indication of Confidence

60 5days with 68% confidence60 10 days with 95.5% confidence60 20 days with 99.7% confidence

o = most optimistic cost estimatep = most pessimistic cost estimatem = most likely cost estimate

Ce =o + 4m + p

6

(Ce) = p – o

6

Ce 1 <=> 68% probabilityCe 2 <=> 95.5% probability

Ce 3 <=> 99.7% probability

45 50 55 60 65 70 75 80 8540

3-Point Analysis or

PERT

Hours


AACE International Cost Classification Recommended Practices

Class Name End Usage Level of Project AccuracyDefinition Range

5 Rough Order of Magnitude Concept Screening 0 to 2% L: -20 to -50%

(ROM) H: +30 to +100%

4 Concept Study or Feasibility 1 to 15% L: -15 to -30%

H: +20 to +50%

3 Budget/Authorization Budget Authorization 10 to 40% L: -10 to -20%

or Control H: +10 to +30%

2 Definitive/Control Control or Bid/Tender 30 to 70% L: -5 to +15%

H: +5 to +20%

1 Detail/Bid/Tender Check Estimate or 50 to 100% L: -3 to -10%

Bid/Tender H: +3 to +15%

PMI, PMBOK®

Order of Magnitude Estimates: -25% to +75%(Usually made during Initiation Phase)

Budget Estimate: -10% to +25%(Usually made during the Planning Phase)

Definitive Estimate: -5% to +10%(Roll up of WBS? Rule of 80 hours or two weeks?)

7.2.3 Estimate CostsOutputs, Accuracy of Estimates

ExamTip

These come up often on the exam, but are easy

to answer once you memorize the numbers.

Page 130




Outputs

Cost baselineProject funding requirementsProject documents updates

Tools & Techniques

Cost aggregationReserve analysisExpert judgmentHistorical relationshipsFunding limit reconciliation

Inputs

Cost management planScope baselineActivity cost estimatesBasis of estimatesProject scheduleResource calendarsRisk registerAgreementsOrganizational process assets

Page 131

PMBOK® Fifth Edition,

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7.3.1 Determine Budget

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

The cost baseline is the time-phased project budget, but excludes management reserves.

Inputs

Cost Management Plan Scope Baseline Activity Cost Estimates Basis of Estimates Project Schedule Resource Calendars Risk Register Agreements Organizational Process Assets

Pages 131-132


7.3.2 Determine Budget

Pages 133-134


Cost Aggregation: work package costs at the bottom of the WBS are summed (aggregated) to the next level, then costs at this level are summed to higher levels, etc. This is called “rolling costs up the WBS” to develop an overall cost budget.

Reserve Analysis: establishes both contingency reserves (unplanned changes due to

identified risks, “known unknowns”), and management reserves (unplanned changes to

project scope and cost, “unknown unknowns”). Reserves are NOT part of cost baseline, and not part of earned value calculations, but are included in the budget.

Expert Judgment: budgeting information from prior, similar projects.

Funding Limit Reconciliation: funding limits may be set by the customer to which spending must be reconciled. This might cause rescheduling and reallocation of resources to regulate cash flow.

Historical Relationships: parametric analysis from historical sources can predict total costs. Math models are used.

ExamTip


Time

Cost Cost Baseline

Cumulative Planned Value (PV)

Monthly Planned Value (PV)

Spending Plans and Cash Flow

Plans are special types of Cost

Baselines

Cost Baseline: a time-phased budget (either by period or cumulative over the life of the project) used to measure, monitor and control project costs.

BAC

7.3.3 Determine BudgetOutputs, Cost Baseline, or Performance Measurement Baseline (PMB)

Page 134

ExamTip

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Project Budget Components

Cost Baseline

Project Budget

ControlAccounts

Contingency Reserve

Management Reserve

Work Package Cost Estimates

Activity Contingency Reserve

Activity Cost Estimates

Total Amount

Project Budget Component


Page 135


7.3.3 Determine BudgetOutputs: Funding Requirements and Management Reserve

Page 136

Time

Cost

Cost Baseline


Cash Flow

Funding

} Management Reserve

Project Budget

BAC

Expenditures

ExamTip


A Review



Think of the PM plan as a bucket into which all the other plans “drip” until it is full.

Pages 45 & 49



Make a list of items that go into a Project Plan in the spaces provided below :

Exercise


Make a list of items that go into a Project Plan in the spaces provided below :

Exercise

Project Management Plan

Collect requirements

Define Scope

Create WBS

Plan Schedule Management

Define Activities

Sequence Activities

Est. Activity Resources

Est. Activity Durations

Develop Schedule

Plan Cost Management

Estimate Costs

Determine Budget

Plan Quality

Develop HR Plan

Plan Communications

Plan Risk Management

Identify Risks

Perform Qual. Risk Analysis

Perform Quant. Risk Analysis

Plan Risk Responses


Plan Procurement

Plan Stakeholder Mgt.

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Chapter 8: Project Quality ManagementPMBOK Fifth Edition, Page 227

Knowledge Area

Quality is the degree to which a set of inherent characteristics fulfill requirements

Page 139

Quality management processes include:

8.1 Plan Quality Management: The process of identifying quality requirements/standards for the project and its deliverables, and documenting how the project will demonstrate compliance.

8.2 Perform Quality Assurance: The process of auditing the quality requirements, and results from quality control measurements, to ensure that appropriate quality standards and operational definitions are used.

8.3 Control Quality: The process of monitoring and recording results from executing quality activities to assess performance and recommend changes.

Quality management here is compatible with ISO (International Organization for Standardization) as well as Shewhart, Deming, Juran, Crosby, FMEA (Failure Modes and Effects Analysis), Customer Satisfaction, The Voice of the Customer, Prevention over Inspection, COQ (Cost of Quality), and Continuous Improvement (Total Quality Management, Six-Sigma, maturity models), and Management Responsibility.

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Chapter 8: Project Quality Management

Quality: The degree to which a set of inherent characteristics fulfill requirements.

Grade: Products that perform the same function but have different technical characteristics.

A product may be high quality (no obvious defects) but low grade (limited number of features)

Quality vs. Grade

Page 139

ExamTip


Chapter 8: Project Quality Management

Precision vs. Accuracy

Page 140

ExamTip

Precision = Consistency.

Accuracy = Correctness.

Precision: repeated measurements have little scatter.

Accuracy: measured value is close to the true value.

Precision

Accuracy


Note to Test Takers

Quality is one of the most heavily tested areas on the examination.

Study it completely during your preparations to take the test!

Page 141


8.1 Plan Quality Management

Planning: Project Quality Management

Outputs

Quality management planProcess improvement planQuality metricsQuality checklistsProject documents updates

Tools & Techniques

Cost-benefit analysisCost of quality (COQ)Seven basic quality toolsBenchmarkingDesign of experimentsStatistical samplingAdditional quality planning

toolsMeetings

Inputs

Project management planStakeholder registerRisk registerRequirements documentationEnterprise environmental factorsOrganizational process assets

Page 142


8.1 Plan Quality Management PMBOK® Fifth Edition, Page 231

Plan Quality is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance.

The Quality Management Plan, which is an output of this process, describes how the project management team will implement the quality policy and meet the quality requirements.

Quality is planned, designed, and built into the project. It is not inspected in.

Page 142


8.1.1 Plan Quality Management

Pages 142 & 143

Inputs

• Project Management Plan, which includes:

Scope Baseline (Scope statement, WBS, and WBS dictionary),

Schedule & Cost Baselines, etc.

• Stakeholder Register

• Risk Register

• Requirements Documentation(stakeholder quality requirements)

• EEF and OPA


8.1.2 Plan Quality ManagementTools and Techniques

Cost-Benefit Analysis: compares COQ with expected benefits.

Cost of Quality (COQ): investment in preventing non-conformance to requirements.

Seven Basic Quality Tools: (1) cause and effect diagrams, (2) flowcharts, (3) checksheets, (4) Pareto diagrams, (5)histograms, (6) control charts, (7) scatter diagrams.

Statistical Sampling: inspecting part of a batch to qualify the whole population.

Additional Quality Planning Tools: brainstorming, force field analysis, nominal group technique, quality management and control tools.

Meetings

Benchmarking: comparing to similar projects to identify best practices.

Design of Experiments: statistical: what factors influence project variables?

Pages 144 - 151


8.1.2 Plan Quality

Page 143

Tools and Techniques: Quality Definitions

Conformance to Requirements, Specifications and Fitness For Use:

• This one phrase will help you to answer about 4 questions on the exam.Memorize it!

• The PM should perform careful “needs” analysis of the stakeholders which become foundations of the Scope

Gold Plating:

• PMI® does not support giving the customer “extras”.

• Gold Plating adds no value to the project.

• Exam questions have the team member’s coming to the PM with impressions of what the customer would like.

Prevention over Inspection

Note: There may be 15 or more questions relating to definitions and control charts

ExamTip


8.1.2 Plan Quality

Page 145

Tools and Techniques: Cost of Quality (COQ)

Cost of Conformance Cost of Nonconformance

Prevention Costs(Build a quality product)

• Training

• Documentation processes

• Equipment

• Time to do it right

Appraisal Costs(Assess the quality)

• Testing

• Destructive testing loss

• Inspections

Internal Failure Costs(Failures found by project team)

• Rework

• Scrap

External Failure Costs(Failures found by the customer)

• Liabilities

• Warranty work

• Lost business

Money spent to avoid failures

Money spent because of failures

ExamTip



Page 145-146

Tools and Techniques: Flowcharting

Cause & Effect, Ishikawa or Fishbone Diagrams

EFFECTCAUSES

People

Lack of Training

MethodsMaterial

Transport IT System Procedure

Process Flowchart

Design Review

Revise

OK?Yes

Proceed

No

Not Following Procedures


8.1.2 Plan Quality ManagementTools and Techniques: Flowcharting, SIPOC Model

Suppliers Inputs Process Outputs Customers____________ ____________ ____________ ____________ ________________________ ____________ ____________ ____________ ________________________ ____________ ____________ ____________ ____________

Supplier Process Customer

Input Output

Requirements and Feedback Loop

Requirements and Feedback Loop

Requirements List Measurements List Requirements List Measurements List

____________ _____________ _____________ _________________________ _____________ _____________ _________________________ _____________ _____________ _____________


Page 145-146



Page 147

Tools and Techniques: Pareto Diagrams and Design of Experiments

source

% c

on

trib

uti

on

(o

r fr

equ

en

cy o

f o

ccu

rren

ce)

Pareto’s Law:

80/20 Rule

80%?

Design of Experiments:

Which factors may influence specific variables?

“What If” Analysis


A histogram shows central tendency, dispersion, and shape of a statistical distribution.

0.5

1.0

1.5

8.1.2 Plan Quality ManagementTools and Techniques: Histograms

Page 147



Page 148

Tools and Techniques: Control Charts

A chart of process performance over time used todetermine if the process is in control or out of control

in control normal distribution of outcomes due to common causes of variation

inherent in the process

out of control rule of seven, trends, and cycles due to special causes of variation

external to the process

±1

6

8%

±2

9

5.5

%

±3

9

9.7

%...

...

.....

..................

UCL

LCL

......

Mean

.Normal

Distribution Curve

Expected Variation

Out of Control(Assignable Cause)



Page 149

Tools and Techniques: Control Chart

Plan or Mean

UCL

LCL

Lower Spec. Limit

Upper Spec. Limit

Actual

Hours recorded for this project started on plan, but if the trend continues, hours spent will drift out of control.


8.1.2 Plan Quality ManagementTools and Techniques: Scatter Diagram

Page 149


0 5 10 15 20 250

2

4

6

-2

-4

-6

Total Travel Days in the Month

Sub

mis

sio

n D

ays,

Ear

ly (

-), L

ate

(+)

o o o

o

o

o

o

o

o

o

o

o

o oo

o o

o

oo o o

Timecard Submission vs. Travel Days

8.1.2 Plan Quality ManagementTools and Techniques: Scatter Diagram

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013PMBOK® Fifth Edition, Page 239


8.1.2 Plan Quality ManagementTools and Techniques: Seven Basic Quality Tools



Page 150-151

Tools and Techniques: Statistical Sampling

…a technique for accepting or rejecting a larger population by choosing a part of the population for inspection ...

• Statistical sampling can reduce the cost of QC on a project.

• The validity of statistical sampling depends on anappropriate choice of sample items and sample size.

• Sample size increases exponentially as the level of desired certaintyincreases and the acceptable level of error decreases.

• Sampling strategies include single samples from a lot, multiple smallsamples from a lot, and double sampling methods where the size of thesecond sample depends on the results of the first sample.

• All sampling strategies involve some risk of producer error (type I error)where acceptable lots are rejected based on a non-representative sampleor consumer error (type II error) where unacceptable lots are acceptedbased on a non-representative sample.



Page 151

Tools and Techniques: Additional Quality Planning Tools, Affinity Diagram

These include brainstorming, affinity diagrams, force field analysis, nominal group techniques, matrix diagrams, flowcharts, and prioritization matrices.

Affinity Diagrams are useful for gathering large amounts of data (opinions, ideas etc.) and for organizing them intogroupings based on their relationship. An Affinity Diagram can help to identify patterns within data providingrecourse for further investigation or action.

Force Field Analysis looks at all the forces for and against a decision. In effect, it is a specialized method ofweighing pros and cons. You can plan to strengthen the forces supporting a decision, and reduce the impact ofopposition to it.

A nominal group technique is a structured process which identifies and ranks the major problems or issues thatneed addressing.


8.1.2 Plan Quality

Page 151

Tools and Techniques: Additional Quality Planning Tools, Group Creativity

Brainstorming: a method of joint creative thinking that first records andconsiders all possible options/solutions without judgment beforeproceeding to critical evaluation of the project/product requirements.

Nominal Group Technique: enhances brainstorming with a voting processto rank the best ideas for further brainstorming or prioritization.

Delphi Technique: questionnaires are sent to a group of experts whoprovide answers and are kept anonymous. Responses are compiled,prioritized, and sent back for another round of requirements gathering. Amethod for building consensus.

Idea/Mind Mapping: a graphical method of consolidating brainstorm ideasto show commonality and differences and to generate new ideas.

Affinity Diagram: gathering large numbers of ideas and sorting them intogroups for review and analysis – they help to identify patterns within data.



Pages 152 & 153

Outputs

• Quality Management Plan

• Process Improvement Plan (process boundaries, configuration, metrics, and targets for improved performance)

• Quality Metrics

• Quality Checklists

• Project Documents Updates (stakeholder register, responsibility assignment matrix, WBS, WBS dictionary, etc.)



Pages 155

Outputs: Update Responsibility Assignment Matrix (RACI Chart)

R = Responsible

A = Accountable

C = Consulted

I = Informed


Chapter 9: Plan Human Resource ManagementPMBOK Fifth Edition, Page 255

Human resource management includes the processes that organize, manage, and lead the project team

The project management team (core, executive, or leadership team) is a subset of the project team

and is responsible for leadership activities.

ExamTip

Page 155

Knowledge AreaProject Human Resource Management processes include:

9.1 Plan Human Resource Management: The process of identifying and documenting project roles., responsibilities required skills, reporting relationships, and creating a staffing management plan.

9.2 Acquire Project Team: confirming HR availability and obtaining the team to complete project activities.

9.3 Develop Project Team: improving competencies, team members interaction, and team environment to enhance performance.

9.4 Manage Project Team: tracking team member performance, providing feedback, resolving issues, and managing change to enhance project performance.


9.1 Plan Human Resource Management

Planning: Human Resource Management

Outputs

Human resource management plan

Tools & Techniques

Organization charts and position descriptions

NetworkingOrganizational theoryExpert judgmentMeetings

Inputs

Project management planActivity resource requirementsEnterprise environmental factorsOrganizational process assets

Page 156



9.1 Plan Human Resource Management PMBOK® Fifth Edition, Page 258

Plan Human Resource Management is the process of identifying and documenting project roles, responsibilities, required skills and reporting relationships and creating a staffing management plan

Page 156


9.1.2 Plan Human Resource Management

Pages 158-159

Tools and Techniques: Organization Charts and Position Descriptions

Hierarchical Chart

Project Organization Chart. shows project team members related to their work on the project. Simply substitute the name of the team member into the box of the WBS

Banking Protocols

Customer Services(TM #1)

Information Tech. and IS

(TM #2)

Operations(TM #3)

Regulatory(TM #4)

System Design(TM #22)

System Development

(TM #23)

Legal(TM #41)

Filing & Documentation

(TM #42)

Accounting Relations(TM #61)

Global Trans. Services(TM #51)

Cash Management

(TM #52)

Audit & Inspection(TM #53)

System Analysis(TM #21)

Product Planning(TM #11)

Treasury(TM #5)

Project Management

(PM)

Training(TM #31)

Sales(TM #12)

Integration Protocols(TM #32)

Strategic Planning(TM #62)



Pages 158-159


Resource Breakdown Structure and Organizational Breakdown Structure

Resource Breakdown Structure breaks down projects by type of resource. It can help track project costs and can contain categories other than human resources.

Organizational Breakdown Structure (OBS) is a depiction of the project organization arranged to relate work packages to functional departments.



Page 159


Organizational Breakdown Structure

Project

Design Production

Comp. #2Comp. #1Comp. #2Comp. #1

Com

pan

y

Engin

eeri

ng

Man

ufa

cturi

ng

Ass

emb

lyP

arts

Ele

ctri

cal

Mec

han

ical

Cost

Account

Cost

Account

Cost

Account

Cost

Account

Cost

Account

Cost

Account

Cost

Account

Cost

Account

Cost Accounts provide a way to control how functional organizations to charge to projects.

WBS Codes show functional managers exactly what their people are doing on the project.



Page 160


Matrix Charts

PMI® advocates that all roles and responsibilities on a project be

clearly assigned and be linked to scope and to the WBS.

• Often used for decision responsibilities or to resolve conflict.

• Multiple RAMs at different levels of the project, also called LRCs.

• Other responsibility charts: Resource Histogram, Resource Gantt

Chart - know these.

Responsibility Assignment Matrix (RAM)

RAM (n.) a structure that relates the OBS to the WBS to ensure that

the scope of work components are assigned to a responsible person.

Design Lead Support Advise Advise Advise

Prototype Support Lead Advise Advise Advise

Scale Up Advise Advise Lead Support Support

Production Advise Advise Advise Lead Support

Assembly Advise Advise Advise Support Lead

Dav

e

Mar

y

Gav

in

Bo

b

Tom

R = Responsible

A = Accountable

C = Consulted

I = Informed



Page 161


Text-Oriented Forms

Position Descriptionsshow team member responsibilities, authority, competencies, and qualifications outlined in a text document. These can be used for Performance Evaluations



Pages 162-163

Outputs

Human Resource Management Plan roles and responsibilities, project organization charts, staffing management plan:

Staff Acquisition

Resource Calendars

Staff Release Plan

Training Needs

Recognition and Rewards

Compliance

Safety.


9.1.2 Develop Human Resource Plan

Page 163

Outputs: Resource Calendars, PMBOK Fifth Edition, Page 265

Resource Histogram is a time-phased display of

the amount of project work assigned to each resource

• May be used at the individual or group level• May be used to detect over-allocation of resources


Chapter 10: Project Communications ManagementPMBOK Fifth Edition, Page 287

Knowledge Area

Project Communications Management includes the processes required to ensure timely and appropriate generation, collection,

distribution, storage, retrieval, and disposition of project information.

Page 164

Project Communications Management processes include:

10.1 Plan Communication Management: the process of developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements,

10.2 Manage Communications: the process of creating, collecting, distributing, storing, retrieving, and disposition of project information.

10.3 Control Communications - the process of monitoring and controlling communications throughout the entire project life cycle to ensure information needs of stakeholders are met.


10.2 Plan Communications Management

Planning: Project Communications Management

Outputs

Communications management plan


Tools & Techniques

Communication requirements analysis

Communication technologyCommunication modelsCommunication methodsMeetings

Inputs

Project management planStakeholder registerEnterprise environmental factorsOrganizational process assets

Page 165


10.2 Plan Communications Management PMBOK® Fifth Edition, Page 289

Communications Management is so important that it is sometimes included

as a major WBS element

Page 165

Study Concept Prototype Qualification

Typical

Project

Pilot Production Project Management &

Communications Plan


10.2.2 Plan Communications Management Tools and Techniques

Communications Requirements Analysis

Communication Technology

Pages 166-167

Consider the following information as you plan your project communications:

• the project organization and stakeholder responsibility relationships• the functional departments involved in the project• the logistics: persons involved with the project and their locations• external information needs: communicating with external

stakeholders and the media

Communications planning will be both enhanced and constrained by the available communications technology.

• urgency of need for the information• availability, ease of use, and cost of the technology• experience and expertise of the project staff and other stakeholders• life of the available technology relative to the length of the project• project environment. Does the team meet face-to-face or in a virtual

environment• Sensitivity and confidentiality of the information.


10.2 Plan Communications Management

Plan Communications is the process of determining the project stakeholder information needs and defining a communication approach

N(N – 1)

2

Channels =

The formula:

Reveals the number of possible channels of communication in a group, where N is the number of people in the group


Page 166-167


10.2.2 Plan Communications Management

If a project team of 5 people adds one more person to the team, how many more

channels of Communication are there?

Try it ….


5 more

Page 167


10.2.2 Plan Communications Management Tools and Techniques: Communication Models

Page 168

Articulating

Hearing

Listening

Transmitting

Thinking

Sending

Receiving

Feedback !!

The basic model of communication is the send-receive model which includes:• Encoding (translating ideas to language), • Transmit Message (transmitting),• Medium (methods used to transmit)• Noise (disruptions), and • Decoding (translate for receiver)• Acknowledge (receipt of message)• Feedback (back to sender).


10.2.3 Plan Communications Management Outputs: Communications Management Plan

Page 169

The Communications Management Plan usually provides:

• Stakeholder communication requirements• Information to be distributed• Reason for the distribution• Time frame and frequency• Communication responsibilities


10.2.3 Plan CommunicationsOutputs: Communications Management Plan

Page 170

documents a communication strategy for the project and describes:

Stakeholder communication requirements

Which information flows from whom, when, via which media, and in what format.

Schedule and frequency for information collection and distribution.

Methods to convey information (memos, e-mail, press releases, etc.)

Resources for communication activities, including time and budget

Problem escalation procedure

Method for updating the communication plan

Flow charts of information flow

List of reports and meetings planned (schedule and attendees)

Communications constraints

“Communications infrastructure” for the project (who may talk to whom)


Chapter 11: Project Risk ManagementPMBOK Fifth Edition, Page 309

Knowledge Area

Project risk management includes the processes of conducting risk planning, identification, analysis, response

planning, and monitoring and control on a project.

Page 171

Project Risk Management processes include:

11.1 Plan Risk Management: deciding how to approach, plan and execute risk management,

11.2 Identify Risks: which risks might affect the project and documenting their characteristics,

11.3 Perform Qualitative Risk Analysis: probability of occurrence and severity of impact,

11.4 Perform Quantitative Risk Analysis: numerically analyzing the effect of risks on objectives,

11.5 Plan Risk Responses: developing options to enhance opportunities and reduce threats.

11.6 Control Risks: implementing risk response plans, tracking risks, monitoring residual risks, ID new risks, and evaluating effectiveness throughout the project life cycle.


Chapter 11: Project Risk Management

Page 171

• Project risk includes both threats to the project’s objectives (negative outcomes) and opportunities to improve on those objectives (positive outcomes) - PMBOK® Fifth Edition, page 310.

• Uncertainty: An uncommon state of nature, characterized by absence of information related to a desired outcome.

• Risk Management: The process of identifying, analyzing and responding to risk - maximizing positive events and minimizing consequences of negative events.

• Risk arises throughout a project and must be identified and evaluated on a regular basis over the life cycle of the project.

• Inputs to risk management process : All other planning processes, including Create WBS and

ExamTip



Planning: Project Risk Management

Outputs

Risk management plan

Tools & Techniques

Analytical techniquesExpert judgmentMeetings

Inputs

Project management planProject charterStakeholder registerEnterprise environmental factorsOrganizational process assets

Page 173




Plan Risk Management is the process of defining how to conductrisk management activities for a project.Risk planning should be commensurate with both the risks and theimportance of the project to the organization

Page 173


11.1.1 Plan Risk ManagementInputs

11.1.2 Tools and Techniques: Analytical Techniques, Expert Judgment, and Meetings

Pages 174-175

• Project Management Planprovides current state of risk-affected areas including scope, schedule, and cost

• Project Charter high-level requirements


• EEF and OPA


11.1.3 Plan Risk ManagementOutputs

Risk Management Plan, includes:

• Methodology: Approaches, tools and data sources.

• Roles and Responsibilities: Team member ownership for risk activities.

• Budgeting: Funds needed for contingency reserves and management reserves.

• Timing: When processes will be done, reserves applied, and how risk appears in schedule.

• Categories: Risk groupings. The RBS looks at sources of risk, IDs and categorizes them.

• Thresholds: What is the trigger? Stakeholders have different thresholds of risk tolerance, define them, and the must be agreed by all.

• Define P/I Levels: Qualitative (low to high) or probabilities.

• Risk Matrix: Likelihood-Severity, or Probability-Impact.

• Stakeholder Risk Tolerances: Progressively elaborated.

• Reporting Formats and Tracking: Document risk, auditing, defines content of risk register.

Page 176


11.2 Identify Risks


Outputs

Risk register

Tools & Techniques

Documentation reviewsInformation gathering

techniquesChecklist analysisAssumptions analysisDiagramming techniquesSWOT analysisExpert judgment

Inputs

Risk management planCost management planSchedule management planQuality management planHuman resource mgt. planScope baselineActivity cost estimatesActivity duration estimatesStakeholder registerProject documentsProcurement docs.EEFOPA

Page 177



11.2 Identify Risks

Identify Risks is the process of determining which risks may affect the project and documenting their characteristics .

All project personnel should be encouraged to identify potential risks

Page 177


11.2.1 Identify Risks

Pages 178

Inputs

• Risk Management Planprovides risk responsibilities, risk breakdown structure

• Cost, Schedule, Quality, and HR Management Plans

• Scope Baseline (scope statement, WBS, WBS dictionary)

• Activity Cost and Duration Estimates


• Project Documents (Charter, schedule, network, issue log)

• Procurement Documents

• EEF and OPA



Page 179

Tools and Techniques: Information Gathering Techniques

Brainstorming: a method of joint creative thinking that first records and considers all possible options/solutions without judgment before proceeding to critical evaluation of the project/product requirements.

Delphi Technique: questionnaires are sent to a group of experts who provide answers and are kept anonymous. Responses are compiled, prioritized, and sent back for another round of requirements gathering. A method for building consensus.

Interviewing: experienced stakeholders and SME can identify risks

Root Cause Analysis: Cause and Effect analysis to find causes and develop prevention actions.


11.2.2 Identify RisksTools and Techniques: Checklist Analysis

Checklist Analysis:

Risk identification checklists are developed from previous projects or lessons learned.

Lowest level of the WBS or RBS can be used as checklists. Teams should explore items not on the checklist. It

should be pruned as it is progressively elaborated. Review the checklist during project closure to incorporate

new lessons learned.

Page 180



Page 180

Tools and Techniques: Assumption Analysis

Assumption Analysis: explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness,

Assumptions involve risk -- identify the risk!

Assumption: a factor in the planning process considered to be true, real, or certain, without proof or demonstration:

• resource, equipment, and facilities availability• external timelines• technology compatibility• interpretation of legal and regulatory constraints



Page 181

Tools and Techniques: Diagramming Techniques


EFFECTCAUSES

People

Lack of Training

MethodsMaterial





Page 181

Tools and Techniques: Diagramming Techniques

An Influence Diagram is a visual representation of situationsshowing causal influences, time ordering of events, or otherrelationships among variables.

For example, “Unit sales” is a confluence point. What is theprobability that all activities leading into it and out of it willhappen at the scheduled time? It is a causal influence of risk.


11.2.2 Identify RisksTools and Techniques: Diagramming Techniques

Influence Diagram

Project Estimates

Risk Condition

Project Activity

Deliverables


Page 181



Page 182

Outputs: Risk Register

Risk Registera document where results of risk analysis and risk response planning are recorded:

List of identified risks

• “EVENT” may occur causing “IMPACT”

• If “CAUSE” exists, “EVENT” may occur leading to “EFFECT”

List of potential responses


11.3 Perform Qualitative Risk Analysis


Outputs


Tools & Techniques

Risk probability and impact assessment

Probability and impact matrixRisk data quality assessmentRisk categorizationRisk urgency assessmentExpert judgment

Inputs

Risk management planScope baselineRisk registerEnterprise environmental factorsOrganizational process assets

Page 183



11.3 Perform Qualitative Risk Analysis

Perform Qualitative Risk Analysisis the process of prioritizing risks for further analysis or action by assessing or combining their probability of occurrence and impact.

The Perform Qualitative Risk Analysis assesses priority of identified risks using “probability/Impact” or “likelihood of occurrence/severity” analysis to determine impact on project objectives if the risks occur.

Page 183

Probability

Impact


11.3.1 Perform Qualitative Risk AnalysisInputs

Page 184

• Risk Management Planprovides risk responsibilities, budget/schedule, P/I matrix, stakeholder risk tolerance, etc.


• Risk Register

• EEF and OPA


11.3.2 Perform Qualitative Risk AnalysisTools and Techniques, Risk P/I Assessment

Page 184

Risk Probability and Impact Assessment

• Probability is the likelihood that a risk event will occur.

• Impact is the effect (severity) on the objective (scope, schedule, cost, quality, performance) if the risk event occurs.

• These apply to specific risk events, not to the overall project.

• High likelihood and high consequence defines a risk that must be managed aggressively, or must be mitigated.

• Risks with low P/I ratings will be included on a watch list.


11.3.2 Perform Qualitative Risk AnalysisTools and Techniques, Probability and Impact Matrix

Page 185

Risk Probability and Impact Matrix

• The risk matrix is one of the simplest and most effective tools to analyze risk. It has probability (likelihood) on one axis and impact (consequence or severity) on the other.

• The scales can be either numeric or subjective.

• The organization should determine the threshold of risk that can be tolerated. This will determine: high risk (red light), moderate risk (yellow light), and low risk (green light).

• The score guides risk response actions.


11.3.2 Perform Qualitative Risk AnalysisTools and Techniques: P/I Matrix

Page 185

Project risk includes both threats to the project’s objectives (negative outcomes) and opportunities to improve on those objectives (positive outcomes) - PMBOK® 5th Edition, 331.

0.90

0.70

0.50

0.30

0.10

0.05

0.04

0.03

0.02

0.01

0.05

0.18

0.14

0.10

0.06

0.02

0.20

0.36

0.28

0.20

0.12

0.04

0.40

0.72

0.56

0.40

0.24

0.08

0.80

0.09

0.07

0.05

0.03

0.01

0.10

0.05

0.04

0.03

0.02

0.01

0.05

0.72

0.56

0.40

0.24

0.08

0.80

0.36

0.28

0.20

0.12

0.04

0.40

0.18

0.14

0.10

0.06

0.02

0.20

0.09

0.07

0.05

0.03

0.01

0.10

Probability Threats Opportunities

Impact (ratio scale) on an Objective

ExamTip



11.3.2 Perform Qualitative Risk AnalysisTools and Techniques: Risk Matrix

Page 186

HighMediumLow

Likelihood (Probability)

Low

High

Medium

Unacceptable

Managed

Controlled

Risk Legend

Identified, nocontingent plan

Must Mitigate


11.3.2 Perform Qualitative Risk AnalysisTools and Techniques:

Industry Guidelines

Page 196


11.3.3 Perform Qualitative Risk AnalysisOutputs: Project Documents Updates

Page 187

Project Documents Updates Risk register

• Assessments of P/I for each risk

• Risk ranking

• Risk categorization

• Watch list for low probability risks

Assumptions log updates


11.4 Perform Quantitative Risk Analysis


Outputs


Tools & Techniques

Data gathering and representation techniques

Quantitative risk analysis and modeling techniques

Expert judgment

Inputs

Risk management planCost management planSchedule management planRisk registerEnterprise environmental factorsOrganizational process assets

Page 188




Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives.

Perform Quantitative Analysis is used on risks that have been prioritized by qualitative analysis as substantially impacting project objectives.

Page 188



Page 188

Quantitative risk analysis

The Quantitative process analyzes priority risk events and assigns a

numerical rating. It also helps you make decisions in areas of uncertainty.

Quantitative Risk process uses techniques like Monte Carlo Simulationand decision tree analysis to:

★ Quantify outcomes for the project and the probabilities.

★ Assess the probability of achieving project objectives

★ Identify priority risks by quantifying their contribution to overallproject risk.

★ Identify realistic cost, schedule, scope and quality targets, given theproject risks.

★ Determine the best project decision when some outcomes areuncertain.


11.4.2 Perform Quantitative Risk Analysis

Page 190

Tools and Techniques: Data Gathering and Representation Techniques

Risk Interview

WBS Element

Build

Test

Total Project

Design

Optimistic PessimisticMost Likely

$4 M $6 M $10 M

$16 M $20 M $35 M

$11 M $15 M $23 M

$31 M $41 M $68 M

Likelihood of completing the project at or below $41 million is relatively low given the range and skew of the simulation results.


Page 190

Tools and Techniques: Data Gathering and Representation Techniques

Beta Distribution

60 5 hours with 68% confidence60 10 hours with 95.5% confidence60 20 hours with 99.7% confidence

o = most optimistic cost estimatep = most pessimistic cost estimatem = most likely cost estimate

Ce =o + 4m + p

6

(Ce) = p – o

6

Ce 1 <=> 68% probabilityCe 2 <=> 95.5% probability

Ce 3 <=> 99.7% probability

45 50 55 60 65 70 75 80 8540

3-Point Analysis or

PERT

Hours

Probability Distributions



Pages 191-193

Tools and Techniques: Quantitative Risk Analysis and Modeling Techniques

Sensitivity Analysis

Sensitivity Analysis helps determine which risks have the most impact on a project. A typical displayof sensitivity is the tornado diagram, which compares the importance of variables having highuncertainty to those that are more stable.

Expected Monetary Value

Expected Monetary Value (EMV) calculates average outcomes on uncertain future scenarios. TheEMV of opportunities will be positive values, where those of risks may be negative. That is, whenevaluating alternatives during project selection, EMV that is most positive (the higher number) isprobably the best outcome. However, when alternative risks are evaluated, perhaps the lowernumber (minimum risk) is best.

Decision Tree Analysis

Decision Tree Analysis is a common use of EMV analysis. It incorporates the cost of each availablechoice, the probabilities in each path, and the outcomes. Solving the decision tree provides theEMV for each alternative. As said before, in selecting competing projects the higher number maygive the best payback, but in evaluating risk alternatives, the lower number may be best.



Page 191


Sensitivity Analysis: Tornado Diagram

Low High

Var

iab

les

Uncertainty

What is a Tornado Diagram?The purpose of sensitivity analysis is to identify which uncertainty variables have the greatest impact on total value. Why create a Tornado Diagram?The tornado diagram helps identify uncertainties with the highest economic impact. (Risk-Adjusted NPV). 80% of the total uncertainty can be discovered by using the top 5-8 variables in the tornado diagram

(+) Positive Impact(-) Negative Impact

Risk 1

Risk 2

Risk 3

Risk 4

Risk 5

Uncertainty at base Values



Page 192


Expected Monetary Value (EMV)

$ 12,000

$ 10,000

$ 10,200

$ 8,000

$ 12,000

$ 10,000

Select “B” for lowest Risk


A Decision Tree : a common use of EMV analysis

New store or renovation?

Flagship store in new mall

(-$1,000,000) Stronger competition(-$50,000)

Increased shopper traffic

(+$100,000)

Renovate existing store

(-$250,000) Dwindling shopper traffic

(-$100,000)

Initial business surge

(+$50,000)

0.6

0.4

0.8

0.2

Exercise

Answer:

-$960,000

-$230,000

Page 192


EMV is the second most-tested topic on the exam after “the process of risk management”

ExamTip

1. Test yourself:

You are planning modifications to a product line. Below is the complete assessment of risks on the project Calculate the EMV of your budget’s reserve.

• 30% probability that parts delivery will be delayed at a cost of $50,000.

• 20% chance that the parts will be $10,000 less expensive.

• 25% likelihood that two parts will have interference fit, resulting in extra cost of $3,500.

• 30% chance that production will be simpler, saving us $2,500.

• 5% probability that design defects will cause $5,000 in rework.

Exercise

-

+

- - $13,375

+

-


2. Test yourself on a decision tree:

A

B

What is the EMV of A and B?

Exercise

Answer: $42K+$6K = $48K



Page 193


Modeling and Simulation

Monte Carlo Simulation

The most common simulation technique is Monte Carlo simulation.Earlier in the workbook it was called “What-If” analysis, where acomputer is used to calculate a distribution of possible outcomes forthe total project.

For example, calculate multiple project durations with different setsof activity assumptions and calculate a risk probability distribution.

For cost risk, simulations can use the WBS or cost breakdownstructure as its model.

For schedule risk, simulations use Precedence Diagramming Method(PDM) models.



Page 194



Uses the network diagram (PDM) and Three-Point Estimates as models to simulate schedule impacts on the project, and the WBS as its model using Three-Point estimates to simulate cost impacts, then “performs” the project several times to determine uncertainty.

• Indicates schedule risk by estimating probability that each task will be on the critical path.

• Accounts for task convergence - calculates increased schedule risk where paths in a network diagram converge into one task.

• Stakeholders (team) estimate cost ranges for each WBS element. Simulation shows probability of meeting the most likely budget estimate.



Cost

$30 M $38M $47M $56M $65M

Pro

bab

ility

0%

25

%5

0%

75

%1

00

%

$50M

Mean = $46M

$41M

Total Project Cost (cumulative)

The project is only 12% likely to meet the 41 million “most likely” cost estimate. If the organization wants 75% chance of success, $50 million is required (at contingency of 22%, [$50M-41M)/$41M]).

12%

Page 194

11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques

Modeling and Simulation, Cost Risk Simulation



Page 195


0 .25 .5 .75 1.0

Road Closed

Running out

of Gas

Getting Stuck

in Snow Drift

0 .25 .5 .75 1.0

Monte Carlo Simulation,

Overall Project Risk

5% Chance That

Probability is 75%

30% Mean Probability

of Project Failure




11.4.2 Perform Quantitative Risk AnalysisOutputs: Project Documents Updates

Risk Register Updates include: Probability analysis of the project

• confidence levels and distributions are used to calculate cost and time reserves.

Probability of achieving cost and time objectives

Priority list of quantified risks

Trends in risk analysis results


11.5 Plan Risk Responses


Outputs

Project management plan updates


Tools & Techniques

Strategies for negative risks or threats

Strategies for positive risks or opportunities

Contingent response strategies

Expert judgment

Inputs

Risk management planRisk register

Page 196



11.5 Plan Risk Responses

Plan Risk Responses is the process of developing options and actions to enhance opportunities and to reduce threats to project objectives

Page 196


11.5.2 Plan Risk ResponsesTools and Techniques: Strategies for Threats or Opportunities

• AvoidEliminate the threat by eliminating the cause.

• Transfer Contract the risk out. Transfer it to a third party with incentives, penalties, warranties, bonding, .. , purchase insurance.

• MitigateEffect the probability and/or the impact of the risk.

• ExploitEliminate uncertainty of upside risk to ensure opportunity happens

• ShareThird party helps to capture the opportunity

• EnhanceOpposite of Mitigation. Proactively target and reinforce the trigger to achieve a positive opportunity.

• Acceptance Know about the risk, but decide to accept the consequences if failure occurs.

NegativeRisk or Threats

PositiveRisk or

Opportunities

Both

ExamTip

Pages 197-199

• Knowledge and Research Perform tests & simulations. Consult experts. Start risk tasks as early as possible within available slack.


11.5.3 Plan Risk ResponsesOutputs: Contingency Reserve, Part of the Risk Register

Page 200

A provision in the project plan to mitigate cost and/or schedule risk

May be calculated as a percent of baseline to allow for overrunsMay be established as a separate fund for unforeseen problemsMay have many different (and application area specific) names:

• management reserve• contingency

May be assigned to any level of the WBS

ExamTip

PMI recommends aminimum totalreserve of 10%


11.5.3 Plan Risk ResponsesOutputs: Project Documents Updates

Page 201

Risk Register Updates include: Risk owners and their responsibilities, Agreed response strategies, Actions to implement from the response strategy, Trigger conditions and warning signs of risk occurrence, Budget and schedule activities to implement the response, Contingency plans and triggers that call for their execution, Fallback plans for inadequate risk responses, Residual risks remaining after response has been taken, and those

that have been deliberately accepted, Secondary risks that arise from implementing a risk response, Calculated contingency reserves,

Other Documents Updates: Assumption log updates. Technical documentation updates, Change requests processed


Chapter 12: Project Procurement Management

Page 202


Knowledge Area

Plan Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project

team. It includes contract management and change control processes, as well as administering contracts and obligations under the contracts.

12.1 Plan Procurement Management: Documenting purchase decisions, specifying the approach, and identifying potential sellers.

12,2 Conduct Procurements: Obtaining seller responses, selecting a seller, and awarding a contract.

12.3 Administer Procurements: Managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

12.4 Close Procurements: Competing each project procurement.


Chapter 12: Project Procurement Management

Page 202

Make or Buy

RFP/RFQ Issued

Proposal Received

Contract Award

Substantive Completion

Q&A

Procurement Process

Plan Purchases & Acquisitions

Plan Contracting

Request Seller

Responses

Select Sellers

Contract Administration

Contract Closure


12.1 Plan Procurements

Planning: Plan Procurement Management

Outputs

Procurement management plan

Procurement statement of work

Procurement documentsSource selection criteriaMake-or-buy decisionsChange requestsProject documents updates

Tools & Techniques

Make-or-buy analysisExpert judgmentMarket researchMeetings

Inputs

Project management planRequirements documentationRisk registerActivity resource requirementsProject scheduleActivity cost estimatesStakeholder registerEnterprise environmental

factorsOrganizational process

assets

Page 203


12.1 Plan Procurement Management

Plan Procurement Management is the process of documenting project purchasing decisions, specifying the approach and identifying potential sellers.

The plan procurements process involves deciding whether to “make-or-buy”, the consideration of potential sellers, and the consideration of the risks involved


Page 202


Contract TypesThere are several contract types that may be used, and the contract type determines how the

risk is shared between the buyer and the seller.

12.1.2 Plan Procurement ManagementInputs: Organizational Process Assets

Page 204-206


12.1.2 Plan Procurement Management

Fixed Price/Lump Sum Contracts: • Firm Fixed Price (FFP)• Fixed Price Incentive Fee (FPIF)• Fixed Price with an Economic Price

Adjustment (FP-EPA)

Cost Reimbursable Contracts:

Unit Price or Time & Materials Contracts (T&M)

• Cost Plus Fixed Fee (CPFF)• Cost Plus Incentive Fee (CPIF)• Cost Plus Award Fee (CPAF)

Contracts are risk mitigation tools Other professionals may handle the contract, but contracts

should not be created before the PM is assigned Match the contract type to the type of project Contract type will determine the balance of financial risk between

the buyer and the supplier.

Page 204-207



Page 207

Fixed Price (or Lump Sum) Type Contracts:

Cost Reimbursable Type Contracts:

Time & Materials Type Contracts:

Used on development projects for flexibility. Cost risk is on the buyer, so establish administrative & reporting systems to allow both buyer and seller visibility into costs. (Includes CPFF, CPIF, CPAF)

Used on well specified projects for which costs can be accurately estimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)

Used on projects where the deliverables are well defined, repetitive units but the quantities are not yet known (e.g., identical pieces of equipment, or labor hours and associated material costs – includes overhead and burden)

ExamTip



Page 208

FFP

FPEPA

FPAF

FPIS

FPIF

CPIF

CPAF

CS

CPFF

COST

Client, Customeror Buyer

Contractoror Seller

0%

100% 0%

100%

RISK

On the exam, contract questions are written

from the buyer’s perspective

RISK

Inputs: Organizational Process Assets


FFP

FPEPA

FPAF

FPIS

FPIF

CPIF

CPAF

CS

CPFF

COST

Firm Fixed Price: A negotiated fixed price to produce the good or service.

Fixed Price with Economic Price Adjustment: Unstable market or labor conditions, price can be adjusted up or down with a ceiling

Fixed Price Award Fee: award amount related to a subjective judgment of the quality of the contractor's performance.

Fixed Price Incentive (Successive Targets): Contains production point (s) at which either a firm target and final profit formula can be negotiated.

Fixed Price Incentive (Fee or Firm Target): target profit, and profit sharing formula are negotiated into contract, profit is adjusted upon contract completion.

Cost Plus Incentive Fee: positive profit incentives are negotiated.

Cost Plus Award Fee: Award fee is earned for performance, quality, timeliness, and cost effectiveness and can be earned in whole or in part.

Cost Plus a Fixed Fee: Level of effort is unknown, fee is expressed as percentage of estimated cost at time contract is awarded.

Cost Sharing: Development or research projects, contractor sees a commercial benefit which they accept in lieu of fee.

Cost: Typically for R&D with nonprofit organizations, educational institutions, and facilities contracts.

US Federal Acquisition Regulations (FAR 16.104)12.1.2 Plan Procurements Inputs: OPA


12.1.2 Plan Procurement ManagementTools and Techniques: Budget Implications

Page 209


12.1.2 Plan Procurement ManagementTools and Techniques: Profit or Fees for Different Contracts

Page 209


12.1.2 Plan Procurement ManagementTools and Techniques: Point of Total Assumption

Page 209

ExamTip

Is on the exam


Cost Plus Incentive Fee Calculation

Target cost $210,000Target fee $ 25,000Target price $235,000

Sharing ratio 80/20Actual cost $200,000

Fee

Final Price

$210,000 - $200,000 = $10,000 x 20% = $2000

$25,000 target fee + $2,000 = $27,000 fee

$200,000 + $27,000 = $227,000

Incentive Fee Calculation

Exercise

You may have to calculate both the Fee and the Final Price for the Exam!


12.1.2 Plan Procurement ManagementTools and Techniques:

Make-or-Buy AnalysisA general management technique to determine whether work is best done by the project

team or purchased from an outside source. Considerations such as capability, risk, budget and schedule are all considered as well as whether to purchase, lease or rent

Expert JudgmentExperts may be used in several areas. Technical experts will assess capability, inputs and

outputs. Purchasing experts will generate the criteria to select appropriate sellers, and legal experts will focus on terms, conditions and issues

Market ResearchCapabilities of industry and seller must be researched by information gained at conferences,

on-line, and other sources. Leverage mature technologies while balancing the risks with other less mature technologies.

Page 206

MeetingsInformation exchange with potential bidders can benefit the project.


12.1.3 Plan Procurement ManagementOutputs: Procurement Management Plan, and

Procurement Statement of Work

Page 211

• Provides the basis of agreement between buyer and supplier

• Sufficient detail to allow prospective suppliers to determine whether or not they can comply

• Sufficient latitude for creative solutions only if appropriate

• Each procurement requires a separate SOW. But one SOW may cover many items in a single procurement

• May be revised as the procurement progresses

• Should be clear, concise, and unambiguous

• May be developed by the project team or supporting offices (or even the seller) depending on policy and ability

• Your best defense against procurement scope creep!

A narrative description of products or services to be supplied under contract.


12.1.3 Plan Procurement ManagementOutputs: Procurement Documents

Page 212

Procurement documents from the buyer:

TECHNICALLY-DRIVEN CONTRACTS:

• Request for Proposal (RFP) - requests a detailed proposal on how thework will be done, who will do it, . . . , basically a Project Execution Planfrom the contractor or seller.

PRICE-DRIVEN CONTRACTS:

• Invitation for Bid (IFB, or RFB) - requests one price to do all the work.

• Request for Quotation (RFQ) - Requests a price quote per item, per hourcharges, etc.

Procurement Terminology is not universal


Understanding of need

Life-cycle cost Technical capability

Risk Management approach

Technical approach

Warranty Financial stability

Production capacity

Business size and type

Past performance

of sellers

References Intellectual property rights

Proprietary rights

Examples of source selection criteria are:

12.1.3 Plan Procurement ManagementOutputs: Source Selection Criteria

• The Contracting Officer or Administrator is the one with authority to change the contract• The Project Manager must understand the contract and manage its completion• The exam tests conflicts that arise between the two

ExamTip

Page 212


Notes on procurement for the exam

• The exam questions are always from the buyer’s perspective

• Different words are sometimes used (vendor, owner, contractor, subcontractor etc.)

• A contract is a formal agreement• All requirements should be specifically stated in

the contract• Changes must be in writing and formally

controlled• The US Government backs all contracts by

providing a court system (this is a US exam)

Page 213


13.2 Plan Stakeholder Management

Planning: Project Stakeholder Management

Outputs

Stakeholder management plan


Tools & Techniques

Expert judgmentMeetingsAnalytical techniques

Inputs

Project management planStakeholder registerEnterprise environmental factorsOrganizational process assets

Page 314

PMBOK® Fifth Edition, Section 13.2, Page 393


13.2 Plan Stakeholder Management

Plan Stakeholder Management is the process of developing management strategies to engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and impact on project success.

It allows the project manager the develop ways to engage stakeholders in the project, to manage their expectations, and to achieve the project objectives.

Page 214


13.2 Plan Stakeholder Management Tools and Techniques: Analytical Techniques

Engagement level of the stakeholders can be classified as follows:

• Unaware. of project and potential impacts

• Resistant. Aware of project and impacts, and resistant to change

• Neutral. Aware of project yet neither supportive nor resistant

• Supportive. Aware of project/impacts and supportive to change

• Leading. Aware of project/impacts and actively engaged in ensuring success.

Engagement Level of Stakeholders


13.2 Plan Stakeholder Management Tools and Techniques: Analytical Techniques

Stakeholder Engagement Assessment Matrix

ExamTip

Stakeholder

Stakeholder 1

LeadingSupportiveNeutralResistantUnaware

Stakeholder 2

Stakeholder 3

C

C

D

D

D C

Legend: “C” = Current Engagement“D” = Desired Engagement



13.2 Plan Stakeholder Management Outputs: Stakeholder Management Plan

This plan identifies the management strategies required to engage stakeholders.

• Desired engagement levels of key stakeholders,

• Scope and impact of change to stakeholders,

• Interrelationships and overlap between stakeholders,

• Stakeholder communication requirements for the current phase,

• Information to be distributed to stakeholders (language, format, content, level of detail),

• Timing and frequency for distributing the information,

• Method for updating the stakeholder management plan as the project progresses.


Executing Process Group

Page 219



Process Groups


Monitoring &

Controlling




Change Control


5.1


Define Scope

5.5 Validate Scope

5.6 Control Scope


6.1




7.2 Estimate Costs


7.4 Control Costs





9.1 Plan Human









11.2 Identify Risks




11.6 Control Risks





5.4 Create WBS

6.4

4.6 Close Project

or Phase


Engagement


Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.




Management


Executing


8.2 Perform Quality Assurance9.2 Acquire Project Team9.3 Develop Project Team9.4 Manage Project Team10.2 Manage Communications12.2 Conduct Procurements13.3 Manage Stakeholder

Engagement



Executing: Integration Management

Outputs

DeliverablesWork performance dataChange requestsProject management plan


Tools & Techniques

Expert judgmentProject management

information systemMeetings

Inputs

Project management planApproved change requestsEnterprise environmental factorsOrganizational process assets

Page 220




Direct and Manage Project Workis the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives

Page 220


The activities of Direct and Manage Project Work include:

• Perform activities to accomplish project objectives,• Create deliverables,• Provide, train, and manage team members• Obtain materials, equipment, and facilities,• Implement methods and standards,• Establish communication channels,• Generate project date: cost schedule, technical, quality, and status to

facilitate forecasting,• Issue change requests and manage approved changes

(corrective action, preventative action, defect repair),• Manage risks and risk responses,• Manage sellers and contractors,• Manage stakeholders and their engagement, and • Collect and document lessons learned

Page 220



The other 23 planning processes are integrated to createthe project management plan. Updates to any plansrequire an update to the PM plan. Think of the PM plan asa bucket into which all the other plans “drip” until it is full.

Inputs: The Project Management Plan

Page 221

4.3.1 Direct and Manage Project Work


Determine Budget Plan Quality Management Plan Human Resource Management Plan Communications Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Plan Procurement Management Plan Stakeholder Management



Page 222


Expertise is provided by the project manager and the PM team, and additional knowledge can be gained from a variety of sources inside and outside of the organization.

PM Information System (PMIS)The PMIS provides access to tools: scheduling tool, work authorization system, configuration management system, information collection/distribution system, reporting on key performance indicators (KPI), and interfaces to online automated systems.

MeetingsMeetings can include information exchange, brainstorming, option evaluation, or decision making. Meetings are most effective when face-to-face. Virtual meetings (audio or video-conferencing) require additional preparation and organization to be as effective as face-to-face.

Expert Judgment



Page 223

Outputs

DeliverablesAny product, result or service identified in the PM Plan produced during project execution.

Work Performance InformationStatus of project activities is routinely collected. It includes schedule progress, deliverable status, quality requirements met, costs incurred, estimates to complete, lessons learned, and resources used.

Change RequestsChanges are requested to expand or reduce scope, modify policies/procedures, costs, budgets, quality, or schedules. They also include corrective action, preventative action, defect repair, and document updates.

PM Plan UpdatesRequirements, schedule, cost, quality, HR, communications, risk, procurement, and the project baselines.

Project Document Updates: requirements, logs, risk register, and stakeholder register.


8.2 Perform Quality Assurance

Executing: Quality Management

Outputs

Change requestsProject management plan

updatesProject document updatesOrganizational process assets

updates

Tools & Techniques

Quality management and Control tools

Quality auditsProcess analysis

Inputs

Quality management planProcess Improvement planQuality metricsQuality control measurementsProject documents

Page 224



8.2 Perform Quality Assurance

Perform Quality Assurance isthe process of auditing thequality requirements and theresults from quality controlmeasurements to ensureappropriate quality standardsand operational definitionsare used

Page 224


8.2.2 Perform Quality Assurance

Page 225

Tools and Techniques: Quality Management and Control Tools

• Flowcharting• Brainstorming • Force Field Analysis• Nominal Group Techniques• Matrix Diagrams• Priority Matrixes

• Benefit/Cost Analysis• Cost of Quality (COQ)• Control Charts• Benchmarking• Design of Experiments (DOE)• Statistical Sampling• Proprietary Methods

The Tools for Quality Planning should be used for Quality Assurance



Page 225

• Prioritization Matrices• Activity Network Diagrams• Matrix Diagrams

• Affinity Diagrams• Process Decision Program

Charts (PDPC)• Interrelationship Digraphs• Tree Diagrams

In Addition, Use the Seven Quality Management and Control Tools

Tools and Techniques: Quality Management and Control Tools


The Seven Quality Management and Control Tools

Affinity Diagram PDPC Interrelationship Digraph

Tree Diagrams Prioritization Matrices

Matrix Diagrams

No Yes YesNo No No

Start Finish

A B C

D E F

1Start Finish

B

C

D

E

F

2

4 5

3

6

F

PDM

ADM

Network Diagrams



Pages 227

Quality Control (QC): a process of monitoring and recording results (both product

and project management) of executing quality activities to assess performance andto recommend necessary changes. Involves identifying ways to remove the causes ofquality defects.

Quality control involves inspection and requires an understanding of samplingstrategies, tolerances, and the causes of variation in a process. It is done in theMonitoring and Controlling Processes.

Tools and Techniques: Quality Audits

Quality Assurance (QA): the process of auditing quality requirements, and the

results from quality control (QC) measurements, to ensure quality standards andoperational definitions are used..

Quality assurance involves Quality Audits, and is done in Execution Processes.



Page 228

Tools and Techniques: Quality Audits

. . a structured review (audit) of the project’s quality management activities to determine if they comply with organizational and project

policies, processes, and procedures.

• Quality audits may be random or scheduled• Quality audits may be performed internally or externally

Quality audits Identify best practices and gaps or shortcomings Share good practices with similar projects in the organization Proactively assist to improve processes and raise team productivity Contribute audit results to lessons learned archives.


Turn to page 416 in the workbookThere are 68 questions.

You have 81 minutes to completeAnswers are on page 433

Page 416


Practice Test #2


9.2 Acquire Project Team

Executing: Human Resource Management

Outputs

Project staff assignmentsResource calendarsProject management plan

updates

Tools & Techniques

Pre-assignmentNegotiationAcquisitionVirtual teamsMulti-criteria decision

analysis

Inputs

Human resources management plan

Enterprise environmental factorsOrganization process assets

Page 230



9.2 Acquire Project Team

Acquire Project Team is the process of confirming human resource availability and obtaining the team necessary to complete project activities

Page 230


9.2.1 Acquire Project TeamInputs: Project Management Plan, that includes:

Page 231

• Human Resource Management Plan

defining positions, skills, and competencies

project organization charts

when team members are needed

• EEF and OPA


9.2.2 Acquire Project TeamTools and Techniques

Pre-AssignmentProject team members are selected in advance, perhaps where the project is part of

a proposal

NegotiationThe project manager may need to negotiate with functional managers or other

project managers to gain the staff required

AcquisitionHiring or subcontracting team members from outside sources. This may involve

outsourcing work to another organization

Virtual TeamsTeams where the members may not be able to meet face-to-face because of

geographic or mobility limitations. Communication planning becomes increasingly important in a virtual team environment

The project manager should effectively negotiate and influence others who are in a position to provide the required human resources for the project

Pages 232-233


9.2.2 Acquire Project TeamTools and Techniques

Pages 233

Multi-Criteria Decision Analysis

Criteria are used to rate potential team members. The criteria are weighted by considering relative importance within the team.

• Availability. Is the team member available to work in the time period needed?• Cost. Is the team member’s cost within the budget constraints?• Experience. Have the people done similar work before? Done it well?• Ability. Does the team member have the required competence?• Knowledge. Does the team member know the customer, worked on similar

projects, understand PM?• Skills. Can they use project tools, or have appropriate training?• Attitude. Can the team member work with others in a cohesive team?• International Factors. What is the location of the team member, time zones,

communication skills?




Outputs

Team performance assessments

Enterprise environmental factors updates

Tools & Techniques

Interpersonal skillsTrainingTeam-building activitiesGround rulesCo-locationRecognition and rewardsPersonnel assessment tools

Inputs


Project staff assignmentsResource calendars

Page 235




Develop Project Team is the process of improving the competencies, team interaction and the overall team environment to enhance project performance. Teamwork is a critical factor for project success, and developing effective project teams is one of the primary responsibilities of the project manager

Page 235

ExamTip


Interpersonal Skills: “soft skills”

Training: activities designed to improve competencies of the project team members

Team-Building Activities: should be designed to help individual team members work together effectively and establish good working relationships.

9.3.2 Develop Project TeamTools and Techniques:

Pages 236-237


9.3.2 Develop Project Team

Page 238

Tools and Techniques: Team Building Activities

Bruce Tuckman: The Five Stages of Team Development

• Forming: Team meets, learns about the project, understands

roles, but is independent, not open

• Storming: Team addresses project and methodology and must

be open in this phase or it can become destructive.

• Norming: Team works together, adjusts behaviors that are

supportive, and trust develops

• Performing: Team performs as well organized unit and works

through issues smoothly and effectively

• Adjourning: Team completes the work, celebrates their success,

and moves on from the project.



Page 238

Tools and Techniques: Team Building Activities

The proper use of most project management tools & techniques contribute to teambuilding, but PMI defines “Team Building Activities” as “actions taken specifically and primarily to improve team performance.”

• Facilitated off-site workshops• Inter-personal skills development

training and workshops• Communications training

(including listening skills)• Conflict resolution• Psychological preference

indicators such as Myers-Briggs• Physical challenge workshops• Planned team outings• Standing agenda item at review

meetings • Shared space, publicity, and

symbols to create a team identity


Ground Rules: Discussing ground rules allows team members to discover values important to one another, to set clear expectation for team behavior, and to share their commitment to the rules

Co-location: Physically locating team members in the same physical location enhances team communication and performance

Recognition and Rewards: Promote and reinforce desired

behaviors, and only desired behavior should be rewarded.

“What gets measured, gets done”

9.3.2 Develop Project TeamOther Tools and Techniques

Page 239


9.3.2 Develop Project TeamTools and Techniques: Recognition and Rewards

Page 239 & 241

Self Actualization = Achievement

Self Esteem = Recognition

Social

Safety

Physiological

Maslow’s Hierarchy of Needs

ExamTip

Herzberg’s Motivators

1. Achievement

2. Recognition

3. Work Itself

4. Responsibility

5. Advancement

6. Growth



Page 239

ExamTip

McClelland’s “Theory of

Needs”

Achievement

Affiliation

Power

A person’s motivation and effectiveness are influenced by three needs:



Be sure the link between performance and reward is clear, explicit, timely, and achievable.

Be sure to reward desired behaviors more than recovery from the results of undesired behaviors.

Consider cultural factors such as individualism vs. collectivism in choosing rewards and giving recognition (team vs. personal).

• prized assignments• responsibility• presentation opportunities• training opportunities-growth• flexible scheduling/days off

• Recognition of achievement• better offices, new

equipment• bonuses, trips• promotions, pay raises

A

Page 240


Outputs: Team Performance Assessments

Position Descriptions

show team member responsibilities, authority, competencies, and qualifications outlined in a text document.


improvements in individual skills

Improvements in team behaviors

improvements in project performance

reduced staff turnover rate.

Performance Assessments




Outputs


updatesProject documents updatesEnterprise environmental

factors updatesOrganizational process assets

updates

Tools & Techniques

Observation and conversationProject performance appraisalsConflict managementInterpersonal skills

Inputs


Project staff assignmentsTeam performance assessmentsIssue logWork performance reportsOrganizational process assets

Page 242




Manage Project Teamis the process of tracking team member performance, providing feedback, resolving issues and managing team changes to optimize project performance

Page 242

Team members are accountable both to their functional manager and to their project manager.

Effective Management of the dual reporting relationship is the responsibility of the Project Manager

ExamTip


9.4.1 Manage Project Team

Page 242-243

Inputs:

• Human Resource Management Planresponsibilities, project organization, staffing management plan.

• Project Staff Assignments

• Team Performance Assessments

• Issue Log

• Work Performance Reportsproject status, project forecasts, schedule/cost/quality control, scope validation, future HR requirements


• OPA



Fill in the last column with PM (Project Manager), T (Team member) or SM (Senior/Functional Management) as to who is most appropriate to solve the problem listed under the “situation” column. Understanding of these questions will help with your with your Situation Questions:

Situation Who Solves the Problem (PM/T/SM)?

1 Two project team members are having a disagreement -

2 There is a change to the overall project deliverables –

3 A boss is trying to pull a team member off the project to do other work –

4 The project manager does not have the authority to get things done –

5 There are not enough resources to complete the project –

6 The team is unsure of what needs to happen when –

7 A task needs more time and will cause the project to be delayed –

8 A tasks needs more time without causing the project to be delayed –

T

SM

SM

PM

SM

PM

T

SM

Tools and Techniques: Project Performance Appraisals, Roles and Responsibilities

Exercise

Page 245


9.4.2 Manage Project TeamTools and Techniques: Project Performance Appraisals, Roles and Responsibilities

Exercise

9 A team member is not performing -

10 The team is not sure who is in charge of the project –

11 There is a talk that the project may be no longer needed –

12 Senior management provides an unrealistic schedule requirement –

13 The team is in conflict over priorities between tasks –

14 The project is behind schedule –

15 A team member determines that another method is needed to complete the task within its scope of work -

SM

SM

PM

PM

T

SM

SM

Page 245


9.4.2 Manage Project TeamTools and Techniques: Powers of a Project Manager

Page 246

ExamTip

Powers of the P.M. How Earned?

Expert: recognition by others On your own

Reward: giving rewards to others PM’s Position

Formal: power based on the position PM’s Position

Referent: refer to authority of management Other’s Position

Penalty: ability to penalize team members PM’s Position

Principles of Project Management, PMI, ISBN: 1-880410-30-3


9.4.2 Manage Project TeamTools and Techniques: Conflict Management

Page 246

ExamTip

Conflict ResolutionBest to Worst

1. Collaborate/Problem Solving: solving the real problem2. Compromise/Reconcile: solutions that satisfy all parties3. Withdraw/Avoid: retreating or postponing a decision4. Smooth/Accommodate: emphasis on agreement rather than differences5. Force/Direct: one viewpoint at the expense of another




Page 246

ExamTip

Factors for Conflict Resolution

• Importance and intensity of conflict

• Time pressure to resolve

• Position taken by persons involved

• Motivation to resolve, long and short term

Tools and Techniques: Conflict Management


9.4.2 Manage Project TeamTools and Techniques: Conflict Management

Page 247

Sources of Conflict(order of priority)

1. Schedules

2. Project priorities

3. Resources

4. Technical opinions

5. Admin. Procedures

6. Cost

7. Personality

ExamTip



9.4.2 Manage Project TeamTools and Techniques: Interpersonal Skills

Page 247

The Fourth Edition was the first time the “soft skills” have been givenspecial recognition by PMI in the guidebook.

Please refer to Appendix X3 in the Fifth Edition for a listing ofinterpersonal skills important to project management. PMI said theseskills were too large to cover in-depth in the PMBOK. This makes it a ripesource for questions on the fifth edition test.

ExamTip


9.4.2 Manage Project TeamTools and Techniques: Leadership

Page 248

Leadership focuses team efforts toward a common goal. Leaders getthings done through other people. They develop trust and respect, notfear and submission.


9.4.2 Manage Project TeamTools and Techniques: Leadership, the Team Performance Curve

Page 249

Team Effectiveness

Perf

orm

ance Im

pact

Pseudo-Team

Working Group

Potential Team

Real Team

High-PerformanceTeam

Katzenbach and Smith“The Wisdom of Teams”


A high performing team is:

• A small group of people

• with complimentary skills

• committed to a common

purpose, performance goals and methods

• for which they hold themselves accountable

• and take the risk of conflict

Page 236 and 249

9.3.2 Develop Project TeamTools and Techniques: Team Building Activities


9.4.2 Manage Project TeamTools and Techniques: Communication and Influencing

Page 250

Communication is one of the biggest contributors to project success or failure.

• Geert Hofstede: Cultural Dimensions (national cultural differences)• Myers Briggs: “Personality Test”• The “Sender-Receiver Model” (mentioned earlier)• Conflict resolution is part of communication (mentioned earlier)

Communication

• Lead by example, follow through with commitments• Clarify how decisions will be made• Use a flexible style, adjust to the situation (Situational Leadership)• Apply your power skillfully and cautiously

Influencing

“Influence: What you think you have until your try to use it” Joan Welsh

ExamTip


9.4.2 Manage Project TeamTools and Techniques: Decision Making

Page 251

• Command• Consultation• Consensus• Random (coin flip)

Decision Making Styles Factors Affecting Style

• Time constraints• Trust• Quality• Acceptance

1. Problem Definition: explore, clarify, and define the problem

2. Solution Generation: brainstorm solutions and discourage early decisions

3. Ideas to Actions: define evaluation criteria, rate pros/cons, select one

4. Solution Plan: involve team for acceptance and commitment

5. Evaluation Plan: implement, analyze, evaluate, lessons learned

6. Evaluation Outcome: was the problem solved? Goals achieved?

Six-Phase Problem Solving Model

ExamTip


9.4.2 Manage Project TeamTools and Techniques: Negotiation

Page 250-251

Negotiating Skills and Behaviors

1. Analyze the situation

2. Differentiate between wants and needs by both parties

3. Focus on interests and issues, not positions

4. Ask high and offer low (but be realistic). Do you have a BAFO?

5. When making a concession, act like you are yielding something of value. Don’t just give in.

6. Both parties should feel like they won (win-win). Never let the other party leave feeling they have lost.

7. Do a good job of active listening and articulating

ExamTip


9.4.2 Manage Project TeamTools and Techniques: Appendix X3, Covey, Dinsmore, Levin, Verma

Page 252

Seven Habits of Highly Effective People

Habit 1: Be Proactive: Principles of Personal Choice Habit 2: Begin with the End in Mind: Principles of Personal Vision Habit 3: Put First Things First: Principles of Integrity & Execution Habit 4: Think Win/Win: Principles of Mutual Benefit Habit 5: Seek First to Understand, Then to be Understood Habit 6: Synergize: Principles of Creative Cooperation Habit 7: Sharpen the Saw: Principles of Balanced Self-Renewal

(The Eighth Habit: “From Effectiveness to Greatness”; Find your voice and inspire others to find theirs)

ExamTip

Stephen R. Covey, 2004


9.4.2 Manage Project TeamTools and Techniques: Trust Building

Page 253

ExamTip

• Open and direct communications to resolve problems

• Inform all stakeholders when commitments are at risk

• Engage directly with the team, ask a lot of questions

• Be direct and explicit about what you need or expect

• Do not withhold information

• Be receptive to innovation

• Look beyond your own interests

• Demonstrate true concern for others

Trust Building


10.2 Manage Communications

Executing: Communications Management

Outputs

Project communicationsPM plan updatesProject documents updatesOrganizational process assets

updates

Tools & Techniques

Communication technologyCommunication modelsCommunication methodsInformation management

systemsPerformance reporting

Inputs

Communications management plan

Work performance reportsEnterprise environmental factorsOrganizational process assets

Page 255



10.2 Manage Communications

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

Page 255


Communication Management Plan

describes how communications will be planned,

structured, monitored and controlled.

Stakeholder communication requirements

Which information flows from whom, when, via which media, and in what format.

Schedule and frequency for information collection and distribution.

Methods to convey information (memos, e-mail, press releases, etc.)

Resources for communication activities, including time and budget

Problem escalation procedure

Method for updating the communication plan

Flow charts of information flow

List of reports and meetings planned (schedule and attendees)

Communications constraints

“Communications infrastructure” for the project (who may talk to whom)

Page 256

Inputs: Includes the Communications Management PlanInputs:

10.2.1 Manage Communications

Performance Reports

• Organizes and summarizes information on project

status and progress

• May have different reports for different stakeholders,

each to the level of detail and in the format and

frequency appropriate to the stakeholder

Caution: Ensure a consistent “data date”,

ideally from a common set of data

• Includes cost, schedule, quality and scope accomplishment and variance

information

• Reports the results of variance analysis, trend analysis, and earned value

analysis. Generally involves charts such as bar charts (e.g., Gantt charts)

and S-curves (e.g., earned value charts) to summarize data and facilitate

reporting by exception.

Performance Reports

Guidelines for Performance Reports:

• keep the report short, matching its length to the projects’ complexity and the audience’s needs

• use a consistent template and format

• use visual elements such as charts and graphs

Criteria for Performance Reporting:

• gives timely, complete, and accurate information

• doesn’t add more administrative overhead than it’s worth

• is acceptable and useful to all participants

• gives warning of problems in time for preventive or corrective actions

• is easily understood by those who have a need to know

Purpose of Performance Reports:

• to detect problems in time to take corrective or preventive action

• to reduce customer and management anxiety

• to share project information within the project team

More on these reports later . . .




Communication TechnologyTechnology can vary from project-to-project and throughout the life cycle of the same project. The team must ensure that the technology is appropriate for the information being communicated.

Communication ModelsThe choice of communication model must be appropriate for the project and any barriers (noise) are identified and managed.

Communications MethodsMethods to communicate can take place through many media. Effective and efficient use of each requires appropriate communication skills: Written and oral, listening and speaking Internal (in the project) and external (client, public) Formal (reports) and informal (memos, e-mail, IM, telecon) Vertical (up/down the org.) and horizontal (with peers)




Information Management SystemsA variety of tools are available for managing and distributing information:• Hard copy documents: letters, memos, reports, and press releases• Electronic communication media: e-mail, fax, IM, voice mail, telephone, video, web

conferencing, web sites, web publishing, FTP sites, intranet• Electronic PM tools: web interfaces for scheduling , PM software, Skype, meeting software,

virtual office software, portals, and collaborative work management tools.

Performance ReportingThis is collecting and distributing performance information (status reports, progress measurements, and forecasts). It includes periodic analysis of baseline versus actual data to communicate progress and to forecast project results. Simple reports show percent complete or status dashboards (scope, schedule, cost, quality). More elaborate reports may include:• Analysis of past performance• Analysis of forecasts (including time and cost)• Status of risks and issues• Work completed during the period• Work to be completed during the next period

• Summary of changes approved, etc.


12.2 Conduct Procurements

Executing: Procurement Management

Outputs

Selected sellersAgreementsResource calendarsChange requestsProject management plan


Tools & Techniques

Bidder conferencesProposal evaluation

techniquesIndependent estimatesExpert judgmentAdvertisingAnalytical techniquesProcurement negotiations

Inputs

Project management planProcurement documentsSource selection criteriaSeller proposalsProject documentsMake-or-buy decisionsProcurement statement of workOrganizational process assets

Page 260


12.2 Conduct Procurements

Conduct Procurements is the process of obtaining seller responses, selecting a seller and awarding a contract.

It may involve developing a short list of qualified sellers which are then subject to further information

Page 260


Understand the following Inputs for the test:

Procurement Management Plan: How procurement processes will be managed

Procurement Documents: Used to request proposals from sellers, audit trail

Source Selection Criteria: Used to rate and scope proposals

Seller Proposals: Evaluated to select the successful seller

Project Documents: Risk Register and contract decisions on risk

Make-or-Buy Decisions: Will the work be done internally or be acquired?

Procurement Statement of Work: Clearly stated goals and requirements

OPA: Company supplier lists

12.2.1 Conduct ProcurementsInputs

Pages 260-261


Bidder Conferences – Assembling all prospective vendors in a single meeting, with information disseminated and individual bids later receivedProposal Evaluation Techniques –Comparison of alternative proposals on the basis of vendor responses. Weighted Scoring is a commonly used techniqueIndependent Estimates – Use of an outside professional to provide a benchmark estimate of costs in advance of receiving proposalsExpert Judgment – Experts from various disciplines may be used to evaluate and advise on proposals

12.2.2 Conduct ProcurementsTools and Techniques

Weighting System

1) determines the evaluation factors

2) assigns a numerical weight to each factor

3) rates the prospective sellers on each criterion

4) multiplies each rating by its weighting

5) totals the ratings to compute an overall score

Removes personal bias, is more objective, and considers

relative importance of different evaluation factors

• Typical factors include technical,

management, and cost factors

• Avoid overly complicated rating models

Pages 262-263


Advertising – Advertising in selected newspapers or trade publications. Government may require advertising of certain kinds of contracts.

Analytical Techniques– evaluate readiness of a seller, examine past performance for risks.

Procurement Negotiations – The project manager may not be the lead negotiator in many cases, but will provide technical and project clarification.

12.2.2 Conduct ProcurementsTools and Techniques

Pages 263-264


12.2.2 Conduct ProcurementsTools and Techniques: Procurement Negotiations

• responsibilities and authorities (Who Will Negotiate?)• pricing, payments, and payment schedules• penalty terms• deliverables -- specifications, quantities, quality, timing• applicable laws, standards, regulations, and other requirements• technical and management approaches• copyright and ownership issues; data rights

Ethical Negotiations: each party is honest with the other, regardless of expectations related to future work.

… undertaken to clarify structure, requirements, and contract terms so that mutual agreement on contract terms can be reached prior to signing.

Page 264


Selected Sellers:

Sellers who are competitive and have negotiated a draft contract

Agreements:

A legal agreement between Buyer and Seller, mutually binding. It includes many requirements and terms that you should remember, including Incoterms and ADR. Read this section carefully.

12.2.3 Conduct ProcurementsOutputs

Page 265


12.2.3 Conduct ProcurementsOutputs: Types of Contracts

Page 266




Used on development projects for flexibility. Cost risk is on the buyer, so establish administrative & reporting systems to allow both buyer and seller visibility into costs. (Includes CPFF, CPIF, CPAF)

Used on well specified projects for which costs can be accurately estimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)

Used on projects where the deliverables are well defined, repetitive units but the quantities are not yet known (e.g., identical pieces of equipment, or labor hours and associated material costs – includes overhead and burden)

ExamTip


13.3 Manage Stakeholder Engagement

Executing: Stakeholder Management

Outputs

Issue logChange requestsProject management plan

updatesProject documents updatesOrganizational process assets

updates

Tools & Techniques

Communication methodsInterpersonal skillsManagement skills

Inputs

Stakeholder management planCommunications management

planChange logOrganizational process assets

Page 268



13.3 Manage Stakeholder Engagement

Manage Stakeholder Engagement is the process of communicating and working with stakeholders to meet their needs, address issues as they occur, and foster stakeholder engagement in project activities throughout the project life cycle. Managing stakeholders increases the likelihood of project success by ensuring they clearly understand project goals, objectives, benefits, and risk.

Test items in this process are Inputs/Tools and Techniques/Outputs, and understanding the issues and change logs.

Pages 268

The Project Manager (PM) is responsible for engaging and managing stakeholders.


Monitoring & Controlling Process Group

Page 273



Process Groups


Monitoring &

Controlling




Change Control


5.1


Define Scope

5.5 Validate Scope

5.6 Control Scope


6.1




7.2 Estimate Costs


7.4 Control Costs





9.1 Plan Human









11.2 Identify Risks




11.6 Control Risks





5.4 Create WBS

6.4

4.6 Close Project

or Phase


Engagement


Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.




Management


Monitoring and Controlling

4.4 Manage and Control Project Work

4.5 Perform Integrated Change Control

5.5 Validate Scope5.6 Control Scope6.7 Control Schedule7.4 Control Costs8.3 Control Quality10.3 Control Communications11.6 Control Risks12.3 Control Procurements13.4 Control Stakeholder

Engagement



M&C: Integration Management

Outputs

Change requestsWork performance reportsProject management plan


Tools & Techniques

Expert judgmentAnalytical techniquesProject management

information systemMeetings

Inputs

Project management planSchedule forecastsCost forecastsValidated changesWork performance informationEnterprise environmental factorsOrganizational process assets

Page 274




Monitor and Control Project Work is the process of tracking, reviewing and reporting the progress to meet the performance objectives defined in the project management plan.

Control includes determining corrective action, preventative action or defect repair and following up on actions taken to resolve performance issues

Page 274



Page 273

Taken together, the controlling processes monitor project progress and performanceagainst the plan and provide the appropriate response to deviations from plan. Theseresponses frequently require changes to the project plan; hence, project planning,project execution, and project control form a triad of process groups that arerepeated throughout the project life cycle at each phase gate.

Project monitoring and control is more than earned value

Many project management technicians and some inexperienced project managersequate project control with earned value. While earned value is an essential part ofproject control, it is only a part. Fully integrated project control draws from severalknowledge areas and calls upon all of the leadership, communication, and negotiationskills of the project manager.

Project monitoring and control is more than data collection

Another common, practical problem is confusing data collection with project control.Project control is more than just collecting data about project performance; it alsorequires analyzing the data, evaluating the meaning of the data and any variances,taking appropriate corrective actions, and related record keeping.



Page 274

This process is part of Project Integration Management knowledge area,

along with Integrated Change Control. This process involves monitoringall processes: initiating, planning, executing, and closing.

Planning Processes

Executing Processes



Closing Processes


Inputs: The Project Management Plan (Another Reminder)

Page 275

4.4.1 Monitor and Control Project Work





Other Inputs:

Page 275-276


• Schedule Forecastsusing schedule variance (SV) and schedule performance index (SPI) to compute estimate to complete (ETC)

• Cost Forecasts using cost variance (CV) and cost performance index (CPI) to compute estimate at completion (EAC)

• Validated Changes

• Work Performance Informationcollected data is analyzed and transformed into work performance information

• EEF and OPA


Work Performance Information

• Status of deliverables

• Implementation of change requests

• Forecasts: variance, trend, and earned value information, estimates at completion (EAC), schedule forecasts, index information

(SPI, CPI, TCPI).

• Generally involves Gantt charts and S-curves.

• Includes cost, schedule, quality and scope accomplishment and variance information

Page 276


Tools and Techniques:

Page 277


• Expert Judgment

• Analytical Techniquesregression analysis, grouping methodscausal analysis root cause, FMEA, trends, etc.

• Validated Changes

• PMIS and Meetings



M&C: Integration Management

Outputs

Approved change requestsChange log Project management plan


Tools & Techniques

Expert judgmentMeetingsChange control tools

Inputs

Project management planWork performance reportsChange requestsEnterprise environmental factorsOrganizational process assets

Page 279




Perform Integrated Change Controlis the process of reviewing all change requests, approving changes and managing changes to deliverables, organizational process assets, project documents and the project management plan; and communicating their disposition.

Sometimes a Change Control Board (CCB) is responsible for approving or rejecting changes, as approved by the customer or sponsor.

Page 279-280

Configuration Control focuses on the specification of deliverables and processes.Change Control focuses on changes to project documents, deliverables or baselines.



Page 280

Change Control System

A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled, including:

• requesting changes• reviewing the implications of changes requests• approving or rejecting changes• communicating changes• maintaining a change log - comprehensive list of changes


4.5.2 Perform Integrated Change Control

Page 281

Tools and Techniques: Configuration Management

A set of processes and procedures to ensure that the documentation of the product and the actual product remain consistent with each other:

Glossary Definition:

The configuration management system is a collection of procedures used to identify and document the functional and physical characteristics of a product or component. It:

• controls changes to these characteristics, • records/reports each change, • audits the products to verify conformance to requirements. • documentation, tracking, and approval levels • validates the impact, and • communicates them to stakeholders.

ExamTip



Page 281

Inputs: Work Performance Reports

Reports of interest include: • resource availability, • schedule/cost data, • earned value management (EVM) reports, and • Burnup or burndown charts.

A burndown chart tracks how much work remains on your project and whether or not you will hit the deadline.

A burnup chart tracks how much work is done.



Page 282

Inputs: Change Requests are NOT Change Orders

Change Requests: oral or written, formal or informal, may or may not be implemented

Change Orders: formal request for change to approved project plan; typically used for projects performed under contract

Beware of the “Constructive Change Order” -- an oral or writtencommunication from a perceived authority that the project team may(possibly legally) respond to as equivalent to a written change order.

“A Functional Manager wants to make a change in the project. What is the firstthing a PM should do?”

“A Senior Manager decides the scope of work should be changed. What is bestto do?”

Answer: Evaluate the impact on the project. Meet with the team to discussalternatives, before deciding to use reserves and meet with management.

The Exam lists incorrect choices, like: “meet with the customer first” or “meetwith management first” The correct answer is evaluate first

ExamTip



Page 283

Tools and Techniques: Change Control Meeting

Approved or Rejected Change Requests

A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions.

• Reviews and approves or rejects change requests• May also be responsible for defining the change request process,

communicating change decisions, and managing the implementation of approved changes.

• Power and responsibilities should be reviewed and agreed to by stakeholders

In some projects, changes are controlled by a Change Control Board (CCB),And implemented by the Project Team

A Change Control Board (CCB) is:


5.5 Validate Scope

M&C: Scope Management

Outputs

Accepted deliverablesChange requestsWork performance

informationProject documents updates

Tools & Techniques

InspectionGroup decision-making

techniques

Inputs

Project management planRequirements documentationRequirements traceability matrixVerified deliverablesWork performance data

Page 285


5.5 Validate Scope

Validate Scopeis the process of formalizing acceptance of the completed project deliverables.

Scope validation is different from quality control in that validate scope is primarily concerned with the acceptance of the deliverables

PMBOK® Fourth Edition, Page 123

Page 285


5.5.3 Validate Scope

Page 287

Outputs: Accepted Deliverables

These have all been answers on the test:

Customer feedback on a more detailed basis

Done at the end of each Project Phase

Results in formal acceptance

ExamTip

The questions on the exam are vague on Scope Validation.Read them carefully.

One question asks for: “the key aspect of scope validation”

Answer: “customer acceptance of project efforts”.The answer does not involve correctness of the work.


5.6 Control Scope

M&C: Scope Management

Outputs

Work performance information


updatesProject documents updatesOrganizational process assets

updates

Tools & Techniques

Variance analysis

Inputs

Project management planRequirements documentationRequirements traceability matrixWork performance dataOrganizational process assets

Page 288



5.6 Control Scope

Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline

Uncontrolled changes are often referred to as Scope Creep.

Page 288


5.6.1 Control Scope

Page 288

Inputs

The primary inputs to Control Scope are: Project management plan Requirements documentation Requirements traceability matrix Work performance data Organizational process assets

The project management plan includes the following to control scope:

The scope baseline Scope management plan Change management plan Configuration management plan Requirements management plan


5.5.2 Control Scope

Pages 290

Tools and Techniques: Variance Analysis

… a comparison of actual results to planned results for the purpose of early problem detection ...

• Cost, schedule, scope, and quality variances are most typical – but they can also include resources and risk variances.

• Both positive and negative variances need analysis

• Should involve an evaluation of cause and impact

• Becomes an input to change control process for generating corrective actions


5.5.2 Control Scope

Pages 291

Outputs: Work Performance Information



M&C: Time Management

Outputs


Schedule forecastsChange requestsProject management plan

updatesProject documents updatesOrganizational process

assets updates

Tools & Techniques

Performance reviewsProject management

softwareResource optimization

techniquesModeling techniquesLeads and lagsSchedule compressionScheduling tool

Inputs

Project management planProject scheduleWork performance dataProject calendarsSchedule dataOrganizational process assets

Page 292




Control Schedule is the process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan

Page 292


6.7.1 Control Schedule

Page 292

Inputs

The inputs to Control Schedule are: Project management plan Project schedule Work performance data Project calendars Schedule data OPA

To control schedule, the project management plan includes:

The schedule management plan The schedule baseline


6.7.2 Control ScheduleTools and Techniques: Performance Reviews

PV = Planned Value (was BCWS) (1)

EV = Earned Value (was BCWP) (2)

AC = Actual Cost (was ACWP) (3)

(1) requires a performance baseline(2) requires a way to measure value of

work completed (earned value)(3) requires a way to collect actual

costs at work package level

t Actual

t When Planned

Time

Cost, Hours, or Work Products

EVWork Performed(Earned Value)

PVPlanned Value

ACActual Cost

SVScheduleVariance

CVCost

Variance

Pages 294-295



Pages 294-295

Tools and Techniques: Variance Analysis

… a comparison of actual results to planned results for the purpose of early problem detection ...

• Cost, schedule, scope, and quality variances are most typical – but they can also include resources and risk variances.

• Both positive and negative variances need analysis

• Should involve an evaluation of cause and impact

• Becomes an input to change control process for generating corrective actions



Page 294

Tools and Techniques: Corrective Action

* Taking action to expedite schedules, such as assigning more or different resources or overlapping tasks

* Delaying a purchase to protect cash flow

* Invoking planned risk responses when risk events occur

Changes to align future project performance with the project plan. Corrective actions should be based on what-if evaluations and may be the result of formal replanning. Corrective actions complete the loop between project control and project execution:



Page 295

Tools and Techniques: Trend Analysis

• a tool that uses mathematical techniques to forecast future outcomes based on past results

• may be used to monitor quality (product), cost and scheduleperformance of a project

• provides a high-level overview that indicates whether or not more detailed information is needed The Rule of Seven: 7 data

points all above or below the mean, or all increasing or decreasing, indicate a trend



Page 206

Tools and Techniques: Project Management Software



Page 296

Tools and Techniques: Resource Optimization Techniques

Month 1 Month 2 Month 3 Month 4

Product Manager

Resource plans are best when resource requirementsincrease and decrease without variations

0.5

1.0

1.5

The resource histogram is a time-phased display of the amount of project work assigned to each resource (PMBOK Fifth Edition, Page 189-190)



Page 297

Tools and Techniques: Modeling Techniques



Page 298

Tools and Techniques: Schedule Compression

Activity

ABC

NormalTime

4 wks3 wks2 wks

NormalCost

12,0006,0004,000

CrashTime

2 wks2 wks1 wks

CrashCost

15,0007,0005,500

Crash(wks)

2 wks1wks1 wks

TotalCrash Cost

3,0001,0001,500

Crash Costper week

1,5001,0001,500

Fast TrackingParalleling - Activities or phases normally be done in sequence are performed in

parallel for at least a portion of their duration. fast tracking can result in rework and increased risk.

CrashingA technique to shorten the schedule duration for the least incremental cost by adding

resources. Works only for activities on the critical path. May result in increased risk and/or cost.

ExamTip


7.4 Control Costs

M&C: Cost Management

Outputs


Cost forecastsChange requestsProject management plan


assets updates

Tools & Techniques

Earned Value ManagementForecastingTo-complete performance

index (TCPI)Performance reviewsProject management softwareReserve analysis

Inputs

Project management planProject funding requirementsWork performance dataOrganizational process assets

Page 300



7.4 Control Costs

Control Costs is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline

Page 300


7.4.1 Control Costs

Page 301

Inputs: Project Management Plan (Cost Management Plan & Cost Baseline)

Time

Cost Cost Performance Baseline


Monthly Planned Value (PV)

Spending Plans and Cash Flow

Plans are special types of Cost

Baselines

ExamTip

A time-phased budget (either by performance period or summed cumulatively over the life of the project) used to monitor and control project costs.

BAC


7.4.1 Control Costs

Page 302

Inputs: Project Funding Requirements and Management Reserve

ExamTip

Time

Cost

Cost Baseline


Cash Flow

Funding

}Management

Reserve

Project Budget

BAC

Expenditures

EAC (forecasted cost)


7.4.1 Control Costs

Page 302

Inputs: Work Performance Data

• Organizes and summarizes information on project status and progress

• It includes data on activities that have started , their progress, and which deliverables have been finished

Caution: Ensure a consistent “data date”, ideally from a common set of data

• Includes cost, schedule, scope accomplishment and variance information

• Includes data on costs authorized and costs incurred


7.4.2 Control Costs

Page 303 & 305

Tools and Techniques: Earned Value Management (EVM)

Earned value management (EVM), also known as earnedvalue technique (EVT) compares Earned Value (EV or BCWP)to both Planned Value (PV or BCWS) and Actual Cost (AC orACWP) to analyze cost control, resource management, andproduction. Cost control determines the cause of a variance,its magnitude, and if corrective action is needed.

CV at the end of a project is BAC minus total actual cost. SVat the end of a project is zero, because all of the plannedvalues will have been earned.

CPI and SPI are efficiency indicators.

ExamTip


7.4.2 Control Costs

Page 304


Definition of Terms

Value of work planned to be done at any point in time.

How much did we spend to get the work done at a point in time?

Planned value of the work we completed at any point in time.

How much did we budget for the whole project?

Given our progress, what is our forecast of the total project cost?

How much more do we estimate the job will cost?

How much over/under budget will we be?

PV

AC

EV

BAC

EAC

ETC

VAC

Planned Value

Actual Cost

Earned Value

Budget at Completion

Estimate at Completion

Estimate to Complete

Variance at Completion


Tools and Techniques: Earned Value Management (EVM) - Equations

CV Cost Variance CV = EV – AC Negative = Over budget, Positive = Under budget

SV Schedule Variance SV = EV – PV Negative = Behind schedule, Positive = Ahead of schedule

CPI Cost Performance Index Less than 1.0 = Over budgetGreater than 1.0 = Under budget

SPI Schedule Performance Index

Less than 1.0 = Behind scheduleGreater than 1.0 = Ahead of schedule

EAC Estimate at Completion(4 formulas)

Definition:At this time in the project, what is the forecast of total project cost?

Used when EV trend is typical (CPI will be the same for the rest of the project)

Used when EV trend is atypical (CPI will change to follow the planned rate, or PV line)

Actual cost plus bottom-up estimate to complete by the team. (plan is no longer valid, re-estimate the plan)

Used when both CPI and SPI influence the remaining work. Assumes negative cost performance and need for firm schedule.

EAC = AC + (BAC-EV)

BACCPI

EVAC

CPI =

EVPV

SPI =

(BAC-EV)

(CPI x SPI)

EAC =

EAC = AC + ETC

EAC = AC +


Tools and Techniques: Earned Value Management (EVM) - Equations

ETC Estimate to Complete ETC = EAC - AC

ETC= Re-estimate

The expected cost to finish all the remaining work. If work is proceeding on plan, use this this to calculate the work remaining

Bottom up re-estimate by the team

TCPI

Basedon

BAC

Based on

EAC

VAC

Cost efficiency that must be maintained to complete the project on plan (BAC).

Cost efficiency that must be maintained to complete the current EAC.

Variance at Completion

Less than 1.0 = Easier to completeGreater than 1.0 = Harder to complete(Value of work remaining divided by the value of the budget remaining)

Less than 1.0 = Easier to completeGreater than 1.0 = Harder to complete(Value of work remaining divided by calculated estimate to complete, ETC)

At the end, how much more or less than plan will we have spent?

BAC-EVBAC-AC

TCPI =

BAC-EVEAC-AC

TCPI =

VAC = BAC-EAC

7.4.2 Control Costs


7.4.2 Control Costs

Page 307


EACWork Products

Money Hours Deliverables.

0

$2,000 200 20

$1,000 100 10

1 2Weeks

3

$3,000 300 30

AC

Schedule Variance (SV)

Cost Variance

(CV)

EV

Projected Overrun

PV(Baseline)

BAC


7.4.2 Control Costs

Page 307

Tools and Techniques: EVM, The Easy Way to Remember It

• EV (BCWP) comes first in every formula.

• If it is a variance - it is EV minus something

• If it is an index - it is EV divided by something

• If the question relates to cost - use AC

• If the question refers to schedule - use PV

• Negative is either behind schedule or over budget ( For example: CV = -30% = over budget)

• Positive is either ahead of schedule or under budget


Task A100 Hrs

Task B200 Hrs

Task C200 Hrs

WBS

A

C

Time, weeks 1 2 3 4

500

Cum. Hrs.

400

300

200

100

BCWS

B

Project Status at the end of Week 2

Task A 100% complete AC = 140 hours

Task B 25% complete AC = 80 hours

Task C 0% complete AC = 0 hours

Try It:

Schedule Variance ____________

Cost Variance ____________

Cost at Completion ____________(Typical)

Cost at Completion ___________(Atypical)

-50 hours

50 50

100 100

100 100

EVc = 150 hours

PVc = 200 hours

SV = - 50 hours

EVc = 150 hours

ACc = 220 hours

CV = - 70 hours

-70 hours

733 hours

Cost at Completion = 220 + [(500-150)/(150/220)]

(Typical) = 733 hours

Cost at Completion = 220 + (500 -150)

(Atypical) = 570 hours

570 hours

Exercise

PV

= BAC/CPI

Page 308

Dimensions of Project Performance

PV = Planned Value

AC = Actual Cost

EV = Earned Value

Schedule Variance = EV - PV

Cost Variance = EV - AC

CPIc = EVc/ACc

Estimated (Cost) (BAC-EVc)] at Completion =

(EAC): Typical

Estimated (Cost)at Completion = ACc + (BAC-EVc)

(EAC): Atypical

CPIcACc +


7.4.2 Control Costs

Page 309

Tools and Techniques: Forecasting

• EAC Based on ETC by the Team

EAC = AC + Bottom-Up ETC

• EAC Forecast where Future Work is at Same Rate of Work Shown in the Baseline Budget

Past costs were atypical, and future work will be at the same rate of expenditure as in the baseline budget.

EAC = AC + (BAC - EV)

• EAC Forecast where Future Work will not Change from Actual

Past costs were typical of what will happen in the future.

EAC = BAC/CPI

• EAC Forecast where Future Work be Modified by both CPI and SPI

Future work will be at the same rate of expenditure as in the original baseline budget, but is modified byboth of the indexes. It assumes the project is in a cost overrun situation and there is a requirement to meeta firm schedule commitment. It is useful when schedule is a factor affecting future work. The weighting ofCPI and SPI can be varied according to the PM’s judgment (80/20, 50/50, etc.)

EAC = AC + [(BAC – EV)/(CPI x SPI)]

Same as:EAC = AC + [(BAC – EV)]/CPI]


7.4.2 Control Costs

Page 310

Tools and Techniques: To-Complete Performance Index (TCPI)

TCPI is used to determine if the BAC or the EAC can be reasonably achieved

It measures future cost performance needed achieve either a target BAC ortarget EAC. Calculate the reasonableness of BAC first. If it is obvious that theBAC is no longer viable, the project manager should consider thereasonableness of achieving the forecasted EAC.

TCPI (BAC) =Work Remaining

Funds Remaining

TCPI (BAC) =BAC - EV

BAC - AC

To Achieve a Target BAC

TCPI (EAC) =BAC - EV

EAC - AC

To Achieve a Target EAC


7.4.2 Control Costs

Page 310


The TCPI is compared to the cumulative CPI to determine if a target EAC is reasonable, e.g., within plus/minus 0.05 of the cumulative CPI (some management groups allow plus/minus 0.10). If a TCPI delta exceeds 0.05, the target EAC may be overly optimistic. If a TCPI delta is lower than 0.05, the target EAC may be overly conservative.

Given a TCPI of 1.1, the simple definition is: for every dollar spent from here to the end of the contract, a dollar and ten cents worth of budgeted work must be completed (or earned) to achieve the target EAC. Likewise a TCPI of 0.95 means: for every dollar spent from here to the end of the contract, only 95 cents worth of budgeted work must be completed or earned.


7.4.2 Control Costs

Pages 310


To-Complete Performance Index

1.00

+

-

Baseline Plan

TCPI (BAC)

TCPI (EAC)

Status Date

Cumulative CPI

To-Complete Performance Index


8.3 Control Quality

M&C: Quality Management

Outputs

Quality control measurements

Validated changesVerified deliverablesWork performance informationChange requestsProject management plan


assets updates

Tools & Techniques

Seven basic quality toolsStatistical samplingInspectionApproved change requests

review

Inputs

Project management planQuality metricsQuality checklistsWork performance dataApproved change requestsDeliverablesProject documentsOrganizational process

assets

Page 315



8.3 Control Quality

Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes

Page 315


8.3.1 Control Quality

Pages 316

Quality Control (QC): a process of monitoring and recording results (both product

and project management) of executing quality activities to assess performance andto recommend necessary changes. Involves identifying ways to remove the causes ofquality defects.

Quality control involves inspection and requires an understanding of samplingstrategies, tolerances, and the causes of variation in a process. It is done in theMonitoring and Controlling Process.

Inputs: Are straight forward, read them, but remember:

Quality Assurance (QA): the process of auditing quality requirements, and the

results from quality control (QC) measurements, to ensure quality standards andoperational definitions are used..

Quality assurance involves Quality Audits, and is done in Execution Process.

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http://www.tresnainstrument.com/product/dc03.html



Page 319


Cause and Effect Diagram

Control Charts

Flowcharting

Histograms

Pareto Diagrams

Checksheets

Scatter Diagram

The first seven (7) Tools & Techniques in this section are called the Seven Basic Tools of Quality - know these for the test!

ExamTip



Page 319

Tools and Techniques: Cause and Effect Diagram


EFFECTCAUSES

People

Lack of Training

MethodsMaterial





Page 320


A chart of process performance over time used todetermine if the process is in control or out of control

in control normal distribution of outcomes due to common causes of variation

inherent in the process

out of control rule of seven, trends, and cycles due to special causes of variation

external to the process

±1

6

8%

±2

9

5.5

%

±3

9

9.7

%...

...

.....

..................

UCL

LCL

......

Mean

.Normal

Distribution Curve

Expected Variation

Out of Control(Assignable Cause)



Page 321


Plan or Mean

UCL

LCL

Lower Spec. Limit

Upper Spec. Limit

Actual

Hours recorded for this project started on plan, but if the trend continues, hours spent will drift out of control.



Page 321

Tools and Techniques: Flowcharting

Process Flowchart

Design Review

Revise

OK?

Yes

Proceed

No



Pages 321-322

Tools and Techniques: Pareto Charts

source

% c

on

trib

uti

on

(o

r fr

equ

en

cy o

f o

ccu

rren

ce) Pareto Diagram: a histogram, ordered by

frequency of occurrence, that shows the percentcontribution of each category of identified cause tothe overall quality defects in a product or process.

Pareto’s Law:

80/20 Rule

80%?

Design of Experiments:

Which variables have influence over the outcome.

“What If” Analysis

Pareto Analysis: Pareto diagrams help

project teams identify the vital few factors thataccount for most quality problems from the morenumerous trivial many factors.



Page 322

Tools and Techniques: Run Chart

… a tool that uses mathematical techniques to forecast future outcomes based on past results

… may be used to monitor quality (product), cost and schedule performance of a project

… provides a high-level overview that indicates whether or not more detailed information is needed The Rule of Seven: 7 data

points all above or below the mean, or all increasing or decreasing, indicate a trend



Page 323

Tools and Techniques: Scatter Diagram



Page 324

Tools and Techniques: Statistical Sampling

…a technique for accepting or rejecting a larger population by choosing a part of the population for inspection ...

• Statistical sampling can reduce the cost of QC on a project.

• The validity of statistical sampling depends on anappropriate choice of sample items and sample size.

• Sample size increases exponentially as the level of desired certaintyincreases and the acceptable level of error decreases.

• Sampling strategies include single samples from a lot, multiple smallsamples from a lot, and double sampling methods where the size of thesecond sample depends on the results of the first sample.

• All sampling strategies involve some risk of producer error (type I error)where acceptable lots are rejected based on a non-representative sampleor consumer error (type II error) where unacceptable lots are acceptedbased on a non-representative sample.

Page 325

Tools and Techniques: Inspection Techniques

… An evaluation of whether or not the project results conform to the latest specifications and requirements ...

Types of Inspection :

• measuring• examining• auditing• testing• acceptance testing• reviewing• walk-throughs

Inspection generally takes place throughout the project’s lifecycle. Be sure to plan for it accordingly and to include it in the WBS.

http://search.aol.com/aol/imageDetails?s_it=imageDetails&query=inspection,+magnifying+glass&img=http://mystagedlife.com/wp-content/uploads/2008/03/magnifying-glass.jpg&site=&host=http://mystagedlife.com/category/local-news&width=137&height=103&thumbUrl=http://images-partners-tbn.google.com/images?q=tbn:qwrPu0vuUOh-tM:mystagedlife.com/wp-content/uploads/2008/03/magnifying-glass.jpg&b=image?query=inspection,+magnifying+glass&page=3&s_cs=4492289638552585718&s_it=rboxImgDtls&flv=1&icid=snap-pic&imgHeight=480&imgWidth=640&imgTitle=magnifying+glass&imgSize=111766&hostName=mystagedlife.com

http://search.aol.com/aol/imageDetails?s_it=imageDetails&query=inspection,+magnifying+glass&img=http://mystagedlife.com/wp-content/uploads/2008/03/magnifying-glass.jpg&site=&host=http://mystagedlife.com/category/local-news&width=137&height=103&thumbUrl=http://images-partners-tbn.google.com/images?q=tbn:qwrPu0vuUOh-tM:mystagedlife.com/wp-content/uploads/2008/03/magnifying-glass.jpg&b=image?query=inspection,+magnifying+glass&page=3&s_cs=4492289638552585718&s_it=rboxImgDtls&flv=1&icid=snap-pic&imgHeight=480&imgWidth=640&imgTitle=magnifying+glass&imgSize=111766&hostName=mystagedlife.com



M&C: Communications Management

Outputs

Work Performance information



assets updates

Tools & Techniques

Information management systems


Inputs

Project management planProject communicationsIssue logWork performance dataOrganizational process assets

Page 328




Control Communications is the process of monitoring and controlling communications throughout the entire project life cycle to insure the information needs of the project stakeholders are met.

Page 328


Inputs: Work Performance Data

• How much work is done so far?

• How much work did we plan to have done so far?

• When do we now estimate the project will be done?

• How much have we spent for what we’ve achieved?

• How much did we plan to spend for what we’ve achieved?

• How much do we now estimate the project will cost to complete?

?Earned Value Management: Test Yourself

10.3.1 Control Communications


Outputs: Work Performance Information

10.3.3 Control Communications

Variance Analysis

… a comparison of actual results to planned results for the purpose of early

problem detection ...

• Cost, schedule, scope, and quality variances

are most typical – but they can also include

resources and risk variances.

• Both positive and negative variances need

analysis

• Should involve an evaluation of cause and

impact

• Becomes an input to change control process

for generating corrective actions

Earned Value Management: The Data

PV = Planned Value (was BCWS) (1)

EV = Earned Value (was BCWP) (2)

AC = Actual Cost (was ACWP) (3)

(1) requires a performance baseline

(2) requires a way to measure value of

work completed (earned value)

(3) requires a way to collect actual

costs at work package level

t Actual

t When Planned

Time

Cost,

Hours,

or Work

Products

EV

Work Performed

(Earned Value)

PV

Planned Value

AC

Actual Cost

SVScheduleVariance

CVCost

Variance

TotalVariance

• a tool that uses mathematical

techniques to forecast future outcomes

based on past results

• may be used to monitor quality

(product), cost and schedule

performance of a project

• provides a high-level overview that

indicates whether or not more detailed

information is neededThe Rule of Seven: 7 data

points all above or below the

mean, or all increasing or

decreasing, indicate a trend

Trend Analysis


11.6 Control Risks

M&C: Risk Management

Outputs




assets updates

Tools & Techniques

Risk reassessmentRisk auditsVariance and trend analysisTechnical performance

measurementReserve analysisMeetings

Inputs

Project management planRisk registerWork performance dataWork performance reports

Page 335



11.6 Control Risks

Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks and evaluating risk process effectiveness throughout the project

Page 335


11.6.1 Control Risks

Page 335-236

Inputs

Work Performance Reports

Guidelines for Performance Reports:

• keep the report short, matching its length to the projects’ complexity and the audience’s needs

• use a consistent template and format

• use visual elements such as charts and graphs

Criteria for Performance Reporting:

• gives timely, complete, and accurate information

• doesn’t add more administrative overhead than it’s worth

• is acceptable and useful to all participants

• gives warning of problems in time for preventive or corrective actions

• is easily understood by those who have a need to know

Purpose of Performance Reports:

• to detect problems in time to take corrective or preventive action

• to reduce customer and management anxiety

• to share project information within the project team

The Risk Management Plan Includes:

• Methodology: Approaches, tools and data sources.

• Roles and Responsibilities: Team member ownership for risk activities.

• Budgeting: Funds needed for contingency reserves and management reserves.

• Timing: When processes will be done, reserves applied, and how risk appears in schedule.

• Categories: Risk groupings. The RBS looks at sources of risk, IDs and categorizes them.

• Thresholds: What is the trigger? Stakeholders have different thresholds of risk tolerance,

define them, and the must be agreed by all.

• Define P/I Levels: Qualitative (low to high) or probabilities.

• Risk Matrix: Likelihood-Severity, or Probability-Impact.

• Stakeholder Risk Tolerances: Progressively elaborated.

• Reporting Formats and Tracking: Document risk, auditing, defines content of risk register.

Risk Register

• Sources of risk, potential risk event, and risk symptoms

• Opportunities to pursue, opportunities to ignore

• Threats to respond to, threats to accept

• Planned risk responses and how contingencies will be implemented

• Risk reserves

• Responsibilities for risk management

• Plan for ongoing risk identification,

quantification, and response development



Page 338

Tools and Techniques: Variance and Trend Analysis

Variance Analysis

… a comparison of actual results to planned results for the purpose of early

problem detection ...

• Cost, schedule, scope, and quality variances

are most typical – but they can also include

resources and risk variances.

• Both positive and negative variances need

analysis

• Should involve an evaluation of cause and

impact

• Becomes an input to change control process

for generating corrective actions

• a tool that uses mathematical

techniques to forecast future outcomes

based on past results

• may be used to monitor quality

(product), cost and schedule

performance of a project

• provides a high-level overview that

indicates whether or not more detailed

information is neededThe Rule of Seven: 7 data

points all above or below the

mean, or all increasing or

decreasing, indicate a trend

Trend Analysis



Pages 339

Tools and Techniques: Reserve Analysis

A provision in the project plan to mitigate cost and/or schedule risk

May be calculated as a percent of baseline to allow for overrunsMay be established as a separate fund for unforeseen problemsMay have many different (and application area specific) names:

• management reserve• contingency

May be assigned to any level of the WBS, or RBS cause.

ExamTip

PMI recommends aminimum totalreserve of 10%



Pages 339

Outputs: Updates and Change Requests

Implementing contingency plans or workaroundsrequires change to the project plan. Workaround is defined as a response to a threat that has occurred, for which a prior response had not been planned or was not effective. Change requests can include corrective and preventive actions.

Change Control System

A set of procedures that describes how modifications to

the project deliverables and documentation are managed

and controlled, including:

• requesting changes

• reviewing the implications of changes requests

• approving or rejecting changes

• communicating changes

• maintaining a change log - comprehensive list of changes

Contingency = Pre-Planned

Was on my test

ExamTip


Exercise

Risk Monitoring and Control

ExamTip

The exam often asks questions such as:

•What do you do with non-critical risks?

•Would you select only one risk response strategy?

•What risk activities would you do during Execution?.

•What is most important to address in team meetings?

•How would risk be addressed in team meetings?

•Which are more frequent, contingency plans

or workarounds?

Answer: Document and revisit frequently

Answer: No, a combination of choices

Answer: Watch for non-critical risks thatbecome more important

Answer: Risk

Answer: “Status of risks?”, “Any newrisks?”, “Any change to theorder of importance?”

Answer: With proper risk managementWorkarounds become lessfrequent than contingency plans.


12.3 Control Procurements

M&C: Procurement Management

Outputs




assets updates

Tools & Techniques

Contract change control system

Procurement performance reviews

Inspections and auditsPerformance reportingPayment systemsClaims administrationRecords management

system

Inputs

Project management planProcurement documentsAgreementsApproved change requestsWork performance reportsWork performance data

Page 341




Control Procurements is the process of managing procurement relationships, monitoring contract performance and making changes and corrections to contracts as appropriate

Page 341

PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Pages 342-343

Inputs

Match Contract Type to the Project




Used on development projects for flexibility. Cost risk is on the buyer,

so establish administrative & reporting systems to allow both buyer and

seller visibility into costs. (Includes CPFF, CPIF, CPAF)

Used on well specified projects for which costs can be accurately

estimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)

Used on projects where the deliverables are well defined, repetitive units

but the quantities are not yet known (e.g., identical pieces of equipment, or

labor hours and associated material costs – includes overhead and burden)

ExamTip

12.3.1 Control Procurements

Procurement Statement of Work

A narrative description of products or services to be supplied under contract.

• Provides the basis of agreement between buyer and supplier

• Sufficient detail to allow prospective suppliers to determine

whether or not they can comply

• Sufficient latitude for creative solutions only if appropriate

• Each procurement requires a separate SOW. But one SOW

may cover many items in a single procurement

• May be revised as the procurement progresses

• Should be clear, concise, and unambiguous

• May be developed by the project team

or supporting offices (or even the seller)

depending on policy and ability

• Your best defense against procurement scope creep!


Inputs: Approved Change Requests

Change Requests/ Change Orders / Constructive Change Orders --know the differences

Use the Change Control System and Change Control Board

Approved / Unapproved -- document all “changes”

Re-plan and update the documentation (including risk)

Contractors may use change orders to “get well”



Tools and Techniques: Contract Change Control System


Contract Change Control System

Defines the process by which the contract can be modified. It ispart of the Integrated Change Control system, and includespaperwork, tracking systems, dispute resolution conditions, andapproval levels for authorization.

If the buyer terminates the contract for cause, convenience, ordefault, it is done in accordance with the termination and changecontrol sections of the contract.

Contract changes usually also involve changes in either contractpricing or schedule or both. Disputed changes may requiremediation or legal resolution.


Tools and Techniques: Contract Change Control System

Contract Change Control System (PMBOK® Fourth Edition, Page 338): “A Process formodifying the contract”

• Note: When working under a contract, the PM’s success depends not solely on

success of team members, but on the culture and procedures of the buyer’s company.

• Exam questions - “How is project control different in a contracted environment?” Answers may include:

• You need to deal with a different company’s set of procedures

• It is not as easy to “see” the problems

• A greater reliance on reports to determine if a problem exists

• A greater reliance on relationships between Buyer and Seller’s PMs.

Example



Tools and Techniques: Claims Administration


Claims Administration

Contested changes and constructive changes are those where thebuyer and seller cannot agree on payment for the change, orcannot agree that the change even occurred. These become claims,disputes, or appeals.

If not settled by the parties, it may be subject to dispute resolutionprocedures in the contract, e.g., arbitration dispute resolution(ADR), and can be started either before or after contract closure.The preferred method of settlement is negotiation.


EXERCISECONTRACT INTERPRETATION – “WHICH WINS”

In each line, circle the item that would “win” in a dispute over contract interpretation !

It depends on the Order of Precedence Clause in the contract !

Contract Language OR A memo describing changes after the contract is signed

Contract Language OR A memo signed by both parties before the contract is signed that

describes what was agreed to during negotiations

Contract terms and conditions OR Scope of work

Common definition OR The intended meaning (without supplying a definition)

Industry use of the term OR Common use of term

Special provisions OR General provisions

Typed over wording on contract OR A handwritten comment on the contract that is also initialed

Numbers OR Words

Detailed terms OR General terms


Page 350


13.4 Control Stakeholder Engagement

M&C: Project Stakeholder Management

Outputs




assets updates

Tools & Techniques

Information management systems


Inputs

Project management planIssue logWork performance dataProject documents

Page 351



13.4 Control Stakeholder Engagement

Control Stakeholder Engagement is the process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders. This process will increase the efficiency and effectiveness of engaging stakeholders as the project evolves. The Project Manager (PM) is responsible for engaging and managing stakeholders.

Page 351


Tools and Techniques: Information Management Systems

13.4.2 Control Stakeholder Engagement

Information Management Systems

A variety of tools are available to the PM for capturing and distributing information on cost schedule and performance. Reports can be consolidated from several systems for distribution.

Examples are table reporting, spreadsheet analysis, and presentations. Dashboard graphics can be used for visual presentation of project performance


Closing Process Group

Page 355


Process Groups


Monitoring &

Controlling




Change Control


5.1


Define Scope

5.5 Validate Scope

5.6 Control Scope


6.1




7.2 Estimate Costs


7.4 Control Costs





9.1 Plan Human









11.2 Identify Risks




11.6 Control Risks





5.4 Create WBS

6.4

4.6 Close Project

or Phase


Engagement


Engagement

Plan Scope Mgt.

5.3

Plan Schedule Mgt.

6.6

7.1 Plan Cost Mgt.




Management


Closing

4.6 Close Project or Phase12.4 Close Procurements



Closing: Integration Management

Outputs

Final product, service or result transition

Organizational process assets updates

Tools & Techniques


Inputs

Project management planAccepted deliverablesOrganizational process assets

Page 355




Close Project or Phase is the process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase

Page 355


The PM reviews all information from previous phaseclosures to ensure that all work has been done andobjectives have been met. The scope baseline (scope,WBS and WBS dictionary) is reviewed to ensurecompletion.

If a project is terminated before completion, proceduresare established to investigate and document why theaction was taken.

Stakeholders are engaged in the process.


Page 355


4.6.1 Close Project or PhaseInputs: The Project Management Plan (Another Reminder)

Page 356





4.61 Close Project or PhaseInputs: Accepted Deliverables

Page 357

These have all been answers on the test:

• Customer feedback on a more detailed basis

• Done at the end of each Project Phase (not PM phase)

• Results in formal acceptance

ExamTip

The questions on the exam are vague on Scope Validation.Read them carefully.

One question asks for: “the key aspect of scope validation”

Answer: “customer acceptance of project efforts”.The answer does not involve correctness of the work.


4.63 Close Project or PhaseOutputs: Final Product, Service, or Result Transition

Pages 358

Final Product, Service, or Result Transition

The output of Close Project or Phase is the transition ofwhat the project was authorized to produce. If it is aphase closure, it is the intermediate product, service orresult of that phase. Formal acceptance includesreceiving a formal statement that the requirements ofthe project or phase have been met.


4.63 Close Project or PhaseOutputs: Organizational Process Assets Updates

Pages 359

Organizational Process Assets Updates

Closure will include storage of project documentation using the configuration management system. OPA updated during closure include:

Project FilesAssemble a complete set of project records from all processes for archiving, and updating historical databases. Examples include: the PM plan, scope, cost, schedule, calendars, risk registers, change documents, risk responses, and risk impact.

Project or Phase Closure DocumentsDocumentation showing project completion (or termination) and transfer of deliverables. During closure, the PM reviews closure documents from all prior phases, acceptance documents from Validate Scope and the contract to ensure that all requirements are completed.

Historical InformationLessons learned are transferred to archives for future use. This can be information on issues and risks as well as techniques that worked well and can be applied to future projects.


12.4 Close Procurements

Closing: Project Procurement Management

Outputs

Closed procurementsOrganizational process assets

updates

Tools & Techniques

Procurement auditsProcurement negotiationsRecords management system

Inputs

Project management planProcurement documents

Page 360




Close Procurements is the process of completing each procurement.

Contract closure involves verification that all the work and deliverables produced under contract were acceptable.

In multi-phase contracts, the term of the contract may only apply to the end of each phase, and this process would close phase-end contracts.

Page 360


Contract closure involves verification that all the work anddeliverables produced under contract were acceptable. It alsoinvolves updating records to as-built and archiving this informationfor future use. In multi-phase contracts, this process closes phase-end contracts.

Early termination of a contract (or a portion) can result from mutualagreement of the parties or from default of one of the parties, or forconvenience of the buyer. Rights and responsibilities of the partiesare controlled by the terminations clause.

Buyer may have the right to terminate all or part of a contract forcause or convenience at any time, but buyer may have tocompensate seller for preparations, partial completions, andcompleted/accepted work


Page 360


12.4.2 Close Procurements

Page 327

Tools and Techniques: Procurement Negotiations

Negotiation is the primary goal for settling disputes

If this cannot be achieved, use Alternative Dispute Resolution (ADR) – Mediation or Arbitration

Litigation is the LEAST desirable option.


4.6 and 12.4Close Project/Phases and Close Procurements

Be prepared for as many as sixteen questions on these topics:

• Inputs and Outputs

• How Close Project is similar/different from Close Contract(Close Procurements has similar work to Close Project, but with more attention on documentation, completion of files and verification/acceptance.)



Plan Communications is the process of determining the project stakeholder information needs and defining a communication approach

N(N – 1)

2

Channels =

The formula:

Reveals the number of possible channels of communication in a group, where N is the number of people in the group

One More Time: It was on my examination twice

Page 166-167



Page 365



Professional Responsibilitywas introduced into the PMBOK in version in it’s third edition. It requires project managers to consider legal and ethical issues, and at all times to focus on professionalism and advancement of the profession of project management

Page 365



• Think about Legal, ethical and professional behavior when answering exam questions

• You will be challenged with multiple situational questions

• Read PMI Member Ethical Standards: Member Code of Ethics and Member Standards of Conduct, PMP Code of Professional Conduct

• Follow the law, follow bylaws and cooperate on ethics investigations

• The PMI prefers that ethics be handled through infractions without resorting to formal procedures

• Focus on professionalism, integrity, responsibility, self-improvement, fairness, honesty and communication

• Balance stakeholders’ interests



Read Pages 365-366 Carefully

Clarifying Information

Pages 365-66



Page 367

Code of Professional Conduct 2006CHAPTER 1. VISION AND APPLICABILITY 1.1 Vision and Purpose As practitioners of project management, we are committed to doing what is right and honorable. We set high standards for ourselves and we aspire to meet these standards in all aspects of our lives—at work, at home, and in service to our profession. This Code of Ethics and Professional Conduct describes the expectations that we have of ourselves and our fellow practitioners in the global project management community. It articulates the ideals to which we aspire as well as the behaviors that are mandatory in our professional and volunteer roles. The purpose of this Code is to instill confidence in the project management profession and to help an individual become a better practitioner. We do this by establishing a profession-wide understanding of appropriate behavior. We believe that the credibility and reputation of the project management profession is shaped by the collective conduct of individual practitioners. We believe that we can advance our profession, both individually and collectively, by embracing this Code of Ethics and Professional Conduct. We also believe that this Code will assist us in making wise decisions, particularly when faced with difficult situations where we may be asked to compromise our integrity or our values. Our hope that this Code of Ethics and Professional Conduct will serve as a catalyst for others to study, deliberate, and write about ethics and values. Further, we hope that this Code will ultimately be used to build upon and evolve our profession.

1.2 Persons to Whom the Code Applies The Code of Ethics and Professional Conduct applies to: 1.2.1 All PMI members1.2.2 Individuals who are not members of PMI but meet one or more of the following criteria:

.1 Non-members who hold a PMI certification

.2 Non-members who apply to commence a PMI certification process

. .3 Non-members who serve PMI in a volunteer capacity.



Page 369

Code of Professional Conduct 2006

CHAPTER 2. RESPONSIBILITY 2.1 Description of Responsibility Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result.

2.2 Responsibility: Aspirational Standards As practitioners in the global project management community: 2.2.1 We make decisions and take actions based on the best interests of society, public safety, and

the environment. 2.2.2 We accept only those assignments that are consistent with our background, experience, skills,

and qualifications. 2.2.3 We fulfill the commitments that we undertake – we do what we say we will do. 2.2.4 When we make errors or omissions, we take ownership and make corrections promptly.

When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences.

2.2.5 We protect proprietary or confidential information that has been entrusted to us. 2.2.6 We uphold this Code and hold each other accountable to it.



Page 370


2.3 Responsibility: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners:

Regulations and Legal Requirements 2.3.1 We inform ourselves and uphold the policies, rules, regulations and laws that

govern our work, professional, and volunteer activities. 2.3.2 We report unethical or illegal conduct to appropriate management and, if

necessary, to those affected by the conduct.

Ethics Complaints 2.3.3 We bring violations of this Code to the attention of the appropriate body for

resolution. 2.3.4 We only file ethics complaints when they are substantiated by facts. 2.3.5 We pursue disciplinary action against an individual who retaliates against a

person raising ethics concerns.



Page 371

Code of Professional Conduct 2006CHAPTER 3. RESPECT 3.1 Description of Respect Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. An environment of respect engenders trust, confidence, and performance excellence by fostering mutual cooperation. 3.2 Respect: Aspirational Standards As practitioners in the global project management community:

3.2.1 We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful.

3.2.2 We listen to others’ points of view, seeking to understand them. 3.2.3 We approach directly those persons with whom we have a conflict or disagreement. 3.2.4 We conduct ourselves in a professional manner, even when it is not reciprocated.

3.3 Respect: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners:

3.3.1 We negotiate in good faith. 3.3.2 We do not exercise the power of our expertise or position to influence the decisions or

actions of others in order to benefit personally at their expense. 3.3.3 We do not act in an abusive manner toward others. 3.3.4 We respect the property rights of others.



Page 372

Code of Professional Conduct 2006CHAPTER 4. FAIRNESS

4.1 Description of Fairness Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self interest, prejudice, and favoritism.

4.2 Fairness: Aspirational Standards As practitioners in the global project management community:

4.2.1 We demonstrate transparency in our decision-making process. 4.2.2 We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate. 4.2.3 We provide equal access to information to those who are authorized to have that information. 4.2.4 We make opportunities equally available to qualified candidates.

4.3 Fairness: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners:

Conflict of Interest Situations 4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate

stakeholders. 4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in

the decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed.

assad

Typewriter

الانصاف



Page 373


Favoritism and Discrimination 4.3.3 We do not hire or fire, reward or punish, or award or deny contracts based on personal

considerations, including but not limited to, favoritism, nepotism, or bribery. 4.3.4 We do not discriminate against others based on, but not limited to, gender, race, age, religion,

disability, nationality, or sexual orientation. 4.3.5 We apply the rules of the organization (employer, Project Management Institute, or other

group) without favoritism or prejudice.



Page 373-274


CHAPTER 5. HONESTY

5.1 Description of Honesty Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct.

5.2 Honesty: Aspirational Standards As practitioners in the global project management community:

5.2.1 We earnestly seek to understand the truth. 5.2.2 We are truthful in our communications and in our conduct. 5.2.3 We provide accurate information in a timely manner.

5.3 Honesty: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners:

5.3.1 We do not engage in or condone behavior that is designed to deceive others, including but not limited to, making misleading or false statements, stating half-truths, providing information out of context or withholding information that, if known, would render our statements as misleading or incomplete.

5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.



Pages 375-377

Read Pages 375-377 Carefully

History of the Standard

Glossary



Page 378

P.M.P ® Code of Professional ConductI. Responsibilities to the Profession

A. Compliance with all organizational rules and policies. 1. Responsibility to provide accurate and truthful representations concerning all information directly or

indirectly related to all aspects of the PMI Certification Program, including and not limited to the following: examination applications, test item banks, examinations, answer sheets, candidate information, and professional development program reporting forms.

2. Upon a reasonable and clear factual basis, responsibility to report possible violations of the professional code of conduct by individuals in the field of project management.

3. Responsibility to cooperate with PMI concerning ethics violations and the collection of related information. 4. Responsibility to disclose to clients, customers, owners, or contractors, significant circumstances that could be

construed as a conflict of interest, or an appearance of impropriety.

B. Candidate/Certificant Professional Practice. 1. Responsibility to provide accurate, truthful advertising and representations concerning qualifications,

experience, and performance of services. 2. Responsibility to comply with laws, regulations, and ethical standards governing professional practice in the

state/province and/or country when providing project management services.

C. Advancement of the Profession. 1. Responsibility to recognize and respect intellectual property developed or owned by others, and to otherwise

act in an accurate, truthful, and complete manner, including, all activities related to professional work and research.

2. Responsibility to support and disseminate the professional code of conduct to other PMI certificants.



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P.M.P ® Code of Professional Conduct

I. Candidate/Certificant Responsibilities to Customers and the Public

A. Qualifications, experience, and performance of professional services. 1. Responsibility to provide accurate and truthful representations to the public in advertising,

public statements, and in the preparation of estimates concerning costs, services, and expected results.

2. Responsibility to maintain and satisfy the scope and objectives of professional services, unless otherwise directed by the customer.

3. Responsibility to maintain and respect the confidentiality of sensitive information obtained in the course of professional activities or otherwise where a clear obligation exists.

B. Conflict of interest situations and other prohibited professional conduct. 1. Responsibility to ensure that a conflict of interest does not compromise legitimate interests

of a client or customer, or influence/interfere with professional judgments. 2. Responsibility to refrain from offering or accepting inappropriate payments, gifts, or other

forms of compensation for personal gain, unless in conformity with applicable laws or customs of the country where project management services are being provided.


Professional responsibility

Types of Questions to Expect

A. Inform the public …

You are building a water treatment facility. Routine tests indicate that there are contaminants in the water but that they have an extremely low risk of causing sickness. As a project manager you should:

A. Inform the public that a detailed examination has been ordered to determine the extent to which the problem exists

B. Do nothing because there is an extremely low risk except for some effects on small children or the elderly

C. Tell the public there is no problem, except for small children and the elderly who should boil their water before drinking it

D. Educate the public about the advances in water treatment technology and the industry efficiency and safety record

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ملوث

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الى أبعد حد

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مدى

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يجد,يكون, يوجد, يعيش

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يعلم




B. Requirements

A KEY activity to defining customer satisfaction is to define:

A. Business UseB. RequirementsC. Product SpecificityD. Change Control




B. Develop alternative solutions to the problem

When it appears that a design error will interfere with technical performance objectives, the PREFERRED response is to:

A. Decrease the performance value to equal the assessed valueB. Develop alternative solutions to the problemC. Increase the specified value to set a new performance goalD. Reduce the overall technical complexity of the project

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تدخل

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مفضل




B. Training

What is the MOST effective practice to ensure that cultural and ethical differences do not impede the success of your multi-national project?

A. Co-LocatingB. TrainingC. FormingD. Teaming

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A. Mutual trust and cooperation

Negotiating across international cultures involves mutual interdependence between parties. The negotiations MUST be conducted in an atmosphere of:

A. Mutual trust and cooperationB. Generalities and vaguenessC. Sincerity and compassionD. Uncertainty and caution

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يتضمن

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متبادل

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الأطراف

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ثقة

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تعاون

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العموميات

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غموض

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اخلاص

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شفقة

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تحذير

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الأعتماد


PMP® Certification Test Preparation


New Test and New PMBOK® Edition

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The PMBOK® 5th Edition was released in January 2013. The test changed again on July 31, 2013. A new Knowledge Area was introduced: Stakeholder Management.


Qualification Requirements


years


years

35 contact hours (PDU’s) of PM

education

+ =

Graduate, 4-Year Degree

Non-Graduate, or 2-Year Degree

Eligibility to take the PMP®

examination

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This Course ID is E1078 and Awards 24 PDU’s

The T&T CD ID is E1091 and Awards 11 PDU’s

PMTestOnline is C4070 and Awards 11 PDU’s


PMBOK Fifth Edition and the New Test

The PMBOK Fifth Edition was introduced in January 2013, and the new fifth edition test started on July 31, 2013.

The PMP examination consists of 200 questions, with a four hour time limit

That’s 72 seconds (or 1.2 minutes) per question

This training course will give you everything you need,with a little self-study, to pass the PMP® examination

Visit www.pmi.org, download PMP Certification Handbook

Page 2

http://www.pmi.org/


PMBOK 5th Edition PMP Test Domain Content

Project Initiation 13% Project Planning 24% Project Execution 30%Project Monitoring & Control 25%Project Closing 8%

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To pass, you need to get a minimum of 122

questions correct out of 200 questions (61%)

Pass rate on the 4th Edition test is about 74%


http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspxLog in with your User Name and PasswordFollow the instructions

Submit your application to Project Management Institute (PMI)

PMI ® may audit when you pay your exam fee to PMI. If you cancel or reschedule within 30 days of the test, there is a fee of $70; within 2 days, you forfeit the entire fee.

http://www.pmi.org/info/PDC_PMPHandbook.pdf

Control is through audit (when you pay)

Schedule a test date with Prometrichttp://www.prometric.com/PMI/default.htm

Apply to PMI to take the test,

Schedule a date with Prometric

Candidates have three (3) opportunities to pass the exam in one year. If they

do not pass any, they must wait one (1) year from the date of the last attempt.

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رسم

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غرامة

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المرشحون

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محاولة


Taking the PMP® examination

Ensure you have the required

experience

Complete a PMP® Prep

course

Send in your

application

Ensure you have 35 PDU’s

AND

Join the PMI® (if you

haven’t)

Study hard for about 2 weeks

Take the exam

and pass

www.pmi.org

Schedule exam at

Prometrics


Applying to Take The Exam

• Apply using the PMI web site. http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspx

• Using the PMI® web site to complete the application is fast and easy. Turn around to approval is normally just a few days, but it may take a little longer.

• Sometimes your test center may not have an opening for a few weeks.

• On the computerized test, the questions are in English, but pop-up screens will aid you in understanding the question in your native language. This feature must be requested by you in your application.

• In some countries, the test may be given on paper, in English, not in your native language.

http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspx



Number of Questions: 200

Time for the Exam: 4 Hours

To Pass: you must get about 122 of 200 questions correct About 61%

Questions are randomly generated, 4-option, multiple choice.

Questions not answered are wrong - answer all questions.

Don’t be surprised if some long questions are early in the exam

and you get behind on time.

Breaks are allowed, but extra time is NOT allotted for them.

In most test centers you must sign out and sign back in, which takes time

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Reasons people fail the exam

• They do not read all the questions correctly

• They do not read all the choices in each question

• They are too nervous• They have not studied enough or use

source books other than the PMBOK®• They believe they can rely purely on

experience• They have not taken a PMP® prep

course like this one

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• Go to the test center before the day of your test, find where it is, look at the testing room, talk to the administrator.

• Bring your PMI® authorization e-mail or letter to the test site.

• Bring a picture identification.

• PMI has recently decided not to allow any personal calculators in the testing room. A pop-up calculator is available on the computer. If that is awkward for you to use, ask the administrator to provide a calculator for you.

• You will be given scrap paper, pencils, and in some test centers, earplugs.

• All personal items will be safely stored for you and cannot be taken into the test room.

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• Upon entering the test room, you will be given 15 minutes to use the computer tutorial and to become familiar with the commands. You can mark questions on the computer and return to the marked questions later, or you can review every question.

• Use the entire 15 minutes to write information you need to remember on the scratch paper.

• You will see one question on the screen at a time.

• Many people finish the exam ahead of the 4-hour limit and return to “marked” questions for review/correction.

• When you finish the exam or when the time limit is expired, your answers are immediately graded. The computer tells you if you pass. A temporary certificate is printed at the test center, and you immediately become a PMP®. PMI® will post a formal certificate to you later.

• If you do not pass, PMI® will be notified and will send you information about retaking the exam. See PMI®s website about the additional fee.

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Hints on Test Questions

Choices like “A or B” and “never and always” have been removed.

Watch out for distractors - choices that are true, but not the best answer.

There are about 45 to 75 “what should you do in this situation” questions.

Most people feel unsure about 50 of the 200 questions.

You must be familiar with PMI®-specific definitions. A big trick to success on the exam is to try touse PMI®’s perspective, not your experience. If that does not work, then use your training and lifeexperiences.

Read the last sentence of each question first. What is the question asking?

Read ALL FOUR answers, without making a choice.

Read the whole question. Understand the topic and descriptors. Read the last sentence AGAIN,then eliminate two of the four answers.

Read the last sentence AGAIN, then pick the best of the two remaining answers.

About 8 to 12 questions deal with PMBOK® step-by-step processes and the input/output toprocesses.

There have been less than 8 earned value questions on the exam in the last three years.

Use all the exam time; do not leave early unless you have reviewed each question twice.

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Turn to page 449 in the workbookThere are 100 questions.

You have 120 minutes to completeAnswers are on page 475

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Practice Test #3

CONGRATULATIONS !!!

You have just completed more than the entire PMP Test!

You have done 228 questions


Let us know when you pass, andSend us “surprises” you remember !

Pmp prep 5th ed-bmc master-oct 2013

Engineering

Transcript of Pmp prep 5th ed-bmc master-oct 2013