CAPM Exam ObjectiveThe Project Management Framework The Project Life Cycle and Organization The Project Management Processes for a Project Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resources Management Project Communications Management Project Risk Management Project Procurement Management

Percentage of Exam4 percent (approximately 6 questions) 4 percent (approximately 6 questions) 11 percent (approximately 17 questions) 11 percent (approximately 17 questions) 11 percent (approximately 17 questions) 11 percent (approximately 17 questions) 9 percent (approximately 14 questions) 7 percent (approximately 11 questions) 7 percent (approximately 11 questions) 7 percent (approximately 11 questions) 11 percent (approximately 17 questions) 7 percent (approximately 11 questions)

General Project Management TermsA Project is a temporary (finite) group of related tasks undertaken to create a unique product, service, or result. It is time limited, unique, comprised of interrelated activities, and undertaken for a purpose. Process: a package of inputs, tools, and outputs used together to do something on a project. There are 44 unique processes that are part of the PMBOK. Phases: each Phase of a project produces one or more deliverables. Any and all processes in the PMBOK can take place within each phase of a project. Exit Gate or Kill Point is an evaluation of the deliverables of one project phase to determine if the project should continue and the next phase should be initiated. A program is a larger effort a group of related projects coordinated together. A project portfolio represents the companys entire investment in programs and projects. Progressive Elaboration not all of the characteristics about a product are known when you begin a project. Requirements are revisited and refined frequently. Project Management is using skills, knowledge, and resources to satisfy project requirements. Historical information is found in the records kept on previous projects and is often used as input to processes to help predict trends and set benchmarks. Baseline is the original plan (including time, scope, cost) including all approved changes and is used to measure how performance deviates from the plan.

Lessons Learned are the documents focused on variances created at the end of each process.

Project RolesProject Manager: the person ultimately responsible for the outcome of the project. The Project Manager is in charge of the project and empowered to use organizational resources, spend the project budget, and make decisions for the project. Project Coordinator: similar to project manager role, but in smaller organizations, functional or matrix. Project Expeditor: staff assistant with little or no authority; usually found in a functional organization. Senior Management: anyone more senior than the project manager; prioritizes projects and ensures project manager has needed authority and resources. Functional Manager: usually a department manager; owns the resources that will be used by the project. Stakeholder: those whose interest may be + or impacted by the project. Sponsor: the person(s) paying for the project. Project Office: serves in a supporting role defines standards, provides best practices, audits projects for conformance.

Project Context organizational environment in which a project is carried out. Oftendetermined by type of organization. Three major types or of organizations are Functional, Projectized, and Matrix. Functional Organization: team members work for a department (engineering, accounting.) but are loaned to a project from time to time. Deeper expertise and specialization, weaker PM, projects are lower priority. Projectized Organization: structured according to projects, not functions. PM has high authority, strong team loyalty; team works itself out of a job. Matrix Organization: Strong PM has most of the authority. Weak FM has authority. Can be best of both, has higher overhead, could have higher friction. PM Skills include: leading, communicating, negotiating, problem solving, influencing Project Life Cycle six phases Conceptual

Planning Construction Testing Implementation Closure The Triple Constraint Time / Cost / Scope or Quality are inter-related. One cannot change without having an impact on the other(s) Expanded view of this concept includes Time / Cost / Scope / Quality / Risk / Customer Satisfaction Common Inputs, Tools, Techniques, Outputs PMBOK recognizes 592 inputs, tools, techniques, outputs across the 44 PM processes (44 processes are grouped into 5 process groups across 9 knowledge areas) Common Inputs include: o Approved Change Requests o Enterprise Environmental Factors company structure, values, work ethic, laws and regulations, overall marketplace o Organizational Process Assets templates, policies, procedures, tools, knowledge bases, historical information o Project Management Plan project scope, schedule, resources, cost, quality mgmt, process improvement, staffing, communications, risk and procurement management. o Work Performance Info Common Tools include: o Expert Judgement o Project Mgmt Methodology how the 44 processes are used / applied to form the overall project mgmt strategy. o Project Mgmt Information Systems (PMIS) tool that helps track project documents and deliverables (encompasses change management system and configuration management system) Common Outputs include: o Recommended Corrective Action o Requested Change o PM System o Work Authorization System o Policy o Approved Change Requests o Approved Corrective Actions o Recommended and Approved Preventive Actions

Ch 3 Process Framework Terms: Process: composed of inputs, tools and techniques, and outputs. Inputs: the starting point for a process. Tools and Techniques: actions or methods used to transform inputs into outputs Outputs: the ends of the process efforts. Often outputs from one process are inputs for another process. 9 Knowledge Areas: 1. Integration Management 2. Scope Management 3. Time Management 4. Cost Management 5. Quality Management 6. Human Resource Management 7. Communication Management 8. Risk Management 9. Procurement Management 5 Process Groups: 1. Initiating 2. Planning 3. Executing 4. Monitoring and Controlling 5. Closing Scope of a project is usually progressively elaborated, meaning that processes are preformed iteratively, not in a linear manner. All processes could be performed in one or more of the project phases.

Process Groups--> ---------------------- | Knowledge Areas v

InitiatingDevelop Project Charter Develop Prelim. Scope

PlanningDevelop Project Mgmt Plan

ExecutingDirect and Manage Project Execution

Monitor & ControlMonitor & Control Project Work Scope Verification Scope Control Schedule Control

ClosingClose Project

Integration Scope Time

Cost Quality HR Communication Risk

Scope Planning Scope Definition Create WBS Activity Definition Activity Sequencing Activity Resource Est. Activity Duration Est. Schedule Development Cost Estimating Cost Budgeting Quality Planning HR Planning Communications Planning Risk Mgmt. Planning Risk ID Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Plan Purchases and Acquisitions Plan Contracting Perform Quality Assurance Acquire Project Team Develop Project Team Information Distribution

Cost Control

Perform Quality Control Manage Project Team Performance Reporting Manage Stakeholders Risk Monitoring & Control

Procurement

Request Seller Responses Select Sellers

Contract Admin.

Contract Closeout

Process Group Breakdown: PG 1: Initiating (KA: Integration) Develop Project Charter Develop Preliminary Project Scope Statement PG 2: Planning (KA: ALL) Develop Project Management Plan Scope Planning Scope Definition Create WBS Activity Definition Activity Sequencing Activity Resource Estimating Schedule Development Cost Estimating Cost Budgeting Quality Planning Human Resources Planning Communications Planning Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Plan Purchase and Acquisitions Plan Contracting ! Project Planning is extremely important the 21 processes touch every one of the knowledge areas. PG 3: Executing (KA: Integration, Quality, HR, Communication, Procurement) ! Executing process involve the most actual work. Direct and Manage Project Execution Perform Quality Assurance Acquire Project Team Develop Project Team Information Distribution Request Seller Responses Select Sellers PG 4: Monitoring and Controlling (KA: ALL) ! measure, inspect, review, compare, monitor, verify, report all keywords part of this process group. Monitor and Control Project Work Integrated Change Control

Scope Verification Scope Control Schedule Control Cost Control Perform Quality Control Manage Project Team Performance Reporting Manage Stakeholders Risk Monitoring and Control Contract Administration PG5: Closing (KA: Integration, Procurement) Close Project Contract Closure

Knowledge Area Breakdown:------------------------------------------------Integration Management (Ch. 4) Integration PG1 - Initiating: Develop Project Charter -- one of the first processes performed. Project Charter is one of the most important documents in a project. Inputs: Contract if relevant, contract is signed prior to project beginning. Project SOW written description of the products, services, results. Tools: *Project Selection Methods or Benefit Measurement Methods, such as: Benefit Cost Ratio (BCR); Economic Value Add (EVA); Internal Rate of Return (IRR); Opportunity Cost; Payback Period; Present Value (PV) and Net Present Value (NPV); Return on Investment (ROI); Return on Invested Capital (ROIC) *This is all to ensure that the right projects, which are in alignment to the organizational strategy and which will give maximum benefits within desired time frame only are selected for execution. Outputs: Project Charter o Based on business need, customer request, or market force o Signed by senior management of performing organization o Vision Statement of the project o Business Case o Project Sponsor name, roles, responsibilities o Project Manager name and responsibilities o High Level Scope of the project(s) o High Level Project Requirements o High Level Milestone View of Project Schedule o Key Risks, Assumptions, Dependencies o Summary Level Preliminary Budget Integration PG1- Initiating: Develop Preliminary Project Scope Statement Inputs: Project Charter Project Statement of Work Enterprise / Organizational Factors Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment

Output: Preliminary Project Scope Statement: contains preliminary info on: o Work Breakdown Structure o Project Requirements o Cost Estimates o Schedule Milestones o Initial Risks o Project Organization o What is and is not in the project o Acceptance Criteria Integration PG2 - Planning: Develop Project Management Plan Project Plan should be B.A.R.F. Bought into Approved Realistic Formal PMBOK defines the project plan as A formal, approved document that defines how the project is managed, executed, and controlled. It may be summary or detailed and may be composed of one or more subsidiary management plans and other planning documents. Inputs: Project Charter Preliminary Project Scope Project SOW Enterprise / Organizational Factors Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment Outputs: Project Management Plan Since the Project Charter includes a summary budget and summary schedule, the Schedule Management Plan and Cost Management Plan are created during the initial Project Management Plan development. Through the project lifecycle, the PMP may also contain one or more of these components: o Scope Management Plan o Schedule Management Plan o Cost Management Plan o Quality Management Plan

o o o o o o o o o o o

Process Improvement Plan Staffing Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Milestone List Resource Calendar Schedule Baseline Cost Baseline Quality Baseline Risk Register

Integration PG3 - Executing: Direct & Manage Project Execution Project team is executing the work package and creating the project deliverables. Inputs: PMP Approved Corrective Actions Approved Preventive Actions Approved Change Requests Approved Defect Repair Validated Defect Repair Administrative Closure Procedures Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment Outputs: Project Deliverables Work Performance Information Implemented: Corrective Actions Preventive Actions Change Requests Defect Repairs Integration PG 4 Monitor and Control: Monitor & Control Project Work Monitoring project work takes place as long as there is work to be done. Inputs: PMP Work Performance Information

Rejected Change Requests Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment Earned Value Technique used to measure project progress and forecast future project performance Outputs: Recommended Corrective Actions Recommended Preventative Actions Requested Changes and Defect Repair Forecasts using earned value, can forecast project results Integration PG 4 Monitor and Control: Integrated Change Control !One of the most important processes! Project Deliverables are both Inputs and Outputs to this process. Focused on managing changes to the project scope. Inputs: PMP Work Performance Information Requested Changes Recommended Preventive and Corrective Actions Recommended Defect Repair Deliverables Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment Change Control Board (CCB) Outputs: Approved Change Requests Rejected Change Requests PMP Updates Project Scope Updates Approved or Rejected Corrective and Preventive Actions Approved and Validated Defect Repairs Deliverables Integration PG 5 Closing: Close Project

Inputs: PMP Contract Documentation Enterprise / Organizational Factors Work Performance Information Deliverables Tools: Project Management Information Systems (PMIS) PM Methodology Expert Judgment Outputs: Administrative Closure Procedure Contract Closure Procedure Final Product(s), Service(s), Result(s) (acceptance impliled) Organizational Process Assets Updates Scope Management (Ch 5) The project manager should always be in control of the scope through rigid management of requirements, details, and processes. Scope changes should be handled in a structured, procedural, and controlled manner. Project managers should work proactively to indentify and influence the factors that might cause change. The overall goals of scope management are to define the need, set stakeholder expectations, deliver to the expectations, manage changes, minimize surprises and gain acceptance of the product. The Scope Management Process includes: Creating a plan for how scope and scope changes will be managed Defining and documenting deliverables that are part of the project Creating the work breakdown structure (WBS) Checking the work being done against the scope Ensuring that all of what is in scope and only what is in scope is completed. Scope PG2 Planning: Scope Planning Inputs: Enterprise/Organizational Factors Project Charter Preliminary Scope Statement PMP

Tools: Expert Judgment Templates, Forms, Standards Outputs: Project Scope Management Plan defines what activities the team will perform in order to gather the project requirements, create the work breakdown structure, document the scope, place the scope under control, manage changes to the scope, and verify that all in-scope and only in-scope work was performed. Scope PG2 Planning: Scope Definition This is the process where the projects requirements are gathered and documented. Inputs: Organizational Process Assets Preliminary Project Scope Statement Project Scope Management Plan Approved Change Requests Tools: Product Analysis Alternatives Identification Expert Judgment Stakeholder Analysis Outputs: Project Scope Statement used to level-set among project stakeholders. Requested Changes Project Scope Management Plan Updates Differences between Preliminary Project Scope Statement and Project Scope Statement Preliminary Project Scope Statement Project Scope Statement Process where Create Preliminary Scope Definition created Project Scope Statement Knowledge Integration Scope Area When Used Very early, for a brief time Throughout the project Purpose Provides a starting point related to the Defines the scope in detail. scope. Sets the direction for the project Contains everything that is in and gives a rough definition to the the scope of the project. scope.

Scope PG2 Planning: Create Work Breakdown Structure !!This is one of the most important processes. After it is created, the WBS becomes a hub of information for the project WBS is typically created early in the project after scope and requirements, but before the bulk of the work is executed Inputs: Organizational Assets Project Scope Statement Project Scope Management Plan Approved Change Requests Tools: WBS Templates may be examples from previous projects, !Decomposition breaking down project deliverables into smaller components. Each level is more and more specific. The smaller, more manageable pieces, called work packages can be: Estimated confidently Cannot be divided further Can be completed quickly Have meaningful deliverables Can be completed without interruption Are typically numbered for ease of location Outputs: Project Scope Statement Updates Work Breakdown Structure graphical, hierarchical chart1. Online Ordering Application 90 days / $85,000. 1.1 Hardware 15 days / $15,000 1.2 Design 30 days / $25,000

1.3 Development

1.4 Testing

1.1.1 Define HW Requirements

1.2.1 Create initial tables and indexes

1.3.1 Develop Screens

1.3.2 Develop Reports

1.4.1 Functionality Testing

1.1.2 Procure HW

1.2.2 Normalize tables and indexes

1.3.1.1 create login screen

1.3.3 Integrate with Shipping Systems

1.4.2 User Acceptance Testing

1.1.3 Configure HW

1.2.3 Validate design

1.3.1.2 create order screen

1.3.1.3 create payment screen

The Elements of a Good Work Breakdown Structure (WBS): o Detailed down to a low level the lowest level defines every deliverable

o Graphical / Pyramid, with each sub-level rolling up to the level above o Each element is numbered o Provides sufficient detail to drive subsequent planning o Thorough and Complete if it is not in the WBS, it is not a project deliverable o Created by the project team, helps define responsibilities. WBS Dictionary captures additional attributes about each work package that do not fit into WBS. Project: Online Ordering Application Work Package ID: 1.1.3 Configure Hardware Work Package Description: all new hardware must be configured according to standards includes all settings and operating system patches, formatting of storage devices, installation of virus software, and hardening according to guidelines. Assigned to: Jon Smith Department: IT Date Assigned: 05/01/09 Date Due: 0630/10 Est. Cost: $6,000 Accounting Code: OOA-113 Project Scope Mgmt Plan Updates Scope Baseline combination of the project scope, WBS and WBS dictionary. Requested Changes Scope PG4 Monitor and Control: Scope Verification Scope Verification is the process of verifying that the product(s,) service, or result of the project match the documented scope. Somewhat similar to quality control, but Scope Verification is concerned with completeness (quality control correctness.) Inputs Project Scope Statement WBS Dictionary Project Scope Management Plan Deliverables Tools Inspection a point-by-point review of the scope and associated deliverables. Outputs Accepted Deliverables Requested Changes Recommended Corrective Action

Scope PG4 Monitor and Control: Scope Control Controlling the scope and the project by preventing scope change requests from overwhelming the project. Inputs Project Scope Statement WBS and WBS Dictionary Project Scope Management Plan Performance Reports Approved Change Requests Work Performance Information Tools Change Control System forms, tools, people and procedures used to control changes to the scope baseline. Variance Analysis Replanning Configuration Management System (the umbrella over all change control systems)

Outputs Project Scope Statement Updates WBS and WBS Dictionary Updates Scope Baseline Updates Requested Changes Recommended Corrective Actions

Time Management (Ch 6) Project Manager should be in control of the schedule. Schedule is built from ground up and rigorously managed throughout the life of the project. The driving philosophy behind time management is mathematical it is cold, hard analysis. Time, Cost, and Scope are particularly tightly linked a change in one will almost certainly impact the other(s.) The Time Management Process includes: Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating

Schedule Development Schedule Control

Time PG2 Planning: Activity Definition Using the decomposed WBS, a granular activity list is created to focus on how and when each work activity is to be accomplished. Inputs Environmental Factors and Organizational Assets Work Breakdown Structure the most important input WBS Dictionary Project Management Plan Tools Decomposition each work package at the bottom of the WBS is decomposed into smaller scheduled activities. Templates Rolling Wave Planning a form of progressive elaboration that assumes that things in the near future are relatively clear, while future project activities are not as easily understood. This is revisited throughout the project. Expert Judgment Planning Component a summary activity that will be revisited once the parent WBS node has been sufficiently defined. Outputs Activity List all of the scheduled activities that need to be performed in order to complete the project Activity Attributes Milestone List Key project milestones are identified and will be used to build the schedule Requested Changes Time PG2 Planning: Activity Sequencing Taking the activity list and arranging the activities in the order they must be performed. It is performed after activity definition and before schedule development. Inputs Project Scope Statement Activity List the most important input to this process Activity Attributes Milestone List

Approved Change Requests Tools Precedence Diagramming Method (PDM) the most commonly used. activities represented by rectangular nodes, dependencies between activities represented by arrows, units of duration are shown above the nodes. Also known as AON activity on node 4 types of relationships Finish to Start, S to F, S to S and F to F Arrow Diagramming Method (ADM) activities are on the arrows, circle nodes are connecting points Also known as AOA activity on arrow Only F-S, but can contain 0 duration dummy activities Schedule Network Templates Dependency Determinations those things that influence which activities must be performed first. There are three kinds of dependencies: Mandatory dependencies aka hard logic, always true Discretionary dependencies aka soft or preferred logic External dependencies outside of project scope, but must be considered. Apply Leads and Lags Leads an activity gets a jump start Lags a waiting period must exist between activities; usually no work is being performed Outputs Project Schedule Network Diagram -- not a schedule, but activities arranged in the order they must be preformed. Activity List Updates Activity Attribute Updates Requested Changes Time PG2 Planning: Activity Resource Estimating A function of the size of activity and the number and availability of resources to be applied to it. Inputs Environmental and Organizational Factors Activity List the most important input to this process Activity Attributes Resource Availability Project Mgmt Plan / schedule management plan Tools

Expert Judgment Alternatives Analysis Published Estimating Data Project Mgmt Software Bottom-Up Estimating Outputs Activity Resource Requirements Activity Attribute Updates Resource Breakdown Structure (RBS) Resource Calendar Updates Requested Changes Time PG2 Planning: Activity Duration Estimating Each activity in the activity list is analyzed to estimate how long it will take. Inputs Environmental Factors and Organizational Process Assets Project Scope Statement Activity List primary input Activity Attributes Activity Resource Requirements Resource Calendar shows physical and human resource usage across the project Project Mgmt Plan Tools Expert Judgment Analogous Estimating (aka top-down estimating) activity from a previous project is used to estimate activity duration. Parametric Estimating linear extrapolation, i.e. if 1 team can install 100 ft in 1 day, it takes 10 teams to install 1,000 feet in 1 day. Three-Point Estimates (aka PERT) uses three data points instead of one (pessimistic, most likely or realistic, and optimistic) (P+R+O)/3 standard dev (P-O)/3 Pert (P + 4*R + O) / 6 standard deviation for PERT P O / 6 2 variation (P O / 6) Reverse Analysis (aka contingency) extra time added to a schedule activity duration estimate Outputs Activity Duration Estimates - the main output; contains an estimated duration for each activity in the activity list. Activity Attribute Updates

Time PG2 Planning: Schedule Development One of the largest PMBOK processes, as well as one of the most visible and most important parts of the project plan. Inputs Organizational Process Assets Project Scope Statement Activity List and Activity Attributes Project Schedule Network Diagrams Activity Resource Requirements Resource Calendar Activity Duration Estimates Project Management Plan Tools Schedule Network Analysis a group of tools used to create a schedule Critical Path Method (CPM) the combination of activities that, if any are delayed, will delay the project finish. Used to calculate the project finish date and identify how much individual activities can slip or float. ES and EF Early Start and Early Finish LS and LF Late Start and Late Finish Float (aka slack) amt of time an activity can be delayed w/out impacting project Schedule Compression ways to complete the project schedule early without cutting scope. Crashing involves adding resources to a project and almost always increases cost. Fast Tracking is a re-ordering of activities so that some are performed in parallel does not increase cost, but often increases risk. What-If Schedule Analysis (Monte Carlo) computer analysis to identify highest risk activities. Resource Leveling when project resource needs match up with the organizations ability to supply resources. Critical Chain Method determine latest possible start and finish date for each activity, and then add schedule buffers between activities. Project Mgmt Software Applying Calendars Adjusting Leads and Lags Schedule Model Outputs Project Schedule shows when each activity is scheduled to begin and end, as well as overall project start and finish. Typically represented in graphical format using a Project Network Diagram, Bar or Gantt Chart, or Milestone Chart Schedule Model Data information used by the project team to model and create the project schedule. Schedule Baseline the original plan plus all approved changes.

Resource Requirement Updates Activity Attribute Updates Project Calendar Updates Requested Changes Project Mgmt Plan Updates Time PG4 Monitor & Control: Schedule Control Schedule Control is performed throughout the life of the project to make sure that timerelated performance on the project is in line with the plan. Schedule control should be a proactive process, with the project manager staying out in front of the project. Inputs Schedule Management Plan Schedule Baseline Performance Reports Approved Change Requests Tools Progress Reporting Schedule Change Control System Performance Measurement Project Mgmt Software Variance Analysis Schedule Comparison Gantt Charts Outputs Schedule Model Data Updates Schedule Baseline Updates Performance Measurements Requested Changes Recommended Corrective Action Organizational Process Assets Updates Activity List and Activity Attribute Updates Project Mgmt Plan Updates Free Float or Free Slack: the amount of time an activity can be delayed without affecting the early start date of subsequent dependent activities. Negative Float: activity start date occurs before a preceding activity finish date. Indicates schedule problems usually related to immovable constraints or milestones.

Cost Management (Ch 7) Plan scope first, then schedule, then cost. It is the job of the PM to monitor and control cost against time, scope, quality and risk. Planning Processes Cost Estimating and Cost Budgeting Controlling Process Cost Control Life-Cycle Costing looks at the total cost of ownership from purchase through operations and to disposal. Value Engineering squeeze as much benefit and value out of each aspect of the project. Cost PG2 Planning: Cost Estimating Activity time and resource estimates are analyzed to produce a cost estimate. Estimate Type Order of Magnitude Estimate Conceptual Estimate Preliminary Estimate Definitive Estimate Control Estimate Range - 50% to + 100% - 30% to + 50% - 20% to + 30% - 15% to + 20% - 10% to + 15 %

Typically, the closer in time you are to spending money, the more precise you want your estimate to be. Inputs Enterprise Environmental Factors Organizational Process Assets Project Scope Statement Work Breakdown Structure WBS Dictionary Project Mgmt Plan Tools Analogous Estimating using previous project results to estimate Determine Resource Cost Rates Bottom-Up Estimating a separate estimate for each schedule activity Parametric Estimating if 1 costs $100, then 6 will likely cost $600 Project Mgmt Software Vendor Bid Analysis Reserve Analysis (contingency) Cost of Quality (COQ)

Outputs Activity Cost Estimates Activity Cost Estimate Supporting Details Requested Changes Cost Management Plan Updates Cost PG2 Planning: Cost Budgeting Cost Budgeting takes the estimated project expenditures and maps them to the project calendar. Inputs Project Scope Statement Work Breakdown Structure and WBS dictionary Activity Cost Estimates the primary input Activity Cost Estimate Supporting Details Project Schedule Resource Calendar Contract Cost Management Plan Tools Cost Aggregation aggregating costs at activity level to WBS level Reserve Analysis Parametric Estimating ex. Cost of runway based on length Funding Limit Reconciliation Outputs Cost Baseline (aka project budget) Project Funding Requirements Cost Management Plan Updates Requested Changes Cost PG4 Monitor and Control: Cost Control Proactive measurement of what was executed against what was planned. Cost Control is primarily concerned with cost variance positive is good, negative is bad, but both are variance. Inputs Cost Baseline Project Funding Requirements Performance Reports Work Performance Information

Approved Change Requests Project Management Plan Tools Cost Change Control System Performance Measurement Analysis Forecasting Project Performance Reviews Project Mgmt Software Variance Management Outputs Cost Estimate Updates Cost Baseline Updates Performance Measurements Forecasted Completion Requested Changes Recommended Corrective Actions Organizational Process Assets Updates Project Mgmt Plan Updates Earned Value Terms and Formulas Term Budget at Completion Planned Value Earned Value Actual Cost Cost Variance Schedule Variance Cost Performance Index Cumulative CPI Schedule Performance Index Estimate At Completion AKA Description BAC How much was originally planned for thisproject to cost

Formula None Planned % Complete x BAC EV = Actual % Complete x BAC Sum of costs for given period CV = EV AC SV = EV - PV CPI= EV / AC CPIc = EVc / ACc SPI = EV / PV

PV EV AC CV SV CPI CPIc SPI

How much work should have been completed How much work was actually completed during a give period of time The money spent during a given period Difference between what was expected to be spent and what was spend Difference between where we planned to be and where we are in the schedule The rate at which project performance is meeting cost expectations Rate at which project performance is meeting cost expectation from start to a point in time Rate at which project performance is meeting schedule expectations

EAC Projecting total cost at completion basedon performance up to a point in time

EAC = BAC / CPIc BAC / CPI

Estimate To Completion Variance at Completion

ETC How much will be spent on the projectbased on past performance

or AC + (BAC EV) / CPI ETC = EAC AC VAC = BAC EAC

VAC Difference between what was budgetedand what was spent

Quality Management (Ch 8) Quality is the degree to which a set of inherent characteristics fulfill requirements. Quality is the responsibility of the project manager, and is proactive prevention over inspection. Based on several leading ideas including TQM, ISO-9000, Six Sigma, Demings Plan-Do-Check-Act cycle. Terms and Philosophies: TQM focuses on the underlying processes. Continuous Improvement aka Kaizen focus on constant process improvement. JIT just-in-time zero inventory management. ISO 9000 part of international standards org. document what you do, do what you document Standard Deviation and Six Sigma 68.25% of data points are within 1 standard deviation ( ) from the mean 95.46% within 2 99.73% within 3 99.99966% within 6 Special vs. Common Causes special causes are generally preventable by process improvement.

Quality PG2 Planning: Quality Planning Project Team identifies what the quality specs are and how they will be met. Quality must be planned in from the start. Inputs Enterprise Environmental Factors Organizational Process Assets Project Scope Statement Project Management Plan

Tools Cost-Benefit Analysis benefits of quality activities must outweigh costs Benchmarking comparing quality standards to other projects Design of Experiments (DOE) uses data analysis to determine optimal conditions. Cost of Quality (COQ) costs that will be realized in order to achieve quality. Cost of items that do not conform are cost of poor quality or COpQ Outputs Quality Management Plan Quality Metrics Quality Checklists to ensure all steps were performed in sequence. Process Improvement Plan Quality Baseline original quality plan plus approved changes. Quality PG3 Executing: Perform Quality Assurance Quality Assurance is ongoing process improvement throughout the execution phase. Inputs Quality Management Plan Quality Metrics Process Improvement Plan Work Performance Information Approved Change Requests Quality Control Measurements Implemented Change Requests, Corrective Actions, Defect Repair, Preventive Actions Tools Quality Planning Tools Quality Audits the key tool in Perform Quality Assurance. Process Analysis Outputs Requested Changes Recommended Corrective Actions Organizational Process Asset Updates PMP Updates Quality PG4 Monitor and Control: Perform Quality Control Quality Control looks at specific results to determine if they conform to quality standards.

Statistical Sampling is typically used. Inspection is the primary tool.

Inputs Quality Mgmt Plan Quality Metrics Quality Checklists Organizational Process Assets Updates Work Performance Information Approved Change Requests Deliverables the primary input to the Quality Control process Tools Cause / Effect (Ishikawa or fishbone) diagrams Control Charts statistical process control. Mean, upper and lower limits are set. Rule of Seven seven or more consecutive data points on one side of mean should be investigated. Flowcharting Histogram (column / bar chart) Pareto Chart (Paretos Law 80/20 rule) Run Chart analyzes trends in quality over time Scatter diagrams used for spotting trends Statistical Sampling Inspection Defect Repair Review Outputs Quality Control Measurements Validated Defect Repair Quality Baseline Updates Validated Deliverables Human Resource Management (Ch 9) Leadership, motivation, and conflict resolution are all required project management skills. The core of human resource management is to define a role for everyone on the project, and define the responsibilities for each of these roles. Powers of a PM: Reward, Expert (good) Penalty (bad) Leadership styles: direct, facilitate, coach, support, autocrat, consult, consensus 4 stages of team formation: forming, storming, norming, performing Maslows hierarchy: physiological, safety, social, esteem, self actualization Herzbergs motivation-hygiene theory: Leading to Dissatisfaction Leading to Satisfaction Company policy Achievement Supervision Recognition

Relationship w/Boss Work conditions Salary Relationship w/Peers

Work Itself Responsibility Advancement Growth

HR PG2 Planning: Human Resource Planning HR Planning begins early in the project and may be performed iteratively. Inputs Enterprise Environmental Factors Organizational Process Assets Project Management Plan Tools Organizational Charts and Position Descriptions Three primary formats for organizational charting: Hierarchical Matrix - Responsibility Assignment Matrix RAM RACI responsible, accountable, consult, input Text Networking Organizational Theory groups behave differently than individuals. Outputs Roles and Responsibilities Project Org Charts Staffing Management Plan how and when the project will be staffed.

HR PG 3 Executing: Acquire Project Team Gets the right people working on the project. Typically performed throughout the project as long as the project is adding new staff. Inputs Enterprise Environmental Factors Organizational Process Assets Roles and Responsibilities position descriptions Project Org Charts Staffing Management Plan details when and how long resources will be needed

Tools Pre-Assignments Negotiation Acquisition looking outside the organization for resources that cannot be provided internally Virtual Teams Outputs Project Staff Assignments the primary output. Resource Availability Staffing Management Plan HR PG3 Executing: Develop Project Team !!This is the most important process in Human Resource Management and is performed throughout the project, but most effective when done early. Inputs Project Staff Assignments Staffing Management Plan Resource Availability Tools General Management Skills early project phases require more directing/leading; then coaching, then facilitating, then supporting Training any acquisition of skills that increases the ability to perform Team-Building Activities Ground Rules Co-Location war room Recognition and Rewards focus on win-win Outputs Team Performance Assessment how is the team doing? HR PG4 Monitor and Control: Manage Project Team Inputs Organizational Process Assets Project Staff Assignments Roles and Responsibilities Project Org Charts Staffing Management Plan Tools

Observation and Conversation informal, used to monitor morale and identify problems. Project Performance Appraisals Conflict Management focus on constructive conflict management. Most conflict often occurs between project managers and functional managers over schedules, priorities, resources Confront (problem solving) win/win Compromise each side gives up something lose/lose Withdrawal avoid finding solution Smoothing emphasizes agreement Forcing push a decision Issue Log Outputs Requested Changes Recommended Corrective Action Recommended Preventive Action Org. Process Asset Updates Input to Org. Performance Appraisals Lessons Learned Documentation Project Mgmt Plan Updates Communications Management (Ch 10) The project managers most important skill set is that of communication. CM PG2 Planning: Communications Planning !! All about the Communications Management Plan sole output of this process Inputs Enterprise Environmental Factors Organizational Process Assets Project Mgmt Plan Project Scope Statement Tools Communications Requirements Analysis who needs what and how often Communications Technology should be tailored to the need Output Communications Management Plan Who should receive project communications What communications should they receive Who should send the communications

How often the communications will be sent How often it will be updated Definitions common understanding of terms

CM PG3 Executing: Information Distribution Inputs Communications Management Plan Tools Communication Skills Information Gathering and Retrieval Information Distribution Methods Lessons Learned Process Outputs Organizational Process Assets Updates Requested Changes CM PG4 Monitor and Control: Performance Reporting How is the project doing against the plan? Inputs Work Performance Information Performance Measurements cost variance, schedule variance, CPI, SPI Forecasted Completion EAC or ETC Quality Control Measurements Project Mgmt Plan Approved Change Requests Deliverables Tools Information Presentation Tools graphical Performance Information Gathering and Compilation Status Review Meetings Time and Cost Reporting Systems Outputs Performance Reports Forecasts Requested Changes

Recommended Corrective Actions Org. Process Assets Updates CM PG4 Monitor and Control: Manage Stakeholders Manage Stakeholders works to identify and resolve stakeholder concerns in a timely manner. Inputs Communications Management Plan Organizational Process Assets Tools Communications Methods Face-to-Face are best where stakeholder issues are concerned Effective Meetings Kickoff Meeting Issues Log Outputs Resolved Issues Organizational Process Assets Updates Approved Change Requests and Corrective Actions Project Mgmt. Plan Updates

Risk Management (Ch. 11) Project Manager is in control and proactively managing events to avoid as many problems as possible. Risk is related to an uncertain event. It may affect the project for good (opportunities) or bad (threats.) Six Risk Management processes across two process groups with primary output: Planning: Risk Management Planning Risk Mgmt Plan Risk Identification Risk Register Qualitative Risk Analysis Risk Register Updates Quantitative Risk Analysis Risk Register Updates Risk Response Planning - Risk Register Updates Monitor and Control: Risk Monitoring and Control Risk Register Updates, Requested Changes, Recommended Corrective Actions, Recommended Preventive Actions RM PG 2 Planning: Risk Management Planning

Creates the Risk Management Plan. Takes place very early since it can influence decisions on scope, time, cost, quality, procurement Inputs: Enterprise Environmental Factors Organizational Process Assets Project Scope Statement Project Management Plan Tools: Planning Meetings and Analysis meet with all appropriate stakeholders Outputs: Risk Management Plan y roadmap to the remaining risk management processes y acceptable level of risk y how risk will be managed y who will be responsible y how will risks be categorized y Risk Breakdown Structure RBS breakdown categories (technical, project management, organizational, external) of risks to be evaluated RM PG2 Planning: Risk Identification Inputs: Enterprise Environmental Factors Organizational Process Assets Project Scope Statement Project Management Plan Risk Management Plan Tools: Documentation Review Information Gathering Techniques y Brainstorming y Delphi Technique (remote experts) y Interviewing y Root Cause Analysis y SWOT strengths, weaknesses, opportunities, threats Checklist Analysis using RBS Assumption Analysis Diagramming Techniques y Ishikawa (fishbone, cause/effect) y Influence Diagrams y Flow charts graphical representations of complex process flow

Outputs: Risk Register all identified risks, reactions, root causes, categories RM PG2 Planning: Qualitative Risk Analysis Qualitative qualifies by defining probability and impact of identified risks. Inputs: Risk Management Plan Risk Register Organizational Process Assets Project Scope Statement Tools: Risk Probability and Impact Assessment PIM Probability and Impact Matrix Risk Urgency Assessment require immediate attention Risk Data Quality Analysis Risk Categorization Outputs: Risk Register Updates prioritized, categorized, trends, watch-list (non critical risks to be monitored) RM PG2 Planning: Quantitative Risk Analysis Quantitative assigns a projected value to identified risks. Inputs: Risk Management Plan Risk Register Organizational Process Assets Project Scope Statement Project Management Plan Tools: Data Gathering and Interviewing y Interviewing y Expert Judgment Quantitative Risk Analysis and Modeling Techniques y Sensitivity Analysis y Tornado diagrams ranked bar graph that forms a tornado shape. y Expected Monetary Value Analysis y Decision Tree Analysis y Modeling / Simulations Monte Carlo Analysis

Outputs: Risk Register Updates Prioritized List of Quantified Risks RM PG2 Planning: Risk Response Planning Creating a detailed, actionable plan for managing identified risks Inputs: Risk Management Plan Risk Register Tools: Strategies for Negative Risks or Threats y Avoid y Transfer (insurance, contractual agreements) y Mitigate minimize, make it less Strategies for Positive Risks or Opportunities y Exploit taking advantage of positive risk y Share work with another party y Enhance use root cause to increase likelihood Strategies for both Positive and Negative y Acceptance may be the best strategy if cost or impact of other strategies is too great Outputs: Risk Register Updates Project Mgmt Plan Updates Risk-related Contractual Agreements RM PG4 - Monitor and Control: Risk Monitoring and Control Inputs: Risk Management Plan Risk Register Approved Change Requests Work Performance Information to compare plan to results Performance Reports focus on how work was done, not what was done Tools: Risk Reassessment as often as needed Risk Audits focused on overall risk management Variance and Trend Analysis y Variance difference between planned and executed y Trend how performance is trending Technical Performance Measurement

Reserve (contingency) Analysis Status Meetings Outputs: Risk Register Updates Requested Changes Recommended Corrective Actions anything done to bring future results in line with the plan. Recommended Preventive Actions ensuring a problem never occurs Organizational Process Assets Updates Project Management Plan Updates

Procurement Management (Ch. 12) The formalization of the processes performed to obtain goods, services, or scope from outside of the organization.