Module 3 (Part A) – Predictive, Plan Based Methodologies

CAPM® Exam Preparation Course

Module 3 (Part A)
1

Course Agenda

Module Course
1 Introduction to CAPM Certification
2 Project Management Fundamentals and Concepts
3 Predictive, Plan Based Methodologies
4 Agile Frameworks/Methodologies
5 Business Analysis Frameworks
Summary

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Agenda

Topic
1 The Project Management Process Groups
2 Project Initiation
3 Project Planning
4 Project Execution
5 Project Monitoring & Control
6 Performing Integrated Change Control
7 Closing the Project or Phase
Summary

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Project Management Process Groups

Monitor
Initiate Plan Execute Close
& Control

Section 1
4

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Project Management Process Groups

Initiating
 The project management
framework can be described by
these 5 process groups
Planning

 Each of these process groups

Executing consists of project management
processes and activities that
Monitoring & contribute to the successful
Controlling management of the project

Closing

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What is a Process?
 Produces an output or product
 Linked to the other processes by the output it produces
 Consists of 3 elements:

Input Tools & Output

Techniques

 An input (a document or action)

 Tools and techniques (sub-processes that create the required output)
 An output (a document or tangible task)
 The output of one process becomes the input of the next process

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Initiating Processes
 Recognize the project should be done
 Determine what the project should accomplish
 Define the expectations of the stakeholders
 Identify the assumptions and constraints
 Define the criteria for project success
 Create the Project Charter

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Planning Processes
 Establish tasks and activities to achieve the project goal
 Sequence activities in the most effective manner
 Establish a realistic schedule and budget
 Assign resources to activities
 Create the Project Management Plan and obtain approval
from stakeholders

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Executing Processes
 Implement the Project Management Plan
 Manage the project team
 Report on progress
 Resolve problems during the project

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Monitoring and Controlling Processes

 Monitor the Project Management Plan
 See if there are any deviations
 Take corrective actions to bring the project back on track
 Receive and evaluate proposals for changes
 Change the budget and schedule as required
 Modify the project plan and obtain required approvals

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Closing Processes
 Review the processes used in the project
 Measure achievements
 Meet with team to review what can be learned
 Project report
 Disband team

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Project Management Process Groups

Figure 2.1. Project Boundaries

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) Sixth Edition ©2017 Project Management Institute Inc. - All rights reserved.

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Project Management Process Groups

Figure 1.5. Example of Process Groups Interaction within a Project or Phase

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) Sixth Edition ©2017 Project Management Institute Inc. - All rights reserved.

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Project Management Processes

 Are organized by Knowledge
Areas
10 Knowledge Areas
 A complete set of concepts,  Project Integration Management
terms, and activities that  Project Scope Management
make up a professional field,  Project Schedule Management
project management field,  Project Cost Management
or area of specialization  Project Quality Management
 Project Resource Management
 They describe project  Project Communications Management
 Project Risk Management
management knowledge
 Project Procurement Management
and practices in the context  Project Stakeholder Management
of processes used to
manage the different
aspects of the project
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Project Management Knowledge Areas

Integration Management
 Processes used to coordinate the different elements and
processes of the project
Scope Management
 Processes used to define what work is to be done and the project
deliverables, and to manage changes in the work
Schedule Management
 Processes used to ensure the project is completed within the
required schedule and to manage changes to the schedule
Cost Management
 Processes used to ensure the project is completed within the
required budget and to manage changes to the budget

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Project Management Knowledge Areas

Quality Management
 Processes used to ensure the project meets the standards of
acceptance and satisfies the needs for which the project was
undertaken
Resource Management
 Processes required to identify, acquire, and manage the resources
needed for the project
Communications Management
 Processes that are required to ensure timely and appropriate
planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and the ultimate disposition of
project information

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Project Management Knowledge Areas

Risk Management
 Processes used to identify, quantify, analyze, and respond to
project risk events
Procurement Management
 Processes used to acquire goods and services
Stakeholder Management
 Processes required to identify the people, groups or organizations
that could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and to
develop appropriate management strategies for effectively
engaging stakeholders in project decisions and execution

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Project Management Processes

vs Process Groups
 The project management processes are
organized by the five process groups
 Initiating processes
 Planning processes
 Execution processes
 Monitoring & controlling processes
 Closing Processes

Table 1-4. Project Process Groups and Project

Management Processes
* Process Groups: A Practice Guide, Project Management Institute, Inc., 2023

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Project Initiation –
Developing the Project Charter

Monitor
Initiate Plan Execute Close
& Control

Section 2
19

Project Initiation
 Determine need for project
 Establish goals of the project
 Develop Statement of Work
 Create initial project requirements
 Determine feasibility
 Define initial project scope
 Consider risks and constraints
 Create the project charter

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Determining the Need for the Project

Business Case
 Determines from a business perspective whether or not the project is
worth the required investment
 Includes the business need and cost-benefit analysis to justify the project
 Provides a basis for project evaluation and selection

Projects are created as a result of:

 Market demand
 Organizational need
 Customer request
 Technological advance
 Legal requirement
 Ecological impacts
 Social need © 1999-2021 National Project Management Inc 21

Developing the Project Goals

Goals must:
 Make sense – there must be some advantage to the stakeholders of
doing the project
 Be affordable
 Be clear – they should define what the project is to achieve and
what the stakeholders gain from it
 Be evaluated to make sure it is a good project (business case)
 Be agreed on with the project team

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Module 3 (Part A) – Predictive, Plan Based Methodologies

The Statement of Work

 Provided by the Sponsor
 Narrative description of products or services to be delivered
by the project
 Considers
 Business need (reason for project)
 Product scope description (characteristics of the project
deliverables)
 Strategic plan (identifies how project aligns with the
organization’s strategic plan)

STATEMENT
OF
WORK

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The Initial Project Requirements

 Provided by the Sponsor
 Document the requirements which the project must achieve
 Provides the required deliverables
 Includes a standard for measuring project success
 Used to provide the basis for the project manager to
establish the scope of work
 Must be clear and understood
 Provides expectations from the customer’s perspective

PROJECT
REQUIREMENTS

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The Preliminary Scope of Work

Defines size and extent of the project and the work
required to complete it.

The scope can include:

 How much is to be achieved
 The length of the project schedule
 Obligation of resources:
 Time PRELIMINARY
PROJECT
 Money SCOPE
 People
 Supplies
 Equipment
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Project Requirements vs Project Scope

What is the difference between the

Project Requirements
and the Project Scope

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Project Initiation
Also need to consider
 Project risks
 Project constraints
 Organizational influences – Organizational Process Assets
 External influences – External Environmental Factors

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Project Risks
 The Project Manager must evaluate the project risks when developing
the project

 Inherent to projects, could include:

 Business risk
 Technical risk
 Political risk
 Legal risks
 Project risk
 Environmental risk
 Reputational risk
 If not mitigated, could derail your project

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Project Constraints
 What limitations must you work within:
 The budget, schedule, scope
 Availability of people and equipment
 Compliance issues (e.g. regulations)
 Environmental
 Other customer or stakeholder constraints

 Need to assess these constraints in Project Initiation

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Organizational Process Assets

 Organizational process assets that can influence the
development of the project
 Organizational standard policies, processes, and
procedures
 Portfolio, program and project governance framework
 Monitoring and reporting methods
 Templates (e.g. for Project Charter)
 Historical information, lessons learned repository

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Enterprise Environmental Factors

 Enterprise environmental factors that can influence the
development of the project
 Government/industry standards
 Legal or regulatory requirements and/or constraints
 Marketplace conditions
 Organizational culture and political climate
 Organizational governance framework
 Stakeholders’ expectations and risk thresholds

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The Project Charter

After the project goals, requirements, initial scope, constraints and risks
are established, need to gain approval from the Project Sponsor and
decide how you are going to work with each other

The Project Charter is a written agreement between the

Project Sponsor and the Project Manager, which outlines:
Project
 What is to be done
Charter
 When it is to be done
 How much it is going to cost
 The respective roles and responsibilities
 The authority given to the Project Manager to manage the project
resources
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Why is the Project Charter Needed?

 Establishes client expectations
 Sets basis to measure PM performance
 Provides PM authority to manage resources
 Documents the summary requirements, initial
scope of work, and project constraints
 Defines how Project Manager and Project
Sponsor work together

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Elements of the Project Charter

 Project purpose
 Measurable project objectives and success criteria
 High-level requirements
 Project description, boundaries and key deliverables
 Overall project risk
 Summary milestone schedule
 Preapproved financial resources
 Key stakeholder list
 Project approval requirements
 Project exit criteria Project
 Assigned project manager, responsibility and Charter
authority
 Name and authority of the sponsor
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Module 3 (Part A) – Predictive, Plan Based Methodologies

Project Planning –
Developing the Project Plan

Monitor
Initiate Plan Execute Close
& Control

Section 3
35

Project Planning
 In the initiation phase, the project goals, initial requirements and initial
scope were established and you set up your core project team

 In the planning phase, you define the detailed project requirements,

create the full project scope, break the work into smaller, manageable
tasks and create the schedule and budget. You also create plans for
managing risk, quality, communication, resources, procurement and
stakeholders

 These plans are then amalgamated to

establish the Project Management Plan,
which is the baseline used to manage and control
the project for its duration

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Project Planning
Project planning process
 The detailed project requirements
 The Scope Statement Project Management Plan
 The WBS • Requirements management plan
• Scope management plan
 The schedule • Schedule management plan
 The budget • Cost management plan
• Quality management plan
 Project team & other resources planning
• Resource management plan
 Strategy for managing risks • Communications management plan
 Strategy for managing communications • Risk management plan
• Procurement management plan
 Quality assurance & control planning • Stakeholder engagement plan
 Plan for managing procurements
 Plan for managing stakeholders
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Scope Planning

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Scope Management Plan

What is scope?
 All the processes and work involved in creating the
products or services of the project Managing the Scope
is a critical role of the
 The totality of all the products and services to be Project Manager
provided by a project Scope changes cause:
 Scope creep
 Schedule delays
Scope management:  Cost increases
 Differing expectations
 Ensures that the project includes all the work amongst stakeholders
required and only the work required to complete  Impacts to project
the project quality or performance

 Its primary concern is defining and controlling

what is and what is not part of the project

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Statement of Requirements (SOR)

 A document that provides the detailed client requirements
 Prepared by the customer or Project Sponsor
 Provides basis for the Project Manager to establish the scope of
work

An important tool the Project Manager can use to document the

requirements from the Project Sponsor

SOR

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Scope Statement
 A tool the Project Manager can use to define and obtain agreement on scope
 Document which describes what is to be done to complete the project
 Provides a basis for more detailed planning
 Prepared by the Project Manager
 Based on meeting the SOR
Scope
Statement
Why is the Scope Statement needed?
 Documents what tasks are included
 Establishes a common understanding among stakeholders of tasks to be
performed, documents what tasks are included
 Establishes a baseline for project planning, monitoring and control
 Provides a vehicle for sign-off from the customer and other stakeholders on
the project scope
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Scope Statement
An example of the Scope Statement
 Provides inclusions and exclusions

“ The project scope of work includes the planning, design and

construction of a new office for the commercial lending unit, meeting
the Statement of Requirements (dated May 2021) provided by the
project leader. The scope does not include supply and installation of
workstations, furniture, signage and moving services. ”

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Work Breakdown Structure (WBS)

 Projects cannot be managed at the SOW level
 SOW is broken down into smaller work packages to which
each is assigned: Total
Project

 Specific scope
Task Task Task Task Task

 Schedule
 Budget Sub-task Sub-task Sub-task Sub-task

 Responsibility Work
Package
Work
Package
Work
Package
Work
Package
Work
Package
Work
Package

 Project is managed at the WBS level

 WBS provides a framework for integrating the many smaller
work packages to meet the project objectives
 Basis for project scheduling
 Basis for project budgeting
 Communication tool
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Work Breakdown Structure

Total
Project

Level 1 Task Task Task Task Task

Level 2 Sub-task Sub-task Sub-task Sub-task

Work Work Work Work Work Work

Level 3 Package Package Package Package Package Package

Work Package - defines the

lowest level of the WBS for which
cost and duration are estimated and
managed.
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Schedule Planning

45

Schedule Management Plan

What is a Schedule?
 A representation of project activities and their relationships
 Includes planned dates, durations, milestones and resources

Schedule Management:
 Ensures that all and only the activities required to complete the
project are part of the project
 The included processes overlap and interact continuously

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Project Schedule
 Places project activities in a logical order and time sequence
 Based on WBS activities
 Defines time constraints of activities including:
 Duration of tasks
 Start/stop dates
 Relationships between tasks
'01 Mar 04 '01 Mar 11 '01 Mar 18
ID Task Name Duration Start Finish F S S M T W T F S S M T W T F S S M T W T F
1 A 4 days Fri 01/03/02 Wed 01/03/07

Why is it needed?
2 B 4 days Thu 01/03/08 Tue 01/03/13
3 C 3 days Wed 01/03/14 Fri 01/03/16
4 D 1 day Mon 01/03/19 Mon 01/03/19
5 E 4 days Mon 01/03/19 Thu 01/03/22

6 F 3 days Wed 01/03/14 Fri 01/03/16

 Management tool
7 G 3 days Mon 01/03/19 Wed 01/03/21

 Provides a timeframe to implement project tasks

 Provides a baseline to monitor and control project activities
 Establishes the project completion date

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Types of Scheduling Methods

 Bar Chart
 Gantt Chart
 Schedule Network Diagram
 Project management software

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Types of Scheduling Methods

Bar Chart
 Shows activities/events vs. time/cost
 Shows planned vs. actual schedule
 Simplest scheduling method
 Orderly sequence of activities
 Shows progression and time consumed
 Does not show
interdependencies

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Types of Scheduling Methods

Gantt Chart
 Simple extension of the Bar Chart
 Shows activities/events vs. time/cost
 Shows planned vs. actual schedule
 Shows progression and time
consumed
 Shows interdependencies '01 Mar 04 '01 Mar 11 '01 Mar 18
ID Task Name Duration Start Finish F S S M T W T F S S M T W T F S S M T W T F
1 A 4 days Fri 01/03/02 Wed 01/03/07

2 B 4 days Thu 01/03/08 Tue 01/03/13

3 C 3 days Wed 01/03/14 Fri 01/03/16

4 D 1 day Mon 01/03/19 Mon 01/03/19

5 E 4 days Mon 01/03/19 Thu 01/03/22

6 F 3 days Wed 01/03/14 Fri 01/03/16

7 G 3 days Mon 01/03/19 Wed 01/03/21

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Types of Scheduling Methods

Schedule Network Diagram
 Uses Precedence Diagraming
Technique
 Developed at Dupont to improve
project efficiency in time and cost
 Deterministic activity time
estimates
 Communicates the project status in
terms of activity precedence
relationships

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Types of Scheduling Methods

Project Scheduling Software
 Shows activities vs. time/cost
 Shows planned vs. actual schedule
 Shows progression and time
consumed
 Shows interdependencies
 Example: MS Project

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Scheduling Terms
 Activity – specific task which requires time
 Network – a combination of project activities Path Duration
A-B-C-D-I 22 days
 Path – a series of activities between events A-E-F-G-I 19 days
 Critical path – path of activities with longest A-E-I 10 days
duration, any activity delay on
the critical path delays
completion of the project Critical Path

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Critical Path
 Estimates the minimum project duration and
determines the amount of schedule flexibility
on the logical network paths within the
schedule model.

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Scheduling Terms
Fast Tracking Crashing
 Compressing the project  Compressing the project
schedule by doing schedule by throwing more
different activities money or resources at it
concurrently that would  This should be done on
Faster!
normally be critical path activities
done in sequence
 Typically increases project
costs
 Example:
 Constructing the  Example:
foundation
 Doubling the labour to
before the design
complete a task faster
is completed
on a structure
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Managing Risk In Schedules

 Unallocated activity that provides for risk allowance
 Provides contingency to account for:
 Uncertainties
 Validity of assumptions
 Errors in activity durations Unallocated
Activity
B C FLOAT

E F H
A

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Steps to Creating the Schedule

 Define Statement of Work
 Prepare the WBS
 Create list of activities to be included in schedule
from the WBS
 Order and establish relationships of activities
 Estimate start/stop dates for activities
 Produce schedule
 Refine as necessary
 Monitor schedule
 Revise as necessary

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Creating an Activity List Total

Project

 A comprehensive list of schedule Task Task Task Task Task

activities that are to be performed

as part of the project Sub-task Sub-task Sub-task Sub-task

 Derived from the WBS Work Work Work Work Work Work

 Created by breaking down the

Package Package Package Package Package Package

WBS work packages into activities

that provide a basis for estimating, Decompose WBS
scheduling, executing, monitoring,
and controlling the project work Activity
List
Activity 1
Activity 2
Schedule Activity 3
Activities Activity 4

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Sequencing Activities
 Identifying and documenting logical relationships
between schedule activities
 Accurately sequencing project activities will
contribute to a realistic and achievable schedule

Predecessor Successor

Activity 1 Activity 2 Activity 3

 Typically used with scheduling software

(e.g., MS Project)

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Adjusting the Project Schedule

 If the first iteration of the schedule
doesn’t meet the schedule constraints
what actions can you take to create a
schedule that meets requirements
 What is the impact of these actions

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Cost Planning

61

Cost Management Plan

What is a Cost Management?
 Includes the processes required to ensure the project is completed
within the approved budget
 Processes required to maintain financial control of the project

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Creating the Budget

Involves:
 Establishing what resources are required for each project activity
 Estimating cost of the resources required for each activity
 Based on WBS
 Estimating total project cost
 Establishing the project cash flow

Why is it needed?
 Management tool
 Provides a framework to allocate resources to project tasks
 Provides a baseline to monitor and control project activities
 Establishes the total project budget and cashflow requirements

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Steps to Creating the Budget

 Define Statement of Work
 Prepare the WBS
 Establish what activities are required to complete the project
 Establish what resources are required to complete each activity
 Estimate cost of each activity
 Roll up activity costs to establish project budget
 Include risk allowance
 Refine as necessary
 Integrate the activity costs with the activity schedule, establish a
project cashflow
 Monitor and control costs

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Estimating Project Costs

Different classes of estimates
 Class “D” within 25% accuracy Class D
Project Cost
Class B
 Class “C” within 15% accuracy (+/- 25%) (+/- 10%)

 Class “B” within 10% accuracy

Dollars
 Class “A” within 5% accuracy
Class C Class A
(+/- 15%) (+/- 5%)

Other types of estimates Time

 Rough Order of Magnitude (ROM) - Done at early stage of the project, least accurate,
range of accuracy –25 to + 75 %, typically used for Project Charter
 Budgetary estimate - Used to establish project funding needs,
range of accuracy –10 to + 25 %
 Definitive estimate - Based on well defined scope of work,
range of accuracy –5 to + 10%
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Estimating Project Costs

Estimating techniques
 Analogous Estimating – cost based on similar project
 Bottom-Up Estimating – most accurate, based on estimating WBS work
package costs
 Parametric Estimating – based on unit price data ($/m2)
 Ratio Estimating – based on estimated ratio factor

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Estimating Activity Costs

 Establish what resources are required to complete each activity
 Establish unit rate of each resource
 Establish # of units required of each resource
 Cost of an activity is sum of the cost for each resource required to
complete the activity

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Creating the Budget

 Aggregate all the
project activity
estimates
 Include contingency
for risk
 Determine the total
budget requirements

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Module 3 (Part A) – Predictive, Plan Based Methodologies

Summary

Readings

READ PMI Process Groups: A Practice Guide

Chapters 4, 5.1-5.13

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