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 Table of Contents

Introduction 5
Project Management Introductory Concepts 8
Management Framework and Processes 9
Project Integration Management 47
Project Management Prof. Exam Content Outline 55
Initiating the Project 57
Planning the Project 104
Executing the Project 283
Monitoring and Controlling the Project 361
Closing the Project 428
All Domains: Cross-Cutting Knowledge and Skills 470
Professional and Social Responsibilities 481

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This course provides the participant with the knowledge and
information necessary to understand the structure of the Project
Management Professional (PMP) exam, based on the current exam
format.

This study guide presents both the PMP exam content outline along
with key concepts derived from the Project Management Body of
Knowledge Fifth Edition.

The goal of this course is to prepare the participant to take the

exam portion of the PMP certification.

Recommended but not included with the course is the PMI book: A
Guide To The Project Management Body of Knowledge 5th Edition,
which may be purchased at: www.pmi.org or any online bookseller
such as Amazon.com.

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1. Read Project Management Introductory Concepts, Initiating the
Project, Cross-Cutting Skills, and Professional and Social
Responsibility from this guide, along with the following PMBOK
Chapters/sections: Chapter 1, Chapter 2, Chapter 3, Sections
4.1, 13.1. Complete the online web-based test on Initiating.

2. Read Planning the Project from this guide, along with the
following PMBOK Sections: 4.2, 5.1 – 5.4, 6.1 – 6.6, 7.1 -7.3,
8.1, 9.1 10.1, 11.1 - 11.5, 12.1, 13.2. Complete the online web-
based tests on Planning.

3. Read Executing the Project from this guide, along with the
following PMBOK Sections: 4.3, 8.2, 9.2 – 9.4, 10.2, 12.2, 13.3.
Complete the online web-based tests on Executing.

4. Read Monitoring and Controlling the Project from this guide,

along with the following PMBOK Sections: 4.4, 4.5, 5.5, 5.6, 6.7,
7.4, 8.3, 10.3, 11.6 12.3, 13.4. Complete the online web-based
tests on Monitoring and Controlling.

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5. Read Closing the Project from this guide, along with the
following PMBOK Sections: 4.6, 12.4 Complete the online web-
based test on Closing.

6. Complete comprehensive practice tests 1 through 5.

7. Continue taking the practice tests until consistently achieving

scores above 80% on all tests.

8. Schedule and take the PMI PMP Exam through www.pmi.org

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A PROJECT by definition is a temporary undertaking to create a unique
product, service, or result. Projects help the organization achieve its goals.
Projects organize activities that are not addressed through usual day-to-day
operations.

Characteristically, a project:

 is temporary
 creates unique products, services, or results
 provides progressive elaboration

Examples of projects include:

 creating a new product

 creating a new service
 constructing a building
 deploying a new business process
 buying a new information system

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Both projects and operations:

 have people perform them

 are constrained by limited resources
 are planned, executed, and controlled

Operations differ from projects because they:

 are ongoing and repetitive

 have objectives that are continuous
 adapt to new objectives so the work continues to sustain business

PROGRAMS are groups of projects managed in a coordinated way to obtain

greater benefits and control, which could not be achieved from managing the
projects separately. They are a combination of related projects.

PLANS are characterized and classified according to:

 their function or use to which they are applied

 their objectives, policies, procedures, methods and rules
 whether they are short-term or long-term in duration

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PORTFOLIOS are collections of projects or programs and their associated
operations that are grouped together to facilitate effective management, as well
as to meet strategic objectives.

PORTFOLIO MANAGEMENT:

 satisfies strategic business objectives

 aids in selecting appropriate projects and programs to maximize the
portfolio value.
 typically requires senior managers to be responsible for an
organization's portfolio management.

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PROJECT DELIVERABLES can be unique products, services, or results. They are
measurable, verifiable work products. Examples include: feasibility studies,
prototypes, design documents, or specifications.

 PRODUCTS are quantifiable. They can be an end item, or a

component item.
 SERVICES support production or distribution. For example, business
functions which support production are “services.”
 RESULTS can include new and beneficial processes.

THE PROJECT MANAGEMENT OFFICE (PMO) is referred to as a program

management office, project office, or program office.

 The PMO’s purpose is to aid in centralizing and managing a

program.
 The PMO manages the overall centralized risks, opportunities,
resources, enterprise-wide technology, etc for numerous projects.

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PROJECT SCOPE is defined as work to be done.

 The scope of the project is work that must be performed to deliver a

product, service, or result with specified features and functions. The
scope is defined when the team begins the planning phase.

 The project scope begins as a general idea with end goals and
objectives. It becomes more detailed as the team develops a
structured breakdown of the project, identifying specific details.

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Establishing the 'project start-date' is important since there are many elements
of the project that depend on it, including when the project should be complete.

Set the project start date after:

 the idea and budget are approved

 the project manager and team are assigned
 the project agreement or contract is signed
 those directly involved in the project have met (pre-project meetings)

Establish the project end-date according to:

 project acceptance
 a specified test or implementation period after tasks or work is
completed status changes (upon individual phase completions)
 assured satisfaction, or end of a production run.

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Project managers divide projects into phases to provide better management
control.

A PROJECT LIFE CYCLE is comprised of stages, from origin through to

completion.

The Project Life Cycle includes:

 the beginning and end of a project

 the transitional activities and ongoing operations links
 technical work in each phase of the project
 the deliverables generated
 who does the work
 how each phase is controlled and approved

The project life cycle may be just one phase of a product life cycle.

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SUBPROJECTS WITHIN PROJECTS have their own distinct life cycles.

Primary concerns during the entire Project Life Cycle are:

 performance
 time
 cost

Note: Performance and schedule concerns are typically more important than
cost during all stages, because they determine quality and timely completion.

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Most Project Life Cycles share common characteristics:
 Phases are typically sequential, defined by technical information.
 Cost and staffing levels are LOW at the beginning of the project,
PEAK during the intermediate phases, and DROP SHARPLY as the
project concludes

INTERMEDIATE PHASE
INITIAL FINAL
Cost
PHASE PHASE
&
Staffing
Level

TIME
Source: A Guide to the Project Management Body of Knowledge ( PMBOK® Guide), 5th Edition (2013, Project Management
Institute, all rights reserved)
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Projects typically begin slowly, pick up speed, and progress to a peak, and
then slow again until they reach completion. Some projects slow down so
significantly toward the end that they actually act as though they are
resisting completion. The primary reason for this is the numerous parts that
must all come together, or loose ends that must be tied up.

% PROJECT
COMPLETION

100% END PROJECT

SLOW FINISH

QUICK
SLOW PROGRESSION
START

0% PROJECT
BEGIN PROJECT TIME

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The pattern of the SLOW-RAPID-SLOW progression is typically due to
the changing levels of resources and project effort during the life cycle.
TIME DISTRIBUTION: Things move more slowly at the beginning. Progress
picks up during project activity and slows as activity ceases, final
evaluations are done, and the project becomes “complete.”

PEAK LEVEL OF EFFORT

LEVEL
OF
EFFORT

PROJECT
TIME

Conception Selection Planning, Scheduling, Evaluation &

Monitoring & Controlling Completion

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THE LEVEL OF UNCERTAINTY IS HIGHEST = RISK OF FAILURE IS HIGHEST, at
the beginning of the project. The ability of stakeholders to influence the
final product and final cost are highest at the beginning of the project.

HIGH Influence of Stakeholders

Stakeholder
Influence

Cost of Changes

LOW

PROJECT TIME
Source: A Guide to the Project Management Body of Knowledge ( PMBOK®
Guide), 5th Edition (2013, Project Management Institute, all rights reserved)

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All managers are fundamentally responsible for directing people, which includes:

 communicating
 motivating
 leading
 coaching
 administering procedures
 conflict resolution

All managers perform similar duties in directing resources for which they are
accountable. These duties are known as FUNCTIONAL MANAGEMENT, which
include the functional responsibilities of:

 planning
 organizing
 controlling
 monitoring

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THE FUNCTIONAL MANAGER is a specialist, and knows technical details about
the work and operations. Functional managers are direct, technical supervisors,
and use an analytical approach to problem-solve and make decisions.

THE PROJECT MANAGER is a generalist and a facilitator, has a varied background

of experience and knowledge, and uses a systems approach to make decisions,
coordinate, and integrate the elements of the project toward completion.

Successful project managers are also adept at conflict and stress management.

THE PROJECT MANAGER (PM) is primarily responsible for:

 project performance
 successful project completion

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Characteristically, a successful project manager is someone who:

 has a high degree of flexibility and adaptability to changes

 is a good communicator
 is persuasive
 can function in an ambiguous environment with ill-defined
relationships
 has the ability to manage and resolve conflict situations.

The project manager should be knowledgeable and skillful in:

 interpersonal skills
 general management as well as project management
 practical applications of knowledge, standards, and regulations
 the project environment

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The PM’s responsibility to the organization:

 competency
 accurate and timely communications
 alerting upper management and recommending alternative solutions
when technical, cost, or schedule objectives or contractual
obligations are not being met
 proper resource utilization

The PM’s responsibility to the project team:

 maintaining effective communication and interpersonal relationships

 providing adequate resources to accomplish the end result on time
and within budget
 making or enforcing necessary decisions to avoid delays and to be
sure project objectives are met

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The PM’s responsibility to the project:

 ensure the integrity of the project

 negotiate project contract work orders, change orders, and progress
payments with functional departments and managers
 meet profit objectives
 produce the specific end product or result within technical, cost, and
schedule specifications with the available resources

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PROJECT STAKEHOLDERS are anyone who positively or negatively impacts
the project, including the:

 Project Manager who is not required to be a technical expert, but

is responsible for managing the project and project deliverables.
 Customers who purchase the project’s product or service.
 Users who will directly use the end-product, end-service, or who
are affected by the end result.
 The Performing Organization which is the enterprise whose
employees are most directly involved in the work on the project.
 Sponsors who provide financial resources for the project.
 Project Team Members which comprise the group performing the
work.
 Others who include government agencies, media outlets,
individual citizens, owners, and sellers, etc.

Project Stakeholders are important because of the positive/negative impact

and influences they bring to the project.

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The organization is based on the process of “organizing.”

The principle of organizing:

 is every manager’s responsibility

 creates jobs and new positions
 is not a one-time process

The result of organizing = AN ORGANIZATIONAL STRUCTURE

AN ORGANIZATIONAL STRUCTURE = a system of activity-authority

relationships

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Characteristically, organizational structures are both:

 FORMAL: Having an officially established network and framework of

relationships between horizontal levels (divisions, departments) and
vertical levels (various management levels).

 INFORMAL: Having voluntary and unplanned networks of

interpersonal relationships, methods, and procedures, which do not
appear on the organizational chart.

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 Characteristics FORMAL INFORMAL
Type of System Static Dynamic

Objective Achieve overall objective Resist change; informed about

organizational events; protecting group
members
Leadership Authority & responsibility are assigned per Informal leaders emerge as spokespeople
position for the group
Authority Bureaucratic Entrepreneurial

Power & Control Directly related to job description & position on A function of clout, influence,
the organizational chart connections, impressions
Reward System Sharing or withholding benefits based on Reflected by status within the group
contribution and loyalty to the org
Status & Symbols Differentiation between employees on various Higher status individuals are recognized
levels
Communications Formal communications following the chain of The grapevine might reinforce or distract
command from formal communication
Organizational Norms Formal rules, policies, procedures enforced Desire to fit in with peers; conform

Discipline Enforced per formal policies & procedures Group acceptance and enforcement

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AN ORGANIZATION’S CULTURE provides the organization and its employees
with an identity. It facilitates a commitment:

 through rewards
 through a social system which provides standards and procedures
and social norms
 through influencing employee behavior and performance

The organization’s culture directly influences the project through:

 shared values, norms, beliefs, and expectations

 policies and procedures
 a view of authority relationships with subordinates
 work ethic and work hours

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BUREAUCRATIC CULTURES provide control in the pursuit of an organization‘s
goals. They are:

 formal structures
 more objective and impartial in hiring, firing and promoting
 focused on technical expertise rather than connections, social status
or family ties
 governed by detailed rules and regulations

ENTREPRENURIAL CULTURES:

 provide flexibility and personal latitude for employees to fully utilize

their strengths
 are designed to empower employees and encourage responsibility
 are informal, decentralized, have open communication and
relationships
 have a wide span of control and emphasize flexibility, adaptability,
and creativity

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WEAK CULTURES:

 inhibit success
 have difficulty prioritizing
 have weak or no leadership
 lack daily organizational routines

EXCESSIVELY STRONG CULTURES:

 can create barriers to change and improvement

 can create diversity, and cross-departmental and cross-
organizational cooperation.

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The performing organization’s structure and culture typically constrain
available resources, which in turn impact projects.

Major types of organizational structures include:

 FORMAL (Functional) ORGANIZATIONS which are
hierarchical organizations that group staff by specialty
(engineering, manufacturing, accounting, etc.). The project
manager assumes little or no authority, nor does the project
manager have or need resources available.

 PROJECTIZED ORGANIZATIONS which give the project

manager high to total authority, budget control, and access to
resources. Project management is a full-time role and the
project manager has an administrative staff.

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MATRIX ORGANIZATIONS which are a mix of functional and projectized
cultures. They distribute specified products or market functions to each
self-contained division or industry of the parent organization. The
functional manager controls the budget in weak organizations, and the
project manager controls the budget in strong organizations. The functional
manager and project manager share the responsibility within balanced
matrix organizations.

PMOs may be found in all types of organizations. However, they are more
predominantly found in PROJECTIZED and STRONG MATRIX types of
organizations that have more open environments and structures.

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 ORGANIZATIONAL MATRIX
STRUCTURE
FUNCTIONAL PROJECTIZED
PROJECT
WEAK BALANCED STRONG
CHARACTERISTIC

Project Manager’s Little or Limited Low to Moderate to High to Nearly

Authority None Moderate High Total

Resource Availability Little or Limited Low to Moderate to High to Nearly

None Moderate High Total
Project Budget Control Functional Functional Mixed Project Project
Manager Manager Manager Manager
Project Manager’s Role Part time Part time Full time Full time Full time

Project Management Part time Part time Full time Full time Full time
Administrative Staff
Source: A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th Edition (2013, Project Management Institute, all
rights reserved)

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PROJECT MANAGEMENT involves processes of:

 Initiating
 Planning
 Monitoring
 Controlling
 Closing

A Project Management system is a set of processes and control functions that

assists the project manager in managing a project to completion. These include
tools, techniques, technologies, and methodologies.

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The Project Management plan describes how the project management system
will be used in guiding the project to completion.

Why are Project Management plans important?

 Project Management plans help avoid waste of time, resources, and

capital
 Project Management plans provide a guide for implementation by
outlining what needs to happen, who needs to do it, and when and
how it needs to be done.

A PROCESS is intended to achieve a specified set of products, results or services

through execution of a series of interrelated actions.

PRODUCT-ORIENTED PROCESSES interact with, and overlap, project management

processes. Product-oriented processes create a specific end product.

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The Project Management process is a set of interrelated actions and activities
performed to achieve a specific goal or objective.
Project Management processes are:

 integrative
 integrated
 defined according to Process Group.
The purpose of the project management process is to:

 initiate
 plan
 execute
 monitor and control
 close the project

The project manager and team determine what processes from the process
groups will be implemented to achieve the desired objective. The concept for the
interaction among the project management processes is the PLAN-DO-CHECK-
ACT Cycle.

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The INITIATING PROCESS GROUP consists of the processes that facilitate the
formal authorization to begin a new project or project phase.

 Prior to beginning these activities, business needs or

requirements are documented.
 Stakeholder involvement is paramount, and helps ensure
success, shared ownership, and acceptance of deliverables.

The PLANNING PROCESS GROUP helps gather information from many

sources so the project management plan may be developed.

 Interactions are dependent upon the nature of the project.

 Feedback and refinement cannot go on indefinitely. Procedures
are set by the organization to determine an end point for the
planning effort.

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The EXECUTING PROCESS GROUP consists of processes used to complete the
work defined in the project management plan.

 People and other project resources are coordinated.

 Project management plan activities are integrated and
performed.
 The scope defined in the project scope statement is addressed,
and approved changes are implemented.

Note: Normal execution variances will cause some re-planning.

The MONITORING AND CONTROLLING PROCESS GROUP consists of the

processes performed to observe project execution, so potential problems
may be identified in a timely manner and corrective action taken to control
the execution of the project.
d

 Changes are controlled.

 Preventive action is recommended in anticipation of potential
problems.
 The entire project effort, as well as the project work itself, is
monitored and controlled.
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The CLOSING PROCESS GROUP consists of processes used to finalize all activities
and close the project or project phase.
Process Interactions:
 Project Management process groups are linked by inputs and
outputs.
 The output of one process typically becomes the input of another
process.
In accordance with the International Organization for Standardization (ISO):

 STANDARDS are documents established by consensus, approved by a

recognized body, aimed at achieving an optimum degree of order in
a given context.
 REGULATIONS are government-imposed, mandatory requirements
that specify products, processes, or services and their administration.
Standards vs. Regulations: All processes and their outputs must comply with
established rules, regulations, standards, and procedures.

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TO HELP ENSURE PROJECT SUCCESS, appropriate processes must be selected that
fit specific project objectives. A defined approach is adapted that is appropriate
for the project, and that complies with stakeholders' needs and expectations.
Project scope, resources, and risk are balanced to produce a quality product.

“GOOD PRACTICE” is a general agreement that the application of the project

management processes will enhance the chances of success over a wide range of
projects.

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Constraints must be balanced to effectively manage any project. A
constraint is a limitation or restriction on a given project management
factor. Common project management constraints are:

 Schedule (or Time): The project must be completed in the agreed upon
time period
 Budget: The project has limited funds
 Resources: The project has limited human, natural, or technological
resources
 Quality: The project must meet certain quality requirements
 Risk: The project must operate within acceptable levels of risk
 Scope: The project must operate within the project scope as defined

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Competing constraints within project management impact one another as
they change. For example:

 Limiting project resources can impact project completion and the project
schedule
 Limiting the project budget for resource spending can limit project
resources and also impact the project schedule
 Increasing quality requirements for project deliverables can impact the
project budget
 Altering the project scope can impact the project schedule and budget
 Decreasing the tolerance for risk can impact the project budget and
schedule

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Due to many and varied responsibilities, project managers synthesize (combine)
their tasks, referred to as MULTI-TASKING.

To do this and maintain a degree of efficiency, the project manager must know:

 “What needs to be done?

 ”When does it need to be done by?”
 “How will the necessary resources needed to do the job be obtained?”
 “Who will be the most concerned about each project phase as the
project progresses?”

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Project Integration
Management

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INTEGRATION is primarily concerned with effectively combining project
management process groups required to accomplish project objectives in
accordance with organizational procedures.

PROJECT INTEGRATION MANAGEMENT involves identifying, defining,

combining, unifying, and coordinating various processes and project
management activities. Integration management includes planning and
scheduling, using a variety of tools such as CPM and PERT. It coordinates and
integrates interrelated stages and project processes to ensure timely and cost
effective project completion. In terms of project management, integration
management is characterized by unification, consolidation, and articulation of
integrative actions for successful project completion.

The Major Project Integration Management processes include:

1) Developing the project charter

2) Developing the project management plan
3) Directing and managing project work
4) Monitoring and controlling project work
5) Performing integrated change control
6) Closing the project (or closing the project phase)

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Primary objectives project managers attempt to accomplish through the integration
process include: performance, effectiveness, and cost.

The project manager should focus on performance reliability and quality. When the
project system needs to be corrected or repaired, it must be done efficiently and cost
effectively.

VALUE ENGINEERING is used to examine cost tradeoffs, which is an important part

of the integration process. Value engineering is a controlled application of common
sense and technical knowledge, directed at finding and eliminating unnecessary costs
within a project. Value engineering is designed toward a specific project.

The project manager uses integration management in:

 decision-making
 determining and mitigating potential risk
 coordinating overlapping processes and activities

Although project management processes are typically presented as individual

components, in reality, they actually interact and overlap. The project manager must
consider all dynamic process interactions.

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Planning processes are integrated when:

 project changes become necessary

 revised scheduling/time and cost/budget management is required
 there exists a risk that a problem is not isolated, or will not be
permanently resolved, or that the project cannot be completed.

Unforeseen obstacles arise during a project. All project life cycle phases can
experience conflicts. In the early project life-cycle, project elements are adjusting
to each other, and issues for debate may include:

 project feasibility
 basic project planning
 objectives
 proposed scope

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Additional resources used to resolve the problem and manage the situation are
required if the project is to continue toward completion.

Technical and interface problems have generally been solved, bypassed, or

resolved and put in place by the Integration Close Out phase. In instances where
technology might be installed on a client's system, for example, technical conflicts
might exist but tend to be minimal.

Schedules create the most conflict, as projects have firm deadlines which must be
met. Schedule slips might have occurred in previous phases that caused project
completion to be off-target.

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Cost overruns are usually tolerated providing they are not high or excessive.

Personality conflicts are the second biggest reason for conflict during close out.

When conflict arises between team members that results in delays in the project,
the project manager should focus on objective criteria and options for mutual gain.

The project manager that tries to avoid conflict is inviting disaster. The project
manager must focus on objective criteria for the project, as well as listen to
information needed to find a win-win. They must seek the most practical
resolution, so project execution can move forward.

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Integrative activities the Project Management team performs include:

 scope analysis
 product requirement documentation
 measuring and monitoring the project and products
 analyzing project risks

Note that project deliverables may also need to be integrated with operations.
Integration may be required with the performing organization’s operations or
those of the customer’s organization. Integration can also encompass ensuring
the project is consistent with long term strategic planning for the organization.

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Project Integration Management includes the processes of:
 Developing the Project Charter which formally authorizes the project
or project phase.
 Developing the Project Management plan which documents all actions
necessary to coordinate subsidiary plans into a main project
management plan.
 Directing & managing Project Work which executes the work defined
in the project management plan necessary to achieve project
requirements.
 Monitoring & Controlling work, which monitors and controls
processes used to meet performance objectives defined in the project
management plan.
 Integrating change control & Project Closeout which includes
reviewing all change requests and changes to deliverables and
organizational processes, and finalizing all activities to close the
project or project phase.

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Content Outline

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This section presents an outline of the content found on the PMP Exam.

The exam is divided into areas of practice called domains. There are five
domains. Each domain contains several corresponding tasks.

In addition, knowledge and skills specific to each domain are given as well as
Cross-Cutting knowledge and skills which pertain to the entire project
management process.

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 Domain 1: Initiating the Project Tasks
Task 1 Perform project assessment
Task 2 Define high-level scope
Task 3 Perform key stakeholder analysis
Task 4 Identify high-level risk
Task 5 Develop project charter
Task 6 Obtain approval of project charter
Knowledge and skills related to this domain include the
following:
• Cost-benefit analysis
• Business case development
• Project selection criteria
• Stakeholder identification techniques
• Risk identification techniques
• Project charter components

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Initiating the project involves analytical and evaluation skills, which requires
interaction between the project manager and others involved in the project.

The following knowledge and skills are specific for this domain and are
necessary to possess in order to execute the tasks in Domain 1:

• Cost-benefit analysis
• Business case development
• Project selection criteria
• Stakeholder identification techniques
• Risk identification techniques
• Elements of a project charter

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In this task, a project manager assesses the project using available information
and meetings with sponsors, customers, and other subject matter experts.

The objective of this task is to evaluate the feasibility of the project deliverables
within the given assumptions and/or constraints.

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Cost benefit analysis is the use of numerical data in determining if a project is
worthwhile to complete. The most common unit of measuring the cost/benefit
of a project is money. Often, projects compete for limited resources and must
prove that the project is worth the time, resources, and money it will take to
accomplish the project goals.

One method of calculating a project’s profitability is calculating the Payback

Period. The payback period is the amount of time it will take to repay the initial
investment of a project. For example, a project with an initial investment of
$100,000 and an annual net cash flow of $25,000 will have a payback period of
4 years. This data could be compared to other projects and the one that has
the least payback period could be deemed the project to implement.

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Another method of calculating the benefit of a project is the Average Rate of
Return. This is determined by dividing the average annual profit by the average
investment.

However, since some projects may take years to complete, there is a need to
determine the value of the project by calculating the time-value of money.
Neglecting to discount future profits to their present value will lead to
misleading information.

Calculating the Net Present Value (NPV) reduces the projected cash flow to the
present value, making the evaluation more accurate. Projects that return a
positive NPV result are usually deemed acceptable. The Internal Rate of Return
(IRR) is a similar calculation that determines the present value of fixed cash
inflows and outflows.

Spreadsheet programs usually make calculating NPV and IRR simple.

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Project selection is a systematic approach in evaluating and selecting a project
or group of projects among other projects. Many organizations may have
established practices in selecting projects. In general, there are two types of
project selection models. They can be nonnumeric and numeric.

Examples of nonnumeric methods include:

• Sacred Cow—this is a project introduced by a powerful official in the

company, and the maintenance of this project depends on that powerful
official’s point of view of project success or failure.

• Operating Need—this project meets an obvious need. For example, if an

organization must change an obsolete operating platform, then the need for
a project that replaces this operating platform requires little evaluation.

• Competitive Need—this project keeps the company competitive in the

market. Modernizing a plant or implementing a document imaging system
are examples of such projects.

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• Product Line Extension—this project would strengthen an existing product or
help fill a gap in the product suite.

• Comparative Benefit Analysis—this is a basic nonnumeric method of selecting

a project based on assumed value in the organization. A common method is
the Q-sort method. The Q-sort method includes the following steps:

1. The project team creates a deck of cards with project names on

each card.
2. Team divides deck into two piles—high level and low level.
3. Team divides high level deck into two more piles—high level and
medium level
4. Team divides low level deck into two more piles—low level and
medium (same pile as in previous step).
5. Team divides high level in step 3 in two piles—very high level and
high level.
6. Team divides low level in step 4 in two piles—low level and very
low level.
7. Team then assesses the four categories (very high, high, low and
very low levels) and adjust as necessary.

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Business cases are used to justify the resources and investment in order for the
project to achieve its stated goal and purpose. A business case should present
more than financial data as a reason to justify the project. Developing the
business case requires describing the relevant facts in a story-like format.

The project team should do the development of the business case. The project
manager along with another project team member should actually write the
document, but the entire team should contribute to the business case in some
form.

Some organizations may already have a standard format they require as part of
the project initiation phase. If none is available, there are many templates.

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A business case should have the following questions answered as part of the
development process:

• Why is the project needed?

• How will this project address the issues and opportunities the company is
encountering?

• What are the solutions offered by this project?

• What are the benefits of implementing the solutions this project offers?

• What are potential consequences if the project is not implemented?

• How long will it take to implement the solutions offered by this project?

• How much money, human resources, and time will it take to fully complete
the project and achieve its intended benefits?

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Project assessment involves gathering information on the feasibility of the
project output as it relates to the current assumptions and constraints.

In addition, meetings with the following people are necessary in order to obtain
an accurate evaluation of the project:

 Sponsors
 Customers
 Subject matter experts

Once feasibility is determined, documenting the project requirements results in

several outputs.

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Key Requirements Outputs include:

 Requirements documentation: Documentation is used to capture

how requirements will meet the business needs of the project. All
requirements must be quantified, measurable, traceable, complete
and accepted by stakeholders.

 Requirements Management Plan: The plan captures how

requirements will be analyzed, documented and managed during the
life of the project.

 Requirements Traceability Matrix: The matrix links requirements

from their origin and tracks them through the entire project life
cycle. The matrix is utilized as a framework for managing changes
to the product scope during the project.

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In this task, the project manager defines the high-level scope of the project
based on the business and compliance requirements.

The objective of this task is to meet the customer’s project expectations.

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There are many times when problems and solutions require quick thinking and
new ideas to be generated. Brainstorming is a well-defined process that helps
to generate many ideas in a team environment. The ideas are captured without
any judgment or evaluation. The project manager encourages the project team
or participants to share any ideas regardless of how irrelevant they may seem.
In addition, the project manager could have the participants build on one
another’s ideas.

Brainstorming results in creative thinking that is captured and is multiplied by

the team’s energy. Brainstorming is used to solve problems, determine
solutions, determine the effects of a decision, and explore new ideas.

Brainstorming is a structured process that should employ rules. The main

principle of brainstorming is to withhold evaluation and judgment for a later
time. This allows for an open environment for ideas to flow.

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Here are some basic steps to brainstorming:

• Focus the group to a specific topic for brainstorming

• Place the topic so it is visible to all participants
• Provide a visible outline of the guidelines for the brainstorming session, such
as:

1. All ideas are accepted and none should be censored

2. Focus is on quantity and not quality
3. Do not discuss or evaluate ideas
4. Building on ideas is encouraged
5. Say “pass” when you run out of ideas

• Set a time limit that allows enough time for ideas to flow, avoiding low
energy
• Answer any questions before you begin brainstorming
• Allow participants a few minutes to think quietly and write down their initial
ideas on paper
• Instruct participants to not censor their ideas
• Write their ideas on a board or chart paper for all to see
• Ask for participants to contribute more ideas and to add to ones already
noted

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As a project manager, you may need to gather information by conducting
interviews with stakeholders and subject matter experts. Facilitating an
efficient interview will help you gather the information you need quickly and
with minimal repeat visits to your target audience.

When preparing for an interview, remember the following:

• Make an appointment with the person you would like to interview

• Learn about the person you are about to interview before meeting them

• Determine what you plan to get out of the interview before the meeting

• Develop your questions before the interview, but be prepared to be flexible if

other ideas should come up during the interview

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Once you are in the interview, you should do the following:

• Be on time and prepared with pen and paper

• Be friendly and demonstrate that you value their time

• Ask questions clearly

• Ask open-ended questions that provoke thought

• Remain focused, but be prepared for unexpected information

• Take good notes and ask the interviewee to repeat answers that are
important

• Avoid volunteering information unless it is to set context around a question

• Make sure you have all the information you need before you end the
interview by going over your notes with the interviewee

• Thank them for their time

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During the Scope Definition Process, stakeholders' needs, wants, and expectations
are analyzed for completeness and converted into project scope requirements.

To define the project scope, the project manager uses:

 product analysis
 expert judgment
 identification of alternatives
 workshops

The detailed project scope and the project management plan are developed using:

 historical information
 project charter information
 the preliminary project scope statement
 the latest approved version of the project management plan
 any relevant enterprise environmental factors

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The project scope statement is created during the scope definition activity and
describes the project scope, or what needs to be accomplished. It is the basis for
future project decisions.

The project scope statement details the project's deliverables and the work
required to create the deliverables.

THE PROJECT SCOPE STATEMENT describes:

 major project deliverables

 objectives
 assumptions and constraints
 the statement of work (SOW)

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ASSUMPTIONS are factors that are considered factual, real, or certain, such as
the start-date. Assumptions generally involve a degree of risk.

CONSTRAINTS are factors limiting the project manager’s options regarding

scope, staffing, and scheduling. Constraints are typically stated in the
contract.

When a project is performed under contract, contractual provisions are

considered constraints.

Predefined budgets and schedule milestones are examples of such

contractual provision constraints.

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Other items included in the Project Scope Statement include:
 product scope description
 requirements
 project constraints
 project deliverables
 product acceptance criteria
 project assumptions
 project exclusions

Project have a wide variety of business, cost, schedule, technical and quality
objectives, that include cost, schedule, and quality targets.

PROJECT OBJECTIVE ATTRIBUTES include a cost, a metric (such as US dollars), and

an absolute or relative value (such as a total cost of less than 1.5 million dollars,
etc.).

COST is the monetary value or price of a project activity or component, which

includes the monetary worth of the resources required to perform and complete
the activity / produce the component.

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PROJECT REQUIREMENTS describe conditions or capabilities that must be
met or possessed by project deliverables to satisfy a contract, standard,
specification or other formally imposed items.

A SCHEDULE MILESTONE represents a significant event on a project

schedule, such as an event restraining future work, or one that marks the
completion of a major deliverable. It has zero duration.

A PROJECT SPECIFICATION is a document that specifies the requirements,

characteristics, procedures, and other components of the project to ensure
satisfaction. It can also be a product, design, or test specification.

Small Projects’ scopes are easier to define since small projects are typically
completed quickly and do not involve many change requests. If scope
change requests do occur, the project manager may quickly (and usually
informally) resolve the matter.

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In this task, the project manager performs key stakeholder analysis by using
brainstorming, interviewing, and other data-gathering techniques.

The objective of this task is to ensure expectation alignment and gain support
for the project.

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Identifying and understanding the influence of all the stakeholders that could
affect the project success is an essential activity for the project manager. Five
activities should be performed in order to analyze the project stakeholders
successfully:

• Identify the appropriate stakeholders

• Identify each stakeholder’s interest in the project

• Measure each stakeholder’s interest

• Anticipate each stakeholder’s future behavior in order to satisfy their

interests

• Evaluate the effects of each stakeholder’s behavior on the project team’s

ability to manage the project

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Stakeholder analysis involves answering the following questions in order to
understand their influence and power over the project:

• Who are the project stakeholders—both primary and secondary?

• What stakes, rights, or claims do they have in the project?
• What challenges or advantages do the stakeholders present to the project
team?
• What obligations does the project team have for its stakeholders?
• What strengths, weaknesses, and strategies do the stakeholders have that
affect the project?
• What resources do the stakeholders offer to the project?
• What distinct advantages do the stakeholders have that they can use to
influence the project?
• What strategies should the project team develop and implement to manage
the stakeholders’ influence over the project?
• How will the team know they are successfully managing the project
stakeholders?

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Identifying stakeholders is the process of identifying people or organizations
that are impacted by the project and documenting information concerning their
interests, level of involvement, and impact on the success of the project.

Project stakeholders can include customers, sponsors, the performing

organization, and the public. The public stakeholder can by actively involved or
may be positively or negatively impacted by the execution or completion of the
project.

Most projects will have many stakeholders and it is important to identify them
and their level of involvement early on in the project. This will help the project
manager focus on the stakeholder relationships that will help the project be
successful.

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IDENTIFY STAKEHOLDERS – INPUTS:

Project Charter: This can provide information about the internal and external
parties involved in or affected by the project. These may include: project
sponsors, customers, team members, groups participating in the project and
those affected by the project.

Procurement Documents: If a project is the result of procurement activity or is

the result of an established contract, the parties named in the contract are key
project stakeholders. Other relevant parties that are part of the contract (such as
suppliers) are also stakeholders.

Enterprise Environmental Factors: Company culture and structure and

government or industry standards may also influence the Identify Stakeholders
process.

Organizational Process Assets: Stakeholder register templates, lessons learned

from previous projects, and stakeholder registers from previous projects can
influence the Identify Stakeholder process.

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IDENTIFY STAKEHOLDERS – TOOLS AND TECHNIQUES:

Stakeholder Analysis: This is the process of gathering and analyzing information

in order to determine which interests are most important during the project.

Step 1: Identify potential stakeholders and their roles, interests, etc. Key
stakeholders are usually easily identified as they are in management roles and
directly impacted by the project outcome. Other stakeholders are usually
identified by interviewing the current known stakeholders.

Step 2: Identify the influence each stakeholder has in the project and classify
them in order to devise an approach strategy. When there is a large number of
stakeholders, it is necessary to prioritize the key stakeholders so that their
expectations are met.

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Stakeholder Analysis (Step 2 continued):

Some of the classification models include:

 Power/Interest grid where the stakeholders are grouped based on their

authority (“power”) level and their interest in the project outcomes
 Power/Influence grid where the stakeholders are grouped by their
“power” and their active involvement ("influence”) in the project
 Influence/Impact grid where the stakeholders are grouped based on their
“influence” in the project and their ability to make important changes to
the project (“impact”).
 Salience model: This model groups the stakeholders based on their
“power”, need for attention (“urgency”), and legitimacy (their appropriate
involvement in the project).

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Stakeholder Analysis Step 3: Assess how important stakeholders may respond in
different situations so that you can have a plan to influence them, gain their
support, and intervene to prevent negative impacts.

Expert Judgment: To ensure that a complete list of stakeholders has been

identified, enlist help from those with specialized training or knowledge in the
appropriate areas. These would include: senior management, other divisions in the
organization, currently identified key stakeholders, other project managers, subject
matter experts (SMEs), industry consultants, and professional and technical
associations.

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IDENTIFY STAKEHOLDERS – OUTPUTS:

Stakeholder register: This is produced at the end of this process and contains
pertinent information about the identified stakeholders including key identification
information (name, position, role, etc.), assessment information (major
requirements, expectations, potential influence, etc., and stakeholder classification
(internal, external, supporter/resistor, etc.).

Stakeholder Management Strategy: The approach that will be taken to increase the
support of a stakeholder and decrease any negative impacts the stakeholder may
have. This is often represented in a stakeholder analysis matrix.

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In this task, the project manager identifies the following:

 High-level risks
 Assumptions
 Constraints

The project manager uses the current environment, historical data, and expert
judgment to determine these.

The objective in this task is to identify project limitations and propose an

implementation approach.

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A PROJECT RISK is an uncertain occurrence or event that impacts at least one
project objective. Events may be time, cost, scope, or quality related and may be
either positive or negative. A risk may have one or more causes, and may impact
one or more portions of the project.

Project risk may occur due to poor planning of resources (poor project
management) or disregarding potential impacts to the organization or
environment.

PROJECT RISK MANAGEMENT ensures adequate planning, development, and

implementation, as well as safety of personnel and public safety during the
project. It includes the management processes of:

 planning how risk will be controlled

 identifying potential project risks
 assessing the probability of risk
 evaluating the overall impact identified risks will have on the project
outcome
 developing actions to mitigate risk threats
 monitoring and executing risk control

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THE PROJECT MANAGER’S PRIMARY OBJECTIVES CONCERNING RISK MANAGEMENT
are to increase the probability of positive project-related events, while decreasing
negative and problematic events.

RISK CONDITIONS impacting project success may include:

 a lack of a formal development process

 a lack of explicit procedural or quality standards
 an unclear project strategy
 external participants that cannot be controlled

APPLICATION RISKS are performance-related. The larger the project, the more
complex its activities and deliverables are. Application risks include more
complex elements and subdivided deliverables (of larger projects), lack of
personnel or inadequately trained/skilled personnel, and lack of end-user
commitment and/or involvement in the project and its deliverables.

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Risks are rooted in uncertainty. KNOWN RISKS are those which have been
identified and analyzed, and have a planned response. UNKNOWN RISKS
cannot be managed proactively. When cost effective or proactive responses
cannot be developed, contingencies must be put in place to protect the
project from such risks. The only prudent responses the project team can
make for unknown risks are to allocate general contingency against such
risks.

Individuals’ and organizations’ attitudes toward risk affect the accuracy of

the perception of risk and the way they respond. Organizations generally
perceive risk as a threat to project success. However, risks may equally be
viewed as opportunities to enhance the chances of project success. Risks
are acceptable if the risk is in balance with the reward that may be gained
from taking the risk.

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Risk opportunities must offset risk with balanced reward. For example:

 Reducing personnel may cut resource cost, but may extend project
time. Conversely, adding staff will pay for itself if the project finishes
early and under budget.
 Outsourcing sensitive and classified activities may reduce resource
costs, but may impact company security and competitiveness.
 Emails and faxes are no substitutes for face-to-face meetings. Time
savings for convenience can cause communication mistakes,
alienation, and gaps.

Risk responses reflect an organization's perceived balance between risk-taking

and risk-avoidance.

A consistent approach to risk should be developed for each project. The approach
should meet organizational requirements.

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THE RISK MANAGEMENT PLANNING PROCESS is the beginning phase in which the
risk management team decides how to approach, plan, and execute risk
management activities for the project. The process should be completed early in
the project since other processes depend on it.

RISK MANAGEMENT PLANNING ensures:

 sufficient risk management activities

 sufficient time for risk management activities
 risk management levels that are commensurate with those of the
project

RISK ATTITUDES AND TOLERANCES of the organization influence the project

management plan, and are typically expressed in policy statements and actions.

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Predefined approaches organizations may use in Risk Management planning
are:
 risk categories
 common definitions of concepts and terms
 standard templates
 roles and responsibilities
 authority levels for decision-making

TOOLS & TECHNIQUES USED IN RISK MANAGEMENT PLANNING:

Project risk management planning meetings are scheduled to develop the risk
management plan. Risk management meetings are attended by the project
manager, selected team members, stakeholders, and those responsible for
managing risk planning and execution activities.

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In this task, the project manager develops the project charter further by gathering
and analyzing the stakeholder requirements.

The objective in this task is to document the following:

 Project scope
 Milestones
 Deliverables

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The first process of project integration management the team performs is to
develop the project charter, which formally authorizes the project or project phase.

THE PROJECT CHARTER authorizes the project and links it to the ongoing work of
the organization.

Process input documents include:

 the contract
 the statement of work
 the organization's environment and process assets

The project manager should be assigned to the project as early as possible, and
always prior to the start of planning. The Project Charter gives the project manager
the authority to apply organizational resources to project activities.

The project charter is issued by a sponsor or initiator outside the organization,

who is at a level that is appropriate for funding the project.

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Projects can be authorized and chartered external to the organization by an
enterprise or company, government agency, a portfolio organization, or program
organization. This is generally due to a market demand, business or social need,
customer request, technology, or legal requirement.

The project charter should either directly or indirectly address the:

 requirements that satisfy customers', stakeholders’, and business’

needs and influences
 project purpose, justification, summary milestone schedule, and budget
 level of authority of the assigned project manager, and the functional
organizations
 organizational, environmental, and external assumptions and
constraints

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Project Charter development involves:

 documenting the business needs

 documenting project justification
 documenting a current understanding of the customer's requirements
 explaining the new product, service, or intended result.

Tools and techniques used to develop the Project Charter include expert judgment
supplied by:

 Consultants
 Stakeholders
 Outside professional and technical associations
 SMEs (Subject Matter Experts)
 The PMO
 Specific industry groups
 Units within the organization

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PROJECT SELECTION involves measuring values or attractiveness to the project
owner or sponsor.

The “SOW” is the STATEMENT OF WORK, which is a description of products or

services to be supplied to the project. The Statement of Work captures:
 the business need
 the strategic plan
 the product scope description

The Statement of Work for internal projects defines work based on business need
and product or service requirements. An organization’s business need might
include:
 training
 technology
 market demand
 government or legal requirements

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The Strategic Plan should be considered when making project selection
decisions. All projects should support the organization's strategic goals.

The statement of work for external work, or product scope description, may be
received from a customer as part of a bid document.

CONTRACTS are used in development of the project charter, if the project is

being performed for an external customer.

The Business Case is a key input to the Project Charter. Business cases are
generated or supported from one or more of the following:

 customer requests
 market demand
 needs within the organization
 technological, legal, ecological or social changes (or needs)

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  Enterprise environmental factors and systems such as:
organizational culture and structure, government or industry
standards, infrastructure, existing human resources and personnel
administrations, marketplace conditions, MIS, and commercial
databases are considered during the development of the Project
Charter.

ORGANIZATIONAL PROCESS ASSETS encompass historical data from previous

projects. These include schedules, templates, risk data, and earned value
data.

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In this task, the project manager obtains approval of the project charter.

The objective if this task is to formally assign authority of the project to a

project manager and gain commitment of resources to the project by the
sponsor.

Furthermore, gaining approval of the charter by the customer helps to align

the project results to the customer’s expectations.

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It is important to identify the stakeholders early in the project in order to
achieve project success. Since approving the project charter gives the project
manager permission to move forward with the project, getting the right
stakeholders to approve the project is an important task.

Go back and review Task 3: Perform Key Stakeholder Analysis– Identify

Stakeholders section of this domain for details on how to identify stakeholders
for use in approving the project charter.

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 STOP!

 READ THE FOLLOWING PMBOK GUIDE CHAPTERS/SECTIONS: Chapter 1,

Chapter 2, Chapter 3, Sections 4.1, 13.1.
 TAKE THE WEB-BASED TESTS ON INITIATING BEFORE PROCEEDING FURTHER
 NOTE: Students will encounter questions from A) the PMBOK Guide, B) the
Study Guide, and C) questions that are not in either the PMBOK Guide or
Study Guide, throughout all tests. The purpose of category C questions is
to have students synthesize what they have learned along with their own
project management experience to determine the best answer. No one
source or set of sources can be memorized for the PMP test.

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 Planning the Project Tasks
Task 1 Assess the project requirements in detail
Task 2 Create the work breakdown structure (WBS)
Task 3 Develop the project budget
Task 4 Develop the project schedule
Task 5 Develop a human resource management plan
Task 6 Develop the communication plan
Task 7 Develop a procurement plan
Task 8 Develop a quality management plan
Task 9 Develop a change management plan
Task 10 Develop a risk management plan
Task 11 Present the project plan to the key stakeholders and gain
approval to execute project

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 Domain 2: Planning the Project
Task 12 Facilitate project kick-off meeting
Knowledge and skills related to this domain include the
following:
• Requirements gathering techniques
• WBS tools and techniques
• Time, budget, and cost estimating skills
• Scope management techniques
• Resource planning skills
• Workflow diagramming techniques
• Types and uses of organization charts

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 Planning the Project Tasks
• Elements, purpose, and techniques of the following planning
documents:
• Project plan
• Communication plan
• Procurement plan
• Quality management plan
• Change management plan
• Risk management plan

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Planning the project involves planning and scheduling skills.

The following knowledge and skills are specific for this domain and are necessary
to possess in order to execute the tasks in Domain 2:

• Requirements gathering techniques

• Work breakdown structure (WBS) tools and techniques
• Time, budget, and cost estimation techniques
• Scope management techniques
• Resource planning techniques
• Workflow diagramming techniques
• Types and uses of organizational charts
• Elements, purpose, and techniques of the following:

• Project planning
• Communication planning
• Quality management planning
• Change management planning
• Risk management planning

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In this task, the project manager meets with the stakeholders to assess detailed
project requirements. The project manager should review constraints and
assumptions outlined in the project charter. Reviewing these areas will help
refine the project requirements.
Finally, a review of the lessons learned from previous projects will help to identify
any past situations that may help to fine tune the project requirements further.

The objective of this task is to establish the project deliverables using planning
sessions, brainstorming meetings, focus groups, etc.

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Focus groups are used to generate information through sharing among a select
group of participants. The participants in a focus group usually are people with a
stake in the project, or people that hold valuable information needed for the
project team. Furthermore, focus groups allow for diverse thinking at a low cost.

There are some drawbacks to focus groups. First, focus groups are prone to
biases originating from the facilitator. Second, a few vocal participants could
dominate a focus group. Finally, the information generated by a focus group may
not be easily generalized to the entire population.

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Here are some basic guidelines to holding a focus group:

• Allow only one person to speak at a time

• State upfront that the information obtained in the focus group will remain
confidential

• Make sure everyone shares no matter if it seems right or wrong

• Encourage all perspectives to be shared no matter how positive or negative

they may be

• Make sure there is a balance in the group. Avoid having a room full of people
from one department, line of business, etc.

• Allow the participants to set some ground rules of their own

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Kickoff meetings allow participants involved in a project to become familiar with
the project team and project requirements. The entire project team should
attend the project kickoff meeting. This meeting should be mandatory and it is
best to reschedule if not all the participants can attend.

The main purpose of the kickoff meeting is to communicate the objective of the
project, the initial scope, high-level timeline, project team expectations,
communication channels for the project team, and strategic relevance of the
project.

Here are some basic steps in conducting a kickoff meeting:

Prepare for meeting:

• Contact the project team members and confirm the date and time of the
meeting
• Prepare an agenda and send it to the project team in advance of the meeting
• Prepare initial project documents for the team to review during the meeting
(i.e. charter, statement of work, etc.)

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Conduct the meeting:

• Have the team members introduce themselves

• Give a high-level description of the project
• Brainstorm team expectations
• Establish “ground rules”

• Communication
• Conflict resolution
• Feedback process

• Present initial scope

• Determine next steps

Make sure you have a scribe that is taking project minutes, and close the meeting
by probing for questions, and then adjourning the meeting.

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 Plan Scope Management is the process of producing a project scope
management plan.

 The Project Scope Management Plan is a subsidiary plan of the Project

Management Plan, and it documents how the scope of the project will be
defined, verified, documented and controlled.

 The inputs to the process include:

 project management plan

 project charter
 enterprise environmental factors
 organizational process assets

 The tools and techniques involved include:

 expert judgment
 meetings

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 The Plan Scope Management process produces the Scope Management Plan
and Requirements Management Plan.

 The Scope Management Plan contains the:

 process for the development of the project scope statement

 process for approval of the work breakdown structure
 process for the project’s final acceptance
 project scope change control process

 The Requirements Management Plan includes:

 requirements collection and verification plan

 configuration management system to be used
 process for prioritizing requirements
 requirements traceability structure

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Validate Scope involves formalizing acceptance of the completed project
deliverables by the stakeholder. The stakeholder accepts the deliverables after
evaluating and selecting the best alternative.

The project scope verification process documents the level and extent of
completion when a project is terminated early.

Quality control is generally performed before scope verification, but both

processes may be performed in parallel.

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INSPECTION is the primary scope verification tool or technique the project
manager uses to verify if work and deliverables meet requirements and
product acceptance criteria.

Inspection activities include:

 measuring
 examining
 verifying work and deliverables to ensure they meet requirements
and product acceptance criteria

Completed deliverables that have NOT been accepted are documented with
the reasons they were not accepted.

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In this task, the project manager creates the work breakdown structure with the
project team, deconstructing the scope.

The objective of this task is to manage the scope of the project.

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Workflow diagramming is the process of mapping the details of a lifecycle or
process. The flowchart gives an overview and allows the project team to
understand the requirements of the project through a visual representation.

Programs like Microsoft Visio make workflow diagramming a simple process. If

diagramming software is not available, there are traditional workflow symbols
available in most word-processing programs. See sample below on next slide.

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The diagramming process should involve, at a minimum, the project team. A
project manager may enlist the help of subject matter experts to aid the team in
properly diagramming a process or flow.

Sample Diagram

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A "WBS" is a "work breakdown structure" that organizes and defines project
scope. It is a hierarchy that defines and organizes project work to accomplish
specified internal and external deliverables. Each descending level of the
hierarchy represents a more detailed definition of the project work.

The WBS can be used to show how each piece of the project is tied to the whole
in terms of performance, responsibilities, budgeting and scheduling.

A WORK PACKAGE is a project work component at the lowest level of each

branch of the WBS. Work packages include schedule activities and schedule
milestones necessary to complete the work package deliverables or components.

Work package levels (the lowest WBS levels) are the points at which the cost and
schedule for work can be reliably estimated.

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STANDARD WBS TEMPLATES are used in many application areas or by performing
organizations. Projects within a given organization which are similar to past
projects and have similar life cycles and deliverables, utilize WBS templates to
achieve consistent project results.

In an effort to control project management team requirements, the project

manager uses a WBS template and major deliverables and sub projects, project
life cycle phases, and different approaches within each WBS branch. The project
manager and project team restructures and organizes deliverables and associated
project work into a WBS.

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DECOMPOSITION is a planning technique that subdivides project scope and
deliverables into smaller, more manageable components. Project deliverables and
work are subdivided until they can be defined at the work package level.

Activities involved in Decomposition include:

 identifying related work and deliverables
 structuring and organizing the WBS
 decomposing upper WBS levels to lower levels
 developing and assigning ID codes to WBS components
 verifying that the degree of decomposition of the work is necessary
and/or sufficient

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EXCESSIVE DECOMPOSITION occurs when project managers get bogged down with
too much planning detail. This can lead to non-productive management and
contribute to inefficient work performance and resource allocation.

The project management team typically waits until the deliverable or subproject is
clarified before developing the WBS. This progressive detailing of the project
management plan is ROLLING WAVE PLANNING. Rolling wave planning is the
progressive and ongoing detailing of the project management plan.

Each WBS component is defined in terms of how the work is executed and
controlled. For example, quality control components of a construction project
could include inspection, testing, and documentation activities.

Lower-Level WBS components must be sufficient to ensure completion of the

corresponding Higher-Level Deliverables.

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THE WBS DICTIONARY is a companion document that provides detailed
component information including:

 work packages and control accounts

 the statements of work
 responsible organization
 lists of schedule milestones
 description of work
 resource and quality requirements
 cost estimates
 acceptance criteria
 contract detail

A SCOPE BASELINE is the approved, time phased project scope. It consists of the
approved, detailed project scope statement and its associated WBS and WBS
dictionary.

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In this task, the project manager develops a budget plan using the project scope,
leveraging estimating techniques.

The objective of this task is to manage project costs.

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PROJECT COST MANAGEMENT consists of processes necessary to ensure the project
team completes a project within the approved budget. It includes processes which:

 estimate costs
 budget costs
 control costs

PROJECT COST MANAGEMENT is primarily concerned with the costs of resources

necessary to complete the project. It also considers how project cost decisions
involving using, maintaining, and supporting the product , service, or result impact
the project.

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LIFE-CYCLE COSTING is the broad view of project cost management that considers
the short- and long-term impact cost of using, maintaining, and supporting the
end-product decisions.

THE COMBINED PROCESS OF LIFE-CYCLE COSTING AND VALUE ENGINEERING:

 reduces cost and execution time

 improves project deliverable quality and performance
 improves overall decision-making

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THE COST MANAGEMENT PLAN establishes:
 specific organizational procedure links
 precision levels
 units of measure
 control thresholds
 earned value management (EVM) rules
 reporting formats
 process descriptions

THE CONTROL ACCOUNT (CA) is the WBS component used for project cost
accounting. Each CA is assigned a code or account number that links
directly to the performing organization's accounting system.

CONTROL THRESHOLDS are various thresholds for costs or other indicators

that are included in the cost management plan. Thresholds are typically
shown as deviations from the baseline plan.

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The Cost Management Plan is produced during the Plan Cost Management process
which require the following key inputs:

 project charter
 latest version of the project management plan

The Project Management Plan provides the scope and schedule baselines which
are the key inputs to the cost planning process.

Expert judgment, management meetings and analytical techniques are the tools
and techniques that help in producing a Cost Management Plan.

The Cost Management Plan usually includes:

 units of measure to be used
 level of precision and accuracy required
 control thresholds
 rules of performance management
 reporting formats and process descriptions

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COST ESTIMATING involves developing an estimate of the costs of needed
resources, including:

 identifying and considering various costing alternatives

 determining if expected savings can offset the cost of the
additional work

COST ESTIMATES are expressed in units of currency, units of measure,

and units of time such as staff hours or days, or equipment operation.
Cost estimate units facilitate comparisons within and across projects.

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COSTS FOR SCHEDULE ACTIVITIES are estimated for all resources and include:

 labor
 materials
 equipment
 service and facilities
 an additional inflation allowance or contingency cost

When approximating costs of resources needed to complete each schedule

activity, the estimator should consider possible causes of variation of cost
estimates, including risks.

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WHEN CREATING A PROJECT COST ESTIMATE, the project manager should
consider:

 enterprise environmental factors such as marketplace conditions and

commercial databases containing cost information
 cost estimating policies, templates, and project files
 the project scope statement
 WBS and WBS dictionary
 the risk register
 the project schedule and staffing management plans

Existing formal and informal cost estimating policies and procedures are
considered in developing the cost management plan, selecting the cost
estimating tools, and monitoring and reporting methods to be used.

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THE PROJECT SCOPE STATEMENT describes :

 the business needs

 justification
 requirements
 current boundaries, constraints, and assumptions

One of the most common constraints for many projects is a limited project
budget. Other constraints involve:

 delivery dates
 available skilled resources
 organizational policies

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THE PROJECT MANAGEMENT PLAN provides subsidiary plans that direct cost
management planning and control.

The type and quantity of resources and amount of time applied to complete
the work are primary factors in determining project cost. SCHEDULE
ACTIVITY RESOURCES are key inputs to this process.

Schedule activity durations affect cost estimates that have time-sensitive

and time-related costs. Some of these costs include:

 union labor with expiring collective bargaining agreements

 materials subject to seasonal cost fluctuations
 time-related field overhead

A GENERAL COST ESTIMATING RULE:

When the project experiences a negative risk event, the cost of the project
will almost always increase and delay the schedule.

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TOOLS & TECHNIQUES USED TO CREATE A COST ESTIMATE:

ANALOGOUS COST ESTIMATING uses information from similar past projects and
expert judgment. It is typically less costly, but also less accurate, than other cost
estimating techniques. It is frequently used to estimate costs when there is a limited
amount of detailed information about a project.

UNIT COST PRICES for each resource estimate may be determined:

 by requesting and comparing price quotes

 by obtaining data from commercial databases or data from published
seller price lists

BOTTOM-UP ESTIMATING involves estimating the cost of individual work packages

or schedule activities with the lowest level of detail. Cost is summarized for
reporting and tracking.

PARAMETRIC COST ESTIMATING produces the highest degree of accuracy. It utilizes

statistical relationships between historical data and the targeted variable (required
labor hours, square footage, lines of software code, etc.)

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CONTINGENCY RESERVES are estimated costs to be used at the discretion of the
project manager. Reserves are used to deal with unknowns that can impact the
project scope and cost baselines.

THE ACTIVITY COST ESTIMATE is a quantitative assessment of likely resource

costs required to complete schedule activities.
Cost estimating outputs include:

 cost estimates of activities

 the basis of the estimates
 updates to project documents

SUPPORTING DOCUMENTATION should provide a complete overview of how the

cost estimate was derived. Supporting documentation should include:

 how the estimate was developed, including assumptions and

constraints
 indication of the range of possible estimates for expected cost
 level of confidence for final estimate

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COST BUDGETING involves aggregating estimated costs of individual schedule
activities or work packages to establish cost estimates and a total cost baseline.
The baseline is used to measure project performance.

BUDGETING INPUTS include formal periodic limitations of project fund

expenditures, which are contained in project charters or contracts. These
constraints are part of the SUMMARY BUDGET, which is provided by the project
scope statement.

THE PROJECT SCOPE STATEMENT provides the summary budget, which includes
funding constraints due to pending funding authorization by the buyer's
organization or other entities such as government agencies.

MANAGEMENT CONTINGENCY RESERVES are budget items which are not

included in the project cost baseline, but are included in the budget for
unplanned changes to the project scope and cost.

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TOOLS & TECHNIQUES USED IN COST BUDGETING:

PARAMETRIC MODELS are mathematical models used to predict total project

costs. They are simple and the most reliable when the model is scalable, accurate
historical information is used to develop the model, and model parameters are
quantifiable.

FUNDING LIMIT RECONCILIATION necessitates date constraints be imposed for

some work packages. Significant variations in periodic funds expenditures are
unacceptable. Expenditures are reconciled with funding limits. This may
necessitate work be rescheduled or adjusted to regulate or regain control of
expenditures. Date constraints for some work packages may be required to
accomplish this.

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COST BASELINES are time-phased budgets and components of the project
management plan. Cost baselines are used to measure, monitor and control
overall cost performance.

The “TOTAL FUNDS REQUIRED” are those included in the cost baseline, plus
the management contingency reserve amount.

WORK ORDER RELEASES authorize cost centers to begin charging their time to
a specific cost reporting element. Work orders specify hours, not dollars.

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In this task, the project manager develops a project schedule using the project
timeline, scope, and resource plan.

The objective of this task is to manage timely completion of the project.

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TIME is the period given in which to complete the project.

Projects are typically broken down into the time required to complete individual
components, stages, or phases.

These components, stages, or phases are further broken down into the time
required to complete tasks necessary to complete each component, stage, or
phase.

PROJECT TIME MANAGEMENT is the process of completing the project in a timely

manner and on schedule.

According to the “80:20 Rule,” managers and supervisors spend only about 20% of
their time on the planning and control activities which produce 80% of all results.
Conversely, 80% of unfocused effort generates 20% results.

In an effort to achieve maximum productivity, numerous efficiency studies have

been done to determine efficient time management.

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Time Management processes include:

 planning schedule management

defining specific schedule activities
 sequencing activities
 estimating type and quantity of activity resources
 estimating activity duration
 developing schedules
 controlling schedules

Processes overlap and interact. Each process involves a level of effort which is
based on the needs of the project.

Each process occurs a minimum of once during the project life-cycle, or more,
depending on the number of project phases. Project managers may assign one
person to perform all processes of activity sequencing, activity resource
estimating, activity duration estimating, and schedule development as a single
process for projects having smaller scope. This SINGLE-PROCESS FUNCTION can
be performed simply, in a relatively short period of time.

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The Plan Schedule Management process requires establishing the procedures,
methods and documentation for planning, developing, executing, tracking and
controlling the project schedule.

This process produces a schedule management plan which feeds into other time
management processes as an input.

The project charter and the latest version of the project management plan feeds
into this process as inputs.

Project managers use expert judgment, analytical techniques, and management

meetings to prepare and finalize the schedule management plan.

The schedule management plan is a subsidiary plan of the project management

plan. It may be formally or informally drafted based on the needs of the project.

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The Time Management activity definition process identifies the specific schedule
activities which must be performed to produce various project deliverables.

The activity definition process identifies the deliverables at the lowest level of the
WBS (the work package).

Output from previously performed project integration and planning processes is

used to define the schedule activities.

The project manager utilizes the following to define the schedule activities:
 the scope baseline
 organizational process assets
 enterprise environmental factors

Internal organizational process assets and enterprise environmental factors used

to define the schedule activities include:
 organizational policies
 the historical information project calendar
 resource availability

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Defining schedule activities involves:

 identifying the planned work

 documenting the planned work

The activity definition process implicitly defines and plans the work so project
objectives will be met. Scheduling activities provide a basis for:
 scheduling
 estimating
 monitoring
 controlling

Scheduling software and the PMIS are considered enterprise environmental

factors. Enterprise environmental factors are external environmental and
internal organizational environmental factors that influence the project's
success.

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ORGANIZATIONAL ASSETS are planning-related policies, procedures, and
guidelines used in developing the activity definitions. Organizational process
assets include:

 the organization's knowledge base

 planning-related policies and procedures
 guidelines
 historical information regarding activities lists used in previous and
similar projects

Project Scope Statement constraints impose completion dates that are required by
management or by the contract.

Project limitations documented in the Project Scope Statement can limit the project
management team's schedule milestones and other options.

The Project Management plan contains the schedule management plan which
provides guidance on development and planning schedule activities as well as the
project scope management plan.

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TOOLS & TECHNIQUES USED TO DEFINE ACTIVITIES:

Work package components called ‘schedule activities’, are smaller, more

manageable components acquired through the decomposition process.

DECOMPOSITION is the subdividing of project work packages into schedule

activities.

A SCHEDULE ACTIVITY is a component of work performed during a project. It

may be connected to other schedule activities and milestones by logical
relationships. Schedule activities have:

 an estimated duration
 cost
 planned resources

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TEMPLATES made from information from similar past projects' activity lists are
often used for a new project. Templates typically contain related activity
attribute information such as:

 resource skills and required hours

 identified risks
 expected deliverables lists

TEMPLATES may be used to establish SCHEDULE MILESTONES.

Rolling Wave Planning involves:

 planning short-term work in detail at low levels of the WBS

 planning future work at high levels of the WBS that will be detailed
within one or two periods

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The last component in a low level branch of the WBS is used to develop a high
level project schedule for that component. These planning components are
schedule activities, which are insufficient to support the detailed estimating,
scheduling, executing, monitoring, or controlling the project.

The CONTROL ACCOUNT is a planning component in which the scope, budget,

actual cost, and schedule are integrated at a management control point, and
compared to earned value (EV), to measure performance.

A PLANNING PACKAGE is a WBS component below the control account but

above the work package, and is used for planning known work that does not
have detailed activities.

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ACTIVITY LISTS are documented tabulations of schedule activities showing:

 the activity description

 the activity identifier
 scope of work

The Schedule Activity Scope of Work may be represented:

 in physical terms (CY of conc., LF of pipe)

 by the number of drawings
 in lines of computer program code
 in the chapters in a book

ACTIVITY ATTRIBUTES are used for:

 project schedule development

 selecting, ordering, and sorting planned schedule activities within
reports

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Schedule Activity attributes include:

 time leads and lags

 resource requirements
 the person responsible for executing the work
 logical relationships
 activity identifiers
 activity description
 predecessor and successor activities
 imposed dates
 constraints and assumptions
 the place, type of work, and effort

Milestones required by the contract are considered MANDATORY MILESTONES.

OPTIONAL MILESTONES are those based on project requirements or on historical

information.

THE MILESTONE LIST is a component of the project management plan and used in
the schedule model.

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The activity sequencing process provides a means of identifying and
documenting dependences among schedule activities.

Activity sequencing outputs include:

 project schedule network diagrams

 project document updates

Schedule activities are logically sequenced using:

 precedence relationships
 leads
 lags

Product characteristics can affect activity sequencing.

THE PROJECT SCOPE STATEMENT characteristically describes major project

deliverables, objectives, assumptions, constraints, and the statement of work,
which also impacts activity sequencing.

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 PRECEDENCE RELATIONSHIPS used in PDM networks may be:

 Finish-to-Start
 Start-to-Finish
 Finish-to-Finish
 Start-to-Start

‘FINISH-TO-START’ are the most commonly used precedence relationships.

#1. (Finish-to-Start) – Activity “B” cannot begin before Activity “A” is

completed.

Activity “A”
A
2+ days
Activity “B”
B

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#2. (Finish-to-Finish) – Activity “B cannot be completed until Activity “A” is completed.

Activity “A” A

Activity “B” B

3 + days

#3. (Start-to-Start) – Activity “B” cannot begin until Activity “A” is underway.

Activity “A” A

Activity “B” 3 + days B

#4. (Start-to-Finish) – Activity “B cannot be completed before Activity “A” begins.

Activity “A”
A

Activity “B”
B
6 + days

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MANDATORY DEPENDENCIES are those that are inherent in the nature of the work
being done. One activity must be completed before the successor activity can
begin.

DISCRETIONARY DEPENDENCIES are usually based on knowledge of best practices

within a particular application area or when a specific sequence is desired.

EXTERNAL DEPENDENCIES are identified during the process of establishing the

sequence of activities. The project manager discovers that Activity ‘B’ cannot
begin until Activity ‘A’ is acquired, or processed, from outside the scope of work.
These dependencies involve a relationship between project and non-project
activities.

MANDATORY DEPENDENCIES are often referred to as hard logic, since they are
inherent in the nature of the work being done. For example: Activity ‘A’ must be
completed before Activity ‘B’ can begins.

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A LAG creates a delay in the successor activity. For example: If a project
manager is working with a finish-to-start dependency, he will find he has to
build in a 28-day lag period into the project schedule to ensure a concrete
foundation has cured.

In finish-to-start relationships, a LEAD allows an acceleration of the

successor activity. For example: The project management team has 15 days
left to put the contract out to bid; 90% of the contract is complete. The word
processing team begins editing and compilation while the design team
finalizes the special provisions section and plan inserts. The project manager
provided the team some lead time by giving the bulk of what was done to
word processing to begin their work.

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THE SCHEDULE NETWORK DIAGRAM TEMPLATES (SNT) are standardized, and
used to expedite preparation of networks of project schedule activities (such
as projects with identical deliverables). Portions of a project schedule
network diagram are sub-networks, or fragment networks.

THE SUBNETWORK TEMPLATES are useful when the project includes several
identical, or nearly identical, deliverables, such as floors, layers, levels, etc.

ACTIVITY ATTRIBUTES are sequencing outputs used for project schedule

development. They are also used for selecting, ordering, and sorting planned
schedule activities within reports. They are updated to include the defined
logical relationships and any associated leads and lags.

REQUESTED CHANGES are activity sequencing outputs that are the result of a
divided or redefined schedule activity, or an adjusted lead or lag.

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THE ACTIVITY RESOURCE ESTIMATING PROCESS allows the project manager and
team to effectively estimate the type and quantity of necessary resources.

ESTIMATING SCHEDULE ACTIVITY RESOURCES involves determining what, when,

and how much of human resources, equipment, and materials will be available to
perform project activities. Labor that lacks knowledge or experience, limited or
unusable equipment, or lack of stockpiled materials will incur additional time
and/or cost.

ORGANIZATIONAL PROCESS ASSETS provide policies of the performing

organization regarding staffing, equipment and supply rental or purchase.
Historical data regarding what resources were used on similar past projects can be
helpful.

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ACTIVITY ATTRIBUTES developed during the activity definition process
provide the primary data input used in estimating resources required for each
schedule activity in the activity list. Activities include project schedule
development, as well as selecting, ordering, and sorting planned schedule
activities.

INFORMATION ON AVAILABLE RESOURCES is used for estimating the resource

types. The project manager also considers locations, human resources, and
what will be needed during various project phases. Companies, trade
organizations, and agencies routinely publish updated production rates and
unit costs for resources in particular geographic areas. These are good
sources for the latest information on labor trades, materials, techniques, and
equipment.

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TOOLS & TECHNIQUES USED TO ESTIMATE ACTIVITY RESOURCES:

EXPERT JUDGEMENT is required to effectively assess resource-related inputs to

the activity resource estimating process. This does not automatically mean that
the project manager should exclusively perform this process. Any group or
person specialized in resource planning and estimating can provide such input.

ALTERNATIVE ANALYSES examine schedule activities that have several methods

for completion. The analyses generate the "best" alternative considering the
project and resources available.

PROJECT MANAGEMENT SOFTWARE helps plan, organize, and manage resource

pools and develop resource estimates. Depending on how sophisticated the
program is, resource calendars, breakdown structures, resource availability and
rates can be obtained.

BOTTOM-UP ESTIMATING allows the project manager to decompose work within

the schedule activity into more detail. The needs of each lower, detailed piece
of work are estimated. These estimates are aggregated into a total quantity for
each of the schedule activity resources.

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Expected output from performing the activity resource estimating process
includes identification and description of the types and quantities of resources
required for each schedule activity in a work package.

An output of activity resource estimating is the creation of a RESOURCE

BREAKDOWN STRUCTURE (RBS). A resource breakdown structure (RBS) is a
hierarchal structure of resources (by resource category and type) used in
resource leveling schedules to develop resource-limited schedules.

THE COMPOSITE RESOURCE CALENDAR for the project documents when

personnel or materials can be active or are idle, and when resource-specific
holidays and resource availability periods occur.

REQUESTED CHANGES are a result of additional or deleted planned schedule

activities on the activity list.

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ACTIVITY DURATION is the time in calendar units between the start and finish of
a schedule activity.

All work effort required to complete the schedule activity, the assumed amount of
resources to be applied to complete the schedule activity, and the number of
work periods needed to complete the schedule activity, is estimated.

ASSUMPTIONS that support duration estimating are documented for each activity
duration estimate.

ACTIVITY DURATION ESTIMATING is the time management process of estimating

the number of work periods that will be necessary to complete activities.

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ESTIMATED SCHEDULE ACTIVITY DURATIONS USE:

 information from estimated resource quantities

 the schedule activity scope of work
 required resource types
 resource calendars with resource availabilities

The estimates of schedule activity duration should be performed by the

project team person or group who is the most familiar with the nature of
the work in the specific schedule activity.

THE DURATION ESTIMATE is considered to be progressive since it becomes

more detailed and precise as data becomes available and the accuracy of
duration estimates improve.

A primary consideration when estimating the number of work periods

required to complete a schedule activity is the elapsed time required for the
specific type of work.

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AN ORGANIZATION’S DURATION ESTIMATING DATABASE is the best reference
information to use for estimating activity duration when activity durations are
not driven by the actual work content. Organizations involved in the project may
maintain duration estimating databases and other historical reference data that
can be useful in estimating activity durations.

Assumptions and constraints from the project scope statement are considered
when estimating activity duration schedules.

An example of an assumption is the length of the project reporting periods,

which can dictate maximum scheduled activity duration.

An example of a constraint on schedule activity durations would be document

submittals, reviews, and similar non-deliverable schedule activities, which have
frequencies and durations either specified by contract, or within the performing
organization's policies.

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INEFFICIENCY caused by lack of adequate quantities or skills or materials,
equipment, and labor/personnel, will significantly influence the duration of most
activities.

THE RESOURCE CALENDAR developed as part of the activity resource estimating

process includes:
 the availability, capabilities and skills of human resources
 the type, quantity, availability, and capability of equipment and
material resources

THE RISK REGISTER has information on identified project risks. These risks must
be considered when producing estimates of activity durations, or when activity
durations for risks must be adjusted.

COMPLETED ACTIVITY COST ESTIMATES can be developed to provide estimated

resource quantities for each schedule activity in the project activity list.

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TOOLS & TECHNIQUES USED TO ESTIMATE ACTIVITY DURATIONS:

Duration estimates are more accurate and less risky when:

 there is expert judgment

 there is past duration estimate information
 there is historical information
 recommended maximum activity durations from similar past
projects are applied

ANALOGOUS ESTIMATING is used to determine activity durations when there is

limited detailed project information. Analogous estimating uses historical
information and expert judgment. The actual duration of a previous, similar
schedule activity serves as the basis for estimating the duration of future
schedule activity.

PARAMETRIC ESTIMATING is the process of estimating activity durations

quantitatively. The activity durations are calculated by multiplying the quantity
of resource by the productivity rate.

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 RESOURCE QUANTITY x PRODUCTIVITY RATE

THREE-POINT ESTIMATES are activity duration estimates that consider the

amount of relative risk involved in the original estimate. Three-point estimates
are based on estimates that might be:

 "the most likely,"

 "optimistic" (best-case scenario)
 "pessimistic" or (worst-case scenario)

Using a combined average of the three types of estimates provides a more

accurate activity duration estimate than a single-point estimate.

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Project teams can choose to incorporate additional time into the project
schedule.

These additions are referred to as:

 buffers
 contingencies
 reserves
 time reserves (amounts of time added to the schedule to
compensate for recognized schedule risk).

THE CONTINGENCY RESERVE may be a percentage of estimated activity duration,

a fixed number of work periods, or may be developed by quantitative schedule
risk analysis.

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SCHEDULING is essentially the converting of the project action plan into a
functioning timetable which provides the basis for monitoring and controlling the
project.

Not all project activities need to be scheduled in the same level of detail.

SCHEDULE DEVELOPMENT is an interactive process that helps determine planned

project start- and end-dates. It continues throughout the project as work
progresses, the project management plan changes, and anticipated risk rises and
falls.

SCHEDULE DEVELOPMENT analyzes activity component constraints, such as those

that affect:
 activity sequences
 durations
 resource requirements
 schedules

THE PROJECT SCHEDULE is created as a result.

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TIME CONSTRAINTS, which must be considered during schedule development
include:
 imposed start- and end-dates
 project stakeholder, customer, and/or sponsor milestone
requirements

TOOLS & TECHNIQUES USED TO DEVELOP SCHEDULES:

SCHEDULE NETWORK ANALYSIS is a scheduling technique that employs a

scheduling model and various analytical techniques to generate the project
schedule.

THE CRITICAL PATH METHOD (CPM) (below) scheduling technique is designed

to control project time and cost using estimated activity time. It calculates
theoretical early start and finish dates, and late start and finish dates. It
performs forward pass analysis and backward pass analysis through the project
schedule network paths.

The critical path is the longest path through the network diagram.

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 PATH 1 A-D-H = 1+3+4 = 8 days
PATH 2 B-E-H = 2+5+4 = 11 days
PATH 3 B-F-I = 2+5+2 = 9 days
PATH 4 C-G-J = 3+7+3 = 13 days
The critical path of the project (below) is PATH 4

D=3
A=1 2 5
H=4
E=5
B=2 F=5 I=2
1 3 6 8

C=3 J=3
4 G=7
7

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THE SCHEDULE COMPRESSION TECHNIQUE meets schedule constraints and imposed
dates or other schedule objectives by shortening the project schedule without
changing the project scope.

FAST-TRACKING is a schedule compression technique that schedules normally

sequential activity phases so they will be performed in parallel. The project
manager must recognize the increased risk and rework associated with this
technique.

CRASHING is a schedule compression technique where cost and schedule tradeoffs

are analyzed to ‘obtain the greatest amount of compression for the least
incremental cost’.

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THE WHAT-IF SCENARIO analysis compares different scenarios such as: delaying a
major component delivery, extending specific engineering durations, or
introducing external forces.

If the project manager combines deterministic and probabilistic approaches to

determine schedule risk, and then adds duration buffers that are non-work
schedule activities, the project manager is implementing the CRITICAL CHAIN
METHOD of schedule compression. The focus is directed toward managing the
buffer activity duration and resources applied to planned schedule activities,
rather than on managing the total float of network paths.

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A BAR CHART (GANTT CHART) (below) is a graphical representation of planned
and actual progress for a number of project tasks using horizontal lines, or bars.
It is helpful in expediting sequencing, reallocating resources among tasks, and
monitoring progress of all primary and secondary tasks.

MAY 6 MAY 13 MAY 20 MAY 27

TASK S M T W TH F S S M T W TH F S S M T W TH F S S M T W TH F S

C
D

MILESTONE CHARTS exclusively identify the scheduled start or completion of

major deliverables and key external interfaces.

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In this task, the project manager develops a human resource management plan,
defining the roles and responsibilities of the project team members.

The objective of this task is to create an effective project organization structure

and provide guidance regarding how resources will be used and managed.

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HUMAN RESOURCE MANAGEMENT focuses on processes that organize a human
resource plan, assign roles, responsibilities, and reporting relationships, acquire
a project team, and manage the project team (staff).

Roles and responsibilities are assigned to team members, however they should
be involved in planning and decision making early to add expertise and to
establish a commitment to the project.

HUMAN RESOURCE PROJECT PLANNING involves identifying & documenting

project:

 roles
 responsibilities
 reporting relationships
 staffing management plans

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HUMAN RESOURCE MANAGEMENT INCLUDES MANAGING THE PROJECT TEAM,
which focuses on improving the competencies and interaction of team
members to enhance project performance.
Additional team members raise or lower the level of expertise, which
increases or decreases project risk, thus creating the need for additional risk
planning.
All project team members should be known prior to estimating activity
durations, since competency levels of acquired team members can cause
activity durations and schedules to change.
Managing the project team also involves being aware of factors such as
geographical locations of team members, team environment, politics, cultural
issues, etc. that may affect the project performance. A project manager must
also make sure that all team members follow ethical behavior.

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ORGANIZATIONAL CULTURE AND STRUCTURE, AND ESTABLISHED TEMPLATES
AND CHECKLISTS are organizational process assets and enterprise
environmental factors, that, along with activity resource requirements,
comprise human resource planning.

THE PURPOSE OF HUMAN RESOURCE PLANNING is to determine project roles,

responsibilities, and reporting relationships, and to create the staffing
management plan.

PROJECT ROLES may be designated for persons or groups either within or

outside of the performing organization.

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THE STAFFING MANAGEMENT PLAN includes how project team members will
be:
 acquired
 released from the project
 trained
 recognized and rewarded

It also involves:
 compliance considerations
 safety needs
 the impact of the plan on the organization

PROJECT ROLES are defined according to how the existing organizations will
be involved, and how the people and technical disciplines currently interact
with each other.

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INTERPERSONAL types of enterprise environmental factors which must be
considered during human resource planning include:

 formal and informal reporting relationships among project team

candidates
 project team members’ job descriptions and supervisor-subordinate
relationships
 levels of trust and respect among team members
 culture or language differences which affect relationships
 supplier-customer relationships

POLITICAL types of enterprise environmental factors impacting the

organizational makeup include:

 project stakeholders' individual goals and agendas

 groups and people having informal power that impact important
areas of the project
 informal alliances

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LOGISTICAL enterprise environmental factors involving organizational culture
and structure focus on people involved in the project who are located in
different buildings, time zones, or countries.

ORGANIZATIONAL CONSTRAINTS which limit the project team's flexibility in

human resource planning may reside within the organization's basic structure.
The project manager will have a weaker role in an organization that has a weak
matrix.

ECONOMIC CONSTRAINTS in human resource planning may evolve out of

conditions that restrict staffing options such as:

 hiring freezes
 reduced training funds
 lack of travel budgets

CONTRACT AGREEMENTS with unions and mandated contract compliance

reporting are constraints imposed by collective bargaining agreements.

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TEMPLATES AND CHECKLISTS reduce the amount of planning time needed at the
beginning of a project and the likelihood of missing important project
responsibilities.

TEMPLATES include:

 project performance appraisals

 organizational charts
 position descriptions
 standards for approaching conflict management

CHECKLISTS are helpful in human resource planning for determining:

 common project roles and responsibilities

 team ground rules
 typical competencies and training programs
 reward ideas
 safety considerations and compliance issues

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Project management plan input enables the project team to identify all
required roles and responsibilities. It includes activity resource
requirements, plus project management activities, such as:

 risk management
 quality assurance
 procurement

ACTIVITY RESOURCE REQUIREMENTS are used to determine human needs

for the project. Preliminary requirements for people and team member
competencies are refined during the human resource planning process.

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TOOLS & TECHNIQUES USED FOR HUMAN RESOURCES PLANNING:

ORGANIZATIONAL CHARTS AND POSITION DESCRIPTIONS are hierarchical,

matrix, or text-oriented formats that ensure each work package has an
unambiguous ‘owner’ and that all team members clearly understand their
roles and responsibilities, and how they fit into the organizational structure
and team.

THE TRADITIONAL HIERARCHICAL-TYPE ORGANIZATIONAL CHART shows

positions and relationships in a top-down format. Charts may be broken
down to show work, resources, or the organization.

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TOOLS & TECHNIQUES USED FOR HUMAN RESOURCES PLANNING:

WBS (WORK BREAKDOWN STRUCTURES) are organizational breakdown

structures primarily designed to show how project deliverables are broken
down into work packages. They provide a way of displaying high-level areas
of responsibility.

ORGANIZATIONAL BREAKDOWN STRUCTURES (OBS) are primarily designed to

show an organization's existing departments, units, or teams, and the
project activities or work packages listed under each department. A
department sees all of its responsibilities.

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RESOURCE BREAKDOWN STRUCTURES (RBS) are organizational breakdown
structures designed to show project resources. For example: all welders and
welding equipment used in different areas, or excavation crews and dozers,
backhoes, etc. used by different crews. RBS contains more resource categories
than human resources.

MATRIX-BASED RAM (RESPONSIBILITY ASSIGNMENT MATRIX) shows relationships

between work to be done and team members. High-level RAM shows project
team groups or units and what WBS component(s) they are responsible for.
Lower-level RAM shows connections within a group, such as roles, authority, and
responsibilities for specific activities.

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TEXT-ORIENTED FORMATS (also called position descriptions and role-
responsibility-authority forms) are usually outlines which provide team member
responsibilities that require detailed descriptions. They provide information
about:

 responsibilities
 roles
 authority
 competencies
 qualifications

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NETWORKING is a type of informal, interpersonal, and constructive interaction
with others within an organization that impacts the effectiveness of various
staffing management options. Proactive correspondence, lunch meetings,
informal conversations, and trade conferences are typical (informal) human
resource networking activities.

ORGANIZATIONAL THEORY provides information about how teams and

organizational units react and behave. Proven principles are applied to shorten
time needed to create human resource planning outputs and to improve the
likelihood that planning will be effective.

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HUMAN RESOURCES PLAN: This is part of the project management plan and
provides direction on how the project human resources should be staffed,
managed, controlled, defined, and released.

A role designates what portion of the project a person is accountable for. Project
roles should be clear concerning authority responsibilities and boundaries to
help ensure project success.

Role, authority, responsibility, and competency are addressed when listing roles
and responsibilities needed to complete the project.

Team members operate best when their individual responsibilities match

individual levels of authority. They should be permitted to:
 apply project resources
 make decisions
 sign approvals
TRAINING, HIRING, SCHEDULE CHANGES, OR SCOPE CHANGES may be initiated
when a team member does not possess the required competencies to complete
project activities.

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A PROJECT ORGANIZATION CHART may be formal or informal and graphically
displays project team members and their reporting relationships, based on the
needs of the project.
PROJECT
MANAGER

LEAD LEAD LEAD LEAD

THE STAFFING MANAGEMENT PLAN, which is a subset of the project management

plan, describes when and how human resource requirements will be met. It may
be formal or informal, detailed or broadly based on the needs of the project. It is
continually updated during the project. The staffing management plan includes
necessary time frames for project team members and acquisition activities.

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When planning the acquisition of project team members, the project manager
must consider:

 where human resources will come from (internally or externally)

 the location of the work (centrally located or remote) and associated
costs of expertise required
 if the organization's human resources will provide assistance to the
project management team, and how much.

A RESOURCE HISTOGRAM is a charting tool (bar chart) used to chart the

number of hours the department, person, or team will need each week or month
over the life of the project. A resource histogram is a type of Resource Calendar.

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A STAFF RELEASE PLAN determines the method and timing of releasing team
members. Having a plan leads to smooth project phase transitions and
improved staff morale.

TRAINING NEEDS: This plan helps team members get needed certifications to
support their ability and gain the needed training to complete the project.

To be effective, a PLANNED RECOGNITION AND REWARDS SYSTEM should be

based on activities and performance under a person's control. Clear criteria for
rewards and a planned system will promote and reinforce desired behaviors.
The Staffing Management Plan must also include strategies for being in
compliance with government regulations, union contracts, etc. and must also
include safety policies and procedures to protect team members from dangers.

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The project manager or the management team is responsible for influencing
others in order to provide the necessary human resources for a project. If the
necessary people are not acquired, success of the project is in jeopardy.

Projects schedules and budgets may be affected as well as customer satisfaction

and quality. If the appropriate people are not available for a project due to
constraints, economic factors, time, etc., the project manager or team must
assign other resources, possibly with lower competences, as long as this meets
project guidelines and criteria.

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In this task, the project manager develops a communication plan using the
project organization structure and external stakeholder requirements.

The objective of this task is to manage the flow of project information.

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PROJECT COMMUNICATIONS MANAGEMENT uses processes necessary to ensure
timely and appropriate generation, collection, distribution, storage, retrieval, and
disposition of project information. The following processes are included:

PLAN COMMUNICATIONS: is the communication management process that

determines the information and communication needs of project stakeholders.

MANAGE COMMUNICATIONS: is a management process which focuses on making

information available to project stakeholders in a timely manner. Effective
distribution of information depends on the project manager's and project team's
communication skills. Communicating involves writing, listening and speaking.

CONTROL COMMUNICATIONS: Involves collecting and disseminating

performance information through status reports, progress measurements, and
forecasting.

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The communication skills necessary for general and project management include
the following:

 actively and effectively listening

 questioning in order to probe ideas and understand better
 increasing the team’s knowledge and effectiveness by educating
 identifying and confirming information by fact-finding
 setting and managing expectations
 persuading a person or organization to act
 achieving acceptable agreements between parties by negotiating
 resolving conflict
 recapping, summarizing and identifying the next steps

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COMMUNICATIONS PLANNING input includes:

 communications technology (an enterprise environmental factor)

 organization process assets of lessons learned
 a knowledge base and historical information
 stakeholder register
 project management plan

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LESSONS LEARNED AND HISTORICAL INFORMATION inputs to the
communications planning process provide decisions and results based on
previous similar projects.

THE PROJECT SCOPE provides a documented basis for future project decisions,
and confirms a common knowledge of project scope among shareholders.

PROJECT MANAGEMENT PLAN CONSTRAINTS that might become relevant

considerations during communications planning include:

team members situated in different geographic locations

incompatible communication software versions
limited communications technical capabilities

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TOOLS & TECHNIQUES USED DURING COMMUNICATIONS PLANNING:

THE COMMUNICATIONS REQUIREMENTS ANALYSIS results in the project

stakeholders' information needs. These results are defined by the type, format,
and the analyzed value of the stakeholders' information needs.

The number of potential channels is an indication of the complexity of the

project's communications, which should be considered by the project
management team during the communications requirements analysis.
Determining the number of potential communication channels becomes a
necessary part of the planning process.

To determine the total number of potential communication

channels on a project (n= number of participants):
Formula: n(n-1) ÷ 2

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The calculated results help the project manager determine:

 the amount of potential communication channels for any given

project
 how many channels there are
 who will communicate with whom
 who will receive what type of information

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Aside from stakeholder information, other information necessary to effectively
determine project communications requirements includes:

 the organizational charts

 The project organization and stakeholder responsibility
relationships
 group disciplines and specialties
 logistics (on-site/virtual locations)
 internal and external communications

COMMUNICATION TECHNOLOGY FACTORS which might impact the project

include:

 anticipated urgent needs for information

 the current availability of technology and availability over the
project life cycle
 the project environment and project team's needs
 the level of expertise of the staff to operate the communications
systems

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COMMUNICATION SKILLS are related to, but are not the same as, management
communications. Communications may be formal, informal, written, verbal,
electronically transmitted, or face-to-face. They include:

 technology transactions
 feedback transactions
 listening, verbal, written, action, or body language transactions

What media to use depends on the situation.

SENDER-RECEIVER MODELS are communication knowledge bodies that include

feedback loops and barriers to communication.

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EFFECTIVE COMMUNICATION is a cyclical process that involves and inspires
activity. The initiator of the message is the sender, who transmits it through
a channel, to the receiver.

SENDER CHANNEL RECEIVER

(receiver) Noise (sender)
FEEDBACK

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FEEDBACK is essentially intended to change messages. Barriers block
messages or make them ineffective.

PRESENTATION TECHNIQUES are communications that use body language and

visual aids.

MEETING MANAGEMENT TECHNIQUES include agenda preparation and conflict

management and resolution.

A BASIC COMMUNICATIONS MODEL illustrates how ideas and information are

sent and received between two parties. It includes components of:

 encoding
 decoding
 conveyance
 feedback
 noise

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ENCODING involves the sender’s choice of media used to transmit the
message to the receiver. Media may be written, verbal, technological, or any
number of high-and low-levels of media.

DECODING consists of translating the verbal or written parts of the message

into a form that can be understood.

MEDIUM is the method used to convey the message. It may be a telephone call
or electronic transmission or other communication means.

COMMUNICATION CHANNELS are the medium that carries the message

between sender and receiver. Channels may be air waves, between two people
engaged in face-to-face conversation, a telephone, written document, or
video-conferencing.

The action taken by the receiver that indicates the message has been decoded,
understood, and is being replied to by the receiver is THE RESPONSE.

ACKNOWLEDGEMENT, on the other hand, means the receiver signals receipt of

the message but is not necessarily in agreement with the message.

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NOISE is anything that interferes with transmission or impairs understanding. It is
the internal as well as external interference with the interpretation of the message
by the receiver. Internal noise may be the receiver’s thoughts, feelings,
emotions, the situation or self-concept. External noise includes sounds and
dialogue which hamper hearing what is said.

BARRIERS TO EFFECTIVE COMMUNICATION may be due to internal as well as

external words and noise, as well as:

 one-way communication channels, which place the responsibility for

the message entirely on the listener
 criticism or sarcasm
 bias or generalizing
 hidden agendas, which hamper problem-solving

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GROUPTHINK is a communication barrier commonly found in teams or groups. It is
a conformance to the values or standards of a group. Project managers must
realize that not all conflict is bad, and too much conformity within the project
team can result in too much emphasis on agreement and accord.

Groupthink conformity tends to lead to member stagnation. Groupthink is best

managed by maintaining a positive and productive environment and proactively
controlling good and bad conflict.

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THE COMMUNICATION MANAGEMENT PLAN is an output of communications
planning. It contains:

 information which must be communicated

 who is responsible for sending and for receiving the information
 how, and how often the information is conveyed
 methods for updating the plan
 project guidelines for project meetings of all types

ATTRIBUTES OF THE COMMUNICATIONS MANAGEMENT PLAN include:

 information that will be distributed to stakeholders (communications

items)
 why the information will be distributed (purpose)
 how often information will be distributed (frequency)
 information distribution timeframes (start/end dates)
 layout and transmission of information (format/medium)
 responsibility charged to each team member

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In this task, the project manager develops a procurement plan using the project
scope and schedule.

The objective of this task is to ensure that the required project resources will be
available.

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PROCUREMENT MANAGEMENT includes:
 contract administration and management
 change control necessary to administer contracts or purchase orders
 administering contracts issued by the buyer
 administering contractual obligations placed on the project team by
contract

PROCUREMENT MANAGEMENT involves the processes of:

 planning procurements
 conducting procurements
 controlling procurements
 closing procurements

A CONTRACT is a mutually binding agreement, purchase order, or subcontract

that obligates the seller to provide the specified product, service, or result and
obligates the buyer to pay for it. It is a legal relationship subject to remedy in the
courts, and reflects the simplicity or complexity of the deliverables.

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THE PURPOSE OF THE CONTRACT REVIEW AND APPROVAL PROCESS is to ensure
the language describes products, services, and results that will satisfy the
identified project need.

ACTIVELY MANAGING THE CONTRACT LIFE CYCLE and specific terms and
conditions language within the contract helps avoid, or mitigates, some identified
project risks.

Project procurement management operates within the buyer-seller relationship.

Usually, but not always, the "buyer" is within the project team, and the "seller" is
external to the project team.

Depending on the application, a seller may be a:

 contractor
 subcontractor
 vendor
 service provider
 supplier

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Depending on the buyer's position in the project acquisition cycle, the buyer
may be a:
 client
 customer
 prime contractor
 contractor
 acquiring organization
 government agency
 service requestor
 purchaser

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 During the project life cycle, the seller can be viewed first as a bidder, then as the
selected source, and then as the contracted supplier or vendor.

SELLER  Selected Source  Contracted Supplier or Vendor

If the seller is within the project team, and if the buyer is external to the project
team:

The PERFORMING ORGANIZATION = The Seller

The CUSTOMER = The Buyer.

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THE PLAN PROCUREMENTS PROCESS documents purchasing decisions for the
project, including specifying the approach for procurement and identifying
potential sellers.

THE PLAN PROCUREMENTS PROCESS includes reviewing make-or-buy decision

risks, as well as the type of contract planned in order to mitigate risks and
transferring them to the seller. It also includes consideration of potential
sellers.

THE PLAN PROCUREMENTS PROCESS determines:

 what to purchase or acquire
 when to purchase it
 how it will be purchased

If the buyer wants to exercise some degree of influence or control over

contracting decisions, they should consider who is responsible for relevant
permits and professional licenses required by legislation, regulation, or
organizational project execution policies.

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INPUTS TO THE PLAN PROCUREMENTS PROCESS include:
 requirements documentation
 scope baseline
 teaming agreements
 activity resource requirements
 activity resource estimating and cost estimates
 cost performance baseline
 project schedule
 risk register and risk related contract information
 organizational process assets
 enterprise environmental factors

When the performing organization does not have a formal purchasing or

contracting group, it is the project team that supplies resources and expertise
to perform procurement activities.

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The project team may encounter limitations due to existing procurement-related
policies, procedures, guidelines, and management systems in the performing
organization. Simple purchase orders may be limited, and purchases above a
certain value may be required to use a longer or specific form of contract. This
may result in limiting make-or-buy decisions, and require specific types or sizes
of sellers.

A multi-tier supplier system of pre-qualified sellers may be established by the

organization to reduce the number of direct sellers and establish an extended
supply chain.

Constraints limit both the buyer's and seller's options. The primary project scope
statement constraint with regard to procurement is the availability of funds.
Other constraints include available and skilled resources, delivery dates, and
organizational policies.

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Requirements, and contractual and legal boundaries constricting buyers' and
sellers' options include:

 health and safety

 performance
 intellectual property rights
 environmental
 insurance
 EEO (Equal Employment Opportunity)
 licenses and permits

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PROJECT SCOPE STATEMENT COMPONENTS providing technical issue
information to the Plan Procurements process include:
 project needs and strategies
 lists of deliverables
 acceptance criteria for the project, products, services, and results

THE PROJECT SCOPE STATEMENT, WBS, and WBS DICTIONARY provide the
relationship among all components of the project and project deliverables.
They also include detailed statements of work that identify deliverables, and
describe work within each WBS component required to produce each
deliverable.

THE PROJECT MANAGEMENT PLAN includes the risk register, which contains
risk-related information such as the identified risks, risk owners, and risk
responses.

RISK-RELATED CONTRACTURAL AGREEEMENTS are insurance and services

documents within the project management plan, which are prepared to specify
each party's responsibility for specific risks.

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TOOLS & TECHNIQUES USED IN PLAN PROCUREMENTS:

THE MAKE-OR-BUY management technique is used to determine if a particular

product or service can be produced by the project team, or needs to be
purchased.

ANY PROJECT BUDGET CONSTRAINTS are factored into the make-or-buy

decision. If a "buy" decision must be made, further decision to purchase or
rent is also made.

THE “BUY” DECISION ANALYSES INCLUDE BOTH DIRECT AND INDIRECT COSTS.
The buy-side of the analysis includes out-of-pocket costs to purchase the
product and the indirect costs of managing the purchasing process.

Decisions to purchase or rent equipment or other items for a project may be

influenced by an ongoing need for them. A near term "buy" decision to
purchase or rent an item may be based upon A MARGIN ANALYSIS. Renting or
leasing might be more cost effective from the perspective of the project.
However, a near term "buy" decision to purchase or rent an item may be cost
allocation based on the organization's possible ongoing need, and also margin
analysis.

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TOOLS & TECHNIQUES USED IN PLAN PROCUREMENTS:

A MAKE-OR-BUY LONG RANGE STRATEGY is developed when the organization

may anticipate future requirements for the purchased items. These decisions
are made regardless of current project constraints and requirements.

Make-or-buy decisions included in the procurement management plan include

decisions to buy insurance or performance bonds to address some of the
identified risks.

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TOOLS & TECHNIQUES USED IN PLAN PROCUREMENTS:

EXPERT JUDGEMENT is used to:

 develop criteria used to evaluate sellers' proposals and offers

 assess inputs and outputs from the purchase and acquisition
process

COST-REIMBURSABLE CONTRACTS involve payment (or reimbursement) to the

seller for the seller's actual costs, plus a fee, which typically represents the
seller's profit. Costs are classified as either direct or indirect. These contracts
often include incentive clauses in which the seller receives an incentive or
bonus payment if project objectives are met or exceeded.

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DIRECT COSTS ARE “HARD COSTS” incurred for the exclusive benefit of the
project. They include:

 materials
 subcontractors
 labor

Items are tracked using a unique number code for items.

INDIRECT COSTS ARE ALSO REFERRED TO AS OVERHEAD, GENERAL, OR

ADMINISTRATIVE COSTS. They are costs allocated to the project by the
project team as a cost of doing business. Indirect costs are calculated as a
percentage of direct costs.

COST-PLUS-FEE (CPF) or COST-PLUS-PERCENTAGE-OF-COST-FEE (CPPC) are

cost-reimbursable contracts that reimburse the seller for costs for performing
the contract work plus a fee calculated as an agreed-upon percentage of the
costs. The fee varies with the actual cost.

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COST-PLUS-FIXED-FEE (CPFF) contracts reimburse the seller for allowable costs
for performing the contract work plus a fixed fee payment calculated as a
percentage of the estimated project costs. The fee is fixed and does not vary
with actual costs unless the project scope changes.

COST-PLUS-INCENTIVE-FEE (CPIF) contracts reimburse the seller for allowable

costs for performing the contract work plus a predetermined fee based on
achieving certain performance objectives.

TIME AND MATERIALS contracts are hybrid contractual agreements that are
combined cost-reimbursable and fixed-price contracts based on duration of
performance and the exact quantity of items to be delivered.

THE TYPE OF CONTRACT AGREEMENT USED might be determined by

requirements:

 a buyer imposes on a seller

 of market competition and risk
 of future project acquisition by the project team

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THE PROCUREMENT MANAGEMENT PLAN OUTPUT describes how the
procurement processes will be managed, from developing procurement
documentation through contract closure.

THE PROCUREMENT MANAGEMENT PLAN includes items such as:

 the types of contracts that will be used

 who will manage providers
 who will prepare evaluation estimates
 make-or-buy decisions
 constraints and assumptions
 performance bonds and insurance contracts to mitigate
identified risks
 schedule dates

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THE CONTRACT PROCUREMENT STATEMENT OF WORK (SOW) includes:

 detailed descriptions of procurement items for prospective

sellers' information
 products, services, or results to be supplied by the seller
 project specifications and requirements
 descriptions of collateral services required (post-project
procurement support)

ADDITIONAL PLAN PROCUREMENT OUTPUTS INCLUDE:

MAKE OR BUY DECISIONS: Decisions are documented regarding which

project products, services, or results will be procured from outside the
project organization, and which will be performed internally.

PROCUREMENT DOCUMENTS, including those that used to request

proposals from potential sellers. Types of procurement documents
include Request for Information (RFI), Invitation for bid (IFB), Request for
Proposal (RFP), Request for Quotation (RFQ), invitation for negotiation,
seller initial response, and tender notice.

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Source Selection Criteria includes:

 technical capability
 understanding of requirements
 overall cost
 risk
 management and technical approach
 warranty
 financial and production capacity
 business size and type
 past performance and references
 proprietary and intellectual property rights

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In this task, the project manager develops a quality management plan using the
project scope and schedule.

The objective of this task is to ensure that the required project resources will be
available.

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THE PROJECT QUALITY MANAGEMENT PROCESS includes the activities of the
performing organization that determine quality policies and objectives for the
project to satisfy the needs for which it was undertaken. The Project Quality
Management processes include Plan Quality, Perform Quality Assurance, and Control
Quality. These processes interact with each other and may involve effort from one
or more persons or groups. Each process takes place at least once in every project
and they may overlap.

Plan Quality is the process of defining the quality requirements and standards for
the project and product and documenting how the project will show compliance.

It is the task of the project manager to identify which quality standards are relevant
to the project and determine how to satisfy them during the quality planning stage.
Specific project guidelines are required or set during the quality planning stage,
which determine standards and parameters for quality acceptance.

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PERFORM QUALITY ASSURANCE is the process involving applying planned
quality activities that ensure all processes meet quality requirements.

TO ENSURE THE PROJECT MEETS QUALITY STANDARDS, the project manager

should be informed about industry rules and regulations regarding minimal
project requirements and standards. The project manager should also be
informed about federal, state, and local laws and regulations determining
minimum acceptable requirements for the particular type of project as well as
the customer or stakeholder's requirements and expectations for the project.

CONTROL QUALITY is the process of monitoring specific project results to

determine if they comply with quality standards and to recommend changes if
necessary.

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Basic approaches to quality management are in accordance with standards set by
the INTERNATIONAL ORGANIZATION FOR STANDARDIZATION. (ISO). ISO is a non-
governmental, international standard-setting group, comprised of representatives
from numerous national standards bodies, which creates industrial and
commercial standards.

NON-PROPRIETARY APPROACHES to quality management are contained in

processes used by project managers, such as:

 TQM (Total Quality Management)

 Six Sigma
 COQ (Cost of Quality, Failure Mode and Effect Analysis)
 Design Reviews
 Voice of the Customer
 Continuous Improvement

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Non-Proprietary Quality Management Approaches:

TOTAL QUALITY MANAGEMENT (TQM) is used to track and maximize quality output
and increase customer satisfaction. It is one of the most widely used management
systems for quality control. It is effectively used to implement quality methods,
processes, and procedures throughout the total production or service process, or,
throughout the organization.

SIX SIGMA is a structured application of the tools and techniques of TQM. Six Sigma
is applied to a project to achieve strategic business results, with a 99.99966%
success rate. The Six Sigma application measures, analyzes, improves, and controls.

THE COST OF QUALITY (COQ) refers to the total costs incurred to ensure project
quality. The cost of preventing mistakes typically costs less than the cost to correct
them. CONTINUOUS PROJECT INSPECTIONS help detect mistakes that can cause
bigger and expensive problems later on.

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PREVENTION AND APPRAISAL COSTS are costs of conformance. They include
costs for quality planning, QC, and QA to ensure compliance to requirements
such as, training, QC systems, and inspections.

FAILURE COSTS, OR COSTS OF NON-CONFORMANCE are operational costs to

rework products, components, or processes that are non-compliant. Costs of
warranty work and waste and loss of reputation are included.

QUALITY is the degree to which a set of inherent characteristics fulfill

requirements.

GRADE is a category assigned to products or services having the same

functional use but different technical characteristics.

LOW QUALITY is ALWAYS a problem.

LOW GRADE is NOT always a problem.

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EXAMPLE: Vehicles can be high quality products, but low grade (limited options).
However, vehicles are not acceptable if they are low quality (cheaply made with
defects) but have many options (high grade). The project manager and project
management team are responsible for ensuring both quality and grade. Low
project quality creates the most problems during project progress.

PRECISION is a value consistency where the value of repeated measurements are

clustered and have little scatter. Precise measurements are not necessarily
accurate.

ACCURACY is the degree of correctness that the measured value is very close to
the true value. Very accurate measurements are not necessarily precise.

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Both quality management and project management focus on:

 customer satisfaction
 preventing mistakes
 management responsibilities for success
 continuous improvement using the plan-do-check-act cycle

Both quality management and project management recognize the importance

of achieving customer satisfaction by:

 understanding, evaluations, defining, and managing expectations

 conforming to requirements (the project must produce what it
said it would produce)
 Ensuring product or service fitness (satisfying needs).

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The basis for quality improvement is the plan-do-check-act cycle. TQM and Six
Sigma also improve the quality of the project's management and the project's
product quality.

Stakeholder stated and implied needs and expectations are critical elements of
quality management which are needed to develop project requirements.

Project quality applies to all projects. But product quality measures are specific
to a particular project or projects. For example, quality output on a bridge
construction project is measured differently than quality output for products
from a chocolate factory!

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QUALITY PLANNING involves identifying which quality standards are relevant to
the project and
deciding how to satisfy and document them.

QUALITY PLANNING is a key process during planning and during development of

the project management plan. It is performed in parallel with other planning
processes in the event cost or schedule adjustments become necessary, such as
those needed to match required changes with identified quality standards.

A FUNDAMENTAL PRINCIPLE OF MODERN QUALITY MANAGEMENT IS:

Quality is planned-, designed-, and built-in, NOT inspected-in.

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Enterprise environmental factor inputs into quality management include
government agency rules, regulations, standards, and guidelines specific to the
application area that might affect the project.

THRESHOLDS are part of the project scope statement and define cost, time, or
resource values as parameters. Exceeding thresholds may require an exception
report to be filed.

PLAN QUALITY – INPUTS:

Scope Statement: The scope contains a description of the project, the major
deliverables of the project, and the acceptable project criteria. The product
scope description will contain details of the technical issues and concerns that
my affect quality planning.

WBS: The WBS identifies the project deliverables, the work packages, and the
control accounts.

The WBS Dictionary is used to define technical information for WBS elements.

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Stakeholder Register: identifies stakeholders with an interest in or impact of quality

Cost Performance Baseline: the time phase used to measure cost performance

Risk Register: holds information on threats and opportunities that could impact
quality

Enterprise Environmental Factors: include Governmental agency regulations and

operating conditions of the project that could affect quality

Organizational Process Assets: organizational guidelines, historical databases,

things learned from past projects, and an endorsed quality policy that sets the
intended direction of those implementing the project with regards to quality

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ACCEPTANCE CRITERIA can significantly increase or decrease project quality
costs. These criteria are performance requirements and essential conditions,
which must be achieved before deliverables are accepted.

FORMAL ACCEPTANCE signifies the project deliverables meet specifications

and requirements, and that they have been accepted by the customer.

The benefit of meeting quality requirements is less rework, which results in:

 higher productivity
 lower costs
 increased stakeholder satisfaction

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BENCHMARKING involves comparing actual or planned project practices to those
of other projects to generate ideas for improvement. Benchmarks serve as a
basis to measure performance.

TOOLS & TECHNIQUES USED IN QUALITY PLANNING:

DESIGN OF EXPERIMENTS (DOE) is a statistical method that helps optimize

products and processes by identifying which factors may influence specific
products or processes under development or production. It provides a statistical
framework for systematically changing all important factors, instead of
changing them one at a time.

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COSTS OF QUALITY are those costs incurred as a result of proactive prevention
of nonconformance, noncompliance, and failing to meet requirements which
result in rework.

BRAINSTORMING AND LATERAL THINKING are techniques group team

members use to identify risks, or generate alternative approaches to performing
work and executing the project. Each member's ideas are recorded for later
analysis.

FLOWCHARTING creates a system process diagram that provides a step-by-

step view into process inputs, process actions, and outputs. There are many
styles, but all process flowcharts show activities, decision points, and the order
of processing. They are helpful to the project team in that they help the team
anticipate quality problems that might occur.

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PERFORMING AN INDEPENDENT QUALITY MANAGEMENT PEER REVIEW mitigates
impacts from cost and schedule overruns and reworking.

A METRIC is an operational definition of what something is and how it is

measured. Quality metrics are used in QA and QC processes. QUALITY METRICS
include defect density, failure random availability, reliability, and test coverage.

A MEASUREMENT is an actual value. A measurement in the context of quality

metrics is specific and goes beyond the value of management quality. For
example, the management team determines when an activity should begin and
end, and if the activities or only certain deliverables will be measured.

QUALITY CHECKLISTS are "Do this!" or "Have you done this?" directives that verify
a set of required component-specific steps have been performed.

QUALITY CHECKLISTS are used in quality control processes. They are generally
standardized to ensure consistency for frequently performed tasks.

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PROCESS IMPROVEMENT PLANS (PIPs) are subsidiaries of the project management
plan that detail the steps for analyzing processes that facilitate the identification of
waste and non-value added activity. The PIP increases customer satisfaction.
PROCESS METRICS maintain control over the status of processes.

PROCESS CONFIGURATION provides the project manager with a flowchart of

processes to aid in analysis. Interfaces are identified.

PROCESS BOUNDARIES describe the purpose, process start- and end-dates, inputs
and outputs, stakeholders and owners.

THE PERFORMANCE MEASUREMENT BASELINE is the basis for measuring and

reporting quality performance. It is part of the quality baseline that records the
quality objectives of the project.

QUALITY ASSURANCE (QA) is the process of auditing the project quality

requirements to ensure the project employs processes necessary to meet
requirements and quality standards.

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In this task, the project manager develops a change management plan outlining
how changes will be handled.

The objective of this task is to track and manage changes.

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The project management plan, project scope statement, and deliverables are
maintained by continuously managing changes. This is done by rejecting or
approving changes and incorporating those approved into a revised baseline.

The Project Manager incorporates integrated change control into his/her

activities by:

 identifying that a change needs to occur or has occurred

 ensuring that change is approved prior to implementation
 managing the number of change requests, and reviewing all
corrective and preventive actions to reduce the number or changes

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Proposed changes may require revisions to:

 cost estimates
 schedules
 resources
 risk response alternatives
 the project scope
 the PMP
 project deliverables

Configuration management in conjunction change control provides a

standardized, effective, process for centrally managing project changes.

A project-wide configuration management system with change control includes

identification, documentation, and control of changes to the baseline.

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Configuration management with change control provides a standardized,
effective process for centrally managing project changes.

The primary reasons for using the project-wide configuration management

system with change control are to:

 establish a method to assess the change value and impact

 communicate changes to the team

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In this task, the project manager develops a risk management plan where he or
she identifies, analyzes, and priorities project risks and defines risk response
strategies.

The objective of this task is to manage uncertainty throughout the project life
cycle.

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THE RISK MANAGEMENT PLAN defines when and how often the risk management
process will be performed throughout the project life cycle, and establishes the
risk management activities to be included in the project schedule. It includes:

 basic plans (methodology) for conducting risk management activities

 risk roles and responsibilities
 risk cost elements and schedule activities for inclusion in the project
budgets and schedule.

The risk management plan methodology includes approaches, tools, and data
sources used to perform project risk management.

The risk management plan budgeting category determines what resources and
estimated costs are needed for risk management. These need to be included in
the project cost baseline.

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THE RISK BREAKDOWN STRUCTURE (RBS) is a previously prepared hierarchical
categorization of identifiable risks. Identified project risks are arranged by risk
category and subcategory which identify the areas and causes of potential risks.

The risk management plan reports describe the content and format of the RISK
REGISTER. The risk register defines how the outcomes of the process will be
documented, analyzed, and communicated.

TRACKING DOCUMENTS show how all elements of risk activities will be recorded for
current project and future project needs, as well as lessons learned. Tracking also
helps determine if and how risk management processes will be audited.

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RISKS ARE PRIORITIZED according to their potential impact to meet project
objectives.

RISK CATEGORIES provide a structure that ensures a comprehensive process

of identifying risk to a consistent level of detail. Previously prepared
categorization of typical risks may be used. Risk category templates
summarize the risk type, probability, and impact by type of objectives.

THE PROBABILITY AND IMPACT MATRIX CHART is used to numerically

prioritize risks for each project objective. It shows specific combinations of
probability and impact that lead to a risk being rated as "high," "moderate," or
"low," based on importance set by the organization. (Sample Chart Follows)

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 SAMPLE PROBABILITY AND IMPACT MATRIX

PROJECT VERY LOW LOW MODERATE HIGH VERY HIGH

GOALS (0.05) (0.10) (0.20) (0.40) (0.80)

Negligent time < 10% time 10%-20% time 20%-40% time > 40% time
TIME increase increase increase increase increase

Negligent cost < 10% cost 10%-20% cost 20%-40% cost > 40% cost
COST increase increase increase increase increase

Degradation Minor defects Defects require Quality Product end

QUALITY barely detected detected sponsor approval unacceptable is a loss

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RISK IDENTIFICATION is the process of determining which risks might affect the
project. Characteristics of each anticipated risk are documented.
RISK IDENTIFICATION IS AN ITERATIVE PROCESS because new risks become known
as the project progresses. The project manager, project team members, the risk
management team and experts, outside customers, end-users, stakeholders, and
other project managers are responsible for identifying risks. However, all project
personnel should be encouraged to identify risks.
UNCERTAINTY found in project assumptions should be evaluated as a potential
cause of risk.

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IDENTIFIED RISKS are those that are known and not surprising, as well as root
causes that are known. Assumptions about how these impact the project
objectives or ultimate outcome may be uncertain. They can be planned for. ROOT
CAUSES of risk are those fundamental conditions that give rise to an identified
risk.
ENTERPRISE ENVIRONMENTAL FACTOR INPUTS USED IN RISK IDENTIFICATION
include published information such as commercial databases, academic studies,
benchmarking, and industry studies that help identify risks.
ORGANIZATIONAL PROCESS ASSET INPUTS USED IN RISK IDENTIFICATION include
information from previous project files, as well as lessons learned and actual data.

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KEY RISK MANAGEMENT PLAN INPUTS which contribute to the risk identification
process include: roles and responsibilities, provisions for risk management
activities in the budget and schedule, and categories of risk. These are expressed
in an RBS.

TOOLS & TECHNIQUES USED IN IDENTIFYING RISK:

STRUCTURE DOCUMENTATION REVIEWS can provide risk information. The quality

of the plans and consistency between those plans and project requirements and
assumptions can indicate risks for the project.

BRAINSTORMING is an information gathering technique that involves a

multidisciplinary set of experts, not on the team, who develop a comprehensive
list of project risks. The brainstorming group uses categories of risk, such as a
risk breakdown structure (RBS), as a framework for identifying risks. Risks are then
categorized by type of risk.

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THE DELPHI TECHNIQUE is a way of reducing bias in the data through a
process that keeps any one person from having too much influence on the
outcome. Project risk experts participate in the process anonymously.

A primary source of risk identification in data gathering is INTERVIEWING.

Interviewing collects input from stakeholders, participants, and project
subject matter experts.

THE SWOT (strengths, weaknesses, opportunities, and threats) ANALYSIS

examines internal and external factors to reveal negative factors which can
be transformed into positive factors. Strengths and weaknesses are typically
internal factors, while opportunities and threats are external factors. A SWOT
analysis is subjective, and should only be used as a guide, and with other
tools.

ROOT CAUSE IDENTIFICATION is an inquiry into the primary causes of a

project's risk. Effective responses can be developed if the root cause is
addressed.

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CHECKLIST ANALYSIS consists of developed risk identification checklists based on
historical information and knowledge accumulated from past similar projects. The
lowest level RBS may be used as a risk checklist.

A tool that identifies project risks based on inaccuracies, inconsistencies, or

incompleteness, is ASSUMPTION ANALYSIS. It explores the validity of assumptions
as they apply to the project.

RISK DIAGRAMMING TECHNIQUES include:

 system or process flowcharts

 cause-and-effect diagrams
 influence diagrams

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SYSTEM OR PROCESS FLOWCHARTS show how elements of a system interrelate
and the mechanism of causation, as well as interrelations that can cause risks.

ISHIKAWA OR FISHBONE DIAGRAMS are skeletal diagrams that are useful for
identifying causes of risks.

INFLUENCE DIAGRAMS are graphical representations of situations showing

causal influences, time ordering of events, and other relationships among
variables and outcomes.

Components from risk identification and other risk management processes are
contained in the RISK REGISTER DOCUMENT, which becomes part of the project
management plan. The risk register has information on identified project risks
which must be considered when producing estimates of activity durations or
adjusting activity durations for risks. It contains information from risk
identification, lists of identified risks and potential responses, root causes, and
updated risk categories.

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QUALITATIVE RISK ANALYSIS is the process of prioritizing risks according to their
probability of occurrence and impact to the project. The quality and credibility of
the qualitative risk analysis process requires varying levels of the risk
probabilities and impacts. They are prioritized for later analysis or action.

Performing qualitative risk analysis is a quick and cost-effective means of

prioritizing for risk response planning. It also lays the foundation for quantitative
risk analysis.

QUALITATIVE RISK ANALYSIS includes methods that prioritize identified risks.

Focusing on high-priority risks can help improve project performance.

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Assessments used to qualitatively prioritize identified risks include:

 assessing the risk according to the probability the risk will occur
 assessing the corresponding impact on project objectives in
conjunction with time frame
 assessing the risk tolerance of project constraints of cost, schedule,
scope, and quality

Projects using state-of-the-art or first-of-its-kind technology, or which are

more complex, have a higher degree of uncertainty. Recurrent or common
project types have better understood risks.

The risk data quality assessment requires unbiased and accurate data. The
analysis of data involves examining the accuracy, quality, reliability, and integrity
of the risk data. During the qualitative risk analysis, DATA BIASES ARE
CORRECTED:

 by defining levels of probability and impact

 through expert interviewing
 by evaluating time-criticality of risk-related actions and the quality
of available information.

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THE QUALITATIVE ANALYSIS RISK MANAGEMENT PLAN includes roles and
responsibilities for conducting risk management, budgets, and schedule
activities for risk management. Additionally, risk categories, defined
probability and impact, the probability matrix, and revised stakeholders' risk
tolerances and enterprise environmental factors are included.

TOOLS & TECHNIQUES USED IN QUALITATIVE RISK ANALYSIS:

THE RISK PROBABILITY ASSESSMENT investigates the likelihood that each specific
risk will occur. Risks may be assessed in interviews or meetings with
participants selected for their familiarity with the risk categories. The risk
impact assessment investigates the potential positive as well as negative effects
on a project objective such as time, cost, scope or quality. Each risk is evaluated
for its importance and priority for attention by looking it up on the probability
and impact matrix. Probability and impact are rated either by description or
numerically.

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A RISK URGENCY ASSESSMENT is performed when there are risks requiring near-
term responses. Priority indicators can include: the time to effect a risk response,
symptoms, warning signs, and risk rating.

THE IMPACT SCALE REFLECTS THE SIGNIFICANCE OF the negative threats, or the
positive environment for opportunities, on each project objective. Risks are
prioritized according to their impact on meeting the project goals.

Impact scales are specific to:

 the potentially impacted objective

 type and size of the project
 organizational strategies and sensitivity to particular impacts
 its financial state

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RELATIVE IMPACT SCALES rank risk impact from "very low" to "very high"
reflecting increases in extreme impacts, as defined by the organization.

LINEAR SCALES indicate the degree of risk impact, while NON-LINEAR SCALES
represent the organization's desire to avoid high-impact threats or maximize
high-impact opportunities, regardless of whether they have relatively low
probability.

QUANTITATIVE RISK ANALYSIS is the process of numerically analyzing the effect

on overall project objectives resulting from identified risk.

QUANTITATIVE RISK ANALYSIS USES MONTE CARLO SIMULATION AND DECISION

TREE ANALYSIS to analyze the effects of prioritized risk events. Given the risk,
these methods quantify:

 possible outcomes
 project success
 achievable objectives
 the best project management decisions

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TOOLS & TECHNIQUES USED IN QUANTITATIVE RISK ANALYSIS:

THE DATA GATHERING AND REPRESENTATION INTERVIEWING TECHNIQUE used to

quantify the probability and impact of risks on project objectives uses information
that depends on the type of probability distributions employed. Information is
gathered on the low, high, and most common scenarios.

PROBABILITY DISTRIBUTIONS quantitatively represent the uncertainty in values,

such as durations of schedule activities and costs of project components.

DISCREET DISTRIBUTIONS are probability distributions which may be used to

represent uncertain events.

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UNIFORM DISTRIBUTIONS are probability distributions which may be used when
there is no obvious value that is more likely than any other, between high and low
limits, such as in the early concept stage.

SENSITIVITY ANALYSES are commonly used quantitative risk analysis techniques

which help determine which risks have the greatest potential impact on the
project. They are executed by examining the extent of the uncertainty of each
project element and how it affects the objective being examined. This is done
while all other uncertain elements are held at their baseline values.

DECISION TREES help managers visualize the decision making process. A decision
tree output shows at what point decisions are made, and where alternative
decisions, or changes, might occur. The tree begins with a decision that must be
made. Options are laid out, and options, risks, and change modes are evaluated
and possible outcomes investigated. (Sample Decision Tree Follows)

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 SAMPLE DECISION TREE

RESULTS
BENEFIT
COST SAVINGS
RENT

TIME AVAILABILITY
DRAW
BACK
RENT OR BUY
EQUIPMENT
?
BENEFIT TAX BENEFIT

BUY

DRAW MAINTENANCE
BACK

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RISK RESPONSE PLANNING involves the project manager and management team
discussing and developing options and actions to encourage opportunities for
successful project completion. It is also intended to help reduce threats to
achieving the project's objectives.

RISK RESPONSE PLANNING addresses risk by:

 priority
 inserting resources into the budget, the schedule, and project
management plan

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RISK RESPONSE INPUTS include:

 the risk register

 a near-term response risk list
 a list of risks for additional analysis
 qualitative analysis trends and root causes
 a risk management plan, which includes components of risk
thresholds for low, moderate, and high risks
 time and budget required to conduct project risk management
 risk analysis definitions
 roles and responsibilities

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TOOLS & TECHNIQUES USED TO PLAN RISK RESPONSE:

Strategies typically used to plan for risks which have negative impacts on
project objectives include:

 risk avoidance (changing the project management plan to avoid

threats)
 risk transference (shifting impact of threat and response to a third
party)
 risk mitigation (early action to reduce probability)

Strategies typically used to handle risk which have positive impacts on project
objectives include:

 risk exploitation (to ensure the opportunity is realized)

 risk sharing (allocating ownership to a third party who can best
capture the opportunity for the project)
 risk enhancing (modifies the size of an opportunity)

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In this task, the project manager presents the project plan to the key
stakeholders.

The objective of this task is to obtain approval to execute the project.

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STAKEHOLDER MANAGEMENT PLANNING is the process of identifying appropriate
management strategies and approaches to effectively engage stakeholders and
manage their expectations throughout the life of the project.

The Stakeholder Management Plan provides a clear, actionable plan to interact

with the project stakeholders, ensuring the project success.

The following activities are carried out during the stakeholder management
planning process:

 Identifying how the project will impact the stakeholders

 Identifying appropriate ways to effectively engage stakeholders
 Identifying stakeholders’ expectations and developing strategies that
ensure these expectations will be met.
 Building and strengthening relationships with the stakeholders
 Continuously looking for changes in project stakeholders and their
interests and expectations, and adjusting the stakeholder
management plan accordingly.
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Inputs to the Plan Stakeholder Management process include:

 project management plan

 stakeholder register
 enterprise environmental factors
 organizational process assets

Tools & Techniques of the Plan Stakeholder Management process include:

Expert Judgment: provided by the sponsor, subject matter experts, senior

management and team members, functional managers and consultants. All can
help developing a comprehensive and effective stakeholder management plan.

High engagement and involvement of senior and influential stakeholders at the

beginning of the project is very crucial in setting the right tempo and direction
for the project. This also helps clearing any initial obstacles.

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Meetings: are very effective to develop an understanding and resolve issues and
conflicts. Meetings held with experts and senior stakeholders help in accurately
defining the required stakeholder engagement levels and requirements. Meetings
are also used to draft, verify and finalize the stakeholder management plan.

Analytical Techniques: These techniques map the current and desired future
engagement level of all stakeholders. They help define a roadmap to influence
the engagement levels from the current to the desired state. The stakeholder
engagement level can be classified as:
 Unaware: stakeholders who are unaware of the project and potential
interests
 Resistant: stakeholders that are aware of the project but either have
negative interests with the project or are resistant to change
 Neutral: stakeholders that are aware of the project but neither support
nor resist the project
 Supportive: stakeholders that are aware of the project and have high
interests in the project and are supportive to change.
 Leading: stakeholders that are aware of the project and are actively
engaged in ensuring the project success.
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Stakeholders Engagement Assessment Matrix documents the current and the
desired stakeholder engagement levels. This helps in identifying the gaps and
planning effective strategies to remove these gaps.

Plan Stakeholder Management outputs:

The Stakeholder Management Plan is a subsidiary plan of the project

management plan. Identified stakeholder management strategies, engagement
level requirements, and stakeholder management and communications plans are
documented. The stakeholder management plan typically includes:

 Desired and current stakeholder engagement levels

 Impact of changes on stakeholders
 Relationships and overlap between the stakeholders
 Information and communication requirements
 Frequency of information distribution
 Methods and approaches for fine-tuning the stakeholder management
plan.

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Project Document Updates that often occur during this process include:

 updates to the project schedule

 updates to the communications management plan
 updates to the stakeholder register

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The Project Management Plan defines how the project is:
 executed
 monitored
 controlled
 closed

It may include subsidiary management plans.

The Project Management Plan documents:

 planning process outputs, such as how changes will be monitored and
controlled
 communication techniques among stakeholders
 how work will be executed to accomplish objectives
 the selected project life cycle for multi-phase projects

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Subsidiary plans of a Project Management Plan include:

 schedule
 cost
 quality
 process improvement
 risk
 communications
 staffing management plans
 procurement
 scope
 requirements

The Project Management Plan is updated and revised during the Integrated
Change Control process using project management methodology, the PMIS,
and expert judgment.

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TOOLS & TECHNIQUES USED TO DEVELOP THE PMP:

The project management team uses the PMIS to aid them in developing the
project management plan. This facilitates feedback during document
development and helps control changes.

The Configuration Management System is a subsystem of the PMIS, which

includes processes for submitting proposed changes and tracking systems for
reviewing and approving proposed changes. The configuration management
system ensures quality control by supporting the audit of products or
components to verify conformance with requirements and standards.

The change control system is a subsystem of the configuration management

system. The change control system defines how deliverables and documentation
are controlled, changed, and approved.

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The project plan should be presented in writing to all stakeholders for approval,
and written sign-off should be obtained from each key stakeholder. Any
changes to the plan should utilize the configuration management system.

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In this task, the project manager conducts a kick-off meeting.

The objective of this task is to announce the start of the project to all
stakeholders in a meeting, communicating to them the project milestones and
other important information.

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In the kick-off meeting, the project manager reviews the project management
plan with the project team. He or she also discusses the roles among the team
and project expectations.

As the project team comes together, the project manager should consider the
following:

 Team members’ interpersonal skills

 Additional training the project team needs
 Team-building activities to help the team normalize and perform
 Setting ground rules
 Co-locations, allowing project team members to work together physically
 Recognition and rewards of team

The project manager could use some or all of these concepts as agenda items
for the kick-off meeting.

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 STOP!

Read the following PMBOK Sections: 4.2, 5.1 – 5.4, 6.1 – 6.6, 7.1 – 7.3, 8.1,
9.1 10.1, 11.1 -11.5, 12.1, 13.2
TAKE THE WEB-BASED TESTS ON PLANNING BEFORE PROCEEDING FURTHER.

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 Domain 3: Executing the Project
Task 1 Obtain and manage project resources
Task 2 Execute tasks as defined by the project plan
Task 3 Implement Quality Management Plan
Task 4 Implement approved changes
Task 5 Implement approved risk response actions
Task 6 Maximize team performance
Knowledge and skills related to this domain include the
following:
• Project monitoring tools and techniques
• Elements of statement of work
• Interaction of WBS elements within project schedule
• Project budgeting
• Quality standards tools
• Continuous improvement processes

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Executing the project involves skills in managing the project tasks and project
team.

The following knowledge and skills are specific for this domain and are
necessary to possess in order to execute the tasks in Domain 3:

 Project monitoring tools and techniques

 Elements of a statement of work
 Interaction of work breakdown structure elements within the project
schedule
 Project budgeting tools and techniques
 Quality standards tools
 Continuous improvement processes

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Directing and managing project work is the integrative process that performs
activities outlined in the project scope statement.

Activities and output include:

 project deliverables
 activities to accomplish requirements
 acquisition and use of resources
 staffing, training and managing the team
 implementation of methods and standards
 communication
 project data
 change requests
 corrective and preventive actions
 vendor management
 lessons learned and process improvements

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Products, services, and results of the project are in the form of tangible
deliverables such as buildings, roads, etc. and intangible deliverables such as
training.

Part of the project execution process involves collecting work performance

information about the completion status of the deliverables. This information is
fed into the performance reporting process.

APPROVED CHANGE REQUESTS are documented policies, procedures, costs,

schedules, and other PMP modifications that alter the contract project scope.
Approved changes shall be implemented by the project team.

If changes are necessary they are typically requested during either the project
execution and/or monitor and control phases.

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APPROVED CORRECTIVE ACTIONS are documented, authorized
directions intended to bring future project performance into compliance
with the project management plan. They are implemented by the project
management team to reduce the consequences of project risks.

APPROVED PREVENTIVE ACTIONS are documented and authorized

directions intended to reduce the probability of negative consequences
associated with project risks.

APPROVED DEFECT REPAIRS are documented, authorized requests for

product defect correction during quality control and audit processes.

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In this task, the project manager obtains and manages project resources using
the procurement plan.

The objective of this task is to engage resources to ensure successful project

execution.

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When the project management team has input into project assignments, they
typically consider:

 who is available
 when they are available
 their competency level and experience
 their interest in the project
 how much they will be paid or how much it costs to contract from
outside the organization.

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TOOLS & TECHNIQUES USED IN PROJECT TEAM ACQUISITION:

Pre-assignment of project team members occurs:

 if the project is a result of specific people being promised

(part of a competitive bid proposal)
 if the project is dependent on the expertise of particular
persons
 if some staff assignments are defined within the project
charter

Negotiating staff assignments on projects is common. The project

management team may negotiate with a functional manager to ensure
their project receives competent staff for the duration of the project.
They can also negotiate with other project management teams to
appropriately assign scarce or specialized resources.

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Consultants or subcontractors may be hired when the organization lacks the in-
house staff needed to complete the project. Government organizations often
put entire contracts out to competitive bid, to keep in-house staffing size down.

A VIRTUAL TEAM is a group of people who share a goal, and who fulfill their
roles with little or no face-to-face meetings or interaction. Electronic
communication (e-mail, video conferencing, etc.) makes virtual teams feasible.

GOOD COMMUNICATION is the most important factor to have if a virtual team is

to be successful. Good communication is even more important in a virtual team
environment than it is in traditional environments. To ensure success:
 expectations must be clear
 protocols for conflict resolution must be developed
 an effort must be made to include people in decision making as well
as credit for successes

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THE VIRTUAL TEAM FORMAT reduces the organizational overhead costs of
providing physical work space. Specialized experts located outside the area may
be added to a project team. Team members may work different shifts/hours,
handicapped members may be included, and projects that might have been
delayed due to travel expenses may proceed.

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The project has been staffed when:

 appropriate people have been assigned to work on it

 a project team director and members are inserted into the project
management plan and organizational charts and schedules
 memos to team members are sent with an official notification of
project schedule

The purpose of having resource availability documents is to create a reliable

final schedule. The final schedule is based on the time period each team
member can work on the project. Schedule conflicts, vacation time, and
commitments to other projects are taken into consideration.

The staffing management plan may need to be updated when people filling
the project roles and responsibilities may have changed from the original
plan. Changes in the staffing management plan may be due to people not
"fitting" their originally assigned role, or due to promotions, illnesses,
retirement, performance issues, or changes in workload.

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THE CONDUCT PROCUREMENTS PROCESS:

 obtains seller responses

 selects the seller
 awards the contract

THE CONDUCT PROCUREMENTS PROCESS inputs include:

 procurement documents
 source selection criteria
 project management plan
 seller list and seller proposals
 make-or-buy decisions
 organizational process assets
 teaming agreements

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Plan contracting risk-related contractual agreements include insurance
agreements and services, and other prepared items that specify each
party's responsibility for specific risks (should they occur).

TOOLS & TECHNIQUES USED IN CONDUCT PROCUREMENTS:

STANDARD PROCUREMENT FORMS may be any of the following:

 non-disclosure agreements
 evaluation criteria checklists
 standard contracts
 standard descriptions of procurement items
 standardized versions of all parts of the needed bid documents

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Buyer and seller organizations performing intellectual property
transactions ensure non-disclosure agreements are approved and
accepted before disclosing any project specific intellectual property
information to the other party.

 EXPERT JUDGEMENT is used to evaluate seller proposals

 ADVERTISING is used to identify potential sellers
 INTERNET SEARCHES are used to identify products and sellers

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PROCUREMENT DOCUMENTS are primarily used to elicit proposals from
prospective sellers.

COMMON TYPES OF PROCUREMENT DOCUMENTS include:

 invitations to bid
 requests for quotation
 tender notices
 requests for proposal
 invitations for negotiations
 contractor initial responses

Procurement documents are intended to facilitate an accurate and complete

response from each prospective seller and also facilitate an evaluation of the
bids. The document includes a description of the desired form of response, the
relevant contract statement of work, and any required contractual provisions.

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The complexity and level of detail of the procurement documents should be
consistent with the value of, and risk associated with, the planned purchase or
acquisition.

“BIDS,” “TENDER,” or “QUOTATIONS” are elicited when the seller selection

decision will be based on price.

PROPOSALS are received and reviewed by the buyer prior to seller selection
when technical skills or approaches are required.

A request to potential sellers to submit a proposal or bid is done:

 formally
 in accordance with the organization's policies, which may include
publishing the request in public newspapers, magazines, public
registries, or on the internet

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EVALUATION CRITERIA is often included in procurement documents and is used
to either objectively, or subjectively, rate or score proposals.

THE PURCHASE PRICE OF THE PROCUREMENT ITEM is the cost of the item plus
delivery expenses, if the item is readily available from a variety of acceptable
sellers.

OTHER CRITERIA USED TO IDENTIFY AND SUPPORT SELECTION of more complex

products or services may include:
 how well the seller's proposal fulfills the SOW needs and its cost
effectiveness
 the type and size of the seller's business
 the seller's degree of knowledge and skills, management, capital
resources production capacity, intellectual property rights,
proprietary rights, and references

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A BIDDER-, CONTRACTOR-, VENDOR-, OR PRE-BID-CONFERENCE is a meeting
with prospective sellers prior to preparation of the bid or proposal. It ensures all
prospective sellers understand the requirements.

EXISTING LISTS OF POTENTIAL SELLERS may be expanded by placing

advertisements in general or specialty publications. Some government
jurisdictions require public advertising of certain types of procurement items and
contracts.

“QUALIFIED SELLERS” are those sellers asked to submit a bid, proposal, or

quotation.

A PROCUREMENT DOCUMENT PACKAGE is the formal bid request, prepared and

sent to each seller by the buyer, defining and describing the requested
procurement. It is the basis for which a seller prepares a bid for the requested
products, services, or results.

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THE SELLER’S PROPOSAL constitutes a formal and legal offer in response to a
buyer's request.

When sellers are being reviewed and selected:

 offers are reviewed

 prospective sellers are chosen from potential candidates
 the contract is written and negotiated

Seller’s bids are reviewed for selection based on:

 cost
 execution approach or method
 risk factors

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TOOLS & TECHNIQUES USED IN CONDUCT PROCUREMENT TO SELECT SELLERS:

A WEIGHTING SYSTEM can be used to establish a negotiating sequence that

ranks all proposals by the weighted evaluation scores assigned to each
proposal. It is a method for quantifying qualitative data, to minimize personal
prejudice in seller selection. Each evaluation criteria is assigned a weight, which
is multiplied by the seller's (performance, cost, time to completion, etc) rating
for each criteria. An overall score is computed for each seller.

An independent estimate of costs is a check on proposed pricing, which is then

compared to the contract SOW. Significant variances between the independent
estimate of costs and the SOW indicate the seller did not understand or failed to
respond to the contract SOW, or the marketplace has changed.

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SCREENING SYSTEMS are used to provide a weighted ranking of sellers who
submitted a proposal, from best to worst. They involve establishing minimum
requirements of performance evaluation criteria, and then employ a weighting
system or independent estimate.

CONTRACT NEGOTIATIONS clarify the structure and requirements of the contract

so mutual agreement may be reached prior to contract signing. Contract
negotiations typically address:

 responsibilities
 approaches
 proprietary rights
 financing
 technical solution
 schedule
 payments
 price

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SELLER RATING SYSTEMS are used by many organizations in addition to
evaluation screening. Ratings are based on seller’s:

 past project performance

 quality
 delivery
 contract compliance

CONTROLLING PROCUREMENTS ensures the seller's performance meets

contractual requirements and that the buyer performs according to the
terms of the contract.

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CONTROLLING PROCUREMENTS INCLUDES:
 applying appropriate management processes to the contractual
relationship
 integrating outputs into overall project management
 reviewing and documenting how a seller is performing, or has
performed
 monitoring payments to the seller
 reviewing and documenting how well a seller is performing
 establishing required corrective actions
 providing a basis for future relationships
 managing any early contract termination
 managing contract-related changes

A CONTRACT CHANGE PROCESS includes paperwork, tracking systems, dispute

resolution procedures and approval levels to authorize changes. Changes to
the project after a contract has been signed must be formally documented and
signed by both parties. Verbal agreements and undocumented changes do not
need to be processed or implemented.

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CLAIMS are contested or constructive changes to the contract. Claims involve
situations where the buyer and seller cannot agree on compensation for, or the
occurrence of, the particular “change” in question. CLAIMS are:

 documented
 processed
 monitored
 managed throughout the contract life cycle in accordance with
contract terms

Unresolved claims may be handled with dispute resolution procedures such as

arbitration or litigation.

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Continuous PROCESS IMPROVEMENT provides the project management team with
an iterative means for improving the quality of all processes. Process
improvement is distinguished from other processes by its identification and
review of organizational business processes.

WORK PERFORMANCE INFORMATION and approved change requests are

important QA inputs that can be used in audits, quality reviews, and process
analyses.

QUALITY ASSURANCE (QA) APPROVED CHANGE REQUESTS include:

 modifications to work methods

 product and quality requirements
 the scope and schedule
 performance reports

If QA approved change requests are not formally documented in writing and

verbally discussed, they should not be processed or implemented.

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In this task, the project manager executes the tasks defined in the project plan.

The objective of this task is to achieve the project deliverables within the budget
and schedule.

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Once the project plan is ready for execution, the project manager should review
the following as the project moves forward:

 Verify all deliverables for completeness

 Work performance information
◦ Deliverable status
◦ Schedule progress
◦ Costs incurred
 Change requests
◦ Corrective actions
◦ Preventative actions

Once these items are reviewed the project manager may need to update the
following:

 Project management plan

 Related project documents

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In this task, the project manager implements the quality management plan,
leveraging the appropriate tools and techniques.

The objective of this task is to ensure the work is being performed according to
required quality standards.

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QUALITY MEASUREMENTS are results of quality control activities, fed to the QA
processes. Quality measurements are used to reevaluate and analyze quality
standards and processes.

TOOLS & TECHNIQUES USED IN QUALITY ASSURANCE:

QUALITY AUDITS are structured, independent reviews to determine if project

activities comply with organizational and project policies and procedures. Quality
audits may be scheduled or performed randomly. The audits are conducted by
trained in-house auditors or by third parties outside the performing organization.

THE PRIMARY OBJECTIVE OF A QUALITY AUDIT is to identify inefficient and

ineffective policies, processes, and procedures used during the process. Best
practices being implemented as well as shortcomings are identified and shared
with those working on similar projects. Quality audits confirm the
implementation of:

 approved change requests

 corrective actions
 defect repairs
 preventive actions

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The project manager uses PROCESS ANALYSIS to examine:

 problems
 constraints
 non-value added activities identified during process operations

ROOT CAUSE ANALYSIS is a specific process analysis technique used:

 to analyze a problem and/or situation, and its cause(s)

 to create preventive actions for future similar problems or situations

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QUALITY CONTROL should be performed throughout the project by a
quality control department. It involves monitoring specific project results to
determine if they comply with quality standards and also identifying ways to
eliminate the causes of unsatisfactory results.

It is essential that the quality control team members have a working

knowledge of statistical quality control methods, including:

 sampling
 determining probability to evaluate outputs

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It is equally important to know the difference among:

 Tolerances (specified range of acceptable results) and control

limits (thresholds which can signal that the process is out of
control)
 Prevention (keeping mistakes out the process) and inspection
(keeping mistakes out of the customers hands)
 Attribute sampling (the end result either conforms or does not
conform) and variables sampling (the end result is rated and the
degree to which it conforms is measured.
 Common, or random, causes and events which impact quality

A sample test result is acceptable if it falls within the range specified by the
tolerance. A process is said to be in control if the result falls within the control
limits.

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TOOLS & TECHNIQUES USED TO CONTROL QUALITY:
A ISHIKAWA, FISHBONE, OR CAUSE AND EFFECT DIAGRAM indicates how various
factors might be linked to potential problems or effects.

EQUIPMENT LABOR MATERIALS

DEFECT

ENERGY TIME ENVIRONMENT

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TOOLS & TECHNIQUES USED TO CONTROL QUALITY:

CONTROL CHARTS determine if a process is stable or unstable over time or has

predictable performance. They graphically answer the question “Is this process
variance within acceptable limits?” They may be used for both project and product
life cycle processes, and to monitor output variables.

UPPER CONTROL
LIMIT X

LOWER CONTROL
LIMIT

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FLOWCHARTS graphically represent a process and how various elements interact
within that process. They are most effective in seeing how problems can occur, or
have occurred.

MATERIALS YES
SUBMITTED MATERIALS BEGIN WORK
PROJECT FOR APPROVED PHASE
APPROVAL ?

NO

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HISTOGRAMS are representative, vertical bar charts showing a distribution of
variables. The height of each column represents the frequency of the
characteristic. PARETO CHARTS are a specific type of histogram. They are ordered
by frequency of occurrence shown according to the number of defects generated
categorically. This technique is typically used to identify and evaluate
nonconformities.

# OF % OF
DEFECTIVE DEFECTIVE
WIDGETS WIDGETS

0
0

WIDGET PROBLEMS
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Run Charts: Similar to a control chart, a run chart is a line graph that shows
points of data plotted in the order in which they occur. It shows the history
and pattern of variation. A run chart can show trends in a process over time,
variations or time, or improvements or declines in the process over time.

 Trend analysis: the process of using mathematical techniques to

predict future outcomes based on past results is performed using
run charts. It is often used to monitor:

 Technical performance: How many mistakes or defects have been

uncovered and how many remain undetected?

 Cost and schedule performance: How many activities per period

were done with significant variances?

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 Scatter Diagram: A scatter diagram depicts the relationship between
variables. It allows the team to study and identify the possible link between
changes involved in two variables. Dependent versus independent variables
are posted and the closer the points are to a diagonal line, the more closely
they are related.

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In this task, the project manager implements approved changes according to the
change management plan.

The objective of this task is to meet project requirements.

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As a result of monitoring and controlling the project, changes may need to be
approved and implemented in order to maintain alignment to project
requirements.

Approved change requests can result in the following project documents to be

revised or new ones produced:

 Cost estimates
 Activity sequencing
 Schedule dates
 Resource requirements
 Risk response alternatives

Furthermore, changes to the project management plan or other project

documents/plans may be necessary.

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In this task, the project manager implements approved actions using the risk
management plan.

The objective of this task is to minimize the impact of the risks on the project.

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Implementing approved risk response actions could result in a change request.
The requests can contain recommended corrective and preventative actions.

 Corrective actions include contingencies and workarounds. Workarounds are

unplanned responses that are needed in order to address an emerging risk.
 Preventive actions are documented directions to perform in order to reduce
the probability of negative consequences related to project risks.

If approved changes effect the risk management process, the corresponding risk
documents for the project plan are updated and reissued, reflecting the approved
changes.

In addition, other plan documents may need updating, such as: schedule, cost,
quality, procurement, human resource, and WBS documents. This may also affect
schedule and cost baselines.

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In this task, the project manager maximizes team performance by leading
mentoring, training, and motivating team members.

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There are steps a project manager can take in order to lead a project team
more effectively.
Here are some important steps:
• Negotiate work assignments instead of dictating them to the team.
• Communicate organizational goals and objectives and tie them to the
project.
• Plan the project effectively.
• Take adequate time to staff and organize the project team.
• Define the project organization and reporting structure.
• Build a high-performance image of the team.
• Define the work process and team structure.
• Create enthusiasm and excitement both in and out of the team meetings.
• Make sure to have management support for your team.
• Define communication methods and channels.
• Build a sense of commitment.
• Leverage team-building activities.
• Develop a reward system.
• Manage all conflict and problems.
• Hold team members accountable for their involvement.

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There will be occasions where a project manager may find a need to mentor
another project manager or project team member. Many times, project teams
are staffed with resources that may not fully understand project management
and the dynamics involved in meeting project deliverables.

Becoming a mentor is a positive and rewarding experience when executed

correctly. Mentoring is an effective method in teaching others. Once a project
manager engages a mentee, the relationship and experience should be positive
and always empathetic to the mentee’s needs.

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Here are some basic steps to being an effective mentor:
• Maintain good credibility. Being credible will attract others to want to learn
from you.
• Always be a positive role model. Mentors are constantly watched and
remaining positive is a trait you should transmit to your mentee at all times.
• Demonstrate a genuine interest in the success of your mentee.
• Share your experience, perspective, and insights with your mentee as much
as possible.
• Probe more into your mentee’s mind by asking probing questions that help
to reveal your mentee’s thoughts and ideas.
• Become a sounding board for your mentee. Always remain accessible to
your mentee for this.
• Challenge your mentee by offering your perspective on how you would
handle things.
• Create an atmosphere conducive to giving feedback. Remember to deliver
feedback that is specific, behavioral, and timely.
• Recognize achievements your mentee reached. Build up your mentee’s
confidence as much as possible.
• Allow your mentee to ask for advice first instead of offering it. This will
allow the mentee to solve problems without needing assistance.

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Leading teams may involve some training. There may be new information that
the team may need in order to perform their roles effectively. In addition, a
newly formed team may not understand everything they need to know about
being on a project team.

Training is vast in scope and there are different approaches a project manager
can take to transfer knowledge to others. There are some things to consider
when determining how to train.

The first thing to understand what the least effective method of training is.
This is lecturing. When a person lectures to the group (doing all the talking),
the participants tend to only retain five percent of what is delivered. The most
effective method in transferring knowledge is creating a collaborative
environment through teamwork.

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This could involve activities, case studies, and scenario-based learning. Adults
learn best when they are allowed to explore each other’s ideas and share their
experiences. This type of interaction increases retention of content to 80
percent.

It is always a good practice to form a relationship with a training resource

within your organization. This way you can call on this person when needing
fresh training ideas or materials.

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The team environment could often become a bland environment when all there
is to do is complete project tasks. The project manager must monitor the team
dynamics and motivate the team when problems arise or when the team has hit
a rut.

The organizational environment could also be factor in demoralizing the team,

zapping their spirit. It is the responsibility of the project manager to ensure a
proper level of energy and motivation within the project team.

Here are some steps a project manager can take to help motivate their project
team:

• Communicate clear and specific goals.

• Allow the project team members to be involved in decision-making and
problems solving activities.
• Measure team performance and share results with the team.
• Offer team rewards. Build a teamwork environment through this process.

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STAKEHOLDER ENGAGEMENT MANAGEMENT involves managing communications
necessary to satisfy the needs of, and resolve issues with, project stakeholders. The
project manager is usually responsible for stakeholder management. Actively
managing stakeholders reduces the likelihood the project will veer off track due to
unresolved stakeholder issues. It also enhances the ability of members to operate
with synergy, and limits disruptions during the project. Stakeholder requirements
and expectations provide an understanding of stakeholder goals, objectives, and
level of communication during the project.

Managing the stakeholder engagement process activities involve:

 engaging stakeholders at different project stages to confirm their
support
 managing stakeholders expectations through communication
 proactively dealing with potential issues and taking preventive actions
 addressing and resolving issues and conflicts
 reassessing stakeholders’ influences, powers, interests and engagement
levels

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MANAGE STAKEHOLDER ENGAGEMENT PROCESS INPUTS INCLUDE:

THE STAKEHOLDER MANAGEMENT PLAN contains the identified and analyzed needs
and expectations of the stakeholders. It provides the information and guidance on
how to effectively manage project stakeholders.

THE COMMUNICATIONS MANAGEMENT PLAN provides the following key inputs to the
process:
 stakeholder communications requirements
 Information type, format and frequency
 Level of detail by stakeholder classification

THE CHANGE LOG is used to communicate project changes to the stakeholders.

ORGANIZATIONAL PROCESS ASSETS provide the following key inputs:

 organizational communication requirements
 issue management procedures
 change control procedures

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FACE-TO-FACE MEETINGS ARE THE MOST EFFECTIVE MEANS OF
COMMUNICATING AND RESOLVING ISSUES WITH STAKEHOLDERS. Email,
telephone, fax, written correspondence, and electronic tools are effective when
face-to-face meetings are not practical or warranted, such as on international
projects.

ISSUE LOGS, OR ACTION-ITEM LOGS are used to document and monitor the
resolution of issues. Stakeholder requirements are identified and resolved, and
entered into the issues log.

AN ISSUE is a point or matter in question or in dispute, or a point or matter that

is not settled and is under discussion. Issues are clarified and stated so they
may be resolved. A target resolution date is set for closure. Unresolved issues
can cause project delays and conflict.

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Project success may be measured according to scope, time and cost goals, or
by customer satisfaction.

THE EXPECTATIONS MANAGEMENT MATRIX aids project sponsors in ranking the

importance of project scope and time and cost goals in an effort to clarify
expectations and balance the competing constraints.

THE EXPECTATIONS MANAGEMENT MATRIX includes success measures such as:

 priorities
 expectations
 guidelines
 quality
 a certain satisfaction rating
 any others needed to meet project needs

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Exceptional interpersonal skills and management skills are imperative for effective
stakeholder engagement management. These include:

 confidence building
 conflict resolution
 active listening
 change management and managing resistance
 facilitating
 influencing
 negotiating
 verbal and non-verbal communication

The stakeholder engagement management process may update:

 the project management plan
 the project documents
 organizational process assets

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The primary objectives of team development are:

 improving the competencies and skills of team members

 improving the overall cohesiveness and trust among team
members

The goal is to increase productivity through greater teamwork.

To be purposeful, The team’s goals and objectives must be:

 clear
 meaningful
 measurable

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Goals and objectives should have a statement of purpose that creates a clear
vision of the end-goal. The organization and team members must support the
purpose and care if the end-goal succeeds or fails. The end-goal should be
concisely defined.

EFFECTIVE TEAMWORK includes:

 team members cooperating and assisting each other

 team members effectively communicating
 team members sharing information and resources

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Managing the project team includes:

 tracking team member performance

 providing feedback
 resolving issues
 coordinating changes to enhance project performance

There is a greater success of team development when team development efforts

begin early and continue throughout the project life cycle.

Team development begins with a list of the project team members. THE PROJECT
STAFF ASSIGNMENT DOCUMENT identifies the people who are on the team.

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THE STAFFING MANAGEMENT PLAN identifies:

 training strategies
 rewards
 feedback
 disciplinary actions according to ongoing team performance
 assessments and other ongoing project team management.

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There are five stages of development that a team may go through. A team
usually progresses through the stages in order, but it is sometimes common for
a team to get stuck in a stage or even regress to an earlier one. Teams that
have team members who have worked together in the past could also skip a
stage.

1. Forming: The team meets and becomes familiar with the project, their
roles, and each other. Here members tend to be independent and not as
open.

2. Storming: The team starts to get to work addressing the projects needs
and technical decisions. The environment could become destructive at this
point if team members are not open to differing ideas.

3. Norming: Here team members begin to work together and alter work
habits in order to support the team. Trust begins to develop.

4. Performing: The team begins to function as a unit. Issues are worked

through easily.

5. Adjourning: The team completes the work and moves on from the project.

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SOFT SKILLS ARE INTERPERSONAL SKILLS, which are important to team
development. The project manager practices understanding team members'
characters to anticipate their actions and reduce future problems.

TOOLS & TECHNIQUES USED TO MANAGE PROJECT TEAMS:

Important interpersonal skills the effective project manager uses when managing
the project team include:

 empathy
 understanding
 influence
 creativity
 group facilitation

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Following up on issues after acknowledging team members' concerns and
sentiments is necessary to reduce problems and enhance cooperation.

The primary purpose of TEAM BUILDING is not to create new individuals from
old ones, but rather to cultivate trust among group members so collaboration
becomes natural. Successful team building produces a creative and cohesive
unit of interactive employees. Team building activities can vary from a simple
activity completed in a review meeting to an off-site, elaborate activity that is
professionally facilitated. Team building should be an ongoing process and is
crucial to project success.

TRAINING includes all activities designed to enhance the competencies of the

project team members.

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FORMAL TRAINING is scheduled and takes place as stated in the staffing
management plan. Formal training may include:
 classroom instruction
 online training
 computer-based teaching
 on-the-job training from one team member to another
 mentoring
 Coaching

INFORMAL TRAINING involves learning as a result of:

 observations
 conversation
 project performance appraisals conducted during the controlling
process

GROUND RULES are guidelines which decrease misunderstandings and increase

productivity. They are necessary to establish clear expectations regarding
acceptable behavior by project team members.

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It is often preferable to have all or most of the active team members operating in
the same physical location. CO-LOCATION is intended to enhance the team
members' ability to perform as a team. The strategy might include a meeting room
where team members meet at times during the project, or for the entire project life
cycle. Virtual teams help reduce the frequency that team members physically
meet, or are located, together.

REWARDING DESIRABLE BEHAVIOR is common, and encourages individuals to

consider their performance contribution as part of a cooperative team effort.

ZERO SUM, WIN-LOSE, REWARDS only apply to certain individuals within the team,
such as "Salesperson of the month," or "Most improved team member."

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WIN-WIN REWARDS are those that everyone can achieve, and which generally
result in increased team support. Annual bonuses, for example, may be based
on group achievement of a projected goal or milestone. Promotions and pay
increases may be based on the ability of the individual to cooperate and
collaborate with team members or team productivity.

Team effectiveness may be measured by group cohesiveness, improved skills

and, competencies, and reduced staff turnover.

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Managing the Project Team involves:

 tracking team member performance

 providing feedback
 resolving issues
 coordinating changes to enhance project performance

During project progress, the project management team:

 observes team behavior

 manages conflict
 resolves issues
 appraises team performance.

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Updates, as a result of project team management may include:

 updates to the staffing management plan

 submitted change requests
 resolved issues
 input given to the organizational performance appraisals
 lessons learned, which are added to the organization's database

When team members are accountable to both the functional manager and the
project manager within a matrix organization, the project manager is
generally responsible for effective management.

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THE PROJECT STAFF ASSIGNMENTS LIST is one of the project team management
inputs. It is a list of the project team members that will be evaluated during the
monitoring and controlling process.

THE ROLES AND RESPONSIBILITIES LIST is a project team management input used
to monitor and evaluate performance.

THE STAFFING MANAGEMENT PLAN input lists the time periods that team
members are expected to work on the project, as well as training plans,
certification requirements, and compliance issues.

THE TEAM PERFORMANCE ASSESSMENT is used to resolve issues, modify

communication, address conflict, and improve team interaction as a result of
information collected from continued assessments of the project team's
performance.

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WORK PERFORMANCE INFORMATION considered when managing the project
team includes:

 observing team members' clarity of communication

 monitoring meeting participation
 action item follow-up

PERFORMANCE REPORTS measure performance against the project

management plan. Performance areas that aid in project management include:

 schedule
 cost
 quality control, scope verification and procurement audits

Information on performance reports and related forecasts aids in determining

future human resource requirements, recognition and rewards, and staffing
management plan updates.

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TOOLS & TECHNIQUES USED TO MANAGE PROJECT TEAMS:

Observations and conversations with team members are the most effective
means of monitoring progress toward project deliverables, since
accomplishment is a source of pride for team members.

Project Performance Appraisals are conducted during the course of a project in

order to clarify roles and responsibilities, give constructive feedback to team
members, uncover issues, develop individual training plans, and to establish
future goals.

The need for performance appraisals is typically determined by:

 the project’s length and complexity

 organizational policy
 labor contract requirements
 the amount and quality of regular communication

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“THE 360-DEGREE FEEDBACK PRINCIPLE” provides feedback regarding
performance to the person being evaluated from peers and subordinates as
well as from supervisors.

There are numerous reasons and policies guiding performance evaluations.

Main objectives for conducting performance appraisals include:

 clarification of roles and responsibilities

 developing individual training plans
 establishing future goals and structured timelines
 discovering unknown or unresolved issues

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Successful project managers have the ability to resolve conflict. The factors
that influence conflict resolution methods include:

 Importance and intensity of the conflict

 Time pressure to resolve the conflict
 Position taken by those involved
 Motivation to resolve the conflict

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There are six techniques for resolving conflict. They are:

 Withdrawing/Avoiding: Retreating from a conflict or a potential

conflict
 Smoothing/Accommodating: Highlighting areas of agreement
instead of conflict
 Compromising: Finding solutions that satisfy all parties
 Forcing: Pushing one’s own viewpoint to the detriment of others
 Collaborating: Recognizing multiple viewpoints from differing
perspectives
 Confronting/Problem Solving: Conflict should be treated as a
problem to be solved by examining alternatives. It requires a give-
and-take attitude and open dialogue.

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“CONFLICT MANAGEMENT” is a general term used to describe a variety of ways
people handle grievances. Its goal is not to reach a resolution, but rather mediate
conflict.

Conflict management is a long-term process to manage a grievance. Successful

conflict management results in greater productivity and positive working
relationships. When handling conflict, the project manager should recognize that
conflict is natural, it is a team issue, and openness resolves conflict.

CONFLICT RESOLUTION is a short-term fix, and involves dispute resolution to

the satisfaction of one or both parties. It should focus on issues, not
personalities and should focus on the present, not the past.

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SOURCES OF CONFLICT may originate from:

 scarce resources
 scheduling priorities
 personal work styles

The amount and degree of conflict may be reduced by:

 establishing team ground rules, group norms, and project

management practices
 defining clear roles and responsibilities
 communicating effectively

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CONFLICT MAY BE INTERPERSONAL (INTRAPERSONAL) OR STRATEGIC. Knowing what
type of conflict is responsible for the chaos aids problem-solving and achieving an
agreement.

INTRAPERSONAL CONFLICT is internal, unplanned and is generally a result of

frustration.

STRATEGIC CONFLICT is external, planned, and used to promote a particular goal.

Negotiations are more successful when managers from opposing sides both adopt a
win-win strategy. A WIN-WIN STRATEGY demands that participants:

 adopt a positive attitude

 convey their willingness to be flexible
 offer legitimate compromise
 maintain honest and open communication
 discuss a “mutual problem” in a “non-threatening, non-confrontational
environment.”

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When issues arise during the course of managing the project team, the
project manager may keep an issue log to help the project team monitor
issues until closure. AN ISSUE LOG is a written log that helps the project team
monitor interpersonal team issues until closure. It documents persons
responsible for resolving specific issues by a target date. It helps the project
team monitor issues until project closure and addresses obstacles that can
prevent the team from achieving its goals.

REQUESTED CHANGE outputs include strategic and unplanned events, which

cause staffing changes that effect the rest of the project plan. These changes
may have caused schedule extensions or budget overruns.

CORRECTIVE ACTIONS include staffing changes and additional training and

disciplinary actions. Staffing changes may include outsourcing, team member
replacements, and varying assignments. Performance rewards and
recognitions may also be given.

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PREVENTIVE ACTIONS which may be implemented to avoid repeating human
resource problems on future projects include:

 cross-training
 additional role clarification
 additional personnel

HUMAN RESOURCE LESSONS LEARNED can include items relating to issues, log
entries, conflict management techniques, virtual and co-location teams, training,
negotiations, team building, project organization charts, position description,
and staffing management plans.

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 STOP!

Read the following PMBOK Sections: 4.3, 8.2, 9.2 – 9.4, 10.2, 12.2, 13.3
TAKE THE WEB-BASED TESTS ON EXECUTING BEFORE PROCEEDING FURTHER.

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 Monitoring and Controlling the Project Tasks
Task 1 Measure project performance
Task 2 Manage changes to project scope
Task 3 Ensure quality of project deliverables
Task 4 Update risk register and response plan
Task 5 Assess corrective actions
Task 6 Communicate project status to stakeholders
Knowledge and skills related to this domain include the
following:
• Performance measurement and tracking techniques
• Project control limits
• Project performance metrics
• Cost analysis techniques

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Domain 4:Monitoring and Controlling the Project
• Variance and trend analysis
• Project plan management techniques
• Change management techniques
• Integrated change control processes
• Risk Identification and analysis techniques
• Risk response techniques
• Problem solving techniques
• Reporting procedures

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Monitoring and controlling the project involves skills in managing change, risk
and quality.

The following knowledge and skills are specific for this domain and are
necessary to possess in order to execute the tasks in Domain 4:

 Performance measurement and tracking techniques (ex. EV, CPM, PERT)

 Project control limits
 Cost analysis techniques
 Variance and trend analysis techniques
 Project plan management techniques
 Change management techniques
 Integrated change control processes
 Risk identification and analysis techniques
 Risk response techniques
 Problem solving techniques
 Reporting procedures

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In this task, the project manager measures project performance by using
appropriate tools and techniques.

The objective is to identify and quantify variances, perform approved corrective

actions, and communicate with relevant stakeholders.

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MONITORING is a part of project management that is performed throughout the
project. Monitoring includes:

 collecting
 measuring
 disseminating performance information

Monitoring data is assessed to implement process improvements.

Continually monitoring the project helps keep the project (schedule and cost)
on-track, and identifies areas requiring special and immediate attention (quality
control). Monitoring also aids in mitigating pre-determined areas of risk.

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The integrative monitor and control process monitors and controls the project
in an effort to meet performance objectives. "Changes, cost scheduling, and
quality control" are activities performed within these processes. The process
includes monitoring and controlling activities used to:

 initiate
 plan
 execute
 close out a project

Monitoring and controlling project work involves:

 keeping progress reports

 measurements and forecasting
 identifying and tracking project risks
 tracking approved changes and processing documented updates
 generally assessing and comparing project performance against
the project management plan

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The project manager implements corrective or preventive actions to control
project performance. Project Progress Payments are made at periodic intervals
until the project is complete. The amount of each payment is based on completed,
approved, and quality-accepted work, plus any additional markups for contractor
overhead and profit.

The “EARNED VALUE TECHNIQUE,” often called the “earning rules and crediting
method,” is used to measure performance throughout the project to closure. It
provides a means of forecasting future performance based on similar past
performance.

FORECASTS are estimates of future conditions and events of the project that are
based on information and knowledge available at the time. They are revised,
updated, and reissued based on work performance information provided as the
project is executed. Project work performance used for forecasting is based on
past and expected future performance information that can impact the project.
The information may include the estimate at completion and/or the estimate to
complete.

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PERFORMANCE INFORMATION INCLUDED IN PERFORMANCE REPORTING
includes how resources are used to achieve project objectives. More
specifically, reporting includes information on:

 scope
 schedule
 cost
 quality
 risk
 procurement

INPUT COLLECTED FOR PERFORMANCE REPORTING includes:

 work performance information

 performance measurements
 forecasted project completion
 quality control measurements
 baseline information
 requests to expand the project scope
 deliverables
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Work performance information collected as part of the project execution phase
includes information on the completion status of the deliverables, as well as
what has been accomplished.

THE PERFORMANCE MEASUREMENT BASELINE is part of the project

management plan, which aids management control. It compares project
execution and deviations against an approved plan for the project work.

Integrated into the performance measurement baseline are the project’s:

 cost and quality parameters

 scope
 schedule
 technical parameters

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APPROVED CHANGE REQUESTS input are requested changes that might be
necessary to expand or reduce project scope, or modify estimated cost or activity
durations that have already been approved for implementation by the project
team.

PERFORMANCE DELIVERABLES are unique and verifiable products, results, or

capabilities to perform a service that must be produced to complete a project
process or phase.

PERFORMANCE REPORTING TOOLS & TECHNIQUES:

THE EARNED VALUE TECHNIQUE (EVT) is used to measure the performance of

work and to establish the performance measurement baseline. The earned value
technique is also referred to as the earning rules and crediting method.

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SOFTWARE PACKAGES AND PROGRAMS that include table reporting and graphic
representations can be used to create presentation quality images of project
performance data.

STATUS REVIEW MEETINGS are regularly scheduled events, conducted to

exchange information about the project. Status review meetings are held at
various intervals by different project groups, such as project team meetings,
stakeholders' meetings, project management team meetings, etc.

TIME AND COST REPORTING SYSTEMS are used to record and provide time and
cost expended for the project.

PERFORMANCE REPORTS ORGANIZE AND SUMMARIZE COLLECTED INFORMATION

and present results of any analysis as compared to the performance
measurement baseline. Performance reports should provide project status and
project information sufficiently detailed in accordance with various
stakeholders’ requests, and as documented in the communications
management plan. Common formats for performance reports include bar
charts, S-curves, histograms, and tables.

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THE PROJECT PERFORMANCE FORECAST output provides information about the
project's past performance that could impact the project in the future, such as
the estimate at completion and the estimate to complete.

Variance Analysis: This is a look back at what may have caused a difference
between the baseline and actual performance. The process may vary depending
on the application area, standard used and the industry, but the common steps
are:
1. Verify the information quality to make sure it is complete, consistent
and credible when comparing with other project information.

2. Determine variances. Earned value management uses specific

equations to quantify variances.

3. Determine the impact the variances may have on the cost and
schedule of the project and well as in other areas.

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Forecasting Methods: Forecasting is the process of predicting future project
performance based the current performance to date. Forecasting methods
may be classified in the following categories:

 Time series method: This method uses historical data to

estimate future outcomes.

 Causal/econometric methods: This method assumes that it is

possible to identify the underlying factors that might influence
what is being forecasted. For example, sales of ice cream might
be associated with weather conditions. Examples include
regression analysis using linear regression or non-linear
regression, autoregressive moving average (ARMA), and
econometrics.

 Judgmental methods: These methods incorporate intuitive

judgments , opinions, and probability estimates. Examples
include composite surveys, Delphi method, and technology
forecasting.

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COMMUNICATION METHODS: Status review meetings can be used to discuss
information and the progress and performance of the project. A reporting
system provides a way for the project manager to convey information to the
stakeholders. This can be done using table reporting, spreadsheet analysis,
and presentations.

REQUESTED CHANGES to some aspect of the project are often generated as a

result of project performance analyses. Requested changes are processed
through the integrated change control process.

RECOMMENDED CORRECTIVE ACTIONS include changes needed to bring the

expected future performance of the project in line with the project
management plan. Recommended corrective actions are documented and
become part of the historical database for both the project and the performing
organization. Documented corrective action includes:

 the causes of issues

 the reasoning behind chosen corrective actions
 other performance reporting lessons learned

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In this task, the project manager manages changes to the project scope,
schedule and costs, updating the project plan. In addition, the project
manager communicates approved changes to the project team.

The objective of this task is to ensure the revised project goals are met.

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CONFIGURATION IDENTIFICATION provides the foundation in which product
configuration is defined and also verified. Configuration identification also
provides the basis for how products and documents are labeled and how
changes are managed.

CONFIGURATION STATUS ACCOUNTING effectively captures, stores, and

accesses information regarding configuration items and changes to
configuration.

CONFIGURATION VERIFICATION AND AUDITING verifies that configuration

items are correct, and that related changes are properly tracked and
implemented.

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Control Scope ensures all requested changes and recommended
corrective actions are processed through the project Integrated Change Control
process. It manages actual changes when they occur, and it is combined with
other control processes.

PERFORMANCE REPORTS are the input control tools that provide the project
manager information about interim deliverables as they are completed. They
provide:
 summarized work performance information
 earned value management parameters and calculations
 analyses of project work progress and status

PERFORMANCE FORMATS which are used to show current schedule status include:
 bar charts, S-curves
 histograms
 tables
 project schedule network diagrams

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APPROVED CHANGE REQUESTS that impact project scope are modifications to
the approved project scope baseline (as previously defined by the approved
project scope statement, WBS, and WBS dictionary).

A PROJECT SCOPE CHANGE CONTROL SYSTEM is documented in the project

scope management plan. It is integrated with any overall project management
information system to control the project scope.

SCOPE CHANGE CONTROL SYSTEMS include:

 documentation
 tracking systems
 approval levels necessary for authorizing changes

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TOOLS & TECHNIQUES USED TO PERFORM SCOPE CONTROL:

 VARIANCE ANALYSIS is a scope control technique that uses project

performance measurements to assess the magnitude of variation.
The cause of variance relative to the scope baseline helps
determine if corrective action is required.

 RE-PLANNING involves approved change requests affecting the

project scope, which necessitate modifying the WBS and WBS
dictionary, the components of the project management plan, and
project scope statement.

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A formal Configuration Management System provides procedures for
documentation of deliverables and ensures changes have been thoroughly
reviewed and documented prior to their processing.

Expected Scope Control Management Output includes updates to the:

 project scope statement

 WBS and WBS dictionary
 scope baseline
 organizational process assets
 project management plan
 requested changes and corrective actions

SCOPE CREEP involves the addition of features or (project scope) functionality

without customer approval or consideration to the additional time, cost, and
resources that will be needed.

CORRECTIVE ACTION is the documented project direction necessary to bring

expected future work performance in line with the project management plan.

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Organizational Process Asset updates to the scope control process include
the causes of variances and chosen corrective actions, which are
documented and recorded in the organizational process asset historical
database.

Revisions to the cost and schedule baselines and component documents are
made to the project management plan, providing approved change requests
impact the project scope.

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SCHEDULE CONTROL is performed by determining the current status of the
project schedule and including updates about its changes. With this
information, schedule control governs factors influencing changes that impact
the schedule, and also formal schedule changes.

TIME MANAGEMENT SCHEDULE CONTROL is the task of controlling

project schedule changes.

Planning performed by the project management team precedes the time

management process, which produces a SCHEDULE MANAGEMENT PLAN.

THE SCHEDULE MANAGEMENT PLAN is intended to establish criteria and a

format for developing and controlling the project schedule.

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COST CONTROL involves influencing factors that create cost variances and
control changes to the project budget. Specifically, cost control influences
factors that:

 create changes to the cost baseline

 manage changes when they occur
 assure potential changes do not exceed authorized funding
 monitor cost performance for variances from the cost baseline
 record, prevent, and inform about cost baseline variances

COST CONTROL INPUTS the project manager uses in the cost control process
include:

 the cost baseline

 project funding requirements
 Cost control procedures
 Cost control tools and reporting
 the project management plan
 work performance information

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Useful work performance information the project manager uses to control costs
includes, but is not limited to:

 completed and incomplete deliverables

 authorized and incurred costs
 estimates to complete the schedule activities
 the percent of project completion

TOOLS & TECHNIQUES USED TO CONTROL COSTS:

Project cost control may be effectively implemented when:

 The cost summary is divided into work packages

 The cost summary is estimated
 Cost data is acted upon
 Cost commitment reports are made for technical decision-makers
 Team members are appropriately assigned to resolve problems or
develop opportunities.

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VARIANCES are any schedule, technical performance, or cost deviation from a
specific plan, which are used by all levels of management to verify the
budgeting and scheduling systems.

Information required for the cost/schedule control system includes:

 estimated costs (how much is budgeted for scheduled tasks as of a

given date)
 budgeted costs
 differences in the amount budgeted versus the actual amount spent

To be effective, cost/schedule control systems should demonstrate:

 estimated and budgeted costs at completion

 the budgeted and actual cost for work performed
 cost and schedule variances
 traceability

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BUDGETING AND SCHEDULING SYSTEM VARIANCES should be compared together
because:

 the cost variance compares only deviations from the budget and does
not include a measured comparison between work scheduled and
work accomplished
 the scheduling variance only compares planned and actual
performance, and does not include costs.

THE COST CHANGE CONTROL SYSTEM defines how costs are documented,
tracked, controlled, changed, and approved.

PERFORMANCE MEASUREMENT TECHNIQUES help assess the degree of variances

that occur. Key values are developed for each activity using cost value and
variance methods.

THE PLANNED VALUE (PV) is that portion of the approved total cost estimate to be
spent on an activity during a given period.

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THE EARNED VALUE (EV) METHOD is helpful for cost control, resource
management, and production, and compares the budgeted cost of work
performed to the cost of planned and actual work performed. The EV technique is
used to measure cost performance throughout the project to closure. It provides
a means of forecasting future performance based on similar past performance.

Determining the cause, magnitude, and corrective action of a variance is an

important element of cost control. The earned value technique uses the cost
baseline to assess project progress and degree of ANY variations that occur.

THE EARNED VALUE (EV) is the estimated value of the work ACTUALLY completed
on a schedule activity or WBS component.

THE ACTUAL COST (AC) is the total cost incurred in accomplishing the work on
the schedule activity or WBS component, and must correspond in definition and
coverage to whatever was budgeted for the PV and EV.

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PV, EV, and AC are used in combination to provide performance measures
regardless of variances.
THE COST VARIANCE (CV) and SCHEDULE VARIANCE (SV) tend to decrease as the
project reaches completion, due to the compensating effect of more work being
accomplished.

THE COST VARIANCE (CV) = EARNED VALUE (EV) – ACTUAL COST (AC).
Formula: CV = EV - AC
The cost variance at the end of the project will be the difference between the budget at
completion (BAC) and the actual amount spent.

THE SCHEDULE VARIANCE (SV) = EARNED VALUE (EV) – PLANNED

VALUE (PV).
Formula: SV = EV - PV
The schedule variance will ultimately equal zero when the project is completed, since all
the planned values will have been earned.

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 THE COST PERFORMANCE INDEX (CPI) = THE RATIO OF THE
EARNED VALUE (EV) to the
ACTUAL COST (AC)
Formula: CPI = EV ÷ AC
A CPI less than 1.0 indicates a cost overrun. A CPI greater than 1.0 indicates a cost
underrun.

THE SCHEDULE PERFORMANCE INDEX (SPI) = THE RATIO OF THE

EARNED VALUE to the
PLANNED VALUE (PV)
Formula: SPI = EV ÷ PV
The SPI can help predict the completion date, and, when used in combination with the
CPI, to forecast project completion estimates.

When graphed, the combined AC, EV, PV, and BAC "S-curves" integrate project scope,
cost, and schedule measures to give the project management team a visual of
performance.

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FORECASTING is the process of making predictions of conditions in the project's
future based on information and knowledge available at the present time.

The forecast is updated and reissued based on work performance information

that is provided as the project is executed and progresses.

WORK PERFORMANCE INFORMATION includes past work performance

information as well as anything that could impact the project in the future.

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FORECASTING TECHNIQUES help assess the cost or amount of work to complete
schedule activities, called the estimate at completion (EAC). The estimate at
completion (EAC) is the projected total value for a schedule activity, WBS
component, or project when the defined project work is completed.

THE EXPECTED COST OR AMOUNT OF WORK TO COMPLETE

THE SCHEDULE ACTIVITIES (EAC) = THE ACTUAL COST (AC) +
ESTIMATE TO COMPLETE (ETC).
Formula: The EAC = AC + ETC
EAC is calculated based on performance to date, or estimated by the project team based
on the latest revised estimate.

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FORECASTING TECHNIQUES help determine the estimate to complete (ETC), which
is the estimate for completing the remaining work for a schedule activity, work
package, or control account.

The ETC forecasting technique is based on the performing organization providing

the estimate to complete (ETC).
The ETC is based on a new estimate, where ETC equals the revised estimate for the
work remaining as determined by the performing organization.

The ETC is based on a typical variances approach which is used when current
variances are considered to be different or uncommon, and the project
management team does not expect similar variances to occur in the future.

THE ESTIMATE TO COMPLETE (ETC) = THE BUDGET AT

COMPLETION (BAC) – THE
EARNED VALUE (EV).
Formula: ETC = BAC - EV

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ETC based on typical variances is most often used and assumes that current
variances are typical of future variances.

THE ESTIMATE TO COMPLETION (ETC) = THE BUDGET AT

COMPLETION (BAC) – THE
REMAINING PLANNED
VALUE (THE EARNED
VALUE (EV)) ÷ THE COST
PERFORMANCE INDEX.
Formula: ETC = (BAC - EV) ÷ CPI.

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EAC using a new estimate is most often used when past performance shows
that the original estimating assumptions were flawed or irrelevant due to a
change of conditions.

THE ESTIMATE AT COMPLETION (EAC) = THE ACTUAL COSTS (AC) TO

DATE + A NEW ESTIMATE
TO COMPLETION (ETC)
PROVIDED BY THE
PERFORMING ORGANIZATION.
Formula: EAC = AC + ETC

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EAC forecasting is most often used when current variances are considered
typical of future variances.

THE ESTIMATE AT COMPLETION (EAC) = THE ACTUAL COSTS (AC)

TO DATE + THE BUDGET
REQUIRED TO COMPLETE
THE REMAINING WORK,
WHICH IS THE BUDGET AT
COMPLETION (BAC) – THE
REMAINING PLANNED
VALUE (EARNED VALUE
(EV) ÷ THE COST
PERFORMANCE INDEX.
Formula: EAC = AC + ((BAC – EV ) ÷ CPI)

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The forecasting used to calculate EAC when variances are considered uncommon or
different (and the project management team does not expect similar variances to
occur in the future) is EAC using the remaining budget.

THE ESTIMATE AT COMPLETION (EAC) = THE ACTUAL COST (AC) +

THE BUDGET REQUIRED TO
COMPLETE THE REMAINING
WORK, WHICH IS THE
BUDGET AT COMPLETION
(BAC) – THE EARNED
VALUE (EV).
Formula: EAC = AC + BAC - EV

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PERFORMANCE REPORTING is used to keep stakeholders informed on how resources
are being used to achieve project objectives. Performance reporting inputs include
work performance measurements and information, forecast completion dates,
quality control measurements, the project management plan, approved change
requests, and deliverables. Performance reporting outputs are performance reports
and forecasts.

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Key Estimate at Completion (EAC) and To-Complete Performance Index (TCPI)
Formulas:

EAC = AC + BAC – EV EAC forecast for ETC work performed at

budgeted rate

EAC = BAC / cumulative CPI EAC forecast for ETC work performed at
present CPI
EAC = AC + [(BAC – EV) / (cumulative CPI EAC forecast for ETC work including both
x cumulative SPI)] SPI and CPI factors
TCPI = (BAC – EV) / (BAC – AC) TCPI based on the BAC
TCPI = (BAC – EV) / (EAC – AC) TCPI based on the EAC

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STATUS REPORTS describe where the project stands at a specific point in time in
terms of meeting scope, time, and cost goals.

PERFORMANCE REVIEWS are meetings held to assess schedule activity, work

package, or cost account status and progress. They are typically used with other
analyses and evaluation techniques.

THE PURPOSE OF PROJECT PERFORMANCE REVIEWS is to compare cost performance

over time and schedule activities, or work packages overrunning and underrunning
budget (planned value), along with milestones.

VARIANCE ANALYSIS involves comparing actual project performance to planned or

expected performance.

TREND ANALYSIS involves examining project performance over time to determine if

performance is improving or deteriorating.

COST AND SCHEDULE VARIANCES are most often analyzed. However, variances
from project scope, resources, quality, and risk are also important.

THE EARNED VALUE TECHNIQUE compares actual project performance with the
planned performance.

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PROJECT MANAGEMENT SOFTWARE is often used to electronically monitor
PV versus AC and the effects of changes and variances.

Guidelines for managing cost variances for major and minor problems are
part of VARIANCE MANAGEMENT.

THE COST MANAGEMENT PLAN that is part of variance management defines

how cost variances are managed. The variance tends to decrease as the
project progresses.

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VALUE ENGINEERING is a controlled application of common sense and technical
knowledge. It is directed at finding and eliminating unnecessary costs within a
project. Value engineering is designed toward a specific project.

COST MANAGEMENT CORRECTIVE ACTIONS generally involve adjusting schedule

activity budgets, such as those done to adjust and balance cost variances.

COST CONTROL UPDATES to the organizational process assets include:

 documenting causes of variances and corrective actions taken

 lessons learned from cost, resource or resource production control

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In this task, the project manager ensures that the project deliverables conform to
the quality standards indicated in the quality management plan. The project
uses the appropriate tools and techniques like testing, inspecting and control
charts to achieve this.

The objective of this task is to satisfy customer requirements.

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The following are tools and techniques that are used to determine the quality of
project deliverables:

 Cause and effect diagrams

 Control charts
 Flowcharting
 Histograms
 Pareto charts
 Run Charts
 Scatter diagrams
 Statistical sampling
 Inspections
 Approved change requests reviews

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Outputs from ensuring the quality of the deliverables should include the
following:

 Quality control measurements

 Validated changes
 Validated deliverables
 Organizational process assets updates
◦ Completed checklists
◦ Lessons learned documentation
 Change requests
 Project management plan updates
 Project document updates

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In this task, the project manager updates the risk register and risk response plan
when he or she identifies new risks, and assesses old risks. In addition, the
project manager determines and implements appropriate response strategies as
necessary.

The objective of this task is to manage the impact of risk on the project.

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Controlling Risks involves:
 choosing alternative strategies
 executing risk response and contingency fallback plans and
evaluating their effectiveness throughout the project life cycle
 tracking identified risks and identifying new ones
 tracking corrective action
 determining how much the project relies on controls and deciding
what manual controls are in place to ensure the project is successful
 modifying the project management plan
 updating the organizational process assets, including lessons learned
databases and risk management templates for the benefit of future
projects

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In this task, the project manager assesses corrective actions based on the issue
register and determines next steps for unresolved issues.

The objective of this task is to minimize impact on the project schedule, costs,
and resources.

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In managing projects, problems will always arise. Understanding what a
problem is and how to solve them is a critical skill in keeping the project on
track.

A problem is created when there is a variance between what was expected to

happen and what actually occurred.

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Here are some steps to solving problems:

1. Frame or define the problem

A. What was the expected outcome you anticipated?
B. What actually occurred?
C. What is the gap between what you expected and what occurred?

2. Determine what has caused the problem

A. What went wrong?
B. Why did it happen?
C. What was the variable that contributed to the problem?

3. Brainstorm all possible solutions

A. Brainstorm all possible actions that will remove the problem-causing
variable.
B. Gain advice from peers and others that may have experience with the
issue.
C. Review each solution and the effectiveness it has in removing the
problem-causing variable.

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Continued:

4. Set out to solve the problem

A. Make it a goal to remove the cause of the problem.
B. Determine which solutions are the best in resolving the problem and list
them in order of effectiveness.
C. Enact each solution

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Corrective actions are documented directions for executing the project work to
bring expected future performance in line with the project management plan.

Assessing corrective actions can be achieved by using the appropriate tools,

depending on what area is being corrected. For example, when controlling the
schedule, performance reviews measure, compare, and analyze schedule
performance, which allows the project manager to determine whether corrective
action is appropriate.

Controlling costs and schedules are other areas where corrective action is
assessed. For example, when comparing cost or schedule performance
baselines with actual results, a project manager may determine if corrective
action is necessary.

In terms of controlling project quality, control charts are useful in determining at

which point corrective action is needed. Quality audits can also confirm the
implementation of corrective actions.

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In this task, the project manager communicates the project status to
stakeholders, obtaining their feedback.

The objective of this task is to ensure the project aligns with the business
needs.

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In order to manage stakeholder expectations effectively, a project manager
must report timely and relevant information. There are many ways information
can be reported. Some organizations may have a structured reporting system.

This could be done in the form of dashboard reports with high-level

information and a general status designation. For example, a project could be
designated red, yellow, or green, indicating the project is off track, may become
off track or is on track respectively.

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If the organization does not have a defined reporting process, here are some
general procedures for reporting project status or results:

• Report the three major components of the project in this order

• Give overall project condition
• Report milestones
• Communicate issues

• Be brief—focus on being able to deliver the project status in quickly and

concisely. Here are some additional steps:

• Use bullet points

• Reduce unnecessary text
• Shorten the sentences
• Do not use adverbs or adjectives

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Continued:

• Report the following project data

• Project name
• Identification number
• Project general status (color code if necessary)
• Planned and actual percent complete
• Actual number of days ahead or behind schedule
• Number of issues project is facing currently
• Milestones
• Name
• Percent complete
• Planned start/finish
• Actual start/finish

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Continued:

• Update project issues

• Issue number
• Name
• Report date
• Priority
• Owner
• Resolution date
• Mitigation strategy summary

• Communicate expected results

• Keep report on one page
• No need for a formal presentation
• Give complete information

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COMMUNICATION METHODS:

As part of the distribution of information within the communications process,

THE SENDER IS RESPONSIBLE FOR making information clear and complete so the
receiver can receive it correctly. THE RECEIVER IS RESPONSIBLE FOR ensuring the
information is received in its entirety and correctly understood.
COMMUNICATIONS CAN BE:

 Internal - communication which is within the project

 Horizontal - communication which is among peers
 Informal - communication in the form of memos or conversations
 External - communications with customers, the public, or media
 Internal - communication which is within the project
 Vertical – communication which is top-down

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Information may be gathered and retrieved through a variety of media including:
 manual and electronic filing systems and databases
 project management software
 systems that allow access to technical documentation
Project information may be distributed by almost any method that is credible.
Project meetings, video, and web conferencing, hard-copy document distribution,
manual filing systems and shared access e-databases, email, fax, voice mail,
telephone, and web publishing, and interface scheduling, are only a few of the
available distribution methods and channels.
LESSONS LEARNED focus on identifying project successes and failures and
recommendations for improvements for future performance.
Lessons learned, which are identified during the project life cycle include
managerial, technical, and process aspects of the project. They are compiled,
formalized, and stored throughout the project's duration and life cycle.
If the project yields less than desirable results, the project manager has a
professional obligation to hold a lessons learned session. All key stakeholders
should attend the session, especially if the project is currently showing failing
results, or has already “failed.”

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Specific results gained from lessons learned include updates to:

 the lessons learned knowledge base

 corporate policies, procedures, and processes
 the risk management plan

Input is added to the knowledge management system and improvements are made
to business skills and to the overall project and service.

LESSONS LEARNED DOCUMENTATION that is archived includes:

 the causes of issues

 reasoning behind corrective actions taken
 other documented information involving lessons learned

PROJECT RECORDS INFORMATION should be appropriate and organized, and

include correspondence, memos, and documents describing the project. Project
team members may also maintain records in a project notebook or diary. The
project team provides information to stakeholders, either formally or informally, in
a presentation and format that is appropriate and relevant to the audience.

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CONTROL STAKEHOLDER ENGAGEMENT is the process of monitoring stakeholder
relationships and adjusting actions and plans to address stakeholders’ current
needs and requirements.

The control stakeholder engagement process ensures increased stakeholder

involvement, and controls their engagement levels.

The key inputs to this process are:

 the project management plan provides the stakeholder management

plan which includes the stakeholders’ needs and expectations
 the issue log provides a list of open issues that need to be addressed
 work performance data contain the project observations and
measurements that interest project stakeholders
 project documents such as the project schedule, stakeholder
register, issue log and change log provide key inputs to this process

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CONTROL STAKEHOLDER ENGAGEMENT PROCESS TOOLS & TECHNIQUES:

INFORMATION MANAGEMENT SYSTEMS provide a standardized approach to

gather, store and distribute project information to the stakeholders. It
allows the project manager to spot variances and symptoms of variations
early on which helps in proactively controlling stakeholder engagement.

EXPERT JUDGEMENT provided by experts, senior management, functional

managers, sponsor, and other senior stakeholders helps in identifying the
required changes in the stakeholder management plan and adjusting the
stakeholder engagement strategy.

MEETINGS are interactive communications between project stakeholders.

These also help in capturing expert judgment from the project stakeholders.

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CONTROL STAKEHOLDER ENGAGEMENT PROCESS OUTPUTS INCLUDE:

WORK PERFORMANCE INFORMATION produced by analyzing the work

performance data and communicated to the project stakeholders through
the communications process.

CHANGE REQUESTS regarding the required corrective actions, preventive

actions or defect repairs may be produced during the processing of the
work performance data.

UPDATES to the following documents may be required during this process:

 project management plan and the subsidiary plans
 stakeholder register
 issue log
 stakeholder notifications
 project records
 lessons learned library

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FORMAL AND INFORMAL PROJECT REPORTS detail the project status, and
include:

 lessons learned and issues logs

 project closure reports
 outputs from other knowledge areas

FEEDBACK OUTPUT is information received from the stakeholders regarding

project operations which is used to modify or improve future project
performance.

Requested additions, modifications, or revisions to the information

distribution process result in changes in:

 the project management plan

 the communications management plan

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STAKEHOLDER MANAGEMENT involves managing communications necessary to
satisfy the needs of, and resolve issues with, project stakeholders. The project
manager is usually responsible for stakeholder management. Actively managing
stakeholders reduces the likelihood the project will veer off track due to
unresolved stakeholder issues. It also enhances the ability of members to
operate with synergy, and limits disruptions during the project. Stakeholder
requirements and expectations provide an understanding of stakeholder goals,
objectives, and level of communication during the project.

THE COMMUNICATIONS MANAGEMENT PLAN contains the identified and

analyzed needs and expectations of the stakeholders.

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FACE-TO-FACE MEETINGS ARE THE MOST EFFECTIVE MEANS OF
COMMUNICATING AND RESOLVING ISSUES WITH STAKEHOLDERS. Email,
telephone, fax, written correspondence, and electronic tools are effective when
face-to-face meetings are not practical or warranted, such as on international
projects.

ISSUE LOGS, OR ACTION-ITEM LOGS are used to document and monitor the
resolution of issues. Stakeholder requirements are identified and resolved, and
entered into the issues log.

AN ISSUE is a point or matter in question or in dispute, or a point or matter

that is not settled and is under discussion. Issues are clarified and stated so
they may be resolved. A target resolution date is set for closure. Unresolved
issues can cause project delays and conflict.

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Project success may be measured according to scope, time and cost goals, or by
customer satisfaction.

THE EXPECTATIONS MANAGEMENT MATRIX aids project sponsors in ranking the

importance of project scope and time and cost goals in an effort to clarify
expectations and balance the triple constraint.

THE EXPECTATIONS MANAGEMENT MATRIX includes success measures such as:

 priorities
 expectations
 guidelines
 quality
 a certain satisfaction rating
 any others needed to meet project needs

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 STOP!

Read the following PMBOK Sections: 4.4, 4.5, 5.5, 5.6, 6.7, 7.4, 8.3, 10.3,
11.6, 12.3, 13.4,
TAKE THE WEB-BASED TESTS ON MONITORING & CONTROLLING BEFORE
PROCEEDING FURTHER.

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 Domain 5: Closing the Project
Task 1 Obtain final acceptance
Task 2 Transfer ownership of deliverables
Task 3 Obtain closure
Task 4 Distribute final project report
Task 5 Collate lessons learned
Task 6 Archive project documents
Task 7 Measure customer satisfaction
Knowledge and skills related to this domain include the
following:
• Contract closure requirements
• Basic project accounting principles
• Close-out procedures

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 Domain 5: Closing the Project
• Feedback techniques
• Project review techniques
• Archiving techniques and statutes
• Compliance
• Transition planning techniques

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Closing the project involves several administrative skills and techniques.

The following knowledge areas and skills are specific for this domain and are
necessary to possess in order to execute the tasks in Domain 5:

 Contract closure requirements

 Basic project accounting principles
 Close-out procedures
 Feedback techniques
 Project review techniques
 Archiving techniques and statutes
 Compliance
 Transition planning techniques

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In this task, the project manager obtains final acceptance of the project
deliverables, working with the sponsor and customer.

The objective of this task is to confirm that the project scope and deliverables
were met.

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Obtaining final acceptance from sponsor or customer
Final project acceptance is an important step in the project-closing phase.
Although most of the activities performed throughout the project are focused on
meeting the sponsor’s expectations, obtaining a formal acceptance of the project
will ensure the project is closed properly.

Having clear deliverables and acceptance criteria defined from the beginning of
the project help to make the acceptance process easier. When drafting the
acceptance criteria, write a clause such that if the sponsor does not respond
according to the time specified for acceptance, the deliverables will be deemed as
accepted.

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An acceptance form should be drafted and contain the following information:

• Project name

• Document name

• Date submitted

• Description of the deliverable

• Name and signature of person submitting acceptance form

• Name, title, signature of person accepting the deliverable

• Date Accepted

• Comments area

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Here is a possible process for obtaining final acceptance of a project:

• Assign deliverable to an agent to present to sponsor

• Have deliverables prepared for review

• Have assigned agent review deliverables with project performers

• Make any revisions

• Have assigned agent and project performers present deliverable to sponsor

• Make any revisions

• Present deliverables for final approval

• Make sure all sponsors approve

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Requirements Traceability Matrix

The Requirements Traceability Matrix (RTM) is used to maintain the scope of the
project by connecting each project requirement to the deliverables. The RTM is
used throughout all project phases.

Sample

Project Request for Project Project Testing

Requirements Proposal Tasks Deliverables

Verification

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As the requirements will be used to measure project acceptance by the sponsors,
the RTM helps to create other project documents and testing criteria.

A basic RTM document should contain the following fields:

• A requirements number for each project requirement

• A short name or description of the requirement
• A reference number that identifies this requirement in the request for proposal
• A reference number that identifies the specific deliverable related to this
requirement
• A reference number that identifies the tasks associated with this requirement
on the task schedule
• A reference number that identifies the testing criteria and process document
• A field for capturing when this requirement has been verified by the sponsor(s)
as being met

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CLOSURE includes developing the index and location of project documentation
using the configuration management system.

The Project Close Out process establishes procedures to:

 verify and document project deliverables

 formalize project deliverable acceptance
 define reasons for early termination, if applicable

The administrative closure procedure:

 documents all project activities, roles, and responsibilities needed in

executing the administrative closure of the project
 formally closes and transfers the completed project or portion of
project scope and associated activities applicable to some project
phase.

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In this task, the project manager transfers the ownership of
deliverables to the appropriate stakeholders as indicated in the
project plan.

The objective of this task is to facilitate the project closure.

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Transfer to stakeholders (Transition planning)

The closing process can easily become disorganized if mishandled. The transfer
of the project to the stakeholders must be managed carefully. Once final
acceptance of the deliverables is acknowledged, it is a good practice to use a
transition plan, which is usually developed during the initial planning stages of the
project.

Here are some tasks to list on the transition plan:

• Coordinate transition planning meeting

• Distribute project initiation plan or project plan
• Attend transition planning meeting
• Review project schedule
• Review deliverables list to determine requirements
• Develop matrix of required resources/skills for those who will use product
• Conduct skill gap analysis against all staff if launching something that requires
training
• Identify project activities to be completed before transition can start
• Determine timeline
• Establish transition milestones
• Assign support staff

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Continued:

• Determine actual training needed, based on gap analysis

• Determine roles and responsibilities (such as collect, review, accept
deliverables, resolve variances, etc.)
• Assign evaluator for each transition deliverable
• Acquire licenses if necessary
• Develop training and deliver to staff
• Notify business area(s) of production support procedures
• Notify stakeholder of transition to production status
• Move development documentation to production repository
• Transfer user group/steering committee leadership to the stakeholder

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In addition, activity in the following areas should be included in the project
transition process:

• Project documentation
• Contract administration
• Finalizing financial matters
• Program management
• Marketing

A final management review should take place with both the stakeholders and
project team, officially transferring the project to the stakeholders.

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The Contract Closure Procedure is a step-by-step procedure used to:

 settle and close the project contract agreement

 verify customer satisfaction with the product
 update project records to reflect final project results
 archive the information for future use.

All formal acceptance documentation, project files, closure documents, and

historical information are contained in the project file.

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In this task, the project manager obtains financial, legal, and administrative
closure of the project, using generally accepted practices.

The objective of this task is to communicate formal project closure and

ensure no further liability.

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Contract closure can be a complex task and it should be done with someone who
has experience reading and understanding contracts. It is a good practice to have
the contract reviewed before the project is closed. This ensures all contract
obligations are satisfied by all parties involved.

Here are some basic steps to contract closure:

1. Compile all final contract documents with revision, waivers and related
documents

2. Verify and document that all terms on contracts are compliant

3. Gather all proof of delivery and customer acceptance

4. Notify customer of contract completion

5. Pursue any outstanding claims against customer

6. Prepare any defenses against customer claims

7. Prepare a final contract status report

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Financial, legal, and administrative closure (generally accepted practices)

The termination and closure of a project can be an intense process. Many times, a
termination manager may be used to help the project manager close the project.

In general, here are some basic areas to manage in order to ensure that all the
financial, legal, and administrative aspects of the project are properly closed:

• Ensure completion of all work, especially work performed by subcontractors

• Notify the client of project completion and ensure the product is delivered and
accepted

• Ensure all documentation is complete, which includes final evaluations of all

project deliverables and a final report

• Make sure all final billings are cleared for payment and invoices are sent to the
client

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Continued:

• Redistribute personnel, materials, equipment, and any resources used for this
project back to its owners

• Meet with legal counsel or consultants and ensure the project has cleared any
legal hurdles and document and archive related documents

• Determine what project documents are to be archived

• Decide how this project will enter the next phase

• Meet with accounting and oversee how the project books are closed

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CONTRACT CLOSURE involves:

 resolving any open items

 completing and settling the contract
 closing project phases

Contract terms and conditions can prescribe specific procedures for contract
closure.

EARLY TERMINATION OF CONTRACTS create a special case of contract

closure resulting from a mutual agreement of the parties, or from the default
of one of the parties. Rights and responsibilities of the parties are contained
in a termination clause contained in the contract. All or part of a contract
may be terminated for cause or convenience at any time.

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In this task, the project manager distributes the final project report along
with related project closure information, variances, and issues.

The objective of this task is to provide the final project status to all
stakeholders.

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Conduct comprehensive project review and create/update knowledge base

As the project nears completion, it is vital to perform a comprehensive project

review. The comprehensive project review is a thorough examination of the
project in terms of its management methods, procedures, records, properties, and
budgets.

The comprehensive project report can be presented in many formats. However,

the report should contain the following basic information:

• Current status of project—this is a comparison of actual work completed to

what was planned, focusing on:
• Cost
• Schedule
• Progress
• Quality

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Continued:

• Future status—any major changes that may occur

• Status of critical tasks—an update on those tasks that are critical to the
completion of the project

• Risk assessment—what risks may affect the project timeline, budget or quality

• Lessons learned—information that may be useful to the organization in general

or to other projects current or future

• Limits to review—this lists assumptions or limitations that could affect the

information presented in the review

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The review should be conducted by a person independent from the project itself.
This will remove any biases in the review. The external reviewer should perform
the following tasks in this role:

• Assemble review team

• Get team familiar with project requirements
• Review project
• Debrief the project’s management team
• Write a report
• Distribute report to project manager and team and obtain their response
• Follow up to see if recommendations have been implemented

A review database should be implemented, and it should house the findings of the
review. It should also be accessible as a knowledge base for management and
other project managers to see. How the system is set up will depend on the
organization’s policy.

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In order to make sound and timely business decisions for a project, accounting
knowledge is necessary. Understanding accounting will help the project manager
determine the financial wellbeing of his or her project.

Accounting is the practice of collecting, organizing, maintaining, reporting, and

understanding the financial activity of a business. Accounting knowledge helps
managers make informed financial decisions. Accounting enables an organization
to pay taxes, seek credit, and Control Communications to their stakeholders.

Project accounting allows the project manager to do the following:

• Report technical achievements

• Maintain project schedule
• Obtain resources
• Manage costs

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In addition, connecting the project to an accounting system enables the following:

• View of receivables and payables, giving better control over expenses and
revenues
• Track financial errors quickly
• Ability for project to be audited

Here are some basic accounting principles a project manager should know:

• Every business is considered a separate entity

• The business is assumed to continue to exist
• Reporting is done in the same currency always
• The accounting period is fixed and annual
• Costs are recorded as actual and not based on worth
• Costs are objectively established and not estimated
• Revenue is entered into the accounting system as it is earned
• Expenses are matched with revenue produced
• All significant information is disclosed fully
• Same accounting principles are followed all the time

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A typical method of accounting for the cost of a project is to use Activity Based
Cost management. This is the method of breaking costs down by what each
activity consumes as it is completed.

Activity Based Cost management analyzes the project in terms of the following:

• Costs and resources consumed by event

• Costs and resources consumed by product
• Feedback on performance based on business objectives

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Reviewing the requirements traceability matrix helps to ensure that all
requirements have been met and can be leveraged as a report to
stakeholders.

Work performance measurements related to schedule and costs are also

finalized and reported to stakeholders.

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A project review is a done to determine what went well and what went wrong in a
project. The project review should focus on the overall experience and
performance. Project reviews help to support a continuous improvement program
within an organization. Here are recommended steps in conducting a project
review:

1. Include the project review as an activity openly disclosed in the project plan. It
should also be a deliverable on the work breakdown structure.

2. Determine the participants that will be on the project review team

A. The participants should be associated with the project
B. The participants should not be anyone from upper management

3. To prepare for the project review, collect:

A. Project data
B. Measurements
C. Quality reports
D. Process documentation
E. Project communication

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Continued:

4. Facilitate the review

A. Have participants review data
B. Allow participants to present their findings
C. List what is going well and what is not going well
D. Have participants offer recommendations for improvement

5. Deliver the results to the project team and management

A. Conduct a results meeting
B. List findings
C. List recommendations

6. Incorporate the recommendations derived from the project review

A. Archive findings and recommendations for future reference
B. Implement recommendations on future projects

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THE EARNED VALUE (EV) METHOD is helpful for cost control, resource
management, and production, and compares the budgeted cost of work
performed to the cost of planned and actual work performed. The EV
technique is used to measure cost performance throughout the project to
closure. It provides a means of forecasting future performance based on
similar past performance.

Go back and review Task 2: Manage changes to project scope- Control Costs
section in the previous domain for details on the earned value method.

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In this task, the project manager collates lessons learned by performing a
comprehensive project review.

The objective of this task is to create and update the organization’s

knowledge base.

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In these last two tasks, the project manager archives the project documents
and measures customer satisfaction at the end of the project by capturing
customer feedback.

The following are the goals of these last two tasks:

• Retain organizational knowledge

• Comply with statutory requirements
• Ensure availability of data for use in future projects and audits
• Assist in project evaluation
• Enhance customer relationships

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Administrative closure procedures include activities needed to:
s
 collect and archive project records
 analyze project success or failure

Roles and responsibilities of the project team members involved in executing

the administrative closure procedure should be fully documented.
Stakeholder approval of changes, project acceptance, and activities necessary
to satisfy completion or exiting the project (early) are included in the project
documentation.

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Data collected throughout the project life cycle is valuable information for both
the organization and other projects. Archiving project data is the process of
storing project information in a retrievable format. In some cases, archiving
project information may be a necessary process.

Many organizations have archiving processes in place and outline the steps project
managers must take in order to archive their projects. Many times, the format will
be electronic.

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Here are some things to consider when archiving project documents:

• There should be a standard list of documents that should only go into the
archive

• Convert all paper documents that will be archived into the correct archiving
format

• A set of archiving procedures should be created for all to use

• A special location should be designated for the archive repository

• There should be an archive manager who reviews all files before they go into
archive

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There are many laws that regulate how organizations are managed and how
documents are managed. Many organizations will have explicit policies on how to
handle project management documents.

It helps to have a basic understanding of how to handle project documents.

However, it is always best to consult with someone who is an expert in this area.

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Here are some points a project manager should keep in mind when it comes to
keeping project documents compliant with government regulations.

• Documents should be converted to records, stored on non-rewritable storage,

and organized in a way that facilitates easy searches for those records.
• Record retention varies from company type and the type of information being
stored. This could range from two to 10 years. It is best to consult an expert
in this area.
• Consider all documents related to the project subject to retention. Items like
communication, reports, project plans, etc. may need to be retained.
• Retained documents should be easily accessible when a request for documents
is presented. Requests could come from government agencies, audit teams
and the courts.
• Make sure not to store working information on a personal storage device.
Instead, store working documents on a network location.
• Follow any established guidelines on how to destroy records that no longer
need to be retained.
• Develop a habit of not deleting information until it has been cleared for
deletion by an expert in retention policies.

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Simply delivering the project product or service to the customer may not always
be a good indicator of project success. Customer satisfaction is an important part
of project success and it should be measured.

The most common way to measure customer satisfaction is usually through a

survey. This can be easily done using a web-based application. These
applications typically have an authoring program that makes writing surveys
simple and it also can create quick reports to view results.

Here are some basic question/categories that will help determine customer
satisfaction through a survey:

• How well was the communication throughout the project lifecycle

• How well were updates communicated
• How well were meetings conducted
• The deliverable quality
• How well organized was the project

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Throughout a project, a project manager may need to give both reinforcing and
corrective feedback to project team members. Reinforcing or positive feedback is
typically easier to deliver than corrective feedback.

Effective corrective feedback helps to build stronger relationships than merely

escalating the issue to the next level of management.

Here are some characteristics of effective corrective feedback:

• Feedback should be delivered in an understanding and supportive manner

• Feedback is given in a timely and regular manner
• Feedback encourages self-assessment
• Feedback focuses on modifiable behavior
• Feedback is non-judgmental
• Feedback focuses on desired actions
• Feedback is done in private

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Here are four quick steps to conducting a feedback session:

1. Prepare a private and safe feedback environment

2. Deliver the feedback
3. Develop an action plan through collaboration
4. Recap the session

When delivering feedback remember these steps:

1. Always begin with a positive statement and focus on a good trait first
2. Define the desired behavior and the gap that needs correcting
3. Ask the participant what they can do in order to decrease or eliminate the gap
4. Make a plan

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 STOP!

Read the following PMBOK Sections: 4.6, 12.4

TAKE THE WEB-BASED TESTS ON CLOSING.

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Throughout the five domains, specific knowledge and skills were required
in order to successfully execute each task under each domain.

In addition to these domain-specific skills, there are Cross-Cutting skills

that are essential for success throughout the entire project process,
traversing all domains.

Developing and implementing these skills will help the project manager
experience greater success managing projects.

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 Active listening
 Brainstorming techniques
 Conflict resolution techniques
 Cultural sensitivity & diversity
 Data gathering techniques
 Decision making techniques
 Facilitation
 Information management tools, techniques & methods
 Leadership tools & techniques
 Negotiating

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 Oral and written communication
 PMI’s Code of Ethics & Professional Conduct
 Presentation tools
 Prioritization/time management
 Problem-solving tools & techniques
 Project management software
 Relationship management
 Stakeholder impact analysis
 Targeting communications to intended audiences
 Team motivation methods

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Each item described on the Cross-Cutting Knowledge and Skills list can be its
own study and discipline.

Many of these skills, techniques, and methods are use in normal day-to-day
business activities. Most are not exclusive to project management.

However, understanding the spectrum of knowledge and skills it takes to be a

successful project manager helps to define the complex role of a project
manager.

A project manager has to possess many of these skills due to the political and
human nature of managing projects in an organization.

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Project management in its essence deals in managing the human resources of a
project. Without proper motivation and leadership, a project may suffer delays and
setbacks.

That is why many of the skills listed on the Cross-Cutting Knowledge and Skills list
deal with the ability to interact with people.

The following are skills from the list that relate to dealing with and managing people:
 Active listening
 Conflict resolution
 Cultural sensitivity and diversity
 Leadership tools and techniques
 Negotiating
 Relationship management
 Team motivation methods

A project manager lacking interpersonal skills may find it difficult to organize and
lead a project. That is why seeking additional training in these areas is essential for
the project manager.

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Project management presents many complex situations. The project manager
must possess analytical skills that enable them to study performance reports,
assess risk and manage the interest of all primary stakeholders.

On the Cross-Cutting Knowledge and Skills list, there are several areas that deal
in analysis-both numeric and political.
The following are areas from the list that relate to analytical skills:
 Data gathering techniques

 Decision making techniques

 Information management tools, techniques, and methods

 Prioritization/time management

 Problem solving tools and techniques

 Project management software

 Stakeholder analysis

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Project management presents both explicit and implicit data. The obvious data
analysis work like cost and time performance metrics are skills the project
manager must have in order to gauge the project performance. The implicit
data like stakeholder interests and political issues are areas that, if not
analyzed and managed correctly, could affect the project performance
negatively.

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Since the project manager is the link between the project and the rest of
the organization and stakeholders, it is essential for the project manager
to possess skills in communication.

The project manager’s ability to communicate effectively to both the

project team and project stakeholders ensures that all parties are receiving
the information they need to support the project.

On the Cross-Cutting Knowledge and Skills list, there are several areas that
deal in communication.
The following are skills from the list that relate to this area:
 Brainstorming techniques
 Facilitation
 Oral and written communication techniques, channels, and applications
 Presentation tools and techniques
 Targeting communication to intended audiences

Many of these skills can be learned and developed with practice.

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A PROJECT MANAGER’S PROFESSIONAL AND SOCIAL RESPONSIBILITY involves:

 ensuring personal integrity and professionalism by following legal

requirements, ethical standards, and social norms
 contributing to the project management knowledge base through
lessons learned, best practices, research, etc., in an effort to
improve the project management quality, and to enhance
colleagues’ abilities and the project management profession
 increasing and applying enhanced personal professional knowledge
to improve project management services
 promoting team and stakeholders interaction within a professional,
cooperative, and respectful environment, to encourage effective
collaboration

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A CODE OF CONDUCT is critical for all professions and helps ensure
good ethics are practiced throughout the particular organization.

CONDUCTING WORK IN AN ETHICAL MANNER helps the profession

earn the confidence of the public, employers, employees, and project
team members.

THE PMP CODE OF PROFESSIONAL CONDUCT requires the manager to:

 broadcast PMP® conduct code standards to other PMI®

(Project Management Institute) members
 ensure no conflict of interest compromises project
integrity
 cooperate with PMI regarding ethics violations and violators

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General responsibilities of the project manager to the profession with regard
to the PMP Code of Professional Conduct include:

 complying with all organizational rules and policies

 providing and complying with laws and ethical representations of
the profession
 recognizing and respecting others' intellectual property
 supporting and disseminating the PMP Code.

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 THE PROJECT MANAGER’S RESPONSIBILITIES TO THE PROFESSION
COMPLIANCE WITH ALL ORGANIZATIONAL RULES & POLICIES INCLUDE:

 A responsibility to provide accurate and truthful representations

concerning all information directly or indirectly related to all aspects of the
PMI® Certification Program, including, but not limited to following:
examination applications, test item banks, examinations, answer sheets,
candidate information, and PMI Continuing Certification Requirements
Program reporting forms.

 A responsibility to report possible violations of the PMP Code of

Professional Conduct by individuals in the field of project management.

 A responsibility to cooperate with PMI concerning ethics violations and the

collection of related information

 A 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.

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CANDIDATE/CERTIFICANT PROFESSIONAL PRACTICE:

 A responsibility to provide accurate, truthful advertising and

representations concerning qualifications, experience, and
performance of services
 A responsibility to comply with laws, regulations and ethical
standards governing professional practice in the state or province,
and/or country, when interacting with PMI and when providing
project management services
 A responsibility to act in an honest and ethical manner when
interacting with PMI and when providing project management
services
 A responsibility to maintain and respect the confidentiality of the
contents of the PMP Examination

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ADVANCEMENT OF THE PROFESSION:

 A 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
 A responsibility to support and disseminate the PMP Code of
Professional Conduct to other PMI certificants.

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RESPONSIBILITIES TO CUSTOMERS AND THE PUBLIC

QUALIFICATIONS, EXPERIENCE, AND PERFORMANCE OF PROFESSIONAL

SERVICES:
 A 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
 A responsibility to maintain and satisfy the scope and objectives
of professional services, unless otherwise directed by the
customer
 A responsibility to maintain and respect the confidentiality of
sensitive information obtained in the course of professional
activities or otherwise where a clear obligation exists

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CONFLICT OF INTEREST SITUATIONS AND OTHER PROHIBITED PROFESSIONAL
CONDUCT:
 A responsibility to ensure a conflict of interest does not
compromise legitimate interests of a client or customer, or
influence or interfere with professional judgments
 A responsibility to refrain from offering or accepting inappropriate
payments, gifts, or other forms of compensation for personal
gain, unless it is offered or accepted in conformity with applicable
laws or customs of the country where project management
services are being provided.

ADMINISTRATION OF THE CODE OF CONDUCT

“By becoming a PMP certificant, you agree to abide by the Code of Conduct.
PMI reserves the right to suspend or revoke the credential of any PMP
certificant who is determined to have committed a violation of this Code or
otherwise failed to adhere to the tenets of this Code.”

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THE GREATER THE PROJECT RISK, THE MORE IMPORTANT IT IS TO ESTABLISH
AUTHORITY RELATIONSHIPS. Authority relationships reduce poor
communication and misinformation as well as reduce incidents that
encourage bribery, gifts, proprietary information leaks, and unsubstantiated
whistleblowing and antagonism.

TIPS ARE BRIBES when they are paid to government officials. BRIBERY is a
remuneration for performance of an act inconsistent with a work contract or
nature of the work to be performed. Bribes are often tied to conflicts of
interest.

KICKBACKS are percentage payments and gratuities that are outright gifts and
money.

TRADE AND PROPRIETARY SECRETS AND TECHNICAL EXPERTISE, knowledge,

and experience often overlap when an employee leaves the company to join a
different one. Most states punish theft of trade secrets, and many
organizations insist employees sign confidentiality agreements as part of
their employment and out-processing. When there is no formal legal
agreement, it is up to the individual's codes of loyalty and ethics not to
disclose trade secrets.

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WORKERS HAVE THREE BASIC OBLIGATIONS TO THIRD PARTIES:
 truthfulness
 non-injury
 fairness

Workers’ obligations to the firm, coworkers, and outside parties are based on:
 code violations
 injury
 legalities

WHISTLEBLOWING is an employee act of informing the public about an employee’s

or organization’s illegal or immoral behavior

CONFLICT MANAGEMENT considers the manager as the intervening force. It is

NOT the manager’s responsibility to resolve the conflict, only to be the referee
and counselor in helping the participants reach an acceptable agreement.

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PROJECT CONSTRAINTS limit the project manager's options. They affect the
project:
 scope
 staffing
 scheduling

When there are gaps in the scope statement, it is the sponsor and customer
who created the scope statement that should address them. Tasks should
not be added without the sponsors’ and customers’ approval, since they
were involved in creating the scope statement.

Ignoring stakeholders’ concerns only compounds problems. The project

manager must address issues, rather than expect management to begin
costly and extensive lawsuits that delay the project. Discussing the issue is
preferable to ignoring it and having it go unresolved.

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 PROBLEM-SOLVING, DECISION-MAKING, & MORAL JUDGMENTS

It is the responsibility of the project manager to make decisions, rather than

pass them on or ignore them. PROBLEM-SOLVING and DECISION-MAKING are
primary functions of the project manager. BRAINSTORMING generates a
quantity of plausible solutions.

BRAINSTORMING is an information gathering technique that focuses on

quantity. All ideas are valid and there should be no rush to judgment
regarding feasibility or value. The more ideas are generated, the greater
chance there is to come to an effective solution. Sessions are informal (no
authority figure) and should not extend beyond sixty minutes, since typically
by that time all the immediate and logical ideas have been documented.

MORAL JUDGMENTS should be logical, based on facts. They should appeal to

valid moral principles. Open-minded and reflective discussion is paramount.

A USEFUL APPROACH TO RESOLVING PRACTICAL MORAL PROBLEMS is to

identify the obligations (of the firm, to itself, its employees and its customers),
ideals, and ethics in a given situation and then identify where the emphasis
should lie among these considerations.

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As organizations become more complex and add more jobs, their culture
becomes more bureaucratic and formal. New structure elements and
interrelationships are created.

FORMALIZATION addresses written rules and procedures deemed necessary to

maintain organization control and coordination.

DECENTRALIZED DECISION-MAKING is that which is delegated down to

subordinates. Centralized decision-making is that which comes from top-
management.

EGOISM is the consequentialist theory that an action is right when it promotes

the individual’s best interests. Views are based on the fact that humans are by
nature selfish.

UTILITARIANISM states that the morally right action is the one that provides
the greatest happiness for everyone affected (company, employees,
customers).

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KANT’S ETHICS stresses action based on a sense of moral duty.

TROUBLESHOOTING is usually part of a project’s requirements. The project

manager should not release a product to the buyer, who will in turn release it to
the public, that has not been fully tested and complete.

The theory of ENTITLEMENT states that the distribution of goods, money, and
property is just, if people are entitled to what they have and have acquired it
without violating the rights of others.

The LIBERTARIAN THEORY identifies justice with liberty, or freedom. In this

instance, the company feels employees should live and conduct their personal
lives according to their own choices, free from the interference of others.
Libertarians reject the concern for total social well-being.

DISTRIBUTIVE OR ECONOMIC JUSTICE assesses society's distribution of social

benefits and burdens according to wealth, status, income, and power. Influential
(wealthy) citizens can impact projects without minorities and others being aware
of how the decision may impact them.

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EMINENT DOMAIN (power) allows the government to condemn property they feel
necessary for improvement projects. Compensation may be offered, but it is not
a prerequisite.

COMMUNICATIONS

A RISK-TAKER TYPE MANAGER can suddenly, without warning, develop new

solutions to old or existing problems. Due to their reactive style and their lack
of communication, they provoke strong feelings and opinions among followers.
It is important these managers learn not to begin communications without the
formulation of goals and visions, and end by informing employees of them.

FEEDBACK is intended to change or alter messages so the intended thought or

idea is understood. EVALUATIVE FEEDBACK involves judging the relevance,
worth, goodness, or appropriateness of the received message.

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BIAS, STEREOTYPING, OR GENERALIZING people and their actions adds to a
person’s filters, which prevents them from hearing the full message. One-way
communication channels, which place the responsibility for the message entirely
on the listener, may also contribute to narrow-minded views.

COMPONENTS OF ‘SOCIAL STRAIN’, which influence viewpoints impacting

effective communication within the diverse workplace include:
 economic class (views on authority, politics, culture, etc.)
 residence (where one is from and lives, and where the organization
is located)
 ethnic inheritances (racial, national, religious origins)
 gender and age (gaps, seniority and power roles)
 self-interest (personal beliefs)

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The typical email system is larger than the entire company database, since the
email system stores all versions of documents created in the form of
attachments. It has become a companies’ central filing catalogue. What goes on
or through a company’s email system is filed nearly forever. Workplace emails
are seldom entirely private. Never email anything you wouldn’t want the whole
world to see and read publicly.

NETWORK ETIQUETTE typically involves “one-to-many” correspondence or

communications such as mailing lists, Netnews, NewsGroups, newsletters.
Netiquette also includes information services, such as postings on company
intranets and websites. Newsgroups should be reviewed to know "culture."
Messages and articles should be brief and subject lines should be relevant.
Large audiences will read the postings.

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 THE ORGANIZATION

THE CORPORATE CULTURE is the company environment that encompasses a

general belief, value system, set of behavioral norms, set of mores, and way of
doing business. The culture is unique to each corporation. Different cultures
affect organizational performance differently. Cultures are comprised of
organizational elements such as:
 size
 external environment
 technology

The self-serving goals of an organization are known as the organization’s

politics. A company's politics influence corporate culture relationships and
behaviors.

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POLITICAL ELEMENTS include:
 relationships and interrelations between employees and the
organization
 how each organization defines its self-interests or goals
 strategies each organization uses to generate support for its
objectives and goals
 basic autonomy or dependency of each organization

BENEFITS: Rest, vacations and leisure used to be rewards for hard work, and
not necessarily given for seniority or as part of an employment incentive
package. Younger workers typically work to live, rather than live to work and
save. Most employees (particularly those under forty-five) believe the
psychology of entitlement. Entitlement states that individuals are entitled to a
secure and “decent” job, dignified retirement, suitable housing, healthcare,
and a clean and safe work environment.

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 DIVERSITY

SYSTEMIC BARRIERS INVOLVING DIVERSE INTERACTIONS common to

organizations include:
 exclusion of minorities from networks
 limited mentoring relations
 “quotas” in the form of tokenism

DISCRIMINATION includes behaviors based on prejudice such as negative

attitudes within work groups and delayed promotions.

TOKENISM favors diverse individuals or groups, and causes stressful

workplace conditions. Tokenism often results in labor, union, and
management conflicts. Individuals or groups who become actual “tokens” tend
to suffer co-worker recourse from being too visible, in exaggerated contrast
with others. They also have less of a role identity than their peers.

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 MANAGING & LEADERSHIP

The manager has a social responsibility (to employees and individuals) as well
as a corporate responsibility. Policies and codes must be enforced, followed
up with training, education, sufficient monitoring, and discipline with
consequences for continued infractions.

ENFORCING CORPORATE MORAL CODES is part of following up on social

responsibilities. There is an emphasis on the importance of monitoring and
managing corporate culture to prevent dysfunctional behaviors.

SITUATION CONTROL is the amount of control and influence the manager has
in his or her immediate work environment.

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POWER is part of leadership, and is neither good nor “evil.” Power is simply the
capacity one has to influence others’ behaviors.

It is very important to know how, when and what kind of power to exert to get
the best results. POSITION POWER refers to the amount of power and authority
the leader has in determining rewards and punishment. Position power is used
in an effort to obtain compliance from subordinates.

Managers and leaders obtain their power similarly to how they obtain their
authority. Some individuals assume it, while others have it bestowed upon them
either by the organization, higher-ups, or by their followers. LEADERSHIP POWER
may come from a personal or a positional source.

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COERCIVE POWER is based on fear, and employees do what is required to avoid
consequences of discipline, punishment, or other negative outcome.
Punishment must be viewed negatively by the subordinate to have the desired
effect. An organization’s regulatory and disciplinary procedures are based on
coercive power, which are expected to be executed by the manager. The key to
constructive use of coercive power is to reprimand the behavior, coupling it with
praise of the employee as a valuable asset to the organization.

MANAGEMENT & LEADERSHIP STYLES

MCGREGOR’S THEORY ‘X’ STYLE OF MANAGEMENT assumes that workers
inherently dislike and avoid work, forcing the manager to threaten, coerce, or
use various means of control to get workers to perform to meet objectives.

MCGREGOR’S THEORY ‘Y’ STYLE OF MANAGEMENT assumes that workers do not

dislike work, but rather consider it as a natural life process. They are motivated
by satisfaction of esteem and the self actualization of having basic needs met.

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THEORY ‘Y’ MANAGERS’ ATTITUDES tend more toward human nature, which
largely influences how they behave and lead. They believe more in assumptions
and management by objective.

Managers and/or leaders who have a strong EXTERNAL LOCUS OF CONTROL act
to make the workplace into a more productive environment and also make
employees' attitudes and behaviors more positive. They begin by responsibly
taking charge of situations, changing the environment and employees, and
interjecting new methods and practices. They establish their sub code of
norms, mores, and values.

CHANGE SUCCESS is very dependent upon leadership, but (poor) performance

is NOT indicative of a change or leadership problem. Managers/leaders must
be recognize, before it is obvious, that the status quo is not sustainable or
scalable. This is difficult if current metrics appear conceptually and practically
solid.

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LEADERSHIP STYLES may be based on the leader’s:
 personality
 personal traits
 effectiveness
 environment present at the time

COACHING LEADERS are participative, and encourage input, serious consultation

and ideas from employees. They are highly directive-oriented, but they also are
highly supportive.

Coaching teaches critical thinking about ideas and behaviors regarding a subject.
Problem-solving techniques allow the individual latitude to decide which method
is personally the best for them. The greatest benefits of coaching are that the
subordinate can see the results of the decisions they make almost immediately.
Coaching stresses that all managers become responsible for developing
subordinates, and for increasing their knowledge. It is extremely important that
the coach does not pass along false or incorrect information, or neglect the
training program altogether.

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Leadership can be ‘overplayed’ when it is evaluated according to performance,
since positive or negative outcomes generate strong reactions. This can be
avoided if the leader becomes the focal-point. Roles of individuals involved,
the task to be performed, available technology, the environment and
organizational constraints on behavior, are all downplayed.

MOTIVATING EMPLOYEES

MANAGEMENT MOTIVATORS include:

 recognition
 responsibility
 achievement
 advancement and promotion
 job satisfaction

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HERZBERG’S MOTIVATION THEORY addresses stimuli for growth and
advancement needs in accordance with MASLOW’S HIERARCHY OF NEEDS.

THE MOST EFFECTIVE WAYS TO MOTIVATE EMPLOYEES are to:

 give assignments that provide challenges and have realistic

timelines and deadlines
 clearly define performance expectations
 give proper criticism as well as credit and honest appraisals

Motivating employees is difficult to do during a project that has a finite

lifetime. The manager can create a secure project environment by placing
individuals in positions in which they have been properly trained. It also
requires informing employees about how they contribute to the overall
project.

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 PERSONNEL/HUMAN RESOURCE MANAGEMENT

Moral issues that arise during interviewing generally have to do with how the
interview was conducted. Personnel management cautions interviewers against
being rude, hostile, coarse, or condescending. Interviewers tend to gravitate to
those they identify with and develop bias toward those they do not.

TESTING is an integral part of the hiring process, especially with large firms. To
be successful, however, a test must be valid and reliable. It must measure the
consistent quality of the candidate.

Typically, the more women who work in a particular occupation (i.e.: nursing,
childcare, office administration, etc.) the less it pays. COMPARABLE WORTH
advocates contend that traditionally women's occupations have demonstrated a
bias and discriminatory wage system, keeping their pay considerably lower than
that of male occupations which require comparable education, skills, and
responsibilities.

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MANDATORY RETIREMENT can cause problems for older workers who can still
work and need health insurance coverage. It also takes experience out of the
workforce. The company's argument is typically to keep a rotation of fresh
talent and current methods and expertise, rationalizing that older workers
increasingly have difficulty performing their jobs due to aging eyesight,
hearing, motor skills, etc. Some organizations have a mandatory retirement age
(70 yrs.)

DRUG TESTING AND RANDOM DRUG TESTING are commonly performed in

conjunction with the Drug-Free Workplace Act of 1988 (P.L. 100-690, Title V,
Subtitle D). The Act also mandates employers establish a drug-free awareness
program and notify employees about the hazards of substance abuse and
consequences of usage. Employees found in violation of the drug-free program
must attend a prescribed rehabilitation or drug abuse assistance program.

(Title I) of the Americans with Disabilities Act of 1990 (ADA) provides

employment provisions for "reasonable accommodations". Reasonable
accommodations for physically handicapped employees may be ramps,
workstation height, and restroom spaces. For those with HIV/AIDS it may mean
flextime, unpaid leave, and large print.

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The Occupational Safety and Health Act of 1970 created the Occupational Safety
and Health Administration (OSHA) within the Department of Labor. Its primary
function is to reduce workplace hazards and to implement safety and health
programs. Employees have rights to refuse to perform in unsafe areas without
recrimination. They can review company and OSHA standards and rules and
request employer information on safety and health hazards, and also request an
OSHA director inspect the workplace.

CONFLICT MANAGEMENT is a general term used to describe a variety of ways

people handle grievances. Negative, less productive, methods include gossip,
ridicule, feuding, terrorism, and, avoidance.

CONFRONTATION involves problem-solving by directly confronting the conflict,

and making the parties work through their differences.

WITHDRAWAL is handling conflict by retreating or withdrawing from a potential

disagreement.

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 CONFLICT RESOLUTION & NEGOTIATIONS

Typically, conflicts between and among stakeholders should be resolved in the

best interest of the customer.

The best solution is to positively find commonalities among the stakeholders'

objectives. SMOOTHING de-emphasizes or avoids areas of differences and
emphasizes areas of agreement.

NEGOTIATIONS should take place at the lowest level of intentions. Higher-level

authority should be used only if agreement cannot be reached.

When each side is determined to defeat the other, negotiations deteriorate

into a WIN-LOSE STRATEGY, and negotiations predictably fail. Third-party
mediators are called in when negotiations break down.

It is necessary to call in A THIRD-PARTY MEDIATOR when relationships

deteriorate to the point where there is enduring negativity, the parties become
suspicious and refuse to cooperate with each other, and attitudes and minds
are closed.

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The primary purpose of the third-party mediator is to separate people from the
problem and reestablish clear communication. The mediator sets results
criteria and works toward altering attitudes, acting as interpreter of messages
between the parties, exposing stereotypes, and, raising awareness of each
group’s positive intentions.

Stress is most effectively minimized, and control is maintained by time

management. Employees have stress when they are not sure how long an
activity will, or should, take. Stress results when workers are rushed, and
quality suffers.

TIME MANAGEMENT is especially important during change processes, and

maintenance of the change situation. Time management should be
incorporated into the environment for those who micromanage simple
situations.

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STOP!

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