PMP Exam Preparation v7.1 (Consolidated) PDF

Project Management Professional (PMP)®
Exam Preparation
Course Book
PMP is a registered mark of the Project Management Institute, Inc.
Table of Contents
Module 1 Module 6
An introduction to PMP® Certification Project Schedule Management
Course
Module 7
Module 2 Project Cost Management
Project Management Framework
Module 8
Module 3 Project Quality Management
Project Management Processes
Module 9
Module 4 Project Resource Management
Project Integration Management
Module 10
Module 5 Project Communications Management
Project Scope Management
PMP and PMBOK are registered marks of the Project Management Institute, Inc. 2
Table of Contents
Module 11
Project Risk Management
Module 12
Project Procurement Management
Module 13
Project Stakeholder Management
Module 14
Ethics & Professional Conduct
Module 15
PMP® Examination Tips and Tricks
MODULE 1
Introduction to PMP® Certification Course

Based on the PMBOK® Guide - Sixth Edition
Learning Objectives
Learning Objectives for this Module are:

What is PMI® & PMBOK® Guide? Based on the Project Management
Evolution of the Project Management Institute Institute, A Guide to the Project
Management Body of Knowledge,
Certifications offered by the PMI®
(PMBOK® Guide) - Sixth Edition,
PMI® contact resources Project Management Institute, Inc.,
What is PMP®? 2017
Prerequisites for the PMP® Exam
PMP® Exam Syllabus
How is the PMP® Exam structured?
About this tutorial
PMP, PMBOK are registered marks of the Project Management Institute, Inc. 5
PMP® Exam Preparation
What is the PMI® and the PMBOK® Guide?
PMI: Project Management Institute

PMI official website: www.pmi.org
PMI is the world’s leading not-for-profit membership association for the Project Management profession.
PMI offers PMP® (Project Management Professional) examinations across the world.
PMBOK® Guide: Project Management Body of Knowledge
Latest Edition of the PMBOK® Guide is the PMBOK® Guide - Sixth Edition
Evolution of the PMI® and the PMBOK® Guide:
1969 - Project Management Institute was founded.

1976 - Discussion on Standards
1981 - PMI Board of Directors approved the Proposal
1984 - Approval of the 2nd standards; launch of PMP® certification
1985 - Workshop as part of PMI® Annual Seminars
1986 - Three New Sections
Risk Management
Contract/Procurement Management
1987 - PMBOK® Guide was approved and published

1996 - A guide to the PMBOK® Guide
2000 - Second Edition
2004 - Third Edition
2008 - Fourth Edition with examination changes in 2011
2012 - Fifth Edition published
2017 - Sixth Edition published
Certifications offered by the PMI:
Certified Associate in Project Management (CAPM)®

Project Management Professional (PMP)®
PMI® Scheduling Professional (PMI-SP)®
PMI® Risk Management Professional (PMI-RMP)®
Program Management Professional (PgMP)®
Portfolio Management Professional (PfMP)®
Agile Certified Practitioner (PMI-ACP®)®
Professional Business Analyst (PMI-PBA)®
CAPM, PMI-SP, PMI-RMP, PgMP, PfPM, PMI-ACP, and PMI-PBA sre registered marks of the Project Management Institute, Inc.
PMI® Contact Resources
Americas
Project Management Institute, Inc. - Headquarters
14 Campus Boulevard, Newtown Square, PA 19073-3299 USA
E-mail: customercare@pmi.org
Toll number: +1-610-356-4600
Toll free number: 1-855-746-4849
Fax:+1-610-356-464
EMEA India
PMI EMEA Service Centre PMI India
Dundalk, Ireland PMI® Organization Centre Private Limited, Mumbai, India
E-mail: customercare.emea@pmi.org E-mail: customercare.india@pmi.org
Toll number: +353-42-682-5610 Website: www.pmi.org.in
(Middle East and Africa) New Delhi: +91-124-4517-140
Bangalore: +91-80-6583-3671
PMI® Contact Resources
Asia Pacific China

PMI Asia Pacific Service Centre PMI China
20, Bendemeer Road Cyberhub, #04-02 Room 1107, 11th Floor, Beijing Sun Palace Building
Singapore 339914 Tel: +65 6496 5501 No.12A, Taiyanggong Middle Road
Fax: +65 6496 5599 Chaoyang District, Beijing 100028, China
E-mail: customercare.asiapac@pmi.org Tel: +86-10-84299191
Fax: +86-10-84299292
Email: chinaoffice@pmi.org
Website: china.pmi.org
What is PMP®?
PMP® : Project Management Professional
PMP® is a credential offered by the Project Management Institute (PMI)®
PMP® exam is based on:
PMBOK® Guide (see PMP® Exam Content Outline)
PMI® Code of Ethics and Professional Conduct
Other current Project Management practices
Once certified PMP® Certification is valid for 3 years.
Holders must achieve 60 PDUs for renewal
PDU: Professional Development Units
1 PDU corresponds to 1 hour of professional development activity approved by the PMI®
Prerequisites for the PMP® Exam

Training - 35 contact hours of project management training, e.g. this program enables you to make a claim
for the PMI's 35 hour training requirement.
Project Experience - Experience leading and directing project "tasks":
With a four year bachelor’s degree or global equivalent – 4500 hours over at least 36 months
With High School/Diploma - 7500 hours over at least 60 months
Application for exam with payment can be submitted online.
After accepting your application, PMI will send an electronic notification indicating:
Examination scheduling instructions, or
The application has been selected for audit
You need to schedule the exam within 1 year from the date of registration
Format of the PMBOK® Guide

The PMBOK® Guide - Sixth Edition consolidates the cross-sectoral and global Project Management
experience of thousands of practitioners.
It presents the following in a self-consistent form:

49 Project Management processes assigned to
5 Process Groups (related to when they are used) and
10 Knowledge Areas (related to why they are used)
The 5 Process Groups:
1. Initiating
2. Planning
3. Executing
4. Monitoring & Controlling
5. Closing
PMP® Exam Preparation - The 5 Process Groups:
Initiating:
Consists of 2 processes used to:
Develop Project Charter

Identify Stakeholders
Planning:
There are 24 planning processes that are used for:
Defining the Project Scope

Defining the project's objectives
Defining the course of action required (Project Management Plan)
The processes in this group are:
▪ Develop Project Management Plan ▪ Determine Budget

▪ Plan Scope Management ▪ Plan Quality Management
▪ Collect Requirements ▪ Plan Resource Management
▪ Define Scope ▪ Estimate Activity Resources
▪ Create WBS or Work Breakdown Structure ▪ Plan Communications Management
▪ Plan Schedule Management ▪ Plan Risk Management
▪ Define Activities ▪ Identify Risks
▪ Sequence Activities ▪ Perform Qualitative Risk Analysis
▪ Estimate Activity Durations ▪ Perform Quantitative Risk Analysis
▪ Develop Schedule ▪ Plan Risk Responses
▪ Plan Cost Management ▪ Plan Procurement Management
▪ Estimate Costs ▪ Plan Stakeholder Engagement.
Executing:
There are 10 executing processes where all the work planned is carried out.
Direct and Manage Project Work
Manage Project Knowledge
Manage Quality
Acquire Resources
Develop Team
Manage Team
Manage Communications
Implement Risk Responses
Conduct Procurements
Manage Stakeholder Engagement
Monitoring and Controlling: The processes here are:

Consists of 12 processes primarily used to:
Monitor and Control Project Work
Perform Integrated Change Control
Track actual performance
Validate Scope
Identify deviations from plan Control Scope
Implement corrective actions Control Schedule
Report on project performance Control Costs
Control Quality
Control Resources
Monitor Communications
Monitor Risks
Control Procurements
Monitor Stakeholder Engagement
Closing:
Consists of 1 processes to:
Formally close down the project or phase
The process is:
 Close Project or Phase
PMP® Exam Preparation – Knowledge Areas
The 10 Knowledge Areas are:

Integration Management
To ensure integration of all the Project Management processes and activities in meeting the project's objectives.
Scope Management
To ensure that the project contains all the work required to meet the objectives, nothing more, nothing less.
Schedule Management
To ensure that the project is completed within the time constraints.
Cost Management
To ensure that the project can be completed within the approved budget.
Quality Management
To ensure that the project meets the quality requirements of the stakeholders.
PMP® Exam Preparation – Knowledge Areas
The 10 Knowledge Areas (continued):

Resource Management
To organize, develop and manage the project team
Communications Management
To ensure the management of project information, from collection to disposition
Risk Management
To increase the Probability (P) & Impact (I) of opportunities and decrease the Probability (P) and Impact (I) of threats
Procurement Management
To ensure that products or services are of the required quality and are procured for integration with the final
product
Stakeholder Management
To identify and manage stakeholders throughout the life cycle of the project and increase the chance of project
success.
How is the PMP® exam structured?
There are 200 multiple choice questions to be answered in 4 hours

Only 175 answers count for examination purposes
25 questions are randomly placed pretest (un-scored) questions
PMI grades the exam on each of the 5 process groups.
Based on this grading the PMI declares a PMP® pass or fail
Each right answer will earn 1 point Project Management Process Percentage of Questions
There is no penalty for wrong answers.
Initiating 13
Planning 24
Executing 31
Monitoring & Controlling 25
Closing 7
About the Course
Introduction to the PMP® Certification Course Risk Management

Project Management Framework Procurement Management
Project Management Process Groups Stakeholder Management
Knowledge Areas (10): Ethics and Professional Conduct
Integration Management PMP® Examination tips and tricks
Scope Management
Schedule Management
Cost Management
Quality Management
Resource Management
Communication Management
End of Module 1
Introduction to the PMP® Certification Course

PMP is a registered mark of the Project Management Institute, Inc. 25

Course Book

Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15

MODULE 2

Learning Objectives - Project Management Framework
In this module, we will cover:

Definition of a Project Strategic Alignment of Projects
What is Project Management? Business Benefits
What is Operations Management? Benefits Realization
What is Program Management? Business Value
What is Portfolio Management? Constraints
Project Management Office (PMO) Organizational Systems
Portfolio, Program, Project – A High Level View Enterprise Environmental Factors
Mission, Vision, Goal, Strategy, Objective and Tactic Organizational Process Assets
Organizational Strategy Project Life Cycle Vs Product Life Cycle
Project’s Link with Organizational Strategy Role of a Project Manager
Definition of a Project
A project can be defined as a unique endeavor involving many activities that have
a beginning and an end, undertaken to create a unique product, service or result.
It brings about change and is often executed in a fast changing and high risk environment.
It will end when either its goals and objectives are met or the project is brought
to a premature end (termination).
In principal, projects are non-repetitive.
Project - Characteristics
Unique Product, Service , or Result : Projects are undertaken to fulfill objectives by producing
deliverables.
A unique product that can be either a component of another item, an enhancement or
correction to an item, or a new end item in itself
A unique service or a capability to perform a service
A unique result, such as an outcome or document
A unique combination of one or more products, services, or results
Temporary Endeavor : Indicates that a project has a definite beginning and end
Projects drive change : A project is aimed to moving an organization from one state to another
state in order to achieve a specific objective.
Projects enable business value creation : Business value in projects refers to the benefits that
the results of a specific project provide to its stakeholders. The benefit from projects may be
tangible, intangible, or both.
Project Management
The application of knowledge, skills, tools & techniques to meet the project requirements:
Project Management as well as project product knowledge
Interpersonal, management & technical skills
Tools and techniques such as earned value management, network diagramming
techniques, decomposition etc.
Accomplished through the appropriate application and

integration of the 49 logically grouped Project Management processes.
The primary challenge of Project Management is to achieve all of the project

goals and objectives while respecting the project constraints.
Operations Management
Operations Management is that aspect of a business enterprise which is involved in the ongoing
production of goods and services in the most efficient and effective way:
It aims to maximize profits.
It is concerned with managing processes that transform inputs into outputs.
Its efficiency and effectiveness can be monitored by the application or implementation

of quality systems and techniques.
In contrast with projects, it is usually repetitive.
Program Management
A program is a group of projects, which are managed together to obtain greater benefits and
efficiency which would not be available when managing them individually, while minimizing the
negative risks (threats) and costs
For a group of projects to be called a program, it must add some value in managing them together.
If there is no added value it cannot be defined as a program
Program Management is the coordinated management of a specific program to achieve its

strategic goals, objectives and benefits
Program Management also includes coordinating and prioritizing resources across projects,
managing links between the projects and the overall costs and risks of the program
Program focus is on the realization of benefits through projects.

Portfolio Management
Portfolio focus is on aggregate investment performance and benefit realization.
A portfolio refers to a collection of projects or programs and operations that are grouped together
to effectively meet strategic objectives.
Project Portfolio Management is a term used to describe methods for analyzing and collectively
managing a Project Portfolio.
The projects or programs of the portfolio may or may not be interdependent or directly related.
Portfolio Management focuses on resource prioritization to serve the organization’s strategy.
Project Management Office (PMO)
The PMO is an organization structure that is responsible for providing centralized

coordinated management and support for projects in the organization.
PMOs create value through Standardization (e.g. process, systems), Knowledge
(e.g. retention, training) & Consulting (e.g. project, outcome)
Typical functions of the PMO include:

Providing coaching, training, mentoring, and oversight on how to manage projects.
Developing and managing procedures, policies, templates, and other documentation shared by
the projects.
Auditing projects to ensure compliance with set standards.
Managing shared resources across all the projects administered by the PMO.
Coordinating communication across projects.
Project Management Office (PMO) - Types
Supportive
Provide a consultative role by supplying templates, best practices, training, access to
information and lessons learned
Serves as a project repository
The degree of control is low
Controlling
Provide support and require compliance through various means
The degree of control is moderate
Directive
Take control of the projects by directly managing the projects
Project managers are assigned by and report to the PMO
The degree of control is high.
Portfolio, Program, Project – A High Level View
Portfolios can have sub-portfolios, projects or

programs, which are managed as a group to meet
strategic objectives
Programs can have a related set of subprograms,
projects, operations and other work managed in a
coordinated way to get benefits.
Projects are at the lowest level in this hierarchy to
create product or service or result.
A portfolio has a parent-child relationship with
component programs/projects; A program has a Portfolios, Programs, Projects and Operations
parent-child relationship with its projects

“A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management
Institute, Inc., 2017, Figure 1-3, Page 12“.
Vision, Mission, Goals
Vision: Vision describes the future state of the organization. Vision provides a long term direction.
Mission: The mission statement describes the purpose. Mission articulates the reason why it exists
and tells where to go.
Goals: An organization establishes goals that will move toward its vision.
Goals define what an organization wants to achieve in a multi-year period. Goals for an
organization are set in areas such as profitability, competitive position, technological leadership,
productivity.
Goals finally lead to clearly defined benefits and outcomes through strategic objectives.
Outcomes: Outcomes are the final results, outputs or deliverables realized through individual projects
inside a program or a portfolio.
Benefits: Benefits are the outcomes of actions and behaviors that provides utility to the intended
recipients. Benefits are the economic or other exploited effect of outcomes.
Strategy, Objective and Tactic
Strategy: An approach that you take to achieve goal. Strategies direct the execution of work intended
to achieve the goals. Hence goals of strategic nature are called strategic goals.
Objective: Objectives are measurable steps to achieve a strategy. These are quantifiable. Goals finally
will have objectives that measure goal achievement. Objectives serving the strategy are called strategic
objectives.
Tactic: Tactic is a tool that you use in pursuing an objective associated with a strategy. Tactics are
mostly short-term.
Although temporary in nature, projects help organization to achieve its goals which are aligned with
the organizational strategy. Projects in an organization mostly serve the tactical purpose.
Organizations can change their products, systems or operations by creating strategic business
objectives which are developed and implemented through projects.
Organizational Strategy
Overall 3 types of organization

Profit organization: An organization that exists primarily to yield a return for its owners.
Nonprofit organization: An organization that does not distribute its surplus funds to owners or
shareholders, but instead use them to help pursue its goal.
Government organization: An organization that exists under government ownership.
The strategic objectives of all types of organizations are outlined in the strategic plan.
Strategic Plan: Strategic plan of an organization documents the organization’s strategic vision, goals,
objectives and may contain a high level mission statement.
All projects should be aligned with this strategic plan.
Strategic plan is the key document that ensures project undertaken by the organization
contributes to overall organizational objectives.
Organizational Strategy (continued)
Organization’s strategic plan describes how an organization’s core strengths and competencies will
be used to:
Manage resources effectively
Manage stakeholder value
Capitalize on opportunities
Minimize impact of threats
Respond to changes in the market, legal, and regulatory environment
Reinforce focus on critical operational activities
Organization’s strategic plan acts as an input in the creation of project charter and is referenced in
the project Statement of Work (SOW) issued by the sponsoring organization for the project.
Project’s Link with Organizational Strategy
Top of the triangle – “vision”, “mission” and

“strategy and objectives” are the
components to set the targets or goals
Middle of the triangle – “portfolio
management”, “strategic planning and
management of projects, program and
operations” establishes appropriate actions
required to meet the goals
Bottom of the triangle – contribution of all
programs, projects and operations provide
value production capability or produces value
Strategic and Operational processes within an Organization
(with on-going operations)
Strategic Alignment of Projects
Executive Strategic Strategic Governance

Vision Mission
Management Plan Objectives
Portfolio Authorized
Management Portfolio
Project and Program Program

Authorized Performance
Program Project Project
Component Management
Measurements
Management Closeout
Operations
Management Operations
Cross Organization Project Management Relationship – Aligned towards Strategy
Strategic Alignment of Projects (continued)
Organizations have vision and mission as well as goals, strategies and objectives to achieve
the vision.
Organizational strategy is a result of its strategic planning cycle.
Vision and mission are translated into a strategic plan during the strategic planning cycle.
The strategic plan is within organization’s value boundaries.
The strategic plan of the organization is subdivided into a set of organizational initiatives.
Initiatives are grouped into portfolios. These initiatives establish portfolios of programs,
projects and operations components to be executed in a pre-determined period.
Projects or programs are linked to organization’s strategic plan by portfolio.
Within programs and portfolios, projects are a means of achieving organizational strategy
and objectives
Projects and Strategic Planning
Projects are often utilized to achieve the objectives of an organization’s strategic plan. Projects are
authorized as a result of one or more of the following strategic considerations:
Market demand, e.g., fuel-efficient cars in response to gasoline shortages
Strategic opportunity/business need, e.g., a training company authorizing a project to create a
new course to increase its revenue
Social need, e.g., a non-government org authorizing a project to provide portable water systems
and sanitation education to communities with high rate of infectious diseases
Environmental consideration, e.g., solar powered cars by an organization to reduce pollution
Customer request, e.g., an electric utility authorizing a project to build a new substation
Technological advance, e.g., developing new generation of smart phones based on LTE and 4G
technologies
Legal requirement, e.g., a project to comply with government regulations
Project Business Case
A documented economic feasibility study used to establish the validity of the benefits of a selected
project
Is used as a basis for the authorization of the project
Lists the objectives and reasons for project initiation
Helps measure the project success at the end of the project against the project objectives
Contents of a business case :
Business needs
Analysis of the situation
Recommendation
Evaluation.
Business Benefits
A benefit is an outcome of actions, behaviors, products or services that provides utility, value or a
positive change to the intended recipients, which can be the sponsoring organization as well as the
intended stakeholders.
Benefits can be certain and quantifiable and may include concrete conditions such as achievement of
organization’s financial objectives or creation of a physical product or service or utility, e.g.,
A 25% increase in revenue or gross margin
A 30% increase in sales
Reduced operating costs
Reduced delivery time or Faster response time
Reduced accommodation costs
Staff savings
Business Benefits (continued)
Benefits can also be less quantifiable (and hence typically captured qualitatively) and may produce
somewhat uncertain outcomes, e.g.,
Improvement in employee morale
Greater organizational flexibility
Customer satisfaction
Increased job satisfaction
Reduced incidence of health condition or disease
Improved presentation
Better market image
Better management information
Programs and Projects deliver benefits by enhancing current capabilities or developing new
capabilities. These support the organization’s strategic goals and objectives.
Benefits Analysis
Quantifiable Non-quantifiable
Benefits can be mapped against
attributes of financial, non- Financial and non-
financial, quantifiable, and non- Financial and quantifiable,
Financial quantifiable, e.g., alignment
e.g., increase in revenue
quantifiable. This is done while with strategy
analyzing the benefits.
Financial and quantitative benefits
Non-financial and Non-financial and non-
are quantitatively captured, Non-Financial quantifiable, e.g., faster quantifiable, e.g., increase
whereas most of the other types response time in team work
are qualitatively captured.
Benefits Analysis (continued)
Immediate Longer Term

While analyzing, benefits can also
have other aspects: they are either Tangible and
tangible or intangible, and they are Tangible and longer term,
Tangible immediate, e.g., reduced e.g., 30% increase in profit
incurred or enjoyed either accommodation costs
immediately or over the longer term.
Combining these aspects gives four
Intangible and Intangible and
categories as shown. Intangible immediate, e.g., better longer term, e.g., improved
Tangible benefits are quantified management information morale
whereas intangible benefits are
qualified.
Benefits Realization
Benefit realization illustrates – and measures – precisely how projects and programs add true value to
the organization.
Benefit realization is the practice of ensuring that the project produces the projected or desired
benefits, as outlined in the business case.
Organization’s with mature benefits realization process can benefit from:
Clearly identifying the strategic rewards prior to starting a project
Effectively assessing and monitoring risks to project success
Proactively planning for making necessary changes in the organization
Explicitly defining accountability for project success
Routinely extending responsibility for integration to the project team
High benefit realization is inextricably linked to the success of the projects
Benefits Realization (continued)
Benefits realization is part of program management. However, project managers need to be aware of
how well the project is progressing toward the delivery of benefits.
Project managers help identifying various measures for benefit realization.
To ensure realization a test period (e.g. soft launch in services) can be part of the total project time
before being operationalized.
Benefits realization is performed with the help of benefits register, benefits mapping and benefits
realization plan.
Benefits register: Benefits register collects and lists the planned benefits for the program. It
defines appropriate performance measure for each benefit.
Benefits realization plan: Benefits realization plan formally documents the activities necessary for
achieving the program’s planned benefits through projects, subprograms or other work.
Benefits mapping: It shows how benefits are mapped to strategic objectives.
Benefit Management in Program with Projects, Subprograms and Other work
Projects, Sub-programs, Other work Discrete Benefits
Project Benefit
Benefit
Benefit
Subprogram
Benefit Consolidated
Program Sustained
Benefit Benefits
Other work Benefit Benefits
Benefit
Subprogram Benefit Benefit
Benefit
Benefit
Project Benefit
Program Life Cycle
Project Benefits Management Plan
Describes how and when the benefits of the project will be delivered
Describes the mechanisms that should be in place to measure the benefits
Contents :
Target benefits
Strategic alignment
Timeframe for realizing benefits
Benefits owner
Metrics
Assumptions
Risks
Project Success Measures
Key questions that stakeholders and the project manager should answer :
What does success look like for the project?
How will success be measured?
What factors may impact success?
Project success should be measured in consideration toward achievement of the project
objectives.
Project success may include criteria linked to the organizational strategy and to the delivery
of business results.
Some key project objectives include :
Completing the project benefits management plan
Meeting the agreed-up financial measures in the business case
Meeting the non-financial objectives in the business case, etc.
Business Value
Business value is defined as the entire value of the
business. It is the total sum of all tangible and intangible Business Value
elements.
Business Value can be short, medium or long term
depending on the organization. Tangible Elements
Value is delivered when the organization is able to utilize (Monetary Assets, Fixtures,
the benefits coming out of the program – program is about Stockholder Equity, Utility )
getting benefits through projects.
In operations management, the delivery of value is
Intangible Elements
realized through day to day business processes. (Good will, Brand recognition, Public
Effective use of portfolio, programs and projects increases benefit, Trademarks)
value production capability and gives greater business
value from project investments.
Constraints
Constraints are usually: Typical constraints include: Constraints may also include:
Competing with one Time Contractual provisions
another Cost Organizational policies
Changing over time Scope Communication (language
Interrelated barrier)
Quality
Environment
Risk
Resources
Organizational Systems
• A system is a collection of various components that together can produce results not
obtainable by the individual components alone.
• Governance is the framework within which authority is exercised in organizations.
• Governance framework influences how :
• Objectives of the organization are set and achieved
• Risk is monitored and assessed, and
• Performance is optimized.
• Management Elements are the components that comprise the key functions or principles of
general management in the organization
Organizational Systems
Organizational Structure Types

• Organic or Simple
• Functional
• Multi-divisional
• Matrix – Strong
• Matrix – Weak
• Matrix – Balanced
• Project-oriented
• Virtual
• Hybrid
• PMO
Functional Organizational Structure
Projects running in this structure normally do not

Managing
have an appointed Project Manager Director
Director Director
Funding and reporting are through
the organization's functional Manager Manager Manager Manager Manager
structure
Resource Resource Resource
Project resources report to their own Resource Resource Resource

functional managers
Resource Resource Resource
Resource
Matrix Organizational Structures

The Project Manager shares responsibility for assigning project team members with the functional
managers. 3 types are described:
Managing Director
Weak Matrix: A part-time Project Manager is appointed who does not control
the project budget. The functional managers have more control over the Director Director
resources than the Project Manager.

Manager Manager Manager Project Manager
Balanced Matrix: The Project Manager and functional Resource Resource

Managers share responsibility for the project and authority
over the project resources equally. Resource Resource
Strong Matrix: A Project Manager who controls the project Resource Resource
budget is appointed full time. Resource
The Project Manager has more authority over the project resources than the functional managers.
Projectized Organizational Structure
The Project Manager has full authority over project resources, can assign project priorities and
direct the work of the project team members.
The project team members report only to the Project Manager.
Project
Manager
Team Team
Leader Leader
Resource Resource Resource Resource Resource
Enterprise Environmental Factors
Refer to conditions, not under the control of the project team, that influence, constrain, or direct
the project.
Internal and external factors that impact or influence a project’s success.
May originate from any or all of the enterprises involved in the project and include culture and
structure of the performing organization.
Internal to the organization : External to the organization :

Organizational culture, structure, Marketplace conditions
and governance Social and cultural influences
Geographic distribution of Legal restrictions
facilities and resources Commercial databases
Infrastructure Academic research
Information technology software Government or industry standards
Resource availability Financial considerations
Employee capability Physical environmental elements
Organizational Process Assets
The plans, processes, policies, procedures, and knowledge bases specific to and used by the
performing organization.
Formal or informal plans

Policies
Procedures
Templates
Guidelines
Lessons learned
Configuration management knowledge repositories, etc.
Project Life Cycle vs Product Life Cycle
The Project Life Cycle is a logical sequence of activities required to accomplish the project’s goals or
objectives.
Any project goes through a series of stages during its life, regardless of scope or complexity.
The Product Life Cycle usually consists of five major steps:
Product Development
Product Introduction
Product Growth
Product Maturity
Product Decline
The product will be withdrawn from the market when it becomes obsolete.
Project Life Cycle vs. Product Life Cycle
The Project Life Cycle has the following characteristics:

Phases within one project may be overlapping.
Typically one project phase does not last more than 6 months.
Phases may be repeated during a project.
Project phases may not be sequential.
The Product Life Cycle has the following characteristics:

Phases are non-overlapping.
Phases may last for several years.
Each phase occurs only once.
Phases are sequential.
Project Life Cycle

A project life cycle is the series of phases that a project passes through from its start to its completion.
In the Sixth Edition of the PMBOK® Guide, there are 5 types of life cycle:
Predictive Life Cycle
Iterative Life Cycle
Incremental Life Cycle
Adaptive Life Cycle
Hybrid Life Cycle
Project Life Cycle

Predictive Life Cycle has the following characteristics:
Scope and time, cost required to deliver that scope is known early in the life cycle
Used when product to be delivered is well understood, and there is substantial base for
industrial practice
Typically it follows sequential phases
Also known as Fully Plan-driven
The Iterative Life Cycle has the following characteristics:
The project scope is determined early in the project
Time and cost estimates are routinely modified as the product understanding increases
Iterations develop the product through a series of repeated cycles
Used when organizations need to manage changing objectives and scopes, to reduce complexity
of the project
Project Life Cycle

The Incremental Life Cycle has the following characteristics:
Deliverables is produced through a series of iterations
Functionality is successively added within a predetermined time frame
Will be considered complete only after the final iteration.
The Adaptive Life Cycle has the following characteristics:

It has also an iterative and incremental approach, but differs in that iterations are very
rapid - usually 2 to 4 weeks of time.
Fixed in time and cost before the start of iteration
Also known as Change Driven or Agile Methods
Used with a rapidly changing environment, when requirements and scopes are difficult to define in
advance
The Hybrid Life Cycle has the following characteristics:
Is a combination of predictive and adaptive life cycle.
The Role of the Project Manager
• The Project Manager is responsible for the overall accomplishment of the project, ensuring that the
project objectives are achieved.
• Project Manager role is different from the Functional Manager or Operations Manager
• Function Manager  Typically focused on management oversight for an administrative area
• Operations Manager  Typically responsible for a facet of core business
• The key role of the Project Manager is to ensure project integration.
The role of Project Manager comprises many responsibilities including:
Planning and defining scope Scalability, interoperability and portability

Resource planning analysis
Schedule development Activity planning and sequencing
Developing a budget Developing schedules

Cost estimating
Managing risks and issues
Controlling Quality
Risk analysis
Creating charts and schedules
Documentation Customer Liaison
Strategic influencing Team leadership
The Project Manager’s Sphere of Influence

• The Project
• Leads the project team to meet the project’s objectives and stakeholders’ expectations
• Works to balance the competing constraints on the project with the resources available
• The Organization
• Proactively interacts with other project managers
• Seeks ways to develop relationship that assist the team in achieving the goals and objectives of the project
• Maintains a strong advocacy role within the organization
• Works towards increasing the project management competency and capability within the organization
• The Industry
• Stays informed about current industry trends
• Assess the information to understand the impact or its applicability to the current project
The Project Manager’s Sphere of Influence
• Professional Discipline
• Contribution of knowledge and expertise to others within the profession
• Participation in training, continuing education, and development
• Across Disciplines
• May choose to orient and educate other professionals regarding the value of a project management approach to the organization
• May serve as an informal ambassador by sharing knowledge and advantages of project management
The Project Manager Competences : PMI Talent Triangle®
• Technical Project Management Skills

• The skills to effectively apply project management knowledge to deliver the desired outcomes for programs or projects.
• Focus on critical technical project management elements
• Tailor both traditional and agile tools, techniques, and methods for each project
• Make time to plan thoroughly and prioritize diligently
• Manage project elements – schedule, cost, resources and risks
• Strategic and Business Management Skills

• Involve the ability to see the high-level overview of the organization and effectively negotiate and implement decisions and
actions that support strategic alignment and innovation.
• Explain to others the essential business aspects of a project
• Work with the project sponsor, team, and subject matter experts to develop an appropriate project delivery strategy
• Implement that strategy in a way that maximizes the business value of the project
• Apply knowledge and information about the organization to ensure project alignment
• Determine the business factors that should be considered for the project
• Leadership Skills
• Ability to guide, motivate, and direct a team
• Apply leadership skills and qualities when working with project stakeholders

• Leadership : Qualities and Skills of a Leader
• Being a visionary
• Being optimistic and positive
• Being collaborative
• Managing relationships and conflict
• Communicating
• Being respectful, courteous, trustworthy and ethical
• Exhibiting integrity
• Giving credit to others where due
• Being a life-long learner who is results- and action-oriented
• Focusing on the important things – prioritizing work
• Having holistic and systemic view of the project
• Apply critical thinking
• Build effective teams.

• Leadership : Different forms of power
• Positional
• Informational
• Referent
• Situational
• Personal or charismatic
• Relational
• Expert
• Reward-oriented
• Punitive or coercive
• Ingratiating
• Pressure-based
• Guilt-based
• Persuasive
• Avoiding

• Leadership : Styles
• Laissez-faire
• Transactional
• Servant leader
• Transformational
• Charismatic
• Interactional

• Leadership : Personality
• Authentic
• Courteous
• Creative
• Cultural
• Emotional
• Intellectual
• Managerial
• Political
• Service-oriented
• Social
• Systemic
The Project Manager Role : Performing Integration
• Two-fold aspects
• Work with the project sponsor to understand the strategic objectives and ensure alignment with portfolio, program and
business areas
• Guide the team to work together to focus on what is really essential at the project level.
• Areas to focus
• Integration at the process level
• Integration at the cognitive level
• Integration at the context level
Questions - MODULE 2
Questions Module 2
Question – 1
Which of the following is not a characteristic of a project?
A. Unique
B. Temporary
C. Creates a product
D. Repetitive
Question – 2
You are working in an organization which is fundamentally a functional organization. However,
whenever needed, a group of people are taken from various functional departments to work on a
project, which is created specially. What kind of organization are you in?
A. Strong Matrix
B. Balanced Matrix
C. Functional
D. Composite
Question – 3
A project can be taken up in an organization due to many strategic factors.
Which one of the following is not a factor to initiate a project?
A. Technological advance
B. Market demand
C. Stakeholder wishes
D. Legal requirements
Question – 4
In which one of the following organizational structures is a project manager’s role not full time?
A. Weak matrix
B. Balanced matrix
C. Strong matrix
D. Both A and B
Question – 5
Which one of the statements below is not correct?
A. A program can have projects, but a project may not be part of a program
B. Program or projects in a portfolio may not be interdependent or directly related
C. A program can contain work outside the discrete projects under that program
D. A project must belong to one of the programs in an organization
Question – 6
After a project’s closure, as the project manager you have captured the lessons learned and stored into
the archive. The archive will be considered as:
A. Enterprise Environmental Factors
B. Organizational Process Assets
C. Policies for the Organization
D. Templates for future projects
Question – 7
Which one of the statements below is correct?
A. Value is realized when the portfolio is closed
B. Value is realized when the project is operationalized
C. Value is realized when the undertaken program delivers the intended benefits
D. Value is realized when initiatives are created from strategic objectives
Question – 8
Which one the following depicts the correct sequence?
A. Initiatives  Strategy  Portfolio  Program  Project
B. Vision  Initiatives  Strategy  Portfolio  Program  Project  Work Package
C. Strategy  Initiatives  Portfolio  Program  Project  Work Package  Task
D. Goals  Objectives  Strategy  Initiatives  OPM  Portfolio  Program  Project
End of Module 2

Course Book

Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15

MODULE 3


Learning Objectives - Project Management Processes
Project Life Cycle Overview

Project Life Cycle vs. Project Management process
Stakeholders
Key Stakeholders
Process Groups and Knowledge Areas
Inputs/outputs of the 49 Project Management processes
Organizational influences on Project Management
Project Life Cycle Overview
The project life cycle refers to a logical sequence of activities to accomplish the project’s goals or
objectives.
The project life cycle includes:

The technical work to be done in each phase.
When the deliverables are to be generated, how they are reviewed, verified & validated.
Who is involved in each phase.
How to control and approve each phase.
Project vs Process
A Project is a one-off, unique undertaking
A Process defines what work is done repetitively and how it is done
An effective way of managing projects is by utilizing repetitive processes, with suitable one-off
parameters.
To improve projects, the processes can be refined.
The model can be applied at all levels, e.g. for sub-projects and phases - it does not relate
solely to the project level.
5 Process Groups
The PMBOK® Guide - Sixth Edition categorizes Project Management processes in 5 Process
Groups:
Initiating = Starts the cycle

Planning = Plan
Executing = Do
Monitoring & Controlling = Check & Act
Closing = Ends the cycle
NOTE: Process Groups are groups of processes, not phases.
Initiating Process Group
The processes that facilitate the formal authorization to start a new project or a project phase.
Includes the following Project Management processes:
Develop the Project Charter to initiate & authorize the project.

Identifying stakeholders by identifying all people or organizations impacted by the project,
and documenting relevant information regarding their:
o Interests
o Involvement
o Potential impact on project success
Planning Process Group
This process group consists of those processes that:

Establish the total scope of the project
Define and refine the objectives, and
Develop the course of action required to attain those objectives.
The planning processes develop the Project Management Plan and the project documents that will be
used to carry out the project such as:
Requirements Traceability Matrix
Activity Lists
Activity Attributes
Risk Register etc.
Executing Process Group
The Executing Process Group is where all the project work related planning steps are put into action.
Can be thought of as the "do" component of the Plan-do-check-act (PDCA) cycle model.
Actions during execution process:
Direct and manage project work
Develop and manage project team
Manage stakeholder engagement
Implementing quality standards and assurance
Implement training needs
Implement approved changes
Conduct procurement as per the plan
Manage communications
Update project documents
Monitoring & Controlling Process Group
A project needs consistent monitoring and controlling in order to stay within scope,
be completed on time and within the allocated budget.
The Monitoring and Controlling Process Group concerns two main aspects of Project
Management:
Monitoring and measurement of project performance, making adjustments

as needed with the end goal of maintaining the project on its pre-planned course.
Providing the checks and balances needed to determine how a project is performing.
Monitoring & Controlling Process Group Actions
Integrated change control

Schedule / plan control
Cost control
Scope & quality control
Identify problems & implement solutions
Control stakeholder engagement
Control communications
Performance reporting
Closing Process Group
The closing process group formalizes acceptance of the product, service, or result and brings the
project or project phase to an orderly end.
This group includes the processes used to formally terminate all activities of a project or a project
phase, to hand over completed work products, or to close a cancelled project or project phase.
Obtain acceptance by the customer
Measure customer satisfaction
Conduct end review
Study impacts of tailoring to any process
Finalize and implement lessons learnt
Hand over project deliverables to the operations team.
Stakeholders
Project stakeholders are individuals or organizations whose interests are affected positively or
negatively by the project.
Different project stakeholders can have different and conflicting expectations, which need to
be analysed and managed.
Stakeholders can include customers, end users, sponsors, program managers, portfolio
managers, Project Management Offices (PMOs), project managers, project team members,
functional managers, operation managers, sellers, vendors, legal departments, etc.
Key Stakeholder Categories
Project Management Process Groups
Monitoring & Controlling
Planning
Initiating Closing
Executing
Flow Diagram - Inputs, Tools and Techniques and Outputs
Every project management process belongs to a process group and a knowledge area
Each process consists of three component groups:
Inputs
Tools and Techniques
Outputs
PROCESS – 1
Inputs from Other
Processes TOOLS
INPUTS AND OUTPUTS
TECHNIQUES
PROCESS – 2 Inputs to Other

Processes
TOOLS
INPUTS AND OUTPUTS
TECHNIQUES
Process Groups &

Process Groups Initiating Planning Executing Monitoring & Closing
Knowledge Areas & Knowledge Controlling
Areas
Integration Management Develop Project Charter Develop Project Direct & Manage Project Monitor & Control Close Project or Phase
Management Plan Work Project Work
Manage Project Perform Integrated
Knowledge Change Control
Scope Management Plan Scope Management Validate Scope
Collect Requirements Control Scope
Define Scope
Create WBS
Schedule Management Plan Schedule Control Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Durations
Develop Schedule
Cost Management Plan Cost Management Control Costs

"Management Institute, A Guide to the Estimate Costs
Project Management Body of Knowledge, Determine Budget
(PMBOK Guide) - Sixth Edition, Project
Management Institute, Inc., 2017, Table
1-4, Page 25“.
Process Groups & Process Groups Initiating Planning Executing Monitoring & Closing
& Knowledge Controlling
Knowledge Areas Areas
Quality Management Plan Quality Manage Quality Control Quality
Management
Resource Management Plan Resource Acquire Resources Control Resources
Management Develop Team
Estimate Activity Manage Team
Resources
Communications Plan Communications Manage Communications Monitor Communications
Management Management
Risk Management Plan Risk Management Implement Risk Monitor Risks

Identify Risks Responses
Perform Qualitative Risk
Analysis
Perform Quantitative
Risk Analysis
Plan Risk Responses
Procurement Plan Procurement Conduct Procurements Control Procurements
Management Management
"Management Institute, A Guide to the
Project Management Body of Knowledge, Stakeholder Identify Stakeholders Plan Stakeholder Manage Stakeholder Monitor Stakeholder
(PMBOK Guide) - Sixth Edition, Project Engagement Engagement Engagement
Management Institute, Inc., 2017, Table
Management
1-4, Page 25“.
No Process Input Output

Inputs/outputs of 49 1 Develop
Project Charter
1.
2.
Business Documents
Agreements
1. Project Charter
2. Assumptions Log
Project Management 3. Enterprise Environmental Factors
4. Organizational Process Assets
Processes 2 Identify 1. Project Charter 1. Stakeholder Register
Stakeholders 2. Business Documents 2. Change Requests
3. Project Management Plan 3. Project Management Plan Updates
4. Project Documents 4. Project Documents Updates
5. Agreements
6. Enterprise Environmental Factors
3 Develop Project 1. Project Charter 1. Project Management Plan
Management Plan 2. Outputs from other Planning Processes
4 Plan Scope Management 1. Project Charter 1. Scope Management Plan
2. Project Management Plan 2. Requirements Management Plan
5 Collect Requirements 1. Project Charter 1. Requirements Documentation
2. Project Management Plan 2. Requirements Traceability Matrix
3. Project Documents
4. Business Documents
5. Agreements
6 Define Scope 1. Project Charter 1. Project Scope Statement
Inputs/outputs of 49 2. Project Management Plan 2. Project Documents Updates
Project Management 3.
4.
Project Documents
Processes (Continued) 7 Create WBS
5.
1.
Project Management Plan 1. Scope Baseline
3. 4. Enterprise Environmental Factors
4. 5. Organizational Process Assets
8 Plan Schedule Management 1. Project Charter 1. Schedule Management Plan
2. Project Management Plan
9 Define Activities 1. Project Management Plan 1. Activity List
2. Enterprise Environmental Factors 2. Activity Attributes
3. Organizational Process Assets 3. Milestone List
4. Change Requests
5. Project Management Plan Updates
10 Sequence Activities 1. Project Management Plan 1. Project Schedule Network Diagram
Inputs/outputs of No Process Input Output

11 Estimate Activity 1. Project Management Plan 1. Duration Estimates
the 49 Project Durations 2. Project Documents 2. Basis of Estimates
Management Processes 3. Enterprise Environmental Factors 3. Project Documents Updates
12 Develop Schedule 1. Project Management Plan 1. Schedule Baseline

2. Project Documents 2. Project Schedule
3. Agreements 3. Schedule Data
4. Enterprise Environmental Factors 4. Project Calendars
5. Organizational Process Assets 5. Project Management Plan Updates
6. Project Documents Updates
13 Plan Cost Management 1. Project Charter 1. Cost Management Plan
14 Estimate Costs 1. Project Management Plan 1. Cost Estimates
2. Project Documents 2. Basis of Estimates
3. Enterprise Environmental Factors 3. Project Documents Updates

Inputs/outputs of the 49 15 Determine Budget 1. Project Management Plan 1. Cost Baseline
2. Project Documents 2. Project Funding Requirements
Project Management 3. Business Documents 3. Project Documents Updates
4. Agreements
Processes 5. Enterprise Environmental Factors
16 Plan Quality Management 1. Project Charter 1. Quality Management Plan

2. Project Management Plan 2. Quality Metrics
3. Project Documents 3. Project Management Plan Updates
17 Plan Resource 1. Project Charter 1. Resource Management Plan

Management 2. Project Management Plan 2. Team Charter
18 Estimate Activity Resources 1. Project Management Plan 1. Resource Requirements

2. Project Documents 2. Basis of Estimates
3. Enterprise Environmental Factors 3. Resource Breakdown Structure
4. Organizational Process Assets 4. Project Documents Updates
Inputs/outputs of the 49
Project Management No Process Input Output
Processes (Continued) 19 Plan Communications
Management
1.
2.
Project Charter
Project Management Plan
1. Communication Management Plan
20 Plan Risk Management 1. Project Charter 1. Risk Management Plan
21 Identify Risks 1. Project Management Plan 1. Risk Register
2. Project Documents 2. Risk Report
3. Agreements 3. Project Documents Udates
4. Procurement Documentation
22 Perform Qualitative 1. Project Management Plan 1. Project Documents Updates
Risk Analysis 2. Project Documents
23 Perform Quantitative 1. Project Management Plan 1. Project Documents Updates
Inputs/outputs of the 49 Risk Analysis 2. Project Documents
Project Management 4. Organizational Process Assets
Processes (Continued) 24 Plan Risk Responses 1.

2.
Project Documents
1. Change Requests
25 Plan Procurement 1. Project Charter 1. Procurement Management Plan
Management 2. Business Documents 2. Procurement Strategy
3. Project Management Plan 3. Bid Documents
4. Project Documents 4. Procurement Statement of Work
5. Enterprise Environmental Factors 5. Source Selection Criteria
6. Organizational Process Assets 6. Make-or-Buy Decisions
7. Independent Cost Estimates
8. Change Requests
10. Organizational Process Assets Updates
26 Plan Stakeholder 1. Project Charter 1. Stakeholder Engagement Plan
Engagement 2. Project Management Plan
4. Agreements
N Process Input Output
Inputs/outputs of the 49 o
27 Direct and Manage 1. Project Management Plan 1. Deliverables
Project Management Project Work 2. Project Documents 2. Work Performance Data
3. Approved Change Requests 3. Issue Log
Processes (Continued) 4. Enterprise Environmental Factors 4. Change Requests
28 Manage Project Knowledge 1. Project Management Plan 1. Lessons Learned Register
3. Deliverables 3. Organizational Process Assets Updates
29 Manage Quality 1. Project Management Plan 1. Quality Reports
2. Project Documents 2. Test and Evaluation Documents
3. Organizational Process Assets 3. Change Requests
30 Acquire Resources 1. Project Management Plan Physical Resource Assignments
2. Project Documents Project Team Assignments
3. Enterprise Environmental Factors Resource Calendars
4. Organizational Process Assets Change Requests
Project Management Plan Updates
Project Documents Updates
Enterprise Environmental Factors Updates
Organizational Process Assets Updates
31 Develop Team 1. Project Management Plan 1. Team Performance Assessments
Inputs/outputs of the 49 2. Project Documents 2. Change Requests
Project Management 3.
4.
Processes 5. Enterprise Environmental Factors Updates
32 Manage Team 1. Project Management Plan 1. Change Requests
3. Work Performance Reports 3. Project Documents Updates
4. Team Performance Assessments 4. Enterprise Environmental Factors Updates
33 Manage Communications 1. Project Management Plan 1. Project Communications
4. Enterprise Environmental Factors 4. Organizational Process Assets Updates
34 Implement Risk Responses 1. Project Management Plan 1. Change Requests
35 Conduct Procurements 1. Procurement Management Plan 1. Selected Sellers

2. Project Documents 2. Agreements
3. Procurement Documents 3. Change Requests
4. Seller Proposals 4. Project Management Plan Updates
6. Organizational Process Assets 6. Organizational Process Assets Updates

Inputs/outputs of the 49 36 Manage Stakeholder 1. Procurement Management Plan 1. Change Requests
Project Management Engagement 2. Project Documents 2. Project Management Plan Updates
Processes 4. Organizational Process Assets
37 Monitor and Control 1. Project Management Plan 1. Work Performance Reports

Project Work 2. Project Documents 2. Change Requests
3. Work Performance Information 3. 3. Project Management Plan Updates
4. Agreements 4. 4. Project Documents Updates
38 Perform Integrated 1. Project Management Plan 1. Approved Change Requests
Change Control 2. Project Documents 2. Project Management Plan Updates
4. Change Requests
39 Validate Scope 1. Project Management Plan 1. Accepted Deliverables
2. Project Documents 2. Work Performance Information
3. Verified Deliverables 3. Change Requests
4. Work Performance Data 4. Project Documents Updates
40 Control Scope 1. Project Management Plan 1. Work Performance Information
Project Management 3. Work Performance Data 3. Project Management Plan Updates
Processes
41 Control Schedule 1. Project Management Plan 1. Work Performance Information
2. Project Documents 2. Schedule Forecasts
3. Work Performance Data 3. Change Requests
42 Control Costs 1. Project Management Plan 1. Work Performance Information
2. Project Documents 2. Cost Forecasts
3. Project Funding Requirements 3. Change Requests
4. Work Performance Information 4. Project Management Plan Updates
43 Control Quality 1. Project Management Plan 1. Quality Control Measurements
2. Project Documents 2. Verified Deliverables
3. Approved Change Requests 3. Work Performance Information
4. Deliverables 4. Change Requests
5. Work Performance Data 5. Project Management Plan Updates
44 Control Resources 1. Project Management Plan 1. Work Performance Information
4. Agreements 4. Project Documents Updates
45 Monitor 1. Project Management Plan 1. Work Performance Information
Communications 2. Project Documents 2. Change Requests
46 Monitor Risks 1. Project Management Plan 1. Work Performance Information
2. Project Documents 2. Change Requests
47 Control Procurements 1. Project Management Plan 1. Closed Procurements
2. Project Documents 2. Work Performance Information
3. Agreements 3. Procurement Documentation Updates
4. Procurement Documentation 4. Change Requests
5. Approved Change Requests 5. Project Management Plan Updates
6. Work Performance Data 6. Project Documents Updates
7. Enterprise Environmental Factors 7. Organizational Process Assets Updates
48 Monitor Stakeholder 1. Project Management Plan 1. Work Performance Information
Inputs/outputs of the 49 Engagement 2. Project Documents 2. Change Requests
49 Close Project or Phase 1. Project Charger 1. Project Documents Updates
2. Project Management Plan 2. Final Product, Service or Result
3. Accepted Deliverables Transition
4. Business Documents 3. Final Report
5. Agreements 4. Organizational Process Assets Updates
6. Procurement Documentation
Project Integration Management Processes

Develop Project Charter - Developing a document that formally authorizes the existence of a project and
provides the project manager with the authority to apply organizational resources to the project.
Develop Project Management Plan - Defining, preparing, and coordinating all subsidiary plans and
integrating them into a comprehensive project management plan.
Direct and Manage Project Work - Leading and performing the work defined in the project management
plan and implementing approved changes to achieve the project’s objectives.
Manage Project Knowledge – Using existing knowledge and creating new knowledge to achieve the
project’s objectives and contribute to organizational learning.
Monitor and Control Project Work - Tracking, reviewing, and reporting project progress against the
performance objectives defined in the project management plan.
Project Integration Management Processes (cont.)

Perform Integrated Change Control - Reviewing all change requests, approving changes and managing
changes to deliverables, organizational process assets, project documents and the project management plan
and communicating their disposition.
Close Project or Phase - Finalizing all activities across all of the project management process groups to
formally complete the project or phase.
Project Scope Management Processes

Plan Scope Management - Creating a scope management plan that documents how the project scope will
be defined, validated, and controlled.
Collect Requirements - Determining, documenting, and managing stakeholder needs and requirements to
meet project objectives.
Project Scope Management Processes (cont.)

Define Scope - Developing a detailed description of the project and product.
Create WBS - Subdividing project deliverables and project work into smaller, more manageable
components
Validate Scope - Formalizing acceptance of the completed project deliverables.
Control Scope - Monitoring the status of the project and product scope and managing changes to the
scope baseline.
Project Schedule Management Processes
Plan Schedule Management - Establishing the policies, procedures, and documentation for planning,
developing, managing, executing, and controlling the project schedule.
Define Activities - Identifying and documenting the specific actions to be performed to produce the
project deliverables.
Sequence Activities - Identifying and documenting the relationships among the project activities.
Estimate Activity Durations - Estimating the number of work periods needed to complete individual
activities with estimated resources.
Develop Schedule - Analyzing activity sequences, durations, resource requirements, and schedule
constraints to create the schedule model.
Control Schedule - Monitoring the status of the project to update project schedule and manage changes
to the schedule baseline to achieve the plan.
Project Cost Management Processes
Plan Cost Management – Defining how the project costs will be estimated, budgeted, managed,
monitored and controlled.
Estimate Costs - Developing an approximation of the monetary resources needed to complete project
work.
Determine Budget - Aggregating the estimated costs of individual activities or work packages to
establish an authorized cost baseline.
Control Costs - Monitoring the status of the project to update the project costs and managing changes
to the cost baseline.
Project Quality Management Processes
Plan Quality Management - Identifying quality requirements and/or standards for the project and its
deliverables and documenting how the project will demonstrate compliance with quality requirements
and/or standards.
Perform Quality Assurance – Translating the quality management plan into executable quality activities
that incorporate the organization’s quality policies into the project.
Control Quality - Monitoring and recording results of executing the quality activities to assess
performance and ensure the project outputs are complete, correct, and meet customer expectations.
Project Resource Management Processes

Plan Resource Management – Defining how to estimate, acquire, manage, and utilize physical and team
resources.
Estimate Activity Resources - Estimating team resources and the type and quantities of materials, equipment,
or supplies required to perform project work.
Acquire Resources – Obtaining team members, facilities, equipment, materials, supplies, and other resources
necessary to complete project work.
Develop Team - Improving competencies, team member interaction, and overall team environment to
enhance project performance.
Manage Team - Tracking team member performance, providing feedback, resolving issues, and managing
team changes to optimize project performance.
Control Resources – Ensuring that the physical resources assigned and allocated to the project are available as
planned, as well as monitoring the planned versus actual use of resources, and performing corrective action as
necessary.
Project Communications Management Processes
Plan Communications Management - Developing an appropriate approach and plan for project
communications based on stakeholder’s information needs and requirements, and available
organizational assets.
Manage Communications - Creating, collecting, distributing, storing, retrieving and the ultimate
disposition of project information in accordance with the communications management plan.
Monitor Communications – Ensuring the information needs of the project and its stakeholders are
met.
Project Risk Management Processes

Plan Risk Management - Defining how to conduct risk management activities for a project.
Identify Risks – Identifying individual project risks as well as sources of overall project risk and documenting their
characteristics.
Perform Qualitative Risk Analysis - Prioritizing risks for further analysis or action by assessing and combining their probability
of occurrence and impact.
Perform Quantitative Risk Analysis - Numerically analyzing the effect of identified risks on overall project objectives.
Plan Risk Responses - Developing options, selecting strategies, and agreeing on actions to enhance opportunities and reduce
threats to project objectives.
Implement Risk Responses – Implementing agreed-upon risk response plans.
Monitor Risks - Implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks,
and evaluating risk process effectiveness throughout the project.
Project Procurement Management Processes
Plan Procurement Management – Documenting project procurement decisions, specifying the

approach, and identifying potential sellers.
Conduct Procurements – Obtaining seller responses, selecting a seller, and awarding a
contract.
Control Procurements – Managing procurement relationships, monitoring contract
performance, making changes and corrections as appropriate, and closing out contracts.
Project Stakeholders Management Processes
Identify Stakeholders - Identifying the people, groups, or organizations that could impact or be impacted by
a decision, activity, or outcome of the project; and analyzing and documenting relevant information
regarding their interests, involvement, interdependencies, influence, and potential impact on project
success.
Plan Stakeholder Engagement - Developing appropriate management strategies to effectively engage

stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential
impact on project success.
Manage Stakeholder Engagement - Communicating and working with stakeholders to meet their
needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project
activities throughout the project life cycle.
Project Stakeholders Management Processes (cont.)
Monitor Stakeholder Engagement - Monitoring overall project stakeholder relationships and tailoring
strategies and plans for engaging stakeholders.
Organizational Influences on Project Management

The organizational culture, style and structure influence how projects are performed. The term culture
generally means “how we do things around here.”
Process orientation - If the organization follows a good, scalable Project Management process you are
likely to deliver consistently successful projects.
Governance - The management function that concerns making sure people do what they’re supposed
to do in accordance with the standards and guidelines.
Training - appropriate training to project managers should result in a better project outcome.
Roles and responsibilities - roles and responsibilities of every individual and work need to be defined.
The sponsor, for instance, needs to perform a quality assurance role and be the project champion in
his or her organization.
Organizational Influences on Project Management

Organizational structure - the structure of the performing organization often constrains the availability
of resources in a spectrum from functional to projectized, with a variety of matrix structures in
between.
Organic or simple
Functional
Multi-divisional
Matrix – Strong, weak, and balanced
Project-oriented
Virtual
Hybrid
Questions Module 3
Question – 1
Which Process Group tracks the progress and performance of the project?
A. Planning Process Group
B. Executing Process Group
C. Monitoring and Controlling Process Group
D. Closing Process Group
Question – 2
Stakeholder Management is one of the most important works performed by a
Project Manager. For identification of stakeholders, which of the following Process Groups
and Knowledge Areas does “Identify Stakeholders” belong?
A. Initiating Process Group and Resource Management Knowledge Area

B. Planning Process Group and Resource Management Knowledge Area
C. Initiating Process Group and Stakeholder Management Knowledge Area
D. Planning Process Group and Integration Management Knowledge Area
Question – 3
Which Knowledge Area has a process area defined in all of the Process Groups?
A. Integration Management
B. Schedule Management
C. Cost Management
D. Scope Management
Question – 4
Which one of the following is not a valid process area defined in the PMBOK® Guide - Sixth Edition?
A. Monitor and Control Quality
B. Monitor and Control Procurements
C. Monitor and Control Project Work
D. Both A and B
Question – 5
The Risk Register will be the Output of which Process as defined in the PMBOK® Guide - Sixth Edition?
A. Plan Risk Management

B. Identify Risks
C. Control Risks
D. Develop Project Management Plan
End of Module 3

Course Book
PMP, PMBOK are registered marks of the Project Management Institute, Inc.
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 4

Learning Objectives - Project Integration Management
What is Project Integration Management?

Role of project team
Role of project sponsor
Project selection methods
Project charter and role of project manager in charter development
Lessons learned for continuous improvement
Core processes of the Project Integration Management Knowledge Area:
Develop Project Charter Monitor and Control Project Work
Develop Project Management Plan Perform Integrated Change Control
Direct and Manage Project Work Close Project or Phase
What is Project Integration Management?
The process of ensuring that the various elements of a project are properly consolidated, coordinated
and integrated to ensure the successful completion of the project.
Project Integration Management includes:

▪ Initiating the project (Project Charter)
▪ Project Planning (Project Management Plan)
▪ Directing and Managing Project Work
▪ Managing Project Knowledge
▪ Monitoring and Controlling Project Work
▪ Performing Integrated Change Control, and
▪ Closing the Project or a Phase of a project
The Role of the Project Team
The key role of the project team is to concentrate on achieving the project’s objectives.
The team consists of:
The Project Manager

The Project Management Team
The individuals and groups who perform the work of the project to produce the project
outcome
Typical responsibilities include:

Risk Management
Project Communication
Change control
Day-to-day management of the project
Delivering the project’s products
Monitoring the project’s critical path
The Role of the Project Sponsor
The sponsor is the project champion. This role includes maintaining support for the project by acting
as project spokesperson to the higher-level management and spelling out the benefits of the project.
Key responsibilities of the Project Sponsor are:
Project advocate and visionary

Final decision point for escalated issues
Supports and directs the project manager and team
Communicates project status to executive management
Ensures the realization of the project’s benefits
Controls the project budget
Authorizes project baselines, etc.
Project Selection Methods
Project selection uses various techniques to select the most appropriate project(s) amongst the
available alternatives.
The techniques can be grouped into two major categories:
Benefit Measurement (comparative approach) Constrained Optimization (mathematical approach)
Scoring Models Linear and non-linear programming

Cost-benefit analysis Integer programming & dynamic programming
Economic Models Multi-objective programming
Scoring Models
Evaluates projects by using a set of criteria with a weight or score assigned to each criterion in
accordance with managerial policy.
Different weights can be assigned to different criteria to represent the varied degree of importance
given to various criteria.
All projects are evaluated against this set of criteria and the project with the maximum score is
selected.
Both objective and subjective criteria can be included, such as financial data, organizational expertise,
market value, innovation and those which fit with the corporate culture.
Cost Benefit Analysis
A process of determining the pros and cons of any process, product or activity.
Based on comparing the projected cost and income (benefit).
Can be used as the basis for comparing alternative competing projects or
implementation methods.
This method favors projects that create quantifiable benefits as the long-term benefits of projects
that might not be tangible at the current time, such as innovation and strategic values.
Cost Benefit Analysis
Benefit Cost Ratio (BCR) can be calculated as Benefit ÷ Cost

For the benefit to exceed cost, the BCR must be greater than 1.
The greater the BCR is, the more attractive the project and the project with the highest BCR will be
selected.
Example: If the projected costs and benefits of two projects are:
Project A with a cost of $10,000, generating an expected income of $60,000. The BCR is equal
to $60,000 ÷ $10,000 = 6.
Project B with a cost of $20,000, generating an estimated income of $100,000. The BCR is
equal to $100,000 ÷ $20,000 = 5.
Using BCR, project A will be chosen over project B
Economic Models
Economic models are used to estimate the economic efficiency of a project. It involves a set of
calculations to provide overall financial data about the project and projects that offer the best
monetary benefits to the company and therefore would be prioritized.
The common terms involved in economic models are explained in the following list.
Cash flow - Refers to both the money coming in and the money going out of an organization.
Two common methods are NPV (Net Present Value) and IRR (Internal Rate of Return).
Present Value (PV) and Net Present Value (NPV)
To understand these two concepts, understand that one dollar today can buy you more than what
one dollar can buy next year (because of inflation).
Net Present Value is the sum of all the cash flows of the project (including both costs and
benefits), each adjusted to today’s value ( = Present Value) according to estimated future inflation.
Alternative Projects can be compared using the NPV, even if they are not expected to be
completed during the same time frame and benefits are reaped over different periods of time.
Internal Return Rate (IRR)
Another way of estimating the potential benefit of a project
The cost of the project is viewed as the capital investment and the profit is translated into the
interest rate over the life of that investment.
IRR is the rate of interest used in the NPV calculation which makes the NPV = 0.
Constrained Optimization Methods
Constrained optimization methods are concerned with predicting the success of the project. These
methods are based on complex mathematical models that use formulae and algorithms to predict the
success.
These models use the following kinds of algorithms:

Linear
Nonlinear
Dynamic
Integer
Multiple objective programming
Expert Judgment
Expert judgment is one of the techniques used in project management to accomplish various tasks,
including project selection. It refers to making a decision by relying on expert advice from one or
more of the following sources:
 Senior management
 An appropriate unit within the organization
 The project stakeholders, including customers and sponsors
 Consultants
 Professional and technical associations
 Industry groups
 Subject matter experts from within or outside of the performing organization
 Project management office (PMO)
Processes in the Project Integration Management Knowledge Are:

Develop Project Management Plan
Monitor and Control Project Work
Close Project or Phase
Project Integration
Develop Project Charter Initiating
Management
The project charter formally authorizes the project and defines the responsibility and authority
of the project manager.
Inputs to develop the Project Charter:

Business Documents – Business case and Benefits management plan.
Agreements – defines initial intention of the project and can be in the form of a contract,
Memorandum of Understanding (MoU), Service Level Agreement (SLA), etc. A contract is
for an external customer.
Enterprise Environmental Factors - culture and structure, infrastructure, existing human
resources, marketplace & its conditions etc.
Organizational Process Assets - the organization's policies, guidelines, procedures, plans,
approaches, or standards for conducting work, including project work.
Develop Project Charter (continued)
Business Case - documents information required from a business standpoint to determine

whether or not the project is worth the required investment.
It is usually created by a business analyst using various stakeholder inputs.
Business case will contain business need, business benefits, justification, participating
stakeholders, project overview (containing description, goals and objectives,
assumptions, constraints, and major project milestones), strategic alignment, cost-
benefit analysis, alternative analysis and also recommendation.
The project sponsor agrees to the scope and limitations of business case.
The project manager is responsible for ensuring that the project meets the goals of
the organization and broad stakeholder requirements as defined in the business case.
In a multiphase project, the business case is periodically reviewed to ensure that the
project is on track to deliver the intended business benefits.
Business Case may include the following :
Business needs
Analysis of the situation
Recommendation
Evaluation
Benefits Management Plan – is a document that describes how and when the benefits of
the project will be delivered, and describes the mechanisms that should be in place to
measure those benefits.
The plan may include :
Target benefits
Strategic alignment
Timeframe for realizing benefits
Benefits owner
Metrics
Assumptions
Risks
The process of developing a document that formally authorizes the existence of a project and
provides the project manager with the authority to apply organizational resources to project
activities.
Inputs Tools & Techniques Outputs
Business Documents Expert Judgement Project Charter
Business Case
Data gathering
Agreements Brainstorming Assumption Log
Focus Groups
Interviews
Interpersonal and team skills

Conflict Management
Facilitation
Meeting Management
Organizational Process Assets Meetings
Elements of Project Charter
Project charter documents the business needs, and the new product, service or result
that will be created by the project.
The various elements of a project charter are:
Project purpose and justification Key stakeholder list
Measurable project objectives Project approval requirements (what
and related success criteria constitutes project, who decides project is
High-level requirements successful, and who signs off on the project)
High-level project descriptions and Project exit criteria
boundaries Assigned project manager, responsibility,
Overall project risk and authority level
Summary milestone schedule Name and authority of the sponsor or other
Preapproved financial resources person(s) authorizing the project charter
Role of Project Manager in Project Charter Development
Project charter is issued by the project sponsor or project initiator or customer.

The project manager participates in the development of the project charter, but not solely
responsible for creating it.
Project manager is more of a contributor in the development of the charter.
Project manager handles team members and stakeholders about its content for
common understanding on key deliverables, milestones and their roles and
responsibilities
The sponsor or customer approves the project charter.
The project manager communicates on the approval of the project charter to
stakeholders.
Project charter provides the authority to the project manager to assign organization
resources to project activities.
Project Integration
Develop Project Management Plan Planning
Management
The Project Management Plan is the key document that contains the overall planning, monitoring,
and implementing activities to be done on a project.
Inputs to develop the Project Management Plan
Project Charter, including business needs and project objectives

Outputs from planning processes regarding cost, scope, schedule, quality, risk, procurement
and resources.
Enterprise Environmental Factors i.e. company culture
Organizational Process Assets i.e. procurement procedures
Develop Project Management Plan
The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a
comprehensive project management plan.
Inputs Tool & Techniques Outputs
Project Charter Expert Judgment Project Management Plan
Outputs from other Processes Data Gathering

Brainstorming
Checklist
Focus Groups
Interviews
Interpersonal and Team Skills
Enterprise Environmental Factors Conflict Management
Facilitation
Meeting Management
Meetings
The Project Management Plan is the document that describes how the project will be executed,
monitored and controlled, and closed. It integrates and consolidates all of the subsidiary
management plans and baselines, and other information necessary to manage the project
Subsidiary Plans Baselines Additional Components
• Scope Management Plan • Scope Baseline • Change Management Plan

• Requirements Management Plan • Schedule Baseline • Configuration Management Plan
• Schedule Management Plan • Cost Baseline • Performance Measurement
• Cost Management Plan Baseline
• Quality Management Plan • Project Lifecycle
• Resource Management Plan • Development Approach
• Communications Management Plan • Management Reviews
• Risk Management Plan
• Procurement Management Plan
• Stakeholder Management Plan
Project Integration
Direct and Manage Project Work Executing
Management
Direct and Manage Project Execution is the process that comprises all the work needed to deliver the
project’s deliverables as defined in the Scope Baseline consisting of the Scope Statement, WBS and
WBS Dictionary.
Project Deliverables: The primary Output which is any unique and verifiable product, result or
capability to perform a service
Change Requests are one of the Outputs of this process. There are four types of changes that can be
requested:
Corrective action: This is the documented direction for executing the project work to bring
expected future performance in line with the Project Management Plan.
Preventive action: Documented direction to perform an activity that can reduce the
probability of negative Outputs.
Defect repair: Formally documented identification of a defect in the project with a

recommendation for repairing or replacing the component.
Updates: Changes to formally controlled documentation
The process of leading and performing the work defined in the project management plan and
implementing approved changes to achieve the project’s objectives.
Any component Expert Judgment Deliverables
Project Documents Work Performance Data
Change log
Issue Log
Lessons learned register
Milestone list Project Management Information System Change Requests
Project communications
Project schedule
Any component
Requirements traceability matrix
Risk register Project Document Updates
Risk report Activity list
Assumption log
Approved Change Requests Meetings
Lessons learned register
Requirements documentation
Enterprise Environmental Factors Risk register
Stakeholder register
Organizational Process Assets Organizational Process Assets Updates
Project Integration
Manage Project Knowledge Executing
Management
Manage Project Knowledge is the process of using existing knowledge and creating new knowledge to
achieve the project’s objectives and contribute to organizational learning.
Key benefits :
• Prior organizational knowledge is leveraged to produce or improve project outcomes
• Knowledge created is available for supporting organizational operations and future projects
and phases
Lessons Learned Register: Is the key output from this process. It is used to record challenges,
problems, realized risks and opportunities or other aspects as appropriate.
Lesson Learned for Continuous Improvement

In the earlier paradigm, focus on lesson learned:
During the initiation of the project when historical information and lessons learned
from previous projects can be applied to the current project
Analysis of current project during closing – both contract and administrative closure
In the new paradigm, lesson learned is emphasized during the entire project life cycle.
Advantages of utilizing lessons learned for continuous improvement:
Gets information from all the team members throughout the life of the project, rather
than at the end, where few members might be available
Enables effective knowledge transfer and knowledge management
Lessons learned plays a crucial role, especially projects with adaptive life cycles
When planning for project communications and stakeholder management, lessons-
learned information can be used whenever possible, e.g., a key stakeholder wants
status reports to be delivered personally instead of emailing it
Minimizes the possibility of team members repeating the same mistakes
From an organizational perspective, knowledge management is about making sure the skills,
experiences, and expertise of the project team and other stakeholders are used before, during, and
after the project.
Expert Judgment Lessons Learned Register
All Components
Project Documents Project Management Plan updates
Knowledge Management
Lessons learned register Any Components
Project team assignments
Resource breakdown structure Information Management Organizational Process Assets Updates
Stakeholder register
Deliverables Interpersonal and Team Skills

Active Listening
Facilitation
Leadership
Networking
Organizational Process Assets Political Awareness
Monitoring & Project Integration

Monitor and Control Project Work Controlling Management
This process involves collecting, tracking, reviewing and reporting the performance objectives defined
in the project management plan.
Inputs to monitor and control project work are: The results of the Monitoring & Control process are:
Project Management Plan Change Requests:

Work Performance Information recommended changes to the project as
Schedule and Cost Forecasts well as
Validated Changes recommended corrective and preventive
Enterprise Environmental Factors actions.
Organization Process Assets Work Performance Reports
Project Management Plan updates
Project Document updates

Monitor and Control
Project Work Project Management Plan Expert Judgment Work Performance Reports
Any Component
The process of tracking, Project Documents Data Analysis

Assumption Log
reviewing and reporting the Issue Log
Alternatives Analysis
Cost Benefits Analysis
Cost Forecasts
progress to meet the Schedule Forecasts
Earned Value Analysis
Root Cause Analysis
Change Requests
Lessons Learned Register
performance objectives Risk Register
Trend Analysis
Variance Analysis
Risk Report
defined in the Project Quality Report
management plan. Decision Making Project Management Plan Updates

Work Performance Information Any Components
Voting
Agreements Project Document Updates

Meetings
Monitoring & Project Integration

Perform Integrated Change Control Controlling Management
The objective of this process is to ensure that only approved changes are incorporated into a revised
baseline and implemented in the project.
It is achieved through reviewing all change requests, approving and managing changes to the:
Deliverables
Project Documents
The Project Management Plan
During integrated change control the following actions are performed:

Reviewing of all change requests
Approving changes
Managing changes
Inputs to perform integrated change control are:
Project Documents
Work Performance Reports
Change Requests
The process of reviewing all change requests, approving changes and managing changes to
deliverables, organizational process assets, project documents and the project management plan; and
communicating the decisions.
Change Management Plan Expert Judgment Approved Change Requests
Configuration Management Plan
Scope Baseline
Schedule Baseline Change Control Tools Project Management Plan Updates
Cost Baseline Any Component
Project Documents
Basis of Estimates
Data Analysis Project Documents Updates
Requirements Traceability Matrix Alternatives Analysis
Change Log
Risk Report Cost-benefit Analysis
Work Performance Reports

Change Requests Decision Making
Voting
Autocratic Decision Making
Enterprise Environmental Factors Multicriteria Decision Analysis
Change Management Plan
Change management plan informs the definitions of various changes related to project
objectives, and how changes will be implemented, monitored and controlled.
Change management plan is created in “Develop Project Management” process and is a
subsidiary plan of project management plan.
Roles, responsibilities, and authority of the change control board (CCB) are clearly defined
and agreed upon by stakeholders and documented in the change management plan.
The CCB is responsible for reviewing, evaluating, approving, delaying or rejecting changes
to the project. The CCB conducts its activities under “Perform Integrated Change Control”
process.
The change control process – submittal, tracking, review and disposition – is defined in
the change management plan
Changes should be managed in accordance with change management plan to ensure that
project goals remain aligned with business needs.
Project Integration
Close Project or Phase Closing
Management
Project closure involves:
Handing over the deliverables to the customer

Passing the documentation to the business
Closing / Cancelling supplier contracts
Releasing staff and equipment
Finalizing lessons learned and
Informing stakeholders of the closure of the project.
Close Project or Phase
The process of finalizing all the activities for the project, phase, or contract.
Project Charter Expert Judgement Project Documents Updates

Project Management Plan Final Product, Service, or Result Transition

All Components
Project Documents Data Analysis

Assumption log, Basis of estimates Document Analysis
Change log, Issue log, Lessons learned register Final Report
Regression Analysis
Milestone list, Project communications
Quality control measurements, Quality reports Trend Analysis
Requirements documentation, Risk register, Risk report Variance Analysis
Accepted Deliverables Meetings Organizational Process Assets Updates

Business Documents
Business case
Benefits management plan
Agreements
Procurement Documentation
Tailoring:
Every project is unique and hence the project management team should look for the need to tailor
the way Project Integration Management processes are applied. The various aspects that may be
considered are :
Project life cycle

Development life cycle
Management approaches
Knowledge management
Change
Governance
Lessons learned
Benefits
Questions Module 4
Question – 1
Which one of the following best describes the main purpose of the Project Charter?
A. It identifies the sponsor and describes his or her role in the project
B. It identifies the list of important stakeholders in the project
C. It describes the initial scope of the project work
D. It authorizes the project manager to work on the project
Question – 2
Which of the following does not define a Project Life Cycle?
A. Concept, Planning, Execution, Finishing
B. Initiation, Planning, Implementation, Termination
C. Concept, Development, Implementation, Close-out
D. Initiation, Planning, Execution, Operation, Termination
Question – 3
Which one of the following is not a mathematical approach in project selection?
A. Using linear algorithms
B. Using dynamic algorithms
C. Using economic models
D. Using multiple objective programming
Question – 4
The person responsible for approving the changes to the baseline in the Project Management Plan is:
A. Project Sponsor
B. Project Manager
C. Program Manager
D. Portfolio Manager
Question – 5
Change Requests can act as inputs and outputs to which of the following process pairs?
A. Develop Project Management Plan & Monitor and Control Project Work
B. Perform Integrated Change Control & Direct and Manage Project Work .
C. Monitor and Control Project Work & Close Project or Phase
D. Develop Project Management Plan & Develop Project Charter
Question – 6
A Project Management Plan is a combination of the following documents with the exception of:
A. Schedule Management Plan
B. Cost Management Plan
C. Risk Management Plan
D. Issue Log
Question – 7
Who issues the project charter?
A. Project Manager
B. Program Sponsor
C. Project Sponsor
D. Project Governance Board
Question – 8
Lesson learned for a project happens:
A. At the beginning of the project
B. At the end of the project or a phase
C. During project transition planning and operationalization
D. Throughout the life cycle of the project
End of Module 4

Course Book

Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 5

Learning Objectives - Project Scope Management
What is Project Scope Management?

Product Scope vs. Project Scope
Plan Scope Management

Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
Project Scope Management, according to the PMBOK® Guide - Sixth Edition, is “the processes
required to ensure that the project includes all the work required, and only the work required, to
complete the project successfully.”
The Project Scope Management Knowledge Area consists of six processes:

Plan Scope Management - Creating a Scope Management Plan
Collect Requirements - obtaining stakeholder’s needs
Define Scope - in the Project Scope Statement
Create WBS - decomposing scope into work packages
Validate Scope - user acceptance and sign-off
Control Scope - Integrated Change Control of the Scope Baseline
Scope Management may be characterized as the function of developing and managing the project's
scope:
From given goals and objectives

Through development and explicit definition
Through execution or production
To satisfactory product delivery
Product Scope vs Project Scope
Product Scope - is the set of functions and features that characterize a product, service, or result to
be delivered by the project.
Project Scope - is the work required to deliver the product scope.
The major goal of Scope Management is to ensure that all the required work and only the required
work is included and performed in the project. This goal is accomplished by the following processes:
Plan Scope Collect

Management Define Scope Create WBS Validate Scope Control Scope
Requirements
Project Scope
Plan Scope Management Planning
Management
The process of creating a Scope Management Plan that documents how the project and product
scope is defined, validated and controlled – provides guidance and direction on how scope will be
managed throughout the project life cycle.
Project Charter Expert Judgement Scope Management Plan
Data Analysis
Project Management Plan Requirements Management Plan
Alternative Analysis
Enterprise Environmental Factors Meetings
Project Scope
Collect Requirements Planning
Management
Collect Requirements is the process of determining, documenting, and managing stakeholder needs
to meet objectives.
Requirements include the quantified and documented needs and expectations of the sponsor,
customer, and other stakeholders and can be categorized into:
Project Requirements (business requirements, project management requirements, delivery
requirements, etc.)
Product Requirements (information on technical requirements, security requirements,
performance requirements etc.)

Collect Requirements Project Charter Expert Judgement Requirements Documentation
Data Gathering
Process of determining, Project Management Plan Brainstorming
Scope Management Plan Focus Groups Requirements Traceability Matrix
documenting, and managing Requirements Management Plan Interviews
Stakeholder Engagement Plan Questionnaires/Surveys
stakeholder’s needs and Benchmarking
requirements to meet project Project Documents

Assumption Log Data Analysis
objectives. Lessons Learned Register
Stakeholder Register
Document Analysis
Decision Making
Business Documents Voting
Business Case Autocratic Decision Making
Multi-criteria Decision Analysis
Data Representation
Agreements Affinity Diagram
Mind Mapping

Nominal Group Technique
Facilitation
Observation/Conversation
Organizational Process Assets Context Diagram
Prototypes
Project Scope
Define Scope Planning
Management
The Process of developing a detailed description of the project and product.

This process describes the project, service, or result boundaries and acceptance criteria.
Project Charter Expert Judgement Project Scope Statement

Project Management Plan Data Analysis Assumption Log
Requirements Documentation
Scope Management Plan Alternatives Analysis
Project Documents
Assumption Log Decision Making
Requirements Documentation Multi-criteria Decision Making
Risk Register

Facilitation

Product Analysis
Project Scope
Create WBS Planning
Management
The Work Breakdown Structure (WBS) as defined by the PMBOK® Guide - Sixth Edition is “a
hierarchical decomposition of the total scope of work to be carried by the project team to
accomplish the project objectives and create the required deliverables.“
The lowest level of the WBS is referred to as a work package.
For every work package a WBS Dictionary is compiled.
The Scope Baseline consists of the approved detailed Project Scope Statement, WBS and WBS
Dictionary.
WBS Dictionary
The WBS dictionary may typically include:

Code of account identifier
Description of work
Assumptions and constraints
Responsible organization
Schedule milestones
Resources required
Cost estimates
Quality requirements
Acceptance criteria, etc.
Create WBS
The process of sub-dividing project deliverables and project work into smaller, more manageable
components.
Project Management Plan Scope Baseline

Expert Judgement
Scope Management Plan
Project Documents Project Documents Updates

Project Scope Statement Decomposition Assumption Log
Requirements Documentation Requirements Documentation
WBS Example
Validate Scope Monitoring & Project Scope

Controlling Management
It is the process of formalizing acceptance of the completed project deliverables.
It includes reviewing deliverables to ensure that they are completed as expected and obtaining
formal acceptance of the deliverables by the customer.

Inspection Accepted Deliverables
Requirements Management Plan
Scope Baseline
Project Documents
Lessons Learned Register Decision Making
Quality Reports Work Performance Information
Voting
Verified Deliverables Change Requests

Work Performance Data
Monitoring & Project Scope

Control Scope Controlling Management
Scope Control includes: Inputs Tools & Techniques Outputs

• Monitoring the status of the Scope Management Plan
Requirements Management Plan Data Analysis
Project and Product Scope Change Management Plan Variance Analysis Work Performance Information
Trend Analysis
Configuration Management Plan
• Managing changes to the Scope Baseline
Project Documents
Scope Baseline. Lessons Learned Register
Change Requests
• Focusing on the Project Project Management Plan Updates
Management aspects for Work Performance Data
Scope Baseline
Schedule Baseline
Cost Baseline
delivering the product/service. Performance Measurement Baseline
Tailoring:
the way Project Scope Management processes are applied. The various aspects that may be
considered are :
Knowledge and requirements management

Validation and control
Development approach
Stability of requirements
Governance
Questions Module 5
Question – 1
Which one of the following best describes the Scope Baseline for a project?
A. WBS, WBS Dictionary and Project Management Plan
B. WBS Dictionary, WBS and Requirements Management Plan
C. WBS, WBS Dictionary and Scope Statement .
D. WBS, WBS Dictionary and Requirements Documentation
Question – 2
According to the PMBOK® Guide - Sixth Edition, the Project Scope Statement is an Output
of which project management process?
A. Define Scope C. Collect Scope
B. Plan Scope Management D. Validate Scope
Question – 3
Your project team is executing the work packages for your project when a serious
disagreement regarding the interpretation of the scope is brought to your notice by two
senior technical members. How should the dispute be resolved?
A. Project team should decide on the resolution
B. Dispute should be resolved in favour of the customer
C. Dispute should be resolved in favour of senior management
D. Project Manager should consult the project charter for guidance
Question – 4
The most important part of validating Project Scope is:
A. Gaining formal acceptance of the deliverables from the customer
B. Checking scope of the project against stakeholder expectations
C. Verifying that the project is performed on time & within budget
D. Verifying that the project met the quality specification
Question – 5
You recently joined as a project manager for a construction project. Construction for the project
has already been started, but you found that no WBS is available. Which will be your best course
of action?
A. Stop construction on the project until the WBS is created
B. Refuse to manage the project
C. Consult the senior management team & consult on the oversight on the WBS
D. Check the historical information on the project
Question – 6
The lowest level in a Work Breakdown Structure is known as:
A. Control Account C. Deliverable
B. Activity D. Work Package
End of Module 5

Course Book

Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 6
Project Schedule Management

Learning Objectives - Project Schedule Management

What is Project Schedule Management?
What is Project Schedule?
Gantt Charts
Network Diagram
Estimation
Schedule Network Analysis Techniques
PERT, PERT Analysis, Critical Path Method and Schedule Compression
Project Schedule Management Knowledge Area Processes

Plan Schedule Management Estimate Activity Durations
Define Activities Develop Schedule
Sequence Activities Control Schedule
In simple words the Project Schedule Management processes describe how to monitor and
control time spent within a project.
Every resource on the project needs to know what to do and when. Without an agreed and
realistic schedule, time may be wasted waiting for predecessor tasks to complete or tasks may be
done out of sequence, leading to rework and additional costs.
Using the Schedule Management processes, the amount of time being spent by the project team
can be controlled, which will increase the chances of delivering the project on time and as
scheduled.
Project Schedule
A Project Schedule is the agreed upon start dates, durations and end dates of the project tasks
sequenced in a logical order.
This is done by analyzing activity sequences, durations, resource requirements, and schedule
constraints.
The Baseline Schedule is the finalized and approved version that will be used to control the project
schedule.
The Schedule Management Plan contains details like, how to go about planning the project
schedule and how to effectively manage and control the project to the schedule baseline.
Project Schedule
Project schedules support the following:

They provide a basis to monitor and control project activities.
They help with determining how best to allocate resources to achieve the project goals.
They help with assessing how time delays will impact the project.
They enable the identification of where excess resources are available for re-allocation to other
tasks or projects.
They provide a basis for tracking project progress.
Gantt Chart
It provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific
tasks in a project.
It illustrates the start and finish dates of the elements
of a project.
It is constructed with a horizontal axis representing
the total time span of the project, broken down into
increments (for example, days, weeks, or months)
and a vertical axis representing the tasks that
make up the project.
Project Schedule Network Diagram
A visual representation technique that depicts the activities involved in a project and the logical
relationships (dependencies) among them.
Precedence diagramming method (PDM) may use an activity-on-node (AON)

schedule network diagramming technique, where the boxes (nodes) represent the activities
and the arrows represent the logical relationships.
Activity 2
Start Activity 1 Activity 4 End
Activity 3
Schedule Network Dependencies
There are four types of dependencies:
Finish-Start
The successor activity (B) cannot start before the predecessor activity (A) has ended e.g. you
cannot cook a stew before gathering all the ingredients.
Start-Start
The successor activity (B) cannot start before the predecessor activity (A) has started e.g.
project management can only start on the project once the project has started.
Finish-Finish
The successor activity (B) cannot finish before the predecessor activity (A) has finished e.g.
project management can only stop once the last activity on the project is completed.
Start-Finish
The predecessor (A) can not start until the successor (B) has finished. This type is seldom used.
Estimation
Estimation is a quantitative assessment of the likely amount or outcome. It should always include
some indication of accuracy (e.g., plus/minus a certain percentage).
Types of estimation techniques include:
Analogous
An estimate done using the values of parameters from previous experiences with similar activities.
Parametric
Uses a statistical relationship between historical data and other variables to calculate an estimate
for activity parameters e.g. multiplying the planned work to be performed by the historical cost
per work unit to obtain an estimated cost value.
Estimation (Continued)
Bottom-up
Estimating based on individual work packages of the WBS and rolled-up to get the total estimate
for the project. This estimate is normally the most accurate because it is based on estimating at
detail level.
Heuristics
A heuristic estimate means rule of thumb i.e. the 80/20 quality rule that suggests that 80 percent
of quality problems are caused by 20 percent of problem sources. (Experience-based technique)
Reserve Analysis
An analytical technique to determine the essential features and relationships of components in the
project management plan to establish a reserve for the schedule duration or budget for a project.
Single & Three Point Estimation
Single Estimate
Only one estimate per activity is provided i.e. the person doing the estimate says that
the activity would take 2 weeks.
Three-point Estimates
PERT (Program Evaluation Review Technique) uses a three-point estimating technique, with weighted
averages of optimistic, pessimistic and most likely estimates. The most likely estimate is weighted
most heavily.
The equation is:
E = PERT estimate (time or cost) O = Optimistic estimate

ML = Most Likely estimate P = Pessimistic estimate
Single & Three Point Estimation (Continued)
Example: It is estimated that an activity would at best be completed within 5 days, at worst within 15
days, but most of the time should be completed within 7 days:
PERT duration estimate E = (5 + (4 X 7) + 15) / 6 = 48 / 6 = 8 days
Schedule Network Analysis Techniques
Schedule network analysis techniques are used to produce the project schedule.
Examples of these techniques are:
Scenario analysis technique, investigating questions such as “what if a particular aspect is

changed on the project, would that produce a shorter schedule?”. The aim is to produce a
more realistic schedule.
Monte Carlo analysis is a computer based technique to simulate the outcome of a project.
The risks and other sources of uncertainty are used to calculate possible schedule outcomes
for the total project.
Schedule Network Analysis Techniques (Continued)
Resource levelling is used to produce a resource limited schedule and results in more realistic
resource assignments.
Resource Smoothing is a technique that adjusts the activities of a schedule model such that
the requirements for resources on the project do not exceed certain predefined limits.
Both resource levelling and resource smoothing are known as Resource Optimization
techniques
Critical chain method is a technique to develop the project schedule that takes both the
activity and resource dependencies into account.
Critical Path Method
The critical path determines the shortest time within which the project can be completed and it is the
longest duration path through a network of tasks. Critical tasks (activities) are tasks or activities on the
critical path.
Float or slack time is the amount of time a task can slip before it delays the project schedule. There are
two common types of floats.
Free float is the time a single task can be delayed without delaying the early start of the successor
task.
Total float is the time a single task can be delayed without delaying project completion.
Float is defined as: float = LS - ES or LF - EF

Activity duration is defined as: EF - ES or LF - LS
Where LS = Late Start, ES = Early Start, LF = Late Finish, EF = Early Finish
Critical path has zero or negative total float. A project can have several critical paths.
Critical Path Example
A 1w D 4w
H 6w
B 2w E 5w
S J 3w F
F 4w
C 3w G 6w I 2w
Critical path is determined by doing a:
Forward pass (calculate ES and EF)

Backward pass (calculate LS and LF)
Calculating float
Determining the critical path
Critical Path Example
Schedule Compression
Schedule compression is the shortening of the project schedule without affecting the project scope.
Two ways of creating schedule compression are:
Fast Tracking
Crashing
Fast Tracking is the process of compressing the total project duration by performing some activities
concurrently that were originally scheduled sequentially.
Crashing analyses cost and schedule trade-offs to determine how to obtain the greatest amount of
schedule compression for the least incremental cost.
Schedule Compression Example
Based on the above information we can decide to crash the activity ‘YY’ as it has the least cost
impact for the most schedule compression.
PERT Analysis Steps
Calculate per activity the estimated durations using

✓ PERT [E = (O + 4 x ML + P) / 6] and
✓ Standard deviation [σ = (P - O) / 6]
Draw the project schedule network, analyze the paths through the network and find the critical
path.
Determine the length of the critical path based on the PERT duration estimates.
Calculate the standard deviation of the critical path with the formula
√(σtask 1) ² + (σtask 2) ² + (σtask 3) ² + ……
Probability predictions can now be made using this information.
PERT Example
If W,X,Y and Z are the

only activities in a project and all are on the critical path, what is the project duration?
The answer is 172 with a standard deviation of 10.19.
The probability of completing the project between: 161.81 and 182.19 days is 68.27% (one sigma)
151.63 and 192.37 days is 95.45% (two sigma)
141.44 and 202.56 days is 99.73% (three sigma)
Project Schedule
Plan Schedule Management Planning
Management
The process of establishing the policies, procedures, and documentation for planning, developing,
managing, executing, and controlling the project schedule.
Gives guidance and direction on how the project schedule should be managed throughout the
project lifecycle.
Project Charter Expert Judgement Schedule Management Plan
Project Management Plan Data Analysis

Development Approach
Project Schedule
Define Activities Planning
Management
Activity definition is the process of identifying the specific actions to be performed to produce the
project deliverables.
Project Management Plan Expert Judgement

Schedule Management Plan Activity List
Scope Baseline
Decomposition
Enterprise Environmental Factors Activity Attributes
Rolling Wave Planning

Organizational Process Assets Milestone List
Meetings Change Requests

Schedule Baseline
Cost Baseline
Sequence Activities Planning

Project Schedule
Management
Sequencing activities is where
activities are put in order of when
they should be performed by
defining the relationships Inputs Tools & Techniques Outputs
between them. Project Management Plan Precedence Diagramming Method Project Schedule Network
Schedule Management Plan
Scope Baseline
(PDM) Diagrams

Activity List Activity List
Activity Attributes Dependency Determination Activity Attributes
Assumption Log Assumption Log
Milestone List Milestone List
Enterprise Environmental Factors Leads and Lags
Project Management Information

System
Sequence Activities continued
Leads and Lags:
Lead – is the amount of time that a successor activity can be advanced with respect to a predecessor
activity. Eg, on a new build office project, the car park for the offices could be scheduled to start two
weeks before the actual building work on the office itself completes. This would be shown as a finish-to-
start with a two week lead. Leads are often indicated as having negative value in scheduling software.
Complete Write
office build document
FS - 2 Weeks (Lead) SS + 5 Days (Lag)

Build car park Edit document
Lag – is the amount of time that a successor activity will be delayed with respect to a predecessor activity.
Eg, a review team may start editing a draft document 5 days after starting to write it. This would be shown
as a start-to-start with a 5 day lag.
Project Schedule
Estimate Activity Durations Planning
Management
Activity duration estimation is the Inputs Tools & Techniques Outputs
process of estimating the number Project Management Plan

Scope Management Plan Expert Judgement Duration Estimates
of work periods needed to Scope Baseline
complete individual activities with Analogous Estimating Basis of Estimates
estimated resources. Project Documents

Activity List Project Documents Updates
Parametric Estimating
Activity Attributes Activity Attributes
Assumption Log
Assumption Log
Lessons Learned Register Three Point Estimating
Milestone List Milestone List
Project Team Assignments
Resource Breakdown Structure Bottom-up Estimating
Resource Calendars
Resource Requirements
Risk Register Data Analysis
Reserve Analysis
Decision Making
Voting
Project Schedule
Planning
Develop Schedule Management
The process of analyzing
Project Management Plan Schedule Network Analysis Schedule Baseline
activity sequences, durations,
Project Documents Critical Path Method Project Schedule
resource requirements and
Project Documents Resource Optimization Schedule Data
schedule constraints to create a Activity List
Activity Attributes Data Analysis Project Calendars
schedule for project execution, Assumption Log What-if scenario analysis
Simulation Change Requests
monitoring and controlling. Basic of Estimates
Duration Estimates Project Documents Updates
Lessons Learned Register Activity Attributes
Milestone List Assumption Log
Project Schedule Network Diagrams Duration Estimates
Project Team Assignments Leads and Lags
Resource Calendars Resource Requirements
Resource Requirements Risk Register
Risk Register
Agreements Schedule Compression Project Management Plan Updates
Project Management Information Schedule Management Plan
Enterprise Environmental Factors Cost Baseline
System
Organizational Process Assets Agile Release Planning
Monitoring & Project Schedule

Control Schedule Controlling Management
Controlling the schedule

includes monitoring schedule
Data Analysis
performance and controlling Project Management Plan Earned Value Analysis
Work Performance Information
Schedule Management Plan Iteration Burndown Chart
changes to the schedule Schedule Baseline Performance Reviews Schedule Forecasts
Scope Baseline Trend Analysis
baseline. Performance Measurement Baseline Variance Analysis
Change Requests
What-if scenario analysis
Project Documents Critical Path Method

Work Performance Data Project Management Information System Schedule Baseline
Scope Baseline
Cost Baseline
Organizational Process Assets Resource Optimization
Leads and Lags Project Documents Updates

Issue Log
Schedule Compression Stakeholder Register
Tailoring:
the way Project Schedule Management processes are applied. The various aspects that may be
considered are :
Life cycle approach

Resource availability
Project dimensions
Technology support
Questions Module 6
Question – 1
Two Tasks P (duration of 2 weeks) and Q (duration of 3 weeks) should both be finished, but Q
has a lag of 2 days with its predecessor P. Which is the correct way of representation for
Q’s predecessor field?
A. FF + 2 C. FS + 2
B. FF – 2 D. FS - 2
Question – 2
The PERT estimate for a task with optimistic value of 3 days, pessimistic value of 7 days and
most likely value of 5 days is:
A. 4 days C. 5 days
B. 7 days D. 3 days
Question – 3
What-if analysis is used as one of the Tools and Techniques in which one of the following processes?
A. Sequence Activities and Estimate Activity Durations
B. Develop Schedule and Define Activities
C. Develop Schedule and Control Schedule
D. Only in Develop Schedule
Question – 4
An activity has an ES of 0 day and LS of 2 days. Which one of the following is a correct
statement?
A. The activity is one of the first tasks to be executed in the project
B. The activity has a float of 2 days
C. The activity is not on the critical path
D. All of the above
Question – 5
What is the correct sequence of execution for processes in Schedule Management?
A. Create WBS, Define Activities, Sequence Activities, Estimate Activity Durations, and then
Develop Schedule
B. Create WBS, Define Activities, Sequence Activities, Develop Schedule, and then Estimate
Activity Durations
C. Define Activities, Sequence Activities, Estimate Activity Durations, and then Develop
Schedule
D. Define Activities, Sequence Activities, Estimate Activity Durations, Create WBS, and then
Develop Schedule
End of Module 6

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 7
Project Cost Management

Learning Objectives – Project Cost Management
What is Project Cost Management?

Differentiate between Cost Estimating and Cost Budgeting
Key Terminology in Project Cost Management
Core PM processes of the Project Cost Management Knowledge Area
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
Earned Value Technique
Project Cost Management involves:

Making an approximation of the expected costs (estimate costs)
Getting approval for the costs (determine budget)
Monitoring the status of the project cost and taking action where needed (control cost).
Cost Management Plan:

States how costs will be controlled, estimating units of measure, estimating precision, permissible
variance thresholds, earned value rules and reporting formats.
Project Cost
Plan Cost Management Planning
Management
The process that establishes the policies, procedures and documentation for planning,
managing, expending, and controlling project costs
Gives guidance and direction on how cost will be managed throughout the project
Project Charter Expert Judgement Cost Management Plan

Data Analysis
Risk Management Plan
Project Cost
Estimate Costs Planning
Management
Cost Estimating is the Inputs Tools & Techniques Outputs
process of "developing
an approximation of the Cost Management Plan
Expert Judgement Cost Estimates
Quality Management Plan
cost of resources Scope Baseline
needed to complete Project Documents

Analogous Estimating
project work". Project Schedule

Parametric Estimating Basis of Estimates
Risk Register Bottom-Up Estimating
Enterprise Environmental Factors Three Point Estimating Project Documents Updates

Assumption Log
Data Analysis Lessons Learned Register
Alternative Analysis (Build/Buy) Risk Register
Reserve Analysis
Cost of Quality

System
Decision Making
Voting
Determine Budget Project Cost

Planning
Management
Cost budgeting is the
process of aggregating
the estimated costs of Cost Management Plan
Expert Judgement Cost Baseline
Resource Management Plan
individual activities or Scope Baseline
Project Documents
work packages to Basis of Estimates
Cost Estimates Cost Aggregation Project Funding Requirements
establish an authorized Project Schedule
Risk Register
cost baseline. Business Documents Data Analysis
Business Case
Reserve Analysis
Benefits Management Plan Project Documents Updates
Cost Estimates
Agreements Historical Information Review Project Schedule
Risk Register
Enterprise Environmental Factors Funding Limit Reconciliation
Organizational Process Assets Financing
Control Costs Monitoring & Project Cost

Control cost is the
process of monitoring Inputs Tools & Techniques Outputs
the status of the project Project Management Plan
to update the project Cost Management Plan
Cost Baseline
Expert Judgement Work Performance Information
costs and managing Performance Measurement Baseline
Data Analysis
changes to the cost Project Documents Earned Value Analysis
Cost Forecasts
baseline. Lessons Learned Register

Trend Analysis
Variance Analysis Change Requests
Reserve Analysis

Project Funding Requirements To-compete Performance Index Cost Management Plan
Cost Baseline
Project Management Information Performance Measurement Baseline
System
Assumption Log
Organizational Process Assets Basis of Estimates
Risk Register
Earned Value Management
Earned value management or EVM is the methodology that combines scope, schedule, and resource
measurements to assess project performance and progress.
It is commonly used as the basis for performance measurement in projects.
It integrates:
The Scope Baseline
The Cost Baseline
The Schedule Baseline
This forms the Performance Measurement Baseline for a project.
This helps project teams to assess and measure the project’s performance and progress.
Earned Value Term Description Formula Interpretation

Management Terms Planned Value
What is the estimated value of the work planned
PV (BCWS) (Budgeted Cost of Work -
to be done?
and Calculations Scheduled)
Earned Value
What is the estimated value of the work actually
EV (BCWP) (Budgeted Cost of Work -
A summary of Performed)
accomplished?
important earned Actual Cost

AC (ACWP) (Actual Cost of Work - What is the actual cost incurred?
value terms, Performed)
associated BAC Budget at Completion - How much did you budget for the project?
calculations and their At a given point in time, what is the project’s
interpretations: budget deficit or surplus?
CV Cost Variance EV – AC POSITIVE is under planned cost
NEUTRAL (ZERO) is on planned cost
NEGATIVE is over planned cost
At a given point in time, by what amount the

project is ahead or behind the planned delivery
date?
SV Schedule Variance EV – PV
POSITIVE is ahead of schedule
NEUTRAL (ZERO) is on schedule
NEGATIVE is behind schedule
Earned Value Term Description Formula Interpretation

Management Terms How well the project is doing with respect to cost?
and Calculations CPI Cost Performance Index EV / AC
Getting (Only) ___ cents out of every $1.
Greater than 1 .0 is under planned cost
(continued) Exactly 1.0 is on planned cost
Less than 1.0 is over planned cost
A summary of How well the project is doing with respect to

schedule?
important earned Schedule Performance
Progressing at (Only) ___% of the rate originally
SPI EV / PV planned.
value terms, Index
Greater than 1 .0 is ahead of schedule
Exactly 1.0 is on schedule
associated Less than 1.0 is behind schedule
calculations and BAC/CPI
EAC Estimate At Completion What is the total project estimate to cost?
their interpretations: (default)
From this point on, how much more do we expect it to

ETC Estimate To Complete EAC – AC
cost to finish the job?
How much over or under budget do we expect to be?

POSITIVE is under planned cost
VAC Variance at Completion BAC - EAC
NEUTRAL (ZERO) is on planned cost
NEGATIVE is over planned cost
EAC with Various Name Assumptions Formula

Assumptions
Assumption – 1: If the CPI is
EAC = BAC/CPI
expected to be the same for the
(The default formula)
Earned Value remainder of the project
Management
formulae for EAC Assumption – 2: If future work will
EAC = AC + (BAC – EV)
be completed at the planned rate
based on various
assumptions. Assumption – 3: If both the CPI and
Estimate At Completion
SPI will influence the remaining EAC = AC + [ (BAC – EV) / (CPI * SPI)]
(EAC)
work.
Assumption – 4: If both the CPI and EAC = AC + [ (BAC – EV) / (0.8* CPI + 0.2 * SPI)]
SPI will influence the remaining Above 80% weightage is given to CPI and 20% weightage is given to
work in some proportion. SPI. If the weightage changes, the denominator will change
It is a variant of Assumption 4. accordingly.
Assumption – 5: If the initial plan is

EAC = AC + Bottom-up ETC
no longer valid.
To Complete Name How Used Formula Interpretation

Performance Index
Earned Value Greater than 1 .0 is harder to

Management The efficiency that must be complete
maintained in order to complete TCPI = (BAC - EV) / (BAC – AC) Exactly 1.0 is same to complete
formulae for TCPI on plan. Less than 1.0 is easier to
complete
based on conditions.
To Complete Performance
Index (TCPI)
Greater than 1 .0 is harder to

The efficiency that must be complete
maintained in order to complete TCPI = (BAC - EV) / (EAC – AC) Exactly 1.0 is same to complete
the current EAC. Less than 1.0 is easier to
complete
BAC = Baselined Effort-hours * Hourly

EVM Illustration Rate
BAC = $800 (8 hours * $100)
To illustrate the concept of EVM, assume a project of building a wall EAC (estimate at complete) = AC + ETC
has exactly one task. The task was baselined at 8 hours, but 11 hours EAC = $1200 ($1100 + $100)
have been spent and the estimate to complete is 1 additional hour. VAC = BAC - EAC
The task was to have been completed already. Assume an Hourly VAC = -$400 ($800 - $1200 )
Rate of $100 per hour. Using this information: Calculate CPI and SPI. % Completed Planned = PV / BAC
% Complete Planned = 100% ($800 PV /
Problem Solution: $800 BAC)
Hourly Rate = $100 % Completed Actual = AC / EAC

% Complete Actual = 91.7% ($1100 AC /
PV = Hourly Rate * Total Hours Planned or Scheduled $1200 EAC)
PV = $800 ($100 * 8 hours) EV = Base lined Cost * % Complete Actual
AC = Hourly Rate * Total Hours Spent EV = $734 (baseline of $800 * 91.7%
complete)
AC = $1100 ($100 * 11 hours)
EVM Illustration (Continued)
BAC = Baselined Effort-hours * Hourly Rate % Completed Planned = PV / BAC

BAC = $800 (8 hours * $100) % Complete Planned = 100% ($800 PV / $800 BAC)
EAC = AC + ETC % Completed Actual = AC / EAC

EAC = $1200 ($1100 + $100) % Complete Actual = 91.7% ($1100 AC / $1200 EAC)
VAC = BAC - EAC EV = Base lined Cost * % Complete Actual

VAC = -$400 ($800 - $1200 ) EV = $734 (baseline of $800 * 91.7% complete)
EVM Illustration (Continued)
SV = Earned Value (EV) - Planned Value (PV)

SV = -$66 ($734 EV - $800 PV)
SPI = Earned Value (EV) / Planned Value (PV)

SPI = 0.91 ($734 EV / $800 PV)
CV = Earned Value (EV) - Actual Cost (AC)

CV = -$366 ($734 EV - $1100 AC) indicating a cost overrun
CPI = Earned Value (EV) / Actual Cost (AC)

CPI = 0.66 ($734 EV / $1100 AC) indicating over budget
Tailoring:
the way Project Cost Management processes are applied. The various aspects that may be considered
are :
Estimating and budgeting
Earned value management
Use of agile approach
Governance
Questions Module 7
Question – 1
In which process is the initial Cost Management Plan prepared?
A. Estimate Costs
B. Determine Budget
C. Develop Project Management Plan
D. Plan Cost Management
Question – 2
In a project the SPI is found to be 0.8. It means which of the following?
A. For every one dollar spent, 80 cents is received back
B. For every estimated day of effort, 0.8 days of productive work is performed
C. For every estimated week of effort, 4 days of productive work is performed
D. Both B and C
Question – 3
A project has an SPI of 0.9375 and EV of 105. What is the SV of the project?
A. -7
B. -10
C. -12
D. 10
Question – 4
The Estimate to Complete (ETC) is defined as which of the following:
A. Total budget that will be spent based on past performance
B. Projected remaining amount of money that will be spent based on past performance
C. Difference between what was budgeted and what is expected to be spent
D. Originally planned cost minus the cost incurred to date
Question – 5
As a project manager, your best use of the Cost Baseline would be:
A. Measure and monitor the cost performance of the project
B. Track approved changes
C. Calculate team performance bonuses
D. Measure and report project variable costs
Question – 6
The value of work completed so far is:
A. EV
B. AC
C. PV
D. EAC
End of Module 7

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 8
Project Quality Management

Learning Objectives – Project Quality Management
What is Quality?
What is Quality Management?
Cost of Quality
Core PM processes of the Project Quality Management Knowledge Area.
Plan Quality Management
Manage Quality
Control Quality
Seven Basic Tools of Quality
Quality
“Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and
fulfilling stated and implied needs”.
This definition basically says that quality is "meeting or exceeding customer expectations.“
Project quality management involves making sure the project meets the needs or expectations of the
stakeholder.
The project manager is responsible for project quality, whereas senior management is responsible for
the quality of the whole organization.
What is Quality Management?
Quality Management on a project is making sure that the final product or service meets certain
standards.
The standards can be set by the Project Manager or the customer or by established norms such as
legal requirements.
The three processes of the Project Quality Management Knowledge Area are:
Plan Quality Management

Manage Quality
Control Quality
What is Quality Management? (Continued)
In the context of achieving ISO compatibility, modern quality management approaches seek
to minimize variations and to deliver results that meet defined requirements. These types of approach
recognize the importance of:
Customer satisfaction
Understanding, evaluating, defining requirements and expectations of customers and clients
Prevention over inspection

Quality should be planned, designed and built into project deliverables not inspected into the project
deliverables.
What is Quality Management? (Continued)
Continual improvement
Plan-Do-Check-Act (PDCA) is the basis for quality improvement as defined by Shewhart and modified
by Deming. Quality improvement initiatives such as Total Quality Management (TQM) where
everyone involved in the project can contribute to its quality improvements and Lean Six Sigma could
improve the quality of the project’s management as well as the quality of the deliverables.
Management Responsibility
Management retains within it the responsibility for quality and for the provision of suitable resources
with adequate capabilities.
Cost of Quality
Cost of quality includes all costs incurred over the life of the product by investing in preventing non-
conformance to requirements and ensuring that the product conforms to requirements.
Cost of conformance
The costs incurred while building in, or ensuring, quality are called the costs of conformance. Costs of
conformance can include activities such as:
Process documentation
Training
Inspections
Audits
This is money spent to avoid failures.
Cost of Quality
Cost of Non-Conformance
There is a potential loss of money spent for costs associated with any resulting project failures. These
costs are referred to as the costs of non-conformance. This is money spent because of failures.
Costs of non-conformance can include things such as:
Payments made out on warranties,

Re-work or scrap, and/or
Damage to reputation.
Project Quality
Plan Quality Management Planning
Management
The goal is to identify all Inputs Tools & Techniques Outputs

Project Charter Expert Judgement Quality Management Plan
relevant standards that
Project Management Plan Data Gathering
apply to a project as well as Requirements Management Plan
Benchmarking
Risk Management Plan Quality Metrics
the quality requirements Stakeholder Engagement Plan
Scope Baseline
Brainstorming
Interviews
that need to be met. Project Documents

Assumption Log
Data Analysis
Cost Benefits Analysis Project Management Plan Updates
Cost of Quality Risk Management Plan
Risk Register Scope Baseline
Decision Making
Multicriteria Decision Analysis
Data Representation Project Document Updates

Flowcharts Lessons Learned Register
Organizational Process Assets Logical Data Model Requirements Traceability Matrix
Matrix Diagram Risk Register
Mind Mapping Stakeholder Register
Test and Inspection Planning
Meetings
Project Quality
Executing
Manage Quality Management
Is the process of translating
Project Management Plan Data Gathering Quality Reports
the quality management plan Quality Management Plan Checklists
into executable quality Project Documents

Lessons Learned Register Data Analysis
Test and Evaluation Documents
activities that incorporate the Control Quality Measurements
Quality Metrics
Process Analysis
Root Cause Analysis (RCA)
organization’s quality policies Risk Report
Decision Making
into the project. Organizational Process Assets
Multicriteria Decision Analysis
Change Requests
Data Representation
Affinity Diagram Project Management Plan Updates
It increases the probability of Cause-and-effect Diagram
Flowcharts
Scope Baseline
meeting the quality Histograms
Matrix Diagrams
Schedule Baseline
Cost Baseline
objectives as well as Scatter Diagram
Audits
identifying ineffective
Design for X Project Documents Updates
processes and causes of poor Issue Log
Problem Solving Lessons Learned Register
quality. Risk Register
Quality Improvement Methods
Monitoring & Project Quality

Control Quality Controlling Management
Control Quality is the
Data Gathering
process of monitoring and Project Management Plan Checklists
Check Sheets Quality Control Measurements
recording results of Quality Management Plan
Statistical Sampling
Questionnaire and Surveys
executing the quality Project Documents Data Analysis Verified Deliverables
management activities in Lessons Learned Register
Quality Metrics
Performance Reviews
Root Cause Analysis
order to assess performance
Approved Change Requests Inspection Work Performance Information
and ensure the project
Deliverables Testing/Product Evaluations Change Requests
outputs are complete,
Data Representation
correct, and meet customer Work Performance Data
Cause-and-effect Diagram
Control Charts
expectations. Histogram
Scatter Diagram
Meetings Project Documents Updates

Approved CR Review Issue Log
Risk Register
Seven Basic Tools of Quality
Seven basic tools can be:

Understood and used by anyone without training in statistics
Used to solve the vast majority of quality-related issues
Also known as 7QC Tools, they are used within the context of the PDCA Cycle
Cause and Effect Diagrams
Flowcharts
Check-sheets
Histograms
Pareto Charts or Diagrams
Scatter Diagrams
Control Charts
Cause & Effect Diagram
A graphic tool that helps identify, sort, and display possible causes of a problem or quality
characteristic. Also called fishbone or Ishikawa diagrams.
Benefits of using this diagram: Basic layout of Cause & Effect Diagram
Helps determine root causes Cause A Cause C

Encourages group participation
Uses an orderly, easy-to-read format
Increases process knowledge
Identifies areas for collecting data. Effect
Cause B Cause D
Flowchart Start
A pictorial representation of the separate steps of a process Do

in sequential order.
Used in designing and documenting complex processes. Like
other types of diagrams, they help visualize what is going on Decide Do
and thereby help the viewer to understand a process, and
perhaps also find flaws, bottlenecks, and other less-obvious
features within it. Do
Help you get a handle on how processes work by showing
all of the decision points graphically. End
Flowcharts are extended with the SIPOC model which adds more details to each of the processes in a
flowchart. SIPOC stands for suppliers, inputs, process, outputs, and customers which form the columns of
the table. Ref Page 236/237 of the PMBOK© Guide – Sixth Edition.
Check Sheet
Also known as Tally sheets and can be used as a checklist

while gathering data. Facts are organized in a manner, which
will facilitate the effective collection of useful data about a
potential quality problem.
It is especially useful for gathering attributes data while
performing inspections to identify defects. This is later put
into Pareto Diagrams for analysis.
Histogram
A histogram is a vertical bar chart showing how often a particular variable occurred.
Histograms are used to plot the density of data, and often for density estimation, and estimating the
probability density function of the underlying variable.
Pareto Chart
A bar graph, where the lengths of the bars

represent frequency or cost (time or money), and
are arranged with the longest bars on the left and ± 80% of defects
the shortest to the right.
Pareto charts help to figure out which problems

need attention right away. They’re based on the
idea that a large number of problems are caused by
a small number of causes. In fact, that’s called the
80 / 20 rule - 80% of the defects are usually caused
by 20% of the causes. ± 20% of causes
Run Chart
Also known as a run-sequence plot, it is a graph that displays observed data in a time sequence. Often, the
data displayed represent some aspect of the output or performance of a manufacturing or other business
process.
Run charts are similar to the control charts used in statistical process control, but do not show the control
limits of the process.
observed data
time sequence
Scatter Diagram
The scatter diagram graphs pairs of

numerical data, with one variable on each
axis, to look for a relationship between
them. If the variables are correlated, the
points will fall along a line or curve. The
better the correlation, the tighter the
points will hug the line.
Scatter charts help look at the relationship
between two different kinds of data.
http://n.wikipedia.org/wiki/Scatter_plot
Control Chart
Also known as Shewhart chart or process behavior charts have a central line for the average, an upper line
for the upper control limit and a lower line for the lower control limit.
The control chart is a graph used to study how a process changes over time. Data are plotted in time order.
UCL
observed data
Mean
LCL
Process out of time sequence UCL = Upper Control Limit

control LCL = Lower Control Limit
Tailoring:
the way Project Quality Management processes are applied. The various aspects that may be
considered are :
Policy compliance and auditing

Standards and regulatory compliance
Continuous improvement
Stakeholder engagement
Questions Module 8
Question – 1
In which one of the following charts is the rule of seven used?
A. Control Chart
B. Run Chart
C. Pareto Chart
D. Flowchart
Question – 2
You are a project manager and have been called by the senior management team to find out what
standards and practices are being followed in your project. By this, which process is being performed?
A. Total Quality Management
B. Plan Quality Management
C. Manage Quality
D. Control Quality
Question – 3
An Ishikawa Diagram is used in which of the following process?
A. Manage Quality
B. Plan Quality Management
C. Control Quality
D. All of the above
Question – 4
Which one of the following best represents the Total Quality Management (TQM) philosophy?
A. Decreasing inventory to zero or near zero level
B. Everyone in the organization can contribute to quality improvements
C. Zero defects
D. Continuous improvement is preferred over disruptive changes
Question – 5
In a Control Chart, the upper and lower control limits are set at what value from the mean?
A. One standard deviation
B. Two standard deviations
C. Three standard deviations
D. Six standard deviations
Question – 6
The PDCA cycle was initially proposed by:
A. ISO body
B. Edward Deming
C. Francis Bacon
D. Walter D. Shewart
End of Module 8

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 9
Project Resource Management

Learning Objectives – Project Resource Management
What is Resource Management?

Roles and Responsibilities of the Project Sponsor
Functional Manager vs. Project Manager
Core PM processes of the Resource Management Knowledge Area.
Plan Resource Management

Estimate Activity Resources
Acquire Resources
Develop Team
Manage Team
Control Resources
Conflict Management
Motivation Theory
Resource Management
Project Resource Management includes the processes to identify, acquire, and manage the resources
needed for the successful completion of the project.
Project resource management includes the following:
Plan Resource Management: Define and document how to estimate, acquire, manage, and
utilize physical and team resources.
Estimate Activity Resources: Estimating team resources and the type and quantities of
material, equipment, and supplies necessary to perform project work
Acquire Resources: Obtaining team members, facilities, equipment, materials, supplies, and
other resources necessary to complete project work.
Develop Team: Improve the competencies and interaction of team members to enhance
project management.
Manage Team: Tracking team member performance, providing feedback, resolving issues and
coordinating changes to enhance project performance.
Control Resources: Ensuring that the physical resources assigned are available as planned and
monitoring the planned versus actual use of resources.
Role of Project Sponsor
The sponsor is a key stakeholder of the project that provides the financial resources, in cash or in
kind, for the project. There may be more than one sponsor for a project.
The Project Sponsor:

Is responsible for providing the project budget
Provides authority to the project manager
Prioritizes the constraints for the project
Approves the project management plan
Enforces quality policies
Approves changes
Formally accepts project deliverables
Ensures the benefits from the project are realized
Functional vs. Project Manager

Functional Manager Project Manager
▪ Responsible for activities in a specialized ▪ A manager or individual responsible for
department or function. managing a project.
▪ Responsible for one of the principle ▪ A project manager is responsible for the
elements of the organization, such as whole project and each phase.
production, marketing, finance, etc. ▪ The project manager is the person
▪ Each functional manager tends to responsible for accomplishing the project
emphasize his/her own function or objectives within the constraints of the
department and his/her authority level is project.
limited to his/her own department or ▪ The project manager is involved in the
function. planning, controlling and monitoring and
▪ Likely to be a part of the function or managing the assigned project resources to
department planning and controlling. best meet project objectives.
Plan Resource Management

Project Resource
Planning
Plan Resource Management is the Management
process of defining how to estimate,
acquire, manage, and use team and Inputs Tools & Techniques Outputs
physical resources.
Project Charter Expert Judgement Resource Management Plan
It establishes the approach and level Project Management Plan Data Representation
Hierarchical Charts
Quality Management Plan Team Charter
of management effort needed for Scope Baseline
Responsibility Assignment Matrix
Text-oriented Formats
managing project resources based Project Documents
on the type and complexity of the Project Schedule
Requirement Documentation Organizational Theory Assumption Log
project. Risk Register

Risk Register
Enterprise Environmental
Meetings
Factors
Organizational Process
Assets
Plan Resource Management (continued)
A RACI Chart is a matrix based chart known also as a responsibility assignment matrix (RAM).
A RACI Chart (responsible, accountable, consult, and inform) is useful when the project team consists of
internal and external resources and it assists in ensuring clear divisions of individual roles and
expectations.
RACI Chart Activity Dave William Carol Ben Emma
Create Project Charter A R I I I
Collect requirements I A R C C
Submit Change Requests I A R R C
Develop Project Plan A C I I R
R = Responsible A = Accountable C = Consult I = Inform

"A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition,
Project Management Institute, Inc., 2017, Figure 9-4, Page 317."
Project Resource
Estimate Activity Resources Planning
Management
Estimate Activity Resources is the Inputs Tools & Techniques Outputs

process of estimating team
resources and the type and Resource Management Plan Expert Judgement Resource Requirements
Scope Baseline
quantities of materials, equipment
Project Documents Bottom-up Estimating
and supplies necessary to perform Activity Attributes
Activity List
project work. Assumption Log Parametric Estimating Basis of Estimates
Cost Estimates
Resource Calendars
Risk Register Analogous Estimating
It identifies the type, quantity, and
Enterprise Environmental Project Management Resource Breakdown
characteristics of resources required Factors Information System Structure
to complete the project. Data Analysis Project Documents Updates
Organizational Process Alternatives Analysis Activity Attributes
Assumption Log
Assets Lessons Learned Register
Meetings
Project Resource
Executing
Acquire Resources Management

The Acquire Resources process involves
Project Management Plan Physical Resource Assignments
obtaining team members, facilities, Resource Management Plan Decision Making
Procurement Management Plan Multicriteria Decision Analysis Project Team Assignments
equipment, materials, supplies, and Cost Baseline
other resources necessary to complete Project Documents

Project Schedule Interpersonal and Team
Resource Calendars
project work. Resource Calendars

Skills
Negotiation Change Requests
Pre-assignment Project Management Plan Updates
Factors Resource Management Plan
Cost Baseline
Organizational Process Assets Virtual Teams
Project Schedule
Resource Breakdown Structure
Risk Register
Enterprise Environmental Factors Updates
Project Resource
Executing
Develop Team Management
The Develop Team process under Project Management
Plan Colocation Team Performance Assessments
Resource Management is the means Resource Management Plan
by which "improving competencies, Project Documents Virtual Teams Change Requests
team interaction and the overall team Project Schedule Communication Technology
Project Team Assignment
environment will enhance project Resource Calendar
Recognition and Rewards Project Management Plan Updates
Team Charter
performance." Resource management plan

Conflict Management Project Documents Updates
Enterprise Environmental Influencing Lessons Learned Register
Factors Motivation Project Schedule
Negotiation Project Team Assignments
Team Building Resource Calendars
Team Charter
Organizational Process Enterprise Environmental Factors

Training
Assets Updates
Individual and Team Assessments
Updates
Meetings
Develop Team
Team Building Activities:
Team building can come in the form of five minute briefings, sports activities or professional
facilitated meetings. Team building is essential in the early stages of a project. It is a continual process
throughout a project. The project manager must continually monitor the functionality and
performance of the team and take action to prevent or correct various team problems.
The Tuckman Ladder (Tuckman & Jensen, 1977) includes five stages of team development:
Forming
Storming
Norming
Performing
Adjourning
Develop Team
Forming
This is where the team meets and learns about the project and their formal roles and responsibilities.
At this point team members tend to be independent and not as open to one another.
Storming
Here the team starts to address the project work, technical decisions and the management approach
to the project. The team needs to be open and collaborative at this stage or the environment can
become counterproductive.
Norming
Team members begin to work together and adjust to the environment. They also may adjust their
own work habits to suit the environment.
Develop Team
Performing
Reaching this stage a team will be well organized. They will be interdependent and work through
issues smoothly and effectively.
Adjourning
The team completes the work and moves on from the project to other assignments.
Project Resource
Manage Team Executing
Management
Manage Team process Inputs Tools & Techniques Outputs

involves the tracking and
appraisal of team member Project Management Plan
Conflict Management
Decision Making Change Requests
performance, providing Resource Management Plan Emotional Intelligence
Influencing
feedback, resolving issues, Leadership
managing conflict and Project Documents Project Management Plan Updates

Issue Log Project Management Information Resource Management Plan
coordinating changes to Lessons Learned Register
Project Team Assignments System Schedule Baseline
Cost Baseline
enhance project Team Charter
performance. Work Performance Reports Project Documents Updates

Issue Log
Team Performance Assessments Project Team Assignments

Updates
Conflict Management
Conflict is a form of interacting where we find ourselves under perceived threat to our personal or
collective goals.
Conflict is an inevitable consequence of organizational interactions.
Conflict situations result in negative and positive effects. They may help diffuse more serious
conflicts, stimulate a search for new facts or resolution, increase group cohesion and performance,
and demonstrate the power or ability of the conflicting parties.
Conflict Management (continued)
Conflict can be avoided by:

Keeping the project team informed about the exact project status
Assigning responsibilities in such a way that overlapping of responsibilities do not occur.
Keeping the whole project team motivated.
Approaches to conflict resolution:

Collaborate/Problem-solve approach
Withdraw/Avoid approach
Compromise/Reconcile approach
Smooth/Accommodate approach
Force/Direct approach
Motivation Theory
Motivation is an internal drive to meet a set of objectives.
Being a project manager one should be aware of what motivates the team, in order to get the results
expected.
McGregor's X-Y theory:

According to McGregor, there are the following two types of managers:
• Theory X managers believe people are self-centered, are only motivated by their physiological
and safety needs. They lack ambition and have very little problem solving skills, they also dislike
and try to avoid work.
• Theory Y managers trust their employees. People are willing to work without supervision. They
are creative, committed and want to achieve something.
Maslow’s Hierarchy of Human Needs
Maslow’s Hierarchy of Human Needs
Monitoring and Project Resource

Control Resources Controlling Management
Control Resources is the Inputs Tools & Techniques Outputs
process of ensuring that the
Problem Solving Work Performance Information
physical resources assigned Resource Management Plan
and allocated to the project Project Documents

Issue Log
Data Analysis
Alternative Analysis Change Requests
are available as planned, as Lessons Learned Register
Physical Resource Assignments Cost Benefits Analysis
well as monitoring the Project Schedule
Resource Breakdown Structure
Performance Reviews
Trend Analysis
planned versus actual Resource Requirements
Risks Register
utilization of resources and Interpersonal and Team Skills Schedule Baseline
Cost Baseline
Work Performance Data Negotiation
taking corrective action as Influencing
necessary. Agreements
Project Management Information Project Documents Updates
System Assumption Log
Issue Log
Physical Resource Assignments
Organizational Process Assets Resource Breakdown Structure
Risk Register
Tailoring:
the way Project Resource Management processes are applied. The various aspects that may be
considered are :
Diversity
Physical Location
Industry-specific resources
Acquisition of team members
Management of team
Life cycle approaches
Questions Module 9
Question – 1
Which one of the following is the best form of Conflict Management technique?
A. Withdrawal
B. Avoidance
C. Collaboration
D. Compromise
Question – 2
What do the letters RACI stand for in a RACI chart?
A. Responsible, Analyze, Consult and Inform
B. Responsible, Accountable, Confirm and Inform
C. Role, Accountability, Confirmation and Information
D. Responsible, Accountable, Consult and Inform
Question – 3
At the higher level of Maslow’s hierarchy of needs which one will hold true?
A. Food, Sleeping and Breathing
B. Self confidence, Achievement
C. Friendship, Family
D. Security of family, Employment
Question – 4
A Resource Calendar is prepared for the resources within the Resource Management
Knowledge Area and is part of:
A. Risk Management Plan
B. Release Plan
C. Project Documents
D. Project Management Plan
Question – 5
What is the correct sequence of steps taken during the development of a project team?
A. Storming, Forming, Norming and Adjourning
B. Forming, Storming, Norming, Performing and Adjourning
C. Forming, Storming, Norming, Performing and Relieving
D. Forming, Storming, Norming, Performing, Achieving and
Adjourning
Question – 6
The best forms of power given to a project manager are:
A. Reward and Referral
B. Reward and Formal
C. Expert and Reward
D. Expert and Formal
End of Module 9

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 10
Project Communications Management

Learning Objectives – Project Communications Managment
What is Communication?
Communication Methods, Technology and Channels
Basic Communication Model
Key Terminology in Project Communication Management
Core PM processes of the Communication Management Knowledge Area
Plan Communications Management
Manage Communications
Monitor Communications
Communication
Communication is the activity of conveying meaningful information.

Communication requires a sender, a message, and an intended recipient. The communication process
is complete once the receiver has understood the sender.
Project teams are not normally natural teams and sometimes do not even reside in the same
geographic location. Unique delivery methods and communication devices need to be utilized to
overcome this challenge.
Project managers spend most of their time in communicating to stakeholders.
A project manager needs to understand the project well enough to know who needs to know which
pieces of information, and just as importantly, which pieces of information are of no use to other
members.
Communication isn’t about how much you say to everyone, it’s about saying the right things to the
right people.
Communication Methods
The PMBOK® Guide - Sixth Edition categorizes the methods of communication into:
Interactive Communication
Push Communication
Pull Communication
For Interactive communication, all stakeholders involved in the communication can respond to each
other in real-time i.e. face-to-face meetings, video conferencing, phone calls & messenger chats.
Push communication is a method in which information is distributed without any feedback from the
recipients i.e. meeting notes to people after a brainstorming workshop, email or voicemail.
Organizations use push communication to notify shareholders through a press release.
Pull communication is best for a large audience that needs to access information at their discretion.
i.e. organization websites.
Basic Communication Model
A Communication model looks like a circle with 3 parts (see picture):

The sender
The message
The receiver.
Encode: To translate thoughts or ideas into a language that is understood by others.
Decode: To translate the message back into meaningful thoughts or ideas.
Sender Receiver
Decode
Encode
Message
Communication Channels
The Project Manager must also take into consideration the number of communication channels that will
be involved in the project and how complex it might be. It is important to establish who will communicate
with whom and to limit the number of channels to only those necessary to complete the project.
The formula for establishing the number of communications channels is:

n ( n - 1) / 2
Where “n” represents the number of stakeholders.
Example:
There are 10 stakeholders involved in a project.
The number of communication channels will be:
n = 10
Using the formula
10 ( 10 - 1 ) / 2 = 45
There are 45 communications channels for this project.
Project Communications
Planning Management
Plan Communications
Management Inputs Tools & Techniques Outputs
Plan communications is the Project Charter Expert Judgement Communications Management Plan
process of developing an Project Management Plan

Communications Requirement
Analysis
appropriate approach and Stakeholder Engagement Plan Project Management Plan Updates
Project Documents Stakeholder Engagement Plan
plan for project Requirements Documentations Communications Technology
communications activities
Communications Models Project Documents Updates
based on the stakeholder’s Enterprise Environmental Factors
Project Schedule
Communications Methods Stakeholder Register
information needs and
requirements, and available Interpersonal and Team Skills
Communications Styles Assessment
organizational assets. Organizational Process Assets
Political Awareness
Culture Awareness
Data Representation
Stakeholder Engagement
Assessment Matrix
Meetings
Project Communications
Manage Communications Executing Management
The process of creating, Inputs Tools & Techniques Outputs
collecting, distributing, Project Management Plan

Communication Technology Project Communications
storing, retrieving, and the Communications Management Plan

Stakeholder Engagement Plan Communication Methods
ultimate disposition of project Communication Skills Project Management Plan Updates
Project Documents Communications Management Plan
information in accordance Change Log
Issue Log
Communication Competence
Feedback Stakeholder Engagement Plan
Nonverbal
with the Communication Lessons Learned Register
Quality Report
Presentations
Management Plan. Risk Report

Systems
Work Performance Reports Project Reporting Project Documents Updates

Issue Log
Interpersonal and Team Skills Lessons Learned Register
Active Listening Project Schedule
Conflict Management Risk Register
Enterprise Environmental Factors Political Awareness Stakeholder Register
Networking
Meeting Management
Cultural Awareness
Organizational Process Assets Meetings Organizational Process Assets Updates
Monitoring & Project Communications

Monitor Communications Controlling Management
The process of ensuring the Inputs Tools & Techniques Outputs
information needs of the Project Management Plan

project and its stakeholders Communications Management Plan
Expert Judgement Work Performance Information
are met. Stakeholder Engagement Plan

Project Documents
Issue Log Project Management Information
Change Requests
Lessons Learned Register System
It ensures optimal information Project Communications
flow as defined in the Data Representation

Work Performance Data Communications Management Plan
Communications Stakeholder Engagement Assessment Matrix
Stakeholder Engagement Plan
Management Plan and Project Documents Updates
Interpersonal and Team Skills Issue Log
Stakeholder Engagement Plan. Enterprise Environmental Factors
Observation/Conversation Lessons Learned Register
Stakeholedr Register
Meetings
Tailoring:
the way Project Communications Management processes are applied. The various aspects that may
be considered are :
Stakeholders
Physical location
Communications technology
Language
Questions Module 10
Question – 1
An Issue Log is an Input to which processes in the Communications Management Knowledge Area?
A. Plan Communications Management C. Monitor Communications Management
B. Manage Communications Management D. Both B and C
Question – 2
You have prepared the Project Management Plan and have sent it through email. What form of
communication is being used?
A. Informal, Written C. Formal, Written
B. Informal, Verbal D. Formal, Verbal
Question – 3
You have a team of 15 people including you, the Project Manager, and recently one of the members
moved to another project team. How many communication channels are removed due to this?
A. 12
B. 14
C. 15
D. 18
Question – 4
The Project Management Plan is an Input to which process of the following processes?
A. Plan Communications Management
B. Manage Communications
C. Monitor Communications
D. All of the above
Question – 5
The number of internal and external stakeholders on a project are “I” and “E”, respectively. How many
communication channels are possible?
A. N * (N - 1) / 2
B. I * ( I - 1) / 2
C. E * (E - 1) / 2
D. (I + E) * (I + E - 1) / 2
Question – 6
The responsibility of decoding the message lies with:
A. The Sender
B. The Receiver
C. Communication Channel
D. Communication Methods
End of Module 10

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 11

Learning Objectives – Project Risk Management
What is Risk? Core PM processes of the Risk

Project Management Risks Management Knowledge Area
How is Risk & EMV calculated? Plan Risk Management
Risk Classification Identify Risks
Decision Tree Analysis Perform Qualitative Risk Analysis
Risk Reserve & Contingency Reserve Perform Quantitative Risk Analysis
Key Terminology in Project Risk Plan Risk Responses
Management Implement Risk Responses
Monitor Risks
Risk
According to the PMBOK® Guide - Sixth Edition, risk is “an uncertain event or condition that,
if it occurs, has a positive or negative effect on a project’s objectives.”
Two characteristics of a risk in project management are:
It occurs from elements of uncertainty (probability).
It might have negative or positive effects on meeting the project objectives (impact).
Risk Management includes:
Planning risk management Monitoring the risk

Identifying and analyzing the risks Implementing the risk responses
Preparing the response plan
Project Management Risk Processes

Plan Risk Management
To determine how to conduct risk management for the project at hand.
Identify Risks
To identify and document the risks that might occur.
Perform Qualitative Risk Analysis

To estimate the overall probability and impact for risks to occur and to prioritize them accordingly for
further analysis.
Perform Quantitative Risk Analysis

To analyze numerically the probability and effect of selected risks on meeting the project objectives.
Project Management Risk Processes (Continued)
Plan Risk Responses

To prepare a risk response plan in order to increase the positive impact and decrease the negative
impact of risks on the project.
Implement Risk Responses

To implement agreed-upon risk response plans.
Monitor Risks
To track identified risks, identify new risks, execute risk response plans, and evaluate the effectiveness
of the responses.
Risk & Expected Monetary Value (EMV)
EMV = Probability x Impact (in units of money)
EMV calculates the average result of positive (opportunity) and negative (threat) risks.
The EMV of opportunities are expressed as positive values, while those of threats are
negative.
EMV for a project is calculated by multiplying the value of each possible outcome by its
probability of occurrence and adding the results together.
A common use of this type of analysis is in decision tree analysis.
Risk & Expected Monetary Value (EMV) (Continued)
Example:
There is a negative risk (threat) that has a 25% probability of prohibiting the execution of the
work package ABC and if that risk occurs the impact of not having executed the package is
estimated at $10,000.
EMV = 25% * $10,000 = -$2,500.
There is also a positive risk (opportunity) that has a 10% probability of speeding up the execution
of the work package ABC and if that happens it will save the project $15,000.
EMV = 10% * $15,000 = +$1,500.
Therefore, the EMV for the work package ABC is $1,500 - $2,500 = -$1,000
Risk Classification
Risk categorization is the grouping of project risks that can support:

Risk identification by acting as a check list
Risk response planning as many of the risks in a particular category can often be addressed
with the same response strategy.
Project risks can be categorized as:

External risks i.e. an unstable legal or regulatory environment, labour issues, changing owner
priorities, or weather.
Internal (organizational) risks such as cost, time, and scope objectives that are internally
inconsistent, lack of prioritization of projects, inadequacy or interruption of funding, and
resource conflicts with other projects in the organization.
Risk Classification (Continued)
Technical risks
Such as reliance on unproven or complex technology, unrealistic performance goals, changes to
the technology used or to industry standards during the project.
Project Management risks

Such as poor allocation of time and resources, inadequate quality of the project plan, poor use of
project management disciplines.
Project Risks
Risk categories can be represented
by a Risk Breakdown Structure (RBS): Internal Risks External Risks
Funding Regulatory Risks
Project Management Weather
Decision Tree Analysis
An assessment of the data using the decision tree method to evaluate various possible outcomes.
Allows decision-makers to factor in both probability and impact for each branch of every decision under
consideration
Indicates the decision that will provide the greatest expected monetary value (EMV) when all the
uncertain implications of costs, rewards and subsequent decisions are quantified.
To use decision tree analysis in Project Risk Management, you need to:
Document a decision in a decision tree
Assign a probability of occurrence for the risk pertaining to that decision
Assign monetary value of the impact of the risk if it occurs
Compute the expected monetary value for each decision path.
Decision Tree Example
The diagram depicts the decision tree. The EMV (expected monetary value) associated with each risk
is calculated by multiplying the probability of the risk by the impact.
Market Failure
0.50 Revenue $0
Build new product: Probability of Success Build new product
cost $500,000
EMV = ($5m x 0.5) - $0.5m 0.50
Success
Revenue $ 5 m
= $2,000,000
Market Failure
0.20 Revenue $0
Retain legacy
Buy new product: Product, buy or build? Buy new product
cost $800,000
EMV = ($3m x 0.8) - $0.8m 0.80 Market Success
Revenue $ 3 m
= $1,600,000
Market Failure
0.00 Revenue $000
Retain legacy product Retain legacy
Product cost $0
EMV = ($0.5m x 1.0) - 0 1.00 Market Success
= $500,000 Revenue $500,000
Risk & Contingency Reserve

Reserve Contingency Reserve
Budgeted Cost
Contingency Reserve is:
Management Reserve
Planned Cost Established to deal with unknown risks and

accepted known risks.
Contingency Reserve
Might be in the form of additional time, money or
Project resources.
Covers risk events that are not accounted for in the
Control A/C
project baseline for duration and cost estimations.
Works Determined by the potential impact of the risk but
should include enough to implement any
Activities
contingency plans as well as a buffer for dealing
with unidentified risks.
Plan Risk Management Project Risk

Planning Management
Plan Risk Management is the
process of determining how to
conduct Risk Management for Inputs Tools & Techniques Outputs
the project at hand and
Project Charter Expert Judgement Risk Management Plan
document it in the Risk
Management Plan. Project Management Plan Data Analysis
All Components Stakeholder Analysis
Project Documents Meetings

Factors
Organizational Process
Assets
Project Risk
Identify Risks Planning
Management
Identifying risks is the Inputs Tools & Techniques Outputs
process of identifying and Project Management Plan

Requirements Management Plan Expert Judgement
documenting the risks that Cost Management Plan
Risk Register
might occur for a given Resource Management Plan
Data Gathering
Brainstorming
Scope Baseline Checklists
project. Schedule Baseline
Cost Baseline
Interviews
Project Documents
Assumption Log
Cost Estimates
Data Analysis
Duration Estimates
Assumptions and Constraints Analysis
Issue Log Risk Report
Root Cause Analysis
SWOT Analysis
Agreements Interpersonal and Team Skills

Facilitation
Procurement Documentation Project Document Updates

Prompt Lists Assumption Log
PESTLE Issue Log
Enterprise Environmental Factors Lessons Learned Register
Project Risk
Perform Qualitative Risk Planning Management
Analysis
Used to estimate the overall Project Management Plan

Expert Judgement Project Documents Updates
Assumption Log
probability for risks to occur Project Documents Issue Log
Data Gathering
and their impact and to Assumption Log
Risk Register Interviews
Risk Register
Risk Report
prioritize them accordingly
Data Analysis
for further analysis. Enterprise Environmental Factors
Risk Data Quality Assessment
Risk Probability & Impact Assessment
Assessment of other risk parameters
Facilitation
Risk Categorization
Data Representation
Probability and Impact Chart
Hierarchical Charts
Meetings
Project Risk
Perform Quantitative Risk Planning Management
Analysis
The process used to analyze
Project Management Plan Expert Judgement
numerically the effect of Risk Management Plan
Scope Baseline
prioritized risks on overall Schedule Baseline
Risk Report
Cost Baseline
project objectives. Project Documents Data Gathering
Assumption Log Interviews
Basis of Estimates
Cost Estimates Interpersonal and Team Skills
Cost Forecasts Facilitation
Schedule Forecasts
Data Analysis
Duration Estimates Simulations
Milestone List Sensitivity Analysis
Resource Requirements Decision Tree Analysis
Risk Register Influence Diagram
Risk Report
Enterprise Environmental Factors Representations of Uncertainty

Probability Distribution (T/B)
Project Risk
Planning
Plan Risk Responses Management

The process used to prepare a Expert Judgement Change Requests
risk response plan in order to Resource Management Plan Data Gathering
Risk Management Plan Project Management Plan Updates
increase the positive impact Cost Baseline
Interviews
and/or decrease the negative Interpersonal and Team Skills
Cost Management Plan
Project Documents Facilitation
impact of risks on the project. Lessons Learned Register
Project Schedule Procurement Management Plan
Project Team Assignments
Strategies for Threats Scope Baseline
Escalate, Avoid, Transfer, Mitigate, Accept
Resource Calendars Schedule Baseline
Risk Register Strategies for Opportunities Cost Baseline
Risk Report Escalate, Exploit, Share, Enhance, Accept
Contingent Response Strategies
Strategies for Overall Project Risk Assumption Log
Enterprise Environmental Factors Avoid/Exploit, Mitigate/Enhance,
Transfer/Share, Accept Cost Forecasts
Data Analysis Project Schedule
Organizational Process Assets Alternatives Analysis Project Team Assignments
Cost-benefit Analysis Risk Register
Decision Making Risk Report
Multi-criteria Decision Analysis
Project Risk
Plan Risk Responses Planning Management
Strategies for Threats Strategies for Opportunities

Avoid Exploit
Transfer Share
Mitigate Enhance
Escalate
Accept
Implement Risk Responses Project Risk

Executing Management
The process used for
implementing agreed-upon
risk response plans.
It ensures that agreed-up Project Management Plan

Expert Judgment Change Requests
risk responses are executed
as planned in order to Lessons Learned Register Interpersonal and Team Skills Issue Log
Risk Register Influencing Lessons Learned Register
address over project risk Risk Report Project Team Assignments
Risk Register
exposure, minimize Organizational Process Assets
Project Management Information Risk Report
System
individual projects threats
and maximize individual
project opportunities.
Monitor Risks Monitoring & Project Risk

The process used for tracking
identified risks, identifying
new risks, and evaluating the
effectiveness of executing Project Management Plan
Data Analysis Work Performance Information
Technical Performance Analysis
risk responses throughout Risk Management Plan
Reserve Analysis Change Requests
the lifecycle of the project. Project Documents Project Management Plan Updates
Issue Log Any Component
Lessons Learned Register Audits
Risk Register Project Documents Updates
Risk Report Assumption Log
Issue Log
Work Performance Data Meetings Lessons Learned Register
Risk Register
Work Performance Reports Risk Report
Tailoring:
the way Project Risk Management processes are applied. The various aspects that may be considered
are :
Project size
Project complexity
Project importance
Development approach
Questions Module 11
Question – 1
The Risk Register is the Output of which process?
B. Perform Qualitative Risk Analysis
C. Identify Risks
D. Plan Risk Responses
Question – 2
A negative risk has a 20% probability of prohibiting the execution of the work package with an impact
of $20,000. The same work package has a positive risk with a 10% probability and will save the
project $25,000. What is the EMV value for the work package?
A. - $1,500 C. $2,000
B. $1,500 D. - $2,000
Question – 3
The Risk Register has many fields such as name, response plan, category, impact, and probability.
However, the initial categorization of risk happens in:
B. Plan Risk Responses
C. Perform Qualitative Risk Analysis
D. Identify Risks
Question – 4
Both the Schedule Management Plan and the Cost Management Plan are Inputs to which two
Processes?
A. Perform Qualitative Risk Analysis
B. Plan Risk Management
C. Identify Risks
D. Both B and C
Question – 5
Which one of the following processes give a numeric value weight in monetary terms?
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Perform Quantitative Risk Analysis
Question – 6
You are planning to take a healthcare insurance plan for your family. What kind of risk response
strategy are you adopting?
A. Accept
B. Transfer
C. Mitigate
D. Avoid
End of Module 11

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 12

Learning Objectives – Project Procurement Management
What is a Contract?
Different Types of Contracts
Advantages and Disadvantages of contract types
Key Terminology in Project Procurement Management
Processes of the Project Procurement Management Knowledge Area
Plan Procurement Management
Conduct Procurements
Control Procurements
Contract
A legally enforceable agreement between two or more parties. Contracts contain terms
and conditions that set the rights and obligations of the contracting parties.
The aim of a procurement contract is to obtain the services or products as agreed in the
contract to the satisfaction of all parties to the contract.
Procurement Management helps ensure that the products and components not made by
a company but purchased from outside the project will not negatively impact on the
quality of the project’s final product.
The procurement manager or office (contract manager) is normally responsible for creating
and managing the procurement contract.
Contract Types
Fixed Price (FP or FFP)

"Firm fixed price" also called "Lump Sum“. The simplest type of contract. The buyer specifies the work
required and the supplier quotes a price. The seller assumes almost all of the risks of this contract.
Time and Materials (T&M)

Simple billing at pre-negotiated rates for labor and materials on a project. Rates normally include a
certain percentage mark-up for overheads or profit. In this arrangement the buyer carries most of the
risk.
Cost Reimbursable (CR)

In this type of contract the buyer agrees to reimburse the seller’s actual costs. Added to that is a fee
that typically represents the seller’s profit. In this type of contract the buyer carries most of the risk.
Advantages & Disadvantages – Fixed Price Contract
Advantages of fixed price contracts:

Less work for the buyer to manage
The seller has a strong incentive to control costs
Companies normally have experience with this type of contract
The buyer knows the total price at project start
Disadvantages of fixed price contracts include:

The seller may underprice the work and try to make up profits on change orders
The seller may not complete some of the contract statement of work once the contract
becomes unprofitable
More work for the buyer to write the contract statement of work
Can be more expensive than cost reimbursable contracts
The seller will have to provide for risk in the price quoted
Advantages & Disadvantages – Time & Materials Contract
Advantages of time & materials contracts include:

Quick to create
Good choice when hiring "bodies" or people to augment staffing
Disadvantages of time & materials contracts include:

Seller has no incentive to control cost
Requires monitoring of daily output
More suitable for small projects only
Advantages & Disadvantages – Cost Reimbursable Contract
Advantages of cost reimbursable contracts include:

Simpler contract statement of work
Usually requires less work to define the scope than fixed price
Generally lower cost than fixed price because the seller does not have to “add on” for risk
Disadvantages of cost reimbursable contracts include:

Require auditing of the seller's invoices
Require more work for the buyer to manage
Seller has only a moderate incentive to control costs
Total price is unknown
Plan Procurement Management Project Procurement

Planning Management
Outline how procurement Inputs Tools & Techniques Outputs

management will be Project Charter Expert Judgment Procurement Management Plan
conducted on the project. Business Documents

Business Case
Data Gathering Procurement Strategy
Market Research
Benefits Management Plan
Data Analysis
Develop make/buy decision Project Management Plan
Scope Management Plan Make-or-Buy Analysis
Bid Documents
making and seller selection Resource Management Plan
Source Selection Analysis Procurement Statement of Work
Scope Baseline
Processes.
Project Documents Meetings Source Selection Criteria
Milestone List
Project Team Assignments Make-or-Buy Decisions
Requirement Documentation
Independent Cost Estimates
Requirement Traceability Matrix
Risk Register Change Requests
Enterprise Environmental Factors Project Documents Updates

Updates
Project Procurement
Executing
Conduct Procurements Management

Conduct Procurements is the
Project Management Plan Selected Sellers
process of obtaining Scope Management Plan
Requirements Management Plan
responses from sellers, Communications Management Plan
Expert Judgement Agreements
selecting sellers, and awarding Procurement Management Plan

Configuration Management Plan Change Requests
contract(s) to the selected Cost Baseline

Project Documents Project Management Plan Updates
seller(s). Lessons Learned Register Requirements Management Plan
Project Schedule Advertising Quality Management Plan
Requirements Documentations Communications Management Plan
Risk Register Risk Management Plan
Stakeholder Register Procurement Management Plan
Scope Baseline
Schedule Baseline
Cost Baseline
Procurement Documentation Bidder Conferences Project Documents Updates
Seller Proposals Data Analysis Requirements Documentation
Proposal Evaluation Requirement Traceability Matrix
Resource Calendars
Enterprise Environmental Factors Interpersonal and Team Skills Risk Register
Negotiation Stakeholder Register
Organizational Process Assets Organizational Process Assets Updates
Monitoring & Project Procurement

Control Procurements Controlling Management

The process of managing
procurement relationships, Requirements Management Plan
Closed Procurements
Expert Judgment
monitoring contract Procurement Management Plan
Change Management Plan Work Performance Information
performance and making Schedule Baseline
Project Documents
changes & corrections as Assumption Log
Claims Administration Procurement Documentation Updates
appropriate and closing out Milestone List Change Requests
Requirements Documentation Data Analysis
contracts. Requirements Traceability Matrix Performance Reviews Project Management Plan Updates
Risk Register Earned Value Analysis Risk Management Plan
Stakeholder Register Trend Analysis Procurement Management Plan
Schedule Baseline
Agreements Cost Baseline
Procurement Documentation Inspection Project Documents Updates

Approved Change Requests Audits Resource Requirements
Risk Register
Enterprise Environmental Factors Organizational Process Assets Updates

Tailoring:
the way Project Procurement Management processes are applied. The various aspects that may be
considered are :
Complexity of procurement
Physical location
Governance and regulatory environment
Availability of contractors
Questions Module 12
Question – 1
Which of the following contracts is not of fixed type?
A. Firm Fixed Price C. Fixed Price with Economic Price Adjustment
B. Fixed Price Incentive Fee D. Fixed Price with Fixed Fee
Question – 2
As project manager you found that you need to automate certain test cases and perform analysis with
your team to find out whether to build or buy certain software. Which Tools and Techniques from
which Process are you working on?
A. Checking on the Procurement Documents in Plan Procurement
B. Make or buy analysis in Plan Procurement
C. Build or buy analysis in Plan Procurement
D. Checking on the Source Selection Criteria
Question – 3
Which type of contract poses minimal risk to the seller?
A. T & M (Time & Material)
B. FFP (Firm Fixed Price)
C. CPIF (Cost Plus Incentive Fee)
D. CP – EPA (Cost Plus Economic Price Adjustment)
Question – 4
Which process area falls into the Monitoring and Controlling Process Group during Procurement
Management?
A. Plan Procurement Management
B. Control Procurements
C. Administer Procurements
D. Conduct Procurements
Question – 5
You have completed your project and delivered the project to the buyer. The buyer has accepted the
deliverables, but is not happy with the result. What is the correct statement about the contract?
A. Contract is incomplete
B. Lack of terms and conditions in the contract
C. Contract is complete and can be closed
D. Contract is to be renewed
Question – 6
A Procurement Audit happens in which Process?
A. Plan Procurement Management
B. Conduct Procurements
C. Control Procurements
D. Administer Procurements
End of Module 12

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 13

Learning Objectives – Project Stakeholder Management
Who is a Stakeholder?
Various Analytical Techniques for Stakeholder Analysis
Managing stakeholder engagement and relationship
Key Terminology in Project Stakeholder Management
Processes of the Project Stakeholder Management Knowledge Area

Identify Stakeholders
Plan Stakeholder Engagement
Manage Stakeholder Engagement
Monitor Stakeholder Engagement
Stakeholder and Stakeholder Management
Stakeholder:
Anyone who can impact the project or can be impacted by the project in a positive or negative way.
Some stakeholders may have a limited ability to influence the project, whereas others may be a
significant influence on the Project.
Stakeholders can be people, groups or organizations.
Stakeholder Management:
Includes processes required to identify various stakeholders, analyse expectations and to develop
appropriate management strategies for effectively engaging stakeholders in project decisions and
execution.
Includes communication with stakeholders to understand needs and expectations, managing
conflicting interests and fostering appropriate stakeholder engagement.
Project Stakeholder
Initiating
Identify Stakeholders Management
The process of identifying the people, Inputs Tools & Techniques Outputs
groups or organizations that could be Project Charter Expert Judgment Stakeholder Register
impacted by a decision, activity, or Business Documents Data Gathering
Business Case Questionnaire and Surveys Change Requests
outcome of the project; analyzing and Benefits Realization Plan Brainstorming
documenting relevant information Project Management Plan
Data Analysis
Communications Management Plan Project Management Plan Updates
regarding their interests, involvement, Stakeholder Engagement Plan
Stakeholder Analysis Requirements Management Plan
Communications Management Plan
interdependencies, influence and Project Documents
Data Representation Risk Management Plan
Change Log
potential impact on project success. Issue Log
Stakeholder Stakeholder Engagement Plan
Mapping/Representation
Meetings
Agreements
Assumption Log
Enterprise Environmental Factors Issue Log
Risk Register
Stakeholder Analysis
A technique of systematically gathering and analyzing qualitative and quantitative information to

determine whose interest should be taken into account in 3 steps.
Step – 1: Identify all the stakeholders with their roles, interests, expectations, influence etc.
The later part is typically done by interviewing the identified stakeholders.
Step – 2: Identify the potential impact each stakeholder could generate and classify them so
as to define an appropriate strategy.
Step – 3: Assess how key stakeholders are likely to react or respond in various situations, in
order to plan how to influence them to enhance their support and mitigate potential negative
impacts.
Stakeholder Analysis Grids
Various Grids can be defined during Stakeholder Analysis. High

• Power/Interest Grid: Level of authority (Power)
and Level of concern (Interest) Keep Manage
• Power/Influence Grid: Level of authority (Power) Satisfied Closely
and Level of active involvement (Influence)
Power
• Influence/Impact Grid: Level of active involvement
(Influence) and their ability to affect changes to a
Keep
project’s planning or execution (Impact) Monitor
Informed
• Salience Model: Describes classes of stakeholders
based on their power (ability to impose their will), Low
urgency (need for immediate attention) and Low Interest High
legitimacy (appropriate involvement)
Stakeholder Register:
The primary output of the Identify Stakeholder Process
Contains all information related to the stakeholders
It can contain:
Identification Information:
Name, Organizational Position, Location, Role in the Project and Contact Information
Assessment Information:
Major requirements, main expectations, potential influence on the project etc.
Stakeholder Classification:
Can be internal or external, can be a supporter, resistor or neutral.
Project Stakeholder
Plan Stakeholder Engagement Planning Management
The process of developing
Project Charter Expert Judgment
appropriate management Project Management Plan
strategies to effectively engage Resource Management Plan
Data Gathering Stakeholder Engagement Plan
Communications Management Plan
stakeholders throughout the Risk Management Plan
Benchmarking
project life cycle, based on the

Project Documents
analysis of their needs, interests Assumption Log
Data Analysis
Change Log
and potential impact on the Issue Log
Assumptions and
Constraints Analysis
project success. Project Schedule
Risk Register
Root Cause Analysis
Provides a clear and actionable Agreements

Decision Making
Prioritization/Ranking
plan to interact with the Data Representation
stakeholders to support interest in Enterprise Environmental Factors
Stakeholder Engagement
Assessment Matrix
the project. Mind Mapping
Analytical Techniques
Analytical Techniques:
It is used to know the current engagement level of stakeholders as compared to the planned
engagement.
Engagement levels can be:

Unaware: Unaware of project and potential impacts
Resistant: Aware of project and potential impacts, but resistant to change
Neutral: Aware of project, but neither supports or is resistant
Supportive: Aware of project and potential impacts and supportive of change
Leading: Aware of project and potential impact and actively engaged in ensuring project success
Stakeholders Engagement Assessment Matrix
The current and desired engagement levels of the stakeholders can be put into a matrix
known as stakeholders engagement assessment matrix.
“C” – Indicates the current engagement level of the stakeholder.
“D” - Indicates the desired engagement level of the stakeholder. The project team
identifies the desired engagement level.
Stakeholder Unaware Resistant Neutral Supportive Leading

Michael C D
John C D
Sarah C D
Ana C, D
Stakeholders Engagement Assessment Matrix
"A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition,
Project Management Institute, Inc., 2017, Figure 13-6, Page 522."
Stakeholders Engagement Plan

Stakeholder Engagement Plan identifies the management strategies to effectively engage
stakeholders. It can be formal or informal, detailed or broadly documented.
In addition to data from stakeholder register, Stakeholder Engagement Plan provides:
Desired and current engagement levels
Scope and impact of change to stakeholders
Identified relationships and potential overlap between stakeholders
Stakeholder communications requirement (current phase for multi-phase project)
Information to be distributed – includes format, content, language, and level of detail
Reason for distribution of that information and expected impact on engagement
Primary metrics for engagement such as time frame and frequency of distribution;
stakeholder participation, positive contribution towards project’s objectives
Method for updating and refining the plan as the project progresses
Stakeholder engagement plan is a key plan as it is followed by the project manager to
maintain stakeholder relationships.
Project Stakeholder
Manage Stakeholder Engagement Executing Management
The process of communicating and

working with stakeholders to meet
their needs and expectations, address Communications Management Plan
issues as they occur, and foster Risk Management Plan Expert Judgment Change Requests
appropriate stakeholder engagement in Change Management Plan
project activities throughout the Project Documents Project Management Plan

Change Log Updates
project life cycle. Issue Log Communication Skills
Feedback
Communications Management
Lessons Learned Register Plan
Stakeholder Register Stakeholder Engagement Plan
Allows the project manager to Interpersonal and Team Skills Project Documents Updates
Conflict Management Change Log
increase support and minimize Enterprise Environmental Factors Cultural Awareness
Issue Log
Negotiation
resistance increasing the chances of Observation/Conversation
Political Awareness
project success. Organizational Process Assets Ground Rules
Meetings
Managing Stakeholders Engagement and Relationship

Stakeholders can not be managed. Only stakeholder expectations can be managed.
Stakeholder engagement is a continuous activity because stakeholders and their attitudes
change as the project progresses.
Stakeholder engagement is often a direct and indirect communication between the
stakeholders and the project manager/team. It is a two-way relationship and process.
Stakeholder register, Stakeholder Engagement Plan and communication management
plan are continuously referenced and evaluated. They are also updated as new
stakeholders are identified or communication requirements of the stakeholders’ change.
Beyond communication stakeholder engagement involves:
Negotiation and facilitating consensus towards project goals and objectives
Commitment to resources
Influencing to support the project & ensuring ongoing support throughput the project
Project manager uses various interpersonal skills and management skills to engage the
project stakeholders.
Monitoring & Project Stakeholder

Monitor Stakeholder Engagement Controlling Management
The process of monitoring project Inputs Tools & Techniques Outputs

stakeholder relationships and tailoring Project Management Plan Data Analysis
strategies and plans for engaging Communications Management Plan
Root Cause Analysis
Work Performance Information
Stakeholder Analysis
stakeholders. Stakeholder Engagement Plan
Project Documents Decision Making
Issue Log Multi-criteria Decision Analysis Change Requests
Voting
Stakeholder engagement activities are Lessons Learned Register
Project Communications Data Representation
included in the Stakeholder Risk Register Stakeholder Engagement Assessment Project Management Plan Updates
Stakeholder Register Matrix Resource Management Plan
Engagement Plan and are Communication Skills Communications Management Plan
continuously monitored. Work Performance Data Feedback
Presentation
Enterprise Environmental Factors Interpersonal and Team Skills

Active Listening Project Documents Updates
Cultural Awareness Issue Log
Leadership Lessons Learned Register
Organizational Process Assets Networking Project Communications
Political Awareness
Risk Register
Meetings Stakeholder Register
Tailoring:
the way Project Stakeholder Management processes are applied. The various aspects that may be
considered are :
Stakeholder diversity
Complexity of stakeholder relationships
Communication technology
Questions Module 13
Question – 1
Updates to Issue Log is an Output of which Processes of Stakeholder Management?
A. Identify Stakeholders
B. Manage Stakeholder Engagement
C. Monitor Stakeholder Engagement
D. All of the above
Question – 2
There are five levels of stakeholder engagement. What are they?
A. Unaware, Resistant, Neutral, Supportive, Influencing
B. Aware, Resistant, Neutral, Supportive, Leading
C. Unaware, Resistant, Neutral, Supportive, Leading
D. Aware, Resistant, Interested, Supportive, Leading
Question – 3
A Salience Model is used as one of the classification models for
Stakeholder Management. Which combination does it have?
A. Power, Influence
B. Power, Interest
C. Influence, Impact
D. Power, Legitimacy
Question – 4
Which one of the following is not an engagement level of the stakeholder,
performed with the Analytical techniques tool?
A. Resistant
B. Leading
C. Directing
D. Supportive
Question – 5
Interpersonal and Team Skills, and Communication Skills are used in?
A. Plan Stakeholder Engagement
B. Manage Stakeholder Engagement
C. Monitor Stakeholder Engagement
D. Both B and C
Question – 6
Data Analysis is used in all of the Processes of the Stakeholder Management
Knowledge Area, other than?
A. Identify Stakeholders
B. Plan Stakeholder Engagement
C. Manage Stakeholder Engagement
D. Monitor Stakeholder Engagement
End of Module 13

Course Book
Table of Contents
Module 1 Module 6
An introduction to PMP® Certification Project Scuedule Management
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 14

Learning Objectives - Ethics & Professional Conduct
PMI’s Code of Ethics and Professional Conduct

Vision and purpose of the Code
To whom does the Code apply?
Structure of the Code
Aspirational and Mandatory Conduct
Responsibility and Ethics Complaints
Description of Respect, Fairness and Honesty
PMI’s Code of Ethics and Professional Conduct
Project professionals interact with many different types of people, and often are faced
with various ethical dilemmas throughout their careers:
Interpersonal project team conflicts
Challenges with project sponsors
Vendor negotiations
Cultural differences
Government regulations
Deciding what is ethical can be challenging, and the answers may differ depending on your organization
and culture.
To provide some guidance, PMI volunteers helped to develop the PMI Code of Ethics and Professional
Conduct. All PMI members and credential holders must sign the code, agreeing to adhere to a high
standard of ethical behavior.
Vision and purpose of the Code
The following excerpt from the Code explains its vision and purpose:
As practitioners of project management, we are committed to doing what is right and honorable. We
set high standards for ourselves and we aspire to meet these standards in all aspects of our lives - at
work, at home, and in service to our profession.
This Code of Ethics and Professional Conduct describes the expectations that we have of ourselves
and our fellow practitioners in the global project management community. It articulates the ideals to
which we aspire as well as the behaviors that are mandatory in our professional and volunteer roles.
The purpose of this Code is to instill confidence in the project management profession and to help an
individual become a better practitioner. We do this by establishing a profession-wide understanding
of appropriate behavior. We believe that the credibility and reputation of the project management
profession is shaped by the collective conduct of individual practitioners.
To whom does the Code apply?
The Code of Ethics and Professional Conduct applies to:
All PMI members
Individuals who are not members of PMI but meet one or more of the following criteria:
Non-members who hold a PMI certification

Non-members who apply to commence a PMI certification process
Non-members who serve PMI in a volunteer capacity
Structure of the Code
The Code of Ethics and Professional Conduct is divided into sections that contain standards of conduct
which are aligned with the four values that were identified as most important to the project
management community. Finally, a glossary can be found at the end of the standard. The glossary defines
words and phrases used in the Code.
The values that the global project management community defined as most important were:
Responsibility
Respect
Fairness
Honesty
This Code affirms these four values as its foundation.

Aspirational and Mandatory Conduct
Each section of the Code of Ethics and Professional Conduct includes both aspirational standards and
mandatory standards.
The aspirational standards describe the conduct that we strive to uphold as practitioners.
Although adherence to the aspirational standards is not easily measured, conducting ourselves in
accordance with these is an expectation that we have of ourselves as professionals—it is not optional.
The mandatory standards establish firm requirements, and in some cases, limit or prohibit
practitioner behavior. Practitioners who do not conduct themselves in accordance with these
standards will be subject to disciplinary procedures before the PMI’s Ethics Review Committee.
Responsibility - Aspirational
Aspirational Standards
As practitioners in the global project management community:

We make decisions and take actions based on the best interests of society, public safety, and the
environment.
We accept only those assignments that are consistent with our background, experience, skills,
and qualifications.
We fulfil the commitments that we undertake – we do what we say we will do.
When we make errors or omissions, we take ownership and make corrections promptly. When
we discover errors or omissions caused by others, we communicate them to the appropriate
body as soon they are discovered.
Responsibility - Aspirational
Aspirational Standards
We accept accountability for any issues resulting from our errors or omissions and any
resulting consequences.
We protect proprietary or confidential information that has been entrusted to us.
We uphold this Code and hold each other accountable to it.
Responsibility - Mandatory
Mandatory Standards
As practitioners in the global project management community, we require the following of ourselves and
our fellow practitioners:
Regulations and Legal Requirements:

We inform ourselves and uphold the policies, rules, regulations and laws that govern our work, professional, and
volunteer activities.
We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the
conduct.
Ethics Complaints:
We bring violations of this Code to the attention of the appropriate body for resolution.
We only file ethics complaints when they are substantiated by facts.
We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns.
Description of Respect
Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us.
Resources entrusted to us may include people, money, reputation, the safety of others, and natural or
environmental resources. An environment of respect engenders trust, confidence, and performance
excellence by fostering mutual cooperation - an environment where diverse perspectives and views are
encouraged and valued.
Respect: Aspirational Standards

We inform ourselves about the norms and customs of others and avoid engaging in behaviors they
might consider disrespectful.
We listen to others’ points of view, seeking to understand them.
We approach directly those persons with whom we have a conflict or disagreement.
We conduct ourselves in a professional manner, even when it is not reciprocated.
Description of Respect
Respect: Mandatory Standards
As practitioners in the global project management community, we require the following

of ourselves and our fellow practitioners:
We negotiate in good faith.

We do not exercise the power of our expertise or position to influence the decisions or
actions of others in order to benefit personally at their expense.
We do not act in an abusive manner toward others.
We respect the property rights of others.
Description of Fairness
Fairness is our duty to make decisions and act impartially and objectively. Our conduct must
be free from competing self interest, prejudice, and favoritism.
Fairness: Aspirational Standards

We demonstrate transparency in our decision-making process.
We constantly re-examine our impartiality and objectivity, taking corrective action as appropriate.
We provide equal access to information to those who are authorized to have that information.
We make opportunities equally available to qualified candidates.
Description of Fairness
Fairness: Mandatory Standards

As practitioners in the global project management community, we require the following of
ourselves and our fellow practitioners:
In Conflict of Interest Situations

We proactively and fully disclose any real or potential conflicts of interest to the appropriate
stakeholders.
When we realize that we have a real or potential conflict of interest, we refrain from engaging in
the decision-making process or otherwise attempting to influence outcomes, unless or until: we
have made full disclosure to the affected stakeholders; we have an approved mitigation plan; and
we have obtained the consent of the stakeholders to proceed.
Description of Fairness (Continued)
Favouritism and Discrimination.

We do not hire or fire, reward or punish, or award or deny contracts based on personal
considerations, including but not limited to, favoritism, nepotism, or bribery.
We do not discriminate against others based on, but not limited to, gender, race, age, religion,
disability, nationality, or sexual orientation.
We apply the rules of the organization (employer, Project Management Institute, or other group)
without favoritism or prejudice.
Description of Honesty
Honesty is our duty to understand the truth and act in a truthful manner both in
our communications and in our conduct.
Honesty: Aspirational Standards

We earnestly seek to understand the truth.
We are truthful in our communications and in our conduct.
We provide accurate information in a timely manner.
We make commitments and promises, implied or explicit, in good faith.
We strive to create an environment in which others feel safe to tell the truth.
Description of Honesty
Honesty: Mandatory Standards
As practitioners in the global project management community, we require the following

of ourselves and our fellow practitioners:
We do not engage in or condone behavior that is designed to deceive others, including but not
limited to, making misleading or false statements, stating half-truths, providing information out of
context or withholding information that, if known, would render our statements as misleading or
incomplete.
We do not engage in dishonest behavior with the intention of personal gain or at the expense of
another.
End of Module 14

Course Book
Table of Contents
Module 1 Module 6
Course
Module 7
Module 8
Module 9
Module 10
Table of Contents
Module 11
Module 12
Module 13
Module 14
Module 15
MODULE 15
PMP® Exam Tips and Tricks

PMP® - Example Questions
An accepted deadline for a project approaches. However, the project manager realizes that only 75%
of the work has been completed. The project manager then issues a change request.
What should the change request authorize?
Additional resources using the contingency fund

Escalation approval to use contingency funding
Team overtime to meet schedule
Corrective action based on causes
The project manager is also responsible to encourage continuous process improvement during the
life of the project. Which of the following is a valid tool or technique to assist the project manager to
assure the identification and success of the process improvements?
Change control system
Process Analysis
Benchmarking
Configuration management system
The project manager meets with the project team to review lessons learned from previous projects.
In what activity is the team involved?
Performance Management
Scope Identification
Risk Identification
Project team status meeting
EV = 240,000, AC = 260,000, PV = 250,000, SPI = 0.96, BAC = 700,000.
How much is your new ETC assuming that current variances are typical?
PV 250,000
EV 240,000
AC 260,000
BAC 700,000
EV 240,000 ETC = ?
CPI=EV/AC = 240000/260000 = 0.92
ETC = (BAC - EV) / CPI = (700000 - 240000) / 0.92 = 500000

PMP® - Tricky Test Questions
Your team size will go from 12 to 11 people.

How many fewer communication channels are there on your project?
Number of Communication Channels = n ( n - 1 ) / 2
For 12 members: 12 (12 - 1) / 2 = 66
For 11 members: 11 (11 - 1) / 2 = 55
By reducing the number of people by 1 you will reduce the number of communications channels
by 11.
PMP® - Tricky Test Questions
EV = 105 and SPI = 0.9375.
How much is the Schedule Variance (SV)?
SV = EV - PV = 105 - ?
SPI = EV / PV
PV = EV / SPI = 105/0.9375 = 112
SV = EV - PV = 105 - 112 = -7
Suggestions
The following are some suggestions on how to make the exam preparation process easier and
more enjoyable:
Take practice exams and look at what you got right, what you got wrong, and what you've
learned since your previous attempt.
Avail of or use more simulation exams from the Computer Based Training (CBT) courses
available, and always choose the best resource. Make sure you are using resources based on
the PMBOK® Guide - Sixth Edition.
Homework
The high-level ordered lists are:

The 5 Process Groups The 10 Knowledge Areas The 47 component Processes
Suggestions on key terms to know
The following are some key terms you need to know:

Constraints Work Breakdown Structure (WBS)
Assumptions Decomposition
Historical information (always an Input) Expert Judgment
Organizational policies (always an Input) Project Charter
Organizational procedures (almost always a Technique) Scope Statement
Corrective actions Statement of Work (SOW)
Change Requests
Also important to know and understand where each process is in relation to the Process Group
it belongs to and the Knowledge Area it is in. Ref Page 25 in the PMBOK® Guide - Sixth Edition.
Suggestions
Be on the lookout for how the Processes for each of the following terms flow,
how the Output of one process becomes the Input for another:
Assumptions and constraints.

Change requests and corrective action.
The Management Plans (as an Output of Planning and an Input to
both Execution and Control).
Exam Tips
What the exam DOES test

Your knowledge of the PMI®'s processes and philosophy
Your understanding of the many terms that are used to describe the processes
Your ability to apply those processes in various contexts
Your understanding of professional responsibility as it applies to the project management
discipline
Your ability to apply key formulas to scheduling, costing, estimating, and other problems.
What the exam DOES NOT test

Your project management experience Your knowledge of software tools
Your common sense What you've learned in management school
Your knowledge of industry practices Your intelligence
End of Module 15
PMP® Exam Tips and Tricks & Quiz Answers
Thank You and Good Luck !!!
www.knowledgehut.com | support@knowledgehut.com
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Project Management Professional (PMP)®

Introduction to PMP® Certification Course

Learning Objectives for this Module are:

What is the PMI® and the PMBOK® Guide?

PMI: Project Management Institute

Evolution of the PMI® and the PMBOK® Guide:

1969 - Project Management Institute was founded.

1987 - PMBOK® Guide was approved and published

Certifications offered by the PMI:

Certified Associate in Project Management (CAPM)®

Asia Pacific China

Prerequisites for the PMP® Exam

Application for exam with payment can be submitted online.

Format of the PMBOK® Guide

It presents the following in a self-consistent form:

Develop Project Charter

Defining the Project Scope

The processes in this group are:

▪ Develop Project Management Plan ▪ Determine Budget

Monitoring and Controlling: The processes here are:

Formally close down the project or phase

The process is:

 Close Project or Phase

The 10 Knowledge Areas are:

The 10 Knowledge Areas (continued):

How is the PMP® exam structured?

There are 200 multiple choice questions to be answered in 4 hours

About the Course

Introduction to the PMP® Certification Course Risk Management

Introduction to the PMP® Certification Course

PMP is a registered mark of the Project Management Institute, Inc. 25

PMP is a registered mark of the Project Management Institute, Inc.

PMP is a registered mark of the Project Management Institute, Inc. 28

Project Management Framework

In this module, we will cover:

In principal, projects are non-repetitive.

Accomplished through the appropriate application and

The primary challenge of Project Management is to achieve all of the project

It aims to maximize profits.

It is concerned with managing processes that transform inputs into outputs.

Its efficiency and effectiveness can be monitored by the application or implementation

In contrast with projects, it is usually repetitive.

Program Management is the coordinated management of a specific program to achieve its

Program focus is on the realization of benefits through projects.

Portfolio focus is on aggregate investment performance and benefit realization.

Portfolio Management focuses on resource prioritization to serve the organization’s strategy.

Project Management Office (PMO)

The PMO is an organization structure that is responsible for providing centralized

Typical functions of the PMO include:

Project Management Office (PMO) - Types

Portfolio, Program, Project – A High Level View

Portfolios can have sub-portfolios, projects or

parent-child relationship with its projects

Vision, Mission, Goals

Strategy, Objective and Tactic

Overall 3 types of organization

Organizational Strategy (continued)

Project’s Link with Organizational Strategy

Top of the triangle – “vision”, “mission” and

Strategic Alignment of Projects

Executive Strategic Strategic Governance

Project and Program Program

Cross Organization Project Management Relationship – Aligned towards Strategy