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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Integration (3) (3C)

Project Plan Development Taking the results of other planning processes and putting them into a consistent coherent document Inputs: 1. Other planning outputs 2. Historical info 3. Organizational policies 4. Constraints 5. Assumptions Tools: 1. Project planning methodology 2. Stakeholder skills & knowledge 3. Project Management info systems 4. Earned value management Outputs: 1. Project Plan 2. Supporting Detail Notes: The Project Plan should include the Project Charter, Scope Statement, WBS, Budget, Schedule, Risks, and other company documents.

Project Plan Execution Carrying out the Project Plan by performing the activities included therein. Inputs: 1. Project plan 2. Supporting detail 3. Organizational policies 4. Preventive action 5. Corrective action Tools: 1. General management skills 2. Product skills and knowledge 3. Work authorization system 4. Status review meetings 5. Project Management info systems 6. Organizational procedures Outputs: 1. Work results 2. Change requests Notes: PM’s role is to integrate all pieces of a project into a cohesive whole. It is senior managements responsibility to define the project and protect it from changes.

Integrated Change Control Coordination of changes across the entire project. Inputs: 1. Project plan 2. Performance reports 3. Change requests Tools: 1. Change control system 2. Configuration management 3. Performance measurement 4. Additional planning 5. Project Management info Systems Outputs: 1. Project plan updates 2. Corrective action 3. Lessons learned Notes: PM must be concerned with the following for overall change control: 1. Influencing the factors that affect change 2. Ensuring that change is beneficial 3. Determining that change has occurred 4. Managing changes as they occur

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Scope (5) (3C/2F)

Initiation Committing the organization to begin the next phase of the project Inputs: 1. Product description 2. Strategic plan 3. Project selection criteria 4. Historical information Tools: 1. Project selection methods 2. Expert judgment Outputs: 1. Project charter 2. PM identified and assigned 3. Constraints 4. Assumptions Notes: PM should be identified in this phase. Project Manager selection is considered an output of this phase. High-level planning and feasibility studies are also conducted during initiation.

Scope Planning Developing a written scope statement as the basis for future project decisions. Inputs: 1 Product description 2. Project charter 3. Constraints 4. Assumptions Tools: 1. Product Analysis 2. Benefit / Cost analysis 3. Alternatives identification 4. Expert judgment Outputs: 1. Scope statement 2. Supporting details 3. Scope Management plan Notes: Scope statement should include: 1. Project justification 2. Project product 3. Project deliverables 4. Project objectives Scope Definition Sub-dividing the major project deliverables into smaller, more manageable, components. Inputs: 1. Scope statement 2. Constraints 3. Assumptions 4. Other planning outputs 5.Historical information Tools: 1. WBS template 2. Decomposition Outputs: 1. WBS 2. Scope statement update Notes: WBS is used as a basis for many planning activities.

Scope Verification Formalizing acceptance of the project scope. Inputs: 1. Work results 2. Product documentation 3. WBS 4. Scope statement 5. Project plan Tools: 1. Inspection Outputs: 1. Formal acceptance Notes: Scope verification deals with the acceptance of the work, not the correctness of the work. Quality Control deals with the correctness of the work.

Scope Change Control Controlling changes to the project scope. Inputs: 1. WBS 2. Performance reports 3. Change requests 4. Scope management plan Tools: 1. Scope change control system 2. Performance measurement 3. Additional planning Outputs: 1. Scope changes 2. Corrective action 3. Lessons learned 4. Adjusted baseline Notes: Corrective Action- anything done to bring expected future project performance in line with the project plan.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Time (5) (4C/1F)

Activity Definition Identifying the specific activities that must be performed to produce the various project deliverables. Inputs: 1. WBS 2. Scope statement 3. Historical information 4. Constraints 5. Assumptions 6. Expert judgment Tools: 1. Decomposition 2. Templates Outputs: 1. Activity list 2. Supporting detail 3. WBS updates Notes: Decomposition here generates activities, whereas decomposition in Scope Definition generates deliverables. Activity Sequencing Identifying and documenting interactivity dependencies. Inputs: 1. Activity list 2. Product description 3. Mandatory dependencies 4. Discretionary dependencies 5. External dependencies 6. Milestones Tools: 1. Precedence Diagramming Method 2. Arrow Diagramming Method 3. Conditional Diagramming Methods 4. Network Templates Outputs: 1. Project network diagrams 2. Activity list updates Notes: 1. PDM has 4 types of dependencies (F-S, F-F, S-F, S-S) 2. ADM only uses F-S dependencies 3. ADM uses dummies, PDM doesn’t.

Schedule Control Controlling changes to the project schedule Inputs: 1. Project schedule 2. Performance reports 3. Change requests 4. Schedule management plan Tools: 1. Schedule change control system 2. Performance measurement 3. Additional planning 4. Project management software 5. Variance analysis Outputs: 1. Schedule updates 2. Corrective action 3. Lessons learned Notes: Revisions are a special schedule update. Revisions are changes to the start and finish dates in approved schedules. They are usually revised only in response to scope changes.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Time (cont) (5) (4C/1F)

Activity Duration Estimating Estimating the number of work periods which will be needed to complete individual activities Inputs: 1. Activity list 2. Constraints 3. Assumptions 4. Resource requirements 5. Resource capabilities 6. Historical information 7. Identified risks Tools: 1. Expert judgment 2. Analogous estimating 3. Quantitatively based durations 4. Reserve (contingency) time Outputs: 1. Activity duration estimates 2. Basis of estimates 3. Activity list updates Notes: 1. PERT and CPM estimating can only be drawn on an AOA diagram. 2. Critical path is the longest path through a network diagram and shows the earliest completion of a project. It can be derived using CPM, PERT or Monte Carlo. Schedule Development Analyzing activity sequences, activity durations, and resource requirements o create the project schedule. Inputs: 1. Project network diagrams 2. Activity duration estimates 3. Resource requirements 4. Resource pool descriptions 5. Calendars 6. Constraints 7. Assumptions 8. Leads and Lags 9. Risk management plan 10. Activity attributes Tools 1. Mathematical analysis 2. Duration compression 3. Simulation

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Time (cont) (5) (4C/1F)

4. Resource leveling heuristics 5. Project Management software 6. Coding structure Outputs: 1. Project schedule 2. Supporting details 3. Schedule management plan 4. Resource requirement updates Notes: 1. CPM technique provides only 1 estimate per task (i.e. most likely) 2. PERT technique provides 3 estimates (Optimistic (O), Pessimistic (P), and Most Likely (M)). 3. PERT Formulas: (P+4M+O)/6 Standard deviation – (P-O)/6 Variance – ((P-O)/6) 2

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Cost (4) (3C/1F)

Resource Planning Determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities. Inputs: 1. WBS 2. Historical information 3. Scope statement 4. Resource pool description 5. Organizational policies 6. Activity duration estimates Tools: 1. Expert judgment 2. Alternatives identification 3. Project Management software Outputs: 1. Resource requirements Notes: N / A Cost Budgeting Allocating the overall cost estimate to individual work items. Inputs: 1. Cost estimates 2. WBS 3. Project schedule 4. Risk management plan Tools: 1. Cost budgeting tools and techniques Outputs: 1. Cost baseline Notes: Cost baseline is a time-phased budget used to measure and monitor cost performance.

Cost Control Controlling changes to the project budget. Inputs: 1. Cost baseline 2. Performance reports 3. Change requests 4. Cost management plan Tools: 1. Cost change control system 2. Performance measurement 3. Earned value management 4. Additional planning 5. Computerized tools Outputs: 1. Revised cost estimates 2. Budget updates 3. Corrective action 4. Estimate at completion 5. Project closeout 6. Lessons leaned Notes: Formulas to remember: EAC = BAC / CPI ETC = EAC – ACWP VAC = BAC - EAC

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Cost (cont) (4) (3C/1F)

Cost Estimating Developing an approximation (estimation) of the costs of the resources needed to complete job activities. Inputs: 1. WBS 2. Resource requirements 3. Resource rates 4. Activity duration estimates 5. Estimating publications 6. Historical information 7. Chart of accounts 8. Risks Tools: 1. Analogous estimating 2. Parametric modeling 3. Bottom up estimating 4. Computerized tools 5. Other cost estimating methods Outputs: 1. Cost estimates 2. Supporting details 3. Cost management plan Notes: Analogous estimating is generally less costly and less accurate than other techniques. Bottom up estimating accuracy is driven by size of work items being estimated. Smaller items increase both cost and accuracy. Formulas to remember include: SV = BCWP – BCWS CV = BCWP – ACWP SPI = BCWP / BCWS CPI = BCWP / ACWP

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Quality (3) (3F)

Quality Planning Identifying which quality standards are relevant to the project and determining how to satisfy them. Inputs: 1. Quality policy 2. Scope statement 3. Product description 4. Standards and regulations 5. Other process outputs Tools: 1. Benefit / Cost analysis 2. Benchmarking 3. Flow-charting 4. Design of experiments 5. Cost of quality Outputs: 1. Quality management plan 2. Operational definitions 3. Checklists 4. Inputs to other processes Notes: 1. Quality: the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs. 2. Customer satisfaction: conformance to requirements, specifications, and fitness for use 3. Quality is planned in, not inspected in.

Quality Assurance Evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. Inputs: 1. Quality management plan 2. Results of quality control measurements 3. Operational definitions Tools: 1. Quality planning tools and techniques 2. Quality Audits Outputs: 1. Quality Improvement Notes: 1. Kaizen (Continued improvement): Small improvements in products or processes to reduce costs and ensure consistency of products or services. 2. ISO 9000: an international standard that describes a recommended quality system. Does not include quality procedures or forms. 3. Heuristic is a rule of thumb.

Quality Control Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Inputs: 1. Work results 2. Quality management plan 3. Operational definitions 4. Checklists Tools: 1. Inspection 2. Control charts 3. Pareto diagrams 4. Statistical sampling 5. Flow-charting 6. Trend analysis Outputs: 1. Quality improvement 2. Acceptance decisions 3. Rework 4. Completed checklists 5. Process adjustments Notes: 1. Variable: characteristic to be measured 2. Attribute: the measurement (pound, inch…) 3. Statistical independence: the probability of 1 event occurring does not affect the probability of another event occurring. +/- 1 sigma = 68.26% +/- 2 sigma = 95.46% +/- 3 sigma = 99.73% +/- 6 sigma = 99.99%

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing HR (3) (3F)

Organizational Planning Identifying, documenting, and assigning project roles, responsibilities and performing relationships. Inputs: 1. Project interfaces 2. Staffing requirements 3. Constraints Tools: 1. Templates 2. HR practices 3. Organizational theory 4. Stakeholder analysis Outputs: 1. Role & Responsibility assignments 2. Staffing management plan 3. Org chart 4. Supporting detail Notes: PM Forms of Power 1. Formal (Legitimate) Position Based 2. Reward (Given on Merit) 3. Penalty (Coercive) 4. Expert (Based on Knowledge) 5. Referent (Using Others Power) Staff Acquisition Getting the human resources needed assigned to and working on the project. Inputs: 1. Staffing management plan 2. Staffing pool descriptions 3. Recruitment practices Tools: 1. Negotiations 2. Preassignments 3. Procurements Outputs: 1. Project staff assigned 2. Project Team directory Notes: Conflict Resolution 1. Problem Solving (Confront) BEST 2. Compromising 3. Withdrawal 4. Smoothing 5. Forcing (Worst)

Team Development Developing individual and group skills to enhance project performance. Inputs: 1. Project plan 2. Project staff 3. Staffing management plan 4. Performance reports 5. External feedback Tools: 1. Team building activities 2. General management skills 3. Reward and Recognition systems 4. Collocation 5. Training Outputs: 1. Performance improvements 2. Input to performance appraisals Notes: Maslow’s Hierarchy of Need 1. Physiological (Lowest) 2. Safety 3. Social 4. Esteem 5. Self-Actualization (Highest) MacGregor’s Theory X – people need to be watched every minute. They are incapable, avoid responsibility, and avoid work. MacGregor’s Theory Y – people are willing to work without supervision and want to achieve.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Comms (4) (2C/2F)

Communications Planning Determining the information and communications needs of the stakeholders. Inputs: 1. Communications requirements 2. Communications technology 3. Constraints 4. Assumptions Tools: 1. Share holder analysis Outputs: 1. Communications management plan Notes: Communications Management Plan may include the following: 1. What information needs to be collected and when. 2. Who will receive the information 3. Methods to gather the information 4. Who may talk to whom 5. Reporting relationships 6. Schedule for distribution

Information Distribution Making needed information available to project stakeholders in a timely manner. Inputs: 1. Work results 2. Communications management plan 3. Project plan Tools: 1. Communications skills 2. Information retrieval systems 3. Information distribution methods Outputs: 1. Project records 2. Project reports 3. Project presentations Notes: Communications Methods: 1. Formal Written 2. Formal Verbal 3. Informal Written 4. Informal Verbal Communications Channel: N(N-1)/2 where N = the number of people.

Performance Reporting Collecting and disseminating performance information. This includes status reporting, progress measurements and forecasting. Inputs: 1. Project plan 2. Work results 3. Other project records Tools: 1. Performance reviews 2. Variance analysis 3. Trend analysis 4. Earned value analysis 5. Information distribution tools and techniques Outputs: 1. Performance reports 2. Change requests Notes: Performance Reporting Tools: 1. Status Reports 2. Progress Reports 3. Trend Reports 4. Forecasting Reports 5. Variance Reports 6. Earned Value

Administrative Closure Generating, gathering, and disseminating information to formalize phase or project completion. Inputs: 1. Performance measurement documentation 2. Product documentation 3. Other project records Tools: 1. Performance reporting tools and techniques 2. Project reports 3. Project presentations Outputs: 1. Project archives 2. Project closure 3. Lessons learned Notes: Admin closure should be done for each phase of the project. Inputs include: 1. Performance Measurement Documentation 2. Documentation of the product of the project 3. Other project records

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Risk (4) (4F)

Risk Identification Determining which risks are likely to affect the project and documenting the characteristics of each. Inputs: 1. Product description 2. Other planning outputs 3. Historical information Tools: 1. Checklists 2. Flowcharting 3. Interviewing Outputs: 1. Sources of Risk 2. Potential risk events 3. Risk symptoms 4. Inputs to other processes Notes: Types of Risk: 1. Business Gain / Loss 2. Pure (Insurable) – Only loss Sources of Risk: 1. Schedule 2. Cost 3. Quality 4. Performance 6. Scope Risk Factors: 1. Probability it will occur 2. Range of possible outcomes 3. Expected timing 4. Anticipated frequency Risk Quantification Evaluating risk and risk interactions to assess the range of possible project outcomes. Inputs: 1. Stakeholder risk tolerance 2. Sources of risk 3. Potential risk events 4. Cost estimates 5. Activity duration estimates Tools: 1. Expected monetary value 2. Statistical sums 3. Simulation 4. Decision Trees

Risk Monitoring and Control Responding to changes in risk over the course of the project. Inputs: 1. Risk management plan 2. Actual risk events 3. Additional risk identification Tools: 1. Workarounds 2. Additional risk response development Outputs: 1. Corrective action 2. Updates to risk management plan Notes: Workarounds – unplanned responses to negative risk events Contingency Plans – planned responses to risks. Proper risk management should make contingency plans more frequent than workarounds.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Risk (cont) (4) (4F)

5. Expert judgment Outputs: 1. Opportunities to pursue, threats to respond to. 2. Opportunities to ignore, threats to accept Notes: Risk Quantification involves determining the following: 1. Probability 2. Amount at stake 3. Ranking of risks Two methods used to determine probability and the amount at stake: 1. Qualitative: Educated guess (High, Medium, Low) 2. Quantitative: Estimation by calculation (20k or 2 week period) Risk Response Development Defining enhancement steps for opportunities and responses to threats. Inputs: 1. Opportunities to pursue, threats to respond to. 2. Opportunities to ignore, threats to accept Tools: 1. Procurement 2. Contingency Planning 3. Alternative strategies 4. Insurance Outputs: 1. Risk Management Plan 2. Inputs to other processes 3. Contingency plans 4. Reserves 5. Contract agreements Notes: Response Categories: 1. Avoidance – Eliminate threat by eliminating cause 2. Mitigation – Reduce EMV of risk by reducing probability of occurrence 3. Acceptance – accept consequences 4. Deflection – make another party responsible Reserves (Contingency) – formulating the amount of cost / time for risk.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Procurement (6) (1C/5F)

Procurement Planning Determining what to procure and when. Inputs: 1. Scope statement 2. Product description 3. Procurement resources 4. Market conditions 5. Other planning outputs 6. Constraints 7. Assumptions Tools: 1. Make-or-Buy analysis 2. Expert judgment 3. Contract type selection Outputs: 1. Procurement management plan 2. Statement of Work Notes: Main reason to buy (over make) is to decrease risk (cost, schedule, and performance or scope of work. Contract Type Selection: 1. CR – Cost reimbursable. Buyer bears highest risk for cost. 2. FP – Fixed price. Buyer has least cost risk. 3. T&M- (Unit Price) Time and Materials. Buyer has moderate cost risk. Incentives – help bring sellers objectives in line with buyer’s objectives. Solicitation Planning Documenting project requirements and identifying potential sources. Inputs: 1. Procurement management plan 2. Statement of Work 3. Other planning outputs Tools: 1. Standard forms 2. Expert judgment Outputs: 1. Procurement documents 2. Evaluation criteria 3. Statement of Work updates

Solicitation Obtaining quotations, bids, offers or proposals as appropriate. Inputs: 1. Procurement documents 2. Qualified seller list Tools: 1. Bidder conferences 2. Advertising Outputs: 1. Proposals

Notes: Things to be aware of at a bidders conference: 1. Collusion 2. Sellers not asking questions in front of the competition. 3. All Q&A is put in writing and issued to all potential sellers as an addendum to the procurement documentation. Source Selection Choosing from among potential sellers. Inputs: 1. Proposals 2. Evaluation criteria 3. Organizational policies Tools: 1. Contract negotiation 2. Weighting system 3. Screening system 4. Independent estimates Outputs: 1. Contract Notes: Objectives of Negotiation: 1. Obtain a fair and reasonable price 2. Develop a good relationship with the seller (win-win situation) Items to negotiate: 1. Responsibilities 2. Authority 3. Applicable law 4. Tech / Business Approaches 5. Financing / Price

Contract Closeout Completion and settlement of the contract including resolution of all open issues. Inputs: 1. Contract documentation Tools: 1. Procurement audits Outputs: 1. Contract file 2. Formal acceptance and closure Notes: Centralized Contracting – a separate contracting office handles contracts for all projects. Decentralized Contracting – a contract administrator is assigned to each project. Contract documentation is the only input into Contract Closeout.

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Process Groups

Knowledge Areas

Initiating Planning Executing Controlling Closing Procurement (cont) (6) (1C/5F)

Notes: RFP (Request for Proposal) – requests detailed proposal on how work will be accomplished. RFI (Request for Information) – request for information about a product or service RFQ (Request for Quotation) – request from a price quote per item, hour, etc. IFB (Invitation for Bid) – requests one price for all work. Procurement documents: 1. Info for Sellers 2. Scope of Work 3. Proposed terms and conditions for contract.

Contract Administration Managing the relationship with the seller. Inputs: 1. Contract 2. Work results 3. Change requests 4. Seller invoices Tools: 1. Contract change control system 2. Performance reporting 3. Payment system Outputs: 1. Correspondence 2. Contract charges 3. Payment requests Notes: Usually a third party controls the contract and is the only one with authority to change it. This can lead to conflict between the project manager and the contracting officer.

Blue = Core Process (C) Green = Facilitating Process (F)

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Earned ValueTerm Name Formula Type of questions

BCWP Budgeted Cost of Work Performed How much did we budget for the work performed? (How much should it have cost?)a.k.a. "earned value" How much work is done on a budgeted basis?

How much did we budget for the work we did?ACWP Actual Cost of Work Performed How much did it actually cost for the work performed?

How much did the "is done" work cost?How much did we spend to date?

BCWS Budgeted Cost of Work Scheduled How much did we budget for the work scheduled? (How much should it have cost?)

How much work "should" be done?BAC Budget At Completion How much did we budget the completed job would cost?

How much did we budget for the total job?CV Cost Variance BCWP - ACWP What is the difference between budgeted and actual cost?

Negative is bad, positive is good.Negative is under budget, positive is over budget?

SV Schedule Variance BCWP - BCWS What is the difference between budgeted and actual schedule? Negative is bad, positive is good.

Negative is bad, positive is good.Negative is behind budget, positive is ahead of schedule?

CPI Cost Performance Index BCWP / ACWP We are performing at x % of the cost originally budgeted, getting x cents per dollar.

We are only getting xx cents out of every dollar.We are getting $x.xx out of every dollar.

SPI Schedule Performance Index BCWP / BCWS We are performing at x % of the rate originally scheduled.

We are only progressing at the rate of xx % of the rate originally palnned.We are progressing at xxx% of the rate originally planned

ETC Estimate To Completion EAC - ACWP How much more do we estimate we'll spend after today to complete the job?How much will it cost from now to the completion of the project?

EAC Estimate At Completion BAC / CPI How much do we estimate today for the project to cost when completed?As of now we expect the total project to cost $x.

VAC Variance At Completion BAC - EAC How much over or under budget do we expect to be when we complete the job?When the project is complete, we will have spent $x less than expected.

When the project is complete, we will have spent $x more than expected.Remember: 1. All variance and index formulas begin with Budgeted Cost of Work Performed.2. Variance means difference (Plan minus Actual), Index means percent (Plan divided by Actual).3. Cost formulas use Actual Cost of Work Performed for cost.4. Schedule formulas use Budgeted Cost of Work Scheduled.

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Earned Value - Cost Formulae Present Value = FV/(1+i)n Future Value = amount x 1/PV Variance = Plan - Actual BCWP = Earned Value, or budgeted cost of work performed (BCWP), is a percentage of the total budget equal to the percentage of the work actually completed. What is done. BCWS = budgeted cost of work scheduled is that portion of the approved cost estimate planned to be spent on the activity during a given period. What should be done. ACWP = actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on the activity during a given period. Cost to achieve what is done. Cost Variance � CV = BCWP – ACWP � $<0 � Trouble Schedule Variance � SV = BCWP – BCWS � $<0 � Trouble Variance At Completion � VAC = BAC - EAC Cost Performance Index � CPI = BCWP / ACWP � <1 � Trouble Schedule Performance Index � SPI = BCWP / BCWS � <1 � Trouble Percent Complete = (BCWP/BAC) x 100 BAC = total amount of workhours we budget for the work Estimate At Completion � EAC = BAC/CPI = ACWP + ETC (Forecast of work to complete)

ACWP + remaining project budget modified by a performance factor (BAC/CPI) ACWP + new estimate for all remaining work ACWP + remaining budget (BAC)

Estimate To Complete � ETC = BAC - BCWP Management Reserve (Contingency) � MR = Cost Baseline = BAC + MR

Time

Cost

Contract Budget Now

} MR ���� BAC ACWP

BCWS BCWP

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Project Integration Management Integration Management Processes required to ensure that the various elements of the project are properly coordinated. Project Plan Development Taking the results of other planning processes and putting them into a consistent, coherent document that can be used to guide both project execution and project control Project Plan Execution Carrying out the project plan by performing the activities included therein. The vast majority of the project’s budget will be expended in performing this process. Overall Change Control Is concerned with Influencing the factors which creates changes to ensure that changes are beneficial, Determining that that a change has occurred, Managing the actual changes when and as they occur. Overall changes control requires: Maintaining the integrity of the performance measurement baselines – all approved changes should be reflected in the project plan, but only project scope changes will affect the performance measurement baselines. Ensuring that changes to the product scope are reflected in the definition of the project scope. Coordinating changes across knowledge areas Notes 1. Life cycle = Conceptual, develop, Implementation, termination 2. Project Charter = Delegation of authority, organization concerns, Cost estimates, schedule, justification of project, approval of project, resources availability, scope of project 3. Life cycle conflict = project priority + administrative procedures + schedule (as conceptual); implementation (schedule + tech issues + resources); Termination) schedule,

personal conflict, resources). 4. Configuration management = General design + detail design + Implement and test system. 5. WBS = Project, sub-project, task, work package, and work element. 6. Know the types of organizations such as: Functional, Projectized, Matrix, Project coordinator, and Project Expediter. 7. What is another name for Responsibility Matrix? Linear Resource Chart or Resource Matrix or Cross Impact Matrix. 8. When is the Project Charter completed? At the end of the conceptual phase 9. When is the WBS developed? Planning phase 10. What are the three top sources of conflict during each phase> Conceptual: Project priorities, administration procedures, and schedules. Planning Phase: Project priorities,

Schedules, and administrative procedures. Implementation phase: Schedules, Technical, and Resources. Closeout Phase: Schedule, Personalities, and Resources. 11. Eighty hours of work make up a work package 12. Know the importance of WBS

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13. What does the project manager most likely encounter problems during the planning stage? When developing the WBS and Schedule since it requires scheduling of resources. 14. What creates the biggest problems for the PM? Motivation of people 15. The typical role of the project manager is to plan, organize and control project activities from the conceptual phase through the closeout phase. 16. The project plan, a roadmap to follow through each project phase, pulls all parts of the project together into one cohesive document. 17. The three types of planning are strategic, tactical, and operational. Strategic is long-term, top down planning; tactical is bottom-up for a shorter term, and operational is a

quick response with a shorter timeline than tactical. 18. The rolling wave approach is an iterative planning process which starts when little actual informal in is available and continues to be modified and refined as additional

information is obtained. 19. The three components required for project plan development are objectives, assumptions, and estimates. 20. The Statement of Work (SOW) is a narrative of project work requirements, developed at the beginning of the process. It should include project objectives, a description of the

work, specifications, funding constraints, a high level schedule and a work breakdown structure. 21. What is the least performed of all project life cycles? Project termination or closeout.

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Project Scope Management Project Scope Management The process required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Product Scope Describes the product to be delivered. Completion of the product scope is measured against the requirements. Project Scope Describes the work required to deliver the product. Completion of the project scope is measured against the project plan. Notes: 1. The major Scope Management Processes consist of 1) Project initiation, 2) Scope planning, 3) scope Definition, 4) Scope Verification, and 5) scope Change Control. 2. Product Scope refers to the features and functions of the product delivered by the project, while Project Scope refers to the work required to deliver the product. 3. Project Initiation results from management’s recognition of a problem, opportunity or a business requirement. 4. Preliminary work (i.e. feasibility study, preliminary plan or some other form of analysis) is often completed prior to project initiation. 5. The Project Charter clearly defines the duties and authority of the project manager, the functional managers and the project term. Is also gives the project manager the

authority to apply resources to project activities. 6. Constraints are factors that will limit the team’s options. 7. Assumptions are factors that, for planning purposes, will be considered true, real or certain. 8. The Scope Statement is narrative document which provides a basis for 1) a contrast between the project team and the customer, 2) confirming a common understanding of the

project scope, 3) charge control and 4) =making future project decisions. 9. Decomposition involves identifying the major project elements, developing cost and duration estimates, and identifying specific results for each level of the WBS. 10. Scope verification is the process of obtaining formal stakeholder acceptance of the [project scope. 11. Scope Change Control is concerned with 1) influencing factors which create scope changes to make sure they are benefiting to the project, 2) determining when a change has

occurred and 3) managing actual changes when and if they occur. 12. The Scope Management Plan is a high-level process for scope change control. It is developed during the scope-planning phase, as part of Scope Statement document.

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Project Time Management

Project Time Management The processes required to ensure timely completion of the project.

Activity Normally has an expected duration, an expected cost, and expected resource requirement. Identifying and documenting the specific activities performed to produce deliverables. Critical Path In a project network diagram, the series of activities which determines the earliest completion of the project. The critical path will generally change from time to time as activities are completed ahead or behind schedule. Although normally calculated for the entire project, the critical path can also be determined for a milestone or subproject. The critical path is usually defined as those activities with float less than or equal to a specified value, often zero. Float The amount of time that an activity may be delayed from its early start without delaying the project finish date. Notes: 1. Expected Mean Value = (optimistic + (4 * most likely) + pessimistic) /6 2 Resource Leveling = use resources effectively, however will normally change critical path and will lengthen the project’s duration. 3. Standard Deviation = (Pessimistic Estimate – Optimistic Estimate) / 6 4. Cumulative Cost Curve = Best tool for tracking project cost 5. Slack = Early Start – Late Start 6. Early Finish = Early Start + duration 7. Late Start = Late Finish – Duration 8. Gantt Chart = Used to track actual vs. planned for schedule control. 9. Pert = Best for what if, measures future consequences of activities. 10. Fast Tracking = used in order to speed up those task. Doing tasks in parallel with each other. 11. Crashing the Schedule Rules = Only crash those on the critical path and begin crashing only those tasks which cost the least amount first. 12. AOA = Event Oriented 13. AON = Activity Oriented

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Project Cost Management

Project Cost Management Processes required to ensure that the project is completed within the approved budget.

Cost Management Resource Planning Determining what resources and what quantities of each should be used to perform project activities.

Cost Estimating Developing an approximation (estimate) of the costs of the resources needed to complete project activities. Cost estimating

Cost Budgeting Allocating the overall cost estimate to individual work items.

Cost Control Controlling changes to the project budget. Notes: 1. Cost Estimating = Assembling and predicting project costs 2. Cost = cash value of project activity 3. BCWS = Planned Cost 4. ACWP = Actual Cost 5. BCWP = Budgeted Cost of Work Performed or EARNED VALUE )+( how much work is done) 6. Budget @ Completion (BAC) is what the total job is supposed to cost. 7. Estimates @ Completion (EAC) is what you expect the job to cost after some portion of the work has been completed.; EAC = (ACWP/BCWP) * BAC 8. Percent Completion = BCWP divided by BAC 9. Variance @ Completion (VAC) = BAC – EAC 10. Schedule Variance (SV) = BCWP – BCWS (negative is behind schedule) 11. SV % + (SV / BCWS) * 100 or [(BCWP – BCWS) / BCWS] * 100 12. BAC = Budget @ Completion or what job is supposed to cost or total budget

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13. Cost Variance = over run CV = BCWP – ACWP 14. CV % = [CV / BCWP] * 100 15. Percent Over (positive) / under (negative) = [(ACWP – BCWP) / BCWP] * 100 16. Process Analysis = Development of performance indices = CPI and SPI 17. CPI = BCWP / ACWP ( means that $1 spent will generate) 18. SPI = BCWP / BCWS ( more than 1 is good) 19. Future Value (FV) = PV(1+r)n 20. Discount rate (DR) = 1 divided by (1 + Interest) 21. Break Even = Fixed Cost divided by contribution margin 22. Order of Magnitude = -25% to +75% 23. Budget Estimate = -10% to +25% 24. Definitive Estimate = -5% to +10% 25. Simple Interest I = P * R * T 26. ROI = (Net income + interest expense) – Average Assets 27. Straight Line Depreciation = (asset – residual) divided by life 28. Life Cycle cost = develop, procurement, and operational/maintenance 29. Material Cost = Transportation, storage, and shortages 30. Cost estimates can best be described as the process of assembling and predicaction costs of a project over its life cycle. 31. Cost forecasting can be best described as the process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could occur

during the project. 32. Cost budgeting is the process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed. 33. Cost control is the process of gathering, accumulating, analyzing, monitoring, reporting and managing the costs of an on-going basis. 34. The WBS purpose is to describe the total program as a summation of the subdivided elements of the project. 35. Which type of cost estimate is the most accurate? Definitive estimate 36. What is an example of direct project cost? Cost of project materials.

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37. Which of the following is not a tradeoff decision that must be made in the development of the project plan? The amount of profit vendors should make versus the profit other vendors have received in the past

38. Productivity is defined as the measurement of labor efficiency when compared to a baseline and the measure of the effectiveness of equipment. 39. Key factors that govern how an estimate is prepared are end use of the estimate, tools available, times available, and information available. 40. The purpose of the contingency money in the cost estimate is to provide funds to cover the uncertainties in the estimate within the defined scope and schedule and to cover

unforeseen natural disasters. 41. The reason that cost management is so difficult is that many activities have never been done in the same manner and under the same environment or with the same project

team members. 42. If the variable cost of producing a unit equals $100 per unit and all fixed costs are equal to $2500, what is the cost of producing ten extra units? $1,000 43. The project manager’s responsibilities for Cost Management include: evaluating the economic feasibility of a project establishing project budgets and cost tracking

mechanisms, monitoring/managing costs as the project progress and reporting the project’s actual cost performance to management. 44. ROI is and economic evaluator that represents value added to the shareholder’s wealth. 45. Know how to indentify variable cost. 46. On what should project budget be based? Use the WBS to identify all project activities. Obtain the expected value cost estimates provided by the functional managers, costs

that can be measured, tracked, and managed, use historical data from analogous projects. 47. Costs elements not typically found in a project’s budget include; capital equipment depreciation expenses. 48. A time-phased budget is useful for determining if an activity will complete on time and meet its budget. It is also useful for determining if a project will complete on time and

meet the budget. 49. Variance analysis is used to interpret time phased budget/actual date. 50. Sunken costs are those costs already invested in the project that are not recoverable. It is usually not relevant to making financial decisions. 51. Accelerated forms of deprecation are double declining balance and sum of the years. 52. Cost management includes those processes that are required to maintain financial control of a project’s: economic evaluation, cost estimating and cost forecasting. 53. The techniques that can be used to determine the total income of a project compared to the total funds spent at any period in time are: ROI, NPV, and discounted cash flow. 54. Life cycle costing includes all costs within the total life of a project. These include: development, procurement, and operation/maintenance. 55. Managerial reserves are funds that are allocated and maintained for contingency reasons. 56. Benefit cost analysis is used as a project selection technique and to decide whether to end a project or continue with it. 57. Present value (PV) = the value in terms of today’s future cash flow. 58. Parametric Costs = using a statistical model to assist in preparing cost estimates.

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59. Cost management must look at future cost projections, and the controls exercised over the estimates. There are these different cost estimates: Order of Magnitude, budgetary, and definitive, in order of increasing accuracy.

60. The reserve for cost variances from the plan due to inaccurate estimates or pricing and cost overruns is handled from the management reserves. 61. The reserve to accommodate cost for project work that was not included in the plan through error or oversight is the contingency allowance. 62. A cost control system is established by matching the needs to the work package. The direct mapping of the work package is accomplished via the establishing a Code of

Accounts. 63. As the project nears completion and no large expenditures have been spent, the remaining contingency allowance dollars should be reduced to a percentage of remaining work. 64. Historical records are the best source of project information for costs, planning, etc. 65. In the earned value system, the status of the project is reported as BCWS = 100, ACWP = 110,

BCWP =95. The project is “behind schedule and overspent”.

66. The tool that best facilitates the pricing of a project by a structured decomposition of the total into individual elements of labor, material and equipment is the WBS. 67. The project manager has the best control of costs such as labor, materials, and equipment. 68. A method of encouraging early payment of invoices is to offer a discount for payment within a few days. The method”2/10, net 30” means that if the invoice is paid within 10

days, there is a two percent discount, if not, pay the invoice in full within 30 days. A $1,000 invoice if paid within two days, would save $20. 69. A financial audit is used to determine if a project is visible. A computer system is not an area that would be audited. The first audit is conducted at the end of the planning

phase. 70. Cost increases are an important aspect of budgeting. The areas that usually have budget escalations are labor rates, materials, and interest rates. 71. Know and understand the cumulative cost curve. 72. Variance = Planned – Actuals 73. Opportunity costs = costs of not pursuing a course of action. 74. Control is the process whereby the project manager determines the degree to which the project plan is being met with a focus on schedule, budget, and resources. In reality,

managing the specifications, project variances and customer satisfaction.

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Project Quality Management Project Quality Management The processes required to ensure that the project will satisfy the needs for which it was undertaken. Quality The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs. Conformance to requirements or specifications. Grade A category or rank given to entities having the same functional use, but different requirements for quality. Conformance to Specifications Project must produce what it said it would produce Fitness for Use The product or service produced must satisfy real needs. Notes: 1. Cost of Quality = Management’s Responsibility 2. Normal Distribution = Bell Curve 3. One Standard Deviation = 68.3% of population 4. Two Standard Deviations = 95.5% of population 5. Three Standard Deviations = 99.7% of population 6. Rule of 7 = 1.56% probability 7. Cost of Conformance (proactive) = Planning + Training + Control + Validation + Tests + Audits 8. Cost of Conformance is cost of conforming to specifications 9. Cost of Non-conformance (failure) = Scrap, Rework, Additional Work, Warranty, Complaint Handling, Product recall, Expediting. 10. Reliability = primary measure is MTBF Mean time between failure 11. Quality cost of a project = 3% to 5% of project’s total value & nonconformance cost 12-20% of project’s total value (Source = Ireland) 12. Quality Control = Established Base line measures conformance against base line. 13. Variance = measurable in increments 14. Variance = Standard Deviation squared: also called Kurtosis 15. Attribute = Go/No Go decision

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16. Probability = chance it will happen 17. Uncertainty = probability not known 18. UCL (upper control limit) = mean LCL (lower control limit) + Standard Deviation = Mean - Standard Deviation 19. Zero Defects = Standard + Communicate 20. Before quality was emphasized, 20 to 30 thousand per million defects, now it is 20 to 50 rejects per million or less. Bar has been raised a lot 21. Quality = Conformance to requirements or specifications 22. Cost of Quality = Nonconformance to specifications 23. Statistical Process Control’s (SPC) main tool is control charts. 24. Regression analysis = function in form 25. Correlation analysis = strength, direction, and form. 26. Sample size increase will decrease control band. 27. Customer expects producibility, usability, reliability, available, maintainability, flexibility, social acceptability, operability, and affordability.

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Project Human Resource Management Project Human Resource Management Processes required to make the most effective use of the people involved with the project. Organizational Planning Involves identifying, documenting and assigning project roles, responsibilities, and reporting relationships. Staff Acquisition Involves getting the human resources needed. Team Development Includes both enhancing the ability of stakeholders to contribute as individuals as well as enhancing the ability of the team to function as a team. Notes: 1. PM Roles are integrator, communicator, team leader, decision-maker, & climate creator. 2. Power types are: “Reward”, “Expert”, legitimate, coercive, & referent. (* = Best are reward and expert, use expert when dealing with upper management. 3. Conflict Management methods are: problem solve, compromise, smooth, with draw, & forcing 4. Project manager has most conflict over: personnel, program, tech issues, & schedule problems 5. Four project manager functions are: plan, organize, lead, and control. 6. Human Resources is the art and science of directing human resources throughout the life of a project by using administrative and behavioral knowledge to achieve project

objectives of Scope, Cost, Time, Quality, and the participant’s satisfaction. 7. The management styles are: Autocratic (tight control), Lassez Faire (nobody’s in charge), and Democratic (participative) 8. Herzberg’s Theory = Hygiene Factors and motivating agents. Hygiene factors are necessary but are not sufficient for a contented worker. The Hygiene Factors are:

Administrative Policies; Working conditions; Salary; Personal life; Peer, Superior, Subordinate Relationships; Status; and Security. 9. Herzberg also stated that achieving positive motivation results from opportunity to achieve and experience “self actualization”. 10. Maslow’s Hierarchy of Needs are: Physiological, Safety, Social, Esteem, and Self Actualization (in this order) 11. McGregor’s Theory X = average workers are lazy and needs supervision (relies on external motivation) 12. McGregor’s Theory Y = workers are willing to do the job without continuous supervision (relies on self motivation)

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Project Communications Management

Project Communications Management Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information. Communication Planning Involves determining the information and communications needs of the stakeholders: who needs what information, when will they need it and how will it be given to them. Information Distribution Process of making needed information available to project stakeholders in a timely manner. Performance Reporting Involves collecting and disseminating performance information in order to provide stakeholders with information about how resources are being used to achieve project objectives. Included are:

Status reporting – Describes where the project now stands Progress reporting – Describes what the project team has accomplished

Administrative Closure The project or phase, after achieving its objectives or being terminated for other reasons, requires closure. Administrative closure consists of verifying and documenting project results to formalize acceptance of the product by the sponsor, client, or customer. Notes: 1. Communication Model = Communicator, Message, Medium, and Recipient. 2. Audience = Customer, Top Management, and Team 3. Communication Process = Transmit, Filter, Receiver, and Understand. 4. Communication Environment = Communication Channels, Logistics, and Personal Contact. 5. Four Communication Types = Formal (written/verbal) and Informal (written/verbal). 6. Communication Barriers = No Channels, Distance, Noise, and Attitudes. 7. Project manager’s main effort is to integrate, plan, and communicate. 8. Communication Basic model = Sender, Receiver, and Message. 9. Number of lines of communication = [n(n-1)] /2 where n = number of members 10. Management Styles = Authoritarian, Combative, Conciliatory, Ethical, Facilitating, Intimidating, Judicial, Promotional, and Secretive. 11. Three Common Media Use = Visual, Audio, and Touch (tactile) 12. Sender Transmits and Receiver Interprets. 13. Conflict = Win-Lose (0,9); Lose-Leave (0,0); Yield-Lose (9,0); Compromise (5,5); Integrative (9,9). 9,9 is better than 5,5 this is our Win-Win play

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Project Risk Management Project Risk Management The processes concerned with identifying, analyzing, and responding to project risk. (PMBOK) or the art and science of identifying, assessing and responding to project risk throughout the life of a project and in the best interests of its objectives. Uncertainty Lack of knowledge of future events Goals of PRM To identify project risks and develop strategies which either significantly reduce them or take steps to avoid them. Opportunity The probability those outcomes will be favorable. Risk The probability those outcomes will be unfavorable. Project Risk Is the cumulative effect of the chances of uncertain occurrences adversely affecting project objectives? Risk Factors Risk Event – Precisely what might happen to the detriment of the project Risk Probability – How likely the event is to occur Amount at Stake – The severity of the consequences Probability = Frequency of relevant events / Total number of possible events Risk Event Status (criterion value or ranking) Risk Event status = risk probability x amount at stake Notes: 1. Measure Risk by calculating one Standard Deviation which is SD = (Pessimistic – Optimistic) divided by 6. 2. Risk Event = what might happen to detriment of project 3. Risk handling = avoidance, control, assumption, and transfer (deflect) 4. Types of Risk Events = External unpredictable + External predictable + internal + technical + legal. 5. Risk Mitigation = insurable + impact analysis + response planning + response system + data application. 6. Expected Value = (Value 1 * probability 1) + …(value N * probability N). 7. Expected Value = probability of the risk event occurring * potential loss or impact. 8. Risk Types = Business + pure (insurable) 9. Risk tied to Cost, Schedule, & Quality. 10. Retention = Assume

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11. Deflect = Transfer 12. Risk’s 3 factors = probability, impact, and the event itself. 13. BCR(benefit cost ration) = NPV of revenue divided by NPV of cost … if = to 1 or more, do the project. 14. Risk management = identify, analyze, and respond to risk factors and document. 15. Risk Event Status = probability of occurrence + severity of consequence. 16. Response planning = mitigation deflection, and contingency planning. 17. Method of reducing risk is to hold functional managers accountable for time/cost estimates. Hire and expert to product better estimates of the future costs. Perform statistical

analysis to improve quality of forecasts. 18. A project manager’s objective when sub-contracting is to shift as much of the risk possible to the sub while maintaining some degree of incentive for improving efficiency and

economic performance. 19. When entering a contract whit a buyer, a project manager should try to shift as much of the risk tot he buyer as possible. 20. During what phase is the risk the highest? Conceptual 21. During what phase is the amount at stake the highest? Termination 22. Uncertainty = the complete absence of information. 23. Certainty = all information for making the right decision is available. 24. Know how to calculate a decision tree’s cumulative probability. 25. PV = amount of payment in N years divided by (1 + interest)n 26. IRR = that rate of discount at which the sum of the positive present values is equal to the sum of the negative present values. OR cost equal revenue and project is a break even.

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Project Procurement Management Project Procurement Management The processes required to acquire goods and services from outside the performing organization. Is discussed from the perspective of the buyer and assumes the seller is outside the performing organization. Procurement Planning The process of identifying which project needs can be best met by procuring products or services outside the performing organization. It involves consideration of whether to procure, how to procure, what to procure, how much to procure and when to procure it. Solicitation Planning Involves preparing the documents needed to support solicitation. Solicitation Involves obtaining information from prospective sellers on how project needs can be met. Most of the actual effort in this process is expended by the prospective sellers, normally at no cost to the project. Source Selection Involves the receipt of bids or proposals and the application of the evaluation criteria to select a provider. However, the process is seldom straightforward. On major procurement items, this process may be iterated. A short list of qualified sellers will be selected and then a more detailed evaluation will be conducted based on a more detailed and comprehensive proposal. Contract Administration Is the process of ensuring that the seller’s performance meets contractual requirements. The legal nature of the contractual relationship makes it imperative that the project team be acutely aware of the legal implications of actions taken when administering the contract. Project management processes that must be applied include:

Project plan execution – Authorize the contractor’s work at the appropriate time, Performance reporting - Monitor contractor cost, schedule and technical performance, Quality control – Inspect and verify the adequacy of the contractor’s product, Change control – Ensure that changes are properly approved and that all those with a need to know are aware of such changes.

Contract Close-Out Is similar to administrative closure in that it involves both product verification and administrative close-out. Early termination of a contract is a special case of contract close-out.

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