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Preparing for PMP exam - Essentials

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1 2 3 4 5 6 7

WHAT IS A PROJECT?..........................................................................................................................................................3 WHAT IS PROJECT MANAGEMENT? ..............................................................................................................................3 ORGANIZATIONAL STRUCTURE INFLUENCES ON PROJECTS ..............................................................................4 NINE PROJECT MANAGEMENT KNOWLEDGE AREAS .............................................................................................4 FIVE PROCESS GROUPS ......................................................................................................................................................5 PROJECT MANAGEMENT PROCESS MAPPING ...........................................................................................................6 PROJECT MANAGEMENT KNOWLEDGE AREAS IN DETAIL...................................................................................7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 INTEGRATION MANAGEMENT .............................................................................................................................................7 SCOPE MANAGEMENT .........................................................................................................................................................8 TIME MANAGEMENT ...........................................................................................................................................................9 COST MANAGEMENT ..........................................................................................................................................................9 QUALITY MANAGEMENT ..................................................................................................................................................10 HUMAN RESOURCES MANAGEMENT .................................................................................................................................10 COMMUNICATIONS MANAGEMENT ...................................................................................................................................11 RISK MANAGEMENT .........................................................................................................................................................12 PROCUREMENT MANAGEMENT .........................................................................................................................................13

8 9

PROJECT MANAGEMENT PLAN .....................................................................................................................................14 RELATED DEFINITIONS....................................................................................................................................................15

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What is a Project?
A project is temporary o Definite beginning and end o Project ceases when declared objectives are met or business need no longer exists & is terminated A project creates unique deliverables, which are products, services or results Progressive elaboration o Is a characteristic of projects that accompanies the concepts of temporary and unique o Progressive elaboration means developing in steps, and continuing by increments

What is Project Management?

Is the application of knowledge, skills, tools and techniques of project activities to meet project requirements. Managing projects includes Identifying Requirements Establish clear and achievable objectives Balancing the competing demands for quality, scope, time and cost Adapting the specifications, plans and approach to the different concerns and expectations of the various stakeholders

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Organizational structure influences on projects

Matrix Balanced Matrix Low to Moderate Low to Moderate Mixed Full-time Part-time

Functional Project Manager's Authority Resource Availability Who controls the project budget Project Manager's Role Project Management Administrative Staff Little or None Little or None Functional Manager Part-time Part-time

Weak Matrix Limited Limited Functional Manager Part-time Part-time

Strong Matrix Moderate to High Moderate to High Project Manager Full-time Full-time

Projectized High to almost Total High to almost Total Project Manager Full-time Full-time

Nine Project Management Knowledge Areas

Integration Management Scope Management Time Management Cost Management Quality Management Human Resources Management Communications Management Risk Management Procurement Management

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Five Process Groups

The process groups follow the lifecycle implementation of project management within each phase of the project. Initiating Process Planning Process Executing Process Monitoring and Controlling Process Closing Process

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Project Management Process Mapping

Processes Planning Develop Project Management Plan Executing Direct and Manage Project Execution Monitoring and Controlling Monitoring and Control Project Work Integrated Change Control Scope Verification Scope Control Schedule Control Closing Close Project

Integration

Initiating Develop Project Charter Preliminary Project Scope Statement

Scope

Scope Planning Scope Definition Create WBS Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Cost Estimating Cost Budgeting Quality Planning Perform Quality Assurance Acquire Project Team Develop Project Team Information Distribution

Time Knowledge Areas Cost Quality

Cost Control Perform Quality Control Manage Project Team

Human Resource

Human Resources Planning Communications Planning

Communication Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Plan Purchases and Acquisitions Plan Contracting Request Seller Responses Select Sellers

Performance Reporting Manage Stakeholders Risk Monitoring and Control

Contract Administration

Contract Closeout

Procurement

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7.1

Project Management Knowledge Areas in detail

Integration Management
Includes the processes and activities needed to identify, define, combine, unify and coordinate the various processes and project management activities within the project management process groups. Develop Project Charter Develop Preliminary Project Scope Statement Develop Project Management Plan Direct & Manage Project Execution Monitor & Control Project Work Integrated Change Control Close Project

Process Group Initiating Initiating Planning Executing Monitoring and Control Monitoring and Control

Process Develop Project Charter Develop Preliminary Project Scope Statement Develop Project Management Plan Direct & Manage Project Execution Monitor & Control Project Work Integrated Change Control

Key outputs Project Charter Preliminary Project Scope Statement Project Management Plan Deliverables Recommended corrective actions Requested Changes Approved Change Requests Deliverables Administrative Closure Procedure Contract Closure Procedure Final product, service or result

Closing

Close Project

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7.2

Scope Management
Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Scope Planning Scope Definition Create WBS Scope Verification Scope Control

Process Group Planning Planning Planning Monitoring and Control Monitoring and Control

Process Scope Planning Scope Definition Create WBS Scope Verification Scope Control

Key outputs Project Scope Management Plan Project Scope Statement Work Breakdown Structure Scope Baseline Accepted deliverables Requested Changes Recommended Corrective Actions

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7.3

Time Management
Includes the processes required to accomplish timely completion of the project. Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Schedule Control

Process Group Planning Planning Planning Planning Planning Monitoring and Control

Process Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Schedule Control

Key outputs Activity list, milestone list Project schedule network diagrams Activity resource requirements, RBS Activity duration estimates Project Schedule, schedule baseline Performance measurements, recommended corrective actions

7.4

Cost Management
Includes the processes involved in planning, estimating, budgeting and controlling costs so that the project can be completed within the approved budget. Cost Estimating Cost Budgeting Cost Control

Process Group Planning Planning Monitoring and Control

Process Cost Estimating Cost Budgeting Cost Control

Key outputs Activity Cost Estimates Cost Baseline Performance measurements

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7.5

Quality Management
Includes all the activities of the performing organization that determine quality policies, objectives and responsibilities, so that the project will satisfy the needs for which it was undertaken. Quality Planning Perform Quality Assurance Perform Quality Control

Process Group Planning Executing Monitoring and Control

Process Quality Planning Perform Quality Assurance

Perform Quality Control

Key outputs Quality Management Plan, Process Improvement Plan, Quality Baseline Requested Changes, Recommended Corrective Actions Quality Control Measurements, Recommended Defect Repair, Validated Deliverables

7.6

Human Resources Management

Includes the processes that organize and manage the project team. Team members should be involved in much of the projects planning and decision making. Human Resource Planning Acquire Project Team Develop Project Team Manage Project Team

Process Group Planning Executing Executing Monitoring and Control

Process Human Resource Planning Acquire Project Team Develop Project Team

Manage Project Team

Key outputs Roles & responsibilities, Project organization charts, Staffing management plan Project staff assignments, Resource availability Team performance assessment Requested changes, Recommended corrective actions, Recommended preventive actions

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7.7

Communications Management
The knowledge area that employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval and ultimate disposition of project information. Communications Planning Information Distribution Performance Reporting Manage Stakeholders

Process Group Planning Executing Monitoring and Control Monitoring and Control

Process Communications Planning Information Distribution Performance Reporting Manage Stakeholders

Key outputs Communication Management Plan

Performance Reports, Forecasts Resolved Issues, Approved Change Requests, Approved Corrective Actions

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7.8

Risk Management
Includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project; most of these processes are updated throughout the project. Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring & Control

Process Group Planning Planning Planning Planning Planning Monitoring and Control

Process Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning

Key outputs Risk Management Plan Risk Register Risk Register updates Risk Register updates Risk Register updates, Risk-related Contractual Agreements Risk Register updates, Requested Changes, Recommended Corrective Actions, Recommended Preventive Actions

Risk Monitoring & Control

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7.9

Procurement Management
Includes the processes to purchase or acquire the products, services or results needed from outside the project team to perform the work. Plan Purchases & Acquisitions Plan Contracting Request Seller Responses Select Sellers Contract Administration Contract Closure

Process Group Planning Planning Executing Executing Monitoring and Control Closing

Process Plan Purchases & Acquisitions Plan Contracting Request Seller Responses Select Sellers Contract Administration Contract Closure

Key outputs Procurement Management Plan, Contract Statement of Work Procurement Documents Qualified Sellers List, Procurement Document Package Selected Sellers, Contract Contract Documentation Closed Contracts

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Project Management Plan

Project Management Plan component Scope Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Staffing Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Resource Calendar Scope Baseline Schedule Baseline Cost Baseline Quality Baseline Risk Register

Knowledge area where created Scope Integration Integration Quality Quality HR Communications Risk Procurement Time Scope Time Cost Quality Risk

Process where created Scope Planning Develop Project Management Plan Develop Project Management Plan Quality Planning Quality Planning HR Planning Communications Planning Risk Planning Plan Purchases and Acquisitions Activity Resource estimating Create WBS Schedule Development Cost Budgeting Quality Planning Risk Identification

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Related Definitions
Arrow Diagramming Method Uses arrows to represent activities and connects them by nodes to show dependencies. Benefit measurement Project selection method also known as comparative approach. Includes: scoring models, cost-benefit analysis, review board, economic models. Budget Estimate -10% to +25% Also known as appropriation estimate done in the planning stage. Constrained optimization Project selection method also known as mathematical approach which uses mathematical models. Includes: linear programming, integer programming, dynamic programming and multi-objective programming. Corrective action Involves implementing actions to deal wit actual deviations from the performance baselines. Crashing Making cost and schedule tradeoffs to determine how to obtain the greatest amount of schedule compression for the least incremental cost while maintaining project scope. Crashing always results in increased costs. Critical Path Longest duration path through a network diagram and determines the shortest time to complete the project.

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Decomposition Subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. Defect repair Means rework and is necessary when a component does not meet its specifications. Definitive Estimate -5% to +10% Normally only obtained from very good WBS and done in the planning stage. Delphi Technique A risk identification method using experts in an anonymous way trying to real consensus. Direct Costs Costs directly attributable to work on the project. Earned Value Technique Measures performance of the project as it moves from project initiation through project closure. Provides a means to forecast future performance based upon past performance. Enterprise Environmental Factors Company culture and existing systems that the project will have to deal with or can make use of. Expert judgment Expertise provided by any group or individual with specialized knowledge or training.

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Fast Tracking Running activities that would normally be done in sequence in parallel to finish the project in the shortest possible time. Usually increases risk. Fixed Costs Costs that do not change in relation to amount of work. Free Float Amount of time an activity can be delayed without delaying the early start if the next activity(ies). Hammock Activity (Summary Activity) Group of related schedule activities aggregated at some summary level, and displayed/reported as a single activity at that summary level. Indirect Costs Overheads. Kaizen Small improvements in products/processes to reduce costs and ensure consistency of performance of products/services. Margin Analysis Optimal quality is reached at the point where the incremental revenue from improvement equals incremental cost to secure it. Maslows Hierarchy of Needs Physiological, Safety, Social, Esteem, Self Actualization. Milestone A significant point or event in the project. Zero duration, no resource and no cost.

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Opportunity Cost The cost of opportunity given up by selecting one project over another. Order of Magnitude Estimate -25% to +75% Very rough estimate normally done at the initiation stage. Organizational Process Assets Existing processes, procedures and historical information such as lessons learnt, past experience. Portfolio A portfolio is a collection of project or programs and other work that are grouped together to facilitate effective management of the work to meet strategic business objectives. These projects or programs may not necessarily be interdependent or directly related. Precedence Diagramming Method Uses nodes to represent activities, connected by arrows showing dependencies. Preventive actions Deals with anticipated or possible deviations from the performance baselines. Program Program is a group of related projects managed in a coordinated way to obtain benefits and control not available by managing them individually Program Management Program management is the centralized, coordinated management of a group of projects, to achieve the programs strategic objectives and benefits.

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Project Life Cycle Projects are divided into phase to provide better management control with appropriate links to the ongoing operations of the performing organization. Collectively, these phases are known as the project life cycle. Project Management Office A Project Management Office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain. Risk An uncertain event/condition that will have a positive or negative effect on the project if it occurs. Six Sigma Focuses on achieving high levels of quality by controlling the process and reducing defects. Goal is to make 6 sigmas of the outputs fall within the customers quality limits. Stakeholders Individual and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. May also exert influence over the projects objectives and outcomes. Sunk Costs Expected costs. No longer under the PMs control. Theory X People are last in chain, seen as lazy and lacking ambition. Workers need strict control/supervision. Theory Y People are willing and eager to accept responsibility and work to organizational objectives. They can work without supervision and direct their own efforts.

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Total Float Amount of time an activity can be delayed from its early start without delaying the project completion date. Total Quality Management (TQM) Philosophy that encourages organizations and their employees to focus on finding ways to continuously improve quality for practices and processes. Variable Costs Cost that will change in relation to amount of work. WBS Dictionary Companion document to the WBS, cross-referencing each WBS component.