pmp exam prep study guide v2 0
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PMP Study GuideTRANSCRIPT
Handbook PMP Exam Prep Workshop
PMP
PMP Exam Preparation Workshop PMP Exam Prep Study Guide
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PMP EXAM PREP WORKSHOP
Hand Book
Based on PMBOK Guide 5th Edition
© 2012 Brain4ce Education Solutions Pvt. Ltd.
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Table of Content
Chapter 1: PMP® Examination - At a Glance .................................................................................... 6
1. PMP® Examination - At a Glance ................................................................................................... 7
1.1. About PMI and PMP ............................................................................. 7
1.2. PMP Exam Preparation Program Objective ................................................ 7
1.3. PMP Exam Prerequisites ....................................................................... 7
1.4. PMP Exam Fee ................................................................................... 8
1.5. Continuing Certification Requirements .................................................... 9
1.6. PMP Examination Format and Passing Score ............................................. 10
1.7. Topics of PMP Examination .................................................................. 10
Chapter 2: Project Management Foundation – Framework, Lifecycle & Organization ....... 13
2. Project Management Foundation – Framework, Lifecycle & Organization ...................... 14
2.1. What is a Project? ............................................................................. 14
2.2. Projects vs. Operations ....................................................................... 15
2.3. What is Project Management? ............................................................... 16
2.4. Project Constraints ............................................................................ 16
2.5. Project Stakeholders .......................................................................... 17
2.6. Competencies of Project Manager .......................................................... 17
2.7. Project Management Context: Related Endeavors ...................................... 18
2.8. Purpose of Project Management ............................................................ 20
2.9. Factors that have impact on Projects ..................................................... 21
Chapter 3: Processes, Process Groups and Knowledge Areas ........................................ 29
3. Processes, Process Groups and Knowledge Areas .................................................................. 30
3.1. Process ........................................................................................... 30
3.2. Project Management Process Group ....................................................... 30
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3.3. Knowledge Areas: .............................................................................. 31
3.4. Process Mapping to Knowledge Areas and Process Groups ............................ 32
Chapter 4: Project Integration Management .................................................................................. 35
4. Project Integration Management ................................................................................................ 36
4.1. Develop Project Charter: .................................................................... 36
4.2. Develop Project Management Plan: ........................................................ 41
4.3. Direct & Manage Project Work: ............................................................. 44
4.4. Monitor and Control Project Work: ........................................................ 50
4.5. Perform Integrated Change Control ........................................................ 55
4.6. Close Project or Phase ........................................................................ 58
Chapter 5: Project Scope Management ............................................................................................ 61
5. Project Scope Management .......................................................................................................... 62
5.1. Plan Scope Management ...................................................................... 62
5.2. Collect Requirements ......................................................................... 65
5.3. Define Scope .................................................................................... 69
5.4. Create WBS ..................................................................................... 71
5.5. Validate Scope.................................................................................. 74
5.6. Control Scope ................................................................................... 76
Chapter 6: Project Time Management ............................................................................................. 80
6. Project Time Management ............................................................................................................ 81
6.1. Plan Schedule Management .................................................................. 81
6.2. Define Activities ............................................................................... 84
6.3. Sequence Activities ........................................................................... 86
6.4. Estimate Activity Resources ................................................................. 91
6.5. Estimate Activity Durations .................................................................. 94
6.6. Develop Schedule .............................................................................. 99
6.7. Control Schedule ............................................................................. 105
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Chapter 7: Project Cost Management ............................................................................................. 111
7. Project Cost Management ........................................................................................................... 112
7.1. Plan Cost Management ...................................................................... 112
7.2. Estimate Cost ................................................................................ 114
7.3. Determine Budget ........................................................................... 119
7.4. Control Costs ................................................................................. 122
Chapter 8: Project Quality Management ....................................................................................... 127
8. Project Quality Management...................................................................................................... 128
8.1. Plan Quality Management .................................................................. 128
8.2. Perform Quality Assurance ................................................................ 132
8.3. Control Quality ............................................................................... 135
Chapter 9: Project Human Resource Management ...................................................................... 140
9. Project Human Resource Management .................................................................................... 141
9.1. Plan Human Resource Management ...................................................... 141
9.2. Acquire Project Team ...................................................................... 145
9.3. Develop Project Team ...................................................................... 147
9.4. Manage Project Team ....................................................................... 151
Chapter 10: Project Communications Management .................................................................... 155
10. Project Communications Management .................................................................................... 156
10.1. Plan Communications Management ...................................................... 156
10.2. Manage Communications ................................................................... 159
10.3. Control Communications ................................................................... 162
Chapter 11: Project Risk Management ........................................................................................... 166
11. Project Risk Management ........................................................................................................... 167
11.1. Plan Risk Management ...................................................................... 167
11.2. Identify Risk .................................................................................. 170
11.3. Perform Qualitative Risk Analysis ........................................................ 175
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11.4. Perform Quantitative Risk Analysis ...................................................... 177
11.5. Plan Risk Responses ......................................................................... 180
11.6. Control Risks .................................................................................. 183
Chapter 12: Project Procurement Management ........................................................................... 187
12. Project Procurement Management ........................................................................................... 188
12.1. Plan Procurement Management ........................................................... 188
12.2. Conduct Procurements ..................................................................... 194
12.3. Control Procurements ...................................................................... 198
12.4. Close Procurements ......................................................................... 201
Close Procurements addresses each agreement applicable to the project or a project
phase. It supports the Close Project or phase process as it involves verification that all
work and deliverables were acceptable. It also involves administrative activities, such
as updating records to reflect final results and archiving such information for future
use. 202
Chapter 13: Project Stakeholders Management .......................................................................... 204
13. Project Stakeholders Management ........................................................................................... 205
13.1. Identify Stakeholders ....................................................................... 205
13.2. Plan Stakeholder Management ............................................................ 207
13.3. Manage Stakeholder Engagement ......................................................... 210
13.4. Control Stakeholder Engagement ......................................................... 213
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Chapter 1: PMP® Examination - At a
Glance
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1. PMP® Examination - At a Glance
This Chapter discusses about as to how a participant of PMP Exam Prep Program would
approach the PMP examination and what are the key information would they need to know.
1.1. About PMI and PMP
Project Management Institute is the world's leading not-for-profit professional
membership association for the project, program and portfolio management
profession. Founded in 1969, PMI delivers value for more than 2.9 million professionals
working in nearly every country in the world through global advocacy, collaboration,
education and research. PMI advances careers, improves organizational success and
further matures the profession of project management through its globally recognized
standards, certifications, resources, tools academic research, publications,
professional development courses, and networking opportunities.
1.2. PMP Exam Preparation Program Objective
Get introduced to the principals of Project Management as per PMI’s Project
Management Body of Knowledge (PMBOK Guide 5th Edition)
Understand the best practices of Project Management as per PMBOK Guide 5th Edition
Understand how to apply this knowledge to day-to-day project management activities
Get introduced to the process of earning PMP certification
Get familiar with the multiple choice questions in line with the PMP Certification
process
Gain the confidence to face the PMP examination challenge
1.3. PMP Exam Prerequisites
Candidates can apply for the examination under any of the below mentioned categories
based on their educational qualification:
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Categories Educational Background Project Management
Experience
Project Management
Education
Category 1 Bachelor‘s Degree or
Global Equivalent
36+ Months
4,500+ Hours 35 Contact Hours
Category 2
High School Diploma
Associate‘s Degree or
Global Equivalent
60+ Months
7,500+ Hours 35 Contact Hours
Project management experience mentioned in both the categories must be from unique
and non-overlapping projects.
Within the specified 4,500/7,500 hours, experience In all 5 performance domain is
required (experience need not be in all 5 performance domains on a single project)
Candidates can satisfy Project Management Education requirement by successfully
completing the training sessions through PMIs Global Registered Education Provider. One
Contact hour of Training Is equivalent 1 Contact Hour.
1.4. PMP Exam Fee
Below table describes the fee structure for various categories:
Exam Category Fee for Members Fee for Non Members
Computer-based Testing USD 405.00 USD 555.00
Paper-based Testing USD 250.00 USD 400.00
Re-examination Computer-
based USD 275.00 USD 375.00
Re-examination Paper-based USD 150.00 USD 300.00
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We recommend candidates to become a member of PMI first, and then apply for PMP
Certification because as a PMI member receive Exclusive Members Discount on PMP exam
fee.
All candidates will be given one year to take the examination. This one-year eligibility
period begins when a candidate’s application is approved.
Candidates will have three opportunities to take and pass the PMP examination within
their one year eligibility period. If candidates do not succeed in 3 attempt, candidates will
have to wait one year from their unsuccessful attempt before being permitted to take the
exam again.
Please log on to Membership section at www.pmi.org and get a complete list of valuable
benefits that help to promote your professional and career development.
1.5. Continuing Certification Requirements
Those who have been granted the PMP credential must demonstrate ongoing professional
commitment to the field of project management by satisfying PMIs Continuing
Certification Requirements Program (CCR). The purpose of the Continuing Certification
Requirements Program is to:
1) Sustain the PMP as a global credential.
2) Enhance the ongoing professional development of PMPs
3) Encourage and recognize individualized learning opportunities
4) Offer a standardized and objective mechanism for attaining and recording
professional development activities
The CCR program supports the ongoing professional development of PMI certified PMPs
and the maintenance of PMP Certification.
PMPs must attain minimum of sixty (60) Professional Development Units (PDUs) during each
CCR cycle of 3 years.
Up to 18 excess PDUs earned during the final year of the current CCR cycle can be
transferred to next CCR cycle.
PMPs who fail to satisfy the continuing certification requirements prior to the completion
of their cycle have 12 months from the cycle expiration to do SO. During this time their
PMP certification will remain suspended.
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On completion of suspension period of 12 months, PMI will revoke the certification of a
PMP not satisfying the CCR program requirements.
To renew the PMP certification, candidates will be charged renewal fee once during the
CCR cycle. Payment will be required with submission of the application for Certificate
renewal after PMP has earned the required PDUs. Amount of renewal fee:
1) US $120 for PMI members
2) US $150 for non-members
1.6. PMP Examination Format and Passing Score
The PMP Certification examination consist of 200 multiple choice questions. The 4 hours
examination administration is preceded by a briefing and 15 minute computer tutorial.
25 Pretest questions (also known as dummy questions) will be randomly placed throughout
the examination to gather statistical information on the performance of these questions
in order to determine whether they may be used on future examinations. These 25 pretest
questions are included in the 200-question but will not be included in the pass/fail
determination. Candidates will be scored on 175 questions.
To pass the PMP examination, candidates must correctly answer a minimum of 106 of the
175 scored questions.
Examination is followed by an optional candidate satisfaction survey. At completion, exam
result is shown on the screen and score report is handed over to candidate at the
examination center. For a detailed blueprint of the examination, please review PMP
Handbook provided in the certification area of the PMI Web site.
Upon completion of the test, the examination contractor will immediately provide
candidates with a printed copy of results indicating pass or fail status.
1.7. Topics of PMP Examination
Revised PMP certification examination will cover knowledge in five process groups/domain
with respective percentage of questions:
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Domain Distribution of
Questions
Initiation 13%
Planning 24%
Execution 30%
Monitoring and
Controlling 25%
Closing 8%
1.7.1. Initiation (13%)
1) Conduct project selection methods
2) Define preliminary project scope
3) Identify initial project risks, assumptions, and constraints
4) Identify key stakeholder
5) Develop project charter
6) Get project charter approval
1.7.2. Planning (24%)
1) Document detail project scope, constraints and assumptions
2) Identify project team and define roles and responsibilities
3) Create the WBS
4) Estimate project effort, cost
5) Develop project schedule
6) Develop change management plan
7) Identify risks and define risk strategies
8) Obtain plan approval
9) Baseline project plan
1.7.3. Execution (30%)
1) Perform tasks defined in project plan
2) Perform activities to build effective project team
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3) Implement the procurement of project resources
4) Manage resource allocation
5) Perform quality assurance
6) Implement approved changes
7) Implement approved actions and workarounds
8) Improve team performance
9) Distribute information to stakeholders
1.7.4. Monitoring and Controlling (25%)
1) Measure project performance
2) Analyze root causes for performance variance
3) Suggest corrective and preventive action
4) Verify and manage changes to the project
5) Ensure project deliverables conform to quality standards
6) Monitor all risks
1.7.5. Closing (8%)
1) Get final acceptance for the project
2) Obtain financial, legal, and administrative closure
3) Identify, document and communicate lessons learned
4) Create and distribute final project status report
5) Archive arid retain project records
6) Measure customer satisfaction
7) Release project resources
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Chapter 2: Project Management
Foundation – Framework, Lifecycle
& Organization
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2. Project Management Foundation – Framework, Lifecycle &
Organization
This chapter lays the foundation upon which entire set of knowledge areas are built. In this
chapter you are going to learn about the Project, Project Management Framework, what
are the factors that can have an impact on a project and also how the role and powers of
project manager changes in different organizational structures?
Topics covered in this chapter are highly important with respect to PMP examination as
questions coming from these areas will gauge your understanding of project organization,
relationship between various endeavors of an organization (project, program &
portfolio)and key project roles (stakeholders, sponsor and project manager).
2.1. What is a Project?
Project is defined as:
“A temporary endeavor undertaken to create a unique product, service or result.”
A project can thus be defined in terms of its specific characteristics. Temporary means that
every project has a definite beginning and a definite end. Unique means that the product
or service is different in some distinguishing way from all other products or services. For
many organizations, projects are a means to respond to those requests that cannot be
addressed within the organizations normal operational limits. Product or service
characteristics are progressively elaborated.
How Temporary?
It has a definite beginning and end, it is not an ongoing effort.
it comes to an end when objectives have been met
Project Team members are released on completion of the Project
How Unique?
End result or product or service is different in some way from the other product, service
or result. For example: Within a Housing complex, each type of flat has different designs,
facilities and features to differentiate their end characteristics -mosaic with teak wood
finish or marble with teak wood finish or red-oxide flooring with forest wood finish.
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Progressive Elaboration
Progressive elaboration is a characteristic of projects that combines the concepts of
temporary and unique. Because the product of each project is unique, the characteristics
that distinguish the product or service must be progressively elaborated. Progressively
means “proceeding in steps; continuing steadily by increments.”
Project become existent for solving an existing problem or a need came from market or
social need or technological change or business need or cultural change or organizational
need or environmental change, or a customer request or a Legal requirement, etc. All the
companies, institutions or establishments perform certain work which generally involve
either projects or operations. Both Projects and Operations own the following
commonalities:
Performed by People
Constrained by scarce resources
Planned, executed and controlled
2.2. Projects vs. Operations
Projects and Operations vary primarily as projects are temporary and unique while
operations are repetitive and ongoing. The characteristics of the Projects and Operations
are given below:
Project Operations
Create Own charter, organization and
goals
Semi-permanent charter, organization
and goals
Catalyst for change Maintains status quo
Unique product or service Standard Product or service
Heterogeneous teams Homogeneous teams
Start and End Date are defined On-going and repetitive
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2.3. What is Project Management?
Project Management - PMBOK® Definition:
“Project management is the application of knowledge, skills, tools, and techniques to
project activities to meet the project requirements.”
Project management is accomplished through the use of PM processes such as: initiating,
planning, executing, controlling, and closing (IPECC). The project team manages the work
of the projects, which typically involves:
Competing demands for scope, time, cost, risk, and quality
Stakeholders with differing needs, wants, risk tolerances and expectations
Identified requirements
It is important to note that many of the processes within project management are iterative
in nature. This is in part due to the existence of arid the necessity for progressive
elaboration in a project throughout the project life cycle; i.e., the more you know about
your project, the better you are able to manage it. The term project management is
sometimes used to describe an organizational approach to the management of ongoing
operations. This approach, more properly catted management by projects, treats many
aspects of ongoing operations as projects to apply project management techniques to them.
2.4. Project Constraints
The key challenge in the project management is to successfully manage the project while
striking the right balance among the various project elements. These elements are also
known as “Constraints”. Some of the key constraints are Scope, Time, Cost, Quality, Risk
and Resources etc. These constraints work in tandem with each other.
When one of the constraints is changed, it will
have a direct or indirect impact on other
constraints. For example if the customer is
asking to make some additions in the previously
agreed product features, it is likely to have an
impact on project cost and schedule. A change
in Scope, Time or Cost can increase the risk
associated with the project.
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2.5. Project Stakeholders
Project stakeholders are individuals and organizations that are actively involved in the
project, or whose interests may be positively or negatively affected as a result of project
execution or project completion, they may also exert influence over the project and its
results.
The project management team must identify the stakeholders, determine their
requirements, and then manage and influence those requirements to ensure a successful
project. Stakeholder identification is often happens to be difficult.
For example: Escalation in cost of input materials may threaten Construction worker’s
future and continuous employment. Some of the key stakeholders common in almost every
projects are identified below:
Sponsor
Project manager
Project team members
Customer
Sellers/Contractors
Government agencies
The naming or grouping of stakeholders primarily helps identifying which individuals and
organizations consider themselves as stakeholders. Stakeholder roles and responsibilities
may overlap, for example a customer playing a role of a sponsor and customer.
2.6. Competencies of Project Manager
Project manager is responsible for overall success of the project within the constraints of
scope, time, cost, quality, risk, resources and other key constraints. Project stakeholders
have a significant impact on these constraints hence it becomes crucial for project manager
to manage the stakeholders effectively for successful delivery. In past few years, industry
has witnessed unprecedented dynamics as organization respond to increasing completion
within complex project environment.
With such a changing working climate project managers find themselves confronted by
issues that have traditionally not been a part of their responsibilities. To deal with those
issues, they must acquire certain specific skills which will result in effective management
of the projects.
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2.6.1. Interpersonal skills
People Management, relationship creation and retention are of today’s order of the day
with internal customer, external customers, external agencies, governmental agencies,
society, and stakeholders. interpersonal skills are of paramount important in order to
be successful In today’s competitive, mechanical, fast-phased, demanding environment,
coupled with a diverse workforce, call for significant amounts of people management
skills, e.g.:
Listening and conversational skills
Leading team members
Relationship building and maintenance
Influencing individuals and organizations without formal authority
Understanding and integrating the efforts of a diverse workforce
2.7. Project Management Context: Related Endeavors
Certain types of endeavors are closely related to projects. There is often a hierarchy of
strategic plan, program, project, and subproject, in which a program consisting of several
associated projects will contribute to the achievement of a strategic plan.
2.7.1. Program
A program is a group of projects managed in a coordinated way to obtain benefits not
available from managing them individually. Many programs also include elements of
ongoing operations. For Example:
The “Integrated Guided Missile Project” includes a group of projects to design and
develop the missiles, as well as the ongoing manufacturing and support of that
missiles in operation.
Many Software and related firms have program managers who are responsible for
both individual product releases (projects) and the coordination of multiple
releases over time (an ongoing operation)
Programs may also involve a sense of repetitive or cyclical undertakings: for
example:
Testing or Quality audit are classical cases, where the product or components or
piece of software code should meet the predetermined standards or test/quality
criteria.
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Many voluntary organizations have a “resource mobilization programs,” an ongoing
effort to obtain requisite support that often involves a series of discrete projects,
such as a membership drive or an auction or sponsorship or conferences or
programs.
2.7.2. Portfolio Management
Portfolio management refers to the selection and support or projects or program
investments. These investments in projects and programs are guided by the
organization’s strategic plan arid available resources. Organizations manage their
portfolios based on specific goals. With Portfolio Management, organizations can
maximize the value of the portfolio by careful examination of various projects or
programs for inclusion in portfolio arid timely exclusion of projects not meeting the
portfolio’s strategic business objectives.
2.7.3. Sub-projects
Components of a project that are often contracted out is known as subproject. Projects
are frequently divided into more manageable components or subprojects. Subprojects
are often contracted to an external enterprise or to another functional unit in the
performing organization. Subprojects are based on the project process, such as a single
phase. Subprojects according to human resource skill requirements, such as the
installation of plumbing or electrical fixtures on a construction project or testing of
software by a skilled employee, etc.
2.7.4. Project Management Office (PMO)
A project management office (PMO) is an organizational unit to centralize and
coordinate the management of projects under its domain. A PMO can also be referred
to as a ‘program management office,” “project office.” or “program office.”
A PMO oversees the management of projects, programs, or a combination of both. The
projects supported or administered by the PMO may or may not be related other than
by being managed together. Some PMOs, however, do coordinate arid manage related
projects. In many organizations, those projects are indeed grouped or are related in
some manner based on the way the PMO will coordinate and manage those projects.
The PMO focuses on the coordinated planning, prioritization and execution of projects
and sub-projects that are tied to the parent organization’s or client’s overall business
objectives.
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2.8. Purpose of Project Management
The purpose of project management is to plan, manage and control activities so that the
project is successfully completed fulfilling the objective of customer and the performing
organization. The need for project management was never so important considering some
of the key following factors:
2.8.1. Intense competition in the global market place
Worldwide markets face incense competition from transnational, multi-national and
developing economies whose aim is to globalize all the countries’ economies across the
world. Such intense competition demands ready to market, what to build, whore to
build, how to build various products and services for global markets and communicate
with customers and other stakeholders. It is also challenging for all the global
corporations Lo manage their specialists and support human resources, and also manage
the challenges of marketing products and services and meeting the distribution needs.
2.8.2. Availability of human knowledge
With the availability of abundant human knowledge, specific knowledge is called for
solving specific/relevant problems associated with the development, production and
distribution of goods and services by ever increasing number of academic disciplines.
This expands the horizon of different types of projects that people can think of and put
thru. For Example, “Construction of a Technology Park requires multi-skilled human
resources with knowledge in the areas of civil, mechanical, electrical, water
management, environmental engineering, and Information Technology.
2.8.3. Increased demand for goods and services globally
With the explosion of population and globalization of world economy, all the
products/service providers are out in the market to fulfill ever-growing demand
throughout the world for a broad range of scientific, electronics, personal, industrial
inputs, raw materials, semi-finished, sophisticated, customized goods and services.
Consumerism is the keyword which has taken the world by storm. Meeting such rapidly
changing demands require design flexibility, coordination of group efforts, and change
control into all manufacturing and well entrenched distribution chain for supply of goods
and services with superior quality attributes and delivery on time, all the time.
There is also a demand for existing mass produced products which, needs a presence of
PM processes and a qualified project head. To give an example, moving factories
overseas to reduce manufacturing and shipping costs and to gain a physical presence in
where to
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an expanding market. Information Technology plays a major role in unifying the
manufacturer with their customer sitting elsewhere in the world and also satisfies their
need without customer or manufacturer meeting face to face with each other.
2.8.4. Requirement of teams instead of individuals
In the current trend, skill & knowledge and ability needed are not generally found to be
available in a single person and thus it is necessary to have a team, which possesses such
spectrum of skills/knowledge/ability to meet the customer needs or resolving a complex
problem. To successfully complete the large complex multinational projects, it is
essential that the team with varied skills and disciplines work together, within
organization structure, distant locations or contract entities, or combination of all.
2.9. Factors that have impact on Projects
The factors that affect a project's success include Type of Organization, processes,
knowledge, leadership style, culture, PM Information System and effective communication
etc. Each of these factors should be examined thoroughly as they will have a significant
impact on the project outcome. While several of these topics are covered in detail in the
later part of this handbook, this section explains how maturity of the organization with
respect to following elements can impact the project significantly:
2.9.1. Organizational Culture and Style
These cultures and styles are reflected in numerous factors:
Shared values, norms, beliefs, and expectations
Policies and procedures
View of authority relationships
Work ethics and work hours
2.9.2. Organizational Structure
The structure of any organization represents the hierarchy of people and its functions.
It sets the level of authority, roles and responsibilities and the reporting structure within
the project. Based on the nature of the business, organizations tend to adopt one of the
three types of structures for effective control on the day to day operational and project
management related work. Organizational structure define what level of authority and
control project manager can exercise on their team and how much decision making
power they will have with respect to the project.
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Following are the three types of organization structures that can be observed in
organizations:
2.9.2.1. Functional Organization
Functional organizations are made up of units or division based on the types of
businesses and their associated responsibility. This type of organizational structure
has clear reporting hierarchy and communication channels. Skills of the team
members are specific to the staff in a function/department and projects/project
team are specific to the function/department. Communication between
departments takes place through functional managers down to the project team and
Project manager may be known as a project coordinator or team leader.
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2.9.2.2. Projectized Organization
Organizations that derive revenue from performing projects for others fall under this
type. In Projectized Organizations, project manager works full time on the project
with his team and has complete or close to complete power over the project team.
Project Manager may have full time administrative staff to help expedite the project
and entire team reports directly to project manager
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2.9.2.3. Matrix Organization
Matrix organization is a blend of Functional and Projectized organization types. It
can be divided into three types:
2.9.2.3.1. Weak Matrix
Weak matrix structures map closely to a functional structure. Project team may
come from different departments, but the project manager reports directly to a
specific functional manager. Project manager has very limited authority in the
project and he is not more than a project coordinator.
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2.9.2.3.2. Balanced Matrix
A balanced matrix structure has many of the same attributes as a weak matrix,
but the project manager has more time and control over the project and shares
power with the functional manager. Team members generally face time-
accountability issues in this type of organization as they have dual reporting to
Functional Manager as well as Project manager.
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2.9.2.3.3. Strong Matrix
Strong matrix organization, has several attributes similar to the Projectized
organization. Project manager gains more control over resources and their time
when it comes to project work and he has little more authority than functional
managers when it comes to the project. The project team may also have more
time available for the project even though they may come from different
departments
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Comparison of Matrix Structures:
Below table illustrates the comparison of various elements in different types of Matrix
structure:
PM’s
Type
Of Matrix
Title Focus Authority Time Reports into
Weak
Matrix
Project
Coordinator /
Project Leader
Split between
project and
functional
Minimal Part time on
project
Functional
Manager
Balanced
Matrix
Project
Manager
Project work Balanced Full time on
project
Functional
Manager but
shares power
for project
Strong
Matrix
Project
Manager
Project work Complete Full time on
project
Manager of
projects
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2.9.2.4. Composite Organization
Composite organizational structure is an ad-hoc structure that is created to manage
a high-priority project for its duration. This type of project team organization consist
of highly skilled resources from various functions/departments and they report
directly to project managers for the project duration.
2.9.3. Project Management Information System
The project management system is the set of tools, techniques, methodologies,
resources, and procedures used to manage a project. PMS ensures consistency in
application and continuity on the various projects being performed. To facilitate the
project management activities, most of the organizations develop PMS that can include
automated tools, such as a scheduling software tool, configuration management system,
information collection and distribution system, or web interfaces to other online
automated systems.
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Chapter 3: Processes, Process
Groups and Knowledge Areas
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3. Processes, Process Groups and Knowledge Areas
This chapter provides an overview of the ten PMBOK® Guide Project Management
Knowledge Areas and the associated 47 processes and how they are aligned to 5 process
groups. Topics covered in this chapter provides an overview of the structure on which all
the later chapters are based.
3.1. Process
Process is defined as:
“A set of interrelated actions and activities performed to create a pre-specified product,
service, or result. Each process is characterized by its inputs, the tools and techniques that
can be applied, and the resulting outputs.”
Project Management is done with the help of Processes. Project team identifies the
processes that needs to be followed to meet/comply with project requirements while
balancing the triple constraints of a Project. A process is made up of Inputs, Tools &
Techniques and Outputs. Information or data is received from various sources in Inputs,
analyzed using specified Tools & Techniques and Output is churned out. Output of one
process can be an Input to other process(es). PMBOK Guide – 5th Edition has listed 47
processes spread across different knowledge areas and process groups. All processes
interact with each other throughout the project via their Inputs and Outputs. To manage a
project successfully, project team must manage and guide these interactions.
3.2. Project Management Process Group
Each project has a lifecycle and each phase of lifecycle is made up of certain distinctive
processes. The PMBOK guide outlines the interaction between the processes and the purpose
they serve. The logical grouping of these processes is called as process Groups and they
provide the logical sequence of steps and are aggregated into five process groups:
Initiating: Define and authorize the project or a project phase.
Planning: Define & refine objectives and plans the course of action required to attain
the project objective.
Executing: Integrate resources to carry out the project management plan for the
project.
Monitoring and Controlling: Measure and monitor progress to check if the any
corrective action is needed to meet project objectives.
Closing: Formalize acceptance of the product, services, or result and bring the project
or a project phase to an administrative end.
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PMBOK Guide - Fifth Edition provides a best-practice approach to handle project
management challenges across domains at all levels. The integrative approach of five
process groups yields positive results for if the project manager or team understand how
the five different process groups overlap throughout all phases of the project.
3.3. Knowledge Areas:
PMBOK Guide 5th Edition has formed set of processes based on specialized and focused
area. These processes together accomplish project management functions. There 10
distinctive focus areas are called Knowledge Areas and each knowledge area includes a
detailed description of processes associated with that area. The following list gives a brief
description of each of the Knowledge Areas:
Project Integration Management: Integrate different aspects of project.
Project Scope Management: Describes the processes required to ensure that the
project includes all the work required, and only the work required, to complete the
project successfully.
Project Time Management: Describes the processes required to ensure timely
completion of the project.
Project Cost Management: Describes the processes required to ensure that the
project is completed within the approved budget.
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Project Quality Management: Describes the processes that assure that the project
meets its quality goal satisfies the needs for which it was undertaken.
Project Human Resources Management: Describes the processes required to obtain
and manage the people and to make the most effective use of them.
Project Communication Management: Describes the processes required to ensure
timely and appropriate generation, collection, dissemination, storage and ultimate
disposition of project information.
Project Risk Management: Describes the processes concerned with identifying,
analyzing, and responding to project risk.
Project Procurement Management: Describes the processes required to acquire
goods and services from outside the performing organization.
Project Stakeholders Management: Describes the processes required to identify
people involved with the project and manage their expectations effectively.
3.4. Process Mapping to Knowledge Areas and Process Groups
The 47 processes in PMBOK Guide – 5th Edition are grouped into 5 process groups mentioned
above and they are spread across 10 Knowledge areas. This mapping reflects the logical
integration and interaction among the individual processes. Process groups club together
the processes that are relevant to respective functional area during specific project phase.
Following table shows mapping of 47 processes to process groups and knowledge areas:
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing Monitoring and
Controlling
Closing
4. Project
Integration
Management
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project Work
4.4 Monitor and Control Project Work
4.5 Perform Integrated Change Control
4.6 Close Project or Phase
5. Project
Scope
Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.5 Validate Scope
5.6 Control Scope
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5.4 Create WBS
6. Project
Time
Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Resources
6.5 Estimate Activity Durations
6.6 Develop Schedule
6.7 Control Schedule
7. Project
Cost
Management
7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project
Quality
Management
8.1 Plan Quality Management
8.2 Perform Quality Assurance
8.3 Control Quality
9. Project HR
Management
9.1 Plan Human Resource Management
9.2 Acquire Project Team
9.3 Develop Project Team
9.4 Manage Project Team
10. Project
Communicatio
n Management
10.1 Plan Communications Management
10.2 Manage Communications
10.3 Control Communications
11. Project
Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6 Control Risks
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12. Project
Procurement
Management
12.1 Plan Procurement Management
12.2 Conduct Procurements
12.3 Control Procurements
12.4 Close Procurements
13. Project
Stakeholder
Management
13.1 Identify Stakeholders
13.2 Plan Stakeholder Management
13.3 Manage Stakeholder Engagement
13.4 Control Stakeholder Engagement
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Chapter 4: Project Integration
Management
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4. Project Integration Management
Project Integration Management includes the processes and activities to identify, define,
combine, unify, and coordinate the various processes and project management activities
within the Project Management Process Groups.
The PMBOK Guide – 5th Edition.
Project Integration Management consist of high level process which are performed to ensure
all the elements of the project are properly coordinated. It involves controlling changes to
the overall project and making tread offs to ensure stakeholder’s objectives are being met.
Project Integration Management is comprised of following processes:
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
4 Project
Integration
Management
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project Work
4.4 Monitor and Control Project Work
4.5 Perform Integrated Change Control
4.6 Close Project or Phase
4.1. Develop Project Charter:
Develop Project Charter is the first process to be carried out in any project. Developing the
Project charter is primarily concerned with documenting the business needs, project
justification, current understanding of the customer’s requirements, and the new product,
service, or result that is intended to satisfy those requirements.
A project can be linked to the ongoing work of the organization by preparing the project
charter. In some organizations, a project is not formally chartered and initiated until
completion of a needs assessment, feasibility study, preliminary plan, or some other
equivalent form of analysis that was separately initiated.
An illustration of Inputs, Tools & techniques and Outputs of this process is given below:
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Develop Project Charter
Inputs Tools and Techniques Outputs
Project Statement of
Work
Business Case
Agreements
Enterprise Environmental
Factors
Organizational Process
Assets
Expert Judgment
Facilitation Techniques
Project Charter
4.1.1. Develop Project Charter - Inputs
4.1.1.1. Project Statement of Work
The project management system is the set of tools, techniques, methodologies,
resources, and procedures used to manage a project. PMS ensures consistency in
application and continuity on the various projects being performed.
To provide clear directions to project management team, products or services to be
supplied by the protect arc described in the Statement of Work (SoW). The project
initiator or sponsor provides the SoW based on business needs, product, or service
requirements for internal projects whereas the statement of work can be received
from the customer as part of a bid document for external projects, for example,
request for proposal, request for information, request for bid, or as part of a
contract.
The SoW contains the product requirements and characteristics of the product or
service that the project will be undertaken to create. Since the product
characteristics are progressively elaborated, the product requirements will have
fewer details during the initial process and more details during later processes.
These requirements must also document the relationship among the products or
services being created and the business need or other stimulus that causes the need.
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Even though the form and substance of the product requirements document will
vary, it should always be detailed enough to support later project planning
processes.
4.1.1.2. Business need
Projects are identified and chartered for various business needs from different
quarters. A societal problem could become a project for a service provider or new
group users seeking a new product or an extension of the old product or
technological change creating a new business opportunity (mobile phone, digital
camera or metro rail system or MRTS system, etc.) Or a marketing company
authorizing a “market research’ project to validate market response to the “release
of new product line into the market”. Some of such needs are illustrated below:
Request from a Customer: A mobile company authorizing a project to
put up towers to serve a new township.
A market demand: A railway company authorizing a project to build
underground train to reduce the surface travel time.
A technological advance: With the advent of digital cameras and its
advantage over the conventional camera, the need for digital camera has
created a new business opportunity among individual, professional, movie and
all other users of camera around the globe.
A legal requirement: Example: Government’s Legal requirement for the
textile/garment manufacturers to implement “water treatment plant” to reduce
the toxic effluent getting into water bodies and cultivable land. This
implementation will be taken as a project by the garment manufacturers to meet
such Legal need.
A social need: Example: Rotary Club engaged ¡n authorizing projects to
alleviate social needs Like “HIV/AIDS awareness campaign”, “Blood Bank
Camps”, ‘Education for underprivileged children” in the rural and semi-urban
areas.
The above requirements may be known as problems, opportunities, or business
requirements. The central theme of all the requirements is that management must
make a decision about how to respond and what projects to authorize and charter,
Project selection methods involve measuring value or attractiveness to the project
owner or sponsor and may include other organizational decision criteria. Project
selection also applies to choosing alternative ways of executing the project.
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4.1.1.3. Agreements
If the project is being done for an external customer, a contract from the customer
is treated as an Input.
4.1.1.4. Enterprise Environmental Factors
Project’s success is influenced and surrounded by the organization’s enterprise
environmental factors and systems which must be considered when developing the
project charter. This includes following items:
Organizational Culture and Structure: Culture is a “shared value’ among the
entire workforce and the structure indicates as to how the whole company’s
functional framework is in place with appropriate communication channels and
approval levels. Complex structure will itself be a constraint for the organization
to pull through successful project completion. Whereas projectized organization
having fiat organization structure” will more amenable to the project Success.
Governmental or industry standards: Regulatory agency regulations, product
standards, quality standards, and workmanship standards etc. are some example
of governmental or industry standard which has an impact on project planning
and execution. ISO 9001:2000 or BIS 150(X), CMMIor Six Sigma are considered
the Quality standards and governmental regulations like FEMA or product
standards like ISI or Agmark are the key factors to be considered while
developing project charter.
Organizations’ human capital: Technical, managerial and administrative skills,
functional discipline, and knowledge, such as product design, service framework
development, secretarial, Legal, logistics, inventory management, supply chain
management, quality management, business process knowledge etc.
Market Condition and Global Competition: The intensity of the project
increases or decreases based on the fact that as to which market the company
competes with and what is the intensity of the competition in that market
segment. To give a simple example, if the company is engaged in high intensity
zone where it is expected to meet consistently the customers (coming from
different segments with product variants, per se a challenge to meet with.
Therefore, in such organizations the project teams’ success of product
development is a paramount importance foe company’s survival. On the
contrary, if the company’s existence in a market is, by and large less intensive
and thus the project teams’ will have a different intensity to work with.
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Project Management Information System: Project Management Information
Systems (PMIS) is a collection of tools such as a scheduling software tool,
configuration management system, information collection & distribution
system, or web interfaces to other online automated systems.
4.1.1.5. Organizational Process Assets
All or any of the assets that may influence the project’s success can be drawn from
organizational process assets during the development of the project charter and
subsequent project documentation. Effects of the formal and informal policies,
procedures, plans, and guidelines, followed by performing and involved
organizations in the project must be considered. Organizational process assets also
represent the organization’s learning and knowledge from previous projects, for
example, completed schedules, risk data, and earned value data. Organizational
Process Assets can be grouped into following two categories:
1) Organization’s processes and procedures for carrying out the work
2) Organizational knowledge base for storing and retrieving information
4.1.2. Develop Project Charter – Tools and Techniques
4.1.2.1. Expert Judgment
Access to the inputs require to develop the project charter is often provided by
Expert Judgment. Such judgment and expertise is applied to any technical and
management details during this process. Such expertise is provided by any group or
individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
4.1.2.2. Facilitation techniques
Facilitation techniques is one of the most commonly used Tools & Techniques used
to help teams and individuals to brainstorm, resolve conflicts, solve problems and
manage the meetings. In Develop Project Charter process facilitation techniques
are used to collaborate the efforts of stakeholders to translate the requirements of
the customers to high-level objectives.
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4.1.3. Develop Project Charter – Outputs
4.1.3.1. Project Charter
The only output of this process is “Project Charter” which is released by the Senior
Management Executive either the Sponsor or the initiator to signify that the project
or its phase becomes in existence and also authorize the Project Manager to utilize
organization’s resources, people, machine, materials and money to achieve project
objectives. The senior management executive identifies a Project Manager and
assigns the project to project manager by formally handing over the project charter.
Project charter provides high-level overview of the project. It may include following
details:
Project Title
Project Description
Objectives
Project Scope Overview
Major Deliverables
Key Milestones
Business Case
Financial Benefits
Top Management’s Approval
Project Manager’s Acceptance
4.2. Develop Project Management Plan:
The process of defining how a project is planned should be executed, monitored and
controlled and closed is called as The Develop Project Management Plan. It includes the
actions necessary to define, integrate, and coordinate all subsidiary plans. The project
management plan content may vary depending upon the application area and complexity of
the project. This process results in a project management plan that may be updated and
revised through the Integrated Change Control process.
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Develop Project Management Plan
Inputs Tools and Techniques Outputs
Project Charter
Outputs From Other
Processes
Enterprise Environmental
Factors
Organizational Process
Assets
Expert Judgment
Facilitation Techniques
Project Management
Plan
4.2.1. Develop Project Management Plan – Inputs
4.2.1.1. Project Charter
Described in section 4.1.3.1. Project Charter provides the reference to start the
detailed project planning processes.
4.2.1.2. Output from other processes
The primary objective of Develop Project Management Plan process is to combine
and unify output from other planning processes. All the subsidiary plans and
baselines that are created in all relevant knowledge areas are unified and combined
in this process.
4.2.1.3. Enterprise Environmental Factor
The enterprise environmental factors that can influence the Develop Project
Management Plan process include:
Governmental or industry standards
Project management body of knowledge for vertical market
Project management information system
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4.2.1.4. Organizational Process Assets
Organizational process assets provides a list of policies, procedures, and guidelines,
controls procedures, Historical information and lessons learned knowledge bases
that is used as a key input in developing the Project Management plan.
4.2.2. Develop Project Management Plan – Tools and Techniques
4.2.2.1. Expert Judgment
Expertise is needed to develop project management plan can provided by any group
or individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
4.2.2.2. Facilitation Techniques
Facilitation techniques is one of the most commonly used Tools & Techniques used
to help teams and individuals to brainstorm, resolve conflicts, solve problems and
manage the meetings.
4.2.3. Develop Project Management Plan – Output
4.2.3.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. Each of the subsidiary plans and
components is detailed to the extent required by the specific project. These
subsidiary plans include:
Project Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan (Including Process Improvement Plan)
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan
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Stakeholders Management Plan
These subsidiary plans may contain the following components:
Resource Calendar
Cost Baseline
Milestone List
Schedule Baseline
Quality Baseline
Risk Register
4.3. Direct and Manage Project Work:
In order to accomplish the work defined r the project scope statement, the project manager
and the project team need to execute the project management plan performing multiple
actions defined in this process. Some of these actions are:
Perform activities to accomplish project objectives
Expend effort and spend funds to accomplish the project objectives
Hire, train and manage the project team members assigned to the project
Obtain quotations, bids, offers, or proposals as appropriate
Select sellers by choosing from among potential setters
Obtain, manage, and use resources including materials, tools, equipment’s and
facilities
Implement the planned methods and standards
Manage sellers
Incorporate approved changes into the project’s scope, plans, and environment
Establish and manage project communication channels, both external and internal
to the project team
Collect project data and report cost, schedule, technical and Quality progress, and
status information to facilitate forecasting
Collect and document Lessons learned, and implement approved process
improvement activities.
The project manager manages the various technical and organizational interfaces that exist
within the project and directs the performance of the planned project activities along with
the project management team. The project application area generally affects the Direct
and Manage Project Work process directly. The project work planned and scheduled in the
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project management plan to accomplish Deliverables are outputs from the processes. Work
performance information about the completion status of the deliverables, and what has
been accomplished, is collected as part of project execution and is fed into the performance
reporting process.
Although the products, services, or results of the project are frequently in the form of
tangible deliverables such as buildings, roads, etc. and intangible deliverables, such as
training, can also be provided. Direct and Manage Project Work also requires
implementation of:
Approved corrective actions that will bring anticipated project performance into
compliance with the project management plan.
Approved preventive actions to reduce the probability of potential negative
consequences.
Approved defect repair requests to correct product defects found by the quality
process.
Direct & Manage Project Work
Inputs Tools and Techniques Outputs
Project Management
Plan
Approved Change
Requests
Enterprise
Environmental Factors
Organizational Process
Assets
Expert Judgment
Project Management
Information System
Meetings
Deliverables
Work Performance Data
Change Requests
Project Management Plan
update
Project Document
Update
4.3.1. Direct and Manage Project Work – Inputs
4.3.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. Each of the subsidiary plans and
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components is detailed to the extent required by the specific project. These
subsidiary plans include:
Project Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan (Including Process Improvement Plan)
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan
Stakeholders Management Plan
These subsidiary plans may contain the following components:
Resource Calendar
Cost Baseline
Milestone List
Schedule Baseline
Quality Baseline
Risk Register
4.3.1.2. Approved Change Request
In order to expand or contract project scope, authorized changes are documented
Change Requests that can also modify policies, project management plans,
procedures, costs or budgets, or revise schedules. Approved change requests are
scheduled for implementation by the project team.
4.3.1.3. Enterprise Environmental Factor
The Direct and Manage Project Work process is influenced by enterprise
environmental factors that include:
Organizational, company, or customer culture and structure of the performing
or sponsor organizations
Infrastructure
Personnel administration
Stakeholder risk tolerances
Project management information system
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4.3.1.4. Organizational Process Assets
Organizational process assets provides a list of policies, procedures, and guidelines,
controls procedures, Historical information and lessons learned knowledge bases
that is used as a key input in developing the Project Management plan.
4.3.2. Direct and Manage Project Work – Tools and Techniques
4.3.2.1. Expert Judgment
Expertise is needed to Direct and Manage Project work can provided by any group or
individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
4.3.2.2. Project Management Information System
Standardized set of automated toots available within the organization are integrated
into a system that is catted as the Project Management Information System (PMIS).
The PMIS is used by the project management team to support generation of a project
plan, facilitate feedback as the document is refined, control changes to the project
plan, and release the approved document.
4.3.2.3. Meetings
While directing and managing project work, project manager, project team and
stakeholders may need to conduct meetings to discuss and address pertinent topics
of the project. Meetings are tend to be one of three types:
Information Exchange
Brainstorming, option evolution or design or
Decision making
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Actions for Direct & Manage project Work
Implementing the Project Plan
Completing work packages
Achieving expected work results
Committing project resources as per Project Plan
Monitoring project progress against project baseline
Implementing corrective or preventive actions
Guiding, leading and assisting project team, communicating and
negotiating with stakeholders
Holding team meetings
Identify changes needed to be handled in Integrated Change Control
process
Implementing Quality Assurance procedures
4.3.3. Direct and Manage Project Work – Outputs
4.3.3.1. Deliverables
Any verifiable product, service or result (or part of it) which is identified in the
project management planning documentation is considered as deliverable which
must be produced and provided to complete the project.
4.3.3.2. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes work
completed, KPIs, start/finish dates of activities, number of defects, actual duration
and cost etc.
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4.3.3.3. Change Requests
While the project work is being performed requests for direct or indirect charges to
expand or reduce project scope, to modify policies or procedures, to modify project
cost or budget, or to revise the project schedule are often identified and
documented as requested changes. Requests for a change can be, externally or
internally initiated, and can be optional or legacy/contractually mandated.
4.3.3.4. Project Management Plan update
Elements of the project management plan that may be updated include, but are not
limited to:
Scope management plan,
Requirements management plan,
Schedule management plan,
Cost management plan,
Quality management plan,
Process improvement plan,
Human resource management plan,
Communications management plan,
Risk management plan,
Procurement management plan,
Stakeholder management plan, and
Project baselines.
4.3.3.5. Project Document Update
Project documents that may be updated include, but are not limited to:
Requirements documentation,
Project logs (issues, assumptions, etc.),
Risk register, and
Stakeholder register.
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4.4. Monitor and Control Project Work:
To monitor project processes associated with initiating, planning, executing, and closing,
the Monitor and Control Project Work process is performed. Corrective or preventive actions
are taken co control the project performance. One of the aspect of project management
performed throughout the project is monitoring that includes collecting, measuring, and
disseminating performance information, and assessing measurements & trends to influence
process improvements. Continuous monitoring identifies any areas that can require special
attention and gives the project management team insight into the health of the project.
The Monitor and Control Project Work process is concerned with:
Comparison of actual project performance with the project management plan
Recommending corrective or preventive actions as necessary by assessing
performance to determine if any are indicated.
Make sure that the risks are Identified by analyzing, tracking, and monitoring project,
their status is reported and appropriate risk response plans are being executed
Maintaining an accurate, timely information base concerning the project’s product(s)
and their associated documentation through project completion
Providing information to support status reporting, progress measurements, and
forecasting
Providing forecasts to update current cost and current schedule information
Monitoring Implementation of approved changes when and as they Occur,
Monitor and Control Project Work
Inputs Tools and Techniques Outputs
Project Management Plan
Schedule Forecasts
Cost Forecasts
Validated Changes
Work performance
Information
Expert Judgment
Analytical Techniques
Project Management
Information Systems
Meetings
Change Requests
Work Performance
Reports
Project Management
Plan update
Project Document
Update
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Enterprise Environmental
Factors
Organizational Process
Assets
4.4.1. Monitor & Control Project Work – Inputs
4.4.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. Each of the subsidiary plans and
components is detailed to the extent required by the specific project. These
subsidiary plans include:
Project Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan (Including Process Improvement Plan)
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan
Stakeholders Management Plan
These subsidiary plans may contain the following components:
Resource Calendar
Cost Baseline
Milestone List
Schedule Baseline
Quality Baseline
Risk Register
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4.4.1.2. Schedule Forecasts
The schedule forecast provides variance against the planned finish dates and
forecasted finish dates for various tasks and overall project. Forecast is calculated
from progress against the schedule baseline and computed time estimate to
complete (ETC) which is generally expressed in terms of schedule variance (SV) and
schedule performance index (SPI).
4.4.1.3. Cost Forecast
The cost forecasts provides variances against the planned versus actual expenditures
and forecasted final costs. Cost forecast is calculated derived from progress against
the cost baseline and computed estimates to complete (ETC) which is generally
expressed in terms of cost variance (CV) and cost performance index (CPI). An
estimate at completion (EAC) can be compared to the budget at completion (BAC)
to see if the project is still within tolerance ranges or if a change request is required.
4.4.1.4. Validated Changes
Approved changes that result from the Perform Integrated Change Control process
require validation to ensure that the change was appropriately implemented. A
validated change provides the necessary data to confirm that the change was
appropriately executed.
4.4.1.5. Work Performance Information
As a part of the project management plan execution, the work performance data is
analyzed in context and integrated based on the relationship across areas. Work
performance data gets transformed into Work Performance Information and provides
a basis for decisions making associated with project.
4.4.1.6. Enterprise Environmental Factors
The Monitor and Control Project Work process is influenced by enterprise
environmental factors that include:
Governmental or industry standards
Organization work authorization systems
Stakeholder risk tolerances
Project management information system
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4.4.1.7. Organizational Process Assets
The organizational process assets that can influence the Monitor and Control Project
Work process include:
Organizational communication requirements
Financial controls procedures
Change control procedures
Change control procedures
Process measurement database used to make available measurement data on
processes and products
Lessons learned database
4.4.2. Monitor & Control Project Work – Tools and Techniques
4.4.2.1. Expert Judgment
Expert judgment is used by the project management team to interpret the
information provided by the monitor and control processes.
4.4.2.2. Analytical Techniques
Analytical techniques are applied in project management to forecast potential
outcomes based on possible variations of project or environmental variables and
their relationships with other variables. Examples of analytical techniques used in
projects are:
Regression analysis
Grouping methods
Causal analysis,
Root cause analysis
Forecasting methods (e.g., time series, scenario building, simulation, etc.)
Failure mode and effect analysis (FMEA)
Fault tree analysis (FTA)
Reserve analysis
Trend analysis
Earned value management
Variance analysis.
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4.4.2.3. Project Management Information System
The project management information system, which is part of enterprise
environmental factors, provides access to automated tools, such as scheduling, cost,
and resourcing tools, performance indicators, databases, project records, and
financials used during the Monitor and Control Project Work process.
4.4.2.4. Meetings
Meetings may be face-to-face, virtual, formal, or informal. They may include project
team members, stakeholders, and others involved in or affected by the project.
4.4.3. Monitor & Control Project Work – Outputs
4.4.3.1. Change Requests
As a result of variance analysis, change requests may be issued to expand, adjust,
or reduce project scope, product scope, or quality requirements and schedule or
cost baselines. It may include Corrective or Preventive actions or actions for defect
repair.
4.4.3.2. Work Performance Reports
Work performance reports are status reports, information notes, recommendations,
and updates to help project team and stakeholders to take decisions, actions, or
awareness. Source of work performance reports is the work performance information
that is compiled in the project documents.
4.4.3.3. Project management Plan Update
Changes identified during the Monitor and Control Project Work process may affect
the overall project management plan. These changes, after being processed through
the appropriate change control process can lead to project management plan
updates.
4.4.3.4. Project Document Update
Schedule and cost forecasts, Work performance reports and Issue log are some of
the project documents that may be updated.
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4.5. Perform Integrated Change Control
The project management plan, the project scope statement and other deliverables must be
maintained carefully & continuously either by rejecting or approving changes so approved
changes can be incorporated into a revised baseline. Integrated Change Control process is
performed from project inception through completion. Since projects seldom run exactly
according to the project management plan, change control becomes necessary.
Perform Integrated Change Control
Inputs Tools and Techniques Outputs
Project Management Plan
Work Performance Reports
Change requests
Enterprise Environmental
factors
Organizational process
assets
Expert Judgment
Meetings
Change Control Tools
Approved Change Requests
Change Log
Project Management Plan
updates
Project Document Updates
4.5.1. Perform Integrated Change Control – Inputs
4.5.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. Each of the subsidiary plans and
components is detailed to the extent required by the specific project. These
subsidiary plans include:
Project Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan (Including Process Improvement Plan)
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan
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Stakeholders Management Plan
These subsidiary plans may contain the following components:
Resource Calendar
Cost Baseline
Milestone List
Schedule Baseline
Quality Baseline
Risk Register
4.5.1.2. Work Performance Reports
It provides documentation about project performance against the project
management plan. Results from performance areas like control schedule, control
cost, control quality, scope verification, and procurement audits and their related
forecasts assists the project team management In determining future human
resource requirements, recognition and rewards and updates to HR Management
plan.
4.5.1.3. Change requests
Requests for direct or indirect charges to expand or reduce project scope, to modify
policies or procedures, to modify project cost or budget, or to revise the project
schedule are often identified and documented as requested changes. Requests for a
change can be, externally or internally initiated, and can be optional or
legacy/contractually mandated.
4.5.1.4. Enterprise Environmental factors
Project management information system is one of the key enterprise environmental
factor can influence the Perform Integrated Change Control process. PMIS may
include the scheduling software tool, a configuration management system, an
information collection and distribution system, or web interfaces to other online
automated systems.
4.5.1.5. Organizational process assets
The organizational process assets that can influence the Perform Integrated Change
Control process include:
Change control procedures
Procedures for approving and issuing change authorizations
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Process measurement database
Project documents
Configuration management knowledge base
4.5.2. Perform Integrated Change Control – Tools and Techniques
4.5.2.1. Expert Judgment
Stakeholders may be asked to provide their expertise and may be asked to sit on the
change control board (CCB). Such judgment and expertise are applied to any
technical and management details during this process and may be provided by
various sources
4.5.2.2. Meetings
Meetings are usually referred to as change control meetings. When needed for the
project, a change control board (CCB) is responsible for meeting and reviewing the
change requests and approving, rejecting, or other disposition of those changes.
4.5.2.3. Change Control Tools
Manual or automated tools to manage the change requests and resulting decisions
with respect to change and/or configuration management. Types of tools that can
be used is based on the requirements of the project stakeholders considering the
enterprise environment and/or constraints.
4.5.3. Perform Integrated Change Control – Outputs
4.5.3.1. Approved Change Requests
A change request that has been processed through the integrated change control
process and approved by change control board. Approved change requests are
implemented through the Direct and Manage Project Work process.
4.5.3.2. Change Log
A comprehensive list of changes made during the project. This typically includes
dates of the change and impacts in terms of time, cost, and risk. Rejected change
requests are also documented in Change Log.
4.5.3.3. Project Management Plan updates
Key outcome of Integrated Change Control Process is updates to any subsidiary plans
and baselines subject to decision by change control board. Changes to baselines
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should only show the changes from the current time forward. Past performance may
not be changed.
4.5.3.4. Project Document Updates
Project documents that may be updated as a result of the Perform Integrated Change
Control process include all documents specified as being subject to the project’s
formal change control process.
4.6. Close Project or Phase
The project closure portion of the project management plan is performed through the Close
Project or Phase process. This process closes out the portion of the project scope and
associated activities applicable to a given phase in multi-phase projects. This process
includes finalizing ail activities completed across all Project Management Process Groups to
formally close the project or a project phase, and transfer the completed or cancelled
project as appropriate. The Close Project process also establishes the procedures to
coordinate activities needed to verify and document the project deliverables, to coordinate
and interact to formalize acceptance of those deliverables by the customer or sponsor, and
to investigate and document the reasons for actions taken if a project is terminated before
completion.
Close Project Or Phase
Inputs Tools and Techniques Outputs
Project Management Plan
Accepted Deliverables
Organizational process
assets
Expert Judgment
Analytical Techniques
Meetings
Final Product, Service, or
Result transition
Organizational Process
Assets Updates
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4.6.1. Close Project Or Phase – Inputs
4.6.1.1. Project Management Plan
The project management plan becomes the agreement between the project
manager and project sponsor, defining what constitutes project completion.
4.6.1.2. Accepted Deliverables
Approved product specifications, delivery receipts, and work performance
documents. Partial or interim deliverables may also be included for phased or
cancelled projects.
4.6.1.3. Organizational process assets
The organizational process assets that can influence the Close Project or Phase
process are Project or phase closure guidelines or requirements and Historical
information and lessons learned knowledge base.
4.6.2. Close Project Or Phase – Tools and Techniques
4.6.2.1. Expert Judgment
Experts Judgment ensure the project or phase closure is performed to the
appropriate standards. Expertise is available from many sources like other project
managers within the organization and Project management office (PMO).
4.6.2.2. Analytical Techniques
Regression analysis and trend analysis are some of the key analytical techniques that
will be used in project closure.
4.6.2.3. Meetings
Meetings may include project team members and other stakeholders, involved in or
affected by the project.
4.6.3. Close Project Or Phase – Outputs
4.6.3.1. Final Product, Service, or Result transition
Formal statement that the terms of the contract have been met and hand over of
the final product, service or result that the project was authorized to produce.
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4.6.3.2. Organizational Process Assets Updates
Development of the index and Location of project documentation are included in
the Closure. The documents that are updated are, but not limited to:
Project Files: Project files are documentation resulting from the project’s
activities like project management plan, scope, cost, schedule and quality
baselines, project calendars, risk register, planned risk response actions, and
risk impact.
Project Closure Documents: These documents consist of formal documentation
indicating completion of the project and the transfer of the completed project
deliverables to others, such as Operations group. If the project was terminated
prior to completion, the formal documentation indicates why the project was
terminated, and formalizes the procedures for the transfer of the finished and
unfinished deliverables of the cancelled project to others.
Historical Information: Lessons learned are transferred to the lessons learned
knowledge base for use by future projects or phases. This can include
information on issues and risks as well as techniques that worked well that can
be applied to future projects.
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Chapter 5: Project Scope
Management
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5. Project Scope Management
Project 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.
Managing the project scope is primarily concerned with defining and controlling what is and is
not included in the project. ThePMBOK®Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
5 Project Scope
Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
5.4 Validate Scope
5.5 Control Scope
5.1. Plan Scope Management
Project’s overall success depends on proper definition and effective management of the
project scope. Projects required a careful balance of tools, data sources, methodologies,
processes and procedures, and other factors to ensure that the effort spent on scoping
activities is adequate as per size, complexity, and importance of the project. The project
scope management plan describes:
How project scope will be defined
How detailed project scope statement will be developed
How work breakdown structure will be created
How scope verification will be performed
How project scope control will be done.
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Plan Scope Management
Inputs Tools and Techniques Outputs
Project Management Plan
Project Charter
Enterprise Environmental
Factors
Organizational process
assets
Expert Judgment
Meetings
Scope Management Plan
Requirements Management
Plan
5.1.1. Plan Scope Management – Inputs
5.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. Each of the subsidiary plans and
components is detailed to the extent required by the specific project. These
subsidiary plans include:
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Project Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan (Including Process Improvement Plan)
Staffing Management Plan
Communication Management Plan
Risk Management Plan
Procurement Management Plan
Stakeholders Management Plan
These subsidiary plans may contain the following components:
Resource Calendar
Cost Baseline
Milestone List
Schedule Baseline
Quality Baseline
Risk Register
5.1.1.2. Project Charter
The project charter provides the project context needed to plan the scope
management processes. It provides the high-level project description and product
characteristics from the project statement of work.
5.1.1.3. Enterprise Environmental Factors
The enterprise environmental factors that can influence the Plan Scope
Management process include:
Organization’s culture
Infrastructure
Personnel administration
Marketplace conditions
5.1.1.4. Organizational process assets
Historical information, lessons learned knowledge base and Policies & procedures
are the key elements of organizational process assets that may influence the Plan
scope management process.
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5.1.2. Plan Scope Management – Tools and Techniques
5.1.2.1. Expert Judgment
Experts Judgment refers to input received from knowledgeable and experienced
parties. Expertise is available from many sources like other project managers within
the organization and Project management office (PMO).
5.1.2.2. Meetings
Meetings may include project team members and other stakeholders, involved in or
affected by the project.
5.1.3. Plan Scope Management – Outputs
5.1.3.1. Scope Management Plan
Scope Management Plan is a part of the project management plan. It provides
guidance on how project scope will be defined, documented, verified, managed and
controlled. The components of a project scope management plan include:
Process to prepare a Project Scope Statement
Process to create WBS
Process for maintaining WBS and its approval
Process for verification and acceptance of project deliverables
Process to control changes in project scope. (This process is linked with
integrated Change control process.)
5.1.3.2. Requirements Management Plan
Requirements Management Plan is a part of the project management plan. It
provides guidance on how requirements will be analyzed, documented, and
managed. The components of a project scope management plan may include:
How requirements activities will be planned, tracked, and reported
Requirements prioritization process
Product metrics that will be used and the rationale for using them
Requirement attributes will be captured on the traceability matrix
5.2. Collect Requirements
Collect Requirements is the process of determining, documenting, and managing
stakeholder needs and requirements to meet project objectives.
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Collect Requirements
Inputs Tools and Techniques Outputs
Scope Management Plan
Requirements Management
Plan
Stakeholders Management
Plan
Project Charter
Stakeholders Register
Interviews
Focus groups
Facilitate workshops
Group creativity
techniques
Group decision making
techniques
Questionnaires and
surveys
Observations
Prototypes
Benchmarking
Context Diagram
Document Analysis
Requirements
documentation
Requirements traceability
matrix
5.2.1. Collect Requirements – Inputs
5.2.1.1. Scope Management Plan
The scope management plan provides clarity as to how project teams will determine
which type of requirements need to be collected for the project.
5.2.1.2. Requirements Management Plan
The requirements management plan provides the processes that will be used
throughout the Collect Requirements process to define and document the
stakeholder needs.
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5.2.1.3. Stakeholders Management Plan
The stakeholder management plan is required to understand stakeholder
communication requirements in order to assess and adapt to the level of stakeholder
participation in requirements activities.
5.2.1.4. Project Charter
The project charter is used to provide the high-level description of the product,
service, or result of the project so that detailed requirements can be developed.
5.2.1.5. Stakeholders Register
The stakeholder register provides an exhaustive list of the key stakeholders who will
provide the requirements and it also captures their main expectations.
5.2.2. Collect Requirements – Tools and Techniques
5.2.2.1. Interviews
A formal or informal approach to elicit information from stakeholders by talking to
them directly.
5.2.2.2. Focus groups
An elicitation technique that brings together prequalified stakeholders and subject
matter experts to learn about their expectations and attitudes about a proposed
product, service, or result.
5.2.2.3. Facilitate workshops
An elicitation technique using focused sessions that bring key cross-functional
stakeholders together to define product requirements.
5.2.2.4. Group creativity techniques
Techniques that are used to generate ideas within a group of stakeholders.
5.2.2.5. Group decision making techniques
Techniques to assess multiple alternatives that will be used to generate, classify,
and prioritize product requirements.
5.2.2.6. Questionnaires and surveys
Written sets of questions designed to quickly accumulate information from a large
number of respondents.
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5.2.2.7. Observations
A technique that provides a direct way of viewing individuals in their environment
performing their jobs or tasks and carrying out processes.
5.2.2.8. Prototypes
A method of obtaining early feedback on requirements by providing a working model
of the expected product before actually building it.
5.2.2.9. Benchmarking
Benchmarking is the comparison of actual or planned practices, such as processes
and operations, to those of comparable organizations to identify best practices,
generate ideas for improvement, and provide a basis for measuring performance.
5.2.2.10. Context Diagram
A visual depiction of the product scope showing a business system (process,
equipment, computer system, etc.), and how people and other systems (actors)
interact with it.
5.2.2.11. Document Analysis
An elicitation technique that analyzes existing documentation and identifies
information relevant to the requirements.
5.2.3. Collect Requirements – Outputs
5.2.3.1. Requirements documentation
A description of how individual requirements meet the business need for the project.
5.2.3.2. Requirements traceability matrix
A grid that links product requirements from their origin to the deliverables that
satisfy them. The implementation of a requirements traceability matrix helps ensure
that each requirement adds business value by linking it to the business and project
objectives.
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5.3. Define Scope
Define Scope process provides a detailed project scope statement which is critical to project
success. In this process, the project scope is defined with greater details and with more
specific Information about the project. Stakeholder needs & expectations are detailed in
this document. The assumptions and constraints are analyzed and detailed in this process.
Define Scope
Inputs Tools and Techniques Outputs
Scope Management Plan
Project charter
Requirements documentation
Organizational process assets
Expert Judgment
Product analysis
Alternatives
generation
Facilitated workshops
Project scope
statement
Project document
updates
5.3.1. Define Scope – Inputs
5.3.1.1. Scope Management Plan
The scope management plan is a component of the project management plan that
establishes the activities for developing, monitoring, and controlling the project
scope.
5.3.1.2. Project charter
The project charter provides the high-level project description and product
characteristics. It also contains project approval requirements.
5.3.1.3. Requirements documentation
A description of how individual requirements meet the business need for the
project.
5.3.1.4. Organizational process assets
Policies, procedures, templates, project files from previous projects and lessons
learned from previous phases or projects are the part of Organizational Process
Assets that can influence the define scope.
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5.3.2. Define Scope – Tools and Techniques
5.3.2.1. Expert Judgment
Expert judgment is often used to analyze the information needed to develop the
project scope statement. Such judgment and expertise is applied to any technical
detail.
5.3.2.2. Product analysis
Product Analysis can be done in projects which have a product as the final output.
Product Analysis helps translate high level product description into smaller &
tangible deliverables.
5.3.2.3. Alternatives generation
Alternatives generation is a technique used to develop as many potential options as
possible in order to identify different approaches to execute and perform the work
of the project.
5.3.2.4. Facilitated workshops
An elicitation technique using focused sessions that bring key cross-functional
stakeholders together to define product requirements.
5.3.3. Define Scope – Outputs
5.3.3.1. Project scope statement
The project scope statement is a detailed description of project work and
deliverables along with project boundaries. It provides a common understanding of
the project scope among all stakeholders and describes the project’s objectives in
detail. It helps in further detailed planning, guides during execution, and creating
scope baseline. The detailed project scope statement Includes:
Project Objectives
Product Scope Description
Project Requirements
Project Boundaries
Project Deliverables
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Product Acceptance Criteria
Project Constraints
Project Assumptions
Initial Project Organization
Initial identified risks
Schedule Milestones
Fund Limitation
Project Configuration Management Requirements
Approval Requirements
5.3.3.2. Project document updates
Project documents that may be updated are:
Stakeholder register
Requirements documentation
Requirements traceability matrix
5.4. Create WBS
The Work Breakdown Structure (WBS) is a deliverable oriented hierarchical decomposition
of the work to be performed by the project team to create the deliverables. The WBS
subdivides the project work into smaller, more manageable pieces of work. Each tower level
of the WBS represents further detailed breakup of the project work. The lowest level nodes
are called work packages, which can be scheduled, estimated, monitored, and controlled
by an individual or a team.
Create WBS
Inputs Tools and Techniques Outputs
Scope Management Plan
Project scope statement
Requirements
documentation
Enterprise Environmental
Factors
Decomposition
Expert Judgment
Scope Baseline
Project document
updates
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Organizational process
assets
5.4.1. Create WBS – Inputs
5.4.1.1. Scope Management Plan
The scope management plan specifies how to create the WBS from the detailed
project scope statement and how the WBS will be maintained and approved.
5.4.1.2. Project Scope Statement
The project scope statement describes the work that will be performed and the work
that is excluded.
5.4.1.3. Requirements documentation
A description of how individual requirements meet the business need for the project.
5.4.1.4. Enterprise Environmental Factors
Industry-specific WBS standards, relevant to the nature of the project, may serve as
external reference sources for creation of the WBS.
5.4.1.5. Organizational process assets
Policies, procedures, templates, project files from previous projects and lessons
learned from previous phases or projects are the part of Organizational Process
Assets that can influence the Create WBS process.
5.4.2. Create WBS – Tools and Techniques
5.4.2.1. Decomposition
Breaking down project deliverables into smatter, more manageable components is
called decomposition. Breakdown should be done until the cost and schedule for the
work can be reliably estimated. The Level of detail for work packages will depend
on the size and complexity of the project.
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5.4.2.2. Expert Judgment
Expert judgment is often used to analyze the information needed to decompose the
project deliverables down into smaller component parts in order to create an
effective WBS. Such judgment and expertise is applied to technical details of the
project’s scope and used to reconcile differences in opinion on how to best break
down the overall scope of the project.
5.4.3. Create WBS – Outputs
5.4.3.1. Scope Baseline
Scope Baseline is a component of the project management plan which provides the
final list of all deliverables detailed in WBS and WBS dictionary. Any changes to scope
beyond this point can be done through formal change control process only.
5.4.3.2. Project document updates
Project documents that may get updated are requirements documentation, which
may need to be updated to include approved changes. If approved change requests
result from the Create WBS process, then the requirements documentation may need
to be updated to include approved changes.
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5.5. Validate Scope
Validate Scope is the process of verification of completed project scope and deliverables
by stakeholders. This includes performing review and getting formal acceptance of the
deliverable from stakeholder.
Validate Scope is different from Quality Control process as in scope validation concerned
with acceptance of the deliverables and work as per project scope while Quality control
process focuses on meeting the quality requirements specified for the deliverables. Usually
quality control is performed before scope verification, but sometimes these two processes
can be performed in parallel also.
Validate Scope
Inputs Tools and Techniques Outputs
Project management plan
Requirements
documentation
Requirements traceability
matrix
Verified deliverables
Work Performance Data
Inspection
Group Decision Making
Techniques
Accepted deliverables
Change requests
Work Performance
Information
Project document
updates
5.5.1. Validate Scope – Inputs
5.5.1.1. Project management plan
Project management plan provides details of planned procedures from scope
management plan to be used for scope validation.
5.5.1.2. Requirements documentation
A description of how individual requirements meet the business need for the
project.
5.5.1.3. Requirements traceability matrix
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A grid that links product requirements from their origin to the deliverables that
satisfy them. The implementation of a requirements traceability matrix helps ensure
that each requirement adds business value by linking it to the business and project
objectives.
5.5.1.4. Verified deliverables
Deliverables that are have passed through completed and result of executing quality
control process to determine correctness.
5.5.1.5. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes work
completed, KPIs, start/finish dates of activities, number of defects, actual duration
and cost etc.
5.5.2. Validate Scope – Tools and Techniques
5.5.2.1. Inspection
Inspection is a process of review which may include measuring, examining, and
verifying the deliverable against project scope statement to determine whether
work and deliverables meet requirements and product acceptance criteria.
5.5.2.2. Group Decision Making Techniques
Techniques to assess multiple alternatives that will be used to generate, classify,
and prioritize product requirements.
5.5.3. Validate Scope – Outputs
5.5.3.1. Accepted deliverables
Deliverables which are accepted after inspection and necessary documentation is
prepared. Rejected deliverables are also documented along with the reasons for
non-acceptance. Validate Scope process includes documentation received from the
customer or sponsor and acknowledging stakeholder’s acceptance of the project’s
deliverables.
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5.5.3.2. Change requests
Changes may be requested during inspection & reviews in Validate Scope process.
These change requests are submitted for review and approval through the integrated
change control process.
5.5.3.3. Work Performance Information
Work performance data is analyzed in context and integrated based on the
relationship across areas and gets transformed into Work Performance Information
which provides a basis for decisions making associated with project.
5.5.3.4. Project document updates
Project documents that may be updated as a result of the Validate Scope process
include any documents that define the product or report status on product
completion.
5.6. Control Scope
Control Scope process controls the factors which induce changes in project scope. It also
controls the impact of those changes on project scope. Control Scope is associated with
Integrated Change Control process. This process makes sure that all requested changes and
recommended corrective actions are processed through the Integrated Change Control
process. This process also manages the actual changes when they occur in coordination with
other control processes. It controls scope creeps, which is one of the biggest reasons of
project failure.
Control Scope
Inputs Tools and Techniques Outputs
Project management plan
Requirements
documentation
Requirements traceability
matrix
Variance analysis Work performance
information
Change requests
Project management
plan updates
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Work performance data
Organization process assets
Project document
updates
Organizational process
assets updates
5.6.1. Control Scope – Inputs
5.6.1.1. Project management plan
The following information from the project management plan is used to control
scope:
Project Scope Management Plan
Scope Baseline
Change Management Plan
Configuration Management plan
Requirements Management Plan
5.6.1.2. Requirements documentation
A description of how individual requirements meet the business need for the project. 5.6.1.3. Requirements traceability matrix
A grid that links product requirements from their origin to the deliverables that
satisfy them. The implementation of a requirements traceability matrix helps ensure
that each requirement adds business value by linking it to the business and project
objectives.
5.6.1.4. Work performance data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes work
completed, KPIs, start/finish dates of activities, number of defects, actual duration
and cost etc.
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5.6.1.5. Organization process assets
The organizational process assets that can influence the Control Scope process are:
Existing formal and informal scope, control-related policies, procedures,
guidelines
Monitoring and reporting methods and templates to be used
5.6.2. Control Scope – Tools and Techniques
5.6.2.1. Variance analysis
Valiance analysis provides project performance measurements to assess the
variation of actual values against the planned values. It helps in determining the
quantifiable impact of change.
5.6.3. Control Scope – Outputs
5.6.3.1. Work performance information
Work performance data is analyzed in context and integrated based on the
relationship across areas and gets transformed into Work Performance Information
which provides a basis for decisions making associated with project.
5.6.3.2. Change requests
Analysis of scope performance can result in a change request to the scope baseline
or other components of the project management plan. Change requests can include
preventive or corrective actions, defect repairs, or enhancement requests.
5.6.3.3. Project management plan updates
Project management plan updates may include updates to Scope Baseline and if the
approved change requests have an effect on the project besides the project scope,
then the corresponding cost baseline and schedule baselines are revised and reissued
to reflect the approved changes.
5.6.3.4. Project document updates
Project documents that may be updated are requirements documentation and
requirements traceability matrix.
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5.6.3.5. Organizational process assets updates
Organizational process assets that may be updated are:
Causes of variances
Corrective action chosen and the reasons
Other types of lessons learned from project scope control.
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Chapter 6: Project Time
Management
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6. Project Time Management
Project Time Management includes the processes required to ensure timely completion of the
project. - ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
6 Project Time
Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Resources
6.5Estimate Activity Duration
6.6Develop Schedule
6.7 Control Schedule
6.1. Plan Schedule Management
Plan Schedule Management is the process where the policies& procedures for planning&
managing the project schedule are documented. This process provides guidance and
direction on how the project schedule will be managed throughout the project.
Plan Schedule Management
Inputs Tools and Techniques Outputs
Project Management Plan
Project Charter
Enterprise Environmental
Factors
Organizational Process
Assets
Expert Judgment
Analytical Techniques
Meetings
Schedule Management
Plan
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6.1.1. Plan Schedule Management – Inputs
6.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components that will
be used to develop schedule management plan. These subsidiary plans include:
Resource Calendar
Cost Baseline
Milestone List
Quality Baseline
Risk Register
6.1.1.2. Project Charter
Described in 4.1.3.1. Project Charter provides inputs in developing schedule with
regards to key milestones that will have significant impact on the management of
project schedule.
6.1.1.3. Enterprise Environmental Factors
Described in 4.1.1.4. Enterprise Environmental Factors provide inputs with regards
to organizational structure and culture that can impact the development and
management of project schedule.
6.1.1.4. Organizational Process Assets
Described in 4.1.1.5. Organizational Process Assets provides details of scheduling
tools that can be used, historical information and processes that will be used to
develop and manage project schedule.
6.1.2. Plan Schedule Management – Tools and Techniques
6.1.2.1. Expert Judgment
Access to the inputs require to develop the project charter is often provided by
Expert Judgment. Such judgment and expertise is applied to any technical and
management details during this process. Such expertise is provided by any group or
individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
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Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
6.1.2.2. Analytical Techniques
Analytical techniques are applied in project management to forecast potential
outcomes based on possible variations of project or environmental variables and
their relationships with other variables. Examples of analytical techniques used in
projects are:
Regression analysis
Grouping methods
Causal analysis,
Root cause analysis
Forecasting methods (e.g., time series, scenario building, simulation, etc.)
Failure mode and effect analysis (FMEA)
Fault tree analysis (FTA)
Reserve analysis
Trend analysis
Earned value management
Variance analysis.
6.1.2.3. Meetings
While directing and managing project work, project manager, project team and
stakeholders may need to conduct meetings to discuss and address pertinent topics
of the project. Meetings are tend to be one of three types:
Information Exchange
Brainstorming, option evolution or design or
Decision making
6.1.3. Plan Schedule Management – Outputs
6.1.3.1. Schedule Management Plan
Schedule Management Plan sets the guidelines and defines the necessary steps to be
taken to develop, monitor and control the project schedule. Schedule management
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plan may consist scheduling methodology, tools, level of accuracy, units of measures
(e.g. Hours, days, weeks) etc.
6.2. Define Activities
Define Activities process identifies and documents the activities that needs to be performed
by decomposing the work packages (i.e. lowest level of WBS). These activities provides a
basis for estimating, scheduling, executing, and monitoring & controlling the project work.
Define Activities
Inputs Tools and Techniques Outputs
Schedule Management Plan
Scope Baseline
Enterprise Environmental
Factors
Organizational Process Assets
Decomposition
Rolling Wave Planning
Expert Judgment
Activity List
Activity attributes
Milestone List
6.2.1. Define Activities – Inputs
6.2.1.1. Schedule Management Plan
The guidelines set in the Schedule Management Plan will be used as in input to define
the activities.
6.2.1.2. Scope Baseline
Scope Baseline provides the details of deliverables, constraints, and assumptions
which will need to be considered during activity definition process. It also provides
WBS as input for decomposing each work package to lower level activities.
6.2.1.3. Enterprise Environmental Factors
Some of the enterprise environmental factors like Project management Information
System and Schedule tools can provide inputs in the process of
defining the activities.
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6.2.1.4. Organizational Process Assets
Organization process assets containing activity planning related policies, procedures
and guidelines are considered in developing the activity definitions. Lessons learned
knowledge base with historical information regarding activities, lists of previous
similar projects may be used when defining project schedule activities.
6.2.2. Define Activities – Tools and Techniques
6.2.2.1. Decomposition
Decomposition technique involves subdividing the project work packages into
smaller, more manageable components called activities. The Activity Definition
process defines the final outputs as activities and not the deliverables.
6.2.2.2. Rolling Wave Planning
Rolling wave planning is a technique of progressive elaboration planning where the
work to be accomplished in the near term is planned in detail at a low level of the
WBS, while work to be accomplished in the future is planned for WBS components
that are at a relatively high level of the WBS.
With this planning technique, schedule activities can exist at various levels of detail
in the project’s Life cycle. In early stage of planning, when information is less
defined, activities might be listed at the milestone level.
6.2.2.3. Expert Judgment
Experts with previous experience on similar projects in activity definition and
developing project schedules may provide their expertise in this process. Such
judgment and expertise is applied to any technical and management details during
this process.
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6.2.3. Define Activities – Outputs
6.2.3.1. Activity List
A comprehensive list including all activities that are required to be performed for
each work package in the project. This activity list includes the activity identifier
and a description of work for each schedule activity with sufficient detail to ensure
that project team understands what work is required to be completed. The activity
list is used in schedule network diagram as part of project management plan.
6.2.3.2. Activity attributes
Activity attributes for the activities may include:
Activity identifier
Activity codes
Activity description
Predecessor activities
Successor activities
Logical re1ationships
Leads and lags
Resource requirements
Imposed dates
Constraints
Assumptions
Person responsible for executing the work
These attributes provide inputs for further planning including schedule
development.
6.2.3.3. Milestone List
Milestone list contains all milestones along with the information that the particular
milestone is mandatory as contractual requirement or optional as per project
requirements or historical information. The milestone list is a part of the project
management plan and used for scheduling purpose.
6.3. Sequence Activities
This is the process of identifying and documenting the logical relationships among schedule
activities. This logical relationship represents inter-activity dependencies.
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Logically sequencing of activities can be represented by precedence relationships like Finish
to start, start to finish, start to start and finish to finish. Leads and lags are introduced for
preparing a realistic and achievable project schedule. Project management software
provides the facilities of defining and managing dependencies, led and lag while preparing
the project schedule.
Sequence Activities
Inputs Tools and Techniques Outputs
Schedule Management Plan
Activity List
Activity attributes
Milestone List
Project scope statement
Enterprise Environmental
Factors
Organizational process
assets
Precedence Diagramming
Method (PDM)
Dependency
determination
Leads and Lags
Project Schedule
network diagrams
Project document
updates
6.3.1. Sequence Activities – Inputs
6.3.1.1. Schedule Management Plan
Guidelines defined in the Schedule Management Plan will be used as the key input
in this process. Sequencing must be done following the scheduling methodology,
using the right tools defined in the Schedule management plan.
6.3.1.2. Activity List
A comprehensive list including all activities that are required to be performed for
each work package in the project. This activity list includes the activity identifier
and a description of work for each schedule activity with sufficient detail to ensure
that project team understands what work is required to be completed. The activity
list is used in schedule network diagram as part of project management plan.
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6.3.1.3. Activity attributes
Activity attributes for the activities may include:
Activity identifier
Activity codes
Activity description
Predecessor activities
Successor activities
Logical re1ationships
Leads and lags
Resource requirements
Imposed dates
Constraints
Assumptions
Person responsible for executing the work
These attributes provide inputs for further planning including schedule development.
6.3.1.4. Milestone List
Milestone list contains all milestones along with the information that the particular
milestone is mandatory as contractual requirement or optional as per project
requirements or historical information. The milestone list is a part of the project
management plan and used for scheduling purpose.
6.3.1.5. Project scope statement
Project Scope Statement provides the details of major deliverables, constraints,
assumptions, high level timelines which will need to be considered during Sequence
Activities process.
6.3.1.6. Enterprise Environmental Factors
Some of the enterprise environmental factors like Project management Information
System and Schedule tools can provide inputs in the process of
sequencing the activities.
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6.3.1.7. Organizational Process Assets
Organization process assets containing activity planning related policies, procedures
and guidelines are considered in developing the activity definitions. Lessons learned
knowledge base with historical information regarding activities, lists of previous
similar projects may be used when sequencing project activities.
6.3.2. Sequence Activities – Tools & Techniques
6.3.2.1. Precedence Diagramming Method (PDM)
Precedence Diagramming Method (POM) is a method of defining sequence of
activities and creating schedule network diagram. POM typically uses rectangle
boxes representing activities and arrows to represent their dependencies. These
boxes are called Nodes and this technique is called as activity on-node (AON).
PDM includes four types or dependency relationships:
Finish to Start: The start of the successor activity depends upon completion
of the predecessor activity.
Finish to Finish: The completion of the successor activity depends upon the
completion of the predecessor activity.
Start to Start: The start of the successor activity depends upon the start of
the predecessor activity.
Start to Finish: The completion of the successor activity depends upon the
start of the predecessor activity.
In PDM, finish to start is the most commonly used type of precedence relationship.
Start to finish relationship is rarely used.
6.3.2.2. Dependency determination
Three types of dependencies are used to define the sequence among the activities.
These are Mandatory, Discretionary and External. The project management team
determines that relationships between the activities are mandatory, discretionary
or external.
Mandatory dependencies: Mandatory dependencies are inherent in the nature
of the project work. These dependencies are often decided due to physical
limitations, such as in any construction project, it is mandatory to build
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foundation before erecting the structure. Mandatory dependencies are also
referred as hard logic.
Discretionary dependencies: Discretionary dependencies are usually defined
based on knowledge of best practices and standard procedures for the specific
application area. These relationships are called soft Logic, preferred logic or
preferential logic. These relationships are decided by project management
team based on previous experience on a similar successful project.
External dependencies: External dependencies involve a relationship
between project activities and non-project activities or external entitles. For
example, the testing activity in a project may dependent on delivery of
specific hardware from an external source. Historical data of similar previous
projects provides inputs for defining this dependency.
6.3.2.3. Leads and Lags
A lead allows an earlier start of the successor activity. This helps in fast tracking in
finish-to-start relationship wherein successor activity starts before the completion
of predecessor activity.
A lag creates a delay in the successor activity. In finish-to-start relationship, the
successor does not start immediately at completion of predecessor activity. Lag is
the delay period in starting the successor activity after completion of predecessor
activity.
6.3.3. Sequence Activities – Outputs
6.3.3.1. Project Schedule network diagrams
Project schedule network diagram is schematic display of the project’s schedule
activities with their dependencies.
6.3.3.2. Project document updates
Project documents that may be updated include, but are not limited to:
Activity attributes,
Project logs (issues, assumptions, etc.), and
Risk register
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6.4. Estimate Activity Resources
Activity resource estimation process provides the estimation of ‘what type of and how many
resources’ are needed, and ‘when’ are they needed in the project. These resources include
persons, equipment, or material. The Activity Resource Estimating process is performed in
coordination with the Cost Estimating process as resource cost money.
Estimate Activity Resources
Inputs Tools and Techniques Outputs
Schedule Management
Plan
Activity List
Activity attributes
Resource calendars
Risk Register
Activity Cost Estimates
Enterprise
environmental factors
Organizational process
assets Organizational
process assets
Expert Judgment
Alternative Analysis
Published estimating
data
Bottom-up estimating
Project management
software
Activity resource
requirements
Resource breakdown
structure
Project document updates
6.4.1. Estimate Activity Resources – Inputs
6.4.1.1. Schedule Management Plan
Guidelines defined in the Schedule Management Plan will be used as the key input
in this process. Sequencing must be done following the scheduling methodology,
using the right tools defined in the Schedule management plan.
6.4.1.2. Activity List
A comprehensive list including all activities that are required to be performed for
each work package in the project. This activity list includes the activity identifier
and a description of work for each schedule activity with sufficient detail to ensure
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that project team understands what work is required to be completed. The activity
list is used in schedule network diagram as part of project management plan.
6.4.1.3. Activity attributes
Activity attributes provide primary data for identifying and estimating the resources
required for each activity in the activity list. Activity attributes for the activities
may include:
Activity identifier
Activity codes
Activity description
Predecessor activities
Successor activities
Logical re1ationships
Leads and lags
Resource requirements
Imposed dates
Constraints
Assumptions
Person responsible for executing the work
6.4.1.4. Resource calendars
Availability of people, equipment, and material, their location and available
quantities are considered during the process of activity resource estimation.
6.4.1.5. Risk Register
Risk events may impact resource selection and availability. Updates to the risk
register are included with project documents updates.
6.4.1.6. Activity Cost Estimates
The Activity Resource Estimating process is performed in coordination with the Cost
Estimating process as resource cost money and their cost may impact resource
selection and availability.
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6.4.1.7. Enterprise Environmental Factors
Some of the enterprise environmental factors like resource location, skills and
availability can provide inputs in the process of estimating the resource
requirements.
6.4.1.8. Organizational Process Assets
Organization process assets containing resource estimation related policies,
procedures and guidelines, rental or purchase of equipment or materials are
considered in estimating the activity resources. Lessons learned knowledge base
with historical information may be used when estimating resources.
6.4.2. Estimate Activity Resources – Tools and Techniques
6.4.2.1. Expert Judgment
Experts with specialized knowledge in resource planning and estimating can help
inactivity resource estimating process.
6.4.2.2. Alternative Analysis
Alternative methods of performing the activity are analyzed during activity resource
estimating process. These alternatives may be different levels of resource’s
capability or skills, different size & types of machines, different tools, etc. Make or
buy decisions are also considered regarding the resource.
6.4.2.3. Published estimating data
Some organizations publish data on production rates and costs of resources for
various human resources, material, and equipment for different locations. This helps
in activity resource estimating process.
6.4.2.4. Bottom-up estimating
Bottom-up estimating is used, when a schedule activity cannot be estimated with a
reasonable degree of confidence. The work within the activity is decomposed into
more details and estimation is performed at lowest Level.
6.4.2.5. Project management software
Project management software provides an efficient process of planning organizing
and managing resource pools and developing resource estimates, resource
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breakdown structures, resource availability, resource calendar and resource rates
can be defined in project management software.
6.4.3. Estimate Activity Resources – Outputs
6.4.3.1. Activity resource requirements
Identification and description of the resource types and number of resources
required for each activity in a work package is the primary output of activity
resource estimation process. Estimated resource requirement of each work package
can be determined by aggregation of activity level estimates.
The basis of estimate for each resource the assumption used for estimation, resource
availability and their quantity are included in activity resource estimation
document.
6.4.3.2. Resource breakdown structure
A hierarchical structure by resource category and resource type is created for allthe
resources identified during estimation process. This is called resource
breakdown structure (RBS).
6.4.3.3. Project document updates
Project documents that may be updated include, but are not limited to:
Activity attributes,
Project logs (issues, assumptions, etc.), and
Risk register
Activity cost Estimates
Resource Calendars
6.5. Estimate Activity Durations
The Estimating Activity Duration process uses information like scope of work, required
resource types, number of resources, resource calendars and resource availabilities for
determining work periods needed for each activity. These estimates are progressively
elaborated. Estimate Activity Duration process does:
Estimation of the amount of work effort required to complete the scheduled activity
Estimation of the assumed amount of resources to be used to complete the scheduled
activity
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Determining the number of work periods needed to complete the scheduled activity
Documentation of all data & assumptions that support duration estimation for each
activity
Estimate Activity Durations
Inputs Tools and Techniques Outputs
Schedule Management Plan
Activity List
Activity attributes
Activity resource
requirements
Resource calendars
Project scope statement
Risk Register
Resource Breakdown
Structure
Enterprise environmental
factors
Organizational process
assets
Expert Judgment
Analogous estimating
Parametric estimating
Three-point estimates
Group Decision making
Techniques
Reserve Analysis
Activity duration estimates
Project document updates
6.5.1. Estimate Activity Durations – Inputs
6.5.1.1. Schedule Management Plan
Guidelines defined in the Schedule Management Plan will be used as the key input
in this process. Duration estimation must be done following the methodology, using
the right tools defined in the Schedule management plan.
6.5.1.2. Activity List
A comprehensive list including all activities that are required to be performed for
each work package in the project. This activity list includes the activity identifier
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and a description of work for each schedule activity with sufficient detail to ensure
that project team understands what work is required to be completed.
6.5.1.3. Activity attributes
Activity attributes provide primary data for estimating the duration for each activity
in the activity list. Activity attributes for the activities may include:
Activity identifier
Activity codes
Activity description
Predecessor activities
Successor activities
Logical re1ationships
Leads and lags
Resource requirements
Imposed dates
Constraints
Assumptions
Person responsible for executing the work
6.5.1.4. Activity resource requirements
Description of the resource types and number of resources required for each activity
in a work package is the primary input for activity duration estimation process since
the assigned resources and resource availability will significantly influence the
duration of activities. For example, if an activity requires two resources working
together to complete the activity, but only one person is available; the activity will
require more time to complete. If resources are added with lower skills, efficiency
will go down and work will take more time.
6.5.1.5. Resource calendars
Availability of people, equipment, and material, their location and availability will
have a major impact on the activity duration.
6.5.1.6. Project Scope Statement
The constraints and assumptions from the project scope statement provide inputs
for estimating the activity durations.
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6.5.1.7. Risk Register
Risk events may impact resource selection and availability. Updates to the risk
register are included with project documents updates
6.5.1.8. Resource Breakdown Structure
A hierarchical structure by resource category and resource type will provide inputs
related to how many resources under different categories, of different types are
needed to complete the project.
6.5.1.9. Enterprise Environmental Factors
Some of the enterprise environmental factors like resource location, skills and
availability can provide inputs in the process of estimating the activity duration.
6.5.1.10. Organizational Process Assets
Organization process assets containing resource estimation related policies,
procedures and guidelines, rental or purchase of equipment or materials are
considered in estimating the activity resources. Lessons learned knowledge base
with historical information may be used when estimating resources.
6.5.2. Estimate Activity Durations – Tools and Techniques
6.5.2.1. Expert Judgment
Experts with specialized knowledge of estimation process and experience in similar
projects may be used for activity duration estimate. Project team members with
prior experience with similar projects may also provide duration estimate
information or recommended maximum activity durations.
6.5.2.2. Analogous estimating
Analogous duration estimating technique uses the actual durations of a previous
similar activity as the basis for estimating the duration of a future activity. This is
typically used when available information about the project is very limited to
provide detailed estimates. In the early phases of a project, analogous estimating
technique is used with historical Information and expert judgment.
Reliability of analogous duration estimates is highest when the previous project
activities are similar ‘in fact’ and not just ‘in appearance’
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6.5.2.3. Parametric estimating
Parametric Estimation is a technique in which durations can be determined by
multiplying the ‘quantity of work to be performed by the productivity rate or
duration per unit, of quantity’. For example, If one box can be assembled in 2 hour,
100 boxes will take 200 (2x100) hours.
6.5.2.4. Three-point estimates
Three point estimates are based on determining three types of estimates:
Most likely: This uses ‘most likely’ scenario of resource availability,
productivity, dependencies, and interruptions.
Optimistic: This uses an ‘optimistic’ (best case) scenario of all the factors
considered in ‘most likely’ estimates.
Pessimistic: This uses a ‘pessimistic’ (worst case) scenario of all the factors
considered in ‘most likely’ estimates.
An activity duration estimate can be determined by using an average of the three
estimated durations, i.e. optimistic, pessimistic and most likely. That average will
often provide a more accurate duration estimate than the single point (most likely)
estimate.
6.5.2.5. Group Decision making Techniques
This is a very common technique where instead of an individual, a group of people
who have expertise in the work to be carried out, are engaged through
brainstorming, Delphi or nominal group techniques to improve the accuracy of
estimates.
6.5.2.6. Reserve Analysis
All identified risks and their impact is considered while estimating the duration.
Some additional time is added to project duration estimates, which is known as
contingency reserve, time reserve or buffer. The contingency reserve can be a
percentage of the estimated duration, a fixed number of work periods, or developed
by quantitative risk analysis. As estimation process proceeds and team gets more
detailed information, the contingency reserve can be used completely or partially,
or can later be reduced or eliminated.
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6.5.3. Estimate Activity Durations – Outputs
6.5.3.1. Activity duration estimates
Activity duration estimates are the primary outputs of this process which provides
the likely number of work periods that will be required to complete a scheduled
activity. In some situations duration estimates can be represented in a range like 20
days +/- 3 days (17 days – 23 days).
6.5.3.2. Project document updates
Project documents that may be updated include, but are not limited to:
Activity attributes,
Project logs (issues, assumptions, etc.), and
6.6. Develop Schedule
Develop Schedule is the process of determining planned start and finish dates for project
activities. Schedule development is an iterative process which requires review & refinement
based on duration and resource estimates. An approved project schedule becomes baseline
against which project progress is monitored.
Develop Schedule process continues throughout the project as re-planning may be needed
due to change requests, or risk situation or upon identification of new risks.
Develop Schedule
Inputs Tools and Techniques Outputs
Schedule Management Plan
Activity List
Activity attributes
Project schedule network
diagrams
Activity resource
requirements
Resource calendars
Activity duration estimates
Schedule network
analysis
Critical Path Method
(CPM)
Critical Chain Method
Resource Optimization
Techniques
Modeling Techniques
Leads and Lags
Schedule baseline
Project Schedule
Schedule data
Project Calendars
Project management Plan
Update
Project documents updates
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Project scope statement
Risk Register
Project Staff Assignment
Resource breakdown
Structure
Enterprise environmental
factors
Organizational process
assets
Schedule compression
Scheduling Tool
6.6.1. Develop Schedule – Inputs
6.6.1.1. Schedule Management Plan
Guidelines defined in the Schedule Management Plan will be used as the key input
in this process. Duration estimation must be done following the methodology, using
the right tools defined in the Schedule management plan.
6.6.1.2. Activity List
A comprehensive list including all activities that are required to be performed for
each work package in the project are used as a key input in this process as for each
activity in the list, schedule date will be identified in this process.
6.6.1.3. Activity attributes
Activity attributes provide additional data for developing the schedule for each
activity in the activity list. Activity attributes for the activities may include:
Activity identifier
Activity codes
Activity description
Predecessor activities
Successor activities
Logical re1ationships
Leads and lags
Resource requirements
Imposed dates
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Constraints
Assumptions
Person responsible for executing the work
6.6.1.4. Project schedule network diagrams
Project schedule network diagram represents activity dependencies in the project.
6.6.1.5. Activity resource requirements
Activity resource requirement and their availability are used as an input as they may
have a significant impact on overall schedule.
6.6.1.6. Resource calendars
Resource calendar is used along with project calendar. The resource calendar
provides Information on working days or shifts with working and non-working time
or the resources.
6.6.1.7. Activity duration estimates
Activity duration estimates provide the likely number of work periods that will be
required to complete a schedule activity.
6.6.1.8. Project scope statement
The project scope statement contains assumptions and constraints that provide
inputs while developing schedule. Constraints of imposed dates on activity starts or
finishes restrict the start or finish to occur either no earlier than a specified date or
no later than a specified date. Other commonly used constraints are the “Start No
Earlier Than” and the “Finish No Later Than”. Major milestones listed in scope
statement provide input to schedule development process.
6.6.1.9. Risk Register
Risk events may impact project schedule. Due to certain risks, the team may decide
to carry out certain activities at a different date or time. Updates to the risk register
are included with project documents updates.
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6.6.1.10. Project Staff Assignment
The project staff assignments specify which resources are assigned to each activity.
6.6.1.11. Resource Breakdown Structure
A hierarchical structure by resource category and resource type will provide inputs
related to how many resources under different categories, of different types are
needed to complete the project. This is used in sync with the resource calendars
explained earlier.
6.6.1.12. Enterprise environmental factors
Some of the enterprise environmental factors like standards, communication
channels and scheduling tools can provide inputs in the process of developing
schedule.
6.6.1.13. Organizational process assets
The organizational process assets such as project calendars are used in developing
schedule. The project calendar of working days or shifts with working and non-
working time is used for preparing the schedule.
6.6.2. Develop Schedule – Tools and Techniques
6.6.2.1. Schedule network analysis
Project schedule network diagram is schematic display of the project’s activities
with their dependencies. Schedule network analysis generates the project schedule
by using techniques like Critical Path method, Critical Chain method, What If analysis
and Resource Leveling.
This process calculates the early start, early finish, late start and late finish dates
in the project schedule. This analysis also provides scheduled start and finish dates
for the uncompleted project activities.
6.6.2.2. Critical Path Method (CPM)
The critical path method is a schedule network analysis technique which calculates
the theoretical early start and finishes dates, and late start and finish dates, for all
activities without considering any resource limitations or constraints. The process of
identifying critical path includes:
Forward pass analysis to calculate early start and early finish dates
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Backward pass analysts to calculate late start and late finish dates
Analysis of float to identify critical path
Calculated early start and finish dates, and late start and finish dates may or may
not be the same on any network path since total float, may be positive, negative,
or zero.
6.6.2.3. Critical Chain Method
The critical chain method (CCM) is a schedule method that allows the project team
to place buffers on any project schedule path to account for limited resources and
project uncertainties. It is developed from the critical path method approach and
considers the effects of resource allocation, resource optimization, resource
leveling, and activity duration uncertainty on the critical path determined using the
critical path method.
6.6.2.4. Resource Optimization Techniques
Resource Optimization is a schedule network analysis technique to address the
situation where shared or critical resources are available at certain times or in
limited quantities. Resource usage is optimized using resource leveling that is
performed after identlft1ng the critical path and it may force changes in critical
path due to constraints on availability of critical resources.
6.6.2.5. Modeling Techniques
Schedule modeling technique provides a representation of data and related
information for the project. It helps identifying various factors which may have
significant influence on the project schedule such as how delay in a major
component delivery can impact specific activity durations or schedule.
6.6.2.6. Leads and Lags
The leads or Lags are adjusted during schedule network analysis to develop a viable
project schedule.
A lead allows an earlier start of the successor activity. This helps in fast tracking in
finish-to-start relationship wherein successor activity starts before the completion
of predecessor activity.
A lag creates a delay in the successor activity. In finish-to-start relationship, the
successor does not start immediately at completion of predecessor activity. Lag is
the delay period in starting the successor activity after completion of predecessor
activity.
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6.6.2.7. Schedule compression
Schedule compression is a technique to shorten the project schedule to meet
schedule constraints, imposed dates, or other schedule objectives without
compromising on the project scope. Schedule compression can be done by using two
following techniques:
1) Crashing: Schedule crashing is performed by adding more resources in order
to complete the activity earlier. Assigning more resources may results in more
cost. The cost and schedule tradeoffs are analyzed to determine how to
obtain the greatest amount of compression for the least increase in cost.
Crashing may not always produce a viable alternative and can result in
increased cost.
2) Fast Tracking: Fast tracking is performed by parallel execution of phases or
activities that are normally done in sequence. The parallel execution of
activity results in increased risk of achieving the shortened project schedule
as incomplete predecessor may force some rework on successor activity.
6.6.2.8. Scheduling Tool
Project Management tools such as MS Project can be used to develop the project
schedule.
6.6.3. Develop Schedule – Outputs
6.6.3.1. Schedule baseline
A schedule baseline is a specific version of the project schedule which is accepted
and approved by the project management team as the schedule that can be changed
only following through change control process. Baseline start and baseline finish
dates are compared with actual dates to determine if the project is on schedule or
there is any variance.
6.6.3.2. Project Schedule
The project schedule is primary output of schedule development process. It includes
planned start & finish dates, durations, milestones, and resources for overall project
and planned start & finish dates for each activity. The project schedule in summary
form is known as the master schedule or milestone schedule. A project schedule can
be presented in tabular form as well as graphically using following formats:
1) Project schedule network diagrams: These diagrams show the schedule activity
dates, project network logic and the critical path. The activity-on-node diagram
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or a time scaled schedule network diagram is used for representing network
diagram.
2) Bar Charts: These charts contain bars representing activities, show activity start
and end dates, as well as expected durations. At broader level, more
comprehensive summary activity, also called as hammock activity, is used
between milestones or across multiple interdependent work packages.
3) Milestone Charts: These charts contain bar representing the scheduled start or
completion of major deliverables and key external interfaces.
6.6.3.3. Schedule data
This is supporting data for the project schedule. This may include schedule
alternative schedule, best-case or worst-case scenario, resource histograms showing
resource requirements at time periods etc.
6.6.3.4. Project Calendars
A project calendar may be updated to document the working days and shifts when
the scheduled activities will be carried out.
6.6.3.5. Project management Plan Update
Since this process can be followed multiple times in the project, an update to project
schedule baseline and schedule management plan may get updated if needed.
6.6.3.6. Project documents updates
Project documents that may be updated include, but are not limited to:
Activity resource requirements
Activity attributes
Calendars
Risk registers
6.7. Control Schedule
Control Schedule process is a part of the Monitor & Control process group. This process helps
determining the current status of the project schedule, influencing the factors, by taking
corrective or preventive actions, that causes deviations from project schedule and also
determining that the project schedule has changed. The actual project progress is updated
and changes to the schedule baseline are managed in this process to ensure timely
completion of the project activities and project.
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Control Schedule
Inputs Tools and Techniques Outputs
Project Management Plan
Project schedule
Work performance Data
Project Calendars
Schedule Data
Organizational process
assets
Performance reviews
Project management
software
Resource Optimization
Techniques
Modeling Techniques
Leads and Lags
Schedule compression
Scheduling tool
Work performance
Information
Schedule Forecast
Change requests
Project management plan
updates
Project documents updates
Organizational process
assets updates
6.7.1. Control Schedule – Inputs
6.7.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it
can be either summary level or detailed. The key information referred to in this
process is schedule management plan and schedule baseline that provides
information around how the schedule will be managed and project actuals will be
compared to what to identify if any deviations have happened.
6.7.1.2. Project schedule
The project schedule is primary output of schedule development process. It includes
planned start & finish dates, durations, milestones, and resources for overall project
and planned start & finish dates for each activity. The project schedule in summary
form is known as the master schedule or milestone schedule. A project schedule can
be presented in tabular form as well as graphically using following formats:
1) Project schedule network diagrams: These diagrams show the schedule
activity dates, project network logic and the critical path. The activity-on-
node diagram or a time scaled schedule network diagram is used for
representing network diagram.
2) Bar Charts: These charts contain bars representing activities, show activity
start and end dates, as well as expected durations. At broader level, more
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comprehensive summary activity, also called as hammock activity, is used
between milestones or across multiple interdependent work packages.
3) Milestone Charts: These charts contain bar representing the scheduled start
or completion of major deliverables and key external interfaces.
6.7.1.3. Work performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes work
completed, KPIs, start/finish dates of activities, number of defects, actual duration
and cost etc.
6.7.1.4. Project Calendars
A project calendar may be required for some activities to calculate the schedule
forecast.
6.7.1.5. Schedule Data
Supporting data for the project schedule that includes alternative schedule, best-
case or worst-case scenario, resource histograms showing resource requirements at
time periods etc. may get updated in this process.
6.7.1.6. Organizational process assets
Policies procedures and guidelines that can influence the Control Schedule process
are referred to and when needed in this process.
6.7.2. Control Schedule – Tools and Techniques
6.7.2.1. Performance reviews
Performance review techniques provide schedule performance information such as
comparison of actual and planned dates, percent complete and duration needed to
complete the remaining work. Various techniques like trend analysis, critical path
analysis, critical chain analysis and Earned Value management are used to review
the performance of the project.
Earned value management is the key technique used in performance review.
Schedule performance measurements such as schedule variance (SV) and schedule
performance index (SPI), are used to assess the magnitude of variation to the original
schedule baseline. The total float and early finish variances are also essential
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planning components to evaluate project time performance. Important aspects of
schedule control include determining the cause and degree of variance relative to
the schedule baseline, estimating the implications of those variances for future work
to completion, and deciding whether corrective or preventive action is required.
6.7.2.2. Project management software
Project Management tools such as MS Project can be used to compare actual dates
with planned dates and to forecast the effect of changes or deviations to project
schedule.
6.7.2.3. Resource Optimization Techniques
Resource Optimization is a schedule network analysis technique to address the
situation where shared or critical resources are available at certain times or in
limited quantities. Resource usage is optimized using resource leveling that is
performed after identlft1ng the critical path and it may force changes in critical
path due to constraints on availability of critical resources.
6.7.2.4. Modeling Techniques
Schedule modeling technique provides a representation of data and related
information for the project. It helps identifying various factors which may have
significant influence on the project schedule such as how delay in a major
component delivery can impact specific activity durations or schedule.
6.7.2.5. Leads and Lags
The leads or Lags are adjusted during schedule network analysis to develop a viable
project schedule.
A lead allows an earlier start of the successor activity. This helps in fast tracking in
finish-to-start relationship wherein successor activity starts before the completion
of predecessor activity.
A lag creates a delay in the successor activity. In finish-to-start relationship, the
successor does not start immediately at completion of predecessor activity. Lag is
the delay period in starting the successor activity after completion of predecessor
activity.
6.7.2.6. Schedule compression
Schedule compression is a technique to shorten the project schedule to meet
schedule constraints, imposed dates, or other schedule objectives without
compromising on the project scope. Schedule compression can be done by using two
following techniques:
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1) Crashing: Schedule crashing is performed by adding more resources in order to
complete the activity earlier. Assigning more resources may results in more
cost. The cost and schedule tradeoffs are analyzed to determine how to obtain
the greatest amount of compression for the least increase in cost. Crashing
may not always produce a viable alternative and can result in increased cost.
2) Fast Tracking: Fast tracking is performed by parallel execution of phases or
activities that are normally done in sequence. The parallel execution of
activity results in increased risk of achieving the shortened project schedule
as incomplete predecessor may force some rework on successor activity.
6.7.2.7. Scheduling Tool
Project Management tools such as MS Project can be used to develop the project
schedule.
6.7.3. Control Schedule – Outputs
6.7.3.1. Work performance Information
Work performance Information is provided by calculating schedule variance (SV) and
Schedule Performance Index (SPI) values for WBS components, in particular the work
packages. This information is documented and communicated to stakeholders as per
project reporting requirements.
6.7.3.2. Schedule Forecast
6.7.3.3. Change requests
Request to make changes to the project schedule baseline may be created due to
variance in schedule or modification to the project schedule model. Project schedule
changes may or may not require changes to other components of the project
management plan. Requested changes are processed for review and implemented
through the Integrated Change Control process.
6.7.3.4. Project management plan updates
Some elements of the project management plan may require update are Schedule
Baseline, Schedule Management Plan and Cost Baseline to reflect any approved
changes resulting from Control Schedule process.
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6.7.3.5. Project documents updates
Project documents that may be updated include, but are not limited to:
Project Schedule
Schedule Data
Risk registers
6.7.3.6. Organizational process assets updates
Organizational process assets that may be updated include, but are not limited to:
Causes of variances
Corrective action chosen and the reasons
Other types of lessons learned from project schedule control.
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Chapter 7: Project Cost
Management
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7. Project Cost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so that the project can be completed within
the approved budget.
- ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
7 Project Cost
Management
7.1 Plan Cost Management
7.2 Estimate Cost
7.3 Determine Budget
7.4 Control Schedule
7.1. Plan Cost Management
Plan Cost Management is the process that establishes the policies, procedures, and
documentation for planning, managing, expending, and controlling project costs. It provides
guidance and direction on how the project costs will be managed throughout the project.
Plan Cost Management
Inputs Tools and Techniques Outputs
Project Management Plan
Project Charter
Enterprise Environmental
Factors
Organizational Process Assets
Expert Judgment
Analytical Techniques
Meetings
Cost Management Plan
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7.1.1. Plan Cost Management – Inputs
7.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans that will provide information to
develop the cost management plan. These subsidiary plans may contain the
following components:
Scope baseline
Schedule Baseline
Quality Baseline
Risk Register
7.1.1.2. Project Charter
Described in 4.1.3.1. Project Charter provides inputs in developing cost management
plan with regards to high level budget information or boundaries around which the
cost management plan will be developed.
7.1.1.3. Enterprise Environmental Factors
The enterprise environmental factors is used to identify the factors that influence
the Plan Cost Management process. Factors such as organizational culture and
structure, market conditions, currency exchange rates for project costs sourced
from more than one country, published commercial information such as resource
cost rate information and project management information system, which provides
alternative possibilities for managing cost.
7.1.1.4. Organizational Process Assets
Organizational process assets provides a list of cost estimating and budgeting-related
policies, procedures, and guidelines, financial controls procedures, Historical
information and lessons learned knowledge bases that is used as a key input in
developing the Cost Management plan.
7.1.2. Plan Cost Management – Tools and Techniques
7.1.2.1. Expert Judgment
Access to the inputs require to develop the cost management plan is often provided
by Expert Judgment. Such judgment and expertise is applied to any technical and
management details during this process. Such expertise is provided by any group or
individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
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Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
7.1.2.2. Analytical Techniques
Analytical techniques are applied in project management to choose strategic options
related to project funding. Examples of analytical techniques used in projects are:
Regression analysis
Grouping methods
Causal analysis,
Root cause analysis
Forecasting methods (e.g., time series, scenario building, simulation, etc.)
Failure mode and effect analysis (FMEA)
Fault tree analysis (FTA)
Reserve analysis
Trend analysis
Earned value management
Variance analysis.
7.1.2.3. Meetings
While developing the cost management plan, project manager, project team and
stakeholders may need to conduct meetings to discuss cost management plan.
7.1.3. Plan Cost Management – Outputs
7.1.3.1. Cost Management Plan
Cost Management Plan sets the guidelines and defines the necessary steps to be
taken to develop, monitor and control the project budget. Cost management plan
may consist methodology, tools, level of accuracy, currency etc.
7.2. Estimate Cost
Approximate cost estimates are developed for all activities after consideration of risks and
all causes of possible cost variation. This quantitative assessment process generates an
elaborated Activity Cost Estimate. Various alternative estimates are identified and
considered. All additional costs are checked for justification in additional savings in the life
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cycle process. For example, in most application areas, additional work during a design phase
is widely held to have the potential for reducing the cost of the execution phase and product
operations. To facilitate comparison between projects and for cost control/management
purposes, cost estimates are generally expressed in units of currency or estimate units such
as staff hours or staff days are used along with currency.
Cost estimates are refined and adjusted during the project lifecycle to reflect additional
details available. Wherever required, guidelines are generated for when such refinements
are made and for what degree of accuracy is expected.
Resource’s for which costs are estimated Include infrastructure, tabor, materials,
equipment etc. and special categories like inflation, contingency etc. If the performing
organization does not have formally trained project cost estimators, then the project team
will need to supply both the resources and the expertise to perform project cost estimating
activities.
Estimate Cost
Inputs Tools and Techniques Outputs
Cost Management Plan
Human Resource Management
Plan
Scope Baseline
Project Schedule
Risk Register
Enterprise Environmental
Factors
Organizational Process Assets
Expert Judgment
Analogous Estimating
Parametric Estimating
Bottom-up Estimating
Three Point Estimate
Reserve Analysis
Cost of Quality
Project Management
Software
Vendor Bid Analysis
Group Decision Making
Techniques
Activity Cost Estimates
Basis of Estimate
Project Document
Updates
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7.2.1. Estimate Cost – Inputs
7.2.1.1. Cost Management Plan
The cost management plan defines how project costs will be managed and controlled. It
includes the method used and the level of accuracy required to estimate activity cost.
7.2.1.2. Human Resource Management Plan
HR Management plan provides staffing attributes and personnel rates that are
necessary components for developing the cost estimates.
7.2.1.3. Scope Baseline
Scope baseline is comprised of project scope statement, WBS and WBS dictionary.
The constraints like project budget, delivery dates, availability of human and
material resources, assumptions limiting factors etc. are derived from the Project
scope statement. Relationship and dependencies between all project components as
described in WBS is used for building effective and accurate cost estimates. WBS
dictionary provides clarity among deliverables to facilitate accurate estimation.
7.2.1.4. Project Schedule
Project Schedule includes activity resource and duration estimations, provides the
most important inputs for cost estimation - quality, quantity and availability of
human and material resources. All costs including charges, interest rates,
agreements, cost variations, overhead costs are derived out of the Project Schedule.
7.2.1.5. Risk Register
All risks are considered in developing alternative cost estimates. Risks, either threats
or opportunities are studied and expected variations are planned for.
7.2.1.6. Enterprise Environmental Factors
The Cost Estimating process Considers Marketplace conditions: Market costs, terms
and conditions of project resources. It can also use Commercial databases that help
track/compare quantity of human and other resources at different skill/attribute
levels at their respective costs.
7.2.1.7. Organizational Process Assets
Existing internal procedures, policies and guidelines are used for estimating the cost.
It also provides templates for cost estimation, historical information and lesson
learned from previous projects.
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7.2.2. Estimate Cost – Tools and Techniques
7.2.2.1. Expert Judgment
Experts with specialized knowledge of estimation process and experience in similar
projects may be used for activity cost estimate. Project team members with prior
experience with similar projects may also provide cost estimation information.
7.2.2.2. Analogous estimating
Analogous cost estimating technique uses the actual cost of a previous similar
activity as the basis for estimating the cost of a future activity. This is typically used
when available information about the project is very limited to provide detailed
estimates. In the early phases of a project, analogous estimating technique is used
with historical Information and expert judgment.
7.2.2.3. Parametric estimating
Parametric Estimation is a technique in which cost can be determined by multiplying
the ‘quantity of work to be performed by the resource rate or cost per unit, of
quantity’. For example, If one square foot of area can be constructed in USD 10, 100
Square feet will take 1000 (10x100) USD.
7.2.2.4. Bottom-up Estimating
Individual activities are estimated for the smallest detail. All costs are then
aggregated and used for reporting, tracking and control purposes. In this method,
the individual activity cost consciousness is of prime importance.
7.2.2.5. Three-point estimates
Three point estimates are based on determining three types of estimates:
Most likely: This uses ‘most likely’ scenario of resource availability,
productivity, dependencies, and interruptions.
Optimistic: This uses an ‘optimistic’ (best case) scenario of all the factors
considered in ‘most likely’ estimates.
Pessimistic: This uses a ‘pessimistic’ (worst case) scenario of all the factors
considered in ‘most likely’ estimates.
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An activity cost estimate can be determined by using an average of the three
estimated cost, i.e. optimistic, pessimistic and most likely. That average will often
provide a more accurate cost estimate than the single point (most likely) estimate.
7.2.2.6. Reserve Analysis
All identified risks and their impact is considered while estimating the cost. Some
additional cost is added to project cost estimates, which is known as contingency
reserve, cost reserve or buffer. The contingency reserve can be a percentage of the
estimated cost, a fixed cost, or developed by quantitative risk analysis. As
estimation process proceeds and team gets more detailed information, the
contingency reserve can be used completely or partially, or can later be reduced or
eliminated.
7.2.2.7. Cost of Quality
Cost of Quality can be used to prepare the activity cost estimate.
7.2.2.8. Project Management Software
Widely available cost estimation application or any project management software
can be used to for faster and more accurate estimation of cost.
7.2.2.9. Vendor Bid Analysis
Vendor bid analysis is another technique to benchmark costs. If a project is awarded
to a vendor in a competitive bid, more detailed analysis may be considered for cost
estimation and control purposes.
7.2.2.10. Group Decision making Techniques
This is a very common technique where instead of an individual, a group of people
who have expertise in the work to be carried out, are engaged through
brainstorming, Delphi or nominal group techniques to improve the accuracy of
estimates.
7.2.3. Estimate Cost – Outputs
7.2.3.1. Activity Cost Estimates
An activity cost estimate is a quantitative assessment of the likely costs of the
resources required to complete activities. This type of estimate can be presented in
summary form or in detail. Costs are estimated for all resources, human and material
and may consider inflation, contingency reserves etc.
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7.2.3.2. Basis of Estimate
Details validating the derivation of the cost estimates are provided. Supporting
details for justification of cost estimate can include description of activity’s scope
of work, documentation of how it was estimated, what tools were used and what
assumptions & constraints have been considered.
7.2.3.3. Project Document Updates
Project documents that may be updated include, but are not limited to, the risk
register.
7.3. Determine Budget
Determine budget involves aggregating the estimated cost of individual activities or work
packages to establish a total cost baseline for measuring project performance. The project
scope statement may provide the summary budget. However, activity or work package cost
estimates are prepared prior to the detailed budget requests and work authorization.
Determine Budget
Inputs Tools and Techniques Outputs
Cost Management Plan
Scope Baseline
Activity Cost Estimates
Basis of Estimate
Project Schedule
Resource Calendars
Risk Registers
Agreements
Organizational Process Assets
Cost Aggregation
Reserve Analysis
Expert Judgment
Historical Relationship
Funding Limit
Reconciliation
Cost Performance
Baseline
Project Funding
Requirements
Project Document
Updates
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7.3.1. Determine Budget – Inputs
7.3.1.1. Cost Management Plan
The cost management plan defines how project costs will be managed and
controlled. It includes the method used and the level of accuracy required to
estimate activity cost.
7.3.1.2. Scope Baseline
Scope baseline is comprised of project scope statement, WBS and WBS dictionary.
The constraints like project budget, delivery dates, availability of human and
material resources, assumptions limiting factors etc. are derived from the Project
scope statement. Relationship and dependencies between all project components as
described in WBS is used for building effective and accurate cost estimates. WBS
dictionary provides clarity among deliverables to facilitate accurate estimation.
7.3.1.3. Activity Cost Estimates
An activity cost estimate is a quantitative assessment of the likely costs of the
resources required to complete activities. This type of estimate can be presented in
summary form or in detail. Costs are estimated for all resources, human and material
and may consider inflation, contingency reserves etc.
7.3.1.4. Basis of Estimate
Details validating the derivation of the cost estimates are provided. Supporting
details for justification of cost estimate can include description of activity’s scope
of work, documentation of how it was estimated, what tools were used and what
assumptions & constraints have been considered.
7.3.1.5. Project Schedule
Project Schedule includes activity resource and duration estimations, provides the
inputs for determining budget - quality, quantity and availability of human and
material resources. All costs including charges, interest rates, agreements, cost
variations, overhead costs are derived out of the Project Schedule.
7.3.1.6. Resource Calendars
Availability of people, equipment, and material, their location and available
quantities are considered during the process of determining project budget.
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7.3.1.7. Risk Registers
Risk events may impact project budget. All risks are considered in developing
alternative cost estimates and the cost of response should be aggregated to make a
part of the project budget.
7.3.1.8. Agreements
Agreements with external vendors regarding what product, service or results have
been purchased – and their costs are used in developing the budget.
7.3.1.9. Organizational Process Assets
The organizational process assets that influence the Determine Budget process
include existing formal and informal cost budgeting-related policies, procedures,
and guidelines, Cost budgeting tools and Reporting methods.
7.3.2. Determine Budget – Tools and Techniques
7.3.2.1. Cost Aggregation
Activity cost estimates are aggregated and grouped by work packages which may be
then grouped by higher Ievels (Control Accounts) then finally by entire the entire
project.
7.3.2.2. Reserve Analysis
Reserve or management contingency allowance are used to deal with uncertainty or
“known unknowns”. The reserve is added to project budget but not distributed to
project team as budget.
7.3.2.3. Expert Judgment
Experts with specialized knowledge of budgeting process and experience in similar
projects may be used for determining the project budget. Project team members
with prior experience with similar projects may also provide information while
determining the budget.
7.3.2.4. Historical Relationship
Any historical relationships that result in parametric estimates or analogous
estimates involve the use of project characteristics (parameters) to develop
mathematical models to predict total project costs.
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7.3.2.5. Funding Limit Reconciliation
Funds are reconciled and based on the results, new limits are set and WBS
components etc. are adjusted. This may impact allocation of resources to the
project. If costs are used in the schedule development process, the process is
repeated with new constraints and a new cost baseline is derived.
7.3.3. Determine Budget – Outputs
7.3.3.1. Cost Performance Baseline
The cost baseline is a time phased budget that is used as a basis against which overall
cost performance on the project is measured, monitored, and controlled. Many
projects, especially large ones, have multiple cost or resource baselines to measure
different aspects of project performance.
7.3.3.2. Project Funding Requirements
Funding requirements are derived from the cost baseline and can be established to
exceed to allow for either early progress or cost overrun. Funding usually occurs in
incremental. The total funds required are those included in the cost baseline plus
the management contingency reserve amount. The cost baseline and cash flow Lines
would increase when a portion of the management reserve is authorized and when
it is spent.
7.3.3.3. Project Document Updates
Project documents that may be updated include risk register, activity cost estimates
and project schedule.
7.4. Control Costs
Project cost control Includes:
Influencing the factors that create changes to the cost baseline
Ensuring requested changes are agreed upon
Managing the actual changes when and as they occur
Assuring that potential cost overruns do not exceed the authorized funding
periodically and in total for the project
Monitoring cost performance to detect and understand variances from the cost
baseline
Recording all appropriate changes accurately against the cost baseline
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Preventing incorrect, inappropriate, or unapproved changes from being included in
the reported cost or resource usage
Informing appropriate stakeholders of approved changes
Acting to bring expected cost overruns within acceptable limits.
Control Costs
Inputs Tools and Techniques Outputs
Project Management
Plan
Project Funding
Requirements
Work Performance Data
Organizational Process
Assets
Earned Value
Management
Forecasting
To-Complete
Performance Index (TCPI)
Performance Reviews
Project Management
Software
Reserve Analysis
Work Performance
Information
Cost Forecasts
Change Requests
Project Management
Plan Updates
Project Document
Updates
Organizational Process
Assets Updates
7.4.1. Control Costs – Inputs
7.4.1.1. Project Management Plan
The project management plan contains cost baseline that will be compared with
actual results to determine if a change, corrective action, or preventive action is
necessary and also cost management plan to describe how the project costs will be
managed and controlled.
7.4.1.2. Project Funding Requirements
The project funding requirements include projected expenditures plus anticipated
liabilities. Funding requirements are derived from the cost baseline and can be
established to exceed to allow for either early progress or cost overrun.
7.4.1.3. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
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each process area for detailed analysis. Work Performance Data includes costs that
have been authorized and incurred.
7.4.1.4. Organizational Process Assets
Existing formal and informal cost control-related policies, procedures, and
guidelines, Cost control tools and Monitoring and reporting methods provide the key
inputs in Control Cost process.
7.4.2. Control Costs – Tools and Techniques
7.4.2.1. Earned Value Management
Earned value management combines scope, schedule, and resource measurements
to assess project performance and progress. It compares the cumulative value of
scope, time and cost baseline to form the performance baseline to assess and
measure project performance and progress. The earned value technique involves
developing these key values to each activity, work package or control account:
Planned value (PV): The authorized budget assigned to scheduled work.
Earned value (EV): The measure of work performed expressed in terms of the
budget authorized for that work.
Actual cost (AC): The realized cost incurred for the work performed on an
activity during a specific time period.
Cost variance (CV): CV is EV – AC. The cost variance at the end of the project
will be the difference between the budget at Completion (BAC) and the actual
amount spent.
Schedule variance (SV): SV is EV - PV. Schedule variance will ultimately equal
zero when the project is completed because all of the planned values will have
been earned.
Schedule performance Index (SPI): SPI is EV/PV. The SPI is used in addition to
the schedule status, to predict the completion date and is sometimes used in
conjunction with the CPI to forecast the project completion estimates. SPI
equals the ratio of the EV to the PV.
Cost performance Index (CPI): CPI is EV/AC. CPI value Less than 1.0 indicates
a cost overrun of the estimates. A CPI value greater than 1.0 indicates a cost
under-run of the estimates. CPI equals the ratio of the EV to the AC. The CPI is
the most commonly used cost-efficiency indicator.
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7.4.2.2. Forecasting
Forecasting includes making estimates or predictions of conditions In the project’s
future based on information and knowledge available at the time of the forecast. As
the project progresses, the forecasts are adjusted.
The earned value technique parameters of BAC, actual cost (AC) to date, and the
cumulative CPI efficiency indicator are used to calculate ETC and EAC where BAC Is
equal to the total PV at completion for a schedule activity, work package, control
account, or other W8S component.
7.4.2.3. To-Complete Performance Index (TCPI)
The to-complete performance index (TCPI) is a measure of the cost performance
that is required to be achieved with the remaining resources in order to meet a
specified management goal, expressed as the ratio of the cost to finish the
outstanding work to the remaining budget. TCPI is the calculated cost performance
index that is achieved on the remaining work to meet a specified management goal,
such as the BAC or the EAC.
7.4.2.4. Performance Reviews
Performance reviews compare cost performance over time, schedule activities or
work packages overrunning and underrunning the budget, and estimated funds
needed to complete work in progress. Under EVM, Variance Analysis, Trend Analysis
and Earned value Performance is calculated to check how the project is performing.
7.4.2.5. Project Management Software
Project management software like MS project can be used to monitor the three EVM
dimensions (PV, EV, and AC), to display graphical trends, and to forecast a range of
possible final project results.
7.4.2.6. Reserve Analysis
Reserve analysis is used to monitor the status of contingency and management
reserves for the project to determine if these reserves are still needed or if
additional reserves need to be requested. As work on the project progresses, these
reserves may be used as planned to cover the cost of risk mitigation events or other
contingencies. Or, if the probable risk events do not occur, the unused contingency
reserves may be removed from the project budget to free up resources for other
projects or operations.
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7.4.3. Control Costs – Outputs
7.4.3.1. Work Performance Information
The calculated CV, SV, CPI, SPI, TCPI, and VAC values for WBS components, work
packages and control accounts, are documented and communicated to stakeholders.
7.4.3.2. Cost Forecasts
A calculated EAC value or a bottom-up EAC value is documented and
communicated to stakeholders.
7.4.3.3. Change Requests
Outcome of EVM may result in a change request to the cost baseline or other
components of the project management plan. Change requests may include
preventive or corrective actions, and are processed for review and disposition
through the Perform Integrated Change Control process.
7.4.3.4. Project Management Plan Updates
Changes to the cost baseline are incorporated in response to approved changes in
scope, activity resources, or cost estimates. Changes to control thresholds are
updated in cost management plan in response to feedback from relevant
stakeholders.
7.4.3.5. Project Document Updates
Cost estimates and Basis of estimates may be updated after reviewing the project
performance.
7.4.3.6. Organizational Process Assets Updates
Organizational process assets that may be updated include, but are not limited to:
Causes of variances,
Corrective action chosen and the reasons,
Financial databases, and
Other types of lessons learned from project cost control.
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Chapter 8: Project Quality
Management
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8. Project Quality Management
Project Quality Management includes the processes and 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.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
&
Controlling
Closing
8 Project
Quality
Management
8.1 Plan Quality Management
8.2 Perform Quality Assurance
8.3 Control Quality
8.1. Plan Quality Management
It is one of the key processes that identifies quality standards that are relevant to the
project and steps to satisfy them. It is performed in parallel to other planning processes
and is a key determinant in the formulation of other subsidiary planning processes.
There are several quality planning techniques that are used in different application areas
some of which are discussed here.
Plan Quality Management
Inputs Tools and Techniques Outputs
Project Management Plan
Stakeholder Register
Risk Register
Requirements
Documentation
Cost-Benefit Analysis
(Marginal benefit
Analysis)
Cost of Quality (COQ)
Seven basic quality
tools
Quality Management Plan
Process Improvement Plan
Quality Metrics
Quality Checklists
Project document Updates
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Enterprise Environmental
Factor
Organizational Process
Assets
Benchmarking
Design of Experiments
Statistical Sampling
Addl Quality Planning
Tools
Meetings
8.1.1. Plan Quality Management – Inputs
8.1.1.1. Project Management Plan
It can be composed of one or more following subsidiary plans and other
components that will be used to develop the quality management plan:
Scope Baseline: Scope baseline includes Project Scope statement, WBS and
EBS dictionary.
Schedule baseline
Cost baseline
Other Management Plans
8.1.1.2. Stakeholder Register
It provides a list of stakeholders having a particular interest in, or having an impact
on, quality.
8.1.1.3. Risk Register
It contains information on threats and opportunities that may impact quality
requirements.
8.1.1.4. Requirements Documentation
Requirements documentation captures the requirements that the project must meet
pertaining to stakeholder expectations. The components of the requirements
documentation include, project (including product) and quality requirements. The
requirements are used by the project team to help plan how quality control will be
implemented on the project.
8.1.1.5. Enterprise Environmental Factor
External standards, guidelines and regulations need to be considered as they may
have an effect on the project.
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8.1.1.6. Organizational Process Assets
Historical project data/lessons learnt and policies and procedures derived from them
may affect Quality planning. The Quality policy directs the development of the
quality plan for the project. The policy, which is endorsed by the senior management
is adopted “as is” or, in case of an absence of the same, a quality policy can be
developed for the project. Either way, the project management team communicates
the policy through appropriate information distribution channels.
8.1.2. Plan Quality Management – Tools and Techniques
8.1.2.1. Cost-Benefit Analysis (Marginal benefit Analysis)
The analysis that defines the trade-offs between cost of quality and its returns are
used for planning the Quality of the project.
8.1.2.2. Cost of Quality (COQ)
Quality costs are the total costs involved in preventing nonconformance to
requirements, reviews arid rework. Failure costs, which may be internal or external,
are also called cost of poor quality.
8.1.2.3. Seven basic quality tools
The seven basic quality tools, also known as 7QC Tools, are used within the context
of the PDCA (Plan, Do, Check, Act) Cycle to solve quality-related problems. The
seven basic quality tools are:
Cause-and-effect diagrams which are also known as fishbone diagrams or as
Ishikawa diagrams.
Flowcharts which are also referred to as process maps
Check sheets which are also known as tally sheets
Pareto diagrams exist as a special form of vertical bar chart and are used to
identify the vital few sources that are responsible for causing most of a
problem’s effects.
Histograms are a special form of bar chart and are used to describe the central
tendency, dispersion, and shape of a statistical distribution.
Control charts are used to determine whether or not a process is stable or has
predictable performance.
Scatter diagrams plot ordered pairs (X, Y) and are sometimes called correlation
charts because they seek to explain a change in the dependent variable, Y, in
relationship to a change observed in the corresponding independent variable, X.
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8.1.2.4. Benchmarking
Benchmarks involving actual or planned project practices within or outside the
organization in the same application area or outside are used for quality planning
and performance measurement.
8.1.2.5. Design of Experiments
Design of experiments is a statistical method that identifies which factors influences
specific variables of a product or process under development or in production. This
provides an input in optimization of products or processes and provides a framework
to systematically change all important factors rather than one at a time. Such an
analysis provides information on optimal combination of conditions that can be used
in project implementations.
8.1.2.6. Statistical Sampling
Statistical sampling involves selecting few samples for inspection at random. Sample
frequency and sizes should be determined during the Plan Quality Management
process so the cost of quality will include the number of tests, expected scrap, etc.
8.1.2.7. Additional Quality Planning Tools
Other Quality planning tools like brainstorming, affinity diagrams, force field
analysis, nominal group techniques, matrix diagrams, flowcharts, and prioritization
matrices are often used for effective quality planning.
8.1.2.8. Meetings
Project teams that may include project manager, project sponsor, respective
project team members, stakeholders or anyone with responsibility for Project
Quality Management activities, may hold planning meetings to develop the quality
management plan.
8.1.3. Plan Quality Management – Outputs
8.1.3.1. Quality Management Plan
The quality management plan describes how the project management team will
implement the performing organization’s quality policy. The quality management
plan is an important subsidiary plan of the project management plan and addresses
quality control, assurance and continuous quality improvement.
The quality management plan is brought in early in the project life cycle where
initial decisions, designs and tests are verified by an independent peer group that
may reduce project costs and schedule overruns. This plan is built based on
Individual project requirements.
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8.1.3.2. Process Improvement Plan
This forms a subsidiary of the project management plan. Process Improvement plan
is developed to identify and eliminate non-value adding activities thereby increasing
customer value. They set process boundaries, process metrics and targets for
improved performance.
8.1.3.3. Quality Metrics
A metric describes what project or product is and how the quality control process
measures it. The project management team must indicate the activities where
measurements are of importance. Quality metrics are used in the QA and QC
processes. Some examples of quality metrics include defect density, failure rate,
availability, reliability, and test coverage.
8.1.3.4. Quality Checklists
Standardized checklists that verify a set of required steps to be performed are built
in by organizations to ensure consistency in tasks. In some application areas,
checklists are also available from commercial providers.
8.1.3.5. Project document Updates
Stakeholder register, Responsibility assignment matrix, WBS and WBS Dictionary are
some of the Project documents that may be updated.
8.2. Perform Quality Assurance
Quality assurance is the application of planned, systematic quality activities and processes
to ensure that the project has employed all processes needed to meet the project and
product requirements.
Perform Quality Assurance
Inputs Tools and Techniques Outputs
Quality Management Plan
Process Improvement Plan
Quality Metrics
Quality Control
Measurements
Project Documents
Quality Management and
Control Tools
Quality Audits
Process Analysis
Change requests
Project Management
Plan Updates
Project document
updates
Organizational Process
Assets updates
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8.2.1. Perform Quality Assurance – Inputs
8.2.1.1. Quality Management Plan
The quality management plan describes how the project management team will
implement the performing organization’s quality policy. The quality management
plan is an important input as it define how quality assurance will be done in the
project.
8.2.1.2. Process Improvement Plan
Process Improvement plan is developed to identify and eliminate non-value adding
activities thereby increasing customer value. They set process boundaries, process
metrics and targets for improved performance. The project’s quality assurance
activities should be consistent with the process improvement plans.
8.2.1.3. Quality Metrics
A metric describes what project or product is and how the quality control process
measures it. The quality metrics provide the attributes that should be measured and
the allowable variations.
8.2.1.4. Quality Control Measurements
Quality control measurements are the outputs of quality control activities that are
fed back to the QA process for re-evaluating and analyzing the quality standards and
processes of the organization.
8.2.1.5. Project Documents
Project documents may influence quality assurance work and should be monitored
within the context of a system for configuration management.
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8.2.2. Perform Quality Assurance – Tools and Techniques
8.2.2.1. Quality Management and Control Tools
The Perform Quality Assurance process uses the tools and techniques of the Plan
Quality Management and Control Quality processes.
8.2.2.2. Quality Audits
A Quality audit is a structured independent review to determine whether project
activities comply with organizational and project policies, processes and procedures.
The quality audit identifies inefficient and ineffective policies, processes and
procedures currently being used in the project. All efforts to correct these
deficiencies should result ¡n a reduced cost of quality and an increase in the
percentage of acceptance of the product or Service by the customer or sponsor
within the performing organization. Quality audits may be scheduled or at random,
and may be carried out by properly trained in-house auditors or by third parties,
external to the performing organization.
Quality audits confirm the implementation of approved change requests, corrective
actions, defect repairs, and preventive actions.
8.2.2.3. Process Analysis
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The process Improvement plan enables process analysis for continuous Improvement
in technical and organizational areas. Process analysis Includes root cause analysis
to identify the cause, effect and provide solution to a problem.
8.2.3. Perform Quality Assurance – Outputs
8.2.3.1. Change requests
Changes that improve the quality of the project, both technical and organizational
are the key output of Perform Quality Assurance Process.
8.2.3.2. Project Management Plan Updates
Any update to the Quality Management Plan requires an update to the project
management plan. Existing processes may be updated, process Improvements may
be implemented. Requested changes (additions, modifications, deletions) to the
project management plan and its subsidiary plans are processed through the
Integrated Change Control process.
8.2.3.3. Project document updates
Project documents that may be updated are Quality audit reports, Training plans
Process documentation.
8.2.3.4. Organizational Process Assets updates
All standards, rules and regulations are updates as a result of any analyses of the QA
activities. These quality standards are used during the Perform Quality Control
Process.
8.3. Control Quality
Quality control (QC) involves monitoring specific project results to determine whether they
comply with relevant quality standards and identifying ways to eliminate causes of
unsatisfactory results. This is performed though out the complete project lifecycle. QC is
often performed by a quality control department and can include taking action to eliminate
causes of unsatisfactory project performance.
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Control Quality
Inputs Tools and Techniques Outputs
Project Management Plan
Quality Metrics
Quality Checklists
Work Performance Data
Approved Change Requests
Deliverables
Project Documents
Organizational Process
Assets
Seven Basic Quality
Tools
Statistical Sampling
Inspection
Approve change
request review
Quality Control
Measurements
Validated Changes
Validated Deliverables
Work Performance
Information
Change Requests
Project Management Plan
Updates
Project Document Updates
Organizational Process
assets Update
8.3.1. Control Quality – Inputs
8.3.1.1. Project Management Plan
The project management plan contains quality management plan that describes
how the project management team will implement the performing organization’s
quality policy. It define how quality will be controlled and how Quality Control will
be performed throughout the project.
8.3.1.2. Quality Metrics
A metric describes what project or product is and how the quality control process
measures it. The project management team must indicate the activities where
measurements are of importance. Quality metrics are used in the QA and QC
processes. Some examples of quality metrics include defect density, failure rate,
availability, reliability, and test coverage.
8.3.1.3. Quality Checklists
Standardized checklists that verify a set of required steps to be performed are built
in by organizations to ensure consistency in tasks. In some application areas,
checklists are also available from commercial providers.
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8.3.1.4. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes costs that
have been authorized and incurred.
8.3.1.5. Approved Change Requests
Approved change request can include modifications such as revised work methods,
defect repair and revised schedule. The timely implementation of approved changes
needs to be verified.
8.3.1.6. Deliverables
A deliverable is any unique and verifiable product, result, or capability that results
in a validated deliverable required by the project.
8.3.1.7. Project Documents
Project documents like agreements, Quality audit reports and change logs supported
with corrective action plans, training plans and assessments of effectiveness and
process documentation such as those obtained using either the seven basic quality
tools or the quality management and control tools can be used as an input in this
process.
8.3.1.8. Organizational Process Assets
The organizational process assets such as organization’s quality standards and
policies, standard work guidelines, issue and defect reporting procedures and
communication policies can be used as in input in this process.
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8.3.2. Control Quality – Tools and Techniques
8.3.2.1. Seven Basic Quality Tools
The seven basic quality tools, also known as 7QC Tools, are used within the context
of the PDCA (Plan, Do, Check, Act) Cycle to solve quality-related problems. The
seven basic quality tools are:
Cause-and-effect diagrams which are also known as fishbone diagrams or as
Ishikawa diagrams.
Flowcharts which are also referred to as process maps
Check sheets which are also known as tally sheets
Pareto diagrams exist as a special form of vertical bar chart and are used to
identify the vital few sources that are responsible for causing most of a
problem’s effects.
Histograms are a special form of bar chart and are used to describe the central
tendency, dispersion, and shape of a statistical distribution.
Control charts are used to determine whether or not a process is stable or has
predictable performance.
Scatter diagrams plot ordered pairs (X, Y) and are sometimes called correlation
charts because they seek to explain a change in the dependent variable, Y, in
relationship to a change observed in the corresponding independent variable, X.
8.3.2.2. Statistical Sampling
Statistical sampling involves selecting few samples for inspection at random. Sample
frequency and sizes should be determined during the Plan Quality Management
process so the cost of quality will include the number of tests, expected scrap, etc.
8.3.2.3. Inspection
An inspection is the examination of a work product to determine if it conforms to
documented standards. The results of an inspection can include measurements and
may be conducted at any level.
8.3.2.4. Approve change request review
All approved change requests should be reviewed to verify that they were
implemented as approved.
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8.3.3. Control Quality – Outputs
8.3.3.1. Quality Control Measurements
Quality control measurements are the documented results of control quality
activities which are captured in the format that was specified through the Plan
Quality Management process.
8.3.3.2. Validated Changes
During Inspection, all the changes implemented are reviewed and are either
accepted or rejected.
8.3.3.3. Validated Deliverables
A goal of the Control Quality process is to determine the correctness of deliverables.
The results of performing the Control Quality process are verified deliverables.
Verified deliverables are an input to Validate Scope (5.5.1.4) for formalized
acceptance.
8.3.3.4. Work Performance Information
The work performance data is analyzed in context and integrated based on the
relationship across areas. Work performance data gets transformed into Work
Performance Information and provides a basis for decisions making associated with
project.
8.3.3.5. Change Requests
As a result of the QC process, all corrective and preventive actions that are required
in the project are initiated in accordance with Integrated Change Control Process.
8.3.3.6. Project Management Plan Updates
Any changes to the Quality management Plan that is a result of changes in the QC
process warrants an update in the project management plan.
8.3.3.7. Project Document Updates
Project documents like Quality standards, Agreements, Quality audit reports and
change logs supported with corrective action plans, Training plans, Process get
updated as an output of this process.
8.3.3.8. Organizational Process assets Update
Results of Quality Control process especially the causes of the variances, reasons for
corrective actions and other lessons may be archived to use as a reference in future
projects.
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Chapter 9: Project Human Resource
Management
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9. Project Human Resource Management
Project Human Resource Management includes the processes that organize, manage, and lead
the project team.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
9 Project
Human
Resource
Management
9.1 Plan Human ResourceManag4ement
9.2 Acquire Project Team
9.3 Develop Project Team
9.4 Manage Project Team
9.1. Plan Human Resource Management
Human Resource Planning process helps organization in developing staffing management
plan, determines project roles, responsibilities, and reporting relationships. Staffing
management plan specifies how and when team members will be acquired, determining If
a training need exists and if It does, what training is required to fill the gap, recognition
and rewards plan and safety issue. Project roles are designated for persons or groups from
inside or outside the performing organization.
Human Resource Planning determines project roles, responsibilities and reporting
relationships and creates the staffing management plan. Project roles can be designated
for persons or groups. Those persons or groups can be from inside or outside the organization
performing the project. The staffing management plan can Include how and when project
team members will be acquired, the criteria for releasing them from the project,
identification of training needs, recognition and rewards, compliance considerations, safety
issues and the impact of the staffing management plan on the organization.
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Plan Human Resource Management
Inputs Tools and Techniques Outputs
Project Management Plan
Activity Resource
Requirements
Enterprise Environmental
Factors
Organizational Process Assets
Organization Charts and
Position Descriptions
Networking
Organizational Theory
Expert Judgment
Meetings
Human Resource
Management Plan
9.1.1. Plan Human Resource Management – Inputs
9.1.1.1. Project Management Plan
The project management plan consist of project life cycle and the processes that
will be applied to each phase, change management plan and needs and methods of
communication among stakeholders. This information will be used as an input and
will set the guidelines on how the project team will be formed.
9.1.1.2. Activity Resource Requirements
It is used to determine the human resource needs for the project and preliminary
requirements regarding the required people and competencies for the project team
members.
9.1.1.3. Enterprise Environmental Factors
The definition of project roles and responsibilities is developed with in accordance
with enterprise factors that surround and influence the project success. The
definition of project roles and responsibilities is developed with an understanding of
the ways that existing organizations will be involved. Some of the relevant enterprise
environmental factors are Organizational, Interpersonal, Logistical and Political.
9.1.1.4. Organizational Process Assets
Lessons learned from the past projects can be used as in input to help plan the
current project that can reduce the amount of planning time needed at the
beginning of a project and reduce the likelihood of missing important
responsibilities. Organizational Process Assets also includes templates and checklists
for creating the HR Management plan.
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9.1.2. Plan Human Resource Management – Tools and Techniques
9.1.2.1. Organization Charts and Position Descriptions
Various formats are available to document team member roles and responsibilities
and most of them fall into one of three types: hierarchical, matrix, and text
oriented. Additionally, some project assignments are listed in subsidiary project
plans like Risk, Quality, or Communication plans with a clear Objective to ensure
that each work package has an unambiguous owner and all team members have a
clear understanding of their roles and responsibilities.
9.1.2.2. Networking
Informal interaction with others is needed to understand political arid interpersonal
factors that may affect the effectiveness of various staffing management options
within an organization or industry. Networking activities include proactive
correspondence, luncheon meetings, informal conversations, and trade conferences.
While concentrated networking can be a useful technique at the beginning of a
project, carrying out networking activities on a regular basis before a project begins
is also effective.
9.1.2.3. Organizational Theory
It provides information regarding the behavior of people, teams, and organizational
units. By applying proven principles, the amount of time needed to create the
Human Resource Management Plan can be shortened. It also improves the likelihood
that the planning wilt be effective.
9.1.2.4. Expert Judgment
Access to the inputs require to develop the HR management plan is often provided
by Expert Judgment. Such judgment and expertise is applied to any technical and
management details during this process. Such expertise is provided by any group or
individual with specialized knowledge or training and can be made available from
several sources including:
Other departments/units within the organization
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
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9.1.2.5. Meetings
While developing the HR management plan, project manager, project team and
stakeholders may need to conduct meetings to discuss HR management plan.
9.1.3. Plan Human Resource Management – Outputs
9.1.3.1. Human Resource Management Plan
Key output of this process is the HR Management Plan which provides guidance on
how project human resources will be defined, staffed and released. The HR
Management plan includes following:
Roles and Responsibilities: The items Listed below must be addressed while
listing the roles and responsibilities needed to complete the project:
1) Role: It is a label that describes the portion of a project for which a
person is accountable. Role clarity concerning authority, responsibilities,
and boundaries is essential for project success.
2) Authority: Authority is the right, given to project manager or
management, to apply project resources, makes decisions, and sign
approvals. Some of decisions that need clear authority include the
selection of a method for completing an activity, quality acceptance, and
response to project variances. Team members operate best when their
individual levels of authority matches their individual responsibilities.
3) Responsibility: The work that a project team member is expected to
perform In order to complete the project’s activities.
4) Competency: Competency is the skill and capacity required to complete
project activities. The performance of team members can be affected
negatively if they lack required competencies. When such mismatches
are identified, proactive responses such as training, hiring, schedule
changes, or scope changes are initiated.
Project Organization Chart: It displays the project team members and their
reporting relationships in a graphical manner. It can be formal or informal,
highly detailed or broadly framed, based on the needs of the project.
Staffing Management Plan: It describes how and when resource requirements
will be met as per the needs of the project. The plan is updated continuously
during the project to direct ongoing acquisition of the team members and
actions towards their development. Information in the staffing management
plan varies by application area and project size but items to consider
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includes, Staff Acquisition, Resource Calendars, Staff Release Plan, Training
Needs, Reward and Recognition, Compliance and Safety.
9.2. Acquire Project Team
Acquire Project Team is the process of acquiring the human resources needed to complete
the project. The project management team may or may not have control over team
members selected for the project.
Acquire Project Team
Inputs Tools and Techniques Outputs
Human Resource
Management Plan
Enterprise Environmental
Factors
Organizational Process
Assets
Pre-assignment
Negotiation
Acquisition
Virtual Teams
Multi-criteria decision
analysis
Project Staff
Assignments
Resource Calendars
Project Management
Plan Updates
9.2.1. Acquire Project Team – Inputs
9.2.1.1. Human Resource Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities
and Project organization charts that will provide key inputs on how the project team
members will be identified, staffed, managed and released.
9.2.1.2. Enterprise Environmental Factors
Factors that influence acquisition of the project team includes availability of the
resources in the organization, competency levels, experience and their cost, HR
administration policies and their cost rates.
9.2.1.3. Organizational Process Assets
The organizational process assets that influence the Acquire Project Team process
include, organizational standard policies, processes, and procedures.
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9.2.2. Acquire Project Team – Tools and Techniques
9.2.2.1. Pre-assignment
Sometimes, project team members are pre-assigned that means they are selected
in advance. This situation may occur if the project is the result of specific people
being promised as part of a competitive proposal, if the project is dependent on the
expertise of particular persons, or if some staff assignments are defined within the
project charter.
9.2.2.2. Negotiation
Negotiations may happen on many projects. To ensure that the project receives
appropriately competent staff in the required time frame, and that project team
members will be able to work on the project until their responsibilities are
completed, the project management team may need to negotiate with Functional
managers. The project management team may also need to negotiate with other
project teams within the performing organization to appropriately assign scarce or
specialized resources.
9.2.2.3. Acquisition
Sometimes, required services can be acquired from outside sources if the performing
organization lacks the in-house staff needed to complete the project. This can
involve hiring individual consultants or subcontracting work to another organization.
9.2.2.4. Virtual Teams
While acquiring project team members, the use of virtual teams, which can be
defined as groups of people with a shared goal, creates new possibilities. Virtual
teams can also be defined as, who fulfill their roles with little or no time spent
meeting face to face. The availability of electronic communication, such as email
and video conferencing, has made such teams feasible. The virtual team format
makes it possible to form teams of people from the same company who live in
widespread geographic areas.
9.2.2.5. Multi-criteria decision analysis
Multi-criteria decision analysis is a tool where selection criteria’s are developed and
used to rate or score potential team members. The criteria are given weights
according to the importance of the needs within the team. Some of the key selection
criteria’s are availability, cost, experience and ability of the resources.
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9.2.3. Acquire Project Team – Outputs
9.2.3.1. Project Staff Assignments
As an output of this process, appropriate people are assigned to the project
activities. The documentation of these assignments can include a project team
directory, memos to team members, and names inserted into other parts of the
project management plan, such as project organization charts and schedules.
9.2.3.2. Resource Calendars
It documents the time periods each project team member will work on the project.
Creating a reliable final schedule depends on having a good understanding of each
person’s schedule conflicts, including vacation time and commitments to other
projects.
9.2.3.3. Project Management Plan Updates
Key elements of Project Management plan that will be updated at end of this process
are HR & Staffing Management plans because people seldom fit the exact staffing
requirements that are planned as sometimes specific people are required to fill the
project roles and responsibilities. Other reasons for making changes to HR
Management plan include changes to team structure, roles or responsibilities.
9.3. Develop Project Team
It improves the competencies and interaction of team members to enhance project
performance. Objectives of developing project team are:
Increase team member’s ability to complete project activities by improving their
skills.
Raise productivity through greater teamwork by improving feelings of trust and
cohesiveness among team members. Examples of effective teamwork include assisting
one another when workloads are unbalanced, communicating in ways that fit
individual preferences, and sharing Information and resources. Team development
efforts have greater benefit when conducted early, but should take place throughout
the project lite cycle.
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Develop Project Team
Inputs Tools and Techniques Outputs
Human Resource
Management Plan
Project Staff Assignments
Resource Calendars
Interpersonal Skill
Training
Team-Building
Activities
Ground Rules
Co-location
Recognition and
Rewards
Personnel assessment
tools
Team Performance
Assessments
Enterprise Environmental
Factors Updates
9.3.1. Develop Project Team – Inputs
9.3.1.1. Human Resource Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities
and Project organization charts that will provide key inputs on how the project team
members will be identified, staffed, managed and released.
9.3.1.2. Project Staff Assignments
As an output of this process, appropriate people are assigned to the project
activities. The documentation of these assignments can include a project team
directory, memos to team members, and names inserted into other parts of the
project management plan, such as project organization charts and schedules.
9.3.1.3. Resource Calendars
It documents the time periods each project team member will work on the project.
Creating a reliable final schedule depends on having a good understanding of each
person’s schedule conflicts, including vacation time and commitments to other
projects.
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9.3.2. Develop Project Team – Tools and Techniques
9.3.2.1. Interpersonal Skill
Soft Skills or Interpersonal skills are particularly important for project managers to
develop the team. Effective project managers acquire a balance of technical,
interpersonal, and conceptual skills that help them analyze situations and interact
appropriately. Some of the important interpersonal skills are
Leadership
Team building
Motivation
Communication
Influencing
Decision making
Political and cultural awareness
Negotiation
Trust building
Conflict management
Coaching
9.3.2.2. Training
It includes all formal or Informal activities designed to enhance the competencies of
the project team members. Examples of training methods Include classroom, online,
computer based, on the job training from another project team member, mentoring
and coaching.
9.3.2.3. Team-Building Activities
It may vary from an agenda item, having very short duration, a status review meeting
to an offsite, professionally facilitated experience designed to improve Interpersonal
relationships. Some group activities, such as developing the WBS, may not be
explicitly designed as team building activities but can increase team cohesiveness
when that planning activity is structured and facilitated well. It also is Important to
encourage informal communication and activities because of their role in building
trust and establishing good working relationships. Teambuilding strategies are
particularly valuable when team members operate virtually from remote locations,
without the benefit of face to face contact.
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9.3.2.4. Ground Rules
Ground rules clearly specify the expected acceptable behavior by project team
members. Early commitment to clear guidelines decreases misunderstandings and
increases productivity. The process of discussing ground rules allows team members
to discover values that are important to one another. All project team members
share responsibility for enforcing the rules once they are established.
9.3.2.5. Co-location
It involves enhancing people’s ability to perform as a team by placing many or all of
the most active project team members in the same physical location. During the
project, team members can be collocated temporarily at strategically important
times, or for the entire project.
9.3.2.6. Recognition and Rewards
Recognizing and rewarding desirable behavior is an important part of the team
development process. Reward and recognition plan takes shape while creating the
HR Management plan. Award decisions are made, formally or informally, during the
process of managing the project team through performance appraisals. Only
desirable behavior should be rewarded. For example, the willingness to work
overtime to meet an aggressive schedule objective should be rewarded or recognized
but needing to work overtime as the result of poor planning should not be rewarded.
Win-lose (zero sum) rewards that only a limited number of project team members
can achieve, such as team member of the month, can hurt team cohesiveness.
Rewarding win-win behavior that everyone can achieve, such as turning progress
reports on time, tends to increase support among team members. Recognition and
rewards should consider cultural differences as well.
9.3.2.7. Personnel assessment tools
Personnel assessment tools give the project manager and the project team insight
into areas of strength and weakness. These tools help project managers assess the
team preferences, aspirations, how they process and organize information, how they
tend to make decisions, and how they prefer to interact with people.
9.3.3. Develop Project Team – Outputs
9.3.3.1. Team Performance Assessments
Formal or informal or assessments of the project team’s effectiveness is done while
implementing the team development efforts such as training, team building, and
colocation. Team’s performance can be increased by making effective team
development strategies which also increases the likelihood of meeting project
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objectives. The evaluation of a team’s effectiveness may include improvements in
skills that allow a person to perform assigned activities more effectively and
improvement in competencies and sentiments that help the team perform better as
a group reduced staff turnover rate.
9.3.3.2. Enterprise Environmental Factors Updates
The enterprise environmental factors that may be updated as a result of the Develop
Project Team process include personnel administration, employee training records,
and skill assessments.
9.4. Manage Project Team
Project performance can be enhanced by tracking team member’s performance, providing
feedback, resolving issues and coordinating changes. Team behavior, manage conflicts,
resolve issues and praise team member’s performance are also observed by the project
management team and as a result the staffing management plan is updated, change
requests are submitted, issues are resolved, input is given to organizational performance
appraisals, and lessons learned are added to the organization’s database.
Manage Project Team
Inputs Tools and Techniques Outputs
Human Resource Management
Plan
Project Staff Assignments
Team Performance Assessments
Issue Log
Work Performance Reports
Organizational Process Assets
Observation and
Conversation
Project Performance
Appraisals
Conflict Management
Interpersonal Skills
Change Requests
Project Management Plan
Updates
Project Documents
Update
Enterprise Environmental
Factors Updates
Organizational Process
Assets Updates
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9.4.1. Manage Project Team – Inputs
9.4.1.1. Human Resource Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities
and Project organization charts that will provide key inputs on how the project team
members will be identified, staffed, managed and released.
9.4.1.2. Project Staff Assignments
As an output of this process, appropriate people are assigned to the project
activities. The documentation of these assignments can include a project team
directory, memos to team members, and names inserted into other parts of the
project management plan, such as project organization charts and schedules.
9.4.1.3. Team Performance Assessments
Formal or informal or assessments of the project team’s effectiveness is done while
implementing the team development efforts such as training, team building, and
colocation. Team’s performance can be increased by making effective team
development strategies which also increases the likelihood of meeting project
objectives. The evaluation of a team’s effectiveness may include improvements in
skills that allow a person to perform assigned activities more effectively and
improvement in competencies and sentiments that help the team perform better as
a group reduced staff turnover rate.
9.4.1.4. Issue Log
An issue log can be used to document and monitor who is responsible for resolving
specific issues by a target date.
9.4.1.5. Work Performance Reports
It provides documentation about project performance against the project
management plan. Results from performance areas like control schedule, control
cost, control quality, scope verification, and procurement audits and their related
forecasts assists the project team management In determining future human
resource requirements, recognition and rewards and updates to HR Management
plan.
9.4.1.6. Organizational Process Assets
The organizational process assets that influence the Manage Project Team process
include, organizational standard policies, processes, and procedures.
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9.4.2. Manage Project Team – Tools and Techniques
9.4.2.1. Observation and Conversation
Observation and conversation are used to stay in touch with the work and attitudes
of project team members. The project management team monitors indicators such
as progress toward project deliverables, accomplishments that are a source of pride
for team members, and interpersonal issues.
9.4.2.2. Project Performance Appraisals
The length and complexity of the project, organizational policy, labor contract
requirements, and the amount and quality of regular communication determines the
need for formal or informal project performance appraisals. Project team members
receive feedback from the people who supervise their project work.
9.4.2.3. Conflict Management
Greater productivity and positive working relationships are the results of successful
conflict management whereas scarce resources, scheduling priorities and personal
work styles are major sources of conflicts. Team ground rules, group norms, solid
project management practices, like communication planning and role definition,
reduce the amount of conflict. If differences of opinion are managed properly, they
can be healthy, and can lead to increased creativity and better decision making.
When the differences become a negative factor, project team members are initially
responsible for resolving their own conflicts. The project manager should help
facilitate a satisfactory resolution in case conflict escalates. Conflict should be
addressed arty and usually in private, using a direct, collaborative approach. If
disruptive conflict continues, increasingly formal procedures will need to be used,
including the possible use of disciplinary actions.
9.4.2.4. Interpersonal Skills
People Management, relationship creation and retention are of today’s order of the
day with internal customer, external customers, external agencies, governmental
agencies, society, and stakeholders. interpersonal skills are of paramount important
in order to be successful In today’s competitive, mechanical, fast-phased,
demanding environment, coupled with a diverse workforce, call for significant
amounts of people management skills, e.g.:
Listening and conversational skills
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Leading team members
Relationship building and maintenance
Influencing individuals and organizations without formal authority
Understanding and integrating the efforts of a diverse workforce
9.4.3. Manage Project Team – Outputs
9.4.3.1. Change Requests
Staffing changes may affect the rest of the project plan irrespective of whether by
choice or by uncontrollable events. A change request can be processed through the
Integrated Change Control process when staffing issues disrupts the project plan,
such as causing the schedule to be extended or the budget to be exceeded.
9.4.3.2. Project Management Plan Updates
Approved charge requests, corrective actions, new project team member roles,
additional training, and reward decisions can result in updates to the HR
Management plan, a part of the project management plan.
9.4.3.3. Project Documents Update
Documents such as Issue log, Roles description and Project staff assignments may
require an update.
9.4.3.4. Enterprise Environmental Factors Updates
Enterprise environmental factors that may require updates may include inputs to
organizational performance appraisals and Personnel skill updates.
9.4.3.5. Organizational Process Assets Updates
Project management team should be prepared to provide inputs for regular
organizational performance appraisals of any project team member with whom they
interact in a significant way. In order to create historical database of the
organization, all knowledge learned during the project should be documented.
Lessons learned in the area of HR Management can include a Project organization
chart, position descriptions, and staffing management plans that can be saved as
templates, Ground rules, conflict management techniques, and recognition events
that was particularly useful, a procedure for virtual teams, co-Location, negotiation,
training, and team building that proved to be successful.
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Chapter 10: Project
Communications Management
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10. Project Communications Management
Project Communications Management includes the processes that are required to ensure timely
and appropriate planning, collection, creation, distribution, storage, retrieval, management,
control, monitoring, and the ultimate disposition of project information.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing Monitoring and
Controlling Closing
10 Project
Communications
Management
10.1 Plan Communications Manag4ement
10.2 Manage Communications
10.3 Control Communications
10.1. Plan Communications Management
Plan Communications Management process determines the information and communication
needs of the stakeholders, for example who needs what information, when they will need
it, how it will be given to them, and by whom. A project manager spends most of his time
communicating with the various stakeholders and providing necessary information to the
project team to successfully complete their work.
Plan Communications Management
Inputs Tools and Techniques Outputs
Project Management Plan
Stakeholders Register
Enterprise environmental
factors
Organizational process
assets
Communication
Requirement Analysis
Communication
Technology
Communication Models
Communication
Methods
Communications
Management Plan
Project Documents Update
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Meetings
10.1.1. Plan Communications Management – Inputs
10.1.1.1. Project Management Plan
The project management plan provides information about the project Including
schedule and constraints that may be relevant to Communication Management Plan.
10.1.1.2. Stakeholders Register
The stakeholder register provides the information needed to plan the communication
with project stakeholders.
10.1.1.3. Enterprise environmental factors
Environmental factors such as a Project Management Information System need to be
included to do effective communication planning. Organizational structure and
existing human resources should be taken into account in this process.
10.1.1.4. Organizational process assets
Lessons learned and historical information are two very important organizational
assets that help in creating the Communication Management Plan. These two can
provide both decisions and results based on previous similar projects concerning
communication issues.
10.1.2. Plan Communications Management – Tools and Techniques
10.1.2.1. Communication Requirement Analysis
The complete information needs of all the stakeholders are provided as a result of
the communication requirements analysis of the stakeholders. These requirements
are defined by combining the type and format of information needed with an analysis
of the value of that that information. This is to prevent overloading stakeholders
with irrelevant information.
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10.1.2.2. Communication Technology
Each stakeholder in a project may use different medium and methods for
communication. The project manager should identify the proper technology and
method for delivering information to the respective stakeholders. Communications
technology factors that can affect the project include:
The Importance and urgency of the need for information
The availability of technology, processes and methods
The people who are being utilized in the project and who will interact with
the system
The duration of the project. Is the available technology likely to change
before the project is over and if so, how scalable is the current technology?
The project working environment. Does the team meet and operate on a face-
to-face basis or in a virtual environment?
10.1.2.3. Communication Models
A basic communication model consists of two parties, sender and receiver. Medium
is the technology medium and includes the mode of communication while noise
includes any interference or barriers that might compromise the delivery of the
message. The order in which the communication will take place is encode transmit
message receive decode acknowledge feedback.
10.1.2.4. Communication Methods
There are several communication methods that are used to share information among
project stakeholders. These methods are broadly classified as follows:
Interactive communication: Between two or more parties performing a
multidirectional exchange of information.
Push communication: Sent to specific recipients who need to receive the
information.
Pull communication: Used for very large volumes of information, or for very
large audiences, and requires the recipients to access the communication
content at their own discretion.
10.1.2.5. Meetings
While developing the Communication Management Plan, project manager, project
team and stakeholders may need to conduct meetings to discuss most appropriate
way of communicating the project information to stakeholders.
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10.1.3. Plan Communications Management – Outputs
10.1.3.1. Communications Management Plan
The communications management plan describes how project communications will
be planned, structured, monitored, and controlled. Some of the key components of
the plan are listed below:
Stakeholder communication requirements
Information to be communicated
Time frame and frequency of communication
Person responsible for communicating the information
Person or groups who will receive the information
Methods or technologies used for communication
Resources allocated for communication activities
10.1.3.2. Project Documents Update
Project documents that may be updated include Project schedule and Stakeholder
register.
10.2. Manage Communications
Manage Communication involves creating, collecting, storing, retrieving and making project
performance and project related information available to project stakeholders in a timely
manner as finalized in Communication Management.
Manage Communications
Inputs Tools and Techniques Outputs
Communications
Management Plan
Work performance Reports
Enterprise environmental
factors
Organizational process
assets
Communication
technology
Communication models
Communication
methods
Information
Management Systems
Performance Reporting
Project Communications
Project Management plan
Updates
Project document updates
Organizational process
assets Updates
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10.2.1. Manage Communications – Inputs
10.2.1.1. Communications Management Plan
The communications management plan describes how project communications will
be planned, structured, monitored, and controlled. Some of the key components of
the plan are listed below:
Stakeholder communication requirements
Information to be communicated
Time frame and frequency of communication
Person responsible for communicating the information
Person or groups who will receive the information
Methods or technologies used for communication
Resources allocated for communication activities
10.2.1.2. Work performance Reports
Work performance reports are status reports, information notes, recommendations,
and updates to help project team and stakeholders to take decisions, actions, or
awareness. Source of work performance reports is the work performance information
that is compiled in the project documents.
10.2.1.3. Enterprise environmental factors
Organizational culture and structure, Government or industry standards &
regulations and Project management information system are some of the specific
enterprise environmental factors that can influence the Manage Communications
process.
10.2.1.4. Organizational process assets
Project team can refer to the communication templates historical information and
lessons learned from previous projects in Manage Communications process.
10.2.2. Manage Communications – Tools and Techniques
10.2.2.1. Communication technology
Each stakeholder in a project may use different medium and methods for
communication. The project manager should identify the proper technology and
method for delivering information to the respective stakeholders. Communications
technology factors that can affect the project include:
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The Importance and urgency of the need for information
The availability of technology, processes and methods
The people who are being utilized in the project and who will interact with the
system
The duration of the project. Is the available technology likely to change before
the project is over and if so, how scalable is the current technology?
The project working environment. Does the team meet and operate on a face-
to-face basis or in a virtual environment?
10.2.2.2. Communication models
A basic communication model consists of two parties, sender and receiver. Medium
is the technology medium and includes the mode of communication while noise
includes any interference or barriers that might compromise the delivery of the
message. The order in which the communication will take place is encode transmit
message receive decode acknowledge feedback.
10.2.2.3. Communication Methods
There are several communication methods that are used to share information among
project stakeholders. These methods are broadly classified as follows:
Interactive communication: Between two or more parties performing a
multidirectional exchange of information.
Push communication: Sent to specific recipients who need to receive the
information.
Pull communication: Used for very large volumes of information, or for very
large audiences, and requires the recipients to access the communication
content at their own discretion.
10.2.2.4. Information Management Systems
Project Information can be gathered and distributed through a variety of methods.
The most common methods are manual filing systems, electronic databases, project
management software, and systems that allow access to technical documentation,
such as engineering drawings, design specifications, and test plans. These systems
are dependent on the communication technology specified.
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10.2.2.5. Performance Reporting
The performance reporting is the collection of all baseline data, and distribution of
performance information to stakeholders. Performance reporting focuses on how
resources are being used to achieve project objectives. Performance reporting
provides information on scope, schedule, cost, and quality.
10.2.3. Manage Communications – Outputs
10.2.3.1. Project Communications
Project communications includes performance reports, deliverables status, schedule
progress, and cost incurred. Project communications can vary significantly and are
influenced by factors such as the urgency and impact of the message, its method of
delivery, and level of confidentiality.
10.2.3.2. Project Management plan Updates
The project management plan provides information on project baselines,
communications management, and stakeholder management. Each of these areas
may require updates based upon the current performance of the project against the
performance measurement baseline.
10.2.3.3. Project document updates
Issue log, Project schedule and Project funding requirements documents may get
updated as a result of Manage Communications process.
10.2.3.4. Organizational process assets Updates
The organizational process assets, which may be updated include:
Stakeholder notifications
Project reports
Project presentations
Project records
Feedback from stakeholders
Lessons learned documentation
10.3. Control Communications
Control Communications is the process of monitoring and controlling communications
throughout the entire project life cycle to ensure the information needs of the project
stakeholders are met.
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Control Communications
Inputs Tools and Techniques Outputs
Project Management plan
Project Communications
Issue Log
Work Performance Data
Organizational process
assets
Information
Management Systems
Expert Judgment
Meetings
Work Performance
Information
Change Requests
Project Management Plan
Updates
Project Documents Updates
Organizational process
assets Updates
10.3.1. Control Communications – Inputs
10.3.1.1. Project Management plan
The project management plan describes how the project will be executed,
monitored, controlled, and closed. It provides valuable information for the Control
Communications process such as:
Stakeholder communication requirements
Reason for the distribution of the information
Timeframe and frequency for the distribution of required information
Individual or group responsible for communication of the information
Individual or group receiving the information
10.3.1.2. Project Communications
Project communications includes performance reports, deliverables status, schedule
progress, and cost incurred. Project communications can vary significantly and are
influenced by factors such as the urgency and impact of the message, its method of
delivery, and level of confidentiality.
10.3.1.3. Issue Log
An issue log can be used to document and monitor resolution of issue and who is
responsible for resolving specific issues by a target date.
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10.3.1.4. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis. Work Performance Data includes costs that
have been authorized and incurred.
10.3.1.5. Organizational process assets
Project team can refer to policies, standards and procedures that are defines
communication. It may also provide the communication templates, historical
information and lessons learned from previous projects in Control Communications
process.
10.3.2. Control Communications – Tools & Techniques
10.3.2.1. Information Management Systems
Project Information can be gathered and distributed through a variety of methods.
The most common methods are manual filing systems, electronic databases, project
management software, and systems that allow access to technical documentation,
such as engineering drawings, design specifications, and test plans. These systems
are dependent on the communication technology specified.
10.3.2.2. Expert Judgment
Experts with specialized knowledge of communication and experience in similar
projects may be used to assess the impact of communication.
10.3.2.3. Meetings
Project manager, project team and stakeholders may need to conduct meetings to
discuss most appropriate way of to update and communicate the project information
to stakeholders.
10.3.3. Control Communications – Outputs
10.3.3.1. Work Performance Information
The work performance data is analyzed in context and integrated based on the
relationship across areas. Work performance data gets transformed into Work
Performance Information and provides a basis for decisions making associated with
project.
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10.3.3.2. Change Requests
As a result of the Control Communications process, all corrective and preventive
actions that are required in the project communication are initiated in accordance
with Integrated Change Control Process.
10.3.3.3. Project Management Plan Updates
The project management plan provides information on communications stakeholder
management. Each of these areas may require updates based upon the current
performance of the project against the performance measurement baseline.
10.3.3.4. Project Documents Updates
Project documents that may be updated include:
Forecasts
Performance reports
Issue log
10.3.3.5. Organizational process assets Updates
Report formats and lessons learned with respect to project communications may
become part of the historical database for current project and the performing
organization and may include the causes of issues, reasons behind the corrective
action chosen, and other types of lessons learned during the project.
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Chapter 11: Project Risk
Management
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11. Project Risk Management
Project Risk Management includes the processes of conducting risk management planning,
identification, analysis, response planning, and controlling risk on a project.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
11 Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Response
11.6 Control Risk
11.1. Plan Risk Management
Plan Risk Management is the process of deciding how to approach and conduct the risk
management activities for a project. Risk Management Planning is important to ensure
that the level, type and visibility of risk management are commensurate with both the
risk and importance of the project to the organization. Planning is also important to
provide sufficient resources and time for risk management activities and to establish an
agreed- upon basis for evaluating risks.
Plan Risk Management
Inputs Tools and Techniques Outputs
Project Management Plan
Project Charter
Stakeholders Register
Analytical Techniques
Expert Judgment
Meetings
Risk management plan
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Enterprise environmental
factors
Organizational process
assets
11.1.1. Plan Risk Management – Inputs
11.1.1.1. Project Management Plan
In planning risk management, all approved subsidiary management plans and
baselines should be taken into consideration in order to make the risk management
plan consistent with them.
11.1.1.2. Project Charter
The project charter can provide various inputs such as high-level risks, high-level
project descriptions, and high-level requirements.
11.1.1.3. Stakeholders Register
The stakeholder register contains list of all stakeholders associated with the project.
It is used as an input to get an overview of their roles.
11.1.1.4. Enterprise environmental factor
The attitude toward risk and the risk tolerance of organization and people involved
in the project will influence the project management plan. Risk attitudes and
tolerances may be expressed in policy statements or revealed in actions.
11.1.1.5. Organizational process assets
Organizations may have predefined approaches to risk management such as risk
categories, common definition of concepts and terms, standard templates, roles and
responsibilities and authority levels for decision making.
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11.1.2. Plan Risk Management – Tools and Techniques
11.1.2.1. Analytical Techniques
Analytical techniques are applied in project management to choose strategic options
related to project risk. They also help understand and define the overall risk
management context of the project and perform high-level assessment of the risk
exposure of the project based on the overall project context.
11.1.2.2. Expert Judgment
To prepare a comprehensive Risk Management Plan, expert judgment and expertise
are applied to any risk related technical and management details during this process.
Such expertise is provided by any group or individual with specialized knowledge or
training and can be made available from several sources including:
Other departments/units within the organization
Senior Management
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups.
11.1.2.3. Meetings
Project manager, project team and stakeholders may need to conduct meetings to
develop the Risk management Plan.
11.1.3. Plan Risk Management – Outputs
11.1.3.1. Risk Management Plan
The Risk Management Plan describes how risk management will be structured and
performed on the project. It becomes a subset of the project management plan. The
risk management plan includes the following:
Methodology: Defines the approaches, tools, and data sources that may be
used to perform risk management on the project.
Roles and Responsibilities: Defines the Lead, support, members of the risk
management team for each type of activity in the risk management plan,
assigns people to these roles, and clarifies their responsibilities.
Budgeting: Assigns resources and estimates costs needed for risk management
for inclusion in the project cost baseline.
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Timing: Defines schedule and frequency of the risk management process that
will be performed throughout the project tile cycle, and establish risk
management activities in the project schedule.
Risk Categories: Provides a structure that ensure a comprehensive process of
systematically Identifying risk to a consistent level of detail and contributes to
the effectiveness and quality of Risk Identification. A risk breakdown structure
(RBS) is one approach to providing such a structure.
Definitions of Risk Probability and impact: The quality and credibility of the
Qualitative Risk Analysis process requires that different levels of the risk
probabilities and impact be defined. General definitions of probability levels
and impact Levels are tailored to the individual projects during the Risk
Management planning process for use in the Qualitative Risk Analysis process.
Probability and Impact Matrix: Risks are prioritized according to their
potential implications on meeting the project’s objectives. The typical
approach in prioritizing risk is to use a lookup table or a Probability and Impact
Matrix. The specific combination of probability and impact leads to a risk being
rated as of high, moderate or low Importance.
Revised Stakeholders’ tolerances: Stakeholders tolerances may be revised in
the Plan Risk Management process, as they apply to the specific project.
Reporting Formats: Describes the content and format of the risk register as
well as any other required risk related reports. Defines how the outcomes of
the risk management processes will be documented, analyzed, and
communicated.
Tracking: Documents whether and the risk management processes will be
audited.
11.2. Identify Risk
Identify Risk process determines which risk may affect the project and documents their
characteristics. Participants in risk identification activities can include project manager,
project team members, risk management team (if assigned), subject matter experts from
outside the project team, customers, end users, other project managers, stakeholders and
risk management expects. The Risk Identification process usually leads to the Qualitative
Risk Analysts process.
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Identify Risk
Inputs Tools and Techniques Outputs
Risk management plan
Cost management plan
Schedule management plan
Quality management plan
Human Resource Management
plan
Scope baseline
Activity cost estimates
Activity duration estimates
Stakeholder register
Project documents
Procurement documents
Enterprise environmental
factors
Organizational process assets
Documentation reviews
Information gathering
techniques
Checklist analysis
Assumptions analysis
Diagramming techniques
SWOT analysis
Expert judgment
Risk register
11.2.1. Identify Risk – Inputs
11.2.1.1. Risk management plan
Key elements of the Risk Management Plan that contribute to the Identify Risks
process are the roles and responsibilities, provision for risk management activities
in the budget and schedule, and categories of risk.
11.2.1.2. Cost management plan
The cost management plan provides processes and controls that can be used to help
identify risks across the project.
11.2.1.3. Schedule management plan
The schedule management plan provides insight to project time/schedule objectives
and expectations which may be impacted by risks (known and unknown).
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11.2.1.4. Quality management plan
The quality management plan provides a baseline of quality measures and metrics
for use in identifying risks.
11.2.1.5. Human Resource Management plan
The human resource management plan provides guidance on how project human
resources should be defined, staffed, managed, and eventually released form a key
input to identify risk process.
11.2.1.6. Scope baseline
Project assumptions are found in the project scope statement. Uncertainty in
project assumptions should be evaluated as potential causes of project risk.
11.2.1.7. Activity cost estimates
Activity cost estimate reviews are useful in identifying risks as they provide a
quantitative assessment of the likely cost to complete scheduled activities.
11.2.1.8. Activity duration estimates
Activity duration estimate reviews are useful in identifying risks related to the time
allowances for the activities or project as a whole, again with the width of the range
of such estimates indicating the relative degree(s) of risk.
11.2.1.9. Stakeholder register
Information about the stakeholders is useful for soliciting inputs to identify risks, as
this will ensure that key stakeholders, especially the stakeholder, sponsor, and
customer are interviewed or otherwise participate during the Identify Risks process.
11.2.1.10. Project documents
Project team gets the information about decisions that help better identify project
risks. Project documents improve cross-team and stakeholder communications and
include Project Charter, Project Schedule, Issue Logs, and Schedule Network
Diagrams etc.
11.2.1.11. Procurement Documents
Any external procurement of product, service or result become a key input to the
Identify Risks process.
11.2.1.12. Enterprise environmental factors
Enterprise environmental factors that can influence the Identify Risks process
include:
Published information, including commercial databases
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Academic studies
Published checklists
Benchmarking
Industry studies
Risk attitudes.
11.2.1.13. Organizational process assets
Organizational process assets that can influence the Identify Risks process include:
Project files, including actual data
Organizational and project process controls
Risk statement formats or templates
Lessons learned
11.2.2. Identify Risk – Tools and Techniques
11.2.2.1. Documentation reviews
A structured review of project documentation, including subsidiary plans,
assumptions, prior project files, and other information can be performed.
11.2.2.2. Information gathering techniques
Key information gathering techniques used in identifying risk can include following:
Brainstorming: The goal of brainstorming is to obtain a comprehensive list of
project risks. Risks are then Identified and categorized by type of risk and their
definitions are sharpened.
Delphi Technique: A facilitator uses a questionnaire to solicit ideas about the
important project risks. The responses are summarized and are then re-
circulated to the experts for further comment.
Interviewing: Interviewing experienced project participants, stakeholders and
subject matter expects can help identify risks.
Root Cause Identification: This is an inquiry into the essential causes of a
project’s risks. Effective risk responses can be developed if the root cause of
the risk is addressed.
11.2.2.3. Checklist analysis
Risk Identification checklists can be developed based on historical information and
knowledge that has been associated from previous similar projects and from other
sources of information. The lowest Level of the risk can also be used as a risk
checklist.
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11.2.2.4. Assumptions analysis
Assumptions analysis is a tool that explores the validity of assumptions as they apply
to the project. It identifies risks to the project from inaccuracy, inconsistency, or
incompleteness of assumptions.
11.2.2.5. Diagramming techniques
Risk diagramming techniques may include:
Cause-and-effect diagrams: These are also known as Ishikawa or Fishbone
diagrams, and are useful for identifying root causes of risks.
System or process flow charts: These show how various elements of a system
interrelate.
Influence diagrams: These are graphical representations of situations showing
causal influences, time ordering of events, and other relationships among
variables and outcomes.
11.2.2.6. SWOT analysis
This technique ensures examination of the project from each of the SWOT (Strength,
Weakness, Opportunity and Threat) perspectives, to increase the breadth of
considered risks.
11.2.2.7. Expert judgment
Risks may be identified directly by experts with relevant experience with similar
projects or business areas. Such experts should be identified by the project manager
and invited to consider all aspects of the project and suggest possible risks based on
their previous experience and areas of expertise.
11.2.3. Identify Risk – Outputs
11.2.3.1. Risk register
The primary outputs from Risk Identification are the Initial entries into the risk
register, which becomes a component of the project management plan. The
preparation of the risk register begins in the Risk identification process with the all
the potential risk being captured, and then becomes available to other project
management and Project Risk Management processes. It includes all identified risks
including their root causes and uncertain project assumptions.
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11.3. Perform Qualitative Risk Analysis
Qualitative Risk Analysis includes methods for prioritizing the identified risks for further
action, such as Quantitative Risk Analysts or Risk Response Planning. Organizations can
improve the project’s performance effectively by focusing on high priority risks. Qualitative
Risk Analysis assesses the priority of identified risks using their probability of occurrence,
the corresponding impact on project objectives as well as other factors such as the time
frame if the risks occurs and risk tolerance of the project constraints of cost, schedule scope
and quality.
Perform Qualitative Risk Analysis
Inputs Tools and Techniques Outputs
Risk management plan
Scope Baseline
Risk register
Enterprise Environment
Factors
Organizational process
assets
Risk probability and impact
assessment
Probability and impact
matrix
Risk data quality
assessment
Risk categorization
Risk urgency assessment
Expert judgment
Project Documents
Updates
11.3.1. Perform Qualitative Risk Analysis – Inputs
11.3.1.1. Risk management plan
Key elements of the risk management plan for Qualitative Risk Analysis include roles
and responsibilities for conducting risk management, budgets, activities for risk
management, risk categories, definition of probability and impact, the probability
and Impact matrix, and revised stakeholders’ risk tolerances. These inputs are
usually tailored to the project during the Risk Management Planning process.
11.3.1.2. Scope Baseline
Projects of a common or recurrent type tend to have more well-understood risks.
Projects using state-of-the-art or first-of-its-kind technology, and highly complex
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projects, tend to have more uncertainty. This can be evaluated by examining the
scope baseline.
11.3.1.3. Risk register
The risk register contains the detailed list of risks and their associated information
that will be used to assess and prioritize risks.
11.3.1.4. Enterprise Environment Factors
Enterprise environmental factors may provide insight and context to the risk
assessment such as Industry studies of similar projects by risk specialists and risk
databases that may be available from industry or proprietary sources.
11.3.1.5. Organizational process assets
Data about past projects and lessons learned knowledge base can be used in the
Qualitative risk analysis.
11.3.2. Perform Qualitative Risk Analysis – Tools and Techniques
11.3.2.1. Risk probability and impact assessment
Risk probability assessment investigates the likelihood that each specific risk will
occur. Risk impact assessment investigates the potential effect on the project
objectives such as time, cost, scope or quality, including both negative effects for
threats and positive effects for opportunities.
Probability and impact are assessed for each identified risk. Risks can be assessed in
interviews or meetings and the level of probability for each risk and its impact on
each objective is evaluated.
Explanatory details, including assumptions justifying the levels assigned, is also
recorded. Risk probabilities and impacts are rated according to the definitions given
in the risk management plan.
11.3.2.2. Probability and impact matrix
Risks can be prioritized for further quantitative analysis and response, based on their
risk rating. Evaluation of each risk’s importance and, hence priority for attention is
typically conducted using a lockup table or a probability and impact matrix.
The organization should determine which combinations of probability and impact
results in a classification of high, moderate or low risk.
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11.3.2.3. Risk data quality assessment
A qualitative risk analysis requires accurate and unbiased data if it is to be credible.
Analysis of the quality of risk data is a technique to evaluate the degree to which
the data about risks is useful for risk management. It involves examining the degree
to which the risk is understood and the accuracy, quality, reliability and integrity of
the data about the risk.
11.3.2.4. Risk categorization
Risks to the project can be categorized by sources of risk (e.g., using the RBS), the
area of the project affected (e.g. using the WBS), or other useful category (e.g.
project phase) to determine areas of the project most exposed to the effects of
uncertainty. Grouping risks by common root causes can lead to developing effective
risk responses.
11.3.2.5. Risk urgency assessment
Risks requiring near-term responses may be considered more urgent to address.
Indication of priority can include time to affect a risk response, symptoms and
warning signs and the risk rating.
11.3.2.6. Expert judgment
Expert judgment is required to assess the probability and impact of each risk to
determine its location in the matrix. Experts generally are those having experience
with similar, recent projects.
11.3.3. Perform Qualitative Risk Analysis – Outputs
11.3.3.1. Project Documents Updates
The information pertaining to risks is limited in risk register during the Risk
identification process. The risk register is updated with information from qualitative
Risk Analyses and the updated risk register is included in the project management
plan. Another document that gets updated in this process is the assumption log.
11.4. Perform Quantitative Risk Analysis
Quantitative Risk Analysis is performed on risks that have been prioritized by the Qualitative
Risk Analysis process as potentially and substantially impacting the project’s competing
demands. The Quantitative Risk Analysis process analyses the effect of those risk events
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and assigns a numerical rating to those risks. It also presents a quantitative approach
towards making a decisions in the presence of uncertainty.
Perform Quantitative Risk Analysis
Inputs Tools and Techniques Outputs
Risk management plan
Cost management plan
Schedule management plan
Risk register
Enterprise Environmental
Factors
Organizational process
assets
Data gathering and
representation techniques
Quantitative risk analysis
and modeling techniques
Expert judgment
Project Documents
Updates
11.4.1. Perform Quantitative Risk Analysis – Inputs
11.4.1.1. Risk management plan
The risk management plan provides guidelines, methods, and tools to be used in
quantitative risk analysis.
11.4.1.2. Cost management plan
The cost management plan provides guidelines on establishing and managing risk
reserves.
11.4.1.3. Schedule management plan
The schedule management plan provides guidelines on establishing and managing
risk reserves.
11.4.1.4. Risk register
The risk register is used as a reference point for performing quantitative risk
analysis.
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11.4.1.5. Enterprise Environmental Factors
Enterprise environmental factors may provide insight and context to the risk analysis
such as industry studies of similar projects by risk specialists, and risk databases that
may be available from industry or proprietary sources.
11.4.1.6. Organizational process assets
The organizational process assets that can influence the Perform Quantitative Risk
Analysis process include information from prior, similar completed projects.
11.4.2. Perform Quantitative Risk Analysis – Tools and Techniques
11.4.2.1. Data gathering and representation techniques
Interviewing: Interviewing techniques are used to quantify the probability and
impact of risks on project objectives. Documenting the rationale of the risk
ranges is an important component of the risk interview, because it can provide
information on reliability and credibility of the analysis.
Probability Distribution: Continuous probability distribution represents the
uncertainty in values, such as durations of schedule activities and costs of
project components.
11.4.2.2. Quantitative risk analysis and modeling techniques
Commonly used techniques in Quantitative Risk Analysis include:
Sensitivity Analysis: Sensitivity analysis helps to determine the risks that have
the most potential impact on the project. It examines the extent to which the
uncertainty of each project element affects the objective being examined
when all other uncertain elements are held at their baseline values.
Expected Monetary Value Analysis: Expected Monetary Value (EMV) analysis
is a statistical concept that calculates the average outcome when the future
includes scenarios that may or may not happen (i.e., analysis under
uncertainty). A common use of this type of analysis is in decision tree analysis.
Decision Tree Analysis: Decision Tree Analysis is usually structured using a
decision tree diagram that describes a situation under consideration, and the
implications of each of the available choices and possible scenarios.
Modeling and simulation: A project simulation uses a model that translates
the uncertainties specified at a detailed level of the project into their
potential impact on project objectives. Simulations are typically performed
using the Monte Carlo technique.
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11.4.2.3. Expert judgment
Subject matter expects internal or external to the organization, such as engineering
or statistical experts, validate data and techniques.
11.4.3. Perform Quantitative Risk Analysis – Outputs
11.4.3.1. Project Documents Updates
The risk register is initiated in the Risk Identification process and updated in
Qualitative Risk Analysis. It is further updated in Quantitative Risk Analysis. The risk
register is a component of the project management plan. Updates include
Probabilistic analysis of the project, Probability of achieving cost and time
objectives, Prioritized list of quantified risks and Trends in quantitative risk analysis.
11.5. Plan Risk Responses
Plan Risk Response is the process of developing options and determining actions to enhance
opportunities and reduce threats to the project’s objective. It follows the Qualitative Risk
Analysis and Quantitative Risk Analysis processes. Risk Response Planning addresses the risks
by their priority, inserting resources and activities into the budget, schedule and project
management plan as needed.
Plan Risk Responses
Inputs Tools and Techniques Outputs
Risk management plan
Risk register
Strategies for negative
risks or threats
Strategies for positive risks
or opportunities
Contingent response
strategies
Expert judgment
Project management
plan updates
Project document
updates
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11.5.1. Plan Risk Responses – Inputs
11.5.1.1. Risk management plan
Important components of the risk management plan include roles and
responsibilities, risk analysis definitions, risk thresholds for low, moderate, and high
risks, and the time and budget required to conduct Project Risk Management.
11.5.1.2. Risk register
The risk register is first developed in the Risk Identification process, and is updated
during the Qualitative and Qualitative Risk Analysis processes. The Plan Risk
Response process may have to refer back to Identified risks, root causes of risks, lists
of potential responses, risk owners, symptoms, and warning signs in developing risk
responses.
11.5.2. Plan Risk Responses – Tools and Techniques
11.5.2.1. Strategies for negative risks or threats
There are four strategies typically deal with threats or risks that may have negative
impacts on project objectives if they occur. These strategies are:
Avoid: Risk avoidance involves changing the project management plan to
eliminate the threat posed by an adverse risk, to isolate the project objective
from the risk’s impact, or to relax the objective that is in jeopardy. Risks that
arise early in the project can be avoided by clarifying requirements, obtaining
information, improving communication, or acquiring expertise.
Transfer: Risk transference requires shifting the negative impact of a threat,
along with ownership of the response, to a third party. Transferring the risk
simply gives another party responsibility for its management. It does not
eliminates it.
Mitigate: Risk mitigation implies a reduction in the probability and/or impact of
an adverse risk event to an acceptable threshold. Taking early action to reduce
the probability and/or impact of a risk occurring on the project is often more
effective than trying to repair the damage after the risk has occurred. Where it
is not possible to reduce probability, a mitigation response might address the
risk impact by targeting linkages that determine the severity.
Accept: Risk acceptance involves the decision to acknowledge the risk and not
take any actions unless the risk occurs. This strategy is adopted where it is not
possible or cost-effective to address a specific risk in any other way.
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11.5.2.2. Strategies for positive risks or opportunities
There are four strategies typically deal with opportunities or risks that may have
positive impacts on project objectives if they occur. These strategies are:
Exploit: The exploit strategy may be selected for risks with positive impacts
where the organization wishes to ensure that the opportunity is realized. This
strategy seeks to eliminate the uncertainty associated with a particular upside
risk by ensuring the opportunity definitely happens.
Share: Sharing a positive risk involves allocating ownership to a third party
who is best able to capture the opportunity for the benefits of the project.
Enhance: This strategy modifies the “size of an opportunity by increasing
probability and/or positive impacts, and by identifying and maximizing key
drivers of these post-impact risks. Strategy for Both Threats and Opportunities.
Accept: Acceptance involves the decision to acknowledge the opportunity and
not take any actions unless the opportunity arises.
11.5.2.3. Contingent response strategies
Some responses are designed for use only if certain events occur. For some risks, it
is appropriate for the project team to make a response plan that will only be
executed under certain predefined conditions and if there is sufficient warning to
implement the plan. Events that trigger the contingency response, such as missing
intermediate milestones or gaining higher priority with a supplier, should be defined
and tracked.
11.5.2.4. Expert judgment
Input from experts pertaining to the actions to be taken on a specific and defined
risk. Expertise may be provided by any group or person with specialized education,
knowledge, skill, experience, or training in establishing risk responses.
11.5.3. Plan Risk Responses – Outputs
11.5.3.1. Project management plan updates
Various components of the project management plan are updated to reflect the
changes in process, tolerance or behavior related to specific subsidiary area. Some
of the key components that gets updated are:
Schedule management plan: Changes in resource loading and leveling, and
schedule strategy.
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Cost management plan: Changes in cost accounting, tracking, and reports and
updates to the budget strategy and how contingency reserves are consumed.
Quality management plan: Changes in behavior related to requirements,
quality assurance, or quality control and updates to the requirements
documentation.
Procurement management plan: Alterations in the make-or-buy decision or
contract type(s) driven by the risk responses.
Human resource management plan: Changes in project organizational
structure and resource applications, staff allocation, as well as updates to the
resource loading.
Scope baseline: Modified or omitted work generated by the risk responses.
Schedule baseline: Changes in schedule baseline to reflect changes in Scope
baseline.
Cost baseline: Changes in schedule baseline to reflect changes in Scope
baseline.
11.5.3.2. Project document updates
When appropriate risk responses are chosen and agreed upon, they are included in
the risk register. Updates also include symptoms and warning signs of risk’s
occurrence.
11.6. Control Risks
Control Risk is the process of identifying, analyzing and planning for newly arising risks,
keeping track of the earlier identified risks and those on the watch List, reanalyzing existing
risks, monitoring trigger conditions for contingency plans, monitoring residual risks and
reviewing the execution of risk responses while evaluating their effectiveness.
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Control Risks
Inputs Tools and Techniques Outputs
Project Management plan
Risk Register
Work Performance Data
Work Performance reports
Risk reassessment
Risk audits
Variance and trend
analysis
Technical performance
measurement
Reserve analysis
Meetings
Work Performance
Information
Changes requests
Project management plan
updates
Project document updates
Organizational process
assets updates
11.6.1. Control Risks – Inputs
11.6.1.1. Project Management plan
The project management plan, which includes the risk management plan, provides
guidance for risk monitoring and controlling.
11.6.1.2. Risk Register
The risk register has key inputs that Include identified risks and risk owners, agreed
- upon risk responses, specific implementation actions, symptoms and warning signs
of risk, residual and secondary risks, a watch-list of low priority risks and cost
contingency reserves.
11.6.1.3. Work Performance Data
Work performance data includes project’s deliverables status, corrective actions
and performance reports are key inputs to Control Risk process.
11.6.1.4. Work Performance reports
Work performance reports provide information on project work performance such as
variance analysis, earned value data and forecasting that may influence the risk
management processes.
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11.6.2. Control Risks – Tools and Techniques
11.6.2.1. Risk reassessment
Project risk reassessments should be regularly scheduled to identify new risks,
reassessment of current risks and closing of the risks that are no longer valid.
11.6.2.2. Risk audits
Risk audits examine and document the effectiveness of risk responses in dealing with
identified risks and their root causes, as well as the effectiveness of the risk
management process.
11.6.2.3. Variance and trend analysis
Earned value analysis and other methods of project variance and trend analysis may
be used for monitoring overall project performance. Outcomes from these analyses
may forecast potential deviation of the project cost and schedule targets.
11.6.2.4. Technical performance measurement
Technical performance measurement compares technical accomplishments during
project execution to the project management plan’s schedule of technical
achievements.
11.6.2.5. Reserve analysis
Reserve analysis compares the amount of the contingency reserves remaining to the
amount of risk remaining at any time in the project in order to determine if the
remaining reserve is adequate.
11.6.2.6. Meetings
Project risk management can be an agenda item at periodic status meetings.
11.6.3. Control Risks – Outputs
11.6.3.1. Work Performance Information
Work performance information, as a Control Risks output, provides a mechanism to
communicate and support project decision making.
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11.6.3.2. Changes requests
Implementing contingency plans or workarounds sometimes results in a change
request. Change requests that may include corrective or preventive action plans are
prepared and submitted to the Perform Integrated Change Control process.
11.6.3.3. Project management plan updates
If the approved change requests have an effect on the risk management processes,
the corresponding component documents of the project management plan are
revised and reissued to reflect the approved changes.
11.6.3.4. Project document updates
The key document to be updated as an outcome of Control Risk process is Risk
Register. It may get updated with outcomes of risk reassessments, risk audits, and
periodic risk reviews. It may also contain result of project’s risk and risk response.
11.6.3.5. Organizational process assets updates
The risk management processes produce information that may be used for future
projects, and should be captured in the organizational process assets.
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Chapter 12: Project Procurement
Management
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12. Project Procurement Management
Project Procurement Management includes the processes necessary to purchase or acquire
products, services, or results needed from outside the project team.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing
Monitoring
and
Controlling
Closing
12 Project
Procurement
Management
12.1 Plan Procurement Management
12.2 Conduct Procurements
12.3 Control Procurements
12.4 Close Procurements
12.1. Plan Procurement Management
Purpose of the Plan Procurement Management is to identify which project needs can best
be met by purchasing or acquiring products, services, or results outside the project
organization. This process involves consideration of whether, how, what, how much, and
when to acquire. When the project obtains products, services, and results required for
project performance from outside the performing organization, the processes from Plan
Procurement Management through Close Procurements are performed for each item to be
purchased or acquired.
Plan Procurement Management
Inputs Tools and Techniques Outputs
Project Management Plan
Requirements
documentation
Risk register
Make-or-buy analysis
Expert judgment
Market Research
Meetings
Procurement management
plan
Procurement statements of
work
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Activity resource
requirements
Project schedule
Activity cost estimates
Stakeholder Register
Enterprise environmental
factors
Organizational process
assets
Procurement documents
(RFP/RFI)
Source selection criteria
Make-or-buy decisions
Change requests
Project Documents Update
12.1.1. Plan Procurement Management – Inputs
12.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components. The
project management plan describes the need, justification, requirements, and
current boundaries for the project. These subsidiary plans include:
Project Scope Statement
WBS
WBS Dictionary
12.1.1.2. Requirements documentation
Requirements documentation captures the requirements that the project must meet
pertaining to stakeholder expectations and those requirements must be considered
during planning for procurement.
12.1.1.3. Risk register
The risk register provides the list of risks, along with the results of risk analysis and
risk response planning.
12.1.1.4. Activity resource requirements
Description of the resource types and number of resources required for each activity
in a work package is considered during plan procurement process since the assigned
resources and resource availability will significantly influence the procurement
decisions.
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12.1.1.5. Project schedule
It includes planned start & finish dates, durations, milestones, and resources for
overall project and planned start & finish dates for each activity.
12.1.1.6. Activity cost estimates
An activity cost estimate is a quantitative assessment of the likely costs of the
resources required to complete activities.
12.1.1.7. Stakeholder Register
The stakeholder register provides an exhaustive list of the key stakeholders who will
provide the requirements and it also captures their main expectations.
12.1.1.8. Enterprise environmental factors
The enterprise environmental factors that can influence the Plan Procurement
Management process include:
Marketplace conditions
Products, services, and results that are available in the marketplace
Suppliers, including past performance or reputation
Terms and conditions
Unique local requirements.
12.1.1.9. Organizational process assets
Existing format and informal procurement related policies, procedures, guidelines
and management systems that are considered in developing the procurement
management plan and selecting the contract types to be used are provided by
organizational process assets.
There are different types of contracts for different purposes. Contract types
generally fall into one of the three broad categories:
Fixed Price or Lump Sum Contracts: The buyer and seller agree on a well-
defined deliverable for a set price. In this kind of contract, the biggest risk is
borne by the seller.
1) Firm Fixed Price Contracts (FFP)
2) Fixed Price Incentive Fee Contracts (FPIF)
3) Fixed Price Incentive Fee Contracts (FPIF)
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Cost-reimbursable contracts: All the costs the seller takes on during the
project are charged back to the buyer, thus the seller is reimbursed. Three of
the more common types of cost-reimbursable contracts are:
1) Cost Plus Fixed Fee (CPFF)
2) Cost Plus Incentive Fee (CPIF)
3) Cost Plus Award Fee (CPAF)
Time and Material contracts (T&M): This type of contract is a mix of fixed
price and cost reimbursable contract. The full amount of the material costs is
not known at the time the contract is awarded. This resembles a cost
reimbursable contract as the costs will continue to grow during the contract’s
life.
12.1.2. Plan Procurement Management – Tools and Techniques
12.1.2.1. Make-or-buy analysis
A make-or-buy analysis is a technique used to determine whether particular work
can best be accomplished by the project team or should be purchased from outside
sources. One of the key component to consider in make or buy analysis is cost. The
objective of make or buy analysis is whether it’s more cost effective to buy the
products and services or more cost effective for the organization to produce the
goods and services needed for the project. Available contract types are also
considered during the buy analysis. The risk sharing between the buyer and seller
determines the suitable contract types, while the specific contract terms and
conditions formalize the degree of risk being assumed by the buyer and seller.
12.1.2.2. Expert judgment
Expert purchasing judgment can also be used to develop or modify the criteria that
will be used to evaluate seller proposals. Expert legal judgment may involve the
services of legal staff to assist with unique procurement issues, terms, and
conditions.
12.1.2.3. Market Research
Market research includes examination of industry and specific vendor capabilities.
12.1.2.4. Meetings
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Project manager, project team and stakeholders may need to conduct meetings with
potential bidders for exchange of additional information.
12.1.3. Plan Procurement Management – Outputs
12.1.3.1. Procurement management plan
How the procurement processes will be managed from developing procurement
documentation through contract closure is described in the procurement
management plan that can include:
Types of contracts to be used
Who will prepare independent estimates and if they are needed as evaluation
criteria
Actions that project management team can take on their own if the performing
organization has a procurement or purchasing department of their own.
Standardized procurement documents if needed
Coordinating procurement with other project aspects such as scheduling and
performance reporting
Constraints and assumptions that could affect planned purchases and
acquisitions
Handling the lead time required to purchase or acquire items from sellers and
coordinating them with the project schedule development
Setting the schedule dates in each contract for the contract deliverables and
coordinating with the schedule development and control processes.
Identifying pre-qualified selected sellers, if any.
Procurement metrics to be used to manage contracts and evaluate sellers.
Procurement management plan is a subsidiary component of the project
management plan that can be highly detailed or broadly framed and is based upon
the needs of the project, it can be formal or informal.
12.1.3.2. Procurement statements of work
The procurement statement of work for each contract is developed from the project
scope statement, WBS and WBS dictionary. It describes the procurement items in
sufficient detail to allow prospective sellers to determine if they are capable of
providing the item. Sufficient details can vary based on the items or the need of the
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buyer. A procurement SOW describes the product service or result to be supplied by
the seller. Information included in a procurement SOW can include specifications,
quantity desired, quality levels, performance data, period of performance, work
location and other requirements.
12.1.3.3. Procurement documents (RFP/RFI)
Procurement documents are used to solicit proposals from prospective sellers.
Different types of procurement documents may include request for information
(RFI), invitation for bid (IFB), request for proposal (RFP), request for quotation
(RFQ), tender notice, invitation for negotiation, and invitation for seller’s initial
response. Specific procurement terminology used may vary by industry and location
of the procurement.
12.1.3.4. Source selection criteria
Source selection criteria are developed and used to rate or score proposals. They
are often included as part of the procurement documents. Evaluation criteria can
be limited to purchase price if the procurement items is readily available from a
number of acceptable sellers. Purchasing price in this context includes both the cost
of the item and ancillary expenses such as delivery. Other selection criteria can be
identified and documented to support an assessment for a more complex product or
service. For example:
Understanding of need
Overall life-cycle cost
Technical capability
Management approach
Technical approach
Financial capability
Production capacity and interest
Business size and type
References
Intellectual property rights
Proprietary rights
12.1.3.5. Make-or-buy decisions
A make-or-buy analysis results in a decision of whether particular work can best be
accomplished by the project team or needs to be purchased from outside sources.
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12.1.3.6. Change requests
Decisions taken during procurement planning can create the need for additional
change requests. Change requests are processed for review and disposition through
the Perform Integrated Change Control process.
12.1.3.7. Project Documents Update
A decision of procurement may require update in requirements documentation,
requirements traceability matrix and Risk register.
12.2. Conduct Procurements
Conduct Procurements is the process of obtaining seller responses, selecting a seller, and
awarding a contract. It provides alignment of internal and external stakeholder
expectations through established agreements.
Conduct Procurements
Inputs Tools and Techniques Outputs
Procurement management
plan
Procurement documents
Source selection criteria
Seller proposals
Project documents
Make-or-buy decisions
Procure Statement Of Work
Organizational process
assets
Bidder conferences
Proposal evaluation
techniques
Independent estimates
Expert judgment
Advertising
Analytical Techniques
Procurement
negotiations
Selected sellers
Agreements
Resource calendars
Change requests
Project management plan
updates
Project document updates
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12.2.1. Conduct Procurements – Inputs
12.2.1.1. Procurement management plan
The procurement management plan describes how the procurement processes will
be managed from developing procurement documentation through contract closure.
12.2.1.2. Procurement documents
Procurement documents provide an audit trail for contracts and other agreements.
12.2.1.3. Source selection criteria
Source selection criteria can include information on the supplier’s required
capabilities, capacity, delivery dates, product cost, life-cycle cost, technical
expertise, and the approach to the contract.
12.2.1.4. Seller proposals
Seller proposals, received in response form the basic information that will be used
by an evaluation body to select one or more successful bidders (sellers).
12.2.1.5. Project documents
Project documents that are often considered include the risk-related contract
decisions included within the risk register.
12.2.1.6. Make-or-buy decisions
Organizations procuring goods or services analyze the need of buying products versus
making the items themselves.
12.2.1.7. Procure Statement Of Work
The procurement statement of work provides suppliers with a clearly stated set of
goals, requirements, and outcomes from which they can provide a quantifiable
response.
12.2.1.8. Organizational process assets
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Listings of prospective and previously qualified sellers, information on relevant past
experience with sellers and prior agreements can be an important input in
conducting the procurement.
12.2.2. Conduct Procurements – Tools and Techniques
12.2.2.1. Bidder conferences
Bidder conferences are meetings with prospective sellers prior to preparation of a
bid or proposal and to ensure that all prospective sellers have a clear, common
understanding of the technical and contractual requirements. Response to questions
can be incorporated into the procurement requirements as amendments. All
potential sellers are given equal standing during this initial buyer and seller
interaction to produce the best bid.
12.2.2.2. Proposal evaluation techniques
A formal evaluation review process is defined by the buyer’s procurement policies.
The evaluation committee will make their selection for approval by management
prior to the award.
12.2.2.3. Independent estimates
The procuring organization may elect to either prepare its own independent
estimate, or have an estimate of costs prepared by an outside professional
estimator, to serve as a benchmark on proposed responses.
12.2.2.4. Expert judgment
Expert judgment may be used in evaluating seller proposals. This can include
expertise from functional disciplines such as contracting, legal, finance, accounting,
engineering, design, research, development, sales, and manufacturing.
12.2.2.5. Advertising
Existing lists of potential sellers can be expanded by placing advertisements in
general circulation publications such as selected newspapers or in trade
publications. Some government jurisdictions require public advertising of certain
types of procurement items, and most government jurisdictions require public
advertising or online posting of pending government contracts.
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12.2.2.6. Analytical Techniques
Procurements involve defining a need in such a way that vendors can bring value
through their offerings. To ensure that the need can be and is met, analytical
techniques can help organizations identify the readiness of a vendor to provide the
desired end state, determine the cost expected to support budgeting, and avoid cost
overruns due to changes.
12.2.2.7. Procurement negotiations
Procurement negotiations clarify the structure, requirements, and other terms of
the purchases so that mutual agreement can be reached prior to signing the
contract. The project manager may not be the lead negotiator on procurements.
The project manager and other members of the project management team may be
present during negotiations to provide assistance, and, if needed, to add
clarification of the project’s technical, quality, and management requirements.
12.2.3. Conduct Procurements – Outputs
12.2.3.1. Selected sellers
The selected sellers are those whose proposals have been reviewed using the
evaluation criteria and have been judged to be in a competitive range.
12.2.3.2. Agreements
An agreement is a legal relationship subject to remedy in the courts that is awarded
to each selected seller. It can be in the form of a complex document or a simple
purchase order. Regardless of the document’s complexity, an agreement is a
mutually binding legal agreement that obligates the seller to provide the specified
products, services or results and obligates the buyer to pay the seller.
12.2.3.3. Resource calendars
The quantity and availability of the resources and those dates on which each specific
resource can be active or idle are documented.
12.2.3.4. Change requests
Outcome of the conduct procurement process may result in changes in scope,
schedule or cost baselines of the project. Change request processed for review and
disposition through the Perform Integrated Change Control process.
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12.2.3.5. Project management plan updates
Elements of the project management plan that may be updated include:
Cost baseline
Scope baseline
Schedule baseline
Communications management plan
Procurement management plan
12.2.3.6. Project document updates
Project documents that may be updated include:
Requirements documentation
Requirements traceability documentation
Risk register
Stakeholder register
12.3. Control Procurements
Control Procurements is the process of managing relationships between buyer and seller,
monitoring contract performance, and making changes and corrections to contracts as
appropriate.
Control Procurements
Inputs Tools and Techniques Outputs
Project management plan
Procurement documents
Agreements
Approved change requests
Work Performance reports
Work performance Data
Contract change
control system
Procurement
performance reviews
Inspections and audits
Performance reporting
Payment systems
Claims administration
Work Performance
Information
Change requests
Project management plan
updates
Project documentation
Update
Organizational process
assets updates
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Records management
system
12.3.1. Control Procurements – Inputs
12.3.1.1. Project management plan
The project management plan describes how the procurement processes will be
managed from developing procurement documentation through contract closure.
12.3.1.2. Procurement documents
Procurement documents contain complete supporting records for administration of
the procurement processes; this includes procurement contract awards and the
statement of work.
12.3.1.3. Agreements
Agreements are understandings between parties, including understanding of the
duties of each party.
12.3.1.4. Approved change requests
Approved change requests can include modifications to the terms and conditions of
the contract, including the procurement statement of work, pricing, and
descriptions of the products, services, or results to be provided.
12.3.1.5. Work Performance reports
Seller performance-related documentation including technical documentation and
work performance information.
12.3.1.6. Work performance Data
Work performance data includes, the extent to which quality standards are being
satisfied, the costs that have been incurred or committed and identification of the
seller invoices that have been paid.
12.3.2. Control Procurements – Tools and Techniques
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12.3.2.1. Contract change control system
A contract change control system defines the process by which the procurement can
be modified.
12.3.2.2. Procurement performance reviews
The objective of procurement performance review is to identify performance
successes or failures, progress with respect to the procurement statement of work
and non-compliance to the agreement that allows buyer to quantify the seller’s
demonstrated ability or inability to perform work. A procurement performance
review is a structured review of seller’s progress to delivery project scope and
quality within cost and on schedule as compared to the agreement.
12.3.2.3. Inspections and audits
Inspections and audits can be conducted during execution pf the project to identify
any weaknesses in the seller’s work process or deliverables.
12.3.2.4. Performance reporting
Performance reporting provides management with information about how
effectively the seller is achieving the contractual objectives. It is integrated into
project performance reporting.
12.3.2.5. Payment systems
The payment system includes appropriate reviews and approvals by the project
management team. Payments are made in accordance with the terms of the contract
by accounts payable system of the buyer. For large projects with many or complex
procurement requirements, the project can develop its own payment system.
12.3.2.6. Claims administration
Those requested changes where the buyer and seller cannot agree on compensation
for the change, or cannot agree that a change has even occurred are called as
contested changes and constructive changes. These changes are variously called
claims, disputes or appeal. Claims are documented, processed, monitored and
managed without the contract lifecycle usually in accordance with the terms of the
contract.
12.3.2.7. Records management system
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A records management system is used by the project manager to manage contract
documentation and records. It specifies the set of processes, related control
functions, and automation tools that are consolidated and combined into a whole as
part of the project management information system.
12.3.3. Control Procurements – Outputs
12.3.3.1. Work Performance Information
Work performance information provides a basis for identification of current or
potential problems to support later claims or new procurements. By reporting on the
performance of a vendor, the organization increases knowledge of the performance
of the procurement, which supports improved forecasting, risk management, and
decision making.
12.3.3.2. Change requests
Control Procurements process may result in submitting change requests to the
project management plan, its subsidiary plans, and other components, such as the
cost baseline, schedule baseline, and procurement management plan.
12.3.3.3. Project management plan updates
Elements of the project management plan that may be updated include Procurement
management plan, Schedule and Cost baselines.
12.3.3.4. Project documentation Update
Project documents that may be updated are procurement documentation with all
supporting schedules, requested unapproved contract changes, and approved change
requests.
12.3.3.5. Organizational process assets updates
Elements of the organizational process assets that may be updated include:
Correspondence
Payment schedules and requests
Seller performance evaluation documentation
12.4. Close Procurements
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Close Procurements addresses each agreement applicable to the project or a project phase.
It supports the Close Project or phase process as it involves verification that all work and
deliverables were acceptable. It also involves administrative activities, such as updating
records to reflect final results and archiving such information for future use.
Close Procurements
Inputs Tools and Techniques Outputs
Project management plan
Procurement documentation
Procurement audits
Procurement
Negotiations
Records management
system
Closed procurements
Organizational process
assets updates
12.4.1. Close Procurements – Inputs
12.4.1.1. Project management plan
The project management plan contains the procurement management plan, which
provides the details and guidelines for closing out procurements.
12.4.1.2. Procurement documentation
Information on contract schedule, scope, quality, and cost performance along with
all contract change documentation, payment records, and inspection results are
collated, indexed and filed to close the procurements.
12.4.2. Close Procurements – Tools and Techniques
12.4.2.1. Procurement audits
The procurement audit is a structured review to identify successes and failures that
warrant recognition in the preparation or administration of other procurement
contracts on the project.
12.4.2.2. Procurement Negotiations
The final equitable settlement of all outstanding issues, claims, and disputes is done
through negotiations. Whenever settlement cannot be achieved through direct
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negotiation, some form of alternative dispute resolution (ADR) including mediation
or arbitration may be explored.
12.4.2.3. Records management system
A records management system is used by the project manager to manage contract
and procurement documentation and records.
12.4.3. Close Procurements – Outputs
12.4.3.1. Closed procurements
The buyer provides the seller with formal written notice that the contract has been
completed. Requirements for formal procurement closure are defined in the terms
and conditions of the contract and are included in the procurement management
plan.
12.4.3.2. Organizational process assets updates
At end of the procurement, a complete set of indexed contract documentation is
archived. It also includes lessons learned and process improvement
recommendations to improve the future projects.
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Chapter 13: Project Stakeholders
Management
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13. Project Stakeholders Management
Project Stakeholder Management includes the processes required to identify the people,
groups, or organizations that could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and to develop appropriate
management strategies for effectively engaging stakeholders in project decisions and
execution.
ThePMBOK® Guide – 5th Edition.
Knowledge
Area
Project Management Process Groups
Initiating Planning Executing Monitoring and
Controlling Closing
13 Project
Stakeholders
Management
13.1 Identify Stakeholders
13.2 Plan StakeholdersManagement
13.3 Manage Stakeholders Engagement
13.4 Control Stakeholders Engagement
13.1. Identify Stakeholders
Identify Stakeholders is the process of identifying the people, groups, or organizations that
could impact or be impacted by a decision, activity, or outcome of the project, analyzing
and documenting relevant information regarding their interests, involvement,
interdependencies, influence, and potential impact on project success.
Identify Stakeholders
Inputs Tools and Techniques Outputs
Project charter
Procurement documents
Enterprise environmental
factors
Organizational process
assets
Stakeholder analysis
Expert judgment
Meetings
Stakeholder register
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13.1.1. Identify Stakeholders – Inputs
13.1.1.1. Project charter
The project charter provide key inputs about internal and external stakeholders
related with the project and affected by the result or the execution of the project,
such as project sponsor(s), customers, team members, groups and departments
participating in the project, and other people or organizations affected by the
project.
13.1.1.2. Procurement documents
Procurement documents can provide important inputs if the project is the result of
a procurement activity. Both the parties involved in the procurement key project
stakeholders.
13.1.1.3. Enterprise environmental factors
Organizational culture and structure, global, regional or local trends, and practices,
or industry standards are the environmental factors that can influence the identify
stakeholders process.
13.1.1.4. Organizational process assets
Organizational process assets can provide stakeholders register templates and
lessons learned from previous projects.
13.1.2. Identify Stakeholders – Tools and Techniques
13.1.2.1. Stakeholder analysis
Stakeholder analysis is systematic gathering and analyzing of information to
determine whose interests should be taken into account in a project. Project
manager uses stakeholder analysis to assess interests, positions, alliances, and
importance given to the project by such stakeholders.
Stakeholder analysis generally follows the steps described below:
Identify all potential project stakeholders
Analyze the potential impact or support each stakeholder could generate
Assess how key stakeholders are likely to react or respond in various
situations
There are multiple classification models used for stakeholders analysis, such as:
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Grouping the stakeholders based on their power and interest
Grouping the stakeholders based on their power and influence
Grouping the stakeholders based on their influence and impact
Describing classes of stakeholders based on their power, urgency, and
legitimacy
13.1.2.2. Expert judgment
To ensure comprehensive identification and listing of stakeholders, judgment and
expertise should be sought from groups or individuals with specialized training or
subject matter expertise.
13.1.2.3. Meetings
Project team can meet to develop an understanding of major project stakeholders,
and to exchange and analyze information about roles, interests, knowledge, and the
overall position of each stakeholder in the project.
13.1.3. Identify Stakeholders – Outputs
13.1.3.1. Stakeholder register
Output of the Identify Stakeholders process is the stakeholder register which
contains following information for each stakeholder in the register:
Identification information
Assessment information (Major requirements, main expectations, potential
influence in the project)
Stakeholder classification (Internal/external, supporter/neutral/resistor,
etc.)
The stakeholder register should be consulted and updated on a regular basis, as
stakeholders may change throughout the life cycle of the project.
13.2. Plan Stakeholder Management
Plan Stakeholder Management is the process of 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.
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Plan Stakeholder Management
Inputs Tools and Techniques Outputs
Project Management Plan
Stakeholders Register
Enterprise environmental
factors
Organizational process
assets
Expert Judgment
Meetings
Analytical Techniques
Stakeholders Management
Plan
Project document updates
13.2.1. Plan Stakeholder Management – Inputs
13.2.1.1. Project Management Plan
The information used for the development of the stakeholder management plan
includes:
Description of how work will be executed to accomplish the project objectives
Description of how human resources requirements will be met and how roles
and responsibilities, reporting relationships
Change management plan
Need and techniques for communication among stakeholders.
13.2.1.2. Stakeholders Register
Stakeholder register contains following information for each stakeholder in the
register:
Identification information
Assessment information (Major requirements, main expectations, potential
influence in the project)
Stakeholder classification (Internal/external, supporter/neutral/resistor, etc.)
The stakeholder register provides the information needed to plan appropriate ways
to engage project stakeholders.
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13.2.1.3. Enterprise environmental factors
All enterprise environmental factors are used as inputs to this process, because the
management of stakeholders should be adapted to the project environment.
13.2.1.4. Organizational process assets
All organizational process assets are used as inputs for the Plan Stakeholder
Management process. Of these, lessons learned database and historical information
are of particular importance, because they provide insights on previous stakeholder
management plans and their effectiveness.
13.2.2. Plan Stakeholder Management – Tools and Techniques
13.2.2.1. Expert Judgment
Based on the project objectives, the project manager should apply expert judgment
to decide upon the level of engagement required at each stage of the project from
each stakeholder. Judgment and expertise should be sought from groups or
individuals with specialized training or subject matter expertise or insight into the
relationships within the organization.
13.2.2.2. Meetings
Project team can meet to discuss, review or develop appropriate strategies to
effectively manage and engage major project stakeholders.
13.2.2.3. Analytical Techniques
The current engagement level of all stakeholders needs to be compared to the
planned engagement levels required for successful project completion. The
engagement level of the stakeholders can be classified as follows:
Unaware: Unaware of project and potential impacts
Resistant: Aware of project and potential impacts and resistant to change
Neutral: Aware of project yet neither supportive nor resistant
Supportive: Aware of project and potential impacts and supportive to change
Leading: Aware of project and potential impacts and actively engaged in
ensuring the project is a success.
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13.2.3. Plan Stakeholder Management – Outputs
13.2.3.1. Stakeholders Management Plan
The stakeholder management plan is a component of the project management plan
that defines the strategies required to effectively engage stakeholders. The
stakeholder management plan can provide Stakeholder communication
requirements, Information to be distributed to stakeholders, Information to be
distributed to stakeholders.
13.2.3.2. Project document updates
Plan Stakeholders Management can result in updating project schedule and
stakeholders register.
13.3. Manage Stakeholder Engagement
Managing stakeholders refers to effectively managing communications to satisfy the needs
of, and resolve Issues with project stakeholders. Actively managing stakeholders increases
the likelihood that the project will not veer off track due to unresolved stakeholders issues.
Manage Stakeholder Engagement
Inputs Tools and Techniques Outputs
Stakeholder Management
Plan
Communications
Management Plan
Change Log
Organizational process
assets
Communication
methods
Interpersonal Skills
Management Skills
Issue Log
Change Requests
Project Management Plan
Updates
Project Documents Update
Organizational Process
Assets Updates
13.3.1. Manage Stakeholder Engagement – Inputs
13.3.1.1. Stakeholder Management Plan
The stakeholder management plan provides guidance on how the various
stakeholders can be best involved in the project. The stakeholder management plan
provides the understanding of stakeholder’s goals, objectives and level of
communication required during the project.
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13.3.1.2. Communications Management Plan
The communication requirements of the stakeholders are documented in the
communications management plan.
13.3.1.3. Change Log
A change log is used to document changes that occur during a project. These
changes—and their impact on the project in terms of time, cost, and risk—are
communicated to the appropriate stakeholders.
13.3.1.4. Organizational process assets
Organizational communication requirements and historical information about
previous projects are some of the key inputs team need to consider while managing
the stakeholders engagement.
13.3.2. Manage Stakeholder Engagement – Tools and Techniques
13.3.2.1. Communication methods
There are several communication methods that are used to share information among
project stakeholders. These methods are broadly classified as follows:
Interactive communication: Between two or more parties performing a
multidirectional exchange of information.
Push communication: Sent to specific recipients who need to receive the
information.
Pull communication: Used for very large volumes of information, or for very
large audiences, and requires the recipients to access the communication
content at their own discretion.
13.3.2.2. Interpersonal Skills
Interpersonal skills are of paramount important in order to be successful In today’s
competitive, mechanical, fast-phased, demanding environment, coupled with a
diverse workforce, call for significant amounts of people management skills, e.g.:
Listening and conversational skills
Leading team members
Relationship building and maintenance
Influencing individuals and organizations without formal authority
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Understanding and integrating the efforts of a diverse workforce
13.3.2.3. Management Skills
The project manager applies management skills to coordinate and harmonize the
group toward accomplishing the project objectives. For example:
Facilitate consensus toward project objectives
Influence people to support the project
Negotiate agreements to satisfy the project needs
Modify organizational behavior to accept the project outcomes.
13.3.3. Manage Stakeholder Engagement – Outputs
13.3.3.1. Issue Log
An issue log can be used to document and monitor resolution of issue identified
during managing the stakeholders.
13.3.3.2. Change Requests
Managing stakeholder engagement may result in a change request to the project
management plan. It may also include corrective or preventive actions to the project
itself or to the interaction with the impacted stakeholders, as appropriate.
13.3.3.3. Project Management Plan Updates
Elements of the project management plan that may be updated is the stakeholder
management plan when new or changed stakeholders requirements are identified.
13.3.3.4. Project Documents Update
Stakeholder register is one of the project documents that may get updated as
information on stakeholders change, when new stakeholders are identified, or if
registered stakeholders are no longer involved in or impacted by the project.
13.3.3.5. Organizational Process Assets Updates
The organizational process assets that may be updated include:
Stakeholder notifications
Project reports
Project presentations
Project records
Feedback from stakeholders
Lessons learned documentation
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13.4. Control Stakeholder Engagement
Control Stakeholder Engagement is the process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.
Control Stakeholder Engagement
Inputs Tools and Techniques Outputs
Project management plan
Issue log
Work Performance Data
Project Documents
Information
Management Systems
Expert Judgment
Meetings
Work Performance
Information
Change requests
Project management plan
updates
Project document updates
Organizational Process
Assets Update
13.4.1. Control Stakeholder Engagement – Inputs
13.4.1.1. Project management plan
Project Management Plan is used to develop the stakeholder management plan. It
provides input important to Control Stakeholders Engagement like how work will be
executed to accomplish the project objectives, how human resources requirements
will be met, how roles and responsibilities, reporting relationships, and staffing
management will be addressed and structured for the project. It also provide the
techniques for communication among stakeholders.
13.4.1.2. Issue log
An issue log can be used to document and monitor resolution of issue and who is
responsible for resolving specific issues by a target date.
13.4.1.3. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations
and measurements of activities while carrying out the project work. Raw data is
gathered throughout the execution phase and passed to the controlling processes of
each process area for detailed analysis.
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13.4.1.4. Project Documents
Multiple project documents originating from initiation, planning, execution, or
control processes may be used as supporting inputs for controlling stakeholder
engagement.
13.4.2. Control Stakeholder Engagement – Tools and Techniques
13.4.2.1. Information Management Systems
Project Information can be gathered and distributed through a variety of methods.
The most common methods are manual filing systems, electronic databases, project
management software, and systems that allow access to technical documentation,
such as engineering drawings, design specifications, and test plans. These systems
are dependent on the communication technology specified.
13.4.2.2. Expert Judgment
Based on the project objectives, the project manager should apply expert judgment
to decide upon the level of engagement required at each stage of the project from
each stakeholder. Judgment and expertise should be sought from groups or
individuals with specialized training or subject matter expertise or insight into the
relationships within the organization.
13.4.2.3. Meetings
Project team can meet to develop an understanding of major project stakeholders,
and to exchange and analyze information about roles, interests, knowledge, and the
overall position of each stakeholder in the project.
13.4.3. Control Stakeholder Engagement – Outputs
13.4.3.1. Work Performance Information
The work performance information is the performance data collected from various
controlling processes, analyzed in context, and integrated based on relationships
across areas.
13.4.3.2. Change requests
Analysis of project performance and interactions with stakeholders often generates
change requests in the form of recommended corrective or preventive actions. These
change requests are processed through the Perform Integrated Change Control
process
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13.4.3.3. Project management plan updates
As stakeholders engage with the project the overall effectiveness of the stakeholder
management strategy can be evaluated. As needed changes in approach or strategy
are identified, affected sections of the project management plan may need to be
updated to reflect these changes.
13.4.3.4. Project document updates
Project team may need to update Stakeholder register as stakeholder’s information
may change due to addition of new stakeholders or when existing stakeholders no
longer involved in the project. It may also require updates to issue log as new issues
may be identified and current issues may get resolved during the process.
13.4.3.5. Organizational Process Assets Update
The organizational process assets that may be updated include:
Stakeholder notifications
Project reports
Project presentations
Project records
Feedback from stakeholders
Lessons learned documentation