Material PMP

Table of content
 Day-1
 PMP Training – Introduction
 Project Management Framework
 Project Stakeholder Management
 Project Scope Management
 Day-2
 Project Schedule Management
 Project Communication Management
 Project Quality Management
 Day-3
 Project Cost Management
 Project Resource Management
 Project Risk Management
 Day-4
 Project Procurement Management
 Project Integration Management
 Exam Approach
PMP Training - Introduction
Introduction
• PMI stands for Project Management Institute

• Over 750,000 Members and credential holders across 185 countries
• Headquartered in Philadelphia, USA - founded in 1969
• Advocates and promotes Best Practices in Project, Program & Portfolio
Management
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Why Become a Certified PMP®
• Widely recognized Project Management Certification

• Worldwide recognition of your knowledge of Project
Management
• Demonstrates Proof of Professional Achievement
• Improves the way you manage your Projects
• Increases your Marketability
• Displays your willingness to pursue Growth
• Increases Customer Confidence
• Valued Globally across Industry Verticals & Companies
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Project
Management
Framework
New
Assurance
HR Mgt
Control
Move
Control
New
Control
Project Manager’s Role
❖ Technical project management. The knowledge, skills, and behaviors related

to specific domains of project program, and portfolio management. The
technical aspects of performing one’s role.
❖ Leadership. The knowledge, skills, and behaviors needed to guide, motivate,

and direct a team, to help an organization achieve its business goals.
❖ Strategic and business management. The knowledge of and expertise in the

industry and organization that enhanced performance and better delivers
business outcomes
End.
Project
Integration
Management
Project Integration Management
'Project Integration Management includes the processes and activities needed to
identify, define, combine, unify, and coordinate the various processes and project
management activities within the Project Management Process Groups.
Develop Project Charter— The process of developing a document that formally authorizes the
existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.
Develop Project Management Plan— The process of defining, preparing, and coordinating all
subsidiary plans and integrating them into a comprehensive project management plan.
Direct and Manage Project Work— The process of performing the work defined in the project
management plan and implementing approved changes to achieve the project’s objectives.
Manage Project Knowledge – The process of using existing knowledge and creating new
knowledge to achieve the project’s objectives and contribute to organizational learning
Monitor and Control Project Work— The process of tracking, reviewing, and reporting project
progress against the performance objectives defined in the project management plan.
Perform Integrated Change Control— The process of reviewing all change requests;
approving changes and managing changes to deliverables, organizational process assets,
project documents, and the project management plan; and communicating their disposition.
Close Project or Phase— The process of finalizing all activities across all of Project
Management Process Groups to formally complete the phase or project.
Key Concepts:
•Project Integration Management is specific to Project Managers and cannot

be delegated or transferred.
•It provides a project management plan to achieve the project objectives
•Ensures creation and use of the appropriate knowledge to and from the
project
•Manages the performance and changes of the activities in the PMP
•Makes integrated decisions regarding key changes impacting the project.
•Measures and monitors the project’s progress and takes appropriate action to
meet project objectives
•Completes all the work of the project and formally closes each phase,
contract and project as a whole
•Manages phase transitions when necessary
Trends and Emerging Practices
• Use of automated tools
•Use of visual management tools
•Project Knowledge Management
•Expanding the project manager’s responsibilities to include more involvement in

Project initiation and Stakeholder identification which had been the main responsibility
of the management and the PMO till now
•Hybrid Methodologies: Examples: Use of Agile & other iterative practices, Business
Analysis techniques for requirement management
Tailoring Considerations:
•Project Life cycle
•Development Life cycle
•Management approaches
•Knowledge Management
•Change
•Governance
•Lessons Learned
•Benefits
Considerations for Agile / Adaptive environments
Iterative and Agile approaches promote the engagement of team members

as local domain experts in integration management.
The control of the detailed product planning and delivery is delegated to

the team in case of agile environment.
The project manager’s focus is on building a collaborative decision making

environment and the team has the ability to respond to changes
Develop Project Charter
The process of developing a document that formally authorizes the existence of a

project and provides the project manager with the authority to apply organizational
resources to project activities.
The key benefit of this process is a well-defined project start and project
boundaries, creation of a formal record of the project, and a direct way for senior
management to formally accept and commit to the project.
Develop Project Charter - Inputs
Business Management Plan:
Business Case which provides the justification for the investment being made in the
project. It includes the business need and the cost-benefit analysis, as well as other
information from a business standpoint to select the project. The Business Case is
created due to any of the following:
•Market demand
•Organizational need
•Customer request
•Technological advance
•Legal requirement
•Ecological impact
•Social need
Agreements
Enterprise Environmental Factors
Organizational Process Assets

Develop Project Charter - Outputs
The Project Charter should include the:
•Project purpose or justification:
•Measurable project objectives and related success criteria
•Summary budget:
•Summary milestone schedule:
•High-level requirements:
•High-level project description and product characteristics
•Assigned project manager and his/her responsibility and authority
The Project Charter should be issued by the project initiator or sponsor.
A project manager is assigned as early in the project as feasible, preferably while the
project charter is being developed and always prior to the start of the planning.
The project charter can be developed by the sponsor or the project manager in
collaboration with the initiating entity
Develop Project Charter - Outputs
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Develop Project Management Plan
Develop Project Management Plan is the process of defining, preparing, and

coordinating all subsidiary plans and integrating them into a comprehensive
project management plan.
The key benefit of this process is a central document that defines the basis of
all project work.
The project management plan defines how the project is executed,

monitored and controlled, and closed.
The Project Management Plan integrates and consolidates all of the

subsidiary plans and baselines from the planning processes. Along with the
Project Management Plan, Project Documents are used to manage the
project.
Once the Project Management Plan is base lined, it may only be changed
through the Perform Integrated Change Control process. However, the
Project Management Plan is often updated with Outputs from other
processes
To ensure stakeholders' buy-in, the Project Management Plan should be

prepared with input from the project team, and then approved by relevant
stakeholders.
Direct and Manage Project work
Direct and Manage Project Work is the process of leading and performing the
work defined in the project management plan and implementing approved
changes to achieve the project’s objectives.
The key benefit of this process is that it provides overall management of the
project work.
Direct and Manage Project Work
Direct and Manage Project Work activities include, but are not limited to:
•Perform activities to accomplish project objectives;

•Create project deliverables to meet the planned project work;
•Provide, train, and manage the team members assigned to the project;
•Obtain, manage, and use resources including materials, tools, equipment, and
facilities; Implement the planned methods and standards;
•Establish and manage project communication channels, both external and
internal to the project team;
•Generate work performance data, such as cost, schedule, technical and quality
progress, and status to facilitate forecasting;
•Issue change requests and implement approved changes into the project’s
scope, plans, and environment;
•Manage risks and implement risk response activities;
•Manage sellers and suppliers;
•Manage stakeholders and their engagement; and
•Collect and document lessons learned and implement approved process
improvement activities.
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Direct and Manage Project work - Inputs
Approved Change Requests
Approved change requests are an output of the Perform Integrated Change Control
process, and include those requests reviewed and approved for implementation by
the change control board (CCB).
The approved change request may be a corrective action, a preventative action, or

a defect repair. The approved change requests can also modify the policies, project
management plan, procedures, costs, or budgets or revise the schedules.
Corrective action—An intentional activity that realigns the

performance of the project work with the project management plan;
Preventive action—An intentional activity that ensures the future

performance of the project work is aligned with the project
management plan;
Defect repair—An intentional activity to modify a nonconforming

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product or product component
Direct and Manage Project work - Tools
An important tool used in the Direct and Manage Project Work process is the
Project Management Information System (PMIS); for example, the
scheduling tool, the Configuration Management System, and the Work
Authorization System. Recall that the PMIS is an Enterprise Environmental
Factor
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Direct and Manage Project work - Outputs
Deliverable
Any unique and verifiable product, result, or capability to perform a service that
is required to be produced to complete a process, phase or project.
Work Performance Data

Detailed data collected about deliverables during project execution are valuable
for monitoring and controlling the project.
Change Requests - There are different types of changes that may be considered
throughout the project. In addition to updates to the Project Management Plan
and project documents, changes may also include corrective action, preventive
action, and defect repair.
Project Management Plan Updates
Project Documents Updates
Organizational Process Assets Updates

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Issue Logs
Manage Project Knowledge
Manage Project Knowledge is the process of using existing knowledge and

creating new knowledge to achieve the project’s objectives and contribute to
organization’s learning.
The key benefits of this process are that prior organizational knowledge is
leveraged to produce or improve the project’s outcolms and knowledge created
by the project is available to support organizational operations and future
projects or phases
•Knowledge is commonly split into Explicit (easily codified) and Tacit
•Knowledge Management is concerned with managing both tacit and

explicit knowledge for reusing existing knowledge and creating new
knowledge
•Since knowledge resides in the minds of the people, it is important to

create an atmosphere of trust so that people are motivated to share
their knowledge
•In practice, knowledge is shared using a mixture of knowledge

management tools and techniques (interaction between people) and
information management tools and techniques
Lessons Learned Register

Monitor and Control Project Work
Monitor and Control Project Work is the process of tracking, reviewing, and
reporting the progress to meet the performance objectives defined in the project
management plan.
The key benefit of this process is that it allows stakeholders to understand the
current state of the project, the steps taken, and budget, schedule, and scope
forecasts.
Monitor and Control Project Work
Monitoring includes collecting, measuring, and distributing performance information,
and assessing measurements and trends to effect process improvements.
The Monitor and Control Project Work process is concerned with:
•Comparing actual project performance against the project management plan;

•Assessing performance to determine whether any corrective or preventive actions
are indicated, and then recommending those actions as necessary;
•Providing information to support status reporting, progress measurement, and
forecasting;
•Providing forecasts to update current cost and current schedule information;
•Monitoring implementation of approved changes as they occur; and
•Providing appropriate reporting on project progress and status to program
management when the project is part of an overall program.
Perform Integrated Change Control
Perform Integrated Change Control is the process of reviewing all change requests;
approving changes and managing changes to deliverables, organizational process
assets, project documents, and the project management plan; and communicating
their disposition.
The key benefit of this process is that it allows for documented changes within the
project to be considered in an integrated fashion while reducing76project risk, which
often arises from changes made without consideration to the overall project
objectives or plans.
Perform Integrated Change Control - Outputs
Approved Change Requests
Change requests are processed according to the change control system by the
project manager, CCB, or by an assigned team member. Approved change
requests will be implemented through the Direct and Manage Project
Work process. The disposition of all change requests, approved or not, will be
updated in the change log as part of updates to the project documents
Change Log
A change log is used to document changes that occur during a project. These
changes and their impact to the project in terms of time, cost, and risk, are
communicated to the appropriate stakeholders. Rejected change requests are
also captured in the change log
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Close Project or Phase
Close Project or Phase is the process of finalizing all activities across all of
the Project Management Process Groups to formally complete the project or
phase.
The key benefit of this process is that it provides lessons learned,

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the formal ending of project work, and the release of organization resources
to pursue new endeavors.
Close Project or Phase
The activities necessary for the administrative closure of the project or phase
include
Actions and activities necessary to satisfy completion of exit criteria for the
phase or the project
Actions related to the completion of the contractual agreements applicable to

the project or project phase
Actions and activities needed to transfer the project’s products/ services to the
next phase or to production and / or operations
Measuring stakeholder satisfaction
Activities need to collect and archive documents
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Close Project or Phase - Outputs
In the Close Project or Phase process, we deliver the final product, service, or
result expected from the project or phase. This includes all the deliverables
which were accepted during the Validate Scope process.
Final Report
Contains details on
• Summary level description of the project or phase
•Criteria for evaluation of the scope, quality, schedule and cost objectives and the
evidence that the completion criteria were met
•Summary of how the project achieved the business needs and if not achieved
indicate the degree to which they were achieved
•Summary of any risks or issues encountered on the project and how they were
addressed
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End.
Project Scope
Management
Project Scope Management
•Collaborating with Business analysis professionals to
•Determine probems and identify business needs
•Identify and recommend viable solutions for meeting those needs
•Elicit, document, and manage stakeholder requirements in order to meet

business and project objectives
•Facilitate the successful implementation of the product, service or end result of

the program or the project
Project Scope Management
Define Scope - Tools
Product Analysis
•For projects that have a product as a deliverable, as opposed to a service or

result, product analysis can be an effective tool.
•Each application area has one or more generally accepted methods for
translating high-level product descriptions into tangible deliverables.
•Product analysis includes techniques such as product breakdown, systems
analysis, requirements analysis, systems engineering, value engineering, and
value analysis.
Alternatives Analysis
Alternatives Analysis 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. A variety of general management techniques can be used, such as
brainstorming, lateral thinking, analysis of alternatives, etc.
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Define Scope - Outputs
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Create WBS
Create WBS is the process of subdividing project deliverables and project

work into smaller, more manageable components.
The key benefit of this process is that it provides a structured108vision of what

has to be delivered.
Create WBS
The WBS:
•Is a deliverable-oriented, hierarchical decomposition of the work to be

executed by the project team.
•Is developed by the project team. Since the whole team is involved, this
provides team 'buy-in' or 'shared ownership', and provides for better
communication between the project team and stakeholders.
•Contains all the work defined in the project scope. Work not in the WBS is
considered out of scope.
•Decomposition of the scope of work is extended until it is acceptable to

stakeholders for planning, delivery, and control.
Excessive decomposition can lead to non-productive project

management effort, inefficient use of resources, and decreased
109 efficiency
in performing the work
Create WBS
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Create WBS
Control Account
A management control point where scope, budget, actual cost, and
schedule are integrated and compared to earned value to measure
performance.
Planning Package
A Work Breakdown Structure component below the control account with
known work content but without detailed schedule activities.
*Work Package
The work defined at the lowest level of the Work Breakdown Structure for
which cost and duration can be estimated and managed. Work packages
can be scheduled, cost estimated, monitored and controlled.
WBS Dictionary is created to add further detail to the WBS components.

The WBS Dictionary should be progressively elaborated as we get more
details from the other planning processes. It includes the corresponding
code of account identifier and other information such as a description of the
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work, responsible organization, required resources, schedule milestones,
and other detailed information linked to the WBS
Create WBS - Tools
•Decomposition is a technique used for dividing and subdividing the project
scope and project deliverables into smaller, more manageable parts.
•The work package is the work defined at the lowest level of the WBS for
which cost and duration can be estimated and managed.
•The level of decomposition is often guided by the degree of

•control needed to effectively manage the project.
Decomposition of the total project work into work packages generally

involves the following activities:
•Identifying and analyzing the deliverables and related work;

•Structuring and organizing the WBS;
•Decomposing the upper WBS levels into lower-level detailed components;
•Developing and assigning identification codes to the WBS components;
and
•Verifying that the degree of decomposition of the deliverables is
appropriate. 114
Create WBS - Outputs
The scope baseline is the approved version of a scope

statement, work breakdown structure (WBS), (including Work
Package and Planning Package) and its associated WBS
dictionary, that can be changed only through formal change
control procedures and is used as a basis for comparison. It is
a component of the project management plan
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Validate Scope
Validate Scope is the process of formalizing acceptance of the

completed project deliverables.
The key benefit of this process is that it brings objectivity

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to the
acceptance process and increases the chance of final product,
service, or result acceptance by validating each deliverable.
Validate Scope
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Validate Scope – Tools and Outputs
An important tool used to validate deliverables is Inspection, which
includes taking measurements and examining deliverables to
determine if they meet the requirements and product acceptance
criteria.
Deliverables are formally signed off by the customer or sponsor and

this documentation is moved through project closure along with the
Accepted Deliverables.
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Control Scope
Control Scope is the process of monitoring the status of the project and
product scope and managing changes to the scope baseline.
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The key benefit of this process is that it allows the scope baseline to be
maintained throughout the project.
Control Scope – Tools and Outputs
Controlling the project scope ensures all requested changes and
recommended corrective or preventive actions are processed through
the Perform Integrated Change Control process.
An important tool used in the Control Scope process is Variance

Analysis. Here, project performance measurements are used to
assess any variation of actuals from the original scope baseline (so
actuals are compared to plans).
Work Performance Information is a key output of the Control Scope

process. Performance information can include planned vs. actual
technical performance, or other scope performance measurements
and their related causes and impact to other project parameters such
as schedule and cost.
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End.
Project Schedule
Management
Project Schedule Management
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Project Time Management includes the processes required to manage the
timely completion of the project.
The Project Time Management Processes are:
•Plan Schedule Management— The process of establishing the policies,

procedures, and documentation for planning, developing, managing, executing,
and controlling the project schedule.
• Define Activities— The process of identifying and documenting the specific
actions to be performed to produce the project deliverables.
•Sequence Activities— The process of identifying and documenting relationships
among the project activities.
•Estimate Activity Durations— The process of estimating the number of work
periods needed to complete individual activities with estimated resources.
•Develop Schedule— The process of analyzing activity sequences, durations,
resource requirements and schedule constraints to create the project schedule
model.
•Control Schedule— The process of monitoring the status of project activities to
update project progress and manage changes to the schedule baseline to achieve
the plan.
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Key Concepts:
•Iterative scheduling with a backlog
•On-demand scheduling
Tailoring Guidelines
•Life cycle approach
•Resource availability
•Project dimensions
•Technology support
Considerations for Agile environment
•Adaptive approaches use short cycles to undertake work, review the results and adapt
as necessary
•To address the full delivery life cycle for larger enterprise-wide systems, a range of
techniques utilizing a predictive approach, adaptive approach or a hybrid of both may
need to be adopted
•Though the difference in approach (predictive or agile) does not make any
difference to the role of the project manager, he/she will need to be familiar with the
tools to be used in adaptive approaches for successful completion of the project.
Plan Schedule Management
Plan Schedule Management is the process of establishing the policies,

procedures, and documentation for planning, developing, managing, executing,
and controlling the project schedule.
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The key benefit of this process is that it provides guidance and direction on how
the project schedule will be managed throughout the project.
Plan Schedule Management
The Schedule Management Plan outlines the criteria for
developing, monitoring, and controlling the project schedule.
The Schedule Management Plan can establish the following:
•Project schedule model development

•Release and iteration length
•Level of accuracy for determining activity duration estimates and contingency
amounts
•Units of measure for time and quantity (e.g., hours, days, weeks; meters, liters,
tons, yards)
•Performance measurement rules and procedures for updating schedule status and
progress (e.g., percent complete, SV, SPI)
•Variance control thresholds for monitoring schedule performance (e.g.,
percent deviations allowed from the schedule baseline)
•. 130
Define Activities
Define Activities is the process of identifying and documenting the specific

actions to be performed to produce the project deliverables.
The key benefit of this process is to break down work packages

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into activities
that provide a basis for estimating, scheduling, executing, monitoring, and
controlling the project work.
Define Activities - Tools
Decomposition
Decomposition is a technique used for dividing and subdividing the project scope
and project deliverables into smaller, more manageable parts.
Work packages are typically decomposed into smaller components called

activities that represent the work effort required to complete the work package
The Define Activities process defines the final outputs as activities rather than
deliverables, as done in the Create WBS process
Involving team members in the decomposition can lead to better and more
accurate results.
Rolling Wave Planning
Rolling wave planning is an iterative planning technique in which the work to be

accomplished in the near term is planned in detail, while the work in the future is
planned at a higher level. It is a form of progressive elaboration.
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Define Activities - Outputs
Activity List
The activity list is a comprehensive list that includes all schedule activities required
on the project.
Activity Attributes
Activity attributes extend the description of the activity by identifying the multiple
components associated with each activity eg. the activity identifier (ID), WBS ID,
and activity label or name, activity description, predecessor activities, successor
activities, logical relationships, leads and lags, resource requirements, imposed
dates, constraints, assumptions and apportioned effort etc.
Milestone List
A milestone is a significant point or event in a project. A milestone list is a list
identifying all project milestones and indicates whether the milestone is mandatory,
They have zero duration because milestones represent a moment in time.
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Sequence Activities
Sequence Activities is the process of identifying and documenting

relationships among the project activities.
The key benefit of this process is that it defines the logical sequence of
work to obtain the greatest efficiency given all project constraints.
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Sequence Activities - Tools
The precedence diagramming method (PDM) is a technique used for

constructing a schedule model in which activities are represented by
nodes and are graphically linked by one or more logical relationships to
show the sequence in which the activities are to be performed.
Activity-on-node (AON) is one method of representing a precedence

diagram.
A predecessor activity is an activity that logically comes before a

dependent activity in a schedule.
A successor activity is a dependent activity that logically comes after

another activity in a schedule.
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PDM includes four types of dependencies or logical relationships.
Finish-to-start (FS). A logical relationship in which a successor activity

cannot start until a predecessor activity has finished.
Example: The awards ceremony (successor) cannot start until the race
(predecessor) has finished.
Finish-to-finish (FF). A logical relationship in which a successor activity

cannot finish until a predecessor activity has finished.
Example: Writing a document (predecessor) is required to finish before editing
the document (successor) can finish.
Start-to-start (SS). A logical relationship in which a successor activity

cannot start until a predecessor activity has started.
Example: Level concrete (successor) cannot begin until pour foundation
(predecessor) begins.
Start-to-finish (SF). A logical relationship in which a successor activity

cannot finish until a predecessor activity has started.
Example: The first security guard shift (successor) cannot finish
136 until the second
security guard shift (predecessor) starts.
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Dependencies can be either mandatory or discretionary, internal or external; or a
combination of each (e.g., mandatory external):
•You cannot start on the first floor until the foundation of the building is complete.
This is an example of a mandatory dependency or hard logic.
•You decide that it's best to make door and window frames before the full structure of
the wall is in place. This is an example of a discretionary dependency, also referred
to as preferred logic, preferential logic, or soft logic.
•A dependency on an agency external to the project is called an external

dependency and usually outside the project team's control.
A dependency on anyone internal to the project team is called an internal

dependency. Here the project team has some control.
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8
Leads and Lags
•You must wait at least one month after pouring the concrete for it to dry and cure.
This is an example of a lag. A lag directs a delay in a successor activity.
•You have to pave a driveway in front of the building. The road-roller needs to
begin rolling soon after the first section of asphalt is laid. This is an example of a
lead. A lead allows the successor activity to start before the predecessor ends.
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Estimate Activity Durations
Estimate Activity Durations is the process of estimating the number of work

periods needed to complete individual activities with estimated resources.
The key benefit of this process is that it provides the amount140of time
each activity will take to complete, which is a major input into the Develop
Schedule process.
Estimate Activity Durations
Factors for consideration while estimating Activity Duration
•Law of Diminishing Returns
•Number of resources
•Advances in Technology
•Motivation of staff
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Estimate Activity Durations - Tools
In Analogous or Top-down Estimating we use actual durations from a

previous project documented in the Organizational Process Assets as the basis
for estimating durations for the current project. Analogous estimating is usually
less costly and time consuming than other techniques, but it is also usually less
accurate.
Use of parameters and mathematical calculations for estimating is

called Parametric Estimating.
BOTTOM-UP ESTIMATING
•Bottom-up estimating is a method of estimating project duration or cost by
aggregating the estimates of the lower level components of the WBS. When an
activity’s duration cannot be estimated with a reasonable degree of confidence,
the work within the activity is decomposed into more detail.
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4
Estimate Activity Durations - Tools
To get a better estimate we come up with Pessimistic, Most likely, and Optimistic
values which you can use to calculate a Three-point Estimate using the PERT
formula . This helps account for estimation of uncertainty and risk.
Program Evaluation and Review Technique (PERT) Calculations
PERT is an estimating technique used to determine a weighted average by using

pessimistic, most likely, and optimistic values to address activity duration and
cost estimating uncertainties.
Let us assume that a project has two tasks, Task A and Task B, with the three-
point estimates shown below:
Task Optimistic Most Pessimistic PERT

4M +
(P + Standard
O) Deviation
Variance
{(P - O)/6}2
Likely
(P - O)/6 orSD2
6
Task A 3 4 5 4 0.33 0.11
TaskB 5 6 13 7 1.33 1.77

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Estimate Activity Durations - Outputs
Activity Duration Estimates
Activity duration estimates are quantitative assessments of the likely number of
time periods that are required to complete an activity. Duration estimates do not
include any lags. Activity duration estimates may include some indication of the
range of possible results.
For example:
•2 weeks ± 2 days, which indicates that the activity will take at least eight days
and not more than twelve (assuming a five-day workweek); and
•15 % probability of exceeding three weeks, which indicates a high probability—
85 %—that the activity will take three weeks or less.
BASIS OF ESTIMATES
•Supporting detail for duration estimates may include:
•Documentation of the basis of the estimate (i.e., how it was developed),
•Documentation of all assumptions made,
•Documentation of any known constraints,
•Indication of the range of possible estimates (e.g., ±10%) to indicate that the
duration is estimated between a range of values), 145
Develop Schedule
Develop Schedule is the process of analyzing activity sequences, durations,

resource requirements, and schedule constraints to create the project schedule
model.
The key benefit of this process is that by entering schedule activities,
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durations,
resources, resource availabilities, and logical relationships into the scheduling tool,
it generates a schedule model with planned dates for completing project activities.
Develop Schedule
Various diagrams that can be used to depict the Project Schedule:
•Project Schedule Network Diagrams show project activities, network

logic, and critical path activities.
•Bar Charts have time on the X axis, and bars show the activity durations
(e.g., in Microsoft Project). These are also referred to as Gantt Charts
which are typically used by middle and lower management.
•Milestone Charts have time on the X axis, and show the start or finish of
key deliverables or milestones. Note that milestones have zero duration.
These charts are typically used by senior management.
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Develop Schedule
What is the Critical Path?
The Critical Path is the longest path in the diagram. There can be more than one
critical path. Multiple critical paths represent more risk to the project schedule.
Why do we calculate the Critical Path?

It helps us determine the longest path(s) in our project which is the minimum
amount of time needed for the project's completion‘
Total Float is the amount of time a schedule activity can be delayed or extended
from its early start date without delaying the project finish date or violating a
schedule constraint.
The Total Float (also referred to as just float or slack) of any activity on the Critical
Path is usually 0 (zero). Total Float is calculated for every activity in the network
diagram to determine the amount of schedule flexibility each activity has.
Free Float is the amount of time that a schedule activity can be delayed without
delaying the early start of any successor or violating a schedule constraint.
Project Float is the total amount of time that the project can be148delayed without
delaying the externally imposed project completion date required by the
customer or sponsor
Develop Schedule - Tools
Critical Path Method (CPM) involves calculating the theoretical early start (ES)
and early finish (EF) dates, and late start (LS) and late finish (LF) dates for all
schedule activities. We do a forward pass to determine early dates followed by a
backward pass to determine late dates.
Critical Chain Method
Critical chain method allows modify the schedule by adding buffers to activities is
on the Critical Path to account for resource uncertainties that could affect the
project schedule.
A project buffer at the end is added to protect the target end date for the project.
Critical Chain Method focuses on managing buffer durations, rather than floats.
149
151
152
153
Schedule Compression
Schedule compression techniques are used to shorten the schedule duration
without reducing the project scope, in order to meet schedule constraints,
imposed dates, or other schedule objectives.
Schedule compression techniques include:
Crashing. A technique used to shorten the schedule duration for the least
incremental cost by adding resources. Examples of crashing include approving
overtime, bringing in additional resources, or paying to expedite delivery to
activities on the critical path. Crashing does not always produce a viable
alternative and may result in increased cost.
Fast tracking. A schedule compression technique in which activities or phases

normally done in sequence are performed in parallel for at least a portion of
their duration. Fast tracking may result in rework and increased risk.
154
155
Agile Release Plan
156
Modeling Techniques
•What-lf Scenario Analysis evaluates the negative or positive effects of

potential "what-if scenarios on project objectives. The outcome of the analysis
is used to determine the feasibility of the project schedule considering
possible scenarios. This can be used to prepare a risk response plan to avoid
or mitigate the impact of such potential scenarios.
•Simulation involves calculating multiple project durations with different sets of

activity assumptions, usually using probability distributions constructed
from three-point estimates. The most common simulation technique is the
Monte Carlo Analysis, where a distribution of possible activity durations is
defined for each activity and used to calculate a distribution of possible
outcomes for the total project.
157
Develop Schedule - Outputs
Schedule Baseline
A schedule baseline is the approved version of a schedule model that can be
changed only through formal change control procedures and is used as a basis for
comparison to actual results.
Project Schedule
The outputs from a schedule model are schedule presentations. The project
schedule is an output of a schedule model that presents linked activities with
planned dates, durations, milestones, and resources
Bar charts. These charts, also known as Gantt charts, represent schedule
information where activities are listed on the vertical axis, dates are shown on the
horizontal axis, and activity durations are shown
as horizontal bars placed according to start and finish dates
Milestone charts. These charts are similar to bar charts, but only identify the
scheduled start or completion of major deliverables and key external interfaces.
Project schedule network diagrams. These diagrams are commonly
presented in the activity-on-node diagram format showing activities and
relationships without a time scale, sometimes referred to as a pure logic
diagram 158
Develop Schedule - Outputs
Schedule Data
The schedule data for the project schedule model is the collection of information
for describing and controlling the schedule.
The schedule data includes at least the schedule milestones, schedule activities,
activity attributes, and documentation of all identified assumptions and constraints.
Project Calendars
A project calendar identifies working days and shifts that are available for
scheduled activities. It distinguishes time periods in days or parts of days that are
available to complete scheduled activities from time periods that are not available..
160
Control Schedule
Control Schedule is the process of monitoring the status of project activities to

update project progress and manage changes to the schedule baseline to
achieve the plan.
The key benefit of this process is that it provides the means to recognize
deviation from the plan and take corrective and preventive actions
161 and thus
minimize risk.
Control Schedule - Tools
163
Control Schedule - Tools
Performance Reviews
Performance reviews measure, compare, and analyze schedule performance
such as actual start and finish dates, percent complete, and remaining duration
for work in progress. Various techniques may be used, among them:
Trend analysis.
Trend analysis examines project performance over time to determine
whether performance is improving or deteriorating. Graphical analysis techniques
are valuable for understanding performance to date and for comparison to future
performance goals in the form of completion dates.
Earned value management

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.
164
End.
Project Cost
Management
Project Cost Management
169
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.
Following are the Project Cost Management processes:
Plan Cost Management— The process that establishes the policies, procedures,
and documentation for planning, managing, expending, and controlling project
costs.
Estimate Costs— The process of developing an approximation of the monetary

resources needed to complete project activities.
Determine Budget— The process of aggregating the estimated costs of

individual activities or work packages to establish an authorized cost baseline.
Control Costs— The process of monitoring the status of the project to update
the project costs and managing changes to the cost baseline.
170
Key concepts
Project cost management should consider the effect of project decisions on the
•
subsequent recurring cost of using, maintaining and supporting the product,

service or result of the project.
Another aspect of cost management is recognizing that different stakeholder

•
measure project costs in different ways and different times
The expansion of Earned Value Management to include the concept of earned

•
schedule (ES). Schedule variance can be calculated using ES-AT(Actual time)

instead of the current EV-PV.
171
• Knowledge Management
• Estimating and budgeting
• Earned value management
• Use of Agile approach
• Governance
Considerations for Agile/Adaptive environments
Lightweight estimation methods can be used to generate a fast, high-level

•
forecast of project costs, which can then be adjusted as changes arise. Detailed
estimates are reserved for short-term planning horizons in a just in time fashion
172
Plan Cost Management
Plan Cost Management is the process that establishes the policies, procedures, and
documentation for planning, managing, expending, and controlling project costs.
The key benefit of this process is that it provides guidance and direction on how the project
173
costs will be managed throughout the project.
Plan Cost Management - Outputs
Cost management plan
•Units of measure - staff hours, staff days, weeks for time

measures etc.
•Level of precision
•Level of accuracy
•Organizational procedures links
•Control thresholds
•Rules of performance measurement
•Reporting formats
•Process descriptions
•Additional details
174
Estimate Costs
Estimate Costs is the process of developing an approximation of the monetary

resources needed to complete project activities.
The key benefit of this process is that it determines the amount of cost
175
required to complete project work.
Estimate Costs
176
Estimate Costs - Outputs
Activity Cost Estimates
Activity cost estimates are quantitative assessments of the probable costs

required to complete project work.
Basis of Estimates
Supporting detail for activity cost estimates may include:

•Documentation of the basis of the estimate (i.e., how it was developed),
•Documentation of all assumptions made,
•Documentation of any known constraints,
•Indication of the range of possible estimates (e.g., €10,000 (±10%) to indicate
that the item is expected to cost between a range of values), and
• Indication of the confidence level of the final estimate
178
Determine Budget
Determine Budget is the process of aggregating the estimated costs of

individual activities or work packages to establish an authorized cost baseline.
The key benefit of this process is that it determines the cost baseline against
179
which project performance can be monitored and controlled.
Determine Budget - Tools
Funding Limit Reconciliation
The expenditure of funds should be reconciled with any funding limits on the
commitment of funds for the project.
A variance between the funding limits and the planned expenditures will
sometimes necessitate the rescheduling of work to level out the rate of
expenditures.
Reserve Analysis is used to determine the Contingency and Management

Reserves for the project.
•Contingency Reserves are reserves attributed to identified project risks, also

referred to as "known-unknowns" (e.g., accepted risks). Contingency Reserves
may be calculated as a percentage of the estimated project cost, a fixed number,
or developed using quantitative methods.
•Management Reserves are meant to address unforeseen risks, also referred

to as "unknown-unknowns". The project manager may be required to obtain
approval before obligating or spending Management Reserves.
180
Determine Budget - Outputs
Cost Baseline
The cost baseline is the approved version of the time-phased project budget,
excluding any management reserves, which can only be changed through formal
change control procedures and is used as a basis for comparison to actual results.
182
Determine Budget - Outputs
Project Funding Requirements

Total funding requirements and periodic funding requirements (e.g., quarterly,
annually) are derived from the cost baseline. The cost baseline will include
projected expenditures plus anticipated liabilities.
183
Control Costs
Control Costs is the process of monitoring the status of the project to update
the project costs and managing changes to the cost baseline.
The key benefit of this process is that it provides the means to 184
recognize
variance from the plan in order to take corrective action and minimize risk.
Control Costs
Project cost control includes:
• Influencing the factors that create changes to the authorized cost baseline;
• Ensuring that all change requests are acted on in a timely manner;
• Managing the actual changes when and as they occur;
• Ensuring that cost expenditures do not exceed the authorized funding by
period, by WBS component, by
•activity, and in total for the project;
• Monitoring cost performance to isolate and understand variances from the
approved cost baseline;
• Monitoring work performance against funds expended;
• Preventing unapproved changes from being included in the reported cost or
resource usage;
• Informing appropriate stakeholders of all approved changes and associated
cost; and
• Bringing expected cost overruns within acceptable limits
185
Control Costs
186
Control Costs
187
Control Costs
189
Control Costs
190
End.
Project Quality
Management
Project Quality Management
Key concepts: Failure to meet the quality requirements can have serious
negative consequences for any or all of the project’s stakeholders
Meeting customer requirements by overworking may result in decreased

profits and increased levels of project risks, employee attrition, errors or
rework
Meeting project schedule objectives by rushing planned quality inspections

may result in undetected errors, decreased profits and increased post-
implementation risks
200
Project Quality Management
•Policy compliance and auditing
•Standards and regulatory compliance
•Continuous improvement
•Stakeholder engagement
201
Manage Quality
Manage Quality is the process of translating the Quality management plan

into executable quality activities that incorporate the .organization’s quality
policy into the project.
The key benefits of this process are that it increases the probability of meeting
206
the quality objectives as well as identifying ineffective processes and causes of
poor quality
Control Quality - Outputs
Quality Control Measurements
Quality control measurements are the documented results of control quality
activities. They should be captured in the format that was specified through the
Plan Quality Management process
Verified 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 for formalized
acceptance.
215
End.
Project Resource
Management
Project Resource Management
219
Project Resource Management includes the processes to identify, acquire and manage the
resources needed for the successful completion of the project. These processes help ensure
that the right resources will be available to the project manager and project team at the right
time and place.
The Project Resource Management processes are
Plan Resource Management – The process of defining how to estimate, acquire, manage and
utilize physical and team resources
Estimate Activity Resources – The process of estimating team resources and the type and
quantities of material, equipment and supplies necessary to complete project work.
Acquire Resources- The process of obtaining team members, facilities, equipments,
materials, supplies and other resources necessary to complete project work
Develop Team- The process of improving competencies, team member interaction and the
overall team environment to enhance project performance
Manage Team- The process of tracking team member performance, providing feedback,
resolving issues and managing team changes to optimize project performance
Control Resources- The process of ensuring that the physical resources assigned and allocatd
to the project are available as planned as well as monitoring the planned versun actual use of
220
resources and performing corrective actions as necessary
Key concepts:
The project manager should invest suitable efforts in acquiring, managing,
motivating and empowering the project team
Participation of team members during planning adds their expertise to the process
and strengthens their commitment to the project
The project manager should be both leader and manager of the project team
The different aspects that influence the team are
Team environment, Geographical location of the team members,
Communication among stakeholders, Organizational change management, Internal
and external politics, cultural issues and organizational uniqueness
The project manager is responsible for proactively developing team skills and
competencies while retaining and improving team satisfaction and motivation
Physical resource management is concentrated in allocating and using the physical
resources needed for successful completion of the project in an efficient and
effective way.
Failure to secure critical equipment or infrastructure, ordering low quality material
and keeping too much inventory may result in delays, damage quality
221 and increase
the operating costs.
Trends and Emerging Practices:
Resource Management methods E.g. Just in time (JIT), Kaizen, Total

•
Productive Maintenance (TPM), Theory of constraints (TOC)
Emotional Intelligence - improving inbound and outbound

•
competencies
• Self organizing teams
• Virtual teams / distributed teams
222
Tailoring Guidelines:
• Diversity
• Physical Location
• Industry specific resources
• Acquisition of team members
• Management of team
• Life cycle approaches
Considerations for agile /adaptive environment
Collaboration is intended to boost productivity and facilitate innovative

•
problem solving.
Agreements for fast supply and lean methods are critical to controlling cost and
•
achieving the schedule

223
Plan Resource Management
Plan Resource Management includes the processes to identify acquire, and

manage the resources needed for the successful completion of the project
The key benefit of this process is that it establishes the approach and level of
management effort needed for managing project resources based on the type
224
and complexity of project.
Plan Resource Management - Tools
Organization Charts and Position Descriptions to document team members' roles and
responsibilities, and reporting relationships. The format can be either hierarchical, matrix, or text-
oriented.
•Hierarchical charts show positions and relationships in a graphical, top down format
•Matrix-based charts like the Responsibility Assignment Matrix (RAM) chart show project roles
and responsibilities for work packages or activities in a grid format. A widely used type of RAM
chart is the Responsible, Accountable, Consult, and Inform (RACI) chart which is linked to the
project scope and not time.
oResponsible: The person who will perform the work
0 Accountable: The person who is answerable for the work being done (i.e., on time, according to
requirements, etc.); note only one person should be Accountable

0 Consult: Subject matter experts to be consulted with about the activity
° Inform: Those who need to be informed about the activity being done, etc.
• Text-oriented formats can be used when detailed descriptions of team member responsibilities
are needed.
It also helps the project manager to interact with people in the company, the industry, or
professional associations to effectively manage staffing. This is referred to as Networking.
225
At times, the project manager may consult specialists to understand Organizational Theory,
which provides information regarding the way in which people, teams, and organizations behave.
Plan Resource Management - Tools
226
Plan Resource Management - Outputs
Resource Management Plan which contains details on
•Identification of resources
•Acquiring resources
•Roles and Responsibilities
•Project organization charts
•Project team resource management
•Training
•Team Development
•Resource control
•Recognition plan
Team Charter which includes

•Team values
•Communication guidelines
•Decision making criteria and process
•Conflict resolution process
•Meeting guidelines
•Team agreements
227
Estimate Activity Resources
Estimate Activity Resources is the process of estimating team resources and the type
and quantities of material, equipment and supplies necessary to complete project
work. The key benefit of this process is that it identifies the type, quantities and
characteristics of resources required to complete the project 228
Estimate Activity Resources - Tools
Alternative Analysis
Many schedule activities have alternative methods of accomplishment. They
include using various levels of resource capability or skills, different size or type of
machines, different tools (hand versus automated), and make rent-or-buy
decisions regarding the resource
Bottom-Up Estimating
Bottom-up estimating is a method of estimating project duration or cost by
aggregating the estimates of the lower-level components of the WBS.
Analogous estimating
Parametric estimating
Project Management Information system
229
Estimate Activity Resources - Outputs
Resource Requirements
Resource requirements identify the types and quantities of resources required
for each activity in a work package.
These requirements then can be aggregated to determine the estimated
resources for each work package and each work period.
Basis of estimate
The resource requirements documentation for each activity can include the
basis of estimate for each resource, as well as the assumptions that were
made in determining which types of resources are applied, their availability, and
what quantities are used.
Resource Breakdown Structure

The resource breakdown structure is a hierarchical representation of resources
by category and type.
Examples of resource categories include labor, material, equipment, and
supplies.
Resource types may include the skill level, grade level, or other information as
appropriate to the project.
230
Acquire Resources
232
Acquire Resouces - Tools
•Some resources could be committed as part of the Project Charter or competitive
proposal in advance (e.g., it was decided that three particular PMP-certified
project managers will be leading the project). This is an example of Pre-
Assignment.
•To ensure that competent staff members are assigned to the project, the project
manager can use effective Negotiation skills to influence others.
•The project manager can use the Multi-Criteria Decision Analysis technique to
acquire the project team. Here potential team members are rated based on
weighted criteria such as availability, cost, experience, ability, knowledge, skills,
attitude, and international factors.
•The project may consist of a Virtual Team which includes team members with a
shared goal who fulfill their roles with little or no face-to-face interaction (using
email, audio/video conferencing, web-meetings, etc.)
233
Acquire Resources - Outputs
Project Staff Assignments
The project is staffed when appropriate people have been assigned to the
team. 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.
Resource Calendars
Resource calendars document the time periods that each project team
member is available to work on the project.
Creating a reliable schedule depends on having a good understanding of each
person’s availability and schedule constraints, including time zones, work
hours, vacation time, local holidays, and commitments to other projects.
Physical Resource assignments
234
Develop Team
Develop Project Team is the process of improving competencies, team member

interaction, and overall team environment to enhance project performance.
The key benefit of this process is that it results in improved teamwork,

235
enhanced people skills and competencies, motivated employees, reduced staff
turnover rates, and improved overall project performance.
Develop Team
Objectives of developing a project team include, but are not limited to:
•Improving knowledge and skills of team members to increase their ability

to complete project deliverables, while lowering costs, reducing schedules,
and improving quality;
•Improving feelings of trust and agreement among team members to raise

morale, lower conflict, and increase team work; and
•Creating a dynamic, cohesive, and collaborative team culture to (1)

improve individual and team productivity, team spirit, and cooperation and
(2) allow cross training and mentoring between team members to share
knowledge and expertise.
•Empowering the team to participate in team decision making
236
Develop Team - Tools
•The project manager should possess good Interpersonal Skills. Soft skills such as
effective communication, leadership, emotional intelligence, conflict resolution,
negotiation, influencing, team building, effective decision making, and group
facilitation can help the project manager develop an effective team.
•It is also helpful to define the Ground Rules and establish clear expectations
regarding acceptable behavior of team members.
•Skill gaps should be identified and appropriate Training provided, if required
•To get the team to work well together, the project manager should plan appropriate
Team-Building Activities throughout the project.
•In critical situations, the project manager may want to bring all team members
together at one location and set up a "war room" to discuss issues. This is referred to
as Colocation or "tight matrix".
•Personnel Assessment Tools can help the project manager assess team members‘
strengths and weaknesses.
237
•The project manager should provide Recognition and Rewards to outstanding
performers throughout the project
Develop Team - Tools
Five Stages of Group Development
Tuckman described five stages of team development. Teams usually go through
the stages in order, but it is possible for teams to skip a stage or get stuck in, or
revert to a previous stage.
•Forming - Team meets, learns their roles and responsibilities and agree on
goals; individuality is at its highest during this phase
•Storming - Team starts working on the project; competition may result from
different individual ideas; "I am right" mentality
•Norming - Team members adjust their behavior to work as a team; learn to
trust each other; "We can work together" mentality
•Performing - Teams are able to function as an organized and interdependent
unit asthey find ways to get the job done smoothly and effectively
•Adjourning - Completing the task and moving on from the project as staff are
release dduring project or phase closure
238
Develop Team - Outputs
An important output of this process is Team Performance Assessments.

Here, the emphasis is on determining how effectively the team is performing.
Additional training, coaching, or mentoring may need to be implemented to
improve the team's performance. Improvement in individual competencies
and skills can also help the team perform more effectively
240
Manage Team
Manage Project Team is the process of tracking team member performance,

providing feedback, resolving issues, and managing team changes to optimize
project performance.
241
The key benefit of this process is that it influences team behavior, manages
conflict, resolves issues, and appraises team member performance.
Manage Team - Tools
•Conflict Management techniques should be used by team members to manage
any conflicts. Some important sources of conflict are schedules, priorities,
manpower, technical issues, procedures, personality, and costs. If team members
cannot resolve their own conflicts, then the project manager should help facilitate
effective conflict resolution.
Interpersonal Skills
Leadership. Successful projects require strong leadership skills. There are multiple
leadership theories defining leadership styles that should be used as needed for each situation
or team
Influencing. Because project managers often have little or no direct authority over
team members in a matrix environment, their ability to influence stakeholders on a timely
basis is critical to project success.
Effective decision making. This involves the ability to negotiate and influence the
organization and the project management team
242
Control Resources
245
End.
Project
Communication
Management
Project Communication Management
248
Project Communications Management includes the processes necessary to
ensure that the information needs of the project and its stakeholders are met
through development of artifacts and implementation of activities designed to
achieve effective information exchange. Project communication management
consists of two parts: The first part is developing a strategy to ensure
communication is effective for stakeholders. The second part is carrying out the
activities necessary to implement the communication strategy
Project Communications Management processes are as follows:
Plan Communications Management— The process of developing an

appropriate approach and plan for project communication activities based on
stakeholder’s information needs of each stakeholder group, available
organizational assets and the needs of the project
Manage Communications— The process of ensuring timely and appropriate

collection, creation, distribution, storage, retrieval, management, monitoring
and the ultimate disposition of project information.
Control Communications— The process of ensuring the information needs

of the project and its stakeholders are met.
249
Key concepts
Communication is the exchange of information, intended or involuntary. The

information exchanged can be in the form of ideas, instructions or emotions. The
mechanisms by which information is exchanged can be in
Written form
Spoken
Formal or informal
Through gestures
Through media
Choice of words
250
Trends and Emerging practices
• Inclusion of stakeholders in project reviews
• Inclusion of stakeholders in project meetings
• Increased use of social computing
• Multifaceted approaches to communication
252
• Stakeholders
• Physical Location
• Communication Technology
• Language
• Knowledge Management
Considerations For Agile/Adaptive Environments
Inherent need to communicate quickly and frequently motivates

•
streamlining team member access to information and frequent

team check points.
•In addition posting project artifacts in a transparent fashion and
holding regular stakeholder reviews are intended to promote
communication with management and stakeholders 253
Plan Communication Management
Plan Communications Management is the process of developing an appropriate

approach and plan for project communications based on stakeholder’s
information needs and requirements, and available organizational assets.
The key benefit of this process is that it identifies and documents

254 the approach to
communicate most effectively and efficiently with stakeholders.
Plan Communication Management
Communication skills
• Listening actively and effectively;

•Questioning and probing ideas and situations to ensure better understanding;
•Educating to increase team’s knowledge so that they can be more effective;
•Fact-finding to identify or confirm information;
• Setting and managing expectations;
•Persuading a person, a team, or an organization to perform an action;
•Motivating to provide encouragement or reassurance;
•Coaching to improve performance and achieve desired results;
•Negotiating to achieve mutually acceptable agreements between parties;
•Resolving conflict to prevent disruptive impacts; and
Summarizing, recapping, and identifying the next steps.
The communication activities :

Internal (within the project) and external (customer, vendors, other projects,
organizations, the public);
Formal (reports, minutes, briefings) and informal (emails, memos, ad-hoc
discussions);
Vertical (up and down the organization) and horizontal (with peers);
Official (newsletters, annual report) and unofficial (off the record
255
communications); and
Written and oral, and verbal (voice inflections) and nonverbal (body language).
Plan Communication Management - Tools
A Communication Requirements Analysis determines the information needs of each project
stakeholder throughout the project. Since project managers spend the majority of their time
(about 90%) communicating with the team and other stakeholders, they need to have effective
and efficient communication skills.
The number of possible communication channels can be calculated using the formula n(n - 1) /
2, where "n" is the total number of stakeholders or team members.
Communication Technology includes tools, systems, computer programs, etc. that are used
to transfer information among project stakeholders . The choice of technology must be
appropriate for the information being communicated and can depend on several factors such
as urgency, frequency, format, availability, ease-of-use, location of stakeholders,
organizational culture, sensitivity, etc
Communication Models like the basic Sender-Receiver Model are used to facilitate
information exchange:
Encode - ideas are translated or coded by the Sender

Transmit Message - information is sent by Sender using the medium of choice
Interruption or Noise - interferences or barriers that may compromise message delivery(e.g.,
distance, technology used, infrastructure, cultural differences, insufficient information); noise
must be identified and managed
Decode - message is translated by the Receiver back into meaningful ideas
Acknowledge - Receiver may acknowledge receipt of the message 256
Feedback - Receiver encodes a response message and transmits it to the original Sender
257
Communication Methods are the procedures, techniques, or
processes used to transfer information to project stakeholders.
•Push Communication is when information is sent to specific stakeholders

who need to receive it (e.g., letters, memos, reports, emails, faxes, voice
mails).
•Pull Communication requires stakeholders to access information on their

own from a posted location (e.g., website, intranet, e-learning module,
information systems, or other databases).
•Interactive Communication occurs between multiple stakeholders engaged

in a multidirectional exchange of information. This method is the most
efficient way to ensure all parties understand the information (e.g.,
meetings, phone calls, instant messages, video conferencing).
258
Plan Communication Management - Output
Communication Management Plan

•Stakeholder communication requirements;
•Information to be communicated, including language, format, content, and
level of detail;
•Time frame and frequency for the distribution of required information and
receipt of acknowledgment or response, if applicable;
•Person responsible for communicating the information;
•Person responsible for authorizing release of confidential information;
•Person or groups who will receive the information;
•Methods or technologies used to convey the information, such as memos, e-
mail, and/or press releases;
•Resources allocated for communication activities, including time and budget;
•Escalation process identifying time frames and the management chain
(names) for escalation of issues that cannot be resolved at a lower staff level;
•Flow charts of the information flow in the project, workflows with possible
sequence of authorization, list of reports, and meeting plans, etc.;
259
Manage Communications
Manage Communications is the process of creating, collecting, distributing,

storing, retrieving, and the ultimate disposition of project information in
accordance to the communications management plan.
The key benefit of this process is that it enables an efficient260and effective

communications flow between project stakeholders.
Manage Communications
This process goes beyond the distribution of relevant information and seeks to
ensure that the information being communicated to project stakeholders has been
appropriately generated, as well as received and understood. It also provides
opportunities for stakeholders to make requests for further information, clarification,
and discussion.
Techniques and considerations for effective communications management include,

•Sender-receiver models. Incorporating feedback loops to provide opportunities for
interaction/ participation and remove barriers to communication.
•Choice of media. Situation specifics as to when to communicate in writing versus
orally, when to prepare an informal memo versus a formal report, and when to
communicate face to face versus by e-mail.
•Writing style. Appropriate use of active versus passive voice, sentence structure,
and word choice.
• Meeting management techniques. Preparing an agenda and dealing with
conflicts.
•Presentation techniques. Awareness of the impact of body language and design
of visual aids.
•Facilitation techniques. Building consensus and overcoming obstacles.
•Listening techniques. Listening actively (acknowledging, clarifying, and confirming
261
understanding) and removal of barriers that affect comprehension
Monitor Communications
Monitor 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.
262
The key benefit of this process is that it ensures an optimal information
flow among all communication participants, at any moment in time.
End.
Project Risk
Management
Project Risk Management
266
Project Risk Management includes the processes of conducting risk management
planning, identification, analysis, response planning, and controlling risk on a project.
The objectives of project risk management are to increase the likelihood and impact
of positive events, and decrease the likelihood and impact of negative events in the
project.
The Project Risk Management processes are as follows:

Plan Risk Management— The process of defining how to conduct risk management activities
for a project.
Identify Risks— The process of identifying individual project risks as well as sources of overall
project risk and documenting their characteristics.
Perform Qualitative Risk Analysis— The process of prioritizing individual project risks for
further analysis or action by assessing their probability of occurrence and impact as well as
other characteristics
Perform Quantitative Risk Analysis— The process of numerically analyzing the combined
effect of identified individual project risk and other sources of uncertainty on overall project
objectives.
Plan Risk Responses— The process of developing options, selecting strategies and agreeing
on actions to address overall project risk exposure as well as to treat individual project risks
Implement Risk Responses: The process of implementing agreed upon risk response plans
Monitor Risks— The process of monitoring the implementation of agreed upon risk response
plans, tracking identified risks, identifying and analysing new risks, and267evaluating risk process
effectiveness throughout the project.
Project risk is an uncertain event or condition that, if it occurs, has a positive or
negative effect on one or more project objectives such as scope, schedule, cost,
and quality.
The risk attitudes of both the organization and the stakeholders may be
influenced by a number of factors, which are broadly classified into three themes:
•Risk appetite is the degree of uncertainty an entity is willing to take on in
anticipation of a reward.
•Risk tolerance is the degree, amount, or volume of risk that an organization or
individual will withstand.
•Risk threshold refers to measures along the level of uncertainty or the level of
impact at which a stakeholder may have a specific interest. Below that risk
threshold, the organization will accept the risk. Above that risk threshold, the
organization will not tolerate the risk.
Utility Function is used to measure stakeholder risk tolerance. It defines

stakeholders' level or willingness to accept a risk. The three categories of
Utility Function are:
Risk Averse 268
Risk Neutral
Risk Seeking
Key concepts:
Risks exist at two levels
Individual Project Risks: is an uncertain event or condition that if it occurs, has a

positive or negative effect on one or more project objectives
Overall Project Risk is the effect of uncertainty on the project a a whole arising from all
sources of uncertainty including individual risks, representing the exposure of
stakeholders to the implications of variations in project outcome, both positive and
negative
269
Trends and emerging practices

Non event risks: There are two types of non event risks:
Variability Risk: Uncertainty exists about some key characteristics of a
planned event or activity or decision (variability in productivity, quality,
weather conditions. Can be addressed through Monte carlo analysis
Ambiguity Risk: Uncertainty exists about what might happen in future
(regulatory changes). Can be addressed through incremental development,
prototyping and simulation
Project Resilience: Emergent risks can be recognized only after they have
occurred. They can be tackled through developing project resilience
possible through right level of budget and schedule contingency for
emergent risks, flexible project processes, empowered project team,
frequent review of early warning signs, clear inputs from stakeholders
Integrated Risk Management: A coordinated approach to enterprise-wide

risk management ensures alignment and coherence o in the way any risk is
270
managed across all levels. This builds risk efficiency into the structure of
programs and portfolios providing the greatest
Project Size
Project Complexity
Project importance
Development approach
Considerations for agile/ adaptive environments
Adaptive approaches make use of frequent reviews of incremental work

products and cross functional project teams to accelerate knowledge
sharing and ensure that risk is understood and managed. Risk is considered
when selecting the content of each iteration and risks also will be
identified, analyzed and managed during each itertion 271
Plan Risk Management
Plan Risk Management is the process of defining how to conduct risk

management activities for a project.
The key benefit of this process is it ensures that the degree, type, and
272
visibility of risk management are commensurate with both the risks and the
importance of the project to the organization.
Plan Risk Management - Outputs
Risk Management Plan
Methodology. Defines the approaches, tools, and data sources that will be used to perform
risk management on the project.
Roles and responsibilities. Defines the lead, support, and risk management team members
for each type of activity in the risk management plan, and clarifies their responsibilities.
Budgeting. Estimates funds needed, based on assigned resources, for inclusion in the cost
baseline and establishes protocols for application of contingency and management reserves.
Timing. Defines when and how often the risk management processes will be performed
throughout the project life cycle,
Risk categories. Provide a means for grouping potential causes of risk eg. Risk Breakdown
Structure
Definitions of risk probability and impact. The quality and credibility of the risk analysis
requires that different levels of risk probability and impact be defined that are specific to the
project context
Probability and impact matrix. A probability and impact matrix is a grid for mapping the
probability of each risk occurrence and its impact on project objectives if that risk occurs.
Revised stakeholders’ tolerances. Stakeholders’ tolerances, as they apply to the specific
project,
Reporting formats. Reporting formats define how the outcomes of the risk management
process will be documented, analyzed, and communicated.
273
Tracking. Tracking documents how risk activities will be recorded for the benefit of the
current project and how risk management processes will be audited.
274
275
Identify Risks
Identify Risks is the process of determining which risks may affect the project
and documenting their characteristics.
The key benefit of this process is the documentation of existing risks and the
knowledge and ability it provides to the project team to anticipate
276 events.
Identify Risks - Tools
277
Identify Risks - Outputs
• The risk register is a document in which the results of risk analysis and risk response planning are recorded
• It contains the outcomes of the other risk management processes
List of identified risks - The identified risks are described in as much detail as is reasonable.
List of potential responses - Potential responses to a risk may sometimes be identified during the Identify Risks
process.
Risk Register
Impact
I Probabili Scop Quali Schedu Cos Responsible
Risk Statement Response
D ty e ty le t Party
Project owner on
Orient new project Project
1 the client side is Low X
owner. Manager
replaced.
Senior
programmer is Find replacement Project
2 Medium X X
taken from the programmer. Manager
project.
External system A Discuss with
is not ready in stakeholders and Project
3 High X X X 278
time to implement make adjustments as Manager
feature B. agreed.
Perform Qualitative Analysis
Perform Qualitative Risk Analysis is the process of prioritizing risks for

further analysis or action by assessing and combining their probability of
occurrence and impact.
279
The key benefit of this process is that it enables project managers to reduce
the level of uncertainty and to focus on high-priority risks.
Perform Qualitative Analysis - Tools
•It is imperative to confirm that the information about risks identified for a project is
accurate and reliable. To determine the accuracy and data quality of identified risk,
we can do a Risk Data Quality Assessment.
•We categorized risks into areas impacted, such as finance, technical,

project management, and vendor management. This is an example of Risk
Categorization.
• In our project, we know that if network problems occur and people cannot connect
and work, we will have to deal with it more urgently than support issues which can be
handled at a later point in time. This is an example of Risk Urgency Assessment.
In Perform Qualitative Risk Analysis, we assign ratings for probability and impact for
each risk. Then, multiply these two values to determine the Probability and Impact
(P&l) value. This is called Risk Probability Impact Assessment.
Now that we have a Probability and Impact value, we can show it visually through a
Probability & lmpact Matrix. This provides a visual representation of the specific
combinations of probabilities and impacts that lead to a risk being rated as "Very
High", "High", "Moderate", "Low" or "Very Low" importance
280
Perform Qualitative Analysis - Tools
281
Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis is the process of numerically analyzing

the effect of identified risks on overall project objectives.
The key benefit of this process is that it produces quantitative risk

282
information to support decision making in order to reduce project uncertainty
Perform Quantitative Risk Analysis
Q: Should Perform Quantitative Risk Analysis always be done in a project?

A: No, at times, we can do Plan Risk Responses directly after Perform Qualitative
Risk Analysis. The availability of time, budget, and project requirements will
determine whether Perform Quantitative Risk Analysis has to be performed, and to
what degree.
Q: If conducted, should Perform Quantitative Risk Analysis be done on all

risks?
A: No, it is usually conducted on risks which are categorized as high priority after
the Perform Qualitative Risk Analysis Process. This is because there are additional
costs and expertise associated with performing Quantitative Risk Analysis, so it
need not be done on low priority risks.
Perform Quantitative Risk Analysis may be used to assign a numerical priority

rating to risks individually, but it is most commonly used to evaluate the aggregate
effect of multiple or all risks affecting the project
283
Perform Quantitative Risk Analysis - Tools
Data Gathering and Representation Techniques such as Interviewing
and Probability Distributions can help quantify the effects of identified
risks. For example, interviews can be used to gather expert and historical
data to help quantify probability and impact data.
Continuous Probability Distributions (e.g., Beta or Triangular Distributions)

are typically used to depict the results of modeling and simulation
techniques such as the Monte Carlo simulation.
Examples of continuous probability distribution output:
Range of cost impact on the project
Range of schedule impact on the project
Company revenues
Quantitative Risk Analysis and Modeling Techniques: Modeling, EMV,
Sensitivity Analysis
Q: You do a simulation of how different scenarios could impact the total project
cost and then analyze the cumulative distribution to assess the probability of
the project costing different amounts given the cost risks considered. What
technique is this?
284
A: This is referred to as Modeling which can be performed using the Monte
Carlo technique or What-if scenario analysis.
Perform Quantitative Risk Analysis -Tools
285
Perform Quantitative Risk Analysis - Tools
Sensitivity Analysis helps determine the risks with the greatest possible
impact on the project. The most common means of graphically 286 depicting the
results of a Sensitivity Analysis is a Tornado Diagram.
Plan Risk Responses
Plan Risk Responses is the process of developing options and actions to

enhance opportunities and to reduce threats to project objectives.
The key benefit of this process is that it addresses the risks287

by their priority,
inserting resources and activities into the budget, schedule and project
management plan as needed.
Plan Risk Responses - Tools
Strategies for negative risks:
•Avoid
Elimination of the threat posed by an adverse risk to isolate the project
objectives from the risk's impact. Changing the objective that is in jeopardy (e.g.,
extend the project schedule, reduce the project scope).
•Transfer
Shifting negative impact of a threat along with the ownership of the response, to
a third party. This is different than the Avoid strategy in that the risk still exists,
but it is now being managed by another party outside the project team (e.g.,
insurance company, hired contractor).
•Mitigate
Implies reduction in the probability and/or impact of an adverse risk event to an
acceptable threshold. Mitigate involves changing some aspect of the project
plan, other than the objective that is in jeopardy (e.g., additional testing, creating
prototypes).
288
Strategies for negative risks:
•Accept
This strategy is adopted because it is almost impossible to eliminate or reduce

all threats to a project. Accept indicates that the project team has acknowledged
the risk, but has decided not to change the project management plan to deal
with it, or is unable to identify any other suitable response strategy. This strategy
can be either passive or active. Passive acceptance requires no action except to
document the strategy, leaving the project team to deal with the risks as they
occur. The most common active acceptance strategy is to establish a
Contingency Reserve.
•Escalate
This is appropriate when the project team or the project sponsor agrees that a
threat is outside the scope of the project or that the proposed response would
exceed the project manager’s authority. Escalated risks are managed at the
program / portfolio/ organization level. It is important that the ownership of the
escalated threats is accepted by the relevant party in the organization
289
Strategies for positive risks
•Exploit
Eliminates the uncertainty associated with a particular upside risk by ensuring
the opportunity definitely happens.
•Share
Allocating some ownership to a third party who is best able to capture the
opportunity for the benefit of the project.
•Enhance
A response which increases the probability and/or positive impact of an
opportunity is an Enhance strategy. Modifying the size of an opportunity by
identifying key drivers of positive risks may help increase the probability of an
opportunity being realized.
•Accept
Accepting an opportunity is being willing to take advantage of it, if it comes
along, but not actively pursuing it.
•Escalate
This is appropriate when the project team or the project sponsor agrees that a
threat is outside the scope of the project or that the proposed response would
exceed the project manager’s authority. Escalated risks are managed at the
program / portfolio/ organization level. It is important that the ownership of the
escalated opportunity is accepted by the relevant party in the290organization
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 prepare a response plan that will
only be executed under certain predefined conditions (e.g., if a milestone
deadline is missed, then the contingent strategy will be implemented).
Contingency Plans and Fallbacks Plans are examples of Contingent Response

Strategies. A Fallback Plan is usually implemented if a particular risk response
strategy is not adequate (e.g. if there is a risk that the chosen vendor will not be
able to deliver all the operating systems on time, then we plan to have an
alternate vendor in place as our Fallback Plan).
Secondary Risk is a new risk that arises as a direct outcome of implementing a

risk response.
Residual Risk: Residual risk is the amount of risk that remains after a risk response,
from the risk response plan, has been implemented. Example: In a medical situation,
residual risk remains after attempting to cure someone.
291
Implement Risk Responses
292
Monitor Risks
Monitor Risks is the process of implementing risk response plans, tracking

identified risks, monitoring residual risks, identifying new risks, and evaluating risk
process effectiveness throughout the project.
The key benefit of this process is that it improves efficiency of 293
the risk approach
throughout the project life cycle to continuously optimize risk responses.
Monitor Risks
Planned risk responses that are included in the risk register are executed during
the life cycle of the project, but the project work should be continuously
monitored for new, changing, and outdated risks. Other purposes of the Control
Risks process are to determine if:
•Project assumptions are still valid,

•Analysis shows an assessed risk has changed or can be retired,
•Risk management policies and procedures are being followed, and
•Contingency reserves for cost or schedule should be modified in alignment with
the current risk assessments
The Plan Risk Management process should begin when a project is conceived
and should be completed early during project planning.
294
End.
Project
Procurement
Management
Project Procurement Management
297
Project Procurement Management includes the processes necessary to

purchase or acquire products, services or results needed from outside the
project team. Project Procurement Management includes the management
and control processes required to develop and administer agreements such as
contracts, purchase orders, memoranda of agreements (MOUs) or internal
service level agreements(SLAs0. The personnel authorized to procure the
goods and or services required for the project may be members of the project
team, management or part of the organization’s purchasing department if
applicable.
The Project Procurement Management processes include the following:

Plan Procurement Management— The process of documenting project
procurement decisions, specifying the approach, and identifying potential
sellers.
Conduct Procurements— The process of obtaining seller responses,
selecting a seller, and awarding a contract.
Control Procurements— The process of managing procurement relationships,
monitoring contract performance, and making changes and corrections as
appropriate and closing out contracts.
298
Key Concepts
•The Procurement Management processes involves

agreements that describe the relationship between two
parties –a buyer and a seller
•There can be significant legal obligations and penalties tied
to the procurement process.
•The project manager should be familiar with the
procurement process to make intelligent decisions regarding
contracts and contractual relationships.
•The contracts should be written in a manner that complies
with local, national and international laws regarding
contracts.
299
•Advances in tools – Online tools – Building Information Model (BIM

Tools) used in construction / Engineering/ Infrastructure projects
•Advanced Risk Management – To write contracts that accurately allocate

specific risks to those entities most capable of managing them
•Changing contracting processes- Use of internationally recognized

standard contract forms to reduce claims and problems during execution
•Logistics and supply chain management – Contracting for longer lead

materials based on requirements identified in Top level design,
identification of secondary sources in addition to primary sources,
regulatory requirements regarding local purchases
•Technology and stakeholder relations- Web cameras, video data for

analysis if a claim arises
300
•Trial engagements-
•Complexity of Procurement
•Physical location
•Governance and regulatory environment
•Availability of contractors
Considerations for Agile/ Adaptive Environments
•In agile environments, specific sellers may be used to extend the team.
•This collaborative working relationship can lead to a shared risk
procurement model where both the buyer and the seller share in the risk
and rewards associated with a project.
•Larger projects may use an adaptive approach for some deliverables
and a more stable approach in other parts.
•In such cases a master service agreement (MSA) may be used for the
overall engagement with the adaptive work being in an appendix
301 or
supplement.
Plan Procurement Management
Plan Procurement Management is the process of documenting project

procurement decisions, specifying the approach, and identifying potential
sellers.
The key benefit of this process is that it determines whether to acquire
outside support, and if so, what to acquire, how to acquire it,302how much is
needed, and when to acquire it.
Plan Procurement
Fixed-Price Cost-Reimbursable Time and Material

Contracts Contracts Contract
Scope isn’t well

Do not expect
defined at
many changes
beginning and Hybrid
in scope of
you expect
work
many changes
Seller is
reimbursed for
Price set at the Used for staff
allowable cost
outset augmentation
plus a fee is set
for services
Seller takes the Buyer takes the

risk for price risk for price
escalation escalation
303
Plan Procurement
Fixed-price
contracts
Fixed Price
Firm Fixed Fixed Price with
Price Incentive Economic
Contracts Fee Price
(FFP) Contracts Adjustment
(FPIF) Contracts
The most commonly used contract Allows for deviation from Allows for pre defined final
type is the FFP. The price for goods performance, with financial adjustments to the contract price
is set at the outset and not subject incentives tied to achieving due to changed conditions such as
to change unless the scope of work agreed upon metrics inflation changes, or cost increases
changes etc
304
Plan Procurement
Cost-
reimbursab
le contracts
Cost Plus Cost Plus Cost Plus

Fixed Fee Incentive Award Fee
Contracts Fee Contracts
(CPFF) Contracts (CPAF)
(CPIF)
Seller is reimbursed for all Seller is reimbursed for all Seller is reimbursed for all
allowable costs for performing the allowable costs for performing legitimate costs, but the majority of
contract work, and receives a fixed- the contract work and receives the fee is earned only based on the
fee payment calculated as a a predetermined incentive fee satisfaction of certain broad
percentage of the initial estimated based upon achieving certain subjective performance criteria
project costs performance objectives
Time and Material Contracts (T&M): A hybrid type of contractual arrangement that contain aspects of
both cost-reimbursable and fixed-price contracts. Often used for staff augmentation, acquisition of
experts, and any outside support when a precise statement of work cannot be quickly prescribed
305
Plan Procurement
Make-or-Buy Analysis
A make-or-buy analysis is a general management technique used to
determine whether particular work can best be accomplished by the project
team or should be purchased from outside sources.
Sometimes a capability may exist within the project organization, but may be
committed to working on other projects, in which case, the project may need
to source such effort from outside the organization in order to meet its
schedule commitments.
Budget constraints may influence make-or-buy decisions. If a buy decision is

to be made, then a further decision of whether to purchase or lease is also
made.
A make-or-buy analysis should consider all related costs—both

direct costs as well as indirect support costs. For example, the buy-side of
the analysis includes both the actual out-of-pocket costs to purchase the
product, as well as the indirect costs of supporting the purchasing process
and purchased item.
306
Plan Procurement Outputs
Independent Estimates
For many procurement items, 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
307
Conduct Procurements
Conduct Procurements is the process of obtaining seller responses,

selecting a seller, and awarding a contract.
The key benefit of this process is that it provides alignment of internal
and external stakeholder expectations through established agreements.
308
Conduct Procurements - Tools
Bidder Conferences
Bidder conferences are meetings between the buyer and all prospective sellers prior
to submittal of a bid or proposal. They are used to ensure that all prospective sellers
have a clear and common understanding of the procurement requirements and that
no bidders receive preferential treatment.
Proposal Evaluation Techniques
On complex procurements, where source selection will be made based on seller
responses to previously defined weighted criteria, a formal evaluation review process
will be defined by the buyer’s procurement policies. The evaluation committee will
make their selection for approval by management prior to the award.
309
Conduct Procurements - Tools
Expert Judgment
.
Advertising
Existing lists of potential sellers often can be expanded by placing advertisements in
general circulation publications such as selected newspapers or in specialty trade
publications. Some organizations use online resources to communicate solicitations to
the vendor community
Analytical Techniques
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
310
Control Procurements
Control Procurements is the process of managing procurement relationships,

monitoring contract performance, and making changes and corrections to
contracts as appropriate.
The key benefit of this process is that it ensures that both the seller’s and
buyer’s performance meets procurement requirements according 311
to the terms
of the legal agreement.
Contract Change Control System

A contract change control system defines the process by which the procurement
can be modified. It includes the paperwork, tracking systems, dispute resolution
procedures, and approval levels necessary for authorizing changes. The contract
change control system is integrated with the integrated change control system.
Procurement Performance Reviews
A procurement performance review is a structured review of the seller’s progress
to deliver project scope and quality, within cost and on schedule, as compared to
the contract.
Inspections and Audits
Inspections and audits required by the buyer and supported by the seller, as
specified in the procurement contract, can be conducted during execution of the
project to verify compliance in the seller’s work processes or deliverables.
Performance Reporting
Work performance data and reports supplied by sellers are evaluated against the
agreement requirements. Work performance information from this evaluation is
then reported as appropriate. Performance reporting provides management with
information about how effectively the seller is achieving the contractual
objectives.
312
Payment Systems
Payments to the seller are typically processed by the accounts payable system of the
buyer after certification of satisfactory work by an authorized person on the project
team.
Claims Administration
Contested changes and potential constructive changes are those requested changes
where the buyer and seller cannot reach an agreement on compensation for the
change or cannot agree that a change has occurred. These contested changes are
variously called claims, disputes, or appeals. Claims are documented, processed,
monitored, and managed throughout the contract life cycle, usually in accordance
with the terms of the contract. If the parties themselves do not resolve a claim, it may
have to be handled in accordance with alternative dispute resolution (ADR) typically
following procedures established in the contract. Settlement of all claims and disputes
through negotiation is the preferred method.
Records Management System
A records management system is used by the project manager to manage contract and
procurement documentation and records. It consists of a specific set of processes,
related control functions, and automation tools that are consolidated and combined
as part of the project management information system (Section 4.4.2.3).
The system contains a retrievable archive of contract documents and correspondence
313
Procurement Audits
A procurement audit is a structured review of the procurement process
originating from the Plan Procurement Management process through
Control Procurements. The objective of a procurement audit is to identify
successes and failures that warrant recognition in the preparation or
administration of other procurement contracts on the project, or on other
projects within the performing organization.
Procurement Negotiations
In all procurement relationships, the final equitable settlement of all
outstanding issues, claims, and disputes by negotiation is a primary goal.
Whenever settlement cannot be achieved through direct negotiation,
some form of alternative dispute resolution (ADR) including mediation or
arbitration may be explored. When all else fails, litigation in the courts is
the least desirable option
End.
Project
Stakeholder
Management
Project Stakeholder Management
Key Concepts
The ability of the project manager and the team to correctly

identify and engage all stakeholders in an appropriate way can
mean the difference between project success and failure.
The key to effective stakeholder engagement is a focus on

continuous communication with all stakeholders including team
members to understand their needs and expectations address
issues as they occur, managing conflicting interests and foster
appropriate stakeholder engagement in project decisions and
activities.
319
Project Stakeholder Management
Trends and emerging practices
❖ Identifying all stakeholders, not just a limited set
❖ Ensuring all stakeholders are involved in stakeholder

engagement activities
❖ Reviewing the stakeholder community regularly often in

parallel with reviews of individual project risks
❖ Consulting with stakeholders through the concept of co-

creation, which places emphasis on including affected
stakeholders in the team as partners
❖ Capturing the value of effective stakeholder engagement both

positive and negative
320
Data Representation
Plan Stakeholder Management - Outputs
Stakeholder Management Plan
❖ Desired and current engagement levels of key stakeholders;

❖ Scope and impact of change to stakeholders;
❖ Identified interrelationships and potential overlap between
stakeholders;
❖ Stakeholder communication requirements for the current project
phase;
❖ Information to be distributed to stakeholders, including language,
format, content, and level of detail;
❖ Reason for the distribution of that information and the expected
impact to stakeholder engagement;
❖ Time frame and frequency for the distribution of required information
to stakeholders; and
❖ Method for updating and refining the stakeholder management plan
as the project progresses and develops.
331

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Table of content

• PMI stands for Project Management Institute

• Widely recognized Project Management Certification

❖ Technical project management. The knowledge, skills, and behaviors related

❖ Leadership. The knowledge, skills, and behaviors needed to guide, motivate,

❖ Strategic and business management. The knowledge of and expertise in the

•Project Integration Management is specific to Project Managers and cannot

Trends and Emerging Practices

• Use of automated tools

•Use of visual management tools

•Project Knowledge Management

•Expanding the project manager’s responsibilities to include more involvement in

•Project Life cycle

•Development Life cycle

Considerations for Agile / Adaptive environments

Iterative and Agile approaches promote the engagement of team members

The control of the detailed product planning and delivery is delegated to

The project manager’s focus is on building a collaborative decision making

The process of developing a document that formally authorizes the existence of a

Enterprise Environmental Factors

Organizational Process Assets

The Project Charter should be issued by the project initiator or sponsor.

Develop Project Management Plan is the process of defining, preparing, and

The project management plan defines how the project is executed,

The Project Management Plan integrates and consolidates all of the

To ensure stakeholders' buy-in, the Project Management Plan should be

•Perform activities to accomplish project objectives;

The approved change request may be a corrective action, a preventative action, or

Corrective action—An intentional activity that realigns the

Preventive action—An intentional activity that ensures the future

Defect repair—An intentional activity to modify a nonconforming

Work Performance Data

Project Management Plan Updates

Project Documents Updates

Organizational Process Assets Updates

Manage Project Knowledge is the process of using existing knowledge and

•Knowledge Management is concerned with managing both tacit and

•Since knowledge resides in the minds of the people, it is important to

•In practice, knowledge is shared using a mixture of knowledge

Lessons Learned Register

The Monitor and Control Project Work process is concerned with:

•Comparing actual project performance against the project management plan;

The key benefit of this process is that it provides lessons learned,

Actions related to the completion of the contractual agreements applicable to

Measuring stakeholder satisfaction

Activities need to collect and archive documents

• Summary level description of the project or phase

Trends and Emerging Practices

•Collaborating with Business analysis professionals to

•Determine probems and identify business needs

•Identify and recommend viable solutions for meeting those needs

•Elicit, document, and manage stakeholder requirements in order to meet

•Facilitate the successful implementation of the product, service or end result of

•For projects that have a product as a deliverable, as opposed to a service or

Alternatives Analysis is a technique used to develop as many potential options as

Create WBS is the process of subdividing project deliverables and project