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Difference between Project and Project Management PrepFinity POSSIBLITY

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Project Management Framework

Project Integration Management
Project Scope Management
Project Time (Schedule) Management
Project Cost Management

Prepty
Project Human Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management

Project Management Tools and Techniques

Project Scheduling Techniques
Project Estimation and Budgeting
• Ethics in Project Management

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Difference between Project andProject ERE
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MESTS

Management
[Link]:
A project is a temporary endeavor undertaken to create a unique
product, service, or result.
Key Features:
Temporary: Has a defined start and end.
Unique Output: Creates something new (a product, a service, or a
result).
Progressive Elaboration: Develops in steps and continues by gaining
more clarity as work progresses.
Examples:
o
Constructing a bridge.
Developing a new software application.
Organizing a cultural event.

2. Project Management
Project Management is the application of knowledge, skills, tools, and
techniques to project activities to meet project requirements.
Key Features:
Structured Approach: Follows processes and methods (Initiation,
Planning, Execution, Monitoring, and Closing).
Goal-Oriented: Focuses on achieving project objectives efficiently
and effectively.
Resource Management: Dealswith managing time, cost, quality,
risk, and resources.
Examples:
o
Planning timelines and budgets for the bridge project.
o
Monitoring the software development phases.
Managing teams and vendorsfor an event.

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Key Differences Table PRON
WHERE
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Aspect Project Project Management

Meaning Temporary effort to create a Discipline to manage the project
result
Focus output
Delivering Managing processes and activities
Timeframe Defined start and end Continues through project lifecycle
Outcome Product/Service/Result Efficient and successful completion
Example Building a school Planning, executing, and closing the school
project

Project Life Cycle

The Project Life Cycle refers to the series of phases that a project passes through from its
initiation to its closure.
It provides a structured approach to organize and manage the project work effectively.
Each phase has specific deliverables, objectives, and activities.

Phases of the Project Life Cycle:

There are typically four major phases:
1. Initiation Phase
2. Planning Phase
3. Execution Phase
4. Closure Phase
(Additionally, Monitoring and Controlling activities run alongside Execution.)

1. Initiation Phase
Definition:
The Initiation Phase is where the project idea is evaluated, feasibility is assessed, and formal
authorization is given to start the project.
Key Activities:
Identifying the business need or opportunity.
Performing feasibility studies.
Defining project objectives and scope at a high level.
Preparing the Project Charter.
Important Terms:
Project Charter:
A formal document that authorizes the project, names the Project Manager, and
provides authority to allocate resources.
Feasibility Study:
Analysis to determine if the project is technically and financially viable.
Business Case:
Justification for undertaking the project based on cost-benefit analysis.
Output: Approved Project Charter ,Stakeholder Identification
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2. Planning Phase PrepFinity POSSIBLIT

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Definition: cRE
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The Planning Phase involves setting detailed plans, allocating resources, identifying risks,
and developing a roadmap to guide the team towards achieving the project goals.
Key Activities:
Defining scope in detail.
Developing Work Breakdown Structure (WBS).
Creating Schedule, Budget, and Resource Plans.
Identifying Risks and developing Risk Management Plans.
Setting Quality Standards.
Important Terms:
Scope Statement:
Detailed description of the project deliverables and the boundaries of the project.
Work Breakdown Structure (WBS):
A hierarchical decomposition of the total project work into smaller, manageable parts
called work packages.
Risk Management Plan:
A plan outlining how uncertainties (risks) will be identified, analyzed, and responded
to.
Schedule:
A timeline showing when project activities will occur.
Budget Plan:
An estimation of costs required to complete the project.
Output:
Detailed Project Management Plan
Defined Scope, Schedule, Budget
Risk Register

3. Execution Phase
Definition:
The Execution Phase involves performing the actual work to complete the project as per the
plans developed.
Key Activities:
Coordinating people and resources.
Managing stakeholder expectations.
Communicating progress regularly.
Managing quality assurance.
Important Terms:
Deliverables:
Tangible or intangible products or results produced during the project (e.g., a completed
building, a software product).
Quality Assurance (QA):
Ensuring the processes used during project execution will result in quality outputs.
Resource Management:
Efficient and effective deployment of the project's team, equipment, and materials.
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Change Management: Handling any changes to the project scope, schedule, or cost thaity
occur during execution. PrepFin PREPARATION
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Output:
Completed Deliverables
Status Reports
Updated Risk Registers

4. Closure Phase
Definition:
The Closure Phase is where the project is formally closed, final deliverables are handed over,
and project resources are released.
Key Activities:
Final product delivery to the client.
Obtaining formal acceptance.
Documenting lessons learned.
Releasing team members and closing contracts.
Important Terms:
Lessons Learned:
Documentation of what went well, what didn't, and recommendations for future
projects.
Final Acceptance:
Formal approval from the client or sponsor that the project deliverables meet the
requirements.
Project Closure Report:
Summary document recording the success of the project and the final outcomes.
Output:
Final Project Report
Lessons Learned Document
Formal Project Closure

Continuous Phase: Monitoring and

Controlling
Runs throughout Planning and Execution Phases
Monitoring and Controlling ensures the project ison track with the plans and
allows corrective actions when necessary.
Key Activities:
Tracking performance against baselines (scope, schedule, cost).
Identifying variances.
Implementing corrective and preventive actions.
Managing changes via Change Control Board (CCB).
Important Terms:
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Baseline: 6Finity POSSIBLITY

The approved version of a scope, schedule, or cost plan that can onlySON
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changed through formal change control.

Variance Analysis:
Measuring the difference between planned and actual performance.
Corrective Action:
Steps taken to bring project performance back in line with the plan.
Preventive Action:
Measures taken to avoid future performance issues.

Quick Example to Understand:

Phase Example in a Real-Life Bridge Project
Initiation Approving the construction of the bridge
Planning Designing the bridge plan, timeline, budget
Execution Building the bridge as per design
Closure Handing over the completed bridge to government and closing the project
Monitoring Regularly checking if construction is on time and budget during execution

Project Life Cycle-Summary Table

Phase Key Purpose Major Activities Key Outputs
Identify needs
Define and authorize the Feasibility study Project Charter
|Initiation
project Prepare Project Business Case
Charter
Define scope Project
Plan how to achieve project Create WBS |Management Plan
Planning
goals Develop schedule, WBS
|budget, risk plans Risk Register
Coordinate resources
Complete project work to Manage teams Deliverables
Execution meet objectives Deliver outputs Status Reports
Ensure quality
Measure progreSS
Performance
Monitoring and Track, review, and regulate Manage changes
|Reports
Controlling project performance Implement corrective Change Requests
actions
Final delivery
Final Report
Obtain acceptance
Closure Formally close the project Lessons Learned
Document lessons
learned Document
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Quick Key Points:
are we WHEPE
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Initiation:Why doing this? (Authorization)

Planning: How will we do it? (Roadmap)
Execution: Let's do it! (Work)
Monitoring: Are we doing it right? (Control)
Closure: Is it finished properly? (Close)

Project vs Program vs Portfolio

1. Project
Definition:
A project is a temporary endeavor undertaken to create a unique
product, service, or result.
Key Features:
Has a specificobjective.
Temporary: Definite start and end.
Creates a unique deliverable.
Requires resources and management efforts.
Example:
Building a school.
Developing a new software application.

2. Program
Definition:
A program is a collection of related projects managed in a coordinated
way to achieve benefits and control not available from managing them
individually.
Key Features:
Consists of multiple related projects.
Interdependencies exist between projects.
Focuses on strategic business outcomes.
Programs may include ongoing operations in addition to projects.
Example:
A national education initiative containing multiple school construction
projects, teacher training programs, and educational software
development.
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3. Portfolio PrepFinity POSSIBLIT

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A portfolio is a collection of projects, programs, and other work that are

grouped together to achieve strategic objectives.
Key Features:
Not necessarily interdependent: Projects and programs can be
unrelated.
Aligns projects/programs with organizational strategy.
Focuses on maximizing organizational value and resource optimization.
Requires prioritization and balancing investments.
Example:
A company's entire collection of education, healthcare, and technology projects.

Key Differences Table

Aspect Project Program Portfolio
Deliver specific Achieve strategic
Achieve organizational goals
|Focus
|output benefits
Multiple unrelated or related
Components |Single effort Multiple related projects
projects/programs
Managing activities to Managing projects Managing collection for strategic
Management
complete deliverables together for synergy alignment

Dependency Standalone |Projects are Projects/programs may be

interdependent independent
Company's investment in all
Build a bridge Citywide infrastructure
Example infrastructure, IT, and R&D
improvement program projects

Project Environment
The Project Environment refers to all external and internal factors that influence the project's
succeSs.

Types of Project Environments:

1. Internal Environment
Organizational culture, policies, resources.
Availability of skilled staff and tools.
Decision-making styles and power structures.
2. External Environment
Economic conditions, government regulations.
Market competition, customner needs.
Technological advancements.
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Componentsof the Project Environment: PFinity s8LITY

Component Description
Enterprise Environmental Conditions not under project control that influence the project
Factors (EEFs) |(e.g., company culture, market conditions).
Organizational Process Internal assets like templates, policies, procedures, and
Assets (OPAs) |historical information that can help the project.
Individuals or organizations impacted by the project (positively
Stakeholders or negatively).
Political and Cultural |National culture, regional policies, political stability, societal
Environment norms.

Organization Structure in Project

Management
The Organizational Structure defines how roles, responsibilities, and authority are assigned
within a project or an organization.
Major Types of Organizational Structures:
1. Functional Organization
Organization is structured based on functions (departments like HR,Finance,
Engineering).
Features:
Project work is divided among different departments.
Project Manager has little or no authority.
Employees report to Functional Manager.
Advantages:
Clear hierarchy and specialization.
Efficient resource utilization.
Disadvantages:
o
Slow decision-making for projects.
Low focus on the project itself.

2. Projectized Organization
Organization is structured completely around projects.
LIKE
Features:
Project Manager has full authority.
Resources are dedicated to projects.
SHARE
Employees report directly to Project Manager.
Advantages:
Clear focus and faster decision-making.
SUBSCRIBE
High team loyalty to the project.
Disadvantages:

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Resource duplication across projects. PrepFinity POSSIBLIT

No permanent department assignments. MEETS

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3. Matrix Organization
Matrix structure is a hybrid of functional and projectized structures.
Types of Matrix Structures:
Weak Matrix:
Similar to functional organization.
oProject Manager has limited authority.
Balanced Matrix:
Power is shared between Project Manager and Functional Manager.
Strong Matrix:
Project Manager has higher authority, close to projectized.
Type PM Authority Resource Availability Decision Speed
Weak Matrix Low Low Slow
Balanced Matrix|Moderate Moderate |Moderate
Strong Matrix ||High High Fast

Summary for Organization Structures

Structure PM Resource
Employees Report To Focus
Type Authority Availability
Functional Little/None Limited Functional Manager |Department work
Projectized High Dedicated Project Manager Project goals
Functional Manager |Department +
Weak Matrix |LOw Limited
(mostly) Project
Balanced Both PM and Functional
Moderate Moderate
Manager Equal
Matrix
Strong Matrix High |High Project Manager (mostly) Project priority

Organization Type Spectrum:

Functional Weak Matrix Balanced Matrix Strong Matrix Projectized
(Authority of Project Manager increases from left to right)

Important Keywords
Term Definition
Enterprise Environmental
External or internal conditions that influence project success.
Factors (EEFs)
Organizational Process Assets
(OPAs) |Internal company processes, templates, and knowledge bases.
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Term Definition PrEty

|Anyone impacted by the project, either positively or
TION
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Stakeholders negatively.
Official document authorizing a project and giving authority
Project Charter to the Project Manager.
Deliverables |Tangible or intangible outputs produced as part of a project.

Process Groups vs Life Cycle Phases

1. Project Life Cycle Phases
The Project Life Cycle describes the high-level stages a project goes through from beginning
to end.
Typical Phases:
Initiation: Defining the project idea and obtaining approval.
Planning: Establishing the roadmap to achieve project objectives.
Execution: Performing the work according to the plan.
Monitoring and Controlling: Tracking progress and making corrections.
Closure: Completing the project and final handover.
Key Features:
Customized based on industry, organization, or project type.
Focused on what to do during the overall lifespan of the project.
Life cycle is sequential but may overlap phases sometimes.
Each phase typically ends with a deliverable or milestone.
Example:
Building Construction: Initiation Planning – Design Construction Handover
Closure.

2. Project Management Process Groups

The Process Groups are a logical grouping of project management activities (processes) to
achieve specific project management objectives.
Five Process Groups:
Initiating: Define and authorize the project or phase.
Planning: Establish the scope, objectives, and course of action.
Executing: Complete the work defined in the plan.
Monitoring and Controlling: Track, review, regulate progress and performance.
Closing: Formally close the project or phase.
Key Features:
Universal across all industries and types of projects.
Can repeat or overlap within different phases of the life cycle.
Focused on how to manage the project effectively.
Each group consists of specific processes (like Develop Project Charter, Manage Team,
Control Quality, etc.)
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Example: PrepFinity POSSIBIT

Even during Planning Phase of life cycle, you can have: ERE
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Initiating (start planning phase)

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Planning (detailed planning)

Executing (develop initial drafts)
Monitoring (review draft plans)
Closing (finalize and baseline the plan)

Major Differences between Project Life Cycle

and Process Groups
Feature Project Life Cycle Phases Process Groups
Project stages (what happens at Project management activities (how
Focus to manage work)
different times)
Sequence Generally sequential |Iterative and repetitive in each phase
Varies by industry, organization, Standardized across
Universality or project
allprojects

Guide the progression of the

Purpose Jproject Guide management of project work

Relation toProject Describes technical work to Describes management work to guide

Work create product project

Life Cycle = Project's journey (stages it passes through).

Process Groups= Project Manager's toolbox (activities they perform in any stage).

Project Life Cycle = Stages of the Project (Initiation Planning Execution Closure)
Process Groups = Management Activities repeated at every Stage:
-
Initiate work
Plan work
-
Execute work
Monitor work
Close work
Example Suppose you are building a house (Project Life Cycle).
Atevery phase (designing, building, finishing), you willinitiate, plan, execute, monitor, and
close activities (Process Groups).

Keywords
Term Simple Definition
Life Cycle Phase|High-level stage of project development.
Process Group Logical group of project management activities.
Milestone Major event or deliverable marking phase completion.
Baseline Approved version of a plan for tracking progress.
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Phases = what is happening to the project. PrepFinity

Process Groups = what the project manager is doing to manage that work.
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3. Project Management Framework

The Project Management Framework provides a structured approach toplan, execute,
monitor, control, and close projects systematically.
It defines how project management processes, knowledge areas, stakeholders, and organizational
influences interact throughout the project.
Core Elements:
Project Life Cycle (Initiation Closure)
Project Management Processes (Initiating, Planning, Executing, Monitoring &
Controlling, Closing)
Knowledge Areas (Scope, Time, Cost,Quality, HR, Communication,Risk,
Procurement, Stakeholder Management, Integration)

Stakeholders and Organizational Influences

1. Project Stakeholders
Stakeholders are individuals, groups, or organizations that:
Are actively involved in the project,
Or whose interests may be positively or negatively affected by the project outcomes,
Or who can influence project execution and success.
Examples:
Sponsor
Customers/Users
Project Team
Functional Managers
Suppliers/Vendors
Government or Regulatory Bodies
Public and Society
Key Points:
Stakeholders have different interests, influence, and power.
Stakeholder engagement and management is critical for project success.
Early identification and continuous communication with stakeholders is essential.

2. Organizational Influences
Projects do not exist in isolation; they are influenced by their organizational environment.
Types of Organizational Structures:
Impact on Project
Structure Type Features Manager
Functional |Organized by departments (sales, marketing, etc.).
Low authority
Organization PM has limited authority.
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Impact on Projec Aty

Structure Type Features Manager
Projectized Entire company organized by projects. PM has full
|High authority
Organization authority.
Matrix Combination of functional and projectized. Shared
Medium authority
Organization authority.
Organizational Process Assets (OPA):
Existing resources like templates, policies, procedures, historical databases that help
manage projects.
Enterprise Environmental Factors (EEF):
ExternalVinternal factors like market conditions, legal restrictions, organizational culture
that affect the project.

Project Governance
Project Governance is the framework that guides project management activities through:
Decision-making structures
Authority levels
Responsibilities
Accountability mechanisms
It ensures that the project:
Aligns with organizational objectives,
Complies with regulations,
Meets stakeholder expectations.
Key Elements of Project Governance:
Governance Structure: Roles like Steering Committees, Project Boards.
Decision-Making Framework: How approvals and escalations happen.
Performance Criteria: Standards for measuring success.
Risk and Issue Management: Escalation paths, thresholds.
• Compliance and Reporting: Regular status reporting and audits.
Importance:
Prevents confusion in decision making.
Provides accountability and transparency.
Aligns projects with strategic business goals.

Project Success and Failure Factors

1. Factors that increase the likelihood of project success include:
Clearly Defined Goals and Scope
(Ambiguity leads to scope creep.)
Effective Stakeholder Engagement
(Managing expectations and needs.)
Strong Leadership and Project Sponsorship
(Active support by upper management.)
Realistic Planning and Estimation
(Practical budgets, timelines, resources.)
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Risk Management PrepFinity POSSIBIT

(Identify, analyze, and plan for uncertainties.) ERE

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Effective Communication
(Regular, transparent, and two-way communication.)
Team Competency and Collaboration
(Skilled and motivated project team.)
Monitoring and Controlling Mechanisms
(Progress tracking, issue identification early.)

2. Common reasons projects fail include:

Unclear Requirements or Scope

inity
(No proper baseline for changes.)
Poor Stakeholder Engagement
(Ignoring key users or opposition.)
Inadequate Project Planning
(Skipping risk analysis, resource planning.)
Weak Project Governance
(No clear authority structure.)
Lack of Senior Management Support
(No sponsor backing.)
Ineffective Risk Management
(Unaddressed risks becoming issues.)
Poor Communication
(Misunderstanding among stakeholders.)
Resource Constraints
(Understaffed or underbudgeted projects.)

Summary
Concept Key Points
Project Stakeholders Anyone affected by or influencing the project; must be engaged early.
Organizational Structure (Functional, Matrix, Projectized), EEFs, OPAs affect the
|Influences project.
Project Governance |Decision-making framework ensuring alignment with business goals.
Clear goals, good leadership, realistic planning, strong
|Project Success Factors
communication.
Poor scope definition, weak governance, bad planning, lack of
|Project Failure Factors resources.
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4. Project Integration Management ATION
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Project Integration Management involves processes and activities to identify, define, combine,
unify,and coordinate the various project management processes and activities.
It ensures that project goals are aligned and coordinated across all departments and activities.
Key Processes in Project Integration Management:
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project Work
Monitor and Control Project Work
Perform Integrated Change Control
Close Project or Phase

Project Charter
The Project Charter is a formal document that authorizes the project and gives the project
manager authority to use organizational resources for the project.
Key Contents of Project Charter:
Project Purpose and Objectives
High-level Requirements
High-level Project Description
Summary Milestone Schedule
Pre-approved Financial Resources (Budget)
Project Manager Assigned (with authority)
Key Stakeholder List
Approval Requirements (who signs off)
Importance:
Formally starts the project.
Provides a direct link between the project and strategic objectives.
Establishes authority of the Project Manager.

Project Management Plan

A Project Management Plan is a formal, approved document that defines:
How the project will be executed, monitored, controlled, and closed.
It isa composite of all the individual management plans (like Scope Management Plan,
Schedule Management Plan, Cost Management Plan, etc.)
Key Components:
Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan
Resource Management Plan
Communications Management Plan
Risk Management Plan
Procurement Management Plan
Stakeholder Engagement Plan
Change Management Plan
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Importance: PrepFinity POSSIBLIT

Acts as a reference guide throughout the project. ATION

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Ensures consistency, discipline, and clarity in managing the project. WHERE

Change Control Systems

A Change Control System is a set of procedures that manages how changes are requested,
assessed, approved, implemented, and reviewed throughout the project.
Key Elements:
Change Request Form (documented change proposal)
Change Review Board (group that evaluates changes)
Impact Analysis (cost, time, quality, risk)
Approval or Rejection Mechanism
Update of Plans and Documents after approval
Communication of Changes to Stakeholders
Perform Integrated Change Control is the process where:
Allchange requests are reviewed and decisions are made.
Changes are documented.
Only approved changes are implemented.
Importance:
Prevents uncontrolled changes ("'scope creep").
Maintains project alignment with objectives.
Ensures transparency in project changes.

5. Project Scope Management

Project Scope Management involves processes to ensure that the project includes all the work
required-and only the work required to
complete the project successfully.
Key Processes:
Plan Scope Management
Collect Requirements
Define Scope
Create Work Breakdown Structure (WBS)
Validate Scope
Control Scope

Scope Planning
Scope Planning involves creating a Scope Management Plan that defines:
How the project scope will be defined, validated, and controlled.
Scope Management Plan Includes:
How to collect requirements
How to define scope
How to create WBS
How to validate deliverables
How to control changes to scope
Importance:
Provides clarity and structure.
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Reduces misunderstandings about what is included/excluded. PrepFinity POSSIBLITY

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Work Breakdown Structure (WBS)

A Work Breakdown Structure (WBS) is a hierarchical decomposition of the total scope of
work into smaller, manageable components (called work packages).
Levels of WBS:
Project Title
Major Deliverables
Sub-deliverables
Work Packages (lowest level)
Key Characteristics:
Focuses on deliverables, not actions.
Each descending level represents increasingly detailed definitions of project work.
Helps in estimating cost, time, and resources more accurately.
Benefits:
Better clarity on tasks.
Helps assign responsibilities.
Supports accurate scheduling and budgeting.

Scope Creep and Control

Scope Creep
Scope Creep refers to unauthorized or uncontrolled changes to the project scope, without
adjustments to time, cost, and resources.
Common Causes:
Poor initial requirements definition
Stakeholders adding features informally
Lack of change control process
Impact:
Increased costs
Delayed schedules
Reduced project quality

Scope Control
Scope Control involves monitoring the status of the project scope and managing changes to
the scope baseline.
How to Control Scope:
Implement a strict Change Control PrOcess.
Use WBS to verify completed work.
Continuously communicate with stakeholders.
Conduct regular Scope Reviews.
Importance:
PreventsS unnecessary work.
Keeps the project aligned with objectives.
Maintains stakeholder satisfaction.
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Summary WHER
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ION
POSSIBLITY

Topic Key Points

Formally authorizes the project and PM; defines high-level
Project Charter
project info.
Comprehensive document on how to execute, monitor, control,
Project Management Plan and close the project.
Change Control Systems Procedures to manage change requests systematically.
Scope Planning |Process of defining how scope will be managed.
Work Breakdown Structure
Hierarchical breakdown of deliverables into smaller components.
(WBS)
Scope Creep |Uncontrolled changes or continuous growth in project scope.

Scope Control |Monitoring and managing changes to ensure project stays on

COurse.

6. Project Time (Schedule) Management

Project Time Management involves processes required to manage timely completion of the
project.
It includes defining activities, sequencing them, estimating resources and durations,developing
the schedule, and controlling it.
Key Processes:
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Durations
Develop Schedule
Control Schedule

ActivityDefinition
Activity Definition is the process of identifying and documenting the specific actions to be
performed to produce the project deliverables.
Key Tools:
Decomposition (breaking down work packages into activities)
Rolling Wave Planning (progressive detailing)
Output:
Activity List
Activity Attributes (details like start/end dates, responsible resource, etc.)
Milestone List
Example:
In a "Website Development Project", activities might be:
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PROJECT MANAGEMENT BY PREPFINITY

Design homepage layout PrepFinity POssiBLIT

Develop backend code WHERE

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Test website features

Activity Sequencing
Activity Sequencing is the process of identifying relationships among activities and defining
logical order.
Dependency Types:
Finish to Start (FS): Activity A must finish before B starts. (Most common)
Start to Start (SS): Activity A must start before B starts.
Finish to Finish (FF): Activity A must finish before B finishes.
Start to Finish (SF): Activity A must start before B finishes. (Rare)
Tools:
Precedence Diagramming Method (PDM) (network diagrams)
Dependency Determination (mandatory, discretionary, external, internal)

Critical Path Method (CPM)

The Critical Path Method is a scheduling technique used to identify the longest sequence of
dependent activities and determine the shortest project duration.
Key Points:
The critical path is the longest path through the project.
Any delay in a critical path activity directly delays the project.
Critical activities have zero float/slack.
Steps in CPM:
1. List activities and dependencies.
2. Estimate duration for each activity.
3. Draw the network diagram.
4. Identify all paths and calculate duration.
5. The longest duration path = Critical Path.
Important Terms:
Float/Slack: Amount of time an activity can be delayed without delaying the project.
Early Start (ES) / Early Finish (EF): Earliest time an activity can start/finish.
Late Start (LS) /Late Finish (LF): Latest time an activity can start/finish without
delaying the project.

Program Evaluation and Review Technique

(PERT)
Definition:
PERT is a probabilistic scheduling technique that uses three estimates to calculate expected
activity durations.
Estimates Used:
Optimistic Time (0): Best-case scenario
Pessimistic Time (P): Worst-case scenario
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Most Likely Time (M): Most probable duration PrepFinity POSIBu

PERT Expected Time Formula: WHEPE

MSETS
PREPARATSON

TE=(0+4M+P)/6
Where:
TE = Expected Time
Key Features:
Used when activity durations are uncertain.
Focuses on identifying time variability and risk.
Comparison with CPM:
CPM assumes known fixed times.
PERT deals with uncertain or variable times.

Gantt Charts and Milestone Charts

Ini
Gantt Charts
A Gantt Chart is a bar chart that visually represents:
Project activities
Activity start and end dates
Activity durations
Dependencies (sometimes)
Key Features:
Easy to understand.
Good for tracking progress.
Updated frequently during project execution.
Example
A horizontal bar for "Design Website" shows it starts on Ist June and ends on 15th June.

Milestone Charts
Milestone Charts focus on key events or milestones of a project instead of every activity.
Milestone Examples:
"Prototype Completed"
"User Testing Started"
"Project Handover Done"
Key Features:
Simpler than full Gantt Charts.
Used in high-level reporting.
Shows only major progress points.

Schedule Compression Techniques

When the project is running late or needs to meet a tighter deadline, Schedule Compression
Techniques are applied without changing project scope.
Crashing
Crashing means adding extra resources to activities to shorten duration, inereasing cost.
Example:
<br>

PROJECT MANAGEMENT BY PREPFINITY

Hiring additional workers to finish a construction task faster. PrepFinity POSSIBIT

Key Points: ATION
PREPARATION
MEETS

Focuses only on activities on the critical path.

ERE
WHERE

Increases project cost.

Must be justified by benefit (cost-benefit analysis).

Fast Tracking
Fast Tracking involves performing activities in parallel that were originally scheduled to be
done sequentially.
Example:
Starting software coding while the design is only partially complete.
Key Points:
May increase risk.
No additional cost like crashing (initially), but can lead to rework.
Suitable when activities can overlap safely.

Summary Project Time (Schedule) Management

Topic Key Points
|Activity Definition to
Identifying project tasks achieve deliverables.
Activity Sequencing |Logical order of performing activities based on dependencies.
Critical Path Method
Identifies longest path; any delay delays project.
(CPM)
Uses optimistic, pessimistic, and most likely times for better estimates
PERT
under uncertainty.
Gantt Charts Bar charts representing schedule visually.
Milestone Charts Focus on major project events, not every task.

Crashing |Adding resources to critical path activities to shorten duration

(increases cost).
Fast Tracking Performing tasks in parallel to save time (increases risk).

Comparison: PERT vs CPM

PERT (Program Evaluation and
Feature Review Technique) CPM (Critical Path Method)
Probabilistic (deals with
Nature Deterministic (fixed time estimates)
uncertainty)
Focus Time estimation and uncertainty Time-cost trade-off and optimization
Varies (uses three time estimates:
Activity |Fixed and known duration for each
|Optimistic, Most Likely, activity
Duration Pessimistic)
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PERT (Program Evaluation and CPM (Critical Path Method)pP

Feature Review Technique) ATION
MEETY

Research, development, R&D Construction, manufacturing. production

|Application
projects, new projects where projects where activities are repetitive and
Area uncertainty is high predictable
Time 3 Estimates: Optimistic (0), Most
Estimate: Deterministic duration
Estimates Likely (M), Pessimistic (P)
Critical path can vary due to
Critical Path Critical path is clearly defined and stable
probabilistic times
Less focus on cost; primarily time |Strong focus on both time and cost
Cost Focus optimization
|management
Chart Type Event-oriented (Network based on Activity-oriented (Network based on
Used events and milestones) activities)
|More flexible in handling uncertain
Flexibility |Less flexible once durations are set
and changing conditions
Caleulation |Expected time is calculated using Duration is summed up directly based on
Approach weighted average formula activity durations
Example Use Space missions, Research projects, Building construction, Plant maintenance,
Cases Product development Infrastructure projects

7. Project Cost Management

Project Cost Management includes the processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so that the project can be conmpleted
within the approved budget.
Key Processes:
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs

Estimation Techniques
1. Analogous Estimating
Definition:
Analogous Estimating uses historical data from a similar past project to estimate costs for the
current project.
Key Features:
Top-down approach.
Less time-consuming and less expensive.
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Less accurate, as it is based on expert judgment and similarity assumptions. PrepFinity POSSIBLIT

Example: PREPARATIoN
MEETS

"If building a school in cityA cost $2 million, building a similar school in city B may alsö cost
around $2 million."
When Used:
Early phases of the project.
When limited project information is available.

2. Parametric Estimating
Definition:
Parametric Estimating uses statistical relationships between historical data and other variables
(like area, units produced) to calculate project costs.
Key Features:
Uses mathematical models/formulas.
More accurate than analogous estimating when parameters are correct.
Example:
"If paving a road costs $1000 per kilometer, a 50 km road would cost $50,000."
When Used:
When sufficient historical data and parameters are available.
When relationships between cost and measurable quantities are well understood.

3. Bottom-Up Estimating
Definition:
Bottom-Up Estimating involves estimating the cost of each project activity or work package
individually and then summing them up to determine the total project cost.
Key Features:
Most accurate estimation method.
Time-consuming and expensive.
Requires detailed scope and WBS.
Example:
Estimate cost for:
Labor for foundation work= $5000
Material for foundation work =$7000
Equipment rental = $3000 Total for foundation work = $15,000
When Used:
When detailed project information is available.
During project execution or final planning.

Cost Baseline and Budgeting

Cost Baseline
Definition:
The Cost Baseline is an approved version of the project budget, excluding management
reserves, used for measuring, monitoring, and controlling project cost performance.
Key Points:
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It is a time-phased budget (costs are mapped to time periods). PrepFinity

Used as a reference to compare actual project expenditures.
POSSIBuT
MEETS
ATION
PREPARATION
WHERE

Formula:
Cost Baseline-Total Project Costs-Management Reserve

Example
If total project cost estimate = $120,000
Management Reserve = $20,000
Cost Baseline = $100,000

Budgeting
Definition:
Budgeting involves aggregating estimated costs of individual activities or work packages to
establish an authorized cost baseline.
Key Elements:
Estimation of all costs including direct and indirect costs.
Funding requirements and periodic expenditure planning.
Outputs:
Project Funding Requirements.
Project Cost Baseline.

Earned Value Management (EVM)

Earned Value Management is a technique that combines scope, schedule, and cost
measurements to assess project performance and progress.

Key Terms and Formulas:

Term Meaning Formula
Planned Value
(PV)
Budgeted cost for work scheduled. PV = % Planned Work x Total Budget
Earned alue = % Actual Work Completed x
Budgeted cost for work performed. EY
(EV) Total Budget
Actual Cost Actual cost incurred for the work
Collected from financial reports.
(AC) performed.

Performance Measurements:
Metric Formula Interpretation
-
CV= EV
Cost Variance (CV) AC ||Positive = under budget; Negative = over budget
SV= EV -
Positive = ahead of schedule; Negative = behind
Schedule Variance (SV)
PV schedule
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Metric Formula Interpretation PreaEity

MEET
ATION
PREPARATION

CPI= EV/ wearpE

Cost Performance Index (CPI)

AC
CPI> 1= cost-efficient
|Schedule Performance Index SPI= EV/ SPI> 1 = ahead of schedule
(SPI) PV

Forecasting:
Term Formula Meaning
Estimate at Completion EAC= BAC/CPI
typical) |Forecasted project cost at completion
(EAC)
Estimate to Complete - How much more cost is needed to finish
|ETC = EAC AC
(ETC) the project
Variance at Completion =
VAC BAC- EAC Expected budget surplus or deficit
(VAC)
Where:
BAC = Budget at Completion

CostControl Techniques
Cost control includes monitoring project status to update costs and managing changes to the cost
baseline.
Key Techniques:
Technique Description
Earned Value Management
(EVM) |Integrated technique to measure project performance.

Performance Reviews Checking project progress against plan (cost and schedule).
Forecasting |Predicting future project performance using current data.
Analyzing deviations from the cost baseline (e.g., CV and
Variance Analysis
SV).
Trend Analysis |Examining project performance over time to detect trends.
Change Control System Managing changes to project budget systematically.

Summary
Topic Key Points
Estimation Techniques |Analogous (past project-based), Parametric (mathematical model
based), Bottom-Up (detailed component-based)
Cost Baseline Approved version of budget, used for performance tracking
Budgeting Aggregation of individual costs to form overall project budget
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Topic Key Points PreaEivty MELOSSIsuTY

PREPARATION

Earned Value
Management (EVM) |Integration of scope, cost, and time performance measurements

Tools like EVM, variance analysis, and forecasting to manage project|

Cost Control Techniques
Costs

9. Project Human Resource Management

Organizational Structures
Organizational structure affects how roles, responsibilities, authority, and communication are
distributed in a project.
1. Functional Organization
An organization divided by departments based on specialty (e.g., marketing, finance,
engineering).
Key Features:
Hierarchical structure.
Project manager has little to no authority.
Team members report totheir functional managers.
Project work is part-time and secondary to functional work.
Advantages:
Clear career paths within specialty.
Easy resource sharing between projects.
Disadvantages:
Slow decision-making for projects.
Project managers have limited control.

2. Matrix Organization
A blend of functional and projectized structures. Team members report to both a functional
manager and a project manager.
Types of Matrix Structures:
Weak Matrix: Project manager has less authority.
Balanced Matrix: Equal authority between project and functional managers.
Strong Matrix: Project manager has more authority.
Advantages:
Better resource utilization across projects.
Project manager gets more authority (especially in strong matrix).
Disadvantages:
Confusion due to dual reporting.
Potential conflicts between managers.
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3. Projectized Organization PrepFinity POSSIBIT

An organization structured entirely around projects. ERE

ATION
PREPARATION
MEETS

Key Features:
WHERL

Project manager has full authority over the project.

Team members are dedicated full-time to the project.
Communication is direct and fast.
Advantages:
Quick decision-making.
Clear project priorities.
Disadvantages:
Resource duplication across projects.
Team members may have no home after project completion.

Roles and Responsibilities

Role Responsibilities
|Plan, execute, and close the project; manage team, cost, timne, and
Project Manager
quality.
Project Team
|Members
Perform project tasks, contribute expertise, support project goals.

|Provides financial resources, approves major deliverables, supports

Sponsor
project.
Functional Manager Provides resources, expertise, and support:; manages functional tasks.
Stakeholders |Individuals or organizations affected by the project outcomes.

Team Development and Conflict Management

Team Development
Definition:
Building individual and group skills to improve project performance.
Stages of Team Development (Tuckman's Model:
1. Forming: Team meets, roles are unclear.
2. Storming: Conflicts arise over responsibilities.
3. Norming: Team members establish norms and relationships.
4. Performing: Team operates efficiently and independently.
5. Adjourning: Team disbands after project completion.
Techniques for Team Development:
Training and skilldevelopment.
Team-building activities.
Recognition and rewards.
Creating a supportive environment.

Conflict Management
Sources of Conflict:
Schedules
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PROJECT MANAGEMENT BY PREPFINITY

Resources PrepFinity POSSIBIT

Priorities ATION
PREPARATION
MEETS

ERE

Technical opinions WHERL

Personal styles
Conflict Resolution Techniques:
Technique Description
Collaborating (Win-Win) Finding a solution that satisfies all parties.
Compromising (Lose-Lose) Each party gives up something to reach a solution.
Forcing (Win-Lose) |Imposing one viewpoint over another.
Smoothing (Accommodating)|mphasizing areas of agreement.
Withdrawing (Avoiding) Delaying the conflict or retreating from it.

10. Project Communication Management

Communication Planning and Control
Communication Planning
Identifying the information and communication needs of project stakeholders.
Steps:
Identify stakeholders.
Determine infornmation needs.
Define communication methods (written, verbal, electronic).
Assign responsibilities.
Outputs:
Communication Management Plan.

Communication Control
Monitoring and controlling communications throughout the project lifecycle to ensure
information needs are met.
Activities:
Measuring effectiveness of communication.
Making adjustments based on stakeholder feedback.
Ensuring timely and accurate distribution of information.

Communication Models and Methods

Communication Models:
A conceptual framework describing the flow of communication.
Basic Communication Model:
Element Description
Sender Originator of the message.
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PROJECT MANAGEMENT BY PREPFINITY

Element Description PrepFlnity

TIOM
PREPARATION
|Message |Information communicated. ERE
WHERL

Medium Method used (email, meeting, phone call).

Receiver ||Person receiving the message.
Feedback|Response from the receiver confirming receipt and understanding.|

Communication Methods
Method Description Example
Interactive Two or nore parties exchange information in
Meetings, phone calls.
Communication real-time.
Information is sent to recipients without Emails, memos,
Push Communication
expecting feedback. |reports.
|Information is placed where recipients can Intranet, SharePoint,
Pull Communication access
it at their convenience. ldatabases.

Information Distribution and Reporting

Information Distribution
Making necessary information available to project stakeholders in a timely manner.
Techniques:
Face-to-face meetings.
Emails, memos, newsletters.
Collaboration tools (Slack, Microsoft Teams).

Reporting
Collecting and distributing performance information to stakeholders.
Types of Reports:
Status Reports (current state of project).
Progress Reports (what has been completed).
Forecast Reports (what is expected in future).
Variance Reports (differences between plan and actual).
Tools:
Dashboards.
Gantt charts.
KPIs (Key Performance Indicators).

Quick Summary
Topic Key Points
Functional (low PM authority), Matrix (medium), Projectized
Organizational Structures
(high PM authority)
<br>

PROJECT MANAGEMENT BY PREPFINITY

Topic Key Points

Clear assignment of tasks to PM, team members, sponsors,
Eity ssBuTY

Roles and Responsibilities

stakeholders.
Team Development
Follows Forming Storming Nornming Performing
Adjourning stages.
Collaborating, Compromising, Forcing, Smoothing,
Conflict Management
Withdrawing.

Communication Planning |Identifying stakeholder needs and defining conmmunication

||methods.
Sender Message Medium Receiver Feedback
Communication Models cycle.
Communication Methods Interactive (meetings), Push (emails), Pull (databases).
nformation Distribution and Timely distribution of information and performance reporting.
Reporting

11. Project Risk Management

Project Risk Management involves the processes of identifying, analyzing, responding to, and
controlling risks throughout the project lifecycle to increase the probability of success.
What is Risk?
A risk is an uncertain event or condition that, if it occurs, has a positive or negative impact on
at least one project objective (like time, cost, scope, or quality).
Threat: Negative impact.
Opportunity: Positive impact.

Risk Identification and Analysis

Risk Identification
The process of determining which risks may affect the project and documenting their
characteristics.
Inputs:
Project documents (charter, Scope statement, WBS).
Historical information from previous similar projects.
Expert judgment.
Brainstorming sessions.
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
Checklist analysis (using pre-existing risk checklists).
Outputs:
Risk Register: A document listing all identified risks, their causes, and potential
responses.
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PROJECT MANAGEMENT BY PREPFINITY

Typical Contents of a Risk Register: PrepFinity POSSIBIT

Risk description ATION
PREPARATION
MEETS

ERE
WHERE
Category (technical, external, organizational, project management)
Potential impact
Risk owner (who will manage it)
Initial responses

Risk Analysis
Once risks are identified, they are analyzed to prioritize them.
Analysis is done in two stages:
Qualitative Risk Analysis (high-level, quick).
Quantitative Risk Analysis (detailed, data-driven).

Qualitative and Quantitative Risk Analysis

Qualitative Risk Analysis
Assessing the probability and impact of identified risks to prioritize them.
Key Aspects:
Subjective assessment using tools like probability-impact matrix.
Focuses on high-priority risks first.
Often uses risk rating scales (e.g., high, medium, low).
Tools & Techniques:
Probability and Impact Matrix.
Risk categorization (grouping similar risks).
Risk urgency assessment.
Output:
Prioritized list of risks (important for response planning).

Quantitative Risk Analysis

Numerically analyzing the effect of identified risks on overall project objectives.
When used:
When high-priority risks need deeper analysis.
For large, complex projects where decisions are high-stakes.
Techniques:
Monte Carlo Simulation: Running many scenarios to predict overall impact.
Decision Tree Analysis: Mapping decisions and possible outcomes.
Expected Monetary Value (EMV):
EMV=ProbabilityxImpactEMV = Probability \times mpactEMV-ProbabilityxImpact
Sensitivity Analysis: Identifying which risks have the most potential impact.
Output:
Quantified understanding of overall project risk exposure.

Risk Response Planning

Developing options and determining actions to enhance opportunities and reduce threats.
Strategies for Negative Risks (Threats)
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PROJECT MANAGEMENT BY PREPFINITY

Strategy Description Example ty

Eliminate the threat or protect the project Changing project plan to remove a
Avoid
|from its impact. risky activity.
Transfer |Shift the impact to a third party. Insurance, outsourcing, warranty.

Mitigate |Reduce the probability or impact.

Conduct extra testing to reduce chances
llof failure.
Acknowledge the risk without proactive
Accept
laction. Set aside contingency reserves.

Strategies for Positive Risks (Opportunities)

Strategy Description Example
Exploit Ensure the opportunity happens. |Assign the best resources to a high-reward
|task.

Forming a partnership to jointly develop a

Share Share opportunity with a third party. new technology.
|Increase the probability or impact of
Enhance opportunity. Strengthen a proposal to win a contract.

and take advantage if it |No action, but ready to act if opportunity

Accept |Acknowledge
arises. |Occurs.

Risk Monitoring and Control

Tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk
process effectiveness throughout the project.
Activities:
Reassessing risks periodically (especially in key milestones).
Risk audits (checking how well risk responses are working).
Variance and trend analysis.
Updating the Risk Register with:
New risks.
Changes in existing risks.
Lessons learned.
Outputs:
Updated Risk Register.
Updated Risk Management Plan.
Work performance information.

Summary
Process Key Points
Risk Identification List all possible risks using brainstorming, SWOT, expert judgment.
Qualitative Risk Prioritize risks based on probability and impact using subjective
Analysis methods.
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PROJECT MANAGEMENT BY PREPFINITY

Process
Quantitative Risk
Key Points
Use data (EMV, Monte Carlo, Decision Trees) to calculate
impty RATION MET

Analysis numerically.
Risk Response |Plan to avoid, transfer, mitigate, or accept threats; exploit, share,
Planning lenhance, or accept opportunities.
Risk Monitoring and
Control |Track risks, reassess risks, perform audits, update documents.

Important Definitions
Term Definition
Risk An uncertain event or condition that impacts project objectives.
|Threat |Arisk with a negative impact.
Opportunity |A risk with a positive impact.

Risk Register Document listing identified risks and planned responses.

|Risk Management Plan |How risk management activities will be structured and performed.

12. Project Procurement Management

Project Procurement Management includes the processes necessary to purchase or acquire
products, services, or results needed from outside the project team.
It involves planning procurements, conducting procurements, controlling procurement work, and
closing procurements.

Procurement Planning
Determining what to procure, how to procure, when to procure, and from where.
Key Steps:
Make or buy decision: Should we do it ourselves or outsource?
Decide procurement method: Tendering, direct contracting, framework agreements.
Create Procurement Management Plan: Includes types of contracts, procurement
documents, selection criteria.
Key Documents:
Request for Proposal (RFP): Solicits proposals from vendors.
Invitation for Bid (IFB): Solicits formal bids.
Request for Quotation (RFQ): For smallvalue or standardized purchases.
Procurement Statement of VWork (SOW): Defines exactly what is being procured.

Contracts and Types

A contract is a legally binding agreement between buyer and seller that spells out deliverables,
costs, timelines, and conditions.
Major Types of Contracts:
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PROJECT MANAGEMENT BY PREPFINITY

Type
Fixed Price (Lump
Description Best when
Total fixed price for all work. Seller bears|Scope is well-defined
andty
TION
MEET

Sum) the risk. unlikely to change.

Fixed Price Price fixed, but with incentive for cost Encouraging better
Incentive Fee (FPIF) savings/performance. performance.
Scope not well-defined;
Buyer reimburses costs plus a fee (profit).
Cost Reimbursable Risk with buyer. research and development
|projects.
Cost Plus Fixed Fee Focused on cost control with
Cost reimbursement plus a fixed fee. flexibility.
(CPFF)
Cost Plus Incentive |Cost reimbursement plus incentive for Encourages cost control and
Fee (CPIF) efficiency. performance.
Time and Material Pay per hour or per item used. Hybrid of For short-term projects or
(T&M) fixed price and cost reimbursable. when scope is not clear.
Note:
Fixed Price = Seller risk.
Cost Reimbursable = Buyer risk.
T&M = Shared risk.

Vendor Selection and Contract Closure

Vendor Selection
Steps:
Advertising: Infornming potential vendors.
Bidder Conferences: Clarify technical and contractual requirements.
Proposal Evaluation: Assess based on price, technical capability, and reputation.
Selection: Choose the vendor who best meets the criteria.
Selection Techniques:
Weighting systems (assign points to different criteria).
Independent estimates (third-party cost estimates).
Screening systems (minimum qualification levels).

Contract Closure
Completing each procurement, verifying deliverables, resolving open items, and finalizing all
payments.
Activities:
Confirm all contractual obligations are met.
Audit procurements for performance.
Archive procurement-related documents.
Issue formal acceptance and close contract legally.
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PROJECT MANAGEMENT BY PREPFINITY

PrepFinity
13. Project Stakeholder Management POSsiBLITY
MEETS
gRLPARATION

Project Stakeholder Management involves identifying people, groups, or organizations that could
impact or be impacted by the project, analyzing their expectations, and developing strategies to
engage them effectively.

Identifying Stakeholders
Process of identifying individuals, groups, or organizations that could affect or be affected by the
project and documnenting information regarding their interests, involvement, and impact.
Sources toIdentify Stakeholders:
Project Charter.
Contracts.
Organizational charts.

nit
External parties (customers, regulators, partners).
Key Stakeholders:
Project Sponsor
Project Team
Customers/Users
Functional Managers
Vendors/Suppliers
Regulatory Agencies
Output:
Stakeholder Register: Name, role, interest, influence, expectations.

Stakeholder Analysis and Engagement

Stakeholder Analysis
Systematic gathering and analysis of stakeholder information to understand their expectations
and level of influence.
Tools:
Power/Interest Grid:
o High Power, High Interest: Manage closely.
High Power, Low Interest: Keep satisfied.
Low Power, High Interest: Keep informed.
Low Power, Low Interest: Monitor.
Salience Model:
Power, Urgency, and Legitimacy used to prioritize stakeholders.
Stakeholder Engagement Planning
Developing strategies to:
Increase support.
Minimize resistance.
Communicate effectively with each stakeholder based on their needs and influence.
Stakeholder Engagement Plan includes:
Stakeholder communication needs.
Frequency of communication.
Specific strategies for high-impact stakeholders.
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PROJECT MANAGEMENT BY PREPFINITY

PrepFinity POSSIBuT

Managing Stakeholder Expectations

MEETS
ATION
PREPARATION
ERE
WHERE

Working to meet stakeholder needs and addressing issues as they occur.

Key Points:
Proactive communication: Regular updates, progress reports.
Conflict resolution: Solve misunderstandings early.
Change management: Communicate and manage changesto scope/schedule.
Building trust: Transparency and reliability.
Engaging stakeholders in decisions: Especially major ones that impact them.

Summary
Topic Key Points
Procurement Planning Decide what, how, when, and from where to procure.
Contract Types Fixed Price (seller risk), Cost Reimbursable (buyer risk), T&M
(shared risk).
Vendor Selection |Advertise, evaluate proposals, select vendor.
Contract Closure Verify work, complete audits, archive documents.
Stakeholder Find all individuals and groups impacted by project.
Identification
Stakeholder Analysis Analyze power, interest, urgency, legitimacy.
Managing Expectations Communicate, resolve conflicts, build trust.

14. Project Management Tools and

Techniques
1. Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) is a hierarchical decomposition of the total scope of
work to accomplish project objectives and create the required deliverables.
It breaks the project into smaller, manageable components called work packages.
Key Features:
Focuses on deliverables, not tasks.
Hierarchical: Project Deliverables Sub-deliverables Work Packages.
Each lower level represents increasingly detailed work.
Benefits:
Defines project scope clearly.
Assigns responsibilities.
Facilitates scheduling, costing, and risk management.
Helps avoid missing elements in project planning.
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PROJECT MANAGEMENT BY PREPFINITY

Example Structure: PrepFinity POSIB

Build a House- Foundation- Excavate- Pour Concrete

MSETs
1 PREPARATION

WHEPE

2 Framing Walls- Roof

3 Plumbing 4 Electrical

WBS Dictionary:
Each work package can be explained in a document called the WBS Dictionary, which includes:
Description of work
Deliverables
Responsible party
Schedule milestones
Cost estimates

2. Gantt Charts
A Gantt Chart is a horizontal bar chart that shows the project schedule over time.
Each activity is represented by a bar; the length and position of the bar reflects:
Start date
Duration
End date
Key Features:
Visual display of project timeline.
Shows task dependencies (using arrowS or connectors).
Easy to track project progress.
Can identify critical tasks and slack.
Example Gantt Structure:
Task Start End Duration
Task AlJan 1|Jan 5 5 days
Task B Jan 6 Jan 1o|5 days
(The bars visually align with dates on a calendar timeline.)
Modern Gantt Charts:
Color-coded for phases.
Show actual vs. planned progress.
Include resource assignments.

3. Critical Path Analysis

Critical Path Method (CPM) identifies the longest sequence of dependent activities that
determine the shortest possible project duration.
Any delay in the critical path activities directly delays the project.
Steps in Critical Path Analysis:
1. List all project activities.
2. Identify dependencies.
3. Estimate the duration for each activity.
4. Draw a network diagram.
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PROJECT MANAGEMENT BY PREPFINITY

5. Calculate the earliest start (ES) and earliest finish (EF) times. PrepFinity POssiBLIT

6. Calculate the latest start (LS) and latest finish (LF) times. WHERE
PREPARATION
MEETS

7. Identify critical path: Activities where float =0.

Key Terms:
Float (Slack): Amount of time an activity can be delayed without delaying the project.
Zero Float: Critical Path activities have no flexibility.
Benefits:
Highlights important activities.
Prioritizes resource allocation.
Helps in schedule compression strategies.

4. PERT Charts
Program Evaluation and Review Technique (PERT) is a probabilistic project management
tool used to estimate project duration where activity durations are uncertain.
Unlike CPM, PERT uses three estimates for each activity:
Optimistic(0): Minimum time required.
Most Likely (M): Normal time required.
Pessimistic (P): Maximum time required.
PERT Expected Time Formula:
TE= (0+4M+P)/6
Where:
TE = Expected duration.
Key Features:
Deals with uncertainty better.
Helps estimate probability of completing on time.
Used for research, development, or first-time projects.
PERT Chart Structure:
Network diagram with nodes and arrows.
Nodes: Represent events (milestones).
Arrows: Represent activities.

5. Resource Leveling
Resource Leveling is a technique in which start and finish dates are adjusted based on resource
constraints to balance demand for resources with available supply.
Purpose:
To avoid over-allocating resources (e.g., same person assigned to multiple tasks at once).
To optimize resource utilization.
How Resource Leveling Works:
Delay non-critical activities within their float.
Extend project duration if necessary (if no float available).
When to Apply:
Resource availability is limited.
Certain resources are critical and cannot be overloaded.
Example:
<br>

PROJECT MANAGEMENT BY PREPFINITY

If an engineer is scheduled to work 16 hours a day across two tasks, resource leveling PrepFinity
woud POSSIBLIT

adjust the tasks so the engineer works normal hours. ens

ATION
pREPARATION
MEETS

WHER

6. Project Management Software

Microsoft Project (MS Project)
Basics:
Leading tool for professional project management.
Offers features like WBS creation, Gantt chart generation, resource allocation, critical
path calculation.
Key Features:
Task linking and dependency management.
Resource calendars.
Built-in reports (burndown charts, resource usage).
Timeline views.
Usage Examples:
Create detailed project schedules.
Monitor task progress.
Perform what-if analysis.

Primavera (Oracle Primavera P6)

Basics:
Popular in large and complex industries (e.g., construction, engineering, oil & gas).
Key Features:
Handles thousands of activities and resources.
Strong support for multiple projects and large teams.
Advanced risk management and earned value management.
Powerful Gantt chart and critical path views.
Usage Examples:
High-end scheduling and resource planning for megaprojects.
Integration with enterprise systems like ERP.

Quick Summary
TooVTechnique Purpose Key Features
Break down project scope into
WBS Hierarchical, deliverable-oriented.
|manageable parts.
Gantt Chart Visualize schedule over time. Timeline view, dependencies.
Critical Path
|Identify longest path of activities. Focus on zero float tasks.
Analysis
Estimate project duration with
PERT Chart uncertainty. Three estimates: 0, M, P.
Balance resource demand with
Resource Leveling lavailability. Adjust start/end dates.
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Tool/Technique Purpose Key Features Eity

METTossBuTY
BATION

MS Project Professional project planning tool. WBS, Gantt,Resource mgmt.

Handles large projects, advanced
|Primavera |Enterprise project management. reporting.

15. ProjectScheduling Techniques

1. Network Diagrams (AOA and AoN)
Network diagrams are graphical representations of activities and their sequence in a project.
They visually depict how tasks are related and when they must be completed.
Two main types:
(i) Activity on Arrow (AoA)
Activities are represented on arrows.
Nodes (circles) represent events (start/end of activities).
Used mainly with PERT diagrams.
Dummies (dashed arrows)are used to show dependencies without real activities.
Example:
Arrow from Node 1 to Node 2 represents "Task A".
(ii)Activity on Node (AoN)
Activities are represented inside nodes (boxes).
Arrows represent dependencies between tasks.
Used mainly with Critical Path Method (CPM).
More popular today due to easier construction.
Example:
Box A (Task A) leads by an arrow to Box B (Task B).

2. Slack and Float Concepts

Slack (or Float) is the amount of time an activity can be delayed without delaying the
project completion or other dependent activities.
Two types:
Term Meaning
Total
Time an activity can be delayed without delaying project completion.
Float
Time an activity can be delayed without delaying the early start of any successor
Free Float activity.
Important:
Activities on the critical path have zero total float.
Non-critical activities may have positive float.

3. Forward Pass and Backward Pass Calculations

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These techniques calculate start and finish times for activities. PrepFinity POSSIBIT

(i)Forward Pass DE
WHERL
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Calculates the Earliest Start (ES) and Earliest Finish (EF) of each activity.
Start from project start and move forward.
Formulas:
ES (first activity) =0 or Project Start Time
EF = ES + Duration
ES (next activity)= Latest EF of predecessors
(ii) Backward Pass
Calculates the Latest Start (LS) and Latest Finish (LF) of each activity.
Start from project end and move backward.
Formulas:
LF (last activity) = Project Required Finish Time
LS =
L- Duration
LF (previous activity) = Earliest LS of successors
Why Used?
Identify float.
Identify critical path.
Build reliable project schedules.

16. Project Estimation and Budgeting

1. Estimating Time, Cost, and Resources
Estimation is predicting the amount of time, money, and resources needed to complete project
activities.
Purpose:
Develop realisticschedules and budgets.
Allocate resources properly.
Identify risk-prone areas early.
Types of Estimation:
Time Estimation: How long each activity will take.
Cost Estimation: How much money will be needed.
Resource Estimation: Type and quantity of resources (labor, equipment, materials).

2. Techniques for Estimation

(i) Expert Judgment
Rely on experienced professionals.
Based on intuition, past experiences, and industry expertise.
Common in early project stages.
Sources of experts: Historical information, Subject Matter Experts (SMEs), Consultants

(i) Delphi Method

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Structured group communication technique. PrepFinity

Experts answer questions anonymously in multiple rounds.
POSSIBIT
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After each round, a facilitator provides a summary of forecasts.

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Experts revise their earlier answers based on group feedback.

Goal: Achieve a consensus estimate without influence or bias.
Best for:
Complex or uncertain projects.
Projects with no clear historical data.

(ii) Analogous Estimation (Top-Down Estimation)

Compare with similar past projects to estimate current project.
Based on historical data.
Fast and inexpensive but less accurate.
Example:
"If building a 10-storey building took 50 crore, then a 12-storey building will cost
approximately 260 crore."9
Best for:
Early project stages.
When limited information is available.

Quick Summary
Network Diagrams (AoA vs AoN)
Feature |Activity on Arrow (AoA)Activity on Node (AoN)
Representation |Activities on arrows Activities inside nodes
Nodes represent Events (start/end) Activities/tasks
|Dummy activities Common Rare
Commonly used in|PERT |CPM

Estimation Techniques
Technique Key Features Best Use
Expert Judgment Uses experience and intuition Allprojects
Multiple rounds of anonymous expert High uncertainty
Delphi Method
lopinions projects
Analogous
Fast, based on historical data Early rough estimates
Estimation

Sample Delphi Process for Estimation

Step 1: Initial Questionnaire to Experts
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A set of open-ended questions related to the project estimation is sent out to a group Fnity
experts. These could involve: Prep PREPARATION
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POss

WHERE

Time estimates for specific project activities.

Cost projections for certain deliverables.
Potential risks and their mitigation.
Example Question:
"What is your estimated cost for delivering the software application in 6 months?"
Step 2: Expert Responses and Anonymity
Experts submit their responses individually, ensuring anonymity.
This prevents influence or bias from dominant figures.
Example Response:
Expert 1: 40 lakh
Expert 2: 245 lakh
Expert 3: 50lakh
Step 3: Summary of Responses and Feedback
The facilitator summarizes the responses (without identifying the experts) and shares the
results with all participants. This can include:
Range of estimates (e.g., 240 -50 lakh).
Average estimate (e.g., 745 lakh).
Example Summary:
The estimates for cost range from 240 lakh to 50 lakh.
The average estimate provided by experts is 45 lakh.
Step 4: Second Round of Estimation
Experts are asked to revise their initial estimates based on the summary feedback from
the group.
They are allowed to change their answers, providing reasoning for any significant
changes.
Example Revised Response:
Expert 1: 45 lakh (Revised after reviewing others' feedback).
Expert 2: 247 lakh (Slight increase considering project complexity).
Expert 3: Z50 lakh (No change, but adds a note about project risk).
Step 5: FinalRound of Estimation
After several rounds (usually 2-3), the facilitator generates a final estimate based on the
consensus or average of responses.
Final Consensus:
After the third round, the final consensus for the estimated project cost is 46 lakh.
Step 6: Final Report and Decision
The facilitator prepares the final report, which includes:
The final estimate (e.g., 346 lakh).
Rationale behind the decision.
Key points of agreement and disagreement.
This final estimate is then used to make decisions about project scheduling, budgeting,
and resource allocation.

Representation of the Delphi Process

[Start]
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[Round 1: Initial Questionnaire] PrepFinity

[Experts Submit Estimates] ATION
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[Round 2: Summary Feedback & Revision] ERE

WHERL

[Experts Revise Estimates Based on Feedback]

[Round 3: Final Consensus and Report Preparation]
[Final Estimate Decision Made]
[End]

Benefits of Delphi Method in Estimation:

1. Anonymity: Experts can provide unbiased estimates without external influence.
2. Iterative Process: Multiple rounds of feedback increase the accuracy of the final
estimate.
3. Consensus Building: Ensures broad agreement from all experts.
4. Reduction of Groupthink: Experts can independently review and revise their opinions.

17. Modern Trends in Project

Management
1. Agile Project Management Basics
Agile Project Management (APM) is an iterative and flexible approach to managing projects. It
focuses on delivering small, incremental improvements over time, ensuring rapid adaptation to
changes in scope, resources, and other variables.
Core Principles:
Iterative Development: Work is broken into smaller, manageable iterations (called
sprints in Scrum).
Customer Collaboration: Emphasizes continuous communication with customers or
stakeholders.
Responding to Change: Flexibility is key; project plans evolve as the project progresses.
Cross-Functional Teams: Teams are collaborative and work closely across various
disciplines.
Benefits:
Quick feedback from customers.
Frequent delivery of product increments.
Better risk management due to regular reviews.
Increased stakeholder engagemnent throughout the project.
Key Agile Frameworks:
Scrum: A framework that uses time-boxed sprints (usually 2-4 weeks) to complete
work.
Kanban: Focuses on continuous delivery without fixed iterations, using a visual board to
manage work.
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2. Serum and Kanban Overview PrepFinity POSsIBLIT

MEETS
PREPARATION

Serum Overview LRE

WHERE

Scrum is an Agile framework focused on managing work in sprints (short, time-boxed periods
of work), generally lasting 2 to 4 weeks. Scrum emphasizes teamwork, accountability, and
delivering product increments after each sprint.
Key Roles:
Scrum Master: Facilitates the Scrum process and resolves impediments.
Product Owner: Represents stakeholders and defines the product backlog.
Development Team: Cross-functional team responsible for delivering the product
increment.
Key Artifacts:
Product Backlog: A prioritized list of all desired project features.
Sprint Backlog: A list of tasks to be completed during a sprint.
Increment: The final deliverable produced at the end of a sprint.
Key Ceremonies:
Sprint Planning: Defining the work to be done during the sprint.
Daily Stand-up (Daily Scrum): Quick daily meetings to discuss progress and blockers.
Sprint Review: Demonstrating the work completed at the end of the sprint.
Sprint Retrospective: Reflection on the sprint to identify improvements.

Kanban Overview
Kanban is an Agile framework that focuses on visualizing work, limiting work-in-progress
(WIP), and ensuring continuous flow through a system. It is less structured than Scrum, without
fixed sprints, and focuses more on continuous delivery.
Key Components:
Kanban Board: A visual board used to manage work with columns representing the
different stages of work.
Work-in-Progress Limits (WIP):Limits on the number of tasks that can be in progress
at any given time, helping to prevent bottlenecks.
Benefits:
Visualizes workflow, making it easier to identify bottlenecks.
More flexibility than Scrum, as there are no fixed sprints.
Focuses on continuous improvement.

3. Lean Project Management

Lean Project Management is derived from Lean manufacturing principles, aiming to minimize
waste and optimize value in project delivery. Lean focuses on delivering maximum value with
the least amount of effort, time, and resources.
Core Principles:
Value: Focus on what delivers value to the customer.
Value Stream Mapping: Identify and eliminate waste (non-value-adding activities) in
the process.
Continuous Improvement: Encourage ongoing optimization and problem-solving.
Empowered Teams: Teams are given autonomy to make decisions and improve
processes.
Benefits:
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Efficiency: Reduced waste leads to faster delivery times. PrepFinity POSSIBIT

Improved Quality: Fewer errors due to well-defined processes. ATION

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Cost Reduction: Fewer resources are needed for each phase of the project.
ERE
WHERE

Techniques:
Kaizen (Continuous Improvement)
Just-in-Time (JIT): Minimizing inventory by producing only when required.
5S: Organizational method for workspace efficiency (Sort, Set in order, Shine,
Standardize, Sustain).

4. Risk-Adjusted Project Management

Risk-Adjusted Project Management involves integrating risk management techniques with
project planning to make decisions that account for uncertainties and their potential impact on
project success. It aims to ensure that project plans are adaptable to potential risks.
Key Concepts:
Risk Identification: Identifying all potential risks (both positive and negative) that may
affect the project.
Risk Assessment: Analyzing the probability and impact of risks on the project.
Risk Response: Developing strategies for handling risks (e.g., avoidance, mitigation,
transfer).
Contingency Planning: Allocating extra time or resources to manage identified risks.
Risk Adjustments:
Adjust the project scope, schedule, or budget based on the risk assessment.
Regular Risk Monitoring ensures timely identification of new risks.

18. Ethics in Project Management

1. Code of Ethics
The Code of Ethics in project management refers to a set of principles and guidelines that help
project managers make ethical decisions throughout the project lifecycle. The code emphasizes
integrity, responsibility, and professionalism.
Key Areas:
Honesty: Be truthful and transparent in all dealings.
Fairness: Treat all stakeholders with respect and impartiality.
Responsibility: Take accountability for actions and outcomes.
Confidentiality: Safeguard sensitive project information.
Example of a Code of Ethics:
Always maintain professional integrity in all interactions.
Disclose any potential conflict of interest to stakeholders.
Report ethical violations and take corrective actions when needed.
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2. Professional Responsibility acFinity POSSIBLITY

Professional responsibility in project management involves the project manager's duty to EETS

the best interest of all stakeholders, uphold ethical standards, and ensure the success of the
project.
Core Responsibilities:
Accountability: Ensure the project is completed on time, within scope, and on budget.
Competence: Continuously improve skills and knowledge relevant to the project.
Transparency: Maintain open communication with all stakeholders.
Social Responsibility: Ensure the project benefits society and adheres to sustainability
goals.

3. Conflict of Interest in Projects

A conflict of interest arises when a project manager or stakeholder has a personal or financial
interest that might compromise their ability to make unbiased decisions for the project.
Types of Conflict:
Personal Conflict: Project managers or stakeholders may favor family members or
friends in decision-nmaking.
Financial Conflict: A stakeholder may make decisions that benefit them financially at
the expense of the project.
Professional Conflict: A stakeholder might make decisions based on personal career
goals rather than project success.
Managing Conflicts of Interest:
Disclosure: Allpotential conflicts should be disclosed to relevant stakeholders.
Recusal: Individuals with a conflict should step aside from decision-making where their
interests could influence the outcome.
Ethical Governance: Establish clear ethical guidelines to minimize conflicts of interest
and promote fairness.

Summary
Topic Key Concepts Best Practices
|Agile Project Iterative, flexible, responsive to Focus on continuous feedback
|Management change and adaptation
Roles (Scrum Master, Product |Time-boxed sprints, regular
Scrum Owner, Team), Sprints feedback and reviews
Continuous flow, work
|Kanban Visualizing work, WIP limits
prioritization
Lean Project |Value Stream Mapping,
Minimize waste, maximize value |Continuous
Management Improvement
Risk-Adjusted Project |Integrating risk management with Regular risk assessment,
Management project planning lcontingency planning
Disclose conflicts, maintain
Code of Ethics |Honesty, fairness, transparency
professionalism
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Topic
Professional
Key Concepts
|Accountability, competence,
rFyty
Best Practices
Ethical decision-making,. os
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p9EPARATION
MEE

Responsibility social responsibility |ransparency

Personal or financial interests that Disclosure and recusal of
Conflict of Interest
affect decisions conflicting individuals

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