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PMP Session Notes

My PMP session presentation notes.

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100% found this document useful (3 votes)

254 views268 pages

PMP Session Notes

My PMP session presentation notes.

Uploaded by

aniruddhakhairnar

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PPTX, PDF, TXT or read online on Scribd

Ground Rules

Start on Time & End on Time.

Laptops & Mobile Switched OFF / SILENT mode.
No Cross Conversation.
Slow down. The more your understand, the less you have to

memorize.
Do the exercises. Write your own notes.
Read the There are No Dumb Questions. section in
HeadFirst PMP.
Make this the last thing you read before bed. Or at least the
last challenging thing.
Drink water. Lots of it.
Talk about it. Out loud.
Listen to your brain.

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September 2016

Personal Intoduction
Name
Work Profile
What do you know about PMP?
What are you expecting from PMP?
What do you know about Prince 2?

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September 2016

PMP

PRINCE 2
Foundation

Subject

PM Knowledge

PM Method

Deals with
question types

How?

What? When?
Whom?

Most common
in

USA, Canada,
Middle East,
Australia

UK, Europe,
Australia

PRINCE 2
Practitioner

Source of exam Mainly PMBOK

Guide, but not
limited to it

The official
manual,
Managing
successful
projects with
PRINCE 2

Number of
questions

200

Type of
questions

Multiple choice

Objective
testing

September 2016
Abstract

Abstract

Scenario based

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Passmark

PMP

PRINCE 2
Foundation

PRINCE 2
Practitioner

62%

50%

55%

NOTE: Passing is
not based on predefined value and
its not publicly
available, but said
to be close to 62%.

Duration

240 mintues (4
Hrs)

60 minutes

150 minutes

Extra time for

taking the
exam in a
second
language

15 minutes

30 minutes

Open book

Yes

Pre-requisites

3 yrs exp in
Project
Management,
September 2016
4,500 hrs exp

Formal training
might be
required

PRINCE 2
Foundation
Certified,
Formal training

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PMP

PRINCE 2
Foundation

Registering for
exam

By registering
at [Link] and
taking the
exam in
Prometric exam
centers around
the world.

Usually by registering at an
accelerated training organization
and taking the exam online
(wherever you are), at an exam
center, or at any other place
youve arranged with your
training organization.

Renewing the
certificate

Every 3 years,
by PDUs

It doesnt
expire

Exam Cost

$405 PMI
Members,
$555 Non-PMI
Members

Varies according to the region

the exam is taken in

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September 2016

PRINCE 2
Practitioner

Every 3 to 5
years, by a
relatively
shorter exam

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September 2016

Introduction to PMI

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Project Management Institute is the world's leading not-forprofit professional membership association for the project,
program and portfolio management profession.
Founded in 1969, PMIs headquarters is located near
Philadelphia, Pennsylvania, USA by working Project Managers.
PMI Membership supports and encourages all project
professionals to pursue a new balance of global and local best
practices, relationship building and sharing resources.
Global standards are crucial to the project management
profession. Standards ensure a basic project management
framework is applied consistently worldwide.
13 global standards (including Program and Portfolio
Management).
Over 3 million copies of A Guide to the Project Management
Body of Knowledge (PMBOK Guide) in circulation.

September 2016

Core Values
Project management is a critical competence that has a positive
influence on organization results and society.
Accountability and ethical behavior ensures our commitment to PMI
stakeholders.
Volunteers and effective volunteer partnerships with staff are the best
way to accomplish the Institute's goals and objectives.
Bringing members of the global project management community
together is the best way to advance the project management
profession and facilitate their growth.
Encouraging diverse viewpoints and enabling individuals to contribute
to the project management profession and to the Institute.
Through times of growth and change, our core values provide
continuity and a moral compass, communicating our beliefs and
guiding our behavior.

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September 2016

Ethics in Project
Management
Project management is driven by decisions, often dozens or more per
day. Some decisions are small and barely noticed while others are
prominent. Some require deep thought because they involve people,
resources and the environment. And sometimes these factors are in
conflict, creating a dilemma and perhaps significant risks.
While project managers normally know what to do, how to do it can
become a puzzle especially when stakeholder interests conflict. Like
all leaders, project managers build trust by the way they make decisions.
Here again, the how to do it can be puzzling yet is instrumentally
important.
Ethics is the discipline of how to do it best. To guide behavior and help
with tough decisions, weve crafted a Code of Ethics and Professional
Conduct and an Ethical Decision-Making Framework. To deepen your
knowledge and perspective, we provide numerous articles, papers and
webinars.
When unethical behaviors arise, take action. Use PMI ethics complaint
and review process and see the specialized resources available.

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September 2016

PMI Certification Program

PMI offers a comprehensive certification program for
practitioners with different levels of education and experience.
The certifications are developed and maintained through a
vigorous process.
The certification program includes:
Certified
Associate in Project Management (CAPM)
certification
PMI Agile Certified Practitioner (PMI-ACP) certification
PMI Risk Management Professional (PMI-RMP) credential
PMI Scheduling Professional (PMI-SP) credential
Portfolio Management Professional (PfMP) credential
Program Management Professional (PgMP) credential
Project Management Professional (PMP) credential

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September 2016

PMI Certification Program

Credential
The PMP credential scheme is accredited by the American
National Standards Institute (ANSI) against the International
Organization for Standardization (ISO) 17024. The 17024
standard includes vigorous requirements for examination
development and maintenance and for the quality management
systems for continuing quality assurance.
In addition, the PMP credential is also registered against the ISO
9001:2008 standard for quality management systems. This
accreditation provides a third-party affirmation of quality in the
development, management and governance for the PMP
credential. It also gives credential holders and organizations who
employ them additional confidence in the PMP credential.
PMIs certification and credentials are distinguished by their
global development and application, which makes them
transferable across industries and geographic borders. The
strength of PMIs credentials is that they are portable and not
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September 2016
tied to any single method, standard, or organization.

Project Management
Professional (PMP)
The Project Management Professional (PMP) is the most
important industry-recognized certification for project managers.
You can find PMPs leading projects in nearly every country and,
unlike other certifications that focus on a particular geography
or domain, the PMP is truly global. As a PMP, you can work in
virtually any industry, with any methodology and in any location.
The PMP signifies that you speak and understand the global
language of project management and connects you to a
community of professionals, organizations and experts
worldwide.
Who should apply?
If youre an experienced project manager responsible for all
aspects of project delivery, leading and directing cross-functional
teams, then the PMP is the right choice for you.
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September 2016

PMP Eligibility
Requirements
To be eligible for the PMP credential, you must meet certain
educational and professional experience requirements. All
Project Management experience must have been accrued within
the last eight consecutive years prior to your application
submission.
Educational
Background

Project Management Experience

Project
Manageme
nt
Education

Four-year degree
(Bachelor's
degree or global
equivalent)

Minimum three years / 36 months

unique non-overlapping professional
project management experience
during which at least 4,500 hours
were spent leading and directing the
project.

35 contact
hours of
formal
education.

Minimum five years / 60 months

unique non-overlapping professional
project management experience
during which at least 7,500 hours
were spent leading and directing the
September 2016
project.

35 contact
hours of
formal
education

Secondary
degree (High
school diploma,
associate's
degree or global
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equivalent)

PMP Application
You should have experience in all five process groups across all
your project management experience submitted on the
application. However, on a single project, you do not need to
have experience in all five process groups.
For each month in which you worked on multiple, overlapping
projects, you can only count the time spent on ONE of those
projects toward fulfilling your eligibility requirements.

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September 2016

Fees
PMI Membership Fee - $129 Membership fee + $10
Registration Fee
- $129 Renewal / Year
Exam Administration Type

PMI Member Status

Computer based testing (CBT)

Member

$405

Computer based testing (CBT)

Non-Member

$555

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September 2016

US Dollars

PMP Examination Blueprint

The PMP examination is developed based on the PMP
examination blueprint contained in the PMP Examination
Content Outline. The examination blueprint details the
percentage of questions contained in each project management
process group. The following represents the percentage of
questions in each domain that are included in the examination.

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Domain

Percentage of Questions

Initiation

13%

Planning

24%

Executing

31%

Monitoring & Controlling

25%

Closing

TOTAL

100%

September 2016

PMP Examination
Information
The PMP examination is comprised of 200 multiple-choice

questions. All questions are randomly placed throughout the

examination.
No. of Scored
No. of Pretest
Total Examination
Questions

(Unscored)
Questions

Questions

175

200

Pretest questions do not affect the score and are used in

examinations as an effective and legitimate way to test the

validity of future examination questions.
No negative marking.
Computer-based testing (CBT) is the standard method of
administration for
PMI examinations. Paper-based testing
(PBT) is available under limited circumstances.
The allotted time to complete the computer-based
examination is 4 (Four) hours.
The examination is preceded by a tutorial and followed by a
survey, both of
which are optional and both of which can take
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September 2016
up to 15 minutes to
complete.

PMP Exam Sample

Questions

Q. An accepted deadline for a project approaches. However, the

project manager realizes only 75% percent of the work has
been completed. The project manager then issues a change
request. What should the change request authorize?
A. Additional resources using the contingency fund
B. Escalation approval to use contingency funding
C. Team overtime to meet schedule
D. Corrective action based on causes
Q. The project manager develops a process improvement plan to
encourage continuous process improvement during the life
of the project. Which of the following is a valid tool or
technique to assist the project manager to assure the
success of the process improvement plan?
E. Change control system
F. Process analysis
G. Benchmarking
H. Configuration management
system
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September 2016

Examination Report
Upon completion of the computer-based examination, you will
receive a printed copy of your test results. In addition to the
overall pass/fail status, important diagnostic information on your
performance is provided for each domain. This information
provides specific guidance for both passing and failing
candidates.
Understanding Your Exam Report
Your test results are reported in two ways:
1. A pass/fail result score is generated based on your overall
performance on the examination.
2. The second level of results is the assignment of one of three
proficiency levels to each chapter.
Each topic domain is assigned one of three levels of proficiency
Proficient, Moderately Proficient and Below Proficientbased
on the number of questions answered correctly within the
domain.
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September 2016

Examination Report
PMI defines the levels of proficiency as follows:
Proficient indicates performance is above the average level
of knowledge in this chapter.
Moderately Proficient indicates performance that is at the
average level of knowledge in this chapter.
Below Proficient indicates performance is below the average
level of knowledge in this chapter.
Establishing the Passing Score
The passing score for all PMI exams is determined by sound
psychometric analysis. PMI uses subject matter experts from
across the globe to help establish a point at which each
candidate should pass the exam(s) and the exam point of
difficulty. Data that show how candidates actually performed are
cross referenced with the subject matter experts to ensure that
the point of difficulty on each exam is healthy.
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September 2016

Examination Report

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September 2016

PMP Certificate

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September 2016

Certificate Package

Within six to eight weeks, you will receive a credential package

that includes:
Congratulatory letter
Information on how to maintain and renew your credential
Credential certificate
Both of these documents list your:
Credential number a unique identification number used by
PMI to maintain your individual certification records
Your credential cycle dates
You will want to file this information in a safe and easily
accessible location. You will need to refer to it in order to report
professional development activities to maintain your credential.
Until you receive your certificate package, you may use your
exam report (available online through the certification system)
to validate your credential
status.
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September 2016

How to use your PMP

Credential
Once you pass the examination, you are granted the PMP
credential. You may refer to yourself as a PMP credential holder
as long as you have an active certification status. You are
authorized to use the PMP designation in block letters after your
name on business cards, personal letterhead, resumes, websites
and in your email signature.
Please note that as part of the application process, you agreed
to adhere to the PMI Code of Ethics and Professional Conduct
and the Certification Application/Renewal Agreement. This
means, among other things, that you will only use the PMP
designation in the manner stated above and that you will not
use the PMP designation in company names, domain names,
product names, or any other unauthorized manner.

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September 2016

Online Certification Registry

The online Certification Registry automatically lists names of
PMIs credential holders. This feature allows verification of
credential holders for the benefit of employers, service
purchasers and others. Users can search for credential holders
by first name, last name, or by country. Credential holders can
choose to be removed from the registry, so the absence of your
name in the registry does not necessarily mean that you are not
credentialed. You can opt out of inclusion in the registry or
update your demographic information by visiting [Link]

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September 2016

CCR Program Overview

PMIs Continuing Certification Requirements (CCR) program
supports the ongoing educational and professional development
of our certification holders so they are always prepared to meet
the demands of todays complex business environment. The
purpose of the CCR program is to:
Enhance continuous learning and development among
certification holders
Provide direction in development areas to ensure relevancy of
certified practitioners
Encourage and recognize individualized learning opportunities
Offer a mechanism for attaining and recording professional
development activities
Sustain the global recognition and value of PMI credentials
Everyone who earns a PMI certification (with the exception of the
CAPM certification) must actively maintain their certification(s)
through participation in the CCR Program and renewal of their
certification(s) every 3 years.
Partaking in professional development and learning activities allows
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2016
certification holdersSeptember
to earn
Professional Development Units (PDUs),

Become PMI Member - $139

Download for FREE and Read PMPBOK
Attend the Session of 35 hours
Read Headfirst PMP and solve all exercises
Collect PDU CODE after completing the Session

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September 2016

- Chapter 1 Introduction

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September 2016

Chapter 1 Introduction
What is Project?
It's a temporary endeavor undertaken to create a unique product,
service or result.
Temporary A project is temporary in that it has a defined beginning
and end in time, and therefore defined scope and resources.
Unique A project is unique in that it is not a routine operation, but a
specific set of operations designed to accomplish a singular goal. So a
project team often includes people who dont usually work together
sometimes from different organizations and across multiple
geographies.
Progressively Elaborated You learn more and more about a project as
it goes on. When you start, you have goals and a plan, but there is
always new information to deal with as your project progresses, and
youll always have to make decisions to keep it on track. While you do
your best to plan for everything that will happen, you will keep
learning more about your project as you go.
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September 2016

Chapter 1 Introduction
Why are Projects undertaken?

Market Demand

Strategic opportunity / Business need

Social Need

Environmental Consideration

Customer request

Technological advancement

Legal requirements
Projects VS Operations
PROJECTS

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OPERATIONS

Temporary

On-going

Unique

Repetitive

Closes after attaining

objective

Objective is to sustain
business

e.g.: Prototyping the new

car modelSeptember 2016

e.g.: Assembly line

production

Chapter 1 Introduction
Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet the project
requirements.
It has always been practiced informally, but began to emerge as
a distinct profession in the mid-20th century.
> Project management processes fall into five groups:
Monitoring &
Initiating
Controlling
Planning
Closing
Executing
Project
>
management knowledge draws on ten areas:

Integration
Scope
Time
Cost

Quality

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September 2016

Procurement
Human resources
Communications
Risk management
Stakeholder
management

Chapter 1 Introduction
What is Program Management?
A program is defined as a group of related projects,
subprograms, and program activities managed in a coordinated
way to obtain benefits not available from managing them
individually. Programs may include elements of related work
outside the scope of the discrete projects in the program. A
project may or may not be part of a program but a program will
always have projects.
Program management is the application of knowledge, skills,
tools, and techniques to a program in order to meet the program
requirements and to obtain benefits and control not available by
managing projects individually.
An example of a program is a new communications satellite
system with projects for design of the satellite and the ground
stations, the construction of each, the integration of the system,
and the launch of the satellite.
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September 2016

Chapter 1 Introduction
What is Protfolio Management?
A portfolio refers to projects, programs, subportfolios, and
operations managed as a group to achieve strategic objectives.
The projects or programs of the portfolio may not necessarily be
interdependent or directly related. For example, an
infrastructure firm that has the strategic objective of
maximizing the return on its investments may put together a
portfolio that includes a mix of projects in oil and gas, power,
water, roads, rail, and airports. From this mix, the firm may
choose to manage related projects as one program. All of the
power projects may be grouped together as a power program.
Similarly, all of the water projects may be grouped together as a
water program. Thus, the power program and the water program
become integral components of the enterprise portfolio of the
infrastructure firm.
Portfolio management refers to the centralized management of
one or more portfolios to achieve strategic objectives. Portfolio
management focuses on ensuring that projects and programs
are reviewed to prioritize
resource allocation, and that the
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September 2016

Chapter 1 Introduction

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September 2016

Chapter 1 Introduction
Relationship Between Project Management, Operations
Management, and Organizational Strategy Operations management is responsible for overseeing, directing,
and controlling business operations. Operations evolve to
support the day-to-day business, and are necessary to achieve
strategic and tactical goals of the business. Examples include:
production operations, manufacturing operations, accounting
operations, software support, and maintenance.
Though temporary in nature, projects can help achieve the
organizational goals when they are aligned with the
organizations strategy. Organizations sometimes change their
operations, products, or systems by creating strategic business
initiatives that are developed and implemented through projects.
Projects require project management activities and skill sets,
while operations require business process management,
operations management activities, and skill sets.

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September 2016

Chapter 1 Introduction
The project manager is the person assigned by the performing
organization to lead the team that is responsible for achieving
the project objectives. The role of a project manager is distinct
from a functional manager or operations manager. Typically the
functional manager is focused on providing management
oversight for a functional or a business unit, and operations
managers are responsible for ensuring that business operations
are efficient.
They are found in every kind of organization -- as employees,
managers, contractors and independent consultants. With
experience, they may become program managers (responsible
for multiple related projects) or portfolio managers (responsible
for selection, prioritization and alignment of projects and
programs with an organization's strategy).
Competencies of Project Managers

Knowledge

Performance

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September 2016

Chapter 1 Introduction
Interpersonal Skills of a Project Manager

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Leadership,
Team building,
Motivation,
Communication,
Influencing,
Decision making,
Political and cultural awareness,
Negotiation,
Trust building,
Conflict management, and
Coaching.

September 2016

Chapter 1 Introduction
A project management office (PMO) is a management
structure that standardizes the project-related governance
processes and facilitates the sharing of resources,
methodologies, tools, and techniques. The responsibilities of a
PMO can range from providing project management support
functions to actually being responsible for the direct
management of one or more projects.
Supportive - Supportive PMOs provide a consultative role to
projects by supplying templates, best practices, training,
access to information and lessons learned from other
projects. This type of PMO serves as a project repository. The
degree of control provided by the PMO is low.
Controlling - Controlling PMOs provide support and require
compliance through various means. Compliance may involve
adopting project management frameworks or methodologies,
using specific templates, forms and tools, or conformance to
governance. The degree of control provided by the PMO is
moderate.
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September
2016 take control of the projects by
Directive - Directive
PMOs

Chapter 1 Introduction
Q. Which of the following is NOT a responsibility of a project
manager?
A. Managing stakeholder expectations.
B. Managing project constraints.
C. Gathering project requirements.
D. Sponsoring the project.
Q. Youre managing a project to remodel a kitchen. You use
earned value calculations to figure our that youre going to
run $500 over budget if your project continues at the current
rate. Which of the following core characteristics of a project
manager are you using to find the problem?
E. Knowledge
F. Performance
G. Personal
H. Non of the above

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- Chapter 2 Organizational Influences

And Project Life Cycle

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Organizational Influences on Project Management

Organizational Cultures and Styles

Organizational culture is shaped by the common experiences of
members of the organization and most organizations have
developed unique cultures over time by practice and common
usage.

Organizational Communications

Organizational Structures
Organizational structures range from functional to projectized,
with a variety of matrix structures in between.

Organizational Process Assets

Enterprise Environmental Factors

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Influence of Organizational Structures on Projects

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Functional Organization - The classic functional organization
is a hierarchy where each employee has one clear superior.
Project Manager has no power.

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Weak matrix organizations maintain many of the
characteristics of a functional organization, and the role of the
project manager is more of a coordinator or expediter. Project
coordinators have power to make some decisions, have some
authority, and report to a higher-level manager.

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Chapter 2 Organizational Influences And Project Life Cycle

Balanced matrix organization recognizes the need for a project
manager, it does not provide the project manager with the full
authority over the project and project funding. (Project Manager
has equal power.)

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Strong matrix organizations have many of the characteristics
of the projectized organization, and have full-time project
managers with considerable authority and full-time project
administrative staff.

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

At the opposite end of the spectrum to the functional
organization is the projectized organization. In a projectized
organization, team members are often collocated. Most of the
organizations resources are involved in project work, and
project managers have a great deal of independence and
authority.

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Many organizations involve all these structures at various levels,
often referred to as a composite organization. For example,
even a fundamentally functional organization may create a
special project team to handle a critical project. Also, an
organization may manage most of its projects in a strong matrix,
but allow small projects to be managed by functional
departments.

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Organizational process assets are the plans, processes,
policies, procedures, and knowledge bases specific to and used
by the performing organization.
Enterprise environmental factors refer to conditions, not
under the control of the project team, that influence, constrain,
or direct the project. Enterprise environmental factors are
considered inputs to most planning processes, may enhance or
constrain project management options, and may have a positive
or negative influence on the outcome. (Internal and External)
Project governance - the alignment of the project with
stakeholders needs or objectivesis critical to the successful
management of stakeholder engagement and the achievement
of organizational objectives.
A sponsor is the person or group who provides resources and
support for the project and is accountable for enabling success.
The sponsor may be external or internal to the project
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September 2016
managers organization. From initial conception through project

Chapter 2 Organizational Influences And Project Life Cycle

A stakeholder is an individual, group, or organization who may
affect, be affected by, or perceive itself to be affected by a
decision, activity, or outcome of a project. Stakeholders may be
actively involved in the project or have interests that may be
positively or negatively affected by the performance or
completion of the project.

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September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Since projects are temporary in nature, the success of the
project should be measured in terms of completing the project
within the constraints of scope, time, cost, quality, resources,
and risk as approved between the project managers and senior
management.
A project life cycle is the series of phases that a project passes
through from its initiation
A project may be divided into any number of phases. A project
phase is a collection of logically related project activities that
culminates in the completion of one or more deliverables. to its
closure. (PLAN-DO-CHECK cycle)

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Chapter 2 Organizational Influences And Project Life Cycle

Phase-to-Phase Relationships
Sequential relationship

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Overlapping relationship

September 2016

Chapter 2 Organizational Influences And Project Life Cycle

Predictive life cycles (also known as fully plan-driven) are
ones in which the project scope, and the time and cost required
to deliver that scope, are determined as early in the project life
cycle as practically possible.
Iterative and incremental life cycles are ones in which
project phases (also called iterations) intentionally repeat one or
more project activities as the project teams understanding of
the product increases. Iterations develop the product through a
series of repeated cycles, while increments successively add to
the functionality of the product. These life cycles develop the
product both iteratively and incrementally.
Adaptive life cycles (also known as change-driven or agile
methods) are intended to respond to high levels of change and
ongoing stakeholder involvement. Adaptive methods are also
iterative and incremental, but differ in that iterations are very
rapid (usually with a duration of 2 to 4 weeks) and are fixed in
time and cost. Adaptive projects generally perform several
ARKprocesses in each
September
2016 although early iterations may
iteration,

Chapter 2 Organizational Influences And Project Life Cycle

Q.
A.
B.
C.
D.

Which of the following is NOT a Project Constraint?

Quality
Scale
Time
Cost

Q. Which of the following is NOT an example of operational work?

E. Building a purchase order system for accounts payable.
F. Submitting weekly purchase orders through a purchase order
system
G. Deploying weekly anti-virus software updates
H. Yearly staff performance evaluations
Q. A project manager is having trouble securing programmers for her
project. Every time she asks the programming manager for
resources for her project, he says theyre all assigned to other work.
So she is constantly having to go over his head to overrule him.
Which type of organisation is she working for?
I. Functional
J. Weak Matrix
K. Strong Matrix September 2016
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Chapter 2 Organizational Influences And Project Life Cycle

Q.
A.
B.
C.
D.

Which of the following is NOT a Project Constraint?

Quality
Scale
Time
Cost

Q. Which of the following is NOT an example of operational work?

E. Building a purchase order system for accounts payable.
F. Submitting weekly purchase orders through a purchase order
system
G. Deploying weekly anti-virus software updates
H. Yearly staff performance evaluations
Q. A project manager is having trouble securing programmers for her
project. Every time she asks the programming manager for
resources for her project, he says theyre all assigned to other work.
So she is constantly having to go over his head to overrule him.
Which type of organization is she working for?
I. Functional
J. Weak Matrix
K. Strong MatrixSeptember 2016
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- Chapter 3 Project Management

Process

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September 2016

Chapter 3 Project Management Process

Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet the project
requirements. This application of knowledge requires the
effective management of the project management processes.
The PMBOK Guide describes only the project management
processes. Although product-oriented processes are outside the
scope of this document, they should not be ignored by the
project manager and project team. Project management
processes and product-oriented processes overlap and interact
throughout the life of a project.
The PMBOK Guide describes the nature of project
management processes in terms of the integration between the
processes, their interactions, and the purposes they serve.
Project management processes are grouped into five categories
known as Project Management Process Groups (or Process
Groups):
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Chapter 3 Project Management Process

Initiating Process Group.
Those processes performed to define a new project or a new
phase of an existing project by obtaining authorization to start
the project or phase.
Planning Process Group.
Those processes required to establish the scope of the project,
refine the objectives, and define the course of action required to
attain the objectives that the project was undertaken to achieve.
Executing Process Group.
Those processes performed to complete the work defined in the
project management plan to satisfy the project specifications.
Monitoring and Controlling Process Group.
Those processes required to track, review, and regulate the
progress and performance of the project; identify any areas in
which changes to the plan are required; and initiate the
corresponding changes.
Closing Process Group.
Those processes performed to finalize all activities across all
ARKProcess Groups to
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Chapter 3 Project Management Process

Common Project Management Process Interactions

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Chapter 3 Project Management Process

Throughout the life cycle of the project, a significant amount of
data and information is collected, analyzed, transformed, and
distributed in various formats to project team members and
other stakeholders. Project data are collected as a result of
various Executing processes and are shared within the project
team. The collected data are analyzed in context, and
aggregated and transformed to become project information
during various Controlling processes. The information may then
be communicated verbally or stored and distributed as reports in
various formats.
The project data are continuously collected and analyzed during
the dynamic context of the project execution. As a result, the
terms data and information are often used interchangeably in
practice. The indiscriminate use of these terms can lead to
confusion and misunderstandings by the various project
stakeholders. The following guidelines help minimize
miscommunication and help the project team use appropriate
terminology:
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Work performance
data

Chapter 3 Project Management Process

The 47 project management processes identified in the
PMBOK Guide are further grouped into ten separate
Knowledge Areas. A Knowledge Area represents a complete set
of concepts, terms, and activities that make up a professional
field, project management field, or area of specialization.
These ten Knowledge Areas are used on most projects most
of the time. Project teams should utilize these ten Knowledge
Areas and other Knowledge Areas, as appropriate, for their
specific project. The Knowledge Areas are:
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement
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Chapter 3 Project Management Process

Page No. 61

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Chapter 3 Project Management Process

Q. Youre a project manager in a weak matrix organization.
Which of the following is NOT true?
A. Your team members report to functional managers.
B. You are not directly in charge of resources.
C. Functional managers make decisions that can affect your
projects.
D. You have sole responsibility for the success or failure of a
project.
Q. A project manager is running a software project that is
supposed to be delivered in phase. She was planning on
dividing the resources into two separate teams to do the
work for two phases at the same time, but one of the her
senior developers suggested that she use an agile
methodology instead, and she agrees. Which of the following
BEST describes the relationship between her projects
phases?
E. Sequential relationship
Iterative relationship
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Chapter 3 Project Management Process

Q. Youre a project manager in a weak matrix organization.
Which of the following is NOT true?
A. Your team members report to functional managers.
B. You are not directly in charge of resources.
C. Functional managers make decisions that can affect your
projects.
D. You have sole responsibility for the success or failure
of a project.
Q. A project manager is running a software project that is
supposed to be delivered in phase. She was planning on
dividing the resources into two separate teams to do the
work for two phases at the same time, but one of the her
senior developers suggested that she use an agile
methodology instead, and she agrees. Which of the following
BEST describes the relationship between her projects
phases?
E. Sequential relationship
Iterative relationship
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- Chapter 4 Project Integration

Management

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Chapter 4 Project Integration Management

Before Initiating a Project

Need and Demand for the product or service

A feasibility study aims to objectively and rationally

uncover the strengths and weaknesses of an existing
business or proposed venture, opportunities and threats
present in the environment, the resources required to carry
through, and ultimately the prospects for success.[1][2] In its
simplest terms, the two criteria to judge feasibility are cost
required and value to be attained.

Project Selection Methods - Consider a scenario in which

the organization you are working for has been given access
to a number of projects. But due to constraints of resources,
the organization cannot take up all the projects at once.
Therefore, a decision has to be made as to which project
needs to be taken up that will provide maximum profit and
recognition.

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Generally, most
organizations
use the Benefits Measurement

Chapter 4 Project Integration Management

The Benefit Measurement Methods is a technique that is
used in selecting projects which are based on the present value
of estimated cash outflow and inflow. Cost benefits are
calculated and then compared to with other projects to make a
decision.

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Benefit/Cost Ratio
Cost/Benefit Ratio, as the name suggests, is the ratio between
the Present Value of Inflow or the cost invested in a project, to
the Present Value of Outflow which is the value of return from
the project. If the project is not a hindrance, then the project
that has a higher Benefit Cost Ratio is selected.
Economic Model
The EVA or Economic Value Added is the performance metric
that calculates the worth creation of the organization while
defining the return on capital. It is also defined as the net profit
after the deductions of taxes and the capital expenditure.
If there are a bunch of projects assigned to a project manager,
the project that has the higher Economic Value Added is the one
that will be selected. The EVA is always expressed in the
numerical value and not in percentage.
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Chapter 4 Project Integration Management

Scoring Model
The scoring model is a lot like an objective technique, where in
the project selection committee lists relevant criteria, weighs
them according to their importance and their priorities and then
add the weighted values. Once the scoring of these projects are
completed the one with the highest score is selected.
Payback Period
The Payback Period is the ratio of the total cash to the average
per period cash in. In simpler terms, it is the time necessary to
recover the cost invested in the project.
The Payback Period is one of the most basic project selection
methods. As the name suggests, the payback period takes into
consideration the payback period of an investment. It is the
time frame that is required for the return on an investment to
repay the original cost that was invested. The calculation for
payback is pretty simple. The project that has the shortest
Payback period is the most preferred method, since the original
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investment is regained faster.

Chapter 4 Project Integration Management

Net Present Value (NPV)
The Net Present Value is the different between the projects
current value of cash inflow and the current value of cash
outflow. The NPV must always be positive. While selecting a
project, the one with the higher NPV is a recommended option.
The advantage of considering the NPV over the Payback Period
is that it takes into consideration the future value of money.
Discounted Cash Flow
It is known to the world that the worth of an amount of money
today is not the same as it will be in the future. For example, the
worth of $20,000 will not be the same after 10 years than what
it is today, and will be much lower than the current value.
Thus, during calculations of cost investment and Return on
investment (ROI), one must consider the concept of discounted
cash flow.
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Chapter 4 Project Integration Management

Internal Rate Of Return (IRR)
The Internal Rate of Return is the interest rate at which the Net
present value is zero. This state is attained when the present
value of outflow is equal to the present value of inflow.
When using the IRR as the project selection criteria, it must not
be used exclusively to decide to decide among a number of
projects that need undertaking but instead only a single project
that must be invested in. This is because a project with a lower
IRR might have a higher NPV and, assuming there is no capital
constraint, the project with the higher NPV should be selected,
as this increases the shareholders wealth. While selecting a
project, the one with the higher IRR is chosen.
Opportunity Cost
The opportunity Cost is cost that is being given up while making
a choice of another project. During project selection, the project
that has the lower opportunity cost is selected.
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Chapter 4 Project Integration Management

Constrained Optimization Methods
The Constrained optimization Methods, also known as the
Mathematical model of Project Selection, is used for the larger
projects that require complex and comprehensive mathematical
calculations.
The techniques that are used in Constrained Optimization
Methods are:

These topics, however, are not discussed in detail in the PMP

certification. For the exam, all that is necessary to know is that
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this is the list of Mathematical Model techniques that are used in

Chapter 4 Project Integration Management

The Non-Financial Factors
There are non-financial gains that an organization must consider
and these factors are related to the overall organization goals.
The organizational strategy is a major factor in project selection
methods that will affect the organizations choice in the
selection of a project.
Customer service relationship is another aspect of organizational
goals. A large necessity in todays business world is to build an
effective and cordial relationship and environment with the
customers.
Other organizational factors may include: Political reasons,
Change of management, speculative purposes, shareholders
requests, etc.

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Chapter 4 Project Integration Management

Implementation Of The Methods That Are Chosen
The Project Selection Methods can be carried out in a number of
combinations. It is best for an organization to try different
methods, to be absolutely sure that the best decision is made
for the company, and consider a wide range of factors rather
than only concentrating on a few. Thus, every project will need
careful consideration.
Conclusion
Though time consuming, employing these methods are
extremely essential for an efficient business plan. The Selection
Techniques in Project Management help in selecting a project
that could provide a better return on investment as well as
recognition. There are various recorded methods to select a
project, but that is needed to be understood is that if it is a small
project that isnt very complex, then the Benefit Measurement
Model is used whereas if it is a complex and large project then
the Constrained optimization Method is used.
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Chapter 4 Project Integration Management

Project Integration Management includes the processes and
activities to identify, define, combine, unify, and coordinate the
various processes and project management activities within the
Project Management Process Groups.
1) Develop Project CharterThe 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.
2) Develop Project Management PlanThe process of

defining, preparing, and coordinating all subsidiary plans and

integrating them into a comprehensive project management
plan. The projects integrated baselines and subsidiary plans
may be included within the project management plan.
3) Direct and Manage Project WorkThe process of leading
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and performing the work defined in the project management

plan and implementing approved changes to achieve the
September 2016
projects objectives.

Chapter 4 Project Integration Management

4) Monitor and Control Project WorkThe process of
tracking, reviewing, and reporting project progress against
the performance objectives defined in the project
management plan.
5) Perform Integrated Change ControlThe 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.
6) Close Project or PhaseThe process of finalizing all

activities across all of the Project Management Process

Groups to formally complete the phase or project.

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Chapter 4 Project Integration Management

1) Develop Project Charter is 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.

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Facilitation Techniques: Brainstorming, conflict resolution,

problem solving, and meeting management are examples of
key techniques used by facilitators to help teams and
individuals accomplish
September 2016 project activities.

Chapter 4 Project Integration Management

Develop Project Charter Data Flow Diagram

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Chapter 4 Project Integration Management

2) 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.

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Chapter 4 Project Integration Management

The project management plan is the document that describes
how the project will be executed, monitored, and controlled. It
integrates and consolidates all of the subsidiary plans and
baselines from the planning processes.
Project baselines include, but are not limited to:

Scope baseline,

Schedule baseline and

Cost baseline.
Subsidiary plans include, but are
limited
to:
not
Human
resource
Scope management plan,
management plan,
Requirements management Communications
plan,
management plan,
Schedule management plan, Risk management plan,
Procurement management
plan and
Cost management plan,
Stakeholder management
plan.
Quality management plan,
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Process improvement plan,

Chapter 4 Project Integration Management

Develop Project Management
Plan Data Flow Diagram

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Chapter 4 Project Integration Management

3) 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
projects objectives. The key benefit of this process is that it
provides overall management of the project work.

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Chapter 4 Project Integration Management

4) 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.

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Analytical techniques are applied in project management

to forecast potential outcomes based on possible variations
of project or environmental variables and their relationships
September 2016
with other variables.

Chapter 4 Project Integration Management

5) 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. It reviews all
requests for changes or modifications to project documents,
deliverables, baselines, or the project management plan and
approves or rejects the changes. The key benefit of this
process is that it allows for documented changes within the
project to be considered in an integrated fashion while
reducing project risk, which often arises from changes made
without consideration to the overall project objectives or
plans.

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Chapter 4 Project Integration Management

6) 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, the
formal ending of project work, and the release of
organization resources to pursue new endeavors.

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Chapter 4 Project Integration Management

following is NOT true about the project charter?

charter defines the requirements that satisfy customer
charter defines the work authorization system.
charter make the business case that justifies the project.
charter includes the milestone schedule.

Q. The work authorization system:

I.
Ensures that every work package is performed at the right time and in
the proper sequence.
J.
Authorizes the project manager to spend money on work.
K. Is a set of processes and tools that aids project manager in effectively
guiding the project to completion
L. Is a formalized, September
written description
of how to carry out an activity.
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Chapter 4 Project Integration Management

Q. You are project manager on a software project. There are several

changes that need to be made, and you need to decide how to
apply project resources in order to implement them. What do you
do?
A. Decide the priority of the changes and announce them to the team.
B. You should call a team meeting and invite the stakeholders, so that
everyone can reach a consensus on the priority.
C. Deny the changes because they will delay the project.
D. Consult the Change Prioritization plan for guidance on prioritizing
new changes.
Q. You are the project manager on a network engineering project. Two
weeks ago, your team began executing the project. The work has
been going well, and you are now a day ahead of schedule. Two
stakeholders just approached you to tell you that they have an
important change that needs to be made. That change will put you
behind schedule. What do you do?
E. Implement the changes because youre ahead of schedule.
F. Refuse to make the change because the stakeholders did not take it
to the change control board.
G. Refuse to make the change until the stakeholders document it in a
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change request.

Chapter 4 Project Integration Management

Q. Youre on the project selection committee. Youre reviewing a document
that describes the strategic value of a potential project and its benefits
to the company. Whats this document called?
A. Project charter
B. Business case
C. Benefit measurement method
D. Contract
Q. Which of the following is NOT true about the project charter?
E. The project charter defines the requirements that satisfy customer
needs.
F. The project charter defines the work authorization system.
G. The project charter make the business case that justifies the project.
H. The project charter includes the milestone schedule.
Q. The work authorization system:
I. Ensures that every work package is performed at the right time
and in the proper sequence.
J.
Authorizes the project manager to spend money on work.
K. Is a set of processes and tools that aids project manager in effectively
guiding the project to completion
L. Is a formalized, September
written description
of how to carry out an activity.
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Chapter 4 Project Integration Management

Q. You are project manager on a software project. There are several

Q. You are the project manager on a network engineering project. Two

weeks ago, your team began executing the project. The work has
been going well, and you are now a day ahead of schedule. Two
stakeholders just approached you to tell you that they have an
important change that needs to be made. That change will put you
behind schedule. What do you do?
E. Implement the changes because youre ahead of schedule.
F. Refuse to make the change because the stakeholders did not take it
to the change control board.
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G. Refuse to make the change until the stakeholders document

- Chapter 5 Project Scope Management

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Chapter 5 Project Scope Management

Project Scope Management includes the processes required
to ensure that the project includes all the work required, and
only the work required, to complete the project successfully.
Managing the project scope is primarily concerned with defining
and controlling what is and is not included in the project.
In the project context, the term scope can refer to:
Product scope
The features and functions that characterize a product,
service, or result; and/or
Project scope
The work performed to deliver a product, service, or result
with the specified features and functions. The term project
scope is sometimes viewed as including product scope.

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Chapter 5 Project Scope Management

1) Plan Scope ManagementThe process of creating a scope
management plan that documents how the project scope will
be defined, validated, and controlled.
2) Collect RequirementsThe process of determining,

documenting, and managing stakeholder needs and

requirements to meet project objectives.
3) Define ScopeThe process of developing a detailed

description of the project and product.

4) Create WBSThe process of subdividing project

deliverables and project work into smaller, more manageable

components.
5) Validate ScopeThe process of formalizing acceptance of

the completed project deliverables.

6) Control ScopeThe process of monitoring the status of the

project and product scope and managing changes to the

scope baseline.
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Chapter 5 Project Scope Management

1) Plan Scope Management is the process of creating a
scope management plan that documents how the project
scope will be defined, validated, and controlled. The key
benefit of this process is that it provides guidance and
direction on how scope will be managed throughout the
project.

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Chapter 5 Project Scope Management

2) Collect Requirements is the process of determining,
documenting, and managing stakeholder needs and
requirements to meet project objectives. The key benefit of
this process is that it provides the basis for defining and
managing the project scope including product scope.

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Chapter 5 Project Scope Management

Group Creativity Techniques

Brainstorming

Nominal group technique

Idea/mind mapping

Affinity diagram

Delphi Technique

Multicriteria decision analysis

Group Decision-Making Techniques

Unanimity

Majority

Plurality

Dictatorship

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Chapter 5 Project Scope Management

Example of a Requirements Traceability Matrix

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Chapter 5 Project Scope Management

3) Define Scope is the process of developing a detailed
description of the project and product. The key benefit of this
process is that it describes the product, service, or result
boundaries by defining which of the requirements collected
will be included in and excluded from the project scope.

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Product analysis includes techniques such as product

breakdown, systems analysis, requirements analysis,
systems engineering, value engineering, and value analysis.
Alternatives generation is a technique used to develop as
many potential options as possible in order to identify
different approaches to execute and perform the work of the
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project.

Chapter 5 Project Scope Management

Elements of the Project Charter and Project Scope Statement

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Chapter 5 Project Scope Management

4) 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 structured vision of what has to be delivered.

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Chapter 5 Project Scope Management

Sample WBS Decomposed Down Through Work Packages

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Chapter 5 Project Scope Management

Sample WBS Organized by Phase

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Chapter 5 Project Scope Management

Sample WBS with Major Deliverables

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Chapter 5 Project Scope Management

The scope baseline is the approved version of a scope
statement, work breakdown structure (WBS), and its associated
WBS dictionary, that can be changed only through formal
change control procedures and is used as a basis for
comparison.

The project scope statement includes the description of

the project scope, major deliverables, assumptions, and
constraints.

The WBS is a hierarchical decomposition of the total scope

of work to be carried out by the project team to accomplish
the project objectives and create the required deliverables.

The WBS dictionary is a document that provides detailed

deliverable, activity, and scheduling information about each
component in the WBS. The WBS dictionary is a document
that supports the WBS.

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Chapter 5 Project Scope Management

The work package is the work defined at the lowest level of the
WBS for which cost and duration can be estimated and
managed.
Code of Accounts are numbering systems used to uniquely
identify component of the WBS.
A control account is a management control point where scope,
budget, actual cost, and schedule are integrated and compared
to the earned value for performance measurement. Control
accounts are placed at selected management points in the WBS.
Planning Package is a WBS component below the control
account with known work content but without detailed schedule
activities.
Rolling Wave Planning / Progressive Elaboration
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Chapter 5 Project Scope Management

5) Validate Scope is the process of formalizing acceptance of
the completed project deliverables. The key benefit of this
process is that it brings objectivity to the acceptance process
and increases the chance of final product, service, or result
acceptance by validating each deliverable.

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Chapter 5 Project Scope Management

Direct & Manage Work

(Deliverables)
Control Quality
(Verified Deliverables)
Validate Scope
(Accepted Deliverables)

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Chapter 5 Project Scope Management

6) Control Scope is the process of monitoring the status of the
project and product scope and managing changes to the
scope baseline. The key benefit of this process is that it
allows the scope baseline to be maintained throughout the
project.

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Variance analysis is a technique for determining the cause

and degree of difference between the baseline and actual
performance. Important aspects of project scope control
include determining the cause and degree of variance
relative to the scope baseline and deciding whether
2016 action is required.
corrective or September
preventive

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Chapter 5 Project Scope Management

The following information from the project management plan
is used to control scope:

The scope baseline is compared to actual results to

determine if a change, corrective action, or preventive action
is necessary.

Sections from the scope management plan describe how

the project scope will be monitored and controlled.

The change management plan defines the process for

managing change on the project.

The configuration management plan defines those items

that are configurable, those items that require formal change
control, and the process for controlling changes to such
items.

Requirements management plan is a component of the

project management plan and describes how the project
requirementsSeptember
will be2016
analyzed, documented, and managed.

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Q. You have just been put in charge of a project that is already
executing. While reviewing the project documents you discover that
there is no WBS. You check the Scope Management Plan and
discover that there should be one for this project. What is the BEST
thing for you to do:
A. Immediately alert the sponsor and make sure the project work
doesnt stop.
B. Stop project work and create the WBS, and dont let work continue
until its created.
C. Make sure you closely manage communications to ensure the team
doesnt miss any undocumented work.
D. Mark it down in the lessons learned so it doesnt happen on future
projects.
Q. Youre the project manager on a software project. Your team has only
completed half of the work when the sponsor informs you that the
project has been terminated. What is the BEST action for you to
take?
E. Verify the deliverables produced by the team against the scope, and
document any place they do not match.
F. Call a team meeting
to figure out how to spend the rest of the
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110
budget.

Chapter 5 Project Scope Management

Q. The project manager for a design is using the Define Scope process.
Which BEST describes this?
A. Creating a document that lists all of the features of the product.
B. Creating a plan for managing changes to the baseline.
C. Creating a document that describes all of the work the team does to
make the deliverables.
D. Creating a graphical representation of how the phases or
deliverables decompose into work packages.
Q. You are the project manager for a construction project. You have
completed project initiation activities, and you are now creating a
document that describes processes to document the scope,
decompose deliverables into work packages, verify that all work is
complete, and manage changes to the baseline. What process are
you performing?
E. Develop Project Management plan
F. Define scope
G. Create WBS
H. Develop Project Charter
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Chapter 5 Project Scope Management

Q.
A.
B.
C.
D.

Which of the following in NOT an input to Control Scope?

WBS dictionary
Approved change requests
Requested changes
Project scope documents

Q. You are the project manager for a software project. One of the teams
discovers that if they deviate from the plan, they can actually skip
one of the deliverables because its no longer necessary. They do
the calculations, and realize that they can save the customer 10%
of the cost of the project without compromising the features in the
product. They take this approach, and inform you the following
week what they did during the status meeting. What is the BEST
way to describe this situation?
E. The project team has taken initiative and saved the customer
money.
F. A dispute is resolved in favor of the customer.
G. The team informed the project manager of the change, but they
should have informed the customer, too.
H. The team did not follow the Control Scope process.
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Chapter 5 Project Scope Management

Q. You have just been put in charge of a project that is already
executing. While reviewing the project documents you discover that
there is no WBS. You check the Scope Management Plan and
discover that there should be one for this project. What is the BEST
thing for you to do:
A. Immediately alert the sponsor and make sure the project work
doesnt stop.
B. Stop project work and create the WBS, and dont let work
continue until its created.
C. Make sure you closely manage communications to ensure the team
doesnt miss any undocumented work.
D. Mark it down in the lessons learned so it doesnt happen on future
projects.
Q. Youre the project manager on a software project. Your team has only
completed half of the work when the sponsor informs you that the
project has been terminated. What is the BEST action for you to
take?
E. Verify the deliverables produced by the team against the
scope, and document any place they do not match.
F. Call a team meeting
to figure out how to spend the rest of the
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budget.

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Chapter 5 Project Scope Management

Q. The project manager for a design is using the Define Scope process.
Which BEST describes this?
A. Creating a document that lists all of the features of the product.
B. Creating a plan for managing changes to the baseline.
C. Creating a document that describes all of the work the team
does to make the deliverables.
D. Creating a graphical representation of how the phases or
deliverables decompose into work packages.
Q. You are the project manager for a construction project. You have
completed project initiation activities, and you are now creating a
document that describes processes to document the scope,
decompose deliverables into work packages, verify that all work is
complete, and manage changes to the baseline. What process are
you performing?
E. Develop Project Management plan
F. Define scope
G. Create WBS
H. Develop Project Charter
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Chapter 5 Project Scope Management

Q.
A.
B.
C.
D.

Which of the following in NOT an input to Control Scope?

WBS dictionary
Approved change requests
Requested changes
Project scope documents

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On some projects, especially those of smaller scope, defining
activities, sequencing activities, estimating activity resources,
estimating activity durations, and developing the schedule
model are so tightly linked that they are viewed as a single
process that can be performed by a person over a relatively
short period of time. These processes are presented here as
distinct elements because the tools and techniques for each
process are different.
The Project Time Management processes and their
associated tools and techniques are documented in the schedule
management plan. The schedule management plan is a
subsidiary plan of, and integrated with, the project management
plan through the Develop Project Management Plan process.
Some of the better known scheduling methods include critical
path method (CPM) and critical chain method (CCM).

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3)
4)

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Plan Schedule ManagementThe process of establishing
the policies, procedures, and documentation for planning,
developing, managing, executing, and controlling the project
schedule.
Define ActivitiesThe process of identifying and
documenting the specific actions to be performed to produce
the project deliverables.
Sequence ActivitiesThe process of identifying and
documenting relationships among the project activities.
Estimate Activity ResourcesThe process of estimating
the type and quantities of material, human resources,
equipment, or supplies required to perform each activity.
Estimate Activity DurationsThe process of estimating
the number of work periods needed to complete individual
activities with estimated resources.
Develop ScheduleThe process of analyzing activity
sequences, durations, resource requirements, and schedule
constraints to create the project schedule model.
Control ScheduleThe process of monitoring the status of
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1) Plan Schedule Management is the process of establishing
the policies, procedures, and documentation for planning,
developing, managing, executing, and controlling the project
schedule. The key benefit of this process is that it provides
guidance and direction on how the project schedule will be
managed throughout the project.

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2) 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 into activities that provide a basis
for estimating, scheduling, executing, monitoring, and
controlling the project work.

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3) 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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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. This is the method used by
most project management software packages.
PDM includes four types of dependencies or logical relationships.
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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Finish-to-start (FS),
Finish-to-finish (FF),
Start-to-start (SS) and
Start-to-finish (SF).
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In PDM, finish-to-start is the most commonly used type of
precedence relationship. The start-to-finish relationship is very
rarely used but is included to present a complete list of the PDM
relationship types.

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Dependency Determination

Mandatory dependencies,

Discretionary dependencies,

External dependencies and

Internal dependencies.
Lead and Lags Slack (Total Slack), Float (Total Float), Free
Float

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A project schedule network diagram is a graphical
representation of the logical relationships, also referred to as
dependencies, among the project schedule activities.

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4) Estimate Activity Resources is the process of estimating
the type and quantities of material, human resources,
equipment, or supplies required to perform each activity. The
key benefit of this process is that it identifies the type,
quantity, and characteristics of resources required to
complete the activity which allows more accurate cost and
duration estimates.

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5) 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 amount of time each activity
will take to complete, which is a major input into the Develop
Schedule process.

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Analogous estimating is a technique for estimating the
duration or cost of an activity or a project using historical data
from a similar activity or project. Analogous estimating uses
parameters from a previous, similar project, such as duration,
budget, size, weight, and complexity, as the basis for estimating
the same parameter or measure for a future project. It is a gross
value estimating approach, sometimes adjusted for known
differences in project complexity. Top-down approach.
Parametric estimating is an estimating technique in which an
algorithm is used to calculate cost or duration based on
historical data and project parameters. Parametric estimating
uses a statistical relationship between historical data and other
variables to calculate an estimate for activity parameters, such
as cost, budget, and duration.
Three-Point Estimating
The accuracy of single-point activity duration estimates may be
improved by considering estimation uncertainty and risk. This
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with the program evaluation and review

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Most likely (tM). This estimate is based on the duration of
the activity, given the resources likely to be assigned, their
productivity, realistic expectations of availability for the
activity, dependencies on other participants, and
interruptions.
Optimistic (tO). The activity duration based on analysis of
the best-case scenario for the activity.
Pessimistic (tP). The activity duration based on analysis of
the worst-case scenario for the activity.

Expected Duration (tE)

Triangular Distribution. tE = (tO + tM + tP) / 3

Beta Distribution (the traditional PERT technique). tE = (tO +

4tM + tP) / 6

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Activity Standard Deviation = STD = ( P O) / 6

Activity Variance = [STD]2 = [ (P O) / 6 ] 2
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6) 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,
durations, resources, resource availabilities, and logical
relationships into the scheduling tool, it generates a schedule
model with planned dates for completing project activities.

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Example of Critical Path Method

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Example of Critical Chain Method

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Resource Optimization Techniques
Resource Leveling
A technique in which start and finish dates are adjusted based
on resource constraints with the goal of balancing demand for
resources with the available supply. Resource leveling can be
used when shared or critically required resources are only
available at certain times, or in limited quantities, or overallocated. Resource leveling can often cause the original critical
path to change, usually to increase.
Resource Smoothing
A technique that adjusts the activities of a schedule model such
that the requirements for resources on the project do not exceed
certain predefined resource limits. In resource smoothing, as
opposed to resource leveling, the projects critical path is not
changed and the completion date may not be delayed. In other
words, activities may only be delayed within their free and total
float. Thus resource smoothing may not be able to optimize all
resources.

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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, but are
not limited to:
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 works only for activities on the critical
path where additional resources will shorten the activitys
duration. Crashing does not always produce a viable alternative
and may result in increased risk and/or 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. An example is
constructing the foundation for a building before completing all
of the architectural drawings. Fast tracking may result in rework
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7) 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 and thus minimize risk.

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Performance Reviews

Trend analysis,

Critical path method,

Critical chain method and

Earned value management.

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Q. Youre managing a project when your client tells you that an external
problem happened, and now you have to meet an earlier deadline.
Your supervisor heard that in a situation like this, you can use
schedule compression by either crashing or fast-tracking the
schedule, but hes not sure which is which. What do you tell him?
A. Crashing the project adds risk, while fast-tracking adds cost.
B. When you crash a project, it always shortens the total duration of
the project.
C. Crashing the project adds cost, while fast-tracking adds risk.
D. When you fast-track a project, it always shortens the total duration
of the project.
Q.
E.
F.
G.
H.

Which of the following tools is used for adding buffers to a schedule?

Three-point estimates
Critical chain method
Expert judgment
Critical path analysis

Q. Slack is a synonym for:

I. Float
J. Lag

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Q. Youre managing a project to build a project management
information system. You work with the team to come up with an
estimate of 27 weeks. In the best case, this could be shortened by
two weeks because you can reuse a previous component. But
theres a risk that a vendor delay could cause the project to be
delayed by five weeks. Use PERT to calculate a three-point estimate
for this project.
A. 25.83 weeks
B. 26 weeks
C. 27.5 weeks
D. 28.3 weeks
Q. Youre planning the schedule for a highway construction project, but
the final date you came up with will run the next budget year. The
state comes up with capital from a reserve fund, and now you can
increase the budget for your resources. Whats the BEST way to
compress the schedule?
E. Go back to your three-point estimates and use the most optimistic
ones.
F. Use the extra budget to increase your contingency reserve.
to use
expert judgment so your estimates are
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Q. Youre managing a project when your client tells you that an external
problem happened, and now you have to meet an earlier deadline.
Your supervisor heard that in a situation like this, you can use
schedule compression by either crashing or fast-tracking the
schedule, but hes not sure which is which. What do you tell him?
A. Crashing the project adds risk, while fast-tracking adds cost.
B. When you crash a project, it always shortens the total duration of
the project.
C. Crashing the project adds cost, while fast-tracking adds
risk.
D. When you fast-track a project, it always shortens the total duration
of the project.
Q.
E.
F.
G.
H.

Which of the following tools is used for adding buffers to a schedule?

Three-point estimates
Critical chain method
Expert judgment
Critical path analysis

Q. Slack is a synonym for:

I. Float
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Chapter 7 Project Cost Management

Project Cost Management includes the processes involved in
planning, estimating, budgeting, financing, funding, managing,
and controlling costs so that the project can be completed within
the approved budget.
1) Plan Cost ManagementThe process that establishes the

policies, procedures, and documentation for planning,

managing, expending, and controlling project costs.
2) Estimate CostsThe process of developing an

approximation of the monetary resources needed to

complete project activities.
3) Determine BudgetThe process of aggregating the

estimated costs of individual activities or work packages to

establish an authorized cost baseline.
4) Control CostsThe process of monitoring the status of the

project to update the project costs and managing changes to

the cost baseline.
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1) 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 costs will be managed
throughout the project.

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2) 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 required to complete
project work.

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3) 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 which
project performance can be monitored and controlled.

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Cost estimates are aggregated by work packages in

accordance with the WBS. The work package cost estimates
are then aggregated for the higher component levels of the
WBS (such as control accounts) and ultimately for the entire
project.
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Contingency reserve VS Management reserve
Contingency reserve is the amount of duration or the cost
added based on the unknown but potential identified risk. And
this will be added usually by the Project Manager after the
estimation and becomes Cost or time baseline.
Management Reserve is the amount of duration or the cost
added based on the unknown risk and which are not visible. This
will be added by the Sponsor or the PMO office. To use this
reserve by the Project Manager it calls for approval from
sponsor/PMO. Contingency reserve is called known unknown
and Management reserve is called unknown.
The technique of using the Management Reserve and
Contingency reserve is called the Reserve Analysis.

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Management reserves are added to the cost baseline to produce
the project budget. As changes warranting the use of
management reserves arise, the change control process is used
to obtain approval to move the applicable management reserve
funds into the cost baseline.

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Cost Baseline, Expenditures, and Funding Requirements

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4) 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 recognize variance from the plan in
order to take corrective action and minimize risk.

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Earned value management (EVM) is a methodology that
combines scope, schedule, and resource measurements to
assess project performance and progress. It integrates the scope
baseline with the cost baseline, along with the schedule
baseline, to form the performance measurement baseline, which
helps the project management team assess and measure project
performance and progress. The principles of EVM can be applied
to all projects in any industry.
Budget at Completion (BAC) is the sum of all budgets
established for the work to be performed. It indicates how much
was originally planned for the project to cost.
Planned value (PV) is the authorized budget assigned to the
scheduled work and does not include management reserve.
Equation: PV = Planned % complete * BAC
Earned value (EV) is a measure of work performed expressed
in terms of the budget authorized for that work.
Equation: : Actual % complete * BAC
Actual cost (AC) is the realized cost incurred for the work
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activity
during a specific time period.

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Schedule variance (SV) is a measure of schedule performance
expressed as the difference between the earned value and the
planned value.
Equation: SV = EV PV
Cost variance (CV) is the amount of budget deficit or surplus
at a given point in time, expressed as the difference between
earned value and the actual cost.
Equation: CV = EV AC
The schedule performance index (SPI) is a measure of
schedule efficiency expressed as the ratio of earned value to
planned value.
Equation: SPI = EV/PV
The cost performance index (CPI) is a measure of the cost
efficiency of budgeted resources, expressed as a ratio of earned
value to actual cost.
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Equation: CPISeptember
= EV/AC

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Estimate at completion (EAC) is the expected total cost of
completing all work. It projects the total cost at completion
based on project performance up to a point in time.
The most common EAC forecasting approach is a manual,
bottom-up summation.
Equation: EAC = AC + Bottom-up ETC
While EVM data quickly provide many statistical EACs, only three
of the more common methods are described as follows:

EAC forecast for ETC work performed at the budgeted rate.

Equation: EAC = AC + (BAC EV)

EAC forecast for ETC work performed at the present CPI.

Equation: EAC = BAC / CPI

EAC forecast for ETC work considering both SPI and CPI
factors.
Equation: EAC = AC + [(BAC EV) / (CPI SPI)]
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Estimate To Complete (ETC) is the expected cost to finish all
the remaining work. It projects how much more will be spend on
the project, based on past performance.

ETC = EAC - AC

ETC = Re-estimate the remaining work from the bottom up.

Variance at Completion (VAC) is the projection of the amount
of budget deficit or surplus. It is expressed as a difference
between budget at completion and the estimate at completion.
Equation: VAC = BAC - EAC
The to-complete performance index (TCPI) is a measure of
the cost performance that is required to be achieved with the
remaining resources in order to meet a specified management
goal, expressed as the ratio of the cost to finish the outstanding
work to the remaining budget.

The equation for the TCPI based on the BAC: (BAC EV) /
(BAC AC)
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The equationSeptember
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TCPI based on the EAC: (BAC EV) /

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Performance reviews compare cost performance over time,
schedule activities or work packages overrunning and under
running the budget, and estimated funds needed to complete
work in progress. If EVM is being used, the following information
is determined:

Variance analysis, as used in EVM, is the explanation (cause,

impact, and corrective actions) for cost (CV = EV AC),
schedule (SV = EV PV), and variance at completion (VAC =
BAC EAC) variances.

Trend analysis examines project performance over time to

determine if performance is improving or deteriorating.

Earned value performance compares the performance

measurement baseline to actual schedule and cost
performance.

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Q. You are working on a project with a PV of $56,733 and an SPI of 1.2.
Whats the earned value of your project?
A. $68,079.60
B. $47,277.50
C. $68,733
D. .72
Q. Your project has a BAC of $4,522 and is 13% complete. What is the
earned value (EV)?
E. $3,934.14
F. There is not enough information to answer.
G. $587.86
H. $4,522
Q. You are staring to write your project charter with your project
sponsor when the senior managers ask for a time and cost estimate
for the project. You have not yet gathered many of the project
details. What kind of estimate can you give?
I. Analogous estimate
J. Rough order of magnitude estimate
Parametric estimate
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Q. A project manager is working on a large construction project. His
plan says that the project should end up costing $1.5 million, but
hes concerned that hes not going to come in under budget. Hes
spent $950,000 of the budget so far, and he calculates that hes
57% done with the work, and he doesnt think he can improve his
CPI above 1.05. Which of the following BEST describes the current
state of the project?
A. The project is likely to come in under budget.
B. The project is likely to exceed its budget.
C. The project likely right to target.
D. There is no way to determine this information.
Q. Project A has a NPV of $75,000, with an internal rate of return of
1.5% and an initial investment of $15,000. Project B has a NPV of
$60,000 with a BCR of 2:[Link] C has a NPV of $80,000, which
includes an opportunity cost of $35,000. Based on these projects,
which is the BEST one to select:
E. Project A
F. Project B
G. Project C
information
to select a project.
ARKH. There is not enough
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Q. You are working on a project with a PV of $56,733 and an SPI of 1.2.
Whats the earned value of your project?
A. $68,079.60
B. $47,277.50
C. $68,733
D. 0.72
Q. Your project has a BAC of $4,522 and is 13% complete. What is the
earned value (EV)?
E. $3,934.14
F. There is not enough information to answer.
G. $587.86
H. $4,522
Q. You are staring to write your project charter with your project
sponsor when the senior managers ask for a time and cost estimate
for the project. You have not yet gathered many of the project
details. What kind of estimate can you give?
I. Analogous estimate
J. Rough order of magnitude estimate
Parametric estimate
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Chapter 8 Project Quality Management

Project Quality Management includes the processes and
activities of the performing organization that determine quality
policies, objectives, and responsibilities so that the project will
satisfy the needs for which it was undertaken.
1) Plan Quality ManagementThe process of identifying

quality requirements and/or standards for the project and its

deliverables and documenting how the project will
demonstrate compliance with quality requirements and/or
standards.
2) Perform Quality AssuranceThe process of auditing the

quality requirements and the results from quality control

measurements to ensure that appropriate quality standards
and operational definitions are used.
3) Control QualityThe process of monitoring and recording

results of executing the quality activities to assess

performance and recommend necessary changes.
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Quality as a delivered performance or result is the degree to
which a set of inherent characteristics fulfill requirements.
Grade as a design intent is a category assigned to deliverables
having the same functional use but different technical
characteristics.
Precision is a measure of exactness.
Accuracy is an assessment of correctness.
An illustration of this concept is the comparison of archery
targets. Arrows clustered tightly in one area of the target, even if
they are not clustered in the bulls-eye, are considered to have
high precision. Targets where the arrows are more spread out
but equidistant from the bulls-eye are considered to have the
same degree of accuracy.
Cost of quality includes all costs incurred over the life of the
product by investment in preventing nonconformance to
requirements, appraising the product or service for conformance
to requirements, and failing to meet requirements(rework).
Failure costs are often categorized into internal (found by the
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1) Plan Quality Management is the process of identifying
quality requirements and/or standards for the project and its
deliverables, and documenting how the project will
demonstrate compliance with relevant quality requirements
and/or standards. The key benefit of this process is that it
provides guidance and direction on how quality will be
managed and validated throughout the project.

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Seven Basic Quality Tools

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Cause and effect diagram:
It is popularly known as
Fishbone diagram (as it looks
like a fishbone) or sometimes
known as Ishikawas diagram.
It is frequently used to find the
root causes of the defects.
Whether the main issues are
from hardware or it is from the
software. Whether the problem
is from management or the
problem is from skill set of the
people. By analyzing these
you can get the root cause of
the defects, thats why it is
also known as root cause
analysis.

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Flowchart:
It shows how the systems or processes
flow from beginning to end and how
are they related to each other. Through
it you can assess a particular process
and analyze the potential quality
problems. It is an important tool to be
used in so many project management
activities.

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Checksheets:
They are used to organize facts in a manner that will facilitate
the effective collection of useful data about a potential quality
problem. They are especially useful for gathering attributes data
while performing inspections to identify defects. For example,
data about the frequencies or consequences of defects collected
in checksheets are often displayed using Pareto diagrams.

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Pareto Chart:
80% of problems are due
to 20% of the root causes.
It is like prioritizing the
defects. Search for the
main reason and try to
reduce the maximum
problems. As a project
manager you should know
by which factors you are
getting more problems and
document it and try to find
out a way to remove these
defects as by removing the
same defects you will be
able to reduce maximum
problems. It is based on
the Joseph Jurans 80/20
principle. Pareto
recommends that
this tool
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Histogram:
It is a graphical representation showing a visual impression of
the distribution of data. It displays data in the form of bars and
columns. It shows what problems are in your project.

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Control Chart:
It is not possible to standardize
the sizes, weights of the
deliverables. Instead you can
decide your upper limit and lower
limit of acceptance. That upper
and lower control limit is decided
by project manager and other
stakeholders. If the variables are
within the limit, the project will be
treated in control. There is a line
in the middle of the control chart
which is known as mean. It
represents the middle of the
range of an acceptable variation.
If seven variables are found in
one side of the mean, it is known
as rule of seven and the project
will be treated as out of control.
There is also upper
and lower
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Scatter Diagram:
It is like trying to trace the
relation between two variables.
Like due to one defect another
defect is created maintaining a
relationship. Apart from the
above-mentioned tools there
are some other tools available
that can be used as a quality
tool like statistical sampling. It
is frequently used when you are
working on a bulk volume
where time does not permit you
to cross check each and every
deliverables. To save money on
your project and time
consuming on your project, you
picked randomly few
deliverables and check the
quality of those deliverables.
If
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Benchmarking involves comparing actual or planned project
practices to those of comparable projects to identify best
practices, generate ideas for improvement, and provide a basis
for measuring performance.
Design of experiments (DOE) is a statistical method for
identifying which factors may influence specific variables of a
product or process under development or in production. DOE
may be used during the Plan Quality Management process to
determine the number and type of tests and their impact on cost
of quality.
Statistical sampling involves choosing part of a population of
interest for inspection (for example, selecting ten engineering
drawings at random from a list of seventy-five). Sample
frequency and sizes should be determined during the Plan
Quality Management process so the cost of quality will include
the number of tests, expected scrap, etc.
Additional Quality Planning Tools
This technique
is used to generate ideas.
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A Standard is a document established by consensus and
approved by a recognized body that provides, for common and
repeated use, rules, guidelines or characteristics for activities or
their results, aimed at achievement of the optimum degree of
order in a given context.
A Regulation is a government imposed requirement, which
specifies product, process or service characteristics, including
the applicable administrative provision, with which compliance is
mandatory. Building codes are an example of regulations.

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2) Perform Quality Assurance is the process of auditing the
quality requirements and the results from quality control
measurements to ensure that appropriate quality standards
and operational definitions are used. The key benefit of this
process is that it facilitates the improvement of quality
processes.

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Quality Management
and Control Tools
Affinity diagrams,
Process decision
program charts
(PDPC),
Interrelationship
digraphs,
Tree diagrams,
Prioritization
matrices,
Activity network
diagrams and
Matrix diagrams

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A quality audit is a structured, independent process to
determine if project activities comply with organizational and
project policies, processes, and procedures. The objectives of a
quality audit may include:

Identify all good and best practices being implemented;

Identify all nonconformity, gaps, and shortcomings;

Share good practices introduced or implemented in similar

projects in the organization and/or industry;

Proactively offer assistance in a positive manner to improve

implementation of processes to help the team raise
productivity; and

Highlight contributions of each audit in the lessons learned

repository of the organization.
Process analysis follows the steps outlined in the process
improvement plan to identify needed improvements. This
analysis also examines problems experienced, constraints
experienced, and non-value-added activities identified during
process operation.
Process analysis includes root cause analysis
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Quality Assurance begins very early and continues throughout
the life cycle of the project. Since this process uses some of the
outputs of plan quality process, it is not performed until after
Plan Quality is performed.
The perform quality control is a monitoring and controlling
process and it looks at specific results to determine if they
conform to the quality standards. This process involves both, the
project and product deliverables and it is done throughout the
project life cycle. This process is performed beginning with the
production of the first product deliverable and continues until all
the deliverables have been accepted.
Quality assurance is all about processes that are used for
preventing any defects and quality control are the
measurements we have in place to detect and repair any
remaining defects.

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3) Control Quality is the process of monitoring and recording
results of executing the quality activities to assess
performance and recommend necessary changes. The key
benefits of this process include: (1) identifying the causes of
poor process or product quality and recommending and/or
taking action to eliminate them; and (2) validating that
project deliverables and work meet the requirements
specified by key stakeholders necessary for final acceptance.

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Q.
A.
B.
C.
D.

Which of the following in NOT part of quality?

Fitness for use
Conformance to requirements
Value to the sponsor
Customer sartisfaction

Q. Which of the following BEST describes defect repair review?

E. Reviewing the repaired defect with the stakeholder to make sure its
acceptable.
F. Reviewing the repaired defect with the team to make sure they
document lessons learned.
G. Reviewing the repaired defect to make sure it was fixed properly.
H. Reviewing the repaired defect to make sure its within the control
limits.
Q. Which Control Quality tools is used to analyze processes by
visualizing them graphically?
I. Checklists
J. Flowcharts
Pareto charts September 2016
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Q. Youre managing a highway construction project. The foreman of
your building team alerts you to a problem that the inspection team
found with one of the pylons, so you use an Ishikawa diagram to try
to figure out the root cause of the defect. What process is being
performed?
A. Quality Management
B. Plan Quality Management
C. Control Quality
D. Perform Quality Assurance
Q. Which of the following is NOT part of the Quality Management plan?
E. Strategies for handling defects and other quality problems.
F. Guidance on how the project team will implement the companys
quality policy.
G. Metrics for measuring your projects quality.
H. A description of which deliverables dont have to be inspected.
Q.
I.
J.
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When is inspection performed?

At the beginning of the project.
Any time a project deliverable is produced.
Just before theSeptember
final product
is delivered.
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Chapter 8 Project Quality Management

Q.
A.
B.
C.
D.

Which of the following in NOT part of quality?

Fitness for use
Conformance to requirements
Value to the sponsor
Customer satisfaction

Q. Which of the following BEST describes defect repair review?

E. Reviewing the repaired defect with the stakeholder to make sure its
acceptable.
F. Reviewing the repaired defect with the team to make sure they
document lessons learned.
G. Reviewing the repaired defect to make sure it was fixed
properly.
H. Reviewing the repaired defect to make sure its within the control
limits.
Q. Which Control Quality tools is used to analyze processes by
visualizing them graphically?
I. Checklists
J. Flowcharts September 2016
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- Chapter 9 Project Human Resource

Management

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Chapter 9 Project Human Resource Management

Project Human Resource Management includes the processes
that organize, manage, and lead the project team.
1) Plan Human Resource ManagementThe process of

identifying and documenting project roles, responsibilities,

required skills, reporting relationships, and creating a staffing
management plan.
2) Acquire Project TeamThe process of confirming human

resource availability and obtaining the team necessary to

complete project activities.
3) Develop Project TeamThe process of improving

competencies, team member interaction, and overall team

environment to enhance project performance.
4) Manage Project TeamThe process of tracking team

member performance, providing feedback, resolving issues,

and managing changes to optimize project performance.
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1) Plan Human Resource Management is the process of
identifying and documenting project roles, responsibilities,
required skills, reporting relationships, and creating a staffing
management plan. The key benefit of this process is that it
establishes project roles and responsibilities, project
organization charts, and the staffing management plan
including the timetable for staff acquisition and release.

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Various formats exist to document team member roles and
responsibilities. Most of the formats fall into one of three types:
hierarchical, matrix, and text-oriented.

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One example of a RAM is a RACI (responsible, accountable,
consult, and
inform) chart.
A RACI chart is a useful tool to use when the team consists of
internal and external resources in order to ensure clear divisions
of roles and expectations.

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Human Resource Management Plan
1) Roles and responsibilities) Role,
) Authority,
) Responsibility and
) Competency.
2) Project organization charts
3) Staffing management plan) Staff acquisition,
) Resource calendars,
) Staff release plan,
) Training needs,
) Recognition and rewards,
) Compliance and
) Safety.
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2) Acquire Project Team is the process of confirming human
resource availability and obtaining the team necessary to
complete project activities. The key benefit of this process
consists of outlining and guiding the team selection and
responsibility assignment to obtain a successful team.

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3) 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, enhanced people skills and competencies,
motivated employees, reduced staff turnover rates, and
improved overall project performance.

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One of the models used to describe team development is the
Tuckman ladder, which includes five stages of development
that teams may go through.
1. Forming. This phase is where the team meets and learns
about the project and their formal roles and responsibilities.
Team members tend to be independent and not as open in
this phase.
2. Storming. During this phase, the team begins to address
the project work, technical decisions, and the project
management approach. If team members are not
collaborative and open to differing ideas and perspectives,
the environment can become counterproductive.
3. Norming. In the norming phase, team members begin to
work together and adjust their work habits and behaviors to
support the team. The team learns to trust each other.
4. Performing. Teams that reach the performing stage function
as a well-organized unit. They are interdependent and work
through issues smoothly and effectively.
5. Adjourning. In the adjourning phase, the team completes
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Chapter 9 Project Human Resource Management

4) Manage Project Team is the process of tracking team
member performance, providing feedback, resolving issues,
and managing team changes to optimize project
performance. The key benefit of this process is that it
influences team behavior, manages conflict, resolves issues,
and appraises team member performance.

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The success of project managers in managing their project
teams often depends a great deal on their ability to resolve
conflict. There are five general techniques for resolving conflict.
As each one has its place and use, these are not given in any
particular order:
1) Withdraw/Avoid. Retreating from an actual or potential
conflict situation; postponing the issue to be better prepared
or to be resolved by others.
2) Smooth/Accommodate. Emphasizing areas of agreement
rather than areas of difference; conceding ones position to
the needs of others to maintain harmony and relationships.
3) Compromise/Reconcile. Searching for solutions that bring
some degree of satisfaction to all parties in order to
temporarily or partially resolve the conflict.
4) Force/Direct. Pushing ones viewpoint at the expense of
others; offering only win-lose solutions, usually enforced
through a power position to resolve an emergency.
5) Collaborate/Problem Solve. Incorporating multiple
viewpoints and insights from differing perspectives; requires
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a cooperativeSeptember
attitude
and open dialogue that typically leads

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Power might be physical, political or social. Power can definitely
not be called a force which gets you what you want. Power
basically emanates from position or authority which can
influence people both positively and negatively.
For simplicity and understanding purposes power is usually
classified into following categories:
1) Coercive Power- This kind of power involves the usage of

threat to make people do what one desires. In the

organizational set up, it translates into threatening someone
with transfer, firing, demotions etc.
2) Reward Power- As the name suggests, this type of power

uses rewards, perks, new projects or training opportunities,

better roles and monetary benefits to influence people.
3) Legitimate Power- This power emanates from an official
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position held September

by someone,
be it in an organization,
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4) Expert Power- This is a personal kind of power which owes
its genesis to the skills and expertise possessed by an
individual, which is of higher quality and not easily available.
Since, it is very person specific and skills can be enhanced
with time; it has more credibility and respect.
5) Referent Power- This is a power wielded by celebrities and

film stars as they have huge following amongst masses who

like them, identify with them and follow them.
A very hierarchy and power driven organization finds it difficult
to accommodate new and innovative ideas, any change is
vehemently refused, egos clash and lesser opportunities are
made available for the high performers, thus delaying
organizational growth. On the other hand, in an organization
which is flat in structure, people are encouraged to innovate and
explore, thus bringing in new concepts and ideas to accelerate
organizational growth and expansion.
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Maslow's theory suggests that the
most basic level of needs must be met
before the individual will strongly
desire (or focus motivation upon) the
secondary or higher level needs.

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The Herzberg's Motivation-Hygiene theory (dual-factor
theory) states that there are certain factors in the workplace
that cause job satisfaction, while a separate set of factors cause
dissatisfaction.
Two-factor theory distinguishes between:
1) Motivators (e.g. challenging work, recognition for one's

achievement, responsibility, opportunity to do something

meaningful, involvement in decision making, sense of
importance to an organization) that give positive satisfaction,
arising from intrinsic conditions of the job itself, such as
recognition, achievement, or personal growth.
2) Hygiene factors (e.g. status, job security, salary, fringe

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benefits, work conditions, good pay, paid insurance,

vacations) that do not give positive satisfaction or lead to
higher motivation, though dissatisfaction results from their
absence. The term "hygiene" is used in the sense that these
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Douglas McGregor's - 'Theory X' and 'Theory Y'

Theory X is based on pessimistic assumptions of the

average worker. This management style supposes that the
average employee has little to no ambition, shies away from
work or responsibilities, and is individual-goal oriented.

"Theory Y is almost in complete contrast to that of Theory

X". Theory Y managers make assumptions that people in the
work force are internally motivated, enjoy their labor in the
company, and work to better themselves without a direct
"reward" in return.
Dr. William Ouchi's - 'Theory Z'

Theory Z is focused on increasing employee loyalty to the

company by providing a job for life with a strong focus on the
well-being of the employee, both on and off the job. Theory Z
management is supposed to promote stable employment,
high productivity, and high employee morale and
satisfaction.
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Victor Vroom - 'Expectancy theory'
Expectancy is the belief that one's effort (E) will result in
attainment of desired performance (P) goals.

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Self efficacy- the persons belief about their ability to

successfully perform a particular behavior. The individual will
assess whether they have the required skills or knowledge
desired to achieve their goals.
Goal difficulty- when goals are set too high or performance
expectations that are made too difficult. This will most likely
lead to low expectancy. This occurs when the individual
believes that their desired results are unattainable.
Perceived control - Individuals must believe that they have
some degree of control over the expected outcome. When
individuals perceive that the outcome is beyond their ability
to influence, expectancy, and thus motivation, is low.

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David McClelland - 'Achievement Theroy'
He say that, regardless of our gender, culture, or age, we all
have three motivating drivers, and one of these will be our
dominant motivating driver. This dominant motivator is largely
dependent
Dominant on our culture and life experiences.
Motivator

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Characteristics of This Person

Achievement

Has a strong need to set and accomplish challenging

goals.
Takes calculated risks to accomplish their goals.
Likes to receive regular feedback on their progress
and achievements.
Often likes to work alone.

Affiliation

Wants to belong to the group.

Wants to be liked, and will often go along with
whatever the rest of the group wants to do.
Favors collaboration over competition.
Doesn't like high risk or uncertainty.

Power

Wants to control and influence others.

Likes to win arguments.
Enjoys competition and winning.
Enjoys status
and recognition.
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Edward Thorndike - 'Halo Effect'
The halo effect is a cognitive bias in which an observer's overall
impression of a person, company, brand, or product influences
the observer's feelings and thoughts about that entity's
character or properties. It was named in reference to a person
being perceived as having a halo.

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Q. Two of your team members are having a disagreement over which
technical solution to use. Whats the first thing that you should do in
this situation?
A. Consult the technical documents.
B. Tell the team members to work out the problem themselves.
C. Ask the team members to write up a change request.
D. Meet with the team members and figure out whats causing the
disagreement.
Q. You are working in a matrix organization. You dont have legitimate power
over your team. Why?
E. They dont report to you.
F. They dont trust you.
G. They dont know whether or not they will succeed.
H. You havent set up a good bonus system.
Q. Tina is a project manager who micromanages her team. She reviews
every document they produce and watches when they come and go
from the office. Which kind of manager is she?
I.
Theory X
J.
Theory Y
K. Theory Z

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Q. Which of the following is NOT one of the top sources of conflict on projects?
A. Resources
B. Technical opinions
C. Salaries
D. Priorities
Q. Youve just completed your resource histogram. What process are you in?
E. Acquire Project Team
F. Develop Project Team
G. Plan Human Resources Management
H. Manage Project Team
Q. Your client comes to you with a serious problem in one of the deliverables that
will cause the final product to be acceptable. Your team members look at his
complaint and feel that its not justifiable, and that the product really does
meet its requirements. Whats the first thing that you do?
I.
Confront the situation by making the change that needs to be made in order to
satisfy the client.
J.
Explain to the client that the solution really is acceptable.
K. Work with the client and team members to fully understand the problem
before making a decision.
L. Write up a change request and send it to the change control board.

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Chapter 9 Project Human Resource Management

Q. Which of the following is NOT one of the top sources of conflict on projects?
A. Resources
B. Technical opinions
C. Salaries
D. Priorities
Q. Youve just completed your resource histogram. What process are you in?
E. Acquire Project Team
F. Develop Project Team
G. Plan Human Resources Management
H. Manage Project Team
Q. Your client comes to you with a serious problem in one of the deliverables that
will cause the final product to be acceptable. Your team members look at his
complaint and feel that its not justifiable, and that the product really does
meet its requirements. Whats the first thing that you do?
I.
Confront the situation by making the change that needs to be made in order
to satisfy the client.
J.
Explain to the client that the solution really is acceptable.
K. Work with the client and team members to fully understand the
problem before making a decision.
L. Write up a change request and send it to the change control board.

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- Chapter 10 Project Communications

Management

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Chapter 10 Project Communications Management

Project Communications Management includes the
processes that are required to ensure timely and appropriate
planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and the ultimate disposition
of project information.
1) Plan Communications ManagementThe process of

developing an appropriate approach and plan for project

communications based on stakeholders information needs
and requirements, and available organizational assets.
2) Manage CommunicationsThe process of creating,

collecting, distributing, storing, retrieving and the ultimate

disposition of project information in accordance with the
communications management plan.
3) Control CommunicationsThe process of monitoring and
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controlling communications throughout the entire project life

cycle to ensure the information needs of the project
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1) Plan Communications Management is the process of
developing an appropriate approach and plan for project
communications based on stakeholders information needs and
requirements, and available organizational assets. The key
benefit of this process is that it identifies and documents the
approach to communicate most effectively and efficiently with
stakeholders.

The total number of potential communication channels is n(n

1)/2, where n represents the number of stakeholders.
For example, a project with 10 stakeholders has 10(10 1)/2 = 45
potential communication channels. As a result, a key component of
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planning the projects
actual

Chapter 10 Project Communications Management

The components of the basic communication model need to
be considered when project communications are discussed. As
part of the communications process, the sender is responsible
for the transmission of the message, ensuring the information
being communicated is clear and complete, and confirming the
communication is correctly understood. The receiver is
responsible for ensuring that the information is received in its
entirety, understood correctly, and acknowledged or responded
to appropriately. Any noise introduced along the way may
compromise the original meaning of the message.

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Communication Methods
1) Interactive communication. Between two or more parties

performing a multidirectional exchange of information. It is

the most efficient way to ensure a common understanding
by all participants on specified topics, and includes meetings,
phone calls, instant messaging, video conferencing, etc.
2) Push communication. Sent to specific recipients who need

to receive the information. This ensures that the information

is distributed but does not ensure that it actually reached or
was understood by the intended audience. Push
communications include letters, memos, reports, emails,
faxes, voice mails, blogs, press releases, etc.
3) Pull communication. Used for very large volumes of

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information, or for very large audiences, and requires the

recipients to access the communication content at their own
discretion. These methods include intranet sites, e-learning,
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2) 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 efficient and effective
communications flow between project stakeholders.

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3) Control Communications is the process of monitoring and
controlling communications throughout the entire project life
cycle to ensure the information needs of the project
stakeholders are met. The key benefit of this process is that
it ensures an optimal information flow among all
communication participants, at any moment in time.

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Q. Which of the following in NOT an input to the Plan Communication
Management process?
A. Enterprise environmental factors
B. Organizational process assets
C. Information gathering techniques
D. Project management plan
Q. You have five people working on your team, a sponsor within your
company, and a client, all of whom need to be kept informed of
your projects progress. How many lines of communication are
there?
E. 28
F. 21
G. 19
H. 31
Q. Which of the following is an example of noise?
I. An email thats sent to the wrong person.
J. A project manager who doesnt notice an important clause in a
contract.
Garbled text and
smudges
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Chapter 10 Project Communications Management

Q. Youre consulted your earned value calculations to find out the EAC
and ETC of your project. Which of the following is the BEST place to
put that information?
A. Work performance information
B. Forecasts
C. Quality control measurements
D. Lessons learned
Q. Youre managing a construction project. Suddenly the customer asks
for some major changes to the blueprints. You need to talk to him
about this. Whats the BEST form of communication to use?
E. Informal written
F. Informal verbal
G. Formal written
H. Formal verbal

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Q. Which of the following in NOT an input to the Plan Communication
Management process?
A. Enterprise environmental factors
B. Organizational process assets
C. Information gathering techniques
D. Project management plan
Q. You have five people working on your team, a sponsor within your
company, and a client, all of whom need to be kept informed of
your projects progress. How many lines of communication are
there?
E. 28
F. 21
G. 19
H. 31
Q. Which of the following is an example of noise?
I. An email thats sent to the wrong person.
J. A project manager who doesnt notice an important clause in a
contract.
and smudges
that make a fax of a photocopy
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- Chapter 11 Project Risk Management

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Chapter 11 Project Risk Management

Project Risk Management includes the processes of
conducting risk management planning, identification, analysis,
response planning, and controlling risk on a project.
.

1) Plan Risk ManagementThe process of defining how to

2)
3)

6)
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conduct risk management activities for a project.

Identify RisksThe process of determining which risks may
affect the project and documenting their characteristics.
Perform Qualitative Risk AnalysisThe process of
prioritizing risks for further analysis or action by assessing
and combining their probability of occurrence and impact.
Perform Quantitative Risk AnalysisThe process of
numerically analyzing the effect of identified risks on overall
project objectives.
Plan Risk ResponsesThe process of developing options
and actions to enhance opportunities and to reduce threats
to project objectives.
Control RisksThe process of implementing risk response
plans, tracking identified risks, monitoring residual risks,
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identifying new
risks,
and evaluating risk process

Chapter 11 Project Risk Management

Risk appetite, which is the degree of uncertainty an entity is
willing to take on in anticipation of a reward.
Risk tolerance, which is the degree, amount, or volume of risk
that an organization or individual will withstand.
Risk threshold, which 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.

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1) 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 visibility of risk management are commensurate with
both the risks and the importance of the project to the
organization. The risk management plan is vital to
communicate with and obtain agreement and support from
all stakeholders to ensure the risk management process is
supported and performed effectively over the project life
cycle.

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Risk Management Plan

Methodology,

Roles and responsibilities,

Budgeting,

Timing,

Risk categories,

Definitions of risk probability and impact,

Probability and impact matrix,

Revised stakeholders tolerances,

Reporting formats and

Tracking.

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2) 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 events.

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Information Gathering Techniques

Brainstorming,

Delphi technique,

Interviewing and

Root cause analysis.

Diagramming Techniques

Cause and effect diagrams,

System or process flow charts and

Influence diagrams.

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3) 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.
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.

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Probability and Impact Matrix

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Risk Impact Scale

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4) 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 information to support decision
making in order to reduce project uncertainty.

Data Gathering and Representation Techniques

) Interviewing and
) Probability distributions
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Quantitative Risk Analysis and Modeling Techniques
1) Sensitivity analysis
A tornado diagram is a special type of bar chart used in
sensitivity analysis for comparing the relative importance of the
variables. In a tornado diagram, the Y-axis contains each type of
uncertainty at base values, and the X-axis contains the spread or
correlation of the uncertainty to the studied output.

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2) Expected

monetary
value
analysis
Expected
monetary value
(EMV) analysis is
a statistical
concept
that calculates
the average
outcome when
the future
includes
scenarios that
may or may not
happen (i.e.,
analysis under
uncertainty).
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3) Modeling and simulation
A project simulation uses a model that translates the specified
detailed uncertainties of the project into their potential impact
on project objectives. Simulations are typically performed using
the Monte Carlo technique.

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5) 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 risks by their priority, inserting resources and
activities into the budget, schedule and project management
plan as needed.

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Pure risk is a category of risk in which loss is the only possible
outcome; there is no beneficial result. Pure risk is related to
events that are beyond the risk-taker's control and, therefore, a
person cannot consciously take on pure risk.
Business risk is the possibility that a company will have lower
than anticipated profits, or that it will experience a loss rather
than a profit. Business risk is influenced by numerous factors,
including sales volume, per-unit price, input costs, competition,
overall economic climate and government regulations.
Strategies for Negative Risks or Threats

Avoid. Risk avoidance is a risk response strategy whereby

the project team acts to eliminate the threat or protect the
project from its impact.

Transfer. Risk transference is a risk response strategy

whereby the project team shifts the impact of a threat to a
third party, together with ownership of the response.

Mitigate. Risk mitigation is a risk response strategy

whereby the project team acts to reduce the probability of
occurrence orSeptember
impact
of a risk.
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Strategies for Positive Risks or Opportunities

Exploit. The exploit strategy may be selected for risks with

positive impacts where the organization wishes to ensure
that the opportunity is realized.

Enhance. The enhance strategy is used to increase the

probability and/or the positive impacts of an opportunity.

Share. Sharing a positive risk involves allocating some or all

of the ownership of the opportunity to a third party who is
best able to capture the opportunity for the benefit of the
project.

Accept. Accepting an opportunity is being willing to take

advantage of the opportunity if it arises, but not actively
pursuing it.

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Chapter 11 Project Risk Management

6) Control 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 the risk approach
throughout the project life cycle to continuously optimize risk
responses.

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Chapter 11 Project Risk Management

Q. Youre managing a construction project. Theres a 30% chance that
weather will cause a three-day costing $12,000. Theres also a 20%
chance that the price of your building materials will drop, which will
save $5,000. Whats the total EMV for both of these?
A. -$3,600
B. $1,000
C. -$2,600
D. $4,600
Q. Whats the difference between management reserves and
contingency reserves?
E. Management reserves are used to handle known unknowns, while
contingency reserves are used to handle unknown unknowns.
F. Management reserves are used to handle high-priority risks, while
contingency reserves are used to handle known unknowns.
G. Management reserves are used to handle high-priority risks, while
contingency reserves are used to handle low-priority risks.
H. Management reserves are used to handle low-priority risks, while
contingency reserves are used to handle high-priority risks.
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Chapter 11 Project Risk Management

Which of the following should NOT be in the risk register?

Watch lists of low-priority risks
Relative ranking of project risks
Root causes of each risks
Probability and impact matrix

Q. Which risk analysis tool is used to model your risks by running

simulations that calculate random outcome and probabilities?
I. Monte Carlo analysis
J. Sensitivity analysis
K. EMV analysis
L. Delphi techniques
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Chapter 11 Project Risk Management

Q. Youre managing a construction project. Theres a 30% chance that
weather will cause a three-day costing $12,000. Theres also a 20%
chance that the price of your building materials will drop, which will
save $5,000. Whats the total EMV for both of these?
A. -$3,600
B. $1,000
C. -$2,600
D. $4,600
Q. Whats the difference between management reserves and
contingency reserves?
E. Management reserves are used to handle known unknowns, while
contingency reserves are used to handle unknown unknowns.
F. Management reserves are used to handle high-priority risks,
while contingency reserves are used to handle known
unknowns.
G. Management reserves are used to handle high-priority risks, while
contingency reserves are used to handle low-priority risks.
H. Management reserves are used to handle low-priority risks, while
contingency reserves are used to handle high-priority risks.
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239

Chapter 11 Project Risk Management

Q. You are using an RBS to manage your risk categories. What process
are you performing?
A. Plan Risk Management
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Perform Quantitative Risk Analysis
Q. Which of the following should NOT be in the risk register?
E. Watch lists of low-priority risks
F. Relative ranking of project risks
G. Root causes of each risks
H. Probability and impact matrix
Q. Which risk analysis tool is used to model your risks by running
simulations that calculate random outcome and probabilities?
I. Monte Carlo analysis
J. Sensitivity analysis
K. EMV analysis
L. Delphi techniques
ARK

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240

- Chapter 12 Project Procurement

Management

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September 2016

241

Chapter 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.
1) Plan Procurement ManagementThe process of

documenting project procurement decisions, specifying the

approach, and identifying potential sellers.
2) Conduct ProcurementsThe process of obtaining seller

responses, selecting a seller, and awarding a contract.

3) Control ProcurementsThe process of managing

procurement relationships, monitoring contract performance,

and making changes and corrections as appropriate.
4) Close ProcurementsThe process of completing each

project procurement.
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Chapter 12 Project Procurement Management

1) 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, how
much is needed, and when to acquire it.

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Chapter 12 Project Procurement Management

All legal contractual relationships generally fall into one of two
broad families: either fixed-price or cost reimbursable. Also,
there is a third hybrid type commonly in use called the time and
materials contract. The more popular contract types in use are
discussed below as discrete types, but in practice it is not
unusual to combine one or more types into a single
procurement.
1)
)
)
)

Fixed-price contractsFirm Fixed Price Contracts (FFP),

Fixed Price Incentive Fee Contracts (FPIF) and
Fixed Price with Economic Price Adjustment Contracts (FPEPA).

2)
)
)
)

Cost-reimbursable contractsCost Plus Fixed Fee Contracts (CPFF),

Cost Plus Incentive Fee Contracts (CPIF) and
Cost Plus Award Fee Contracts (CPAF).

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Chapter 12 Project Procurement Management

2) 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.

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Chapter 12 Project Procurement Management

3) 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 sellers and buyers performance meets
procurement requirements according to the terms of the
legal agreement.

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Chapter 12 Project Procurement Management

4) Close Procurements is the process of completing each
procurement. The key benefit of this process is that it
documents agreements and related documentation for future
reference.

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247

Chapter 12 Project Procurement Management

Q. You work for a seller that is bidding on a contract. Which type of

contract has the MOST risk for your company?
A. CPIF
B. T&M
C. FP
D. CPAF

Q. Which of the following BEST describes the point of total assumption

for a contract?
E. The point in a cost-plus contract where the buyer assumes that the
seller will need to be paid.
F. The total cost of a T&M contract.
G. The point in a fixed-price contract where the seller has to assume
all costs going forward.
H. The total number of resources required for a contract.
Q. Youre creating source selection criteria for your contract. What
process are you in?
I. Conduct Procurements
J. Control Procurements
K. Close Procurements

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248

Chapter 12 Project Procurement Management

Q. Youve been contracted by a construction company to manage its

contracting. It has a choice of either buying an excavator or renting
it. To buy it, the company would have to pay $105,000, but owning
it will require approximately $10,000 in maintenance costs per year.
The price to rent the excavation is $5,000 per month, with a onetime service charge of $2,000. Whats the minimum number of
months the company needs to use the excavator in order for it to
make sense to buy it rather than rent?
A. 8 months
B. 16 months
C. 21 months
D. 25 months
Q. Which of the following BEST explains the difference between a seller
audit Control Procurements and a procurement audit during Close
Procurements?
E. The seller audit reviews the products being created, while the
procurement audit reviews how well the seller is doing the job.
F. The procurement audit reviews the products being created, while
the seller audit reviews how well the seller is doing the job.
G. The seller audit reviews the products being created, while the
procurement audit
is used
ARK
September
2016 to examine successes and failures and

249

Chapter 12 Project Procurement Management

Q. You work for a seller that is bidding on a contract. Which type of

contract has the MOST risk for your company?
A. CPIF
B. T&M
C. FP
D. CPAF

Q. Which of the following BEST describes the point of total assumption

for a contract?
E. The point in a cost-plus contract where the buyer assumes that the
seller will need to be paid.
F. The total cost of a T&M contract.
G. The point in a fixed-price contract where the seller has to
assume all costs going forward.
H. The total number of resources required for a contract.
Q. Youre creating source selection criteria for your contract. What
process are you in?
I. Conduct Procurements
J. Control Procurements
K. Close Procurements

ARK

September 2016

250

Chapter 12 Project Procurement Management

Q. Youve been contracted by a construction company to manage its

contracting. It has a choice of either buying an excavator or renting
it. To buy it, the company would have to pay $105,000, but owning
it will require approximately $10,000 in maintenance costs per year.
The price to rent the excavation is $5,000 per month, with a onetime service charge of $2,000. Whats the minimum number of
months the company needs to use the excavator in order for it to
make sense to buy it rather than rent?
A. 8 months
B. 16 months
C. 21 months
D. 25 months
Q. Which of the following BEST explains the difference between a seller
audit Control Procurements and a procurement audit during Close
Procurements?
E. The seller audit reviews the products being created, while the
procurement audit reviews how well the seller is doing the job.
F. The procurement audit reviews the products being created, while
the seller audit reviews how well the seller is doing the job.
G. The seller audit reviews the products being created, while
the procurement
audit
ARK
September
2016 is used to examine successes and

251

- Chapter 13 Project Stakeholder

Management

ARK

September 2016

252

Chapter 13 Project Stakeholder Management

Project Stakeholder Management includes the processes
required to identify the people, groups, or organizations that
could impact or be impacted by the project, to analyze
stakeholder expectations and their impact on the project, and to
develop appropriate management strategies for effectively
engaging stakeholders in project decisions and execution.
1) Identify StakeholdersThe process of identifying the

people, groups, or organizations that could impact or be

impacted by a decision, activity, or outcome of the project;
and analyzing and documenting relevant information
regarding their interests, involvement, interdependencies,
influence, and potential impact on project success.
2) Plan Stakeholder ManagementThe process of

developing appropriate management strategies to effectively

engage stakeholders throughout the project life cycle, based
on the analysis of their needs, interests, and potential impact
on project success.
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Chapter 13 Project Stakeholder Management

3) Manage Stakeholder EngagementThe process of
communicating and working with stakeholders to meet their
needs/expectations, address issues as they occur, and foster
appropriate stakeholder engagement in project activities
throughout the project life cycle.
4) Control Stakeholder EngagementThe process of

monitoring overall project stakeholder relationships and

adjusting strategies and plans for engaging stakeholders.

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254

Chapter 13 Project Stakeholder Management

1) Identify Stakeholders is the process of identifying the
people, groups, or organizations that could impact or be
impacted by a decision, activity, or outcome of the project,
analyzing and documenting relevant information regarding
their interests, involvement, interdependencies, influence,
and potential impact on project success. The key benefit of
this process is that it allows the project manager to identify
the appropriate focus for each stakeholder or group of
stakeholders.

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Chapter 13 Project Stakeholder Management

Stakeholder analysis generally follows the steps described
below:
1) Identify all potential project stakeholders and relevant
information.
2) Analyze the potential impact or support each stakeholder
could generate, and classify them so as to define an
approach strategy.
) Power/interest grid, grouping the stakeholders based on
their level of authority (power) and their level or concern
(interest) .
) Power/influence grid, grouping the stakeholders based on
their level of authority (power) and their active
involvement (influence).
) Influence/impact grid, grouping the stakeholders based on
their active involvement (influence) in the project and
their ability to effect changes to the projects planning or
execution (impact); and
) Salience model, describing classes of stakeholders based
on their power (ability to impose their will), urgency (need
ARK
September 2016
256
for immediate attention), and legitimacy (their involvement

Chapter 13 Project Stakeholder Management

Example Power/Interest Grid with Stakeholders

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257

Chapter 13 Project Stakeholder Management

2) Plan Stakeholder Management is the process of
developing appropriate management strategies to effectively
engage stakeholders throughout the project life cycle, based
on the analysis of their needs, interests, and potential impact
on project success. The key benefit of this process is that it
provides a clear, actionable plan to interact with project
stakeholders to support the projects interests.

ARK

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Chapter 13 Project Stakeholder Management

Analytical Techniques
The current engagement level of all stakeholders needs to be
compared to the planned engagement levels required for
successful project completion.
The engagement level of the stakeholders can be classified as
follows:

Unaware. Unaware of project and potential impacts.

Resistant. Aware of project and potential impacts and

resistant to change.

Neutral. Aware of project yet neither supportive nor resistant.

Supportive. Aware of project and potential impacts and

supportive to change.

Leading. Aware of project and potential impacts and actively

engaged in ensuring the project is a success.

ARK

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259

Chapter 13 Project Stakeholder Management

3) Manage Stakeholder Engagement is the process of
communicating and working with stakeholders to meet their
needs/expectations, address issues as they occur, and foster
appropriate stakeholder engagement in project activities
throughout the project life cycle. The key benefit of this
process is that it allows the project manager to increase
support and minimize resistance from stakeholders,
significantly increasing the chances to achieve project
success.

ARK

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260

Chapter 13 Project Stakeholder Management

4) Control Stakeholder Engagement is the process of
monitoring overall project stakeholder relationships and
adjusting strategies and plans for engaging stakeholders.
The key benefit of this process is that it will maintain or
increase the efficiency and effectiveness of stakeholder
engagement activities as the project evolves and its
environment changes.

ARK

September 2016

261

Chapter 13 Project Stakeholder Management

Q. Which of the following is NOT an input to the Plan Stakeholder
Management process?
A. Enterprise environment factors
B. Organizational process assets
C. Work performance data
D. Stakeholder register
Q. Youre managing a construction project. You created a Stakeholder
Management plan, and now the team is working on the project.
Youve been managing the work, and now youre looking at the
work performance data to keep your stakeholders informed of the
status of the project. Youve discovered a change in the way your
stakeholders look at the budget for your project. Which of the
following BEST describes the next thing you should do?
E. Update the risk register to include any changes to risk strategy.
F. Compare the work performance information against the time, cost,
and scope baselines and look for deviations.
G. Create a change request and update the issue log and Cost
Management plan to reflect the approved change.
H. Hold a status meeting.
ARK

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262

Chapter 13 Project Stakeholder Management

Q.
A.
B.
C.
D.

Which is NOT an input of the identify Stakeholders process?

Procurement documents
Enterprise environments factors
Project charter
Project Management plan

Q.
E.
F.
G.
H.

Which information is NOT included in the stakeholder register?

Stakeholder name and group
Stakeholder requirements
Stakeholder expectations
Stakeholder deliverables

ARK

September 2016

263

Chapter 13 Project Stakeholder Management

September 2016

264

Chapter 13 Project Stakeholder Management

Q. Which is NOT an input of the identify Stakeholders process?
A. Procurement documents
B. Enterprise environments factors
C. Project charter
D. Project Management plan
Q. Which information is NOT included in the stakeholder register?
E. Stakeholder name and group
F. Stakeholder requirements
G. Stakeholder expectations
H. Stakeholder deliverables

ARK

September 2016

265

THE BEGINNING OF EFFORTS

ARK

September 2016

266

PMP Exam Sample

Questions

Q. An accepted deadline for a project approaches. However, the

267

Go to [Link] and use the PDU CODE to fill the

form and pay the fees for PMP Certification exam $405
Revise from PMPBOK
PMI shall provide a ELIGIBILITY ID once the
application is accepted
Go to [Link] and schedule an exam using
the ELIGIBILITY ID
Attempt 10 Mock Tests (Read each question and
answer after solving each test paper.)

ARK

September 2016

268

Common questions

Benchmarking offers a strategic advantage by allowing project teams to compare their practices to others, identify best practices, generate ideas for improvement, and measure performance. This can lead to enhanced project outcomes and alignment with industry standards .

Before initiating a quality audit, Plan Quality Management and Performed Quality Assurance should be conducted. Quality audits contribute by identifying good practices, non-conformities, and areas for improvement, helping to enhance compliance and process efficiency throughout the project .

Precision refers to the exactness of measurements and their consistency with each other, while accuracy measures how close these measurements are to the actual or true value. For example, arrows tightly clustered on a target but away from the bull’s-eye are precise but not accurate .

The Work Breakdown Structure (WBS) plays a critical role in Project Scope Management by providing a hierarchical decomposition of the total scope of work into smaller, manageable components, thus enabling clear visibility of the project deliverables and work . It acts as part of the scope baseline, alongside the scope statement and WBS dictionary, and is essential for effectively controlling scope by offering a structured vision of what needs to be delivered . If a WBS is absent during the project's execution phase, it is crucial to halt further project work and create the WBS before proceeding. This ensures that all project work is documented and understood, preventing any undocumented work from being overlooked . Immediate attention should also be given to maintaining effective communication to manage any changes or gaps in delivery that might arise due to the lack of a WBS . Creating the WBS belatedly helps align the project's scope management process with its original planning intent .

When encountering an undocumented change that cuts unnecessary deliverables, the project manager must ensure it is integrated via the Perform Integrated Change Control process. This involves reviewing the change, ensuring it is documented as a change request, and obtaining necessary approvals, as changes should be evaluated for their impact on the project objectives and documented in an integrated manner . Furthermore, this process involves coordinating with stakeholders to assess the change's impact on the project baselines and ensuring it aligns with project governance and scope management processes . The undocumented change should not be implemented without following these formal processes to ensure project alignment and to avoid scope inconsistencies ."}

Upon receiving notification of project termination at the halfway point, the most appropriate action is to first verify the deliverables produced by the team against the defined scope, ensuring any discrepancies are documented . After verifying and documenting the deliverables, proceed to formally close the project by communicating termination to all stakeholders, archiving project documentation, and releasing resources according to the predefined project closure procedures . This involves executing the Control Scope and Validate Scope processes to ensure that all deliverables up to that point meet the pre-established criteria for acceptance . Ensuring proper closure involves updating project records for any lessons learned, which can add value to future projects ."}

The primary consideration when prioritizing changes in project management should be alignment with the overall project objectives and plans. Changes need to be reviewed and managed in an integrated fashion to minimize risks and ensure they are in line with project goals. The process of change prioritization often involves consulting a Change Prioritization plan to guide decisions on which changes should be prioritized based on their strategic importance and impact on project success .

Regulation impacts project management practices by imposing mandatory requirements on product, process, or service characteristics, ensuring compliance with laws and standards . Compliance is crucial because it helps projects to align with legal and quality standards, avoiding penalties and ensuring the project’s deliverables meet stakeholder and regulatory expectations . Failure to comply can lead to quality failures, increased costs due to non-compliance issue resolutions, and potential legal consequences .

Plan Scope Management is the process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled . The key benefit of this process is that it provides guidance and direction on how the scope will be managed throughout the project .

The key distinction between quality assurance and quality control in project management is that quality assurance focuses on auditing quality requirements and the processes to ensure that the right standards and operational definitions are used, facilitating improvement of quality processes. In contrast, quality control involves monitoring and recording results of quality activities to ensure that product and project deliverables meet specified standards and involves identifying and fixing defects .

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