2-6 Book-2

ahmedmaher1986@yahoo.
com 09 Apr 2017
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ahmedmaher1986@yahoo.com 09 Apr 2017
ACKNOWLEDGEMENT
In the name of ALLAH, most Merciful, most Gracious, first
& foremost, I would like to express my deep thankfulness
to ALLAH, for everything that has happened in my life.
This book is dedicated with all my appreciation, respect,
and love that no words can ever express, to those who
supported me; my dear parents, my wife, my trainees and
to all whose helped me to reach my current Projects
Management Level.
Without all of your continuous support, this project would

not have been possible.
Ahmed AlSenosy
ii
PREFACE
The world changing rapidly, so it is important to follow up with the
same rate to gain the future benefits. Projects management is one
of the most important tools to acheive our organizations strategic
goals, objectives, and other benefits. So applying the project
management in the right way will save time, money and increase
our benefits. In my book I utilized PMI projects management
framework which considered one of the most powerful around the
world, I used PMBOK V5 to be my main reference it containing
amazing project management acknowledge. Also, I collected in
addition to PMBOK' content, from Rita-PMP Exam Prep 8th
edition book, Andy Crowe 5th edition book, Head Firsts 3rd edition
book. In addition to. extra section that will cover more than 100
points which we called them " PMP Exam Tips" to help our book
readers pass PMP Exam from the first attempt.Last,we add the
most important tricks for passing the exam at the end of each
section.
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PROJECT MANAGEMENT PMP
About The Author

With mega transitions, speed of life and the world moves quickly towards
the future. Accordingly, projects management professionally becomes
urgent, to keep up with this revolution, progress and harmony with it. We
will be happy to take your hands towards keeping up with this development
and the constructive tool in the overall management and project
management especially.
Ahmed AlSenosy holds a Bachelor of Civil Engineering. Member and

Certified by the project management institute Pennsylvania - USA as:
1.Project management professional (PMP ) 2011,
2.Risk Management Professional (PMI-RMP ) 2013,
3.International trainer professional (TOT) 2014,
4.Master of Science on projects management,
5.Arbitrator in Projects Disputes,
6.Owner of international website www.professionalengineers.us,
7.Wrote many other E-books in Project Management field.
In addition to practical experience in the field of project management,
executive and human resources management, the author has projects
management knowledge that always seeks to develop, update, and share
with others, especially the professionals in the field of project Management.
Other skills and interests, (PMP Certificate training, PMI-RMP
Certificate training, planning and scheduling by primavera P6.8.2 training,
Excel and reports& dashboards training) PMO (projects management
office) creation and workflow process improvement.
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Table of Contents
1.PROJECT MANAGEMENT .............................................................................. 1
1.1 Who Should Intend To Read This Book? ............................................................... 2
1.2 What Is Different in Our PMP Book? .................................................................. 2
1.3 PMI Certifications................................................................................................ 2
1.4 Preparing for The Exam .......................................................................................... 3
2.PM FRAMEWORK ............................................................................................... 4
2.1 What is a Project? ................................................................................................... 4
2.2 Projects and Operations .......................................................................................... 4
ll2.3 Project Lifecycle ,PM Lifecycle ........................................................................... 9
2.4 Types of Organizations ......................................................................................... 12
2.5 PM Key General Management Skills ................................................................... 18
2.6 Project Framework Tips & Tricks ......................................................................... 23
3.PROJECT MANAGEMENT PROCESSES .................................................. 25
3.1 Initiating Process Group ....................................................................................... 26
3.1.1 Stakeholders in the Initiating Processes ........................................................ 26
3.2Planning Process Group ......................................................................................... 26
3.3 Executing Process Group ...................................................................................... 26
3.4 Monitoring & Controlling Process Group ............................................................ 27
3.5 Closing Process Group.......................................................................................... 27
3.6 Common Definitions in The Project Processes .................................................... 27
3.6.1 Common Inputs: ................................................................................................ 28
3.6.1.1 Enterprise Environmental Factors .............................................................. 28
3.6.1.2 Organizational Process Assets .................................................................... 28
3.6.1.3 Project Management Plan ........................................................................... 30
/3.6.1.4 Approved Change Requests........................................................................ 30
3.6.2 Common Tools and Techniques ......................................................................... 32
3.6.2.1 Expert Judgment .......................................................................................... 32
3.6.2.2 Project Management Methodology ............................................................. 32
3.6.2.3 Project Management Information System (PMIS) ...................................... 32
3.6.3 Common Outputs ............................................................................................... 33
3.6.3.1 Updates (All Categories) ................................................................................ 33
4. PROJECT INTEGRATION MANAGEMENT ........................................... 37
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4.1 Develop Project Charter ........................................................................................ 37

4.2 Develop Project Management Plan ....................................................................... 42
4.3 Direct and Manage Project Work .......................................................................... 44
4.4 Monitoring & Control Project Work ..................................................................... 46
4.5 Perform Integrated Change Control. ..................................................................... 52
4.6 Close Project or Phase .......................................................................................... 56
4.7 Integration Tips & Tricks ...................................................................................... 60
5. PROJECT SCOPE MANAGEMENT ............................................................ 65
5.1 Plan Scope Management ....................................................................................... 67
5.2 Collect Requirements ............................................................................................ 70
5.3 Define Scope ......................................................................................................... 76
5.4 Create WBS .......................................................................................................... 79
5.4.1 Work Package / Planning Package / Control Account: ................................. 80
5.4.2 Work Breakdown Structure NODE: ............................................................... 81
5.4.3 Why Use the WBS? ......................................................................................... 81
5.4.4 WBS Dictionary .............................................................................................. 84
5.5 Validate Scope ....................................................................................................... 85
5.6 Control Scope ....................................................................................................... 87
5.7 Scope Tips & Tricks .............................................................................................. 91
6.PROJECT TIME MANAGEMENT ................................................................ 94
6.1 Plan Schedule Management .................................................................................. 95
6.2 Define Activities ................................................................................................... 98
6.3 Sequence Activities ............................................................................................. 102
6.4 Estimate Activity Resources ............................................................................... 105
6.5 Estimate Activity Duration ................................................................................. 108
6.6 Develop Schedule ................................................................................................ 111
6.7 Control Schedule..................................................................................................116
6.8 Time Management Formulas ...............................................................................118
6.9 Time Tips & Tricks ............................................................................................. 130
7.PROJECT COST MANAGEMENT .............................................................. 136
7.1 Plan Cost Management ....................................................................................... 138
7.2 Estimate Cost ...................................................................................................... 140
7.3 Determine Budget ............................................................................................... 143
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7.4 Control Cost ........................................................................................................ 145

7.4.1 Earned Value Management (EVM).............................................................. 147
7.4.2 Project Selection Cost Indices ...................................................................... 153
7.5 Cost Management Tips & Tricks ........................................................................ 162
8.PROJECT QUALITYMANAGEMENT ...................................................... 165
8.1 Plan Quality Management .................................................................................. 174
8.2 Perform Quality Assurance ................................................................................. 180
8.3 Control Quality ................................................................................................... 185
8.4 Quality Tips & Tricks ......................................................................................... 194
9.PROJECT HR MANAGEMENT ................................................................... 203
9.1 Plan Human Resource Management ................................................................... 205
9.2 Acquire Project Team ...........................................................................................211
9.3 Develop Project Team ......................................................................................... 213
9.4 Manage Project Team.......................................................................................... 218
9.5 HR Tips & Tricks ................................................................................................ 233
10.PROJECT COMMUNICATIONS MANAGEMENT ............................. 238
10.1 Plan Communication......................................................................................... 240
10.2 Manage Communication ................................................................................... 250
10.3 Control Communication ................................................................................... 253
10.4 Communication Tips & Tricks .......................................................................... 256
11.PROJECT RISK MANAGEMENT ............................................................. 260
11.1 Plan Risk Management ....................................................................................... 262
11.2 Identify Risks ..................................................................................................... 266
11.3 Perform Qualitative Risk Analysis ................................................................... 271
11.4 Perform Quantitative Risk Analysis ................................................................. 277
11.5 Plan Risk Responses ......................................................................................... 282
11.6 Control Risk ...................................................................................................... 289
11.7 Risk Tips & Tricks ............................................................................................ 293
12.PROJECT PROCUREMENT MANAGEMENT ..................................... 298
12.1 Plan Procurement Management ........................................................................ 301
12.2 Conduct Procurement ....................................................................................... 312
12.3 Control Procurement ......................................................................................... 318
12.4 Close Procurement ............................................................................................ 322
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12.5 Procurement Tips & Tricks ............................................................................... 326

13.PROJECT STAKEHOLDER MANAGEMENT ...................................... 333
13.1 Identify Stakeholders ........................................................................................ 333
13.2 Plan Stakeholder Management ......................................................................... 337
13.4 Control Stakeholder Engagement ..................................................................... 343
13.5 Stakeholders Tips & Tricks ............................................................................... 346
14.PMI PROFESSIONALITY ........................................................................... 347
14.1professional & Social Responsibility ................................................................. 347
14.2 PMI-Isms in Professional and Social Responsibility ........................................ 350
14.3 Categories of Professional and Social Responsibility ...................................... 351
14.4 Responsibility-Ownership of Decisions and Actions ....................................... 354
14.5 Respect The Appropriate Treatment of People and Resources ......................... 357
14.6 Fairness-Being Objective and Making Impartial Decisions ............................. 361
14.7 Honesty Understanding the Truth and Taking Action Based on Truth ............. 363
15.PMP EXAM TIPS ............................................................................................ 365
15.1 The PMP Exam Memorization ......................................................................... 365
15.2 Formulas to Know for The Exam ..................................................................... 368
15.3 Before You Take the Exam ............................................................................... 370
15.4 Tricks for Taking and Passing The PMP Exam ................................................ 373
ANNEXES ............................................................................................................... 376
REFERENCES ....................................................................................................... 384
First: Researches ....................................................................................................... 384
Second: Books .......................................................................................................... 385
CONTACT US........................................................................................................ 386
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List of Tables
Table(2- 1):Influence of Organizational Structures on Projects .................................. 17
Table(3- 1): PM Processes Groups .............................................................................. 25
Table(3- 2):PM Knowledge Areas ............................................................................... 25
Table(3- 3):Differentiation between The Project Management Plan and Project
Documents ................................................................................................. 31
Table(4 - 1):Project Integration Management Overview 37
Table (5- 1):Project Scope Management Overview 65
Table(6- 1):Project Time Management Overview.. 94
Table(7- 1):Project Cost Management Overview.. 136
Table(7- 2): Earned Value Calculations Summary Table .......................................... 151
Table(8- 1):Project Quality Management Overview 165
Table(8- 2):The Exam Tricks On Quality Management ............................................ 195
Table(8- 3):Tools And Techniques Tricks In Quality................................................ 200
Table (9- 1):Project HR Management Overview 203
Table (9- 2):Issue Log Template ................................................................................ 219
Table (10- 1):Project Communication Management Overview.. 238
Table (10- 2):Form of Communications .................................................................... 249
Table (10- 3):Portion Of Communication Management Plan .................................... 258
Table(11- 1):Project Risk Management Overview. 260
Table(11- 2):Template for Risk Register ................................................................... 269
Table(11- 3):Contract Type VS. Risk Allocation ...................................................... 285
Table(11- 4):Brief Risk Management Process. .......................................................... 295
Table (12- 1):Project Procurement Management Overview...298
Table (12- 2): Advantages& Disadvantages of .......................................................... 300
Table (12- 3): Advantages& Disadvantages of .......................................................... 300
Table (12- 4):Contract Type Selection Procedures .................................................... 311
Table (13- 1):Stakeholder Management Overview. 333
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List of Figures
Figure(2- 1):Traditional Project Management Life Cycle ................................................4
Figure(2- 2):Project Management Context........................................................................5
Figure(2- 3):Portfolio Management ..................................................................................6
Figure(2- 4):Multi Phase Project .......................................................................................9
Figure(2- 5):Description of Kill Point ...............................................................................9
Figure(2- 6):Typical Project Life Cycle ..........................................................................10
Figure(2- 7):Cost And Staffing Levels Through Project Life Cycle...............................10
Figure(2- 8):Types of Project Stakeholders ....................................................................12
Figure(2- 9):Different Types Of Organization ................................................................12
Figure(2- 10):Functional Organization ...........................................................................13
Figure(2- 11):Project-Based Organization ......................................................................14
Figure(2- 12):Weak Matrix Organization .......................................................................14
Figure(2- 13):Balanced Organization ..............................................................................15
Figure(2- 14):Strong Matrix Organization ......................................................................15
Figure(2- 15):Projectized Organization...........................................................................16
Figure(2- 16):Composite Organization ...........................................................................17
Figure(2- 17):Project Coordinator Roles .........................................................................19
Figure(2- 18):Project Expeditor Roles ............................................................................20
Figure(2- 19):Senior Management Roles ........................................................................21
Figure (3- 1):PM Processes Groups ................................................................................25
Figure (3- 2):Description of The Process ........................................................................28
Figure (3- 3):Project Management Processes Interactions ..............................................35
Figure (4 - 1):Develop Project Charter Process ..............................................................37
Figure (4 - 2):Develop Project Management Plan Process .............................................42
Figure (4 - 3):Direct and Manage Project Work Process ................................................45
Figure (4- 4):Monitoring & Control Project Work Process ...........................................47
Figure (4- 5):Perform Integrated Change Control Process ............................................52
Figure (4- 6):Close Project or Phase Process .................................................................57
Figure (5- 1):Plan Scope Management Process ..............................................................68
Figure (5- 2): Collect Requirements Process ..................................................................71
Figure (5- 3):Define Scope Process.................................................................................77
Figure (5- 4):Create WBS Process ..................................................................................80
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Figure (5- 5):Example for WBS Levels ..........................................................................80

Figure (5- 6 ):Example for WBS Levels through Project ...............................................81
Figure (5- 7): Decomposition of Project Deliverables ....................................................83
Figure (5- 8): Work Breakdown Structure Components .................................................84
Figure (5- 9): Online Ordering Application of WBS ......................................................85
Figure (5- 10): Validate Scope Process ...........................................................................86
Figure (5- 11): Control Scope Process ............................................................................89
Figure (6- 1): Plan Schedule Management Process .........................................................96
Figure (6- 2): Define Activities Process ..........................................................................99
Figure (6- 3): Sequence Activities Process. ..................................................................102
Figure (6- 4): Finish Start Different Relationships .......................................................104
Figure (6- 5): Precedence Diagramming Method (PDM) .............................................104
Figure (6- 6):Estimate Activity Resources Data Flow ..................................................106
Figure (6- 7) : Estimate Activity Duration Process .......................................................109
Figure (6- 8) : Develop Schedule Management Process ...............................................112
Figure (6- 9): Control Schedule Management Process .................................................117
Figure (6- 10):Forward Path Method ............................................................................120
Figure (6- 11):Backward Method ..................................................................................121
Figure (6- 12): Total Float Description .........................................................................122
Figure (6- 13):Activity Duration and Probability of Time ............................................123
Figure (6- 14):Before Fast Tracking .............................................................................126
Figure (6- 15):Fast Tracking(Overlapping ) ..................................................................126
Figure (6- 16):Formulas for Three-Point Estimating and Activity ...............................133
Figure (7- 1): Plan Cost Management Process ..............................................................138
Figure(7- 2) : Estimate Cost Management Process .......................................................141
Figure(7- 3) : Determine Budget Management Process ................................................143
Figure(7- 4): Control Cost Management Process ..........................................................146
Figure(7- 5) :Project Budget Component ......................................................................147
Figure(7- 6) : Earned Value, Planned Value, and Actual Costs ....................................148
Figure(7- 7) :Debits and Credits Shape .........................................................................149
Figure(7- 8): Project Performance Without Earned Value ............................................149
Figure(7- 9): Project Performance With Earned Value .................................................150
Figure(8- 1):Accuracy VS. Precision Relationship .......................................................169
Figure(8- 2): Bell Curve ................................................................................................172
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Figure(8- 3): Control Chart ...........................................................................................174

Figure(8- 4 ):Plan Quality Management Process ..........................................................174
Figure(8- 5): Storyboard Illustrating a Conceptual Example of Each of the Seven Basic
Quality Tools ........................................................................................................ 178
Figure(8- 6):Perform Quality Assurance Process .........................................................180
Figure(8- 7):Affinity Diagram.......................................................................................181
Figure(8- 8): Process Decision Program Charts ............................................................182
Figure(8- 9): Interrelationship Digraphs .......................................................................182
Figure(8- 10):Tree Diagrams.........................................................................................183
Figure(8- 11):Priority Matrix ........................................................................................183
Figure(8- 12): Activity Network Diagram ....................................................................184
Figure(8- 13):Matrix Diagram.......................................................................................185
Figure(8-14):Control Quality Management Process .....................................................186
Figure(8- 15): Cause and Effect Diagram .....................................................................188
Figure(8- 16):Flow Chart Diagram and The Liberary Procedures ................................188
Figure(8- 17):Histogram................................................................................................189
Figure(8- 18):Pareto Chart ............................................................................................190
Figure(8- 19):Control Chart ..........................................................................................190
Figure(8- 20):Scatter Diagram ......................................................................................192
Figure(8- 21):Types Of Correlation ..............................................................................192
Figure ( 9- 1): Plan HR Management Process ...............................................................205
Figure ( 9- 2):Roles And Responsibilities Definitions Format .....................................208
Figure ( 9- 3): RACI Matrix ..........................................................................................210
Figure ( 9- 4): Acquire Project Team Process ...............................................................211
Figure ( 9- 5): Develop Project Team Process ..............................................................214
Figure ( 9- 6):Manage Project Team Process ................................................................218
Figure ( 9- 7):Conflict Resolution Methods ..................................................................222
Figure ( 9- 8): Types of Conflict Resolution .................................................................223
Figure ( 9- 9):ABRAHAM MASLOWS S Hierarchy Of Needs .................................231
Figure ( 9- 10): HERZBERG'S Tips .............................................................................232
Figure(10- 1):Plan Project Management Process. .........................240
Figure(10- 2):Project Manage Communication Process ...............................................251
Figure(10- 3):Project Control Communication Process ................................................254
Figure(10- 4):Flow Of Communication In Project........................................................256
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Figure(11- 1):Plan Risk Management Process ..............................................................263

Figure(11- 2):Risk Breakdown Structure(RBS) ............................................................265
Figure(11- 3):Identify Risk Management Process ........................................................267
Figure(11- 4):Influence Diagram ..................................................................................271
Figure(11- 5):SWOT Analysis ......................................................................................271
Figure(11- 6):Perform Qualitative Risk Analysis Process ............................................272
Figure(11- 7):Levels of Measuring Impact of Risk.......................................................273
Figure(11- 8):Levels of Measure Probability Scale ......................................................273
Figure(11- 9):Probability and Impact Matrix ................................................................275
Figure(11- 10):RBS HIERARCHY...............................................................................276
Figure(11- 11):Risk Breakdown Structure( RBS) .........................................................276
Figure(11- 12):Perform Quantitative Risk Analysis Process ........................................278
Figure(11- 13): Decision Tree Example ........................................................................279
Figure(11- 14):Tornado Diagram ..................................................................................280
Figure(11- 15): Decision TreeMonte Carlo Simulation ................................................280
Figure(11- 16):Monte Carlo Simulation........................................................................281
Figure(11- 17):Plan Risk Responses Process ................................................................283
Figure(11- 18):Control Risk Process .............................................................................290
Figure(12- 1):Plan Procurement Management Process .............301
Figure(12- 2):Seller Buyer And Risk Relationship .......................................................311
Figure(12- 3): Conduct Procurement Process ...............................................................314
Figure(12- 4):Control Procurement Process ..................................................................319
Figure(12- 5): Close Procurement Process ....................................................................323
Figure (13- 1): Identify Stakeholder Process. ...............333
Figure (13- 2):Example for Power/Interest Grid with Stakeholders .............................336
Figure (13- 3):Plan Stakeholder Management Process .................................................337
Figure (13- 4):Stakeholders Engagement Assessment Matrix ......................................339
Figure (13- 5): Manage Stakeholder Engagement Process ...........................................340
Figure (13- 6):Control Stakeholder Engagement Process .............................................343
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1
1.PROJECT MANAGEMENT
OVERVIEW
1.1 Who Should Intend To Read This Book?
This book is targeting the Project Managers, Planning engineers,
Construction Managers, Site Engineers, and whoever is interested in project
management. If you are seeking to create, review, or understand the project
management plan including project objectives plans, you are kindly invited
to attend this course.
1.2 What Is Different in Our PMP Book?
In this book you will find a permanent and distinctive link between the
projects in the Arab environment and the principles of Project Management,
rules and knowledge in the book 5th issued by the Project Management
Institute, U.S.. In addition to stand on the important points, which always
come in the PMP exams, as well as how to link temporal and spatial
processes of project management without the need for memorization
suffering?, Joining us guarantee your success from the first try, and
understand the serious and real knowledge in the PMBOK 5th
In addition, of all points above you will take 100 questions exam at the end
of our course online for simulating the real PMP exam conditions and
atmosphere.
We will provide
Decrease study and preparation time by focusing on exam topics,
Enhances your personal study plan and evaluate progress,
Utilize useful tips and techniques in answering the exam questions,
Understand the PM terminology, which is used by PMPs.
1.3 PMI Certifications.
1. Project Management Professional - PMP
2. Certified Associate Project Manager - CAPM
2
3. Program Management Professional PgMP

4. PMI Scheduling Professional - PMISP
5. PMI Risk Management Professional - PMIRMP
6. PMI Agile Certified Practitioner - PMI-ACP
7. OPM Professional Certification.
1.4 Preparing for The Exam
PMP exam is four hours and 200 questions - this means that you have
approximately 1 minute and 12 seconds to answer each question. In order
to ensure an optimal testing experience there are specific stress relievers
you can employ that will help you get through the test with a minimum of
angst. Consider the following as part of your test taking strategy:
Arrive Early: Consider traffic and time of day when making your way to
the exam center. You don't want to arrive in a rushed or stressed state before
the exam begins. It is strongly recommended that you scope out the exam
facility a week or two before the actual examination, if at all possible. You
want to know what to expect walking through the door of the test facility.
You will be under. Constant video monitoring and observation for the entire
duration of the exam.
Rest Up: Take the evening off from studying the night before the exam - if
you don't know the material by this point, cramming into late hours the
evening before the test will simply multiply your stress level by a factor of
two or three. It is most important that you be rested with a good nights
sleep under your belt on the day of the exam. If you can, schedule the test
for early afternoon instead of early morning that may be correct statements
by themselves, but do not answer the question.
Consider Earplugs: There may be some distracting noises in the
examination room such as a fan, or test-taker for a different exam tapping
a pencil on a desk. Bring earplugs just in case.
3
Dress in Layers: Frequently exam rooms are air conditioned to a point

where they are too cold for many people. Therefore, it is recommended that
you dress in layers and remove layers or add layers as necessary to maintain
your own individual comfort level.
Bring Food and Drink: If you get thirsty or need a nutritional boost during
the exam, make sure you bring bottled water, bottled juices, or any snacks
you will need for the four-hour test. If you have to leave the room to use a
water fountain or go to a vending machine, the test clock will still be
ticking.
Do the Brain Dump: Prior to the start of the exam and during the 15-minute
tutorial you will have time to write on scratch paper all the formulas you
will need for the test. While many of us pride ourselves on our airtight
memories, rest assured that if exam panic sets in, all that you thought you
had memorized will fly out of your head in an instant. Do yourself a favor
and write down these formulas in an unstressed state prior to the actual start
of the exam - this will pay dividends many times over while you are taking
the exam. Some past test takers have actually reported that examination
proctors upon handing scratch ". paper to the test-taker will state "don't
forget your brain dump.
4
2.PM FRAMEWORK
2.1 What is a Project?
A temporary endeavor undertaken to produce a unique product ,services
or result.
Its plan is usually progressively elaborated.
Figure(2- 1):Traditional Project Management Life Cycle
Rolling wave planning

Process groups may overlap and cross phases.
If a project is broken down into several phases( e.g. design ,
implementation. etc ,).then the process groups will occur in each of the
phases.
Rolling wave planning refers to the progressive detailing of the project
plan which is an iterative and ongoing process.
2.2 Projects and Operations
Similarities between Operations and Projects
Performed by people,
Constrained by limited resources,
Planned executed and controlled.
Differences between Operations and Project
Operations do not have any timelines .Projects are temporary and have
4
finite time duration,

Objective of Operations is usually to sustain the business., Objective of a
project is to attain the objective and close the project.
Figure(2- 2):Project Management Context

Project Management exists in a broader context that includes:
o Program management
o Portfolio management
o Project management office
Frequently, there is a hierarchy of:
o Strategic plan
o Portfolio
o Program
o Project
o Subproject
Sub-Projects
o Projects are divided into more manageable components or subprojects.
o Usually contracted to an external enterprise or other functional unit in
performing organization.
5
Programs
o Group of projects managed in a coordinated way to obtain benefits not
available from managing them individual in order to gain efficiencies on
cost ,time ,technology ,etc.
o A combination of related projects and includes associated operational
work which is not done as part of the individual projects.
o Developing several common components only once and leveraging them
across all of the projects that use those components.
Program Management
o Provides a holistic view of several related projects which, if done
together ,will achieve more substantial results than an individual project.
o Satisfies a particular strategic objective ,which will require several
projects
Portfolio Management
o Portfolio is the collection of projects or programs and
o Associated operational work
o Portfolio Management is the selection and support of projects or program
investments.
Figure(2- 3):Portfolio Management

o Portfolio Management is important because:
It satisfies the strategic business objectives
6
Helps in selecting of appropriate projects and programs to maximize the

value of the portfolio
Project Management Office
An organizational unit to centralize and manage a program.
Called Program Management Office ,Project Office or Program Office.
Project team members will report directly to the project manager or ,if
shared ,to the PMO.
The project manager reports directly to the PMO.
The PMO directly reports to the CEO.
Identification and development of project management methodology, best
practices and standards.
Clearing house and management for project policies, procedures ,
templates and other shared documentation.
Centralized configuration management for all projects administered by
the PMO.
Centralized repository and management for both shared and unique risks
for all projects.
Central office for operation and management of project tools ,such as
enterprise-wide project management software.
Central coordination for communication management across projects.
A mentoring platform for project managers.
Central monitoring of all project timelines and budgets ,usually at the
enterprise level.
Coordination of overall project quality standards between the project
manager and any internal or external quality personnel or standards
organization.
Strategic Planning
Strategic planning is a practice by which a company looks into the future
7
for products or services, it must have ,typically three to five years in the
future.
Projects are the tools that the company will use to implement these
strategic goals ,because the operations of the company typically
encompass the day-to-day( repeatable )activities .Thus ,when the strategic
goals are complete ,they roll into the operations of the company.
Projects can be initiated as a result of market demand ,legal needs ,
technology updates ,and customer or organizational needs.
PMIhas a tool and methodology approach called OPM3
(Organizational Project Management Maturity Model) for aligning a
company's goals and strategic planning to project management.
Project management processes are mapped on to the lifecycle and
Organized into groups:
Initiating processes :recognizing that a project or phase should begin
and committing to do so.
Planning processes :devising and maintaining a workable scheme.
Executing processes :coordinating resources to carry out the plan.
Monitoring and Controlling processes :ensuring that project objectives
are met.
Closing processes :formalizing acceptance and bringing it to an orderly
end.
The processes groups are linked by the results they produce ;the results
of one process group becomes input to another
Project Phase
Project phase: A collection of logically related project activities usually
culminating in the completion and approval of a major deliverable.
8
Figure(2- 4):Multi Phase Project

Design Phase
Figure(2- 5):Description of Kill Point
2.3 Project Lifecycle ,PM Lifecycle

Project life cycle collectively the project phases are known as the project
life cycle .Project life cycle includes all the phases required for a project
defines the beginning and end of a project.
o What do you need to DO the work?
o It varies by industry and type of project.
Project management life cycle describes what is required to manage the
project and follows PMIs process groups (i.e. Initiating ,planning ,
execution ,control and closeout).
More Than 20 Questions In PMP Exam Related To

PM Life Cycle
9
Figure(2- 6):Typical Project Life Cycle
Project Life Cycle Features

Defines the beginning and end of the project,
Includes the transitional activities at beginning and end of the project
(provides link with ongoing operations of the performing organization,(
Define technical work and resources involved in each phase,
When the deliverables are to be generated in each phase and how each
deliverable is reviewed, verified and validated?
How to control and approve each phase?
Project life cycle may be just one phase of product life cycle
Subprojects within projects have their own distinct life cycles.
Figure(2- 7):Cost And Staffing Levels Through Project Life Cycle
10
Product Life Cycle

The cycle of a products life from conception to withdrawal.
The natural grouping of ideas, decisions, and actions into product phases,
from product conception to operations to product phase-out.
Undertaken to launch a new product a product life cycle may have
several projects (and hence multiple project life cycles ( e.g .a project
undertaken to bring a new desktop computer to market is only one phase
in the product life cycle.
Project Management System
The Project Management System is a set of procedures ,tools and
techniques, processes ,and methodologies that an individual Project
Manager, PMO, or company can use to manage projects.
This system can be formal or informal in nature.
Typically, it is supported by the Project Management Plan as the work on
the project is executed.
Project Methodology
A methodology is a system of practices ,techniques, procedures ,and rules
used by those who work in a discipline.
PMI does not define what phases you should use on your project.
The PMBOK Guide does not describe a project methodology. Instead ,
processes are defined that could fit into your project methodology.
Stakeholders
Anyone whose interests may be positively or negatively impacted by the
project,
It is important to Identify all stakeholders,
Determine all of their requirements or needs,
Understand and evaluate of their expectations,
Communicate with them effectively,
Manage their influence.
11
Figure(2- 8):Types of Project Stakeholders
2.4 Types of Organizations
Types of Organizations
Functional
Project Based
Weak Matrix
Balanced Matrix
Strong Matrix
Projectized
Figure(2- 9):Different Types of Organization
12
Functional Organization
Figure(2- 10):Functional Organization
Potential Advantages
Access to specialists; members reporting to only one supervisor, clearly
defined career paths,
Clear reporting relationships,
Highly specialized expertise,
Homogeneous group,
Drive for technical excellence.
Potential Disadvantages
less focus on project deliverables, no career path on Project
Management, PM has no authority,
Project boundaries limited to discipline,
Barrier to customer influence and satisfaction,
Employee development opportunities limited,
Project manager dependent on personal influence,
Hierarchical decision and communication processes,
Overwork technical issues versus build to standard.
13
Project Based Organization
Figure(2- 11):Project-Based Organization
Weak Matrix Organization
Figure(2- 12):Weak Matrix Organization
14
Balanecd Organization
Figure(2- 13):Balanced Organization
Strong Matrix Organization
Figure(2- 14):Strong Matrix Organization
15
Projectized Organization
Figure(2- 15):Projectized Organization

Advantages of Projectized Organization:
Strong project manager role,
Full-time administrative staff,
Clear accountability,
Fosters co-location,
Improved focus,
Cost and performance tracking,
Decision-making,
Customer relationships,
Common processes,
Disadvantages of Projectized Organization:
Identity
Reduced focus on technical competence,
Leadership by the non-technically skilled.
Technical
Devaluing of functional managers,
Process versus deliverable emphasis.
16
Composite Organization
Figure(2- 16):Composite Organization
Table(2- 1):Influence of Organizational Structures on Projects
17
2.5 PM Key General Management

Skills
Leading
Negotiating
Problem Solving
Influencing the Organization
Roles & Responsibilities
1. Project Manager,
2. Coordinator,
3. Project Expediter,
4. Functional Manager,
5. Senior Management,
6. Sponsor,
7. Project Team Members.
1. Roles of Project Manager
The person ultimately responsible for the outcome of the project
deliverables,
Not required to be a technical expert,
Formally empowered to use organizational resources in control of the
project,
Authorized to make decisions and spend the project's budget,
Found in a matrix or projectized organization .If they do exist in a
functional organization ,they will often be only part-time and will have
significantly less authority than project managers in other types of
organizations.
2. Roles of Project Coordinator
In some organizations ,project managers do not exist ;instead, they use
the role of a project coordinator.
18
Weaker than a project manager .This person may not be allowed to make
budget decisions or overall project decisions, but they may have some
authority to reassign resources.
Acts as the communications link to Senior Management and have some
limited decision-making abilities.
Found in weak matrix or functional organizations.
Figure(2- 17):Project Coordinator Roles
3. Roles of Project Expediter

The weakest of the three project management roles,
Staff assistant who has little or no formal authority,
This person reports to the executive who ultimately has responsibility for
the project,
Performs activities such as verifying that some assignment is complete ,
checking on the status of some undertaking ,and communicating the
information to senior management,
Usually found in a functional organization - may be only part -time in
many organizations.
19
Figure(2- 18):Project Expeditor Roles
4. Roles of Functional Manager

Departmental manager such as the manager of engineering, director of
marketing or information technology manager.
Usually" owns "the resources that are loaned to the project ,and has
human resources responsibilities for them.
May be asked to approve the overall project plan.
Functional managers can be a rich source of expertise and information
available to the project manager and can make a valuable contribution to
the project.
Typically ,you see this role conflicting with the Project Manager and
direction of the project.
5. Roles of Senior Management
Role on the project is to help prioritize projects and make sure the project
manager has the proper authority and access to resources.
Issues strategic plans and goals and makes sure that the company's
projects are aligned with them.
May be called upon to resolve conflicts within the organization.
20
Figure(2- 19):Senior Management Roles
6. Roles of Sponsor
The person paying for the project.
May be internal or external to the company.
Called the project champion.
The sponsor and the assumptions.
If a serious conflict arises between the project customer may be the same
person ,although the usual distinction is that the sponsor is internal to the
performing organization and the customer is external.
May provide valuable input on the project ,such as due dates and other
milestones ,important product features ,and constraints manager and the
customer ,the sponsor may be called in to help work with the customer
and resolve the dispute.
7. Roles of Project Team Members ) Project Staff(
The people who actually execute the work that goes toward meeting the
scope of the project.
Can be analysts ,programmers ,technical writers ,construction personnel ,
testers ,etc.
Project Manager assumes that they know enough to manage their own
workload without the need for micromanagement .If team members are
unclear about their duties ,they can contact the Project Manager for it.
21
One main difference between team members and other stakeholders is

that a team member typically bills( is a cost )to the project).
22
2.6 Project Framework Tips & Tricks

You should have a large project in mind when you
answer questions on the exam. Think of a project that
is new to the organization (it has not been done before),
utilizes resources from many countries, has more than
200 people on the team, lasts longer than one year, and has a budget of
over US 10$ million.
Regardless of whether you work on such projects, you will need to
answer questions on the exam as if you do. There is a big difference
between managing small and large projects. For example, on a small
project, you walk over to the person you need to speak to when you have
an issue to resolve. On a large project, you may have spent weeks
planning communications. When there is an issue, you have to figure out
who is involved and where they are located, look up their preferred
method of communication and their contact information, and then
communicate with them in that way.
1. Another thing to keep in mind for the exam is that you should assume
project proposals are formally reviewed and approved by management
in your organization after a comparison of all proposed projects. Projects
are not selected arbitrarily or informally. (See the Business Case and
Project Selection discussions in the Integration Management chapter.)
2. When answering exam questions there is a PMO in the organization,
unless the questions state otherwise. Read situational questions carefully
to determine if the PMO is supportive, controlling, or directive.
3. The exam typically does not identify the form of organization being
discussed. When it does not specify a form, assume matrix. If you
remember this, you should get a few more questions right.
4. Think of enterprise environmental factors as what they really are-
company culture and existing systems that the project will have to deal
23
with or can make use of. They could also be thought of as the company
"baggage" that comes with the project and is outside the control of the
project team. Use this trick to more easily understand the meaning of
questions or the choices on the exam, no matter how the term "enterprise
environmental factors" is used
5. An input means:
What do I need before I can.
6. An output means:
What will I have when I am done with
Or, what am I trying to achieve when I am doing
Inputs and output are logical. If you really know project management, they
should not require memorization. So what is an input to a WBS? If you
cannot give some form of answer right now, you may need more basic
training before preparing for the exam. Make sure you read the Create WBS
discussion carefully in the Scope Management chapter and pay attention
throughout this book to when and how the WBS is used.
Do not expect all the inputs tested on the exam to be included or dearly
stated in the PMBOK Guide. For example, you know you need the project
team (or at least an initial version of the project team) to create a work
breakdown structure, yet the team is not specifically listed as an input to
creating the work breakdown structure in the PMBOK Guide. The
remaining chapters of this book will help you understand the processes of
project management and the inputs and outputs so you can see the logic
behind them.
24
3.PROJECT MANAGEMENT
PROCESSES
Figure (3- 1):PM Processes Groups
Table(3- 1): PM Processes Groups
Processes Groups
1. Initiating 4. Monitor and Control
2. Planning 5. Closing
3. Executing
Table(3- 2):PM Knowledge Areas
Knowledge Area
1. Integration Management 6. HR Management
2. Scope Management 7. Communication Management
3. Cost Management 8. Risk Management
4. Time Management 9. Procurement Management
5. Quality Management 10. Stakeholder Management
25
3.1 Initiating Process Group

The Initiating Process Group consists of the processes that project phase.
The Initiating Process Group starts a project or project phase ,and the
output defines the projects purpose ,identifies objectives ,and authorizes
the project manager to start the project.
3.1.1 Stakeholders in the Initiating Processes
Initiating processes are often done external to the projects scope of
control by the organization or by program or portfolio processes, which
may blur (hazy( the project boundaries for the initial project inputs.
Involving the customers and other stakeholders during initiation generally
improves the probability of shared ownership ,deliverable acceptance ,
and customer and other stakeholder satisfaction .Such acceptance is
critical to project success.
3.2Planning Process Group
The project management team uses the Planning Process Group to plan
and manage a successful project for the organization.
The planning processes develop the project management plan.
These processes also identify ,define ,and mature the project scope ,
project cost ,and schedule the project activities that occur within the
project.
As new project information is discovered ,additional dependencies ,
requirements ,risks ,opportunities ,assumptions ,and constraints will be
identified or resolved.
3.3 Executing Process Group
This Group consists of the processes used to complete the work defined
in the project management plan to accomplish the projects requirements.
integrating and performing the activities of the project
The vast great majority of the projects budget will be expended in
performing its processes.
26
3.4 Monitoring & Controlling Process Group

This Group consists of those processes performed to observe project
execution so that potential problems can be identified in a timely manner
and corrective action can be taken ,when necessary ,to control the
execution of the project.
The key benefit of this Process Group is that project performance is
observed and measured regularly to identify variances from the project
management plan .It also includes controlling changes and
recommending preventive action in anticipation of possible problems.
The continuous monitoring provides the project team insight into the
health of the project and highlights any areas that require additional
attention.
It should not only monitor and control the work being done within a
Process Group ,but also monitors and controls the entire project effort .In
multi-phase projects.
This Group also provides feedback between project phases ,in order to
implement corrective or preventive actions to bring the project into
compliance with the project management plan.
3.5 Closing Process Group
This Group includes the processes used to formally terminate all activities
of a project or a project phase, hand off the completed product to others
or close a cancelled project.
This Process Group ,when completed ,verifies that the defined processes
are completed within all the Process Groups to close the project or a
project phase, as appropriate ,and formally establishes that the project or
project phase is finished.
3.6 Common Definitions in The Project Processes
A process is a series of actions bringing about a result Project
Management Process Groups are linked by the objectives they produce ,
27
with the results or outcomes of one generally becoming an input to

another or is a deliverable of the project.
Inputs
Tools &Techniques
Documents or outputs
documentable Mechanism applied
items that will be Documents or
for the inputs to documentable
acted upon.
create the outputs items that are a
result of the
process
Figure (3- 2):Description of The Process
3.6.1 Common Inputs:

3.6.1.1 Enterprise Environmental Factors
Appears as an input into most planning processes.
Can be anything external to your project that affects your project.
The things that impact your project that are not part of the project itself ,
such as:
Company's organizational structure,
Organization's values and work ethic,
Government standards, laws and regulations where the work is being
performed or where the product will be used,
The characteristics of project's stakeholders (their expectations and
willingness to accept risk(
The overall state of the marketplace for the project,
Business infrastructure systems,
Personnel policies,
PMIS (Project Management Information Systems).
3.6.1.2 Organizational Process Assets
Information ,tools, documents, or knowledge,
28
organization possess that can help you plan for your project,
The project plan from a previous ,similar project performed by your
organization,
Company policy: adds structure and lets you know the limits your project
can safely operate within, so you do not have to waste time or resources
discovering these on your own,
Anything that your organization owns or has developed that can help you
on a current or future project.
Examples:
o Templates for common project documents,
o Examples from a previous project plan,
o Software tools,
o Databases of project information :Project files and records,
o Historical information,
o Lessons learned,
o Process definitions,
o Organization communication needs,
o Criteria to complete (close),
o Financial infrastructure,
o Issue management,
o Change control processes,
o Risk management,
o Work authorization,
o The corporate knowledge base,
o Process data,
o Configuration management,
o Organizational policies, procedures ,and guidelines for any area (risk
financial, ,reporting change control ,etc).
29
3.6.1.3 Project Management Plan

The most important document for a project
The culmination of all the planning processes.
A single approved document that guides execution ,monitoring and
control ,and closure.
It is actually made up of several documents however, once these
component documents become approved as the project management plan ,
they become fused together as one document.
May be documented at a summary level ,or it may be very detailed.
List of The Components That Make Up the Project Management Plan:
o Project scope management plan,
o Schedule management plan,
o The schedule baseline,
o The resource calendar,
o Cost management plan,
o The cost baseline,
o Quality management plan,
o The quality baseline,
o Process improvement plan,
o Staffing management plan,
o Communications management plan,
o Risk management plan,
o The risk register,
o Procurement management plan,
/3.6.1.4 Approved Change Requests
These are only requests until they are approved,
If a change is requested ,then the change is processed according to the
integrated change control system. This will ensure that the change request,
30
is properly understood and considered and that the right individuals or

departments are involved before approving or rejecting it.
Table(3- 3):Differentiation between The Project Management Plan and

Project Documents
Project Management Plan Project Documents

Change management plan Activity attributes Project staff assignments
Communications management plan Activity cost estimates Project statement of work
Configuration management plan Activity duration estimates Quality checklists
Quality control
Cost baseline Activity list
measurements
Cost management plan Activity resource requirements Quality metrics
Human resource management plan Agreements Requirements documentation
Requirements traceability
Process improvement plan Basis of estimates
matrix
Resource breakdown
Procurement management plan Change log
structure
Scope baseline:
Project scope statement
Change requests Resource calendars
WBS
WBS dictionary
Forecasts
Quality management plan Cost forecast Risk register
Schedule forecast
Requirement management plan Issue log Schedule data

Risk management plan Milestone list Seller proposals
Schedule baseline Procurement documents Source selection criteria
Schedule management plan Procurement statement of work Stakeholder register
Team performance
Scope management plan Project calendars
assessments
Project charter Work performance data

Project funding requirements Project Work performance
Stakeholder management plan
schedule information Work
Project schedule network diagrams performance reports
31
Used as an input into many processes to make sure that the change gets
executed and is properly managed and controlled.
Examples :You may receive a change request to add functionality to a
computer application ,to remove part of a building ,or to change materials.
3.6.2 Common Tools and Techniques
3.6.2.1 Expert Judgment
Can be used whenever the project team and the project manager do not
have sufficient expertise,
Experts come from inside the organization or outside ,can be paid
consultants or offer free advice,
This tool is highly favored and is very commonly founded on planning
processes.
3.6.2.2 Project Management Methodology
The PMBOK guide does not describe a methodology,
The PMBOK guide describes 47 processes used to manage a project,
which are used by an organization's project management methodology,
but they are not the methodology,
Different organizations will employ different project management
methodologies ,while they will all adhere to the 47 processes.
Example:
o Consider the analogy of two baseball teams.
o The Atlanta Braves and the New York Mets both have the same set of
rules when they play ,but they have very different strategies of how they
will capitalize on those strengths and use those rules to their advantages.
o The rules would equate to the processes ,and the strategy to methodology.
3.6.2.3 Project Management Information System (PMIS)
The system that helps you produces and keeps track of the documents and
deliverables.
32
Example :a PMIS might help your organization produce the project

charter by having you fill in a few fields on a computer screen. It might
then generate the project charter and set up a project billing code with
accounting.
While the PMIS usually consists primarily of software ,it will often
interface with manual systems.
PMIS will contain the configuration management system, which also
contains the change control system
3.6.3 Common Outputs
3.6.3.1 Updates (All Categories)
Project Information
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 in-discriminate 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.
33
Project Information Work Performance Data

Work performance data: the raw observations and measurements
identified during activities performed to carry out the project work.
Examples include reported percent of work physically completed ,quality
and technical performance measures ,start and finish dates of schedule
activities ,number of change requests ,number of defects ,actual costs ,
actual durations ,etc.
Work Performance Information
Work performance information :the performance data collected from
various controlling processes, analyzed in context and integrated based
on relationships across areas.
Examples of performance information are status of deliverables ,
implementation status for change requests ,and forecasted estimates to
complete.
Project Information Work Performance Reports
Work performance reports :the physical or electronic representation of
work performance information compiled in project documents ,intended
to generate decisions or raise issues ,actions ,or awareness.
Examples include status reports ,memos, justifications, information notes ,
electronic dashboards.
34
Figure (3- 3):Project Management Processes Interactions
35
36
4. PROJECT INTEGRATION
MANAGEMENT
Table(4 - 1):Project Integration Management Overview
4.1 Develop Project Charter

It 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.
Inputs
1. Project statement Tools &Techniques
of work
2. Business case outputs
3. Agreements
4. Enterprise
environmental 1. Expert judgment
factors 2. Facilitation
5. Organizational techniques
1. Project charter
process assets
Figure (4 - 1):Develop Project Charter Process
37
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.
OUTPUTS
1. Project Charter
The project charter documents the business needs current understanding
of the customers needs, and the new product, service ,or result that it is
intended to satisfy ,such as:
o Project purpose or justification,
o Measurable project objectives and related success criteria,
o High-level requirements,
o High-level project description
o High-level risks,
o Summary milestone schedule,
o Summary budget,
o Project approval requirements )what forming project success ,who
decides the project is successful ,and who signs off on the project),
o Assigned project manager ,responsibility ,and authority level ,and
o Name and authority of the sponsor or other person(s) authorizing the
project charter.
INPUTS
1. Project Statement of Work
The statement of work )SOW( is a narrative description of products or
services to be delivered by the project .For internal projects ,the project
initiator or sponsor provides the statement of work based on business needs,
product, or service requirements .For external projects ,SOW can be
received from the customer as part of a bid document, for example, request
for proposal, request for information ,request for bid ,or as part of a contract.
And will consider the following;
38
o Business Need: An organizations business need may be based on a market

demand, technological advance ,legal requirement ,or government
regulation.
o Product Scope Description: These documents the characteristics of the
product that the Project will be undertaken to create. The description
should also document the relationship between the products or services
being created and the business need that the project will address.
o Strategic Plan: All projects should support the organizations strategic
goals the strategic plan of the performing organization should be
considered as a factor when making project selection decisions and
prioritization.
2. Business Case
The business case or similar document provides the necessary information
from a business standpoint to determine whether or not the project is worth
the required investment.
Typically, business need and cost benefit analysis are contained in the
business case to justify the project.
The requesting organization or customer ,in the case of external projects ,
may write the business case .The business case is created as a result of one
or more of the following:
o Market Demand (e.g ,.a car company authorizing a project to build
more fuel-efficient cars in response to gasoline shortages),
o Organizational Need )e.g ,.a training company authorizing a project to
create a new course to increase its revenues),
o Customer Request )e.g ,.an electric utility authorizing a project to build
a new substation to serve a new industrial park) ,
o Technological Advance ) e.g ,.an electronics firm authorizing a new
project to develop a faster ,cheaper ,and smaller laptop after advances in
computer memory and electronics technology)
39
o Legal Acquirement (e.g,. a paint manufacturer authorizing a project to

establish guidelines for handling toxic materials)
o Environmental Impacts) e.g., a company undertakes a project to lessen
its environmental impact) or
o Social Need )e.g,. a non-governmental organization in a developing
country authorizing a project to provide potable water systems ,latrines ,
and sanitation education to communities suffering from high rates of
cholera).
In the case of multi-phase projects the business case may be periodically
reviewed to ensure that the project is on track to deliver the business
benefits. In the early stages of the project lifecycle, periodic review of the
business case by the sponsoring organization also helps to confirm that
the project is still required.
3. Agreements
A contract is an input if the project is being done for an external customer.
4. Enterprise Environmental Factors
The enterprise environmental factors that can influence the Develop
Project Charter process include ,but are not limited to:
o Governmental or industry standard.
o Organization infrastructure.
o Marketplace conditions.
5. Organizational Process Assets
The organizational process assets that can influence the Develop Project
Charter process include ,but are not limited to:
o Organizational standard processes ,policies ,and standardized process
definitions for use in the organization;
o Templates (e.g ,.project charter template) ;and Historical information
and lessons learned knowledge base.
40
TOOLS & TECHNIQUES

1. Expert Judgment
Expert judgment is often used to assess the inputs used to develop the
project charter .Such judgment and expertise is applied to any technical
and management details during this process.
Such expertise is provided by any group or individual with specialized
knowledge or training ,and is available from many sources ,including:
o Other units within the organization,
o Consultants,
o Stakeholders, including customers or sponsors,
o Professional and technical associations,
o Industry groups,
o Subject matter experts ,and
o Project management office )PMO.(
2. Facilitation Techniques
Facilitation techniques have broad application within project management
processes and guide the development of the project charter.
Brainstorming ,conflict resolution ,problem solving ,and meeting
management are examples of key techniques used by facilitators to help
teams and individuals accomplish project activities
It is the process of defining ,preparing ,and coordinating all subsidiary
plans and integrating them into a comprehensive project management
plan.
The key benefit of this process is a central document that defines the basis
of all project work.
The project management plan defines how the project will be executed ,
monitored and controlled ,and closed.
The project management plans content varies depending upon the
application area and complexity of the project.
41
It is developed through a series of integrated processes extending through

project closure.
This process results in a project management plan that is progressively
elaborated by updates ,and controlled and approved through the Perform
Integrated Change Control process section (5.4).
4.2 Develop Project Management Plan
Inputs
1. Project charter Tools &Techniques
2. Outputs from
other processes outputs
3. Enterprise
factors 2. Facilitation
4. Organizational techniques 1. Project
process assets management plan
Figure (4 - 2):Develop Project Management Plan Process
INPUTS
1. Outputs from Other Processes
Outputs from many of the other processes described in Sections 5 through
13 are integrated to create the project management plan.
Any baselines and subsidiary management plans that are an output from
other planning processes are inputs to this process.
In addition, updates to these documents can contain necessary updates to
the project management plan.
The organizational process assets that can influence the Develop Project
Management Plan process include ,but are not limited to:
o Standardize guidelines, work instructions, proposal evaluation criteria ,
and performance measurement criteria,
42
o Project management plan template: Elements of the project management

plan that may be updated include, but are not limited to:
Guidelines and criteria for forming the organizations set of standard
processes to satisfy the specific needs of the project ,and Project closure
guidelines or requirements like the product validation and acceptance
criteria.
Change control procedures including the steps by which official company
standards ,policies ,plans ,and procedures ,or any project documents will
be modified and how any changes will be approved and validated,
Project files from past projects (e.g,. scope, cost, schedule and ,
performance measurement baselines, project calendars, project schedule
network diagrams, risk registers, planned response actions ,and defined
risk impact)
Historical information and lessons learned knowledge base ,and
Configuration management knowledge base containing the versions and
baselines of all official company standards, policies, procedures ,and any
project documents.
Refer to both internal & external environmental factors that surround or
influence a project's success.
It may enhance or constrain PM options and may have a positive or
negative influence on the outcome.
For this process it includes but are not limited to:
o Governmental or industry standards,
o Organization infrastructure ,and
o Marketplace conditions.
TOOLS & TECHNIQUES
Expert Judgment
When developing the project management plan, expert judgment is
43
applied utilized to:

o Tailor the process to meet the project needs,
o Develop technical and management details to be included in the project
management plan,
o Determine resources and skill levels needed to perform project work,
o Define the level of configuration management to apply on the project.
Determine which project documents will be subject to the formal change
control process.
OUTPUTS
1. Project Management Plan
Integrates and consolidates all of the subsidiary management plans and
baselines from the planning processes ,but are not limited to:
o Schedule management plan,
o Quality management plan,
o Process improvement plan,
o Human resource plan,
o Communications management plan,
o Risk management plan ,and Procurement management plan.
4.3 Direct and Manage Project Work
Perform activities to accomplish project requirements,
Create project deliverables,
Staff ,train ,and manage the team members assigned to the project
Obtain, manage, and use resources including materials, tools, equipment ,
and facilities,
Establish and manage project communication channels, both external and
internal to the project team,

44
Inputs
Tools &Techniques
1. Project outputs
management plan
2. Approved change
1. Deliverables
requests 1. Expert judgment 2. Work performance
3. Enterprise 2. Project data
environmental management
3. Change requests
factors information system 4. Project management
4. Organizational 3. Meetings plan updates
process assets 5. Project documents
updates
Figure (4 - 3):Direct and Manage Project Work Process
Generate project data ,such as cost ,schedule ,technical and quality

progress, and status to facilitate forecasting,
Issue change requests and adapt approved changes into the projects
scope ,plans ,and environment,
Manage risks and implement risk response activities
Manage sellers and suppliers ,and
Collect and document lessons learned, and implement approved process
improvement activities.
Direct and Manage Project Execution also requires implementation of
approved changes covering:
o Corrective Action .Documented direction for executing the project work
to bring expected future performance of the project work in line with the
project management plan.
o Preventive Action .A documented direction to perform an activity that
can reduce the probability of negative consequences associated with
project risks.
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o Defect Repair .The formally documented identification of a defect in a

project component with a recommendation to either repair the defect or
completely replace the component.
OUTPUTS
1. Deliverables
An approved deliverable is any unique and verifiable product ,result, or
capability to perform a service that must be produced to complete a
process ,phase ,or project.
2. Project Management Plan(updates)
Requirements management plan.
Schedule management plan.
Cost management plan.
Quality management plan.
Human resource plan.
Communications management plan.
Risk management plan.
Procurement management plan ,and Project baselines.
3. Project Documents Management) updates(
Requirements documents,
Project logs (issue, assumptions, etc.),
Risk register, and Stakeholder register.
4.4 Monitoring & Control Project Work
Monitor and Control Project Work is the process of tracking ,reviewing ,
and reporting the progress to meet the performance objectives defined in
the project management plan,
The key benefit of this process is that it allows stakeholders to
understand the current state of the project ,the steps taken ,and budget.
schedule ,and scope forecasts,
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Monitoring is a side of project management performed throughout the

project,
Monitoring includes collecting ,measuring ,and distributing performance
information ,and assessing measurements and trends to effect process
improvements,
Continuous monitoring gives the project management team insight into
the health of the project and identifies any areas that may require special
attention.
Inputs
Tools &Techniques
1. Project
management plan outputs
2. Schedule forecasts
3. Cost forecasts
4. Validated changes 1. Expert judgment
5. Work performance 2. Analytical 1. Change requests
information techniques 2. Work performance
6. Enterprise 3. Project management reports
environmental information system 3. Project management
factors 4. Meetings plan updates
7. Organizational 4. Project documents
process updates
assets
Figure (4 - 4):Monitoring & Control Project Work Process
Control includes determining corrective or preventive actions or re-

planning and following up on action plans to determine whether the
actions taken resolved the performance issue.
The Monitor & Control Project Work process is concerned with:
o Comparing actual project performance against the project management
plan.
o Assessing performance to determine whether any corrective or
preventive actions are indicated ,and then recommending those actions
as necessary.
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o Identifying new risks and analyzing ,tracking ,and monitoring existing

project risks to make sure the risks are identified ,their status is reported ,
and that appropriate risk response plans are being executed.
o Monitoring implementation of approved changes as they occur.
o Providing reports and information to support status reporting ,progress
measurement ,and forecasting to update current cost and current schedule
information.
INPUTS
1. Work Performance Information
Work performance information is the performance data collected from
various controlling processes ,analyzed in context ,and integrated based
Thus, work performance data has been transformed into work
performance information.
Data in itself cannot be used in the decision-making process as it has only
out-of-context meaning.
Work performance information ,however ,is correlated and
contextualized ,and provides a sound foundation for project decisions.
Work performance information is circulated through communication
processes.
Examples of performance information are status of deliverables.
Implementation status for change requests ,and forecasted estimates to
complete.
The enterprise environmental factors that can influence the Monitor and
Control Project Work process include ,but are not limited to:
o Governmental or industry standards (e.g ,.regulatory agency regulations ,
product standards ,quality standards and workmanship standards,)
o Company work authorization system,
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o Stakeholder risk tolerances ,and

o Project management information systems (e.g ,.an automated tool suite,
such as a scheduling software tool ,a configuration management system ,
an information collection and distribution system or web interfaces to
other online automated system.
o The organizational process assets that can influence the Monitor and
Control Project Work process include but are not limited to organization
communication requirements,
o Financial controls procedures (e.g., time reporting, accounting codes,
expenditure and disbursement reviews, and standard contract
provisions),
o Issue and defect management procedures,
o Risk control procedures including risk categories, probability definition
and impact, and probability and impact matrix,
o Process measurement database used to make available measurement data
on processes and products, and
o Lessons learned database.
TOOLS & TECHNIQUES
1. Expert Judgment
Expert judgment is used by the project management team to interpret the
information provided by the monitor and control processes.
The project manager, in collaboration with the team ,determines the
actions required to ensure project performance matches expectations.
2. Analytical Techniques
Analytical techniques are applied in project management to forecast
potential outcomes based on possible variations of project or
environmental variables and their relationships with other variables.
Examples of analytical techniques used in projects are:
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o Regression analysis,
o Grouping methods,
o Causal analysis,
o Root cause analysis,
o Forecasting methods (e.g., Time series, scenario building, simulation, ),
o Failure Mode and Effect Analysis (FMEA),
o Fault Tree Analysis (FTA),
o Reserve analysis,
o Trend analysis,
o Earned value management, and
o Variance analysis.
OUTPUTS
1. Change Requests
As a result of comparing planned results to actual results, change requests
may be issued which may expand ,adjust ,or reduce project or product
scope.
Changes can impact the project management plan, project documents ,or
product deliverables.
Changes may include ,but are not limited to the following:
o Corrective action. A documented direction for executing the project
work to bring expected future performance of the project work in line
with the project management plan.
o Preventive action. A documented direction to perform an activity that
can reduce the probability of negative consequences associated with
project risks.
o Defect repair. The formally documented identification of a defect in a
project component with a recommendation to either repair the defect or
o completely replace the component.
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2. Work Performance Reports

Work performance reports are the physical or electronic representation of
work performance information compiled in project documents ,intended
to generate decisions ,actions ,or awareness.
Project information may be communicated verbally from person to
person .However ,in order to record ,store ,and sometimes distribute work
performance information ,a physical or electronic representation in the
form of project documents is required
Work performance reports are a subset of project documents.
Specific work performance metrics may be defined at the start of the
project and included in the normal work performance reports provided to
key stakeholders.
Examples of work performance reports include status reports ,memos ,
justifications ,information notes ,recommendations ,and updates.
3. Project Management Plan (updates)
Project management plan elements that may be updated include ,but are
not limited to:
o Schedule management plan.
o Cost management plan.
o Quality management plan.
o Scope baseline.
o Schedule baseline ,and Cost performance baseline
4. Project Documents (updates)
Project documents that may be updated include ,but are not limited to:
o Forecasts.
o Performance reports and Issue log.
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4.5 Perform Integrated Change Control.

The Perform Integrated Change Control process includes the following
change management activities in differing levels of detail ,based upon the
progress of project execution:
Influencing the factors that circumvent integrated change control so that
only approved changes are implemented;
Reviewing ,analyze and approving change requests promptly, which is
essential ,as a slow decision may negatively affect time, cost, or the
feasibility of a change.
Inputs
Tools &Techniques
1. Project management
plan outputs
2. Work performance
reports 1. Approved change
3. Change requests requests
1. Expert judgment
4. Enterprise 2. Change log
2. Meetings
environmental 3. Project management
3. Change control tools
factors plan
5. Organizational updates
updates
Figure (4- 5):Perform Integrated Change Control Process
Managing the approved changes;

Maintaining the integrity of baselines by releasing only approved changes
for incorporation into the project management plan and project
documents;
Reviewing approving or denying all recommended corrective and
preventive actions;
Coordinating changes across the entire project (e.g ,.a proposed schedule
change will often affect cost ,risk ,quality ,and staffing) ;and
Documenting the complete impact of change requests.
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Changes may be requested by any stakeholder involved with the project.

Although they may be initiated verbally ,they should always be recorded
in written form and entered into the change management and/or
configuration management system.
Change requests are subject to the process specified in the change control
and configuration control systems. Those change request processes may
require information on estimated time impacts and estimated cost impacts.
Every documented change request must be either approved or rejected by
some authority within the project management team or an external
organization.
On many projects the project manager is given authority to approve
certain types of change requests as defined in the projects roles and
responsibilities documentation.
Whenever required ,the Perform Integrated Change Control process
includes a change control board (CCB) responsible for approving or
rejecting change requests.
The roles and responsibilities of these boards are clearly defined within
the configuration control and change control procedures ,and are agreed
upon by appropriate stakeholders.
Many large organizations provide for a multi-level board structure
separating responsibilities among the boards.
If the project is being provided under a contract, then some proposed
changes may need to be approved by the customer as per the contract
Approved change requests can require new or revised cost estimates,
activity sequences ,schedule dates ,resource requirements ,and
analysis of risk response alternatives.
These changes can require adjustments to the project management plan
or other project management plans/documents.
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The applied level of change control is dependent upon the application

area ,complexity of the specific project ,contract requirements ,and the
context and environment in which the project is performed.
A configuration management system with integrated change control
provides a standardized ,effective ,and efficient way to centrally manage
approved changes and baselines within a project.
Configuration control is focused on the specification of both the
deliverables and the processes while change control is focused on
identifying ,documenting and controlling changes to the project and the
product baselines.
Project-wide application of the configuration management system.
including change control processes, accomplishes three main objectives:
o Establishes an evolutional )developmental) method to consistently
identify and request changes to established baselines, and to assess the
value and effectiveness of those changes,
o Provides opportunities to continuously validate and improve the project
by considering the impact of each change ,and
o Provides the mechanism for the project management team to
consistently communicate all approved and rejected changes to the
stakeholders.
TOOLS & TECHNIQUES
1. Meetings
A change control board is responsible for meeting and reviewing the change
requests and approving or rejecting those change requests.
The roles and responsibilities of these boards are clearly defined and are
agreed upon by appropriate stakeholders.
All change control board decisions are documented and communicated to
the stakeholders for information and follow -up actions.
54
2. Change Control Tools

In order to facilitate configuration and change management ,manual or
automated tools may be used .
Tool selection should be based on the needs of the project stakeholders
including organizational and environmental considerations and/or
constraints.
Tools are used to manage the change requests and the resulting decisions .
Additional considerations should be made for communication to assist the
CCB members in their duties as well as distribute the decisions to the
appropriate stakeholders.
3. Expert Judgment
In addition to the project management teams expert judgment,
stakeholders may be asked to provide their expertise and may be asked to
sit on the change control board. Such judgment and expertise is applied to
any technical and management details during this process and may be
provided by various sources, for example:
o Consultants,
o Stakeholders, including customers or sponsors,
o Professional and technical associations,
o Industry groups,
o Subject matter experts, and
o Project management office (PMO).
OUTPUTS
1. Project Documents )updates)
Project documents that may be updated as a result of the Perform of
Integrated Change Control process include the change request log and any
documents that are subject to the formal change control process.
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2. Approved Change Requests

Change requests are processed according to the change control system by
the project manager or by an assigned team member.
Approved change requests will be implemented by the Direct and Manage
Project Execution process.
The status of all changes ,approved or not ,will be updated in the change
request log as part of the project document updates.
Elements of the project management plan that may be updated include
Any subsidiary management plans. Baselines that are subject to the
formal change control process.
Changes to baselines should only show the changes from the current time
forward .Past performance may not be changed.
This protects the integrity of the baselines and the historical data of past
performance.
4.6 Close Project or Phase
Close Project or Phase is the process of finalizing all activities across all
of the Project Management Process Groups to formally complete the
project or phase.
The key benefit of this process is that it provides lessons learned ,the
formal ending of project work ,and the release of organization resources
to pursue new endeavors.
When closing the project ,the project manager reviews all prior
information from the previous phase closures to ensure that all project
work is completed and that the project has met its objectives.
Since project scope is measured against the project management plan ,the
project manager reviews the scope baseline to ensure completion before
considering the project closed.
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Inputs
Tools &Techniques
1. Project outputs
management plan
2. Accepted 1. Expert judgment 1. Final product,
deliverables 2. Analytical service, or
3. Organizational techniques result transition
process assets 3. Meetings 2. Organizational
process
assets updates
Figure (4- 6):Close Project or Phase Process
The Close Project or Phase process also establishes the procedures to

investigate and document the reasons for actions taken if a project is
terminated before completion.
In order to successfully achieve this ,the project manager needs to engage
all the proper stakeholders in the process.
This includes all planned activities necessary for administrative closure
of the project or phase ,including step by -step methodologies that address:
o Actions and activities necessary to satisfy completion or exit criteria for
the phase or project;
o Actions and activities necessary to transfer the projects products ,
services ,or results to the next phase or to production and/or operations,
Activities needed to collect project or phase records ,audit project
success or failure ,gather lessons learned and archive project information
for future use by the organization.
INPUTS
1. Accepted Deliverables
Those deliverables that have been accepted through the Validate Scope
process in Section5.5.
TOOLS & TECHNIQUES
1. Meetings
57
No project is successful without appropriate and well-run meetings.

Meetings are initiated to provide information exchanges, discussion
opportunities for brainstorming, or decision making forums.
Good meetings tend to have the following characteristics:
They are prepared for in advance. A specific agenda, purpose, objective,
and timeframe is provided to participants they include individuals that are
appropriate to the topic being discussed to facilitate the meetings purpose
OUTPUTS
1. Final Product ,Service or Result Transition
This output refers to the transition of the final product ,service ,or result
that the project was authorized to produce( or in the case of phase closure,
the intermediate product, service ,or result of that phase(
2. Organizational Process Assets (updates)
The organizational process assets that are updated as a result of the Close
Project or Phase process include ,but are not limited to:
o Project files: Documentation resulting from the projects activities ,for
example ,project management plan ,scope ,cost ,schedule and project
calendars, risk registers, change management documentation ,planned
risk response actions ,and risk impact.
o Project or Phase Closure Documents: Project or phase closure documents,
consisting of formal documentation that indicates completion of the
project or phase and the transfer of the completed project or phase
deliverables to others ,such as an operations group or to the next phase.
o During project closure the project manager reviews prior phase
documentation, customer acceptance documentation from Validate Scope
5.5 and the contract (if applicable,) to ensure that all project requirements
are complete prior to finalizing the closure of the project.
o If the project was terminated prior to completion ,the formal
documentation indicates why the project was terminated and formalizes
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the procedures for the transfer of the finished and unfinished deliverables
of the cancelled project to others.
Historical information: Historical information and lessons learned
information are transferred to the lessons learned knowledge base for use
by future projects or phases .This can include information on issues and
risks as well as techniques that worked well that can be applied to future
projects.
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4.7 Integration Tips & Tricks

Integration is about balancing all the processes in the
knowledge areas (scope, time, cost, quality, human
resource, communications, risk, procurement, and
stakeholder management) with each other, project
management processes do no happen independently. in order to complete
a cost estimate, for example, the number of resource on the project, the
scope being estimated, the risk reserves, etc., should be taken into account,
as another example, adding a new resource to the project may require cost
or schedule changes. In dealing with each situation that comes up on a
project, manager is integrating the processes of a project management.
The exam may present questions about project selection in the
following ways:
Easier questions may be direct, such as "What type of project selection
technique is linear programming?" The answer is "a constrained
optimization method:' the exam has not required test takers to know what
"constrained optimization method" or the other project selection methods
mean. Instead, just know what categories the methods fall into.
The exam may also ask more challenging questions relating to business
cases and project selection methods. You need to understand that there is
a selection process for a project, to know what that process is, and to know
that the project must support the company's strategic goals.
The exam may use project selection concepts like internal rate of return as
distracters. Such information may be provided in the question when
you do not need the data to answer the question. Read the questions
carefully to pick out which data is relevant.
Here is a trick to understanding the topic of management plans for the
exam. Know that management plans look forward in time, and that there
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are management plans for all the knowledge areas. There are also the
following management plans:
Change management plan,
Configuration management plan
Requirements management plan,
Process improvement plan.
When taking the exam, assume the project manager has created each of
these management plans. For example, if a question talks about a problem
on a project, the answer might be for the project manager to look at the
management plan for that aspect of the project to see how the plan says to
handle such a problem. Or when the work is being done, the project
manager might refer to the cost management plan to see how costs are
supposed to be measured on the project.
How would you like to get a sophisticated question right without studying?
You need to understand the following: deviations from baselines are often
due to incomplete risk identification and risk management.
Therefore, if the exam asks what to do when a project deviates
significantly from established baselines, the correct answer is likely the
one about reviewing the project's risk management process. Many project
managers do not understand that such an effort should be done. Does it
make sense to you now that we've pointed it out?
Baselines are mentioned frequently on the exam. Make sure you
understand the concepts described here and what the project manager's
attitude should be regarding the project's baselines and any changes to
those baselines.
Please note the confusing terms. If the exam talks about monitoring and
controlling project work, it may NOT be talking about the entire
monitoring and controlling process group. Instead, it may just be referring
to the integration management' process
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Remember that monitoring and controlling means measuring against the

project management plan. As you already know, scope may be completed
on a project but the quality may not be acceptable, or the schedule might be
met but at excessive costs.
Monitor and Control Project Work is an integration function, because the
project manager must balance the demands of the different knowledge areas
to control the project.
This process also involves monitoring any other performance measures that
were included in the project management plan.
Keep in mind that a project must be controlled. This effort all too often does
not happen in the real world. Many project managers do not control their
projects to the project management plan. If the exam asks what you should
do if a work activity on the project takes longer than estimated,
The answer is to request corrective action (discussed later in this section)
to make up for the delay. Such action keeps the project on or dose to
schedule and allows the project manager to feel comfortable that the scope
will be completed according to the budget and schedule agreed to. This
knowledge is the value of controlling the project. What do you do in your
real world?
Closing Tips: Is your project really done when the technical work is done?
Not if you don't close it out! The Close Project or Phase process is one part
of project closing. The other part is the Close Procurements process,
described in the Procurement Management chapter. Together, these two
processes are addressed in about 14 question on the exam. Watch out;
people with limited project management training and experience often have
difficulty with this section on the exam. Many do not seem to understand
the significance of closure and what it does for both the project manager
and the project.
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A Project Manager must get formal acceptance of the project and its
deliverables, issue a final report that shows the project has been successful,
issue the final lessons learned, and index and archive all the project records.
Do you understand the importance of the items included in Ritas Process
Chart? Make sure you become familiar with all the concepts here and
imagine completing these activities in the real world on large projects if
you do not currently do this for your projects. Be sure to remember for the
exam that you always close out a project, no matter the circumstances under
which it stops, is terminated, or is completed. There are financial, legal, and
administrative efforts involved in closing. Let's look again at the activities
presented in Rita's Process Chart. (This list includes efforts in both the
Close Project and Phase and Close Procurements processes.) Confirm work
is done to requirements.
Complete procurement closure.
Gain final acceptance of the product.
Complete financial closure.
Hand off completed product.
Solicit feedback from the customer about the project.
Complete final performance reporting.
Index and archive records.
Gather final lessons learned and update knowledge base.
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5. PROJECT SCOPE MANAGEMENT

What Does The Scope Knowledge Area Do ?
It 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.
Project Scope Management defines and controls all of work included
and not included in the plan.
It makes sure that everyone agrees with the scope.
Table (5- 1):Project Scope Management Overview
Monitoring &
Planning
Controlling
5.1
Plan Scope Management 5.5
5.2 Validate Scope
Collect Requirements
5.3
Define Scope 5.6
5.4 Control Scope
Create WBS
Things to Know About Scope Management

You must plan ,how you will determine the scope ,manage and control it.
Scope must be defined ,clear ,and formally approved before work starts.
Requirements are gathered from all stakeholders ,not just a person signed
you.
Requirements can take an essential time ,for large project many have
1000s of people.
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A WBS is used on all projects ,a benefit of it that you may find additional
scope.
Any changes to scope must be evaluated for its efforts on time ,cost ,risk ,
quality ,resources ,and customer satisfaction.
No change to scope is allowed without an approved change request.
Scope changes not approved if they relate to work doesnt fit within
project charters.
You need to continuously determine what does and doesnt included in
the project
Gold Plating
Scope :The work needed to successfully complete the project and only
that work.
Gold plating: Many companies have a culture in which they try to exceed
customer expectations by delivering more than was agreed upon.
Gold Plating increases risk and uncertainty and may inject a host of
potential problems into the project.
Product/Project Scope Management
Product Scope: features & functions that characterize a product or service .
It is the end result which is wanted .It may be created as a part of the
project.
Project Scope :the work that must be done to deliver a product ,service or
a result with the specified features or functions .This work is including
planning ,coordinate and management activities .It is a part of scope
management which It is a part of project management plan .It is measured
against the project management plan.
Project and Product Requirements
Project requirements can include business requirements ,project
management requirements ,delivery requirements etc.
66
Product requirements can include information on technical requirements

security requirements, performance requirements etc.
Management includes the following SCOPE PROCESSES:
1. Plan Scope Management: It is the process of Creating a project scope
management plan that documents how the project scope will be defined ,
validated ,controlled ,and how the work breakdown structure (WBS( will
be created and defined.
2. Collect Requirements: It is the process of defining and documenting
stakeholders needs to meet the project objectives.
3. Define Scope: It is the process of developing a detailed description of the
project and product.
4. Create WBS: Subdivide major project deliverables into smaller, more
manageable components.
5. Validate Scope: Formal acceptance of completed project deliverables.
i.e., a signed document.
6. Control Scope: Control changes to the project scope.
5.1 Plan Scope Management
What happens in Plan Scope Management?
The scope management plan is a component of the project or program
management plan that describes how the scope will be defined ,
developed ,monitored ,controlled ,and validated .The development of the
scope management plan and the detailing of the project scope begin with
the analysis of information contained in the project charter Section
(,4.1.3.1) the latest approved subsidiary plans of the project management
plan (Section 4.2.3.1), historical information contained in the
organizational process assets (Section 2.1.4) ,and any other relevant
enterprise environmental factors (Section 2.1.5) PMBOK Guide.This
plan helps reduce the risk of project scope creep.
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Inputs
Tools &Techniques
1. Project
2. Project charter
3. Enterprise
factors 1. Scope management
2. Meetings plan
4. Organizational
2. Requirements
process assets
management plan
Figure (5- 1):Plan Scope Management Process
OUTPUTS
1. Scope Management Plan
It describes how the scope will be defined ,developed ,monitored ,
controlled ,and validated.
It is a major input into the Develop Project Management Plan process ,
and the other scope management processes.
The components of a scope management plan include, but are not limited
to the processes:
Preparing a detailed project scope statement.
Creation of the WBS from the detailed project scope statement.
How the WBS will be maintained and approved.
How formal acceptance of the completed project deliverables will
be obtained.
Controlling how requests for changes to the detailed project scope
statement will be processed.
This process is directly linked to the Perform Integrated Change Control
Process (Section 4.5).
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The scope management plan can be formal or informal ,broadly framed

or highly detailed ,based on the needs of the project.
2. Requirements Management Plan
Components of the requirements management plan can include ,but are
not limited to:
How requirements activities will be planned ,tracked ,and reported;
Configuration management activities such as how changes to the product ,
service or result requirements will be initiated, how impacts will be
analyzed, how they will be traced, tracked, and reported, as well as the
authorization levels required to approve these changes;
Requirements prioritization process;
Product metrics that will be used and the rationale for using them;
Traceability structure, that is, which requirements attributes will be
captured on the traceability matrix and to which other project documents
requirements will be traced.
TOOLS & TECHNIQUES
1. Meetings
Project teams may attend project meetings to develop the scope
management plan.
Attendee at these meetings may include the project manager, the project
sponsor, selected project team members, selected stakeholders, anyone
with responsibility for any of the scope management processes ,and others
as needed.
INPUTS
Described in Section (4.2.3.1 .)PMBOK Guide Approved subsidiary
plans of the project management plan are used to create the scope
management plan and influence the approach taken for planning scope
and managing project scope.
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2. Project Charter
Described in Section (4.1.3.1) PMBOK Guide The project charter is
used to provide the project context needed to plan the scope management
processes.
It provides the high-level project description and product characteristics
from the project statement of work.
Described in Section (2.1.5) PMBOK Guide The enterprise
environmental factors that can influence the Plan Scope Management
process include ,but are not limited to:
Organizations culture,
Infrastructure,
Personnel administration ,and
Marketplace conditions.
Described in Section (2.1.4) PMBOK Guide The organizational process
assets that can influence the Plan Scope Management process include ,but
are not limited to:
Policies and procedures ,and
Historical information and lessons learned knowledge base.
5.2 Collect Requirements
What happens in Collect Requirements?
The projects success is directly influenced by the care taken in capturing
and managing project and product requirements.
Requirements include the quantified and documented needs and
expectations of the sponsor ,customer ,and other stakeholders.
The requirements need to be elicited ,analyzed ,and recorded in enough
detail to be measured once project execution begins.
Collecting requirements is defining and managing customer expectations.
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Requirements become the foundation of the WBS.

Cost ,schedule ,and quality planning are all built upon these requirements.
The development of requirements begins with an analysis of the
information contained in the project charter and stakeholder register.
Inputs
Tools &Techniques
1. Scope
management plan. outputs
2. Requirements 1. Interviews
management plan 2. Focus groups
3. Stakeholder 3. Facilitated
management workshops 1. Requirements
plan 4. Group creativity documentation
4. Project charter techniques 2. Requirements
5. Stakeholder 5. Group decision- traceability
register making techniques matrix
6. Questionnaires and
surveys
7. Observations
8. Prototypes
9. Benchmarking
10. Context diagrams
11. Document analysis
Figure (5- 2): Collect Requirements Process
INPUTS
1. Stakeholder Register
The stakeholder register is used to identify stakeholders that can provide
information on detailed project and product requirements.
This contains all details related to the identified stakeholders including ,
but not limited to:
Identification Information :Name ,organizational position ,location ,
role in the project ,contact information,
Assessment Information :Major requirements ,main expectations ,
potential influence in the project ,phase in the lifecycle with the most
interest ;and
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Stakeholder Classification :Internal/external, supporter/neutral/resistor.

The stakeholder register is described in Section 10.1 PMBOK Guide
Scope management plan
Requirements management plan
Stakeholder management plan
We will discuss this point in KA#13
Project charter.
TOOLS & TECHNIQUES
1. Interviews
An interview is a formal or informal approach to discover information
from stakeholders by talking to them directly.
Interviewing experienced project participants, stakeholders ,and subject
matter experts can aid in identifying and defining the features and
functions of the desired project deliverables
These interviews can take place between individuals or group setting.
They can also be conducted via e-mail ,phone calls ,letters ,or others.
2. Focus Groups
Focus groups bring together prequalified stakeholders and subject matter
experts to learn about their expectations and attitudes about a proposed
product ,service or result.
It helps to get a specific set of stakeholders 'or subject matter experts'
opinions and requirements for product or an aspect of the project.
The members can discuss their ideas with each other ,but the conversation
is directed by a moderator .Designed to be more conversational than a one
on-one interview.
3. Facilitated Workshops
Requirements workshops are focused sessions that bring key cross
functional stakeholders together to define product requirements.
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Another benefit of this technique is that issues can be discovered and

resolved more quickly than in individual sessions.
4. Group Creativity Techniques
Several group activities can be organized to identify project and product
requirements. Some of the group creativity techniques that can be used are:
Brainstorming: A technique used to generate and collect multiple ideas
related to project and product requirements.
Nominal Group Technique: This technique enhances brainstorming with
a voting process used to rank the most useful ideas for further
brainstorming or for prioritization.
The Delphi Technique.: A selected group of experts answers
questionnaires and provides feedback .reach to Consensus
Mind Maps: It is a diagram of ideas or notes to help generate ,classify ,or
record information. It looks like several trees radiating out a central core
word .Color ,pictures and notations can be used to make the diagram more
readable.
Affinity Diagram: The ideas generated from any other requirements
gathering techniques are sorted into group by similarities.
Each group is then given a title .This sorting it easier to see additional
scopes (or risks( that have not been identified
5. Group Decision Making Techniques
Group decision making is an assessment process of multiple alternatives
with an expected outcome in the form of future actions resolution .These
techniques can be used to generate, classify and prioritize product
requirements.
Unanimously: (everyone agrees) the decision is easy.
Dictatorship: single person makes a decision for the entire group
Majority: more than half
Plurality :(if there is no majority ;the largest numbers of supporters).
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Consensus: (general agreement ;the members who first refuse are

willing to accept) . Almost any of the decision methods described
previously can be applied to the group techniques used in the
requirements gathering process.
6. Questionnaires and Surveys
are written sets of questions designed to quickly accumulate information
from a wide number of respondents.
Questionnaires and/or surveys: are most appropriate with broad
audiences, when quick turnaround is needed, and where statistical
analysis is appropriate.
7. Observations
Observations provide a direct way of viewing individuals in their
environment and how they perform their jobs or tasks and carry out
processes.
8. Prototypes
It is a method of obtaining early feedback on requirements by providing
a working model of the expected product before actually building it.
It may be updated multiple times to incorporate the feedback until the
requirements have been solidified for product
9. Benchmarking
Benchmarking involves comparing actual or planned practices ,such as
processes and operations ,to those of comparable organizations to identify
best practices ,generate ideas for improvement ,and provide a basis for
measuring performance.
The organizations compared during benchmarking can be internal or
external.
10.Context Diagram
The context diagram is an example of a scope model .Context diagrams
visually depict the product scope by showing a business system (process ,
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equipment ,computer system ,etc.) ,and how people and other systems
(actors) interact with it.
Context diagrams show inputs to the business system ,the actor(s)
providing the input ,the outputs from the business system ,and the actor(s)
receiving the output.
11.Document Analysis
Document analysis is used to elicit requirements by analyzing existing
documentation and identifying information relevant to the requirements.
Examples of documents that may be analyzed include ,but are not limited
to: business plans ,marketing literature ,agreements ,requests for proposal ,
current process flows ,logical data models ,business rules repositories ,
application software documentation ,business process or interface
documentation ,use cases ,other requirements documentation ,
problem/issue logs ,policies ,procedures ,and regulatory documentation
such as laws ,codes ,or ordinances ,etc
OUTPUTS
1. Requirements Traceability Matrix
The requirements traceability matrix is a table that links requirements to
their origin and traces them throughout the project life cycle.
The implementation of a requirements traceability matrix helps ensure
that each requirement adds business value by linking it to the business
and project objectives.
It provides a means to track requirements throughout the project life cycle,
helping to ensure that requirements approved in the requirements
documentation are delivered at the end of the project.
Finally, it provides a structure for managing changes to the product scope.
2. Requirements Documentation
Requirements documentation describes how individual requirements
meet the business need for the project.
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Requirements may start out at a high-level and become progressively

more detailed as more is known.
Before being base lined, requirements must be unambiguous (measurable
and testable), traceable ,complete ,consistent and acceptable to key
stakeholders.
The format of a requirements document may range from a simple
document listing all the requirements categorized by stakeholder and
priority ,to more elaborate forms containing executive summary ,detailed
descriptions ,and attachments.
Components of requirements documentation can include, but, are not
limited to:
Business need or opportunity to be seized ,describing the limitations of
the current situation and why the project has been undertaken;
Business and project objectives for traceability
Functional requirements ,describing business processes ,information ,and
interaction with the product ,as appropriate which can be documented
textually in a requirements list ,in models, or both;
Non-functional requirements ,such as level of service, performance ,
safety ,security ,compliance ,supportability ,retention /purge ,etc;.
Quality requirements;
Acceptance criteria;
Business rules stating the guiding principles of the organization;
Impacts to other organizational areas ,such as the call center ,sales force ,
technology groups;
Impacts to other entities inside or outside the performing organization;
Support and training requirementsand ;
Requirements assumptions and constraints.
5.3 Define Scope
What happens in Define Scope?
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Define Scope is the process of developing a detailed description of the

project and product.
The preparation of a detailed project scope statement is critical to project
success and builds upon the major deliverables ,assumptions ,and
constraints that are documented during project initiation.
During planning ,the project scope is defined and described with greater
specificity as more information about the project is known.
Existing risks ,assumptions and constraints are analyzed for completeness.
Inputs
Tools &Techniques
1. Scope
2. Project charter 1. Expert judgment
3. Requirements 2. Product analysis
documentation 3. Alternatives 1. Project scope
4. Organizational generation statement
process assets 4. Facilitated 2. Project documents
workshops updates
Figure (5- 3):Define Scope Process
Smart Project Objectives

Specific Objectives: must be clear and well defined .They must define
what the project includes and excludes.
Measurable Objectives: must be defined in measurable terms which the
project manager must be able to measure and report progress on
Agreed upon The Stakeholder: must agree on project objectives and end
results.
Realistic Objective: must be achievable given the available resources ,
knowledge ,skills and time.
Time (Cost) limited Objectives: must be framed within clear time cost
goals.
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OUTPUTS
1. Project Scope Statement
It says" Here is what we will do on this project "or;
It says" Here is the approved project scope for this project.",
It can take time and involves the expert judgment from in and out of
organization.
It must be identified" What is not in the project to make it clear that such
additions are not allowed.
The PM should consider different approaches to performing the work and
incorporating the needs of the stakeholders into the project
The project scope statement ,along with WBS & WBS dictionary ,
comprises the scope baseline )Part of project management plan.
The project scope statement may include:
Product scope.
Deliverables.
Product acceptance criteria.
What is not part of the project?
Additional risks.
Constraints & Assumptions.
Constraints :are factors that limit the team's options.
Assumptions :are things that are assumed to be true but may not.
They are identified and then managed.
The sponsor ,team ,other stakeholders can identify them and review for
validity throughout the life of the project.
If they change ;the project management plan need to change.
Assumptions analysis is a part of risk management process
2. Project Documents (updates)
For instant but not limited to:
Stakeholder register,
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Requirements documentation ,and

Requirements traceability matrix.
TOOLS & TECHNIQUES
1. Product Analysis
For projects that have a product as a deliverable, as opposed to a service
or result, product analysis can be an effective tool.
Each application area has one or more generally accepted methods for
translating high-level product descriptions into tangible deliverables
Product analysis includes techniques such as product breakdown, systems
analysis, requirements analysis, systems engineering ,value engineering ,
and value analysis.
2. Alternatives Generation
Identifying alternatives is a technique used to generate different
approaches to execute and perform the work of the project.
A variety of general management techniques can be used such as
brainstorming ,lateral thinking ,pair wise comparisons ,etc.
5.4 Create WBS
What is Work Breakdown Structure?
1. Organizes & defines the total scope of the project.
2. Subdivides the project work into smaller ,more manageable pieces of
work.
3. The WBS is created with the help of the team.
4. The first level is completed before the project is broken down further.
5. Each level of the WBS is smaller piece of the level above.
6. The entire project is included in each of the highest level of WBS.
7. The WBS includes only deliverables that are really needed.
8. Deliverables not in the WBS are not part of the project.
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Inputs
Tools &Techniques
1. Scope
2. Project scope
statement
3. Requirements
documentation
4. Enterprise 1. Decomposition 1. Scope baseline
environmental 2. Expert judgment 2. Project documents
factors updates
5. Organizational
process assets
Figure (5- 4):Create WBS Process
5.4.1 Work Package / Planning Package / Control Account:

1. Work Packages:
Lowest level of the WBS.
May be further decomposed into subproject work breakdown structure.
used when project manager is assigning a scope of work to another
organization
Figure (5- 5):Example for WBS Levels
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2. A planning Package: it is a piece of the WBS between the control

account and the work package, and is used to plan known work content
that lacks sufficient work level details
3. A control Account: is a point placed in the WBS above the work
5.4.2 Work Breakdown Structure NODE:
A node may be considered a work package when it meets the
Figure (5- 6 ):Example for WBS Levels through Project
The following criteria:

The work package cannot be easily decomposed any further
The work package is small enough to be estimated for time(effort),
The work package is small enough to be estimated for cost,
The work package may be assigned to a single person,
If the node is being subcontracted outside of the performing organization ,
that node ,regardless of size ,may be considered a work package ,and the
subcontracting organization builds a sub-WBS from that node.
5.4.3 Why Use the WBS?
Help prevent work from slipping through the cracks.
Provides the project team members with an understanding of their work.
Facilitates communication and cooperation between project team &
stakeholders.
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Focus the team experience on what needs to be done ,resulting in higher

quality and a project that is easier to manage.
Provides a basis for estimating staff ,cost ,and time.
Provides proof of the need for staff ,cost ,and time.
Get team buy-in and build the team.
Helps people get their minds around the project.
When there is a scope change to the project ;WBS along with the scope
statement ,can help to see if new scope within the planned scope of the
project.
As a way to control scope creep by reminding everyone what is to be done.
As a communication tool.
To help new team members see their roles.
WBS from one project may be used as the basis for the next.
The PMO should collect WBS examples and encourage the creation of
templates.
Is a graphical picture of the hierarchy of the project?
Identifies all the deliverables to be completed -if it isn't in the WBS it isn't
part of the project.
It is the foundation upon which the project is built.
It can be reused for other project.
TOOLS & TECHNIQUES
1. Decomposition
Subdividing the major project deliverables or sub-deliverables into
smaller more manageable components until deliverables are defined in
sufficient detail to support development of the project activities.
Every level is the detailed explanation of the level above it.
When is decomposition enough? Ask 2 questions:
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Figure (5- 7): Decomposition of Project Deliverables
Are your work packages small enough to be estimated for time and
cost?
Are the project manager and the project team satisfied that the current
level of detail provides enough information to proceed with subsequent
project activities?
If you can answer "yes" to those two questions, your work packages are
probably decomposed far enough.
OUTPUTS
1. Scope Baseline / Work Breakdown Structure
The WBS is a deliverable-oriented hierarchical decomposition of the
work to be executed by the project team ,to accomplish the project
objectives and create the required deliverables ,with each descending
level of the WBS representing an increasingly detailed definition of the
project work.
The WBS organizes and defines the total scope of the project.
Each WBS component ,including work package and control accounts
within a WBS ,is generally assigned a unique identifier from a code of
accounts.
These identifiers provide a structure for hierarchical summation of costs ,
schedule ,and resource information.
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Activity
List
Project Network
Control diagram
Risk
Management
WBS Staffing
Estimating
Quality
&
Management
Budgeting
Scheduling
Figure (5- 8): Work Breakdown Structure Components
5.4.4 WBS Dictionary

It is used to collect work component descriptions. Includes:
Work package descriptions,
Planning information such as schedule dates ,cost budgets and staff
assignments,
Just as a language dictionary defines words, a WBS dictionary provides
detailed information about the nodes on a WBS.
Because the WBS is graphical ,there is a practical limit to how much
information can be included in each node.
The WBS dictionary solves this problem by capturing additional
attributes about each work package in a different document that does not
have the graphical constraints that the WBS does.
Uses as a part of a work authorization system to inform team members of
when their work package is going to start ,schedule ,milestones ,etc.
Increases the understanding of the effort for each work package.
The WBS dictionary is a document generated by the create WBS process.
It may include but not limited to:
Code of account identifier, Description of work,
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Responsible organization, List of schedule milestones,

Associated schedule activities, Resources required,
Cost estimates, Quality requirements,
Acceptance criteria, Technical references,
Contract information.
Figure (5- 9): Online Ordering Application of WBS
5.5 Validate Scope

How do we Validate Scope?
Getting the stakeholders 'formal acceptance of completed or updated
scope & deliverables ,i.e .the WBS or the software you delivered
If a project terminates early ,project scope verification should be done
next to establish & document the level & extent of completion.
Scope validation is concerned with acceptance of deliverables ,while
quality control is concerned with quality of deliverables.
Quality control is generally performed before scope verification but can
be performed in parallel as well.
It's unethical to ignore Scope validation because it adds risk to meetinng
the customer's needs (see PMI Code of Conduct).
It can be done at the end of each project phase in the project life cycle (to
verify the phase deliverables along the way).
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It can be done during monitoring & controlling process in project

management plan.
You can verify the scope with the customer multiple time in one project.
Inputs
Tools &Techniques
1. Project outputs
management plan
2. Requirements
documentation 1. Accepted
3. Requirements 1. Inspection deliverables
traceability matrix 2. Group decision- 2. Change requests
4. Verified making techniques 3. Work performance
deliverables information
5. Work performance 4. Project documents
data updates
Figure (5- 10): Validate Scope Process
Whereas ,it results in formal acceptance by the customer of interim

deliverables ,the part of close project or phase process is to get final
acceptance or sign-off from the customer for the project as a whole.
5.5.1 Validate Scope Relates to Perform Q.C:
Perform QC is done first to make sure the work meets the quality
requirements before meeting with the customer.
The two processes are very similar in that both involve checking for the
correctness of work.
The difference is the focus of the effort and who is doing the checking.
In perform Q.C ,the Q.C department checks to see if the quality
requirements specified for the deliverables are met and makes sure the
work is correct.
In verify scope ,the customer checks and hopefully accept deliverables.
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OUTPUTS
1. Accepted Deliverables
Deliverables that meet the acceptance criteria are formally signed off and
approved by the customer or sponsor.
Formal documentation received from the customer or sponsor
acknowledging formal stakeholder acceptance of the projects
deliverables is forwarded to the Close Project or Phase process 4.6
PMBOK Guide
2. Change Requests
Those completed deliverables that have not been formally accepted are
documented ,along with the reasons for non -acceptance .Those
deliverables may require a change request for defect repair.
The change requests are processed for review and disposition through the
Perform Integrated Change Control process.
TOOLS & TECHNIQUES
1. Inspection
Inspection includes activities such as measuring, examining ,and verifying
to determine whether work and deliverables meet requirements and
product acceptance criteria.
Inspections are sometimes called reviews, product reviews ,audits, and
walkthroughs. In some application areas, these different terms have
narrow and specific meanings
INPUTS
1. Verified Deliverables
Described in Section 8.3.3.3 .PMBOK Guide ( Control Quality )
Verified deliverables are project deliverables that are completed and
checked for correctness through the Control Quality process.
5.6 Control Scope
What happens during Control Scope ?
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(Change Is Inevitable)
Influencing the factor that create project scope changes.
Controlling the impact of those changes.
Assures all requested changes and recommended corrective actions are
processed through the project Integrated Change Control process.
Project scope control is used to manage the actual changes when they
occur &integrated with other control processes.
Note: Uncontrolled changes are often referred to as project scope creep.
It involves measuring project and product scope performance and
managing scope baseline changes.
It is How do you measure scope now ,are you doing it frequently ,are
you sure at any point in the project scope is completed as plan.
Original requirements recorded in the requirement documentation and
requirement traceability matrix.
Then: Measure scope performance against the scope baseline to see the
magnitude of any variance (variance analysis) and decide if corrective
action or preventive action is required.
Once that information is known, the next to determine any updates to
scope baseline ,other parts of project management plan ,project
documentation are needed ,and what changes should be requested.
PM looks for the impact of scope changes on all aspects of the project
(through the perform integrated change control process).
Control scope can be done to prevent or remove the need for any more
changes from the source.
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Inputs
Tools &Techniques
1. Project
2. Requirements
documentation 1. Work performance
3. Requirements information
traceability 2. Change requests
matrix 1. Variance analysis 3. Project management
4. Work performance plan
data updates
5. Organizational 4. Project documents
process assets updates
5. Organizational
process assets
updates
Figure (5- 11): Control Scope Process
INPUTS
The project management plan described in Section 4.2.3.1 PMBOK
Guide contains the following information that is used to control scope.
Scope Baseline :is compared to actual results to determine if a change ,
corrective action ,or preventive action is necessary.
Scope Management Plan .Describes how the project scope will be
managed and controlled.
Change Management Plan: defines the process for managing change on
the project. (part of integrated change control)
TOOLS & TECHNIQUES
1. Variance Analysis
Project performance measurements are used to assess the magnitude of
variation from the original scope baseline.
Important aspects of project scope control include determining the cause
and degree of variance relative to the scope baseline and deciding whether
corrective or preventive action is required.
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OUTPUTS
Work performance information produced includes correlated and
contextualized information on how the project scope is performing
compared to the scope baseline.
It can include the categories of the changes received, the identified scope
variances and their causes ,how they impact schedule or cost, and the
forecast of the future scope performance.
This information provides a foundation for making scope decisions.
2. Project Documents Updates
Project documents that may be updated include ,but are not limited to:
Requirements documentation ,and
Requirements traceability matrix.
3. Organizational Process Assets Updates
Organizational process assets that may be updated include ,but are not
limited to:
Causes of variances,
Corrective action chosen and the reasons and Other types of lessons
learned from project scope control.
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5.7 Scope Tips & Tricks

The word task What many people refer to as a
task in the real world (Jed in some project
management software) is ohm called an activity on
the exam.
PMI considers an activity to be a particular piece of work scheduled for the
project. Tasks can be smaller components of work that make up that
activity, but PMI only expects you to manage to the activity level.
There can be many references to the WBS on the exam. In short,
remember the following. A WBS:
Is a graphical picture of the hierarchy of the project?
Identifies all the deliverables to be completed (if it is not in the WBS, it
is not part of the project),
Is the foundation upon which the project is built?
Is very important,
Should exist for every project,
Forces you to think through all aspects of the project,
Can be reused for other projects,
Does NOT show dependencies,
The exam may use the term deconstruction instead of "decomposition",
both terms mean the same thing.
There are a few trickier aspects of the Validate Scope process. First, it can
be done at the end of each project phase in the project life cycle (to get
formal acceptance of the phase deliverables along the way) and at other
points throughout the project as part of monitoring and controlling (to get
formal acceptance of any deliverables that require approval in the middle
of the phase or project).
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Therefore, you validate scope with the customer multiple times in one.
project Second, the difference between the Validate Scope and the Close
Project or Phase processes can also be a little tricky. Whereas the Validate
Scope process results in formal acceptance by the customer of interim
deliverables, remember that part of the reason for the Close Project or Phase
process is to get final acceptance or sign-off from the customer for the
project or phase as awhile.
Although Control Quality is generally done first (to make sure the
deliverable meets the requirements before it is shown to the customer), the
two processes are very similar in that both involve checking for the
correctness of work. The difference is the focus of the effort and who is
doing the checking.
In Control Quality, the quality control department checks to see if the
requirements specified for the deliverables are met and makes sure the work
is correct. In Validate Scope, the customer checks and hopefully accepts
the deliverables.
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6.PROJECT TIME MANAGEMENT

What Does The Time Management Area Attain?
Manages the project schedule to ensure timely completion of the project
Utilizes the Schedule Management Plan from the Develop Project
Management Plan process.
Table(6- 1):Project Time Management Overview
Planning Monitoring & Controlling
6.1
Plan Schedule Management
6.2
Define Activities
6.3
Sequence Activities
6.7
6.4 Control Schedule
Estimate Activity Resources
6.5
Estimate Activity Durations
6.6
Develop Schedule
Definitions of Time Processes

1. Plan Schedule Management
The process of establishing the policies ,documentation for planning ,
procedures ,and developing ,managing ,executing ,and controlling the
project schedule.
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2. Define Activities
Identifying the specific actions to be performed to produce project
deliverables at the lowest level in the WBS which is called the work
package.
3. Sequence Activities
Identifying & documenting relationships among the project activities.
4. Estimate Activity Resources
Estimate the type & quantities of material ,people, equipment ,or supplies
required to perform each activity .
5. Estimate Activity Durations
The process of approximating the number of work periods needed to
complete individual activities with estimated resources.
6. Develop Schedule
Develop Schedule is the process of analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the project
schedule.
7. Control Schedule
Schedule control is concerned with:
Determining the current status of the project schedule,
Determining that the project schedule has changed,
Managing the actual changes as they occur,
Identifying & documenting relationships among the project activities.
6.1 Plan Schedule Management
What happens in Plan Schedule Management?
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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The schedule management plan is a component of the project

management plan
The schedule management plan may be formal or informal ,highly
detailed or broadly framed ,based upon the needs of the project ,and
includes appropriate control thresholds.
The schedule management plan defines how schedule contingencies will
be reported and assessed.
The schedule management plan may be updated to reflect a change in the
way the schedule is managed.
The schedule management plan is a major input into the Develop Project
Management Plan process ,as referenced in Section 4.1.3.1 PMBOK
Guide.
Inputs
Tools &Techniques
1. Project
outputs
management plan
2. Project charter
3. Enterprise
factors 2. Analytical
4. Organizational techniques 1. Schedule
process 3. Meetings management
assets plan
Figure (6- 1): Plan Schedule Management Process

OUTPUTS
1. Schedule Management Plan
A component of the project management plan that establishes the criteria
and the activities for developing ,monitoring ,and controlling the schedule.
For example: the schedule management plan can establish the following
Project schedule model development :The scheduling methodology and,
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the scheduling tool to be used in the development of the project schedule

model is specified.
Level of Accuracy :The acceptable range used in determining realistic
activity duration estimates is specified and may include an amount for
contingencies.
Units of Measure :Each unit used in measurements( such as staff hours ,
staff days ,or weeks for time measures ,or meters ,liters ,tons ,kilometers ,
or cubic yards for quantity measures )is defined for each of the resources.
Organizational Procedures Link :The WBS (Section 5.4 ) provides the
framework for the schedule management plan ,allowing for consistency
with the estimates and resulting schedules.
Project Schedule Model Maintenance :The process used to update the
status and record progress of the project in the schedule model during the
execution of the project is defined.
Control Thresholds :Variance thresholds for monitoring schedule
performance may be specified to indicate an agreed-upon amount of
variation to be allowed before some action needs to be taken .Thresholds
are typically expressed as percentage deviations from the parameters
established in the baseline plan.
Rules of Performance Measurement :Earned value management (EVM)
rules or other physical measurement rules of performance measurement
are set.
Reporting Formats :The formats and frequency for the various schedule
reports are defined.
Process Descriptions :Descriptions of each of the schedule management
processes are documented.
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TOOLS & TECHNIQUES

The Plan Schedule Management process may involve choosing strategic
options to estimate and schedule the project such as :scheduling
methodology ,scheduling tools and techniques, estimating approaches ,
formats ,and project management software.
The schedule management plan may also detail ways to fast track or crash
(Section 6.6.2.7) PMBOK Guide the project schedule such as
undertaking work in parallel.
These decisions ,like other schedule decisions affecting the project ,may
affect project risks.
INPUTS
It includes ,but is not limited to:
Scope baseline: the scope baseline includes the project scope statement
and the work breakdown structure (WBS) details used for defining
activities ,duration estimation, and schedule management ;and other
information
Other scheduling related cost, risk, and communications decisions from
the project management plan are used to develop the schedule.
6.2 Define Activities
What happens in Define Activities?
The Create WBS process identifies the deliverables at the lowest level in
the Work Breakdown Structure (WBS) ,the work package.
Decompose the work packages into smaller components called activities
that represent the work necessary to complete the work package.
Differentiate between a work package and an activity?
o A work package is a deliverable as a result of work,
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o An activity is an action that produces a deliverable alone or together

with other activities,
Activities provide a basis for estimating ,scheduling ,executing ,and
monitoring & controlling the project work.
Inputs
Tools &Techniques
1. Schedule outputs
management
plan
2. Scope baseline
1. Decomposition
3. Enterprise
2. Rolling wave
environmental 1. Activity list
planning
factors 2. Activity attributes
4. Organizational 3. Expert judgment
3. Milestone list
process assets.
Figure (6- 2): Define Activities Process

OUTPUTS
1. Activity List
The activity list is a comprehensive list including all schedule activities
required on the project.
The activity list includes the activity identifier and a scope of work
description for each activity in sufficient detail to ensure that project team
members understand what work is required to be completed.
2. Activity Attributes
Activity attributes extend the description of the activity by identifying the

multiple components associated with each activity .The components for
each activity evolve over time.
o Activity ID, o WBS ID,
o Activity Name, o Activity codes,
o Activity description, o Predecessor activities,
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o Successor activities, o Logical relationships,

o Leads and lags, o Resource requirements,
o Imposed dates, o Constraints,
o Assumptions.
3. Milestone List
A milestone is a significant point or event in the project .It is not work
activity.
A summary of the milestones is included in the project charter.
A milestone list identifies all milestones and indicates whether the
milestone is mandatory, such as those required by contract, or optional ,
such as those based upon historical information.
The sponsor may impose milestones.
The PM can impose addition milestones during sequence activity or
develop schedule as checkpoints to help to control the project.
A list of milestones becomes part of project management plan and is
included in the project scope statement and WBS dictionary.
TOOLS & TECHNIQUES
1. Decomposition
The technique of decomposition, as applied to defining activities, involves
subdividing the project work packages into smaller ,more manageable
components called activities.
Activities represent the effort needed to complete a work package.
The Define Activities process defines the final outputs as activities rather
than deliverables.
The activity list, WBS, and WBS dictionary can be developed either
sequentially or concurrently, with the WBS and WBS dictionary as the
basis for development of the final activity list.
Each work package within the WBS is decomposed into the activities
required to produce the work package deliverables.
100
Involving team members in the decomposition can lead to better and more
accurate results.
2. Rolling Wave Planning
Rolling wave planning is a form of progressive elaboration planning
where the work to be accomplished in the near term is planned in detail
and future work is planned at a higher level of the WBS.
Therefore ,the work can exist at various levels of detail depending on
where it is in the project lifecycle.
For example, during early strategic planning, when information is less
defined, work packages may be decomposed to the milestone level .As
more is known about the upcoming events in the near term it can be
decomposed into activities.
3. Expert Judgment
Project team members or other experts ,who are experienced and skilled
in developing detailed project scope statements ,the WBS, and project
schedules, can provide expertise in defining activities.
INPUTS
1. Scope Baseline
The project deliverables ,constraints & ,assumptions documented in the
project scope baseline are considered explicitly while defining activities.
Remember that:
Scope Baseline = Scope Statement + WBS + WBS dictionary
Sequence Activities:
What happens in Sequence Activities?
Identifies & documents logical relationship among the project activities.
Every activity and milestone except the first and last are connected to at
least one predecessor and one successor.
Defines precedence relationships and leads & lags to support
development of a realistic & achievable project schedule.
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Sequencing can be performed by using project management software or

by using manual or automated techniques.
The result of this process is a network diagram )project schedule network
diagram).
o The network shows just dependencies )logical relationship.(
o If activity duration added )estimates ,( the network could show critical
path.
o If plotted against time )calendar -based scale( it would be a time -
scaled schedule network diagram.
6.3 Sequence Activities
Inputs
Tools &Techniques
1. Schedule outputs
management
plan
2. Activity list 1. Precedence
3. Activity attributes diagramming
4. Milestone list 1. Project schedule
(PDM)
5. Project scope network
2. Dependency
statement diagrams
determination
6. Enterprise 2. Project documents
3. Leads and lags updates
environmental
factors
7. Organizational
process assets
Figure (6- 3): Sequence Activities Process.
OUTPUTS
1. Project Schedule Network Diagrams
Project schedule network diagrams are schematic displays of the projects
schedule activities and the logical relationships among them, also referred
to as dependencies.
102
A project schedule network diagram can be produced manually or by

using project management software.
It can include full project details ,or have one or more summary activities.
A summary narrative can accompany the diagram and describe the basic
approach used to sequence the activities.
Methods to draw network diagram:
o ADM: (Arrow Diagramming Method).
o GERT: allows loops between activities (design and test and redesign).
o PDM: (Precedence Diagramming Method), most common.
TOOLS & TECHNIQUES
1. Precedence Diagramming Method
PDM is a method used in Critical Path Methodology )CPM( for
constructing a project schedule network diagram that uses boxes or
rectangles ,referred to as nodes, to represent activities, and connects them
with arrows that show the logical relationships that exist between them.
This technique is also called Activity-On-Node )AON( and is the method
used by most project management software packages.
PDM includes four types of dependencies or logical relationships:
o Finish-to-start )FS).
o Finish-to-finish) FF).
o Start-to-start (SS)
o Start-to-finish )SF).
In PDM, finish-to-start is the most commonly used type of precedence
relationship .The start-to-finish relationship is rarely used but is included
here for a complete list of the PDM relationship types.
103
Figure (6- 4): Finish Start Different Relationships
2. Dependency Determination
Three types of dependencies are used to define the sequence among the
activities:
Mandatory dependency) hard logic):
o The dependencies inherit in the nature of the work being done or required
by contract.
Figure (6- 5): Precedence Diagramming Method (PDM)
o The project team determines which dependencies are mandatory during

the process of sequencing the activities.
Discretionary dependencies) Preferred)
o They are sometimes referred to as preferred logic ,preferential logic ,or
soft logic.
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o When fast tracking techniques are employed ,these discretionary

dependencies should be reviewed and considered for modification or
removal.
External dependencies.
o Involve a relationship between project activities and non-project
activities.
o These dependencies are usually outside the project teams control. (e.g.
government or suppliers).
3. Leads and Lags
Leads allow an acceleration of the successor
activity. For example ,on a project to construct
a new office building the landscaping could be
scheduled to start 2 weeks prior to the scheduled punch list completion .
This would be shown as a finish -to-start with a-2
week lead.
Lag direct a delay in the successor activity. For
example ,a technical writing team can begin editing
the draft of a large document fifteen days after they begin writing it .This
could be shown as a start-to-start relationship with a fifteen-day lag.
6.4 Estimate Activity Resources
What is in Estimate Activity Resources
Estimate Activity Resources is the process of estimating the type and
quantities of material ,people ,equipment ,or supplies required to perform
each activity.
For example, a construction project team will need to be familiar with
local building codes .Such knowledge is often readily available from local
sellers .However ,if the local labor pool lacks experience with unusual or
specialized construction techniques ,the additional cost for a consultant
105
might be the most effective way to secure knowledge of the local building
codes.
Inputs
Tools &Techniques
1. Schedule
management outputs
plan
2. Activity list 1. Expert judgment
3. Activity attributes 2. Alternative analysis
4. Resource 3. Published estimating 1. Activity resource
calendars data requirements
5. Risk register 4. Bottom-up 2. Resource
6. Activity cost estimating breakdown
estimates 5. Project management structure
7. Enterprise software 3. Project documents
environmental updates
factors
8. Organizational
process assets
Figure (6- 6):Estimate Activity Resources Data Flow

OUTPUTS
1. Activity Resource Requirements
Identifies the types and quantities of resources required for each activity
in work package.
These requirements are aggregated to determine the estimated resources
for each package
The amount of detail and the level of specificity of the resource
requirement descriptions can vary by application area.
The resource requirements documentation for each activity can include
the basis of estimate for each resource ,as well as the assumptions that
were made in determining which types of resources are applied ,their
availability ,and what quantities are used.
2. Resource Breakdown Structure
The resource breakdown structure is a hierarchical structure of the
identified resources by resource category and resource type.
Resource categories can include:
106
o Labor, o Material,
o Equipment, o Supplies.
Resource types can include:
o Skill level, o Grade level
The resource breakdown structure is useful for organizing and reporting
project schedule data with resource utilization information.
INPUTS
1. Resource Calendars
Resource calendars specify when and how long identified project
resources will be available during the project.
This information may be at the activity or project level.
2. Risk Register
Risk events may impact resource selection and availability.
Updates to the risk register are included with project documents updates ,

described in Section 11.5.3.2 PMBOK Guide ,from Plan Risk
Responses.
TOOLS & TECHNIQUES
1. Alternatives Analysis
Many schedule activities have alternative methods of accomplishment.
They include using various levels of resource capability or skills ,different
size or type of machines ,different tools (hand versus automated), and
make-or-buy decisions regarding the resource
2. Published Estimating Data
Several companies routinely publish updated production rates and unit
costs of resources for an extensive array of labor trades, material, and
equipment for different countries and geographical locations within
countries.
107
3. Bottom-up Estimating
When an activity cannot be estimated with a reasonable degree of
confidence, the work within the activity is decomposed into more detail.
The resource needs are estimated.
These estimates are then aggregated into a total quantity for each of the
activitys resources.
4. Project Management Software
Project management software has the capability to help plan ,organize,
and manage resource pools and develop resource estimates.
6.5 Estimate Activity Duration
What is there in Estimate Activity Duration?
The process of approximating the number of work periods needed to
complete individual activities with estimated resources. The process uses
information on: activity scope of work ,required resource types ,estimated
resource Quantities & Resource Calendars.
The duration estimate is:
Progressively elaborated,
The process considers the quality & availability of the input data,
All data and assumption that support duration estimating are
documented for each estimate of activity duration.
Most project management software for scheduling will handle this
situation by using a project calendar and alternative work-period resource
calendars that are usually identified by resources that require specific work.
108
Inputs
Tools &Techniques
1. Schedule outputs
management plan
2. Activity list
3. Activity attributes 1. Expert judgment
4. Activity resource 2. Analogous
requirements estimating
5. Resource 3. Parametric 1. Activity duration
calendars estimating estimates
6. Project scope 4. Three-point 2. Project documents
statement estimating updates
7. Risk register 5. Group decision-
8. Resource making
breakdown techniques
structure 6. Reserve analysis
9. Enterprise
environmental
factors
10. Organizational
process assets
Figure (6- 7) : Estimate Activity Duration Process

OUTPUTS
1. Activity Duration Estimates
Activity duration estimates are quantitative assessments of the likely
number of work periods that will be required to complete an activity.
TOOLS & TECHNIQUES
1. Analogous Estimating
Analogous estimating uses parameters from a previous similar ,projects.
Analogous duration estimating is frequently used to estimate project
duration when there is a limited amount of detailed information about the
project for example ,in the early phases of a project.
Analogous estimating uses historical information an expert judgment.
Less costly and time consuming than other techniques.
Less accurate.
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2. Parametric Estimating
Parametric estimating uses a statistical relationship between historical
data and other variables
(e.g ,.square footage in construction) to calculate an estimate for activity
parameters ,such as cost ,budget ,and duration.
There are two ways an estimator might create it:
1. Regression analysis (scatter diagram) :track two variables to see if
they are related and create a mathematical formula to use in future
parametric estimating.
2. Learning curve: a 100th room painted will take less time than the first
room because of improved efficiency.
3. Three-Point Estimating
The accuracy of activity duration estimates can be improved by
considering estimation uncertainty and risk.
This concept originated with the Program Evaluation and Review
Technique (PERT).
PERT uses three estimates to define an approximate range for an
activitys duration:
o Most likely) tM)
o Optimistic (tO(
o Pessimistic )tP(
Expected activity duration TE = ( tO + 4tM + tP )/6.
4. Group Decision-Making Techniques
Team-based approaches, such as brainstorming, the Delphi or nominal
group techniques ,are useful for engaging team members to improve
estimate accuracy and commitment to the emerging estimates.
By involving a structured group of people who are close to the technical
execution of work in the estimation process, additional information is
gained and more accurate estimates obtained.
110
Additionally ,when people are involved in the estimation process ,their

commitment towards meeting the resulting estimates increases.
5. Reserve Analysis
Duration estimates may include contingency reserves ,(sometimes
referred to as time reserves ,or buffers) into the overall project schedule
to account for schedule uncertainty.
6.6 Develop Schedule
How do you Develop Schedule?
Develop Schedule is the process of analyzing activity sequences ,
durations ,resource requirements ,and schedule constraints to create the
project schedule.
Determine planned start &finish dates for all project activities
Schedule development is iterative (repeats in cycles) & continues
throughout the project to modify duration & resource estimates as the:
Work progresses,
Project Management Plan changes,
the nature of risk events evolves,
The schedule baseline (developed at the beginning of the project) is
used to track work progress and variance.
The project schedule may be presented in summary form ,sometimes
referred to as the master schedule or milestone schedule ,or presented in
detail.
111
Inputs
Tools &Techniques
1. Schedule
2. Activity list 1. Schedule network
3. Activity attributes analysis
4. Project schedule 2. Critical path method
3. Critical chain 1. Schedule baseline
network diagrams
method 2. Project schedule
5. Activity resource
4. Resource 3. Schedule data
requirements
optimization 4. Project calendars
6. Resource calendars
techniques 5. Project management
7. Activity duration
5. Modeling plan updates
estimates
techniques 6. Project documents
8. Project scope
6. Leads and lags updates
statement
9. Risk register 7. Schedule
10. Project staff compression
assignments 8. Scheduling tool
11. Resource
breakdown
structure
12. Enterprise
environmental
factors
13. Organizational
process assets
Figure (6- 8) : Develop Schedule Management Process

OUTPUTS
1. Schedule Baseline
A schedule baseline is a specific version of the project schedule developed
from the schedule network analysis.
It is accepted and approved by the project management team as the
schedule baseline with baseline start dates and baseline finish dates.
The schedule baseline is a component of the project management plan
2. Project Schedule
Although a project schedule can be presented in tabular form ,it is more
often presented graphically, using one or more of the following formats:
o Milestone charts
o Bar charts (Gantt Charts(
112
o Project schedule network diagrams

3. Schedule Data
The schedule data for the project schedule includes at least the schedule
milestones ,schedule activities ,activity attributes ,and documentation of
all identified assumptions and constraints.
The amount of additional data varies by application area. Information
frequently supplied as supporting detail includes ,but is not limited to:
o Resource requirements by time period often in the form of a resource
Histogram,
o Alternative schedules such as best-case or worst-case ,not resource -
leveled ,or resource-leveled ,with or without imposed dates ,and
Scheduling of contingency reserves.
4. Project Calendars
A project calendar identifies working days and shifts that are available for
scheduled activities.
It classifies time periods in days or parts of days that are available to
complete scheduled activities from time periods that are not available.
A schedule model may require more than one project calendar to allow for
different work periods for some activities to calculate the project schedule.
The project calendars may be updated.
TOOLS & TECHNIQUES
1. Schedule Network Analysis
Schedule network analysis is a technique that generates the project
schedule.
It employs various analytical techniques ,such as critical path method ,
critical chain method ,what-if analysis ,and resource leveling to calculate
the early and late start and finish dates for the uncompleted portions of
project activities.
113
2. Critical Path Method

The critical path method calculates the theoretical early start and finish
dates ,and late start and finish dates
A critical path is normally characterized by zero total float on the critical
path.
Networks can have multiple critical paths.
Once the total float for a network path has been calculated then the free
float( the amount of time that an activity can be delayed without delaying
the early start date of any immediate successor activity within the network
path) can also be determined.
3. Critical Chain Method
Critical chain is a schedule network analysis technique that modifies the
project schedule to account for limited resources.
Initially, the project schedule network diagram is built using duration
estimates with required dependencies and defined constraints as inputs.
The critical path is then calculated.
Then resource buffers to be added.
4. Resource Optimization Techniques
Resource leveling:
o Resource leveling is necessary when resources have been over-
allocated ,such as when a resource has been assigned to two or more
activities during the same time period ,when shared or critical required
resources are only available at certain times or are only available in
limited quantities.
o Resource leveling can often cause the original critical path to change.
Resource Smoothing:
o 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.
114
o In resource smoothing ,as opposed to resource leveling ,the projects

critical path is not changed and the completion date may not be delayed.
o 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.
o The resource distribution in smooth following bell shape as much as
possible.
5. Modeling Techniques
What-If Scenario Analysis:
o This is an analysis of the question What if the situation represented by
scenario X happens?
Simulation:
o The most common simulation technique is Monte Carlo Analysis
(Section 11.4.2.2 PMBOK Guide) ,in which a distribution of possible
activity durations is defined for each activity and used to calculate a
distribution of possible outcomes for the total project.
6. Applying Leads and Lags
Whenever required, you should use leads and lags to enhance the final
schedule duration.
7. Schedule Compression
Fast tracking. A schedule compression technique in which phases or
activities normally performed in sequence is performed in parallel.
o An example is constructing the foundation for a building before
completing all the architectural drawings.
o Fast tracking may result in rework and increased risk.
o Fast tracking only works if activities can be overlapped to shorten the
duration.
Crashing. A schedule compression technique in which cost and schedule
tradeoffs are analyzed to determine how to obtain the greatest amount of
compression for the least incremental cost.
115
o Crashing only works for activities where additional resources will shorten
the duration.
Reduce scope
Cut quality
8. Scheduling Tools
Automated scheduling tools expedite the scheduling process by
generating start and finish dates based on the inputs of activities ,network
diagrams ,resources and activity durations.
A scheduling tool can be used in conjunction with other project
management software applications as well as manual methods.
6.7 Control Schedule
What happens in Control Schedule?
Schedule control is concerned with:
Determining the current status of the project schedule,
Influencing the factors that create schedule changes,
Determining that the project schedule has changed,
Managing the actual changes as they occur,
Schedule Control is a portion of Integrated Change Control process.
116
Inputs
Tools &Techniques
1. Project outputs
management plan 1. Performance
2. Project schedule reviews
3. Work 2. Project management
performance data 1. Work performance
software information
4. Project calendars 3. Resource
5. Schedule data 2. Schedule forecasts
optimization
6. Organizational 3. Change requests
techniques
process assets 4. Project management
4. Modeling
plan updates
techniques
5. Project documents
5. Leads and lags
updates
6. Schedule
6. Organizational
compression
process assets
7. Scheduling tool updates
Figure (6- 9): Control Schedule Management Process

OUTPUTS
The calculated SV and SPI values for WBS components ,in particular the
work packages and control accounts, are documented and communicated
to stakeholders.
2. Schedule Forecasts
Schedule forecasts are estimates or predictions of conditions and events in
the projects future based on information and knowledge available at the
time of the forecast.
Forecasts are updated and reissued based on work performance
information provided as the project is executed.
The information is based on the projects past performance and expected
future performance ,and includes earned value performance indicators that
could impact the project in the future.
TOOLS & TECHNIQUES
1. Performance Reviews
117
Performance reviews measure ,compare and analyze schedule

performance such as actual start and finish dates, percent complete and
remaining duration for work in progress.
If earned value management )EVM( is utilized the schedule variance
(SV( )7.3 and schedule performance index SPI( )7.3 PMBOK Guide)
are used to assess the magnitude of schedule variations.
An important part of schedule control is to decide if the schedule variation
requires corrective action.
If using the critical chain scheduling method (6.6) comparing the amount
of buffer remaining to the amount of buffer needed to protect the delivery
data can help determine schedule status.
2. Leads and Lags
Adjusting leads and lags is used to find ways to bring project activities
that are behind into alignment with plan.
6.8 Time Management Formulas

Critical Path Method :Network Paths
The term" network path "refers to a sequence of events that affect each
other on the project from start to finish.
These activities form a path through the project.
Paths illustrate the different sets of sequences in which activities must be
performed ,and they are used to identify areas of high risk on the project
In a real project plan ,there will usually be numerous paths through the
network diagram ,and software is typically used to represent and calculate
them.
Critical Path Method :Critical Paths
Critical path calculations show you where most of the schedule risks will
occur.
The critical path is determined simply by identifying the longest path
through the system.
118
It is not unusual to have more than one critical path on a project .This
occurs when two or more paths tie for the longest path .In this event ,
schedule risk is increased because there are an increased number of ways
the project could be delayed.
The Critical Path
The critical path is the longest duration path through a network diagram
and determines the shortest time to complete the project.
Near-Critical Activity
A schedule activity that has low total float .The concept of near-critical is
equally applicable to a schedule activity or schedule network path .The
limit below which total float is considered near critical is subject to expert
judgment and varies from project to project.
CPM Schedule Calculation
Forward Path, Backward Path,
Float, Critical Path.
Forward Path Definitions
Early Start Date )ES)
o Earliest possible point in time an activity can start ,based on the
network logic and any schedule constraints.
Duration )DU(
o Number of work periods ,excluding holidays or other nonworking
periods ,required to complete the activity ;expressed as workdays or
workweeks.
Early Finish Date )EF(
o Earliest possible time the activity can finish.
Forward Path
o Starting at the beginning )left) of the network develop early start and
early finish dates for each task ,progressing to end )right-most box( of
the network.
119
o The forward pass calculates an activity's early dates.

o Early dates are the earliest times an activity can start and finish once its
predecessors have been completed.
o The calculation begins with the activities without predecessors.
= + Equation (6.1)
A
5
ES 0 EF 5
C
15
ES 10 EF 25
B
10
ES 0 EF 10
F o r w a r d p a th
Figure (6- 10):Forward Path Method
Backward Path Definitions

Late Start Date (LS)
o Latest point in time that an activity may begin without delaying that
activitys successor
o If the activity is on the critical path ,the project end date will be affected
Late Finish )LF(
o Latest point in time a task may be completed without delaying that
activitys successor
o If the activity is on the critical path ,the project end date will be affected.
120
Backward Path
o Calculate late start and late finish dates by starting at project completion ,
using finish times and working backwards
Scheduling Concepts (cont.)
o The backward pass calculates an activity's late dates.
o Late dates are the latest times an activity can start and finish without
delaying the end date of the project.
o The calculation begins with the activities without successors (activity C
in the graphic below).
o For projects without a Must Finish by date ,activities without successors
are assigned a Late Finish equal to the latest calculated Early Finish date
25in the graphic below.
= Equation (6.2)
B ack w ard p ath

L S5 L F 10
A 5 LF
ES 0 EF 5 L S 10 25
C 15
L S0 L F 10 ES 10 EF 25
B 10
ES0 EF 10
Figure (6- 11):Backward Method

Free Slack and Total Slack
Free slack(Float) :The amount of time a task can be delayed without
delaying the early start date of its successor.
Total slack )Float) :The amount of time a task can be delayed without
affecting a project is required due date.
121
Total Float
The amount of time an activity can slip from its early start without
delaying the project.
The difference between an activitys late dates and early dates
Activities with zero total float are critical.
= . Equation (6.3)
LS LF
Positive float
ES EF
LS Positive float
LF
Zero float (critical)
ES EF
LS
LF
Negative Float (extremely
Critical (
ES EF
Negative float
Figure (6- 12): Total Float Description
Backward Pass with Required Finish

One of the most common project scenarios is a required finish date for
the project.
Used only during the backward pass.
Required finish date specifies when the project must finish regardless of
the network's duration and logic
.
Late Finish - Duration = Late Start. .... Equation (6.4)
PERT
Program Evaluation and Review Technique )PERT) :uses a weighted
average duration estimate to calculate activity durations.
122
PERT Calculations
Expected time:
tE = (tO + 4tM + tP) / 6
Standard Deviation:
SD = (Tp + To ) / 6
E x p e c te d
(t) P e s s im is
O p ti m i s tic
)a) tic ) b (
Probability of Time
M os t Lik el y )m )
B e ta
D istributio n
A n A ctivity Dura tio n
Figure (6- 13):Activity Duration and Probability of Time

Relationship
CPM Exercise
Consider the following schedule network that shows the activities in your
project and their associated durations in days
1. The critical path in this network
is:
A. A-B-C.
B. A-B-D.
C. A-C-D.
D. A-B-C-D.
2. The free float for activity C is:
A. +4.
123
B. +2.
C. 0.
D. 2.
1. Answer: C.
PMBOK Guide, pages 176177, Section (6.6.2.2) and Figure 6-18
Critical Path Method
The critical path method, which is a method used to estimate the minimum
project duration and determine the amount of scheduling flexibility on the
logical network paths within the schedule model. This schedule network
analysis technique calculates the early start, early finish, late start, and late
finish dates for all activities without regard for any resource limitations by
performing a forward and backward pass analysis through the schedule
network, in this example the longest path includes activities A, C, and D,
and, therefore, the sequence of A-C-D is the critical path. The critical path
is the sequence of activities that represents the longest path through a
project, which determines the shortest possible project duration. The
resulting early and late start and finish dates are not necessarily the project
schedule, rather they indicate the time periods within which the activity
could be executed, using the parameters entered in the schedule model for
activity durations, logical relationships, leads, lags, and other known
constraints. The critical path method is used to calculate the amount of
scheduling flexibility on the logical network paths within the schedule
model.
2. Answer: B.
PMBOK Guide, pages 176177, Section (6.6.2.2) and Figure 6-18
Critical Path Method
On any network path, the schedule flexibility is measured by the amount of
time that a schedule activity can be delayed or extended from its early start
date without delaying the project finish date or violating a schedule
124
constraint, and is termed total float. A CPM critical path is normally

characterized by zero total float on the critical path. As implemented with
PDM sequencing, critical paths may have positive, zero, or negative total
float depending on constraints applied. Any activity on the critical path is
called a critical path activity. Positive total float is caused when the
backward pass is calculated from a schedule constraint that is later than the
early finish date that has been calculated during forward pass calculation.
Negative total float is caused when a constraint on the late dates is violated
by duration and logic. Schedule networks may have multiple near-critical
paths. Many software packages allow the user to define the parameters used
to determine the critical path(s). Adjustments to activity durations (if more
resources or less scope can be arranged), logical relationships (if the
relationships were discretionary to begin with), leads and lags, or other
schedule constraints may be necessary to produce network paths with a zero
or positive total float. Once the total float for a network path has been
calculated, then the free floatthe amount of time that a schedule activity
can be delayed without delaying the early start date of any successor or
violating a schedule constraintcan also be determined. For example, the
free float for Activity B, is 5 days.
Shortening the Schedule
Re-Estimating :Reduce the buffer allowed in activity duration that
contains the most unknowns.
Fast Tracking :Doing critical path activities in parallel that were
originally planned in series.
Process Improvement: Increasing productivity based on different work
process ,technologies and/or machinery.
Limited Overtime: Increasing the number of hours per day/week
available to work on tasks.
Crashing :Adding more resources to critical path activities.
125
What Is Fast Tracking?

Schedule compression by doing more critical path activities in parallel.
What is Crashing?
Scheduling compression through analyzing costs and schedule trade-offs
to obtain the greatest compression for the least incremental cost.
Adding resources to critical path tasks.
A
Project Duration )Normal(
B days
0 50 100 150 200 250 300 350
Figure (6- 14):Before Fast Tracking
A
Project Duration )Fast tracked)
=220 days
B
C Fast Tracking )Overlapping(
0 50 100 150 200 250

0
Figure (6- 15):Fast Tracking(Overlapping )
Crashing Steps
Step 1 :Calculate the Critical Path and list all critical activities and the
float of other paths .Calculate direct and indirect costs.
126
Step 2 :Exclude critical activities ,which cannot be crashed due to

technical reasons.
Step 3 :Rank the list of critical activities according to its cost slope )cost
of crashing unit time).
Step 4 :Crash the activity with the least cost slope )from the list in Step 3
until the total float of any of the parallel paths first consumed .Calculate
direct and indirect costs for this case.
Step 5 :Recalculate the critical path and apply Step 1 to Step 4 until all
possible crashing is done.
Step 6 :Plot the different project durations and the associated costs
and determine the optimum crashed project duration.
127
Crashing Example
Activity Dependency Normal Crash Normal Crash
A --- 6 4 6000 8000
B A 4 3 5000 5750
C ---- 8 7 8000 8500
D B&C 6 5 6000 8000
Which activities would you crash if your project budget was only?27000$
What is the new project duration?
Ex .Normal Time & Cost
Schedule Compression
Focus on Critical Activities
Logic Revisions
Activity Duration Reduction
Network Constraints
Resource Leveling
Resource leveling Any form of network analysis in which scheduling
decisions (start and finish dates) are driven by resource management
concerns (e.g ,.limited resource availability or difficult-to-manage
changes in resource levels).
PMI Definition provides one generic definition:
Includes ensuring that:
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o The resource availability limits are not exceeded

o The resource distribution is smooth following the bell shape as much
as possible.
Resource Leveling Steps
o Step 1: Allocate the resources to the critical activities first and then
allocate resources to other activities based on its early dates.
o Step 2 :If the max limit is exceeded ,distribute the resources on non-
critical activities within its float time .If this is not satisfied ,you may
need to extend the duration of the project or allocate more resources to
finish on time.
o Step 3: If the distribution is irregular ,try to move the non -critical
activities within its float time or extend their duration so that the resource
histogram is simulating the bell shape.
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6.9 Time Tips & Tricks

1. We also saw the term decomposition used in the
Scope Management chapter (4), in the Create WBS
process. Carefully read exam questions using the term.
If the team is decomposing work into work packages
(deliverables), they are creating a WBS (part of scope management). If they
are decomposing work packages into the activities required to produce
them, they are in the Define Activities process.
You may also refer to organizational process assets including existing
templates, historical information such as activity lists from other similar
project, and any standards, such as a prescribed scheduling methodology.
2. The next two-time management Processes-Estimate Activity Resources
and Estimate Activity Durations-and the Estimate Costs process (see the
Cost Management chapter) all involve estimating.
The Following Are Important Points to Understand about Time and Cost
Estimating for The Exam.
Management plans provide the basis for estimating.
Estimating should be based on a WBS to improve accuracy.
Time and cost estimates are interrelated, as time estimates may impact
cost, and vice versa.
Identified risks must be considered when estimating time and cost of
project work.
Estimating should be done by the person doing the work whenever
possible to improve accuracy.
Historical information from past projects (part of organizational process
assets) is key to improving estimates.
Schedule, cost, and scope baselines should be kept and not changed except
for approved project changes.
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The project schedule activities should be managed to the schedule baseline

for the project.
The project costs should be managed to the cost baseline for the project.
Changes are approved in integrated change control.
Estimates are more accurate if smaller-size work components are
estimated.
Changes should be requested when problems with schedule, cost, scope,
quality, or resources occur and cannot be solved by using time and cost
reserves.
A project manager should never just accept constraints from management,
but should instead the needs of the project, come up with his or her own
estimates (based on input from the team members doing the work when
possible), and reconcile any differences to produce realistic objectives
The project manager may periodically the estimate to complete (ETC) for
the project. in order to make sure adequate time, funds, resource's, etc.,
are available for the project.
Plans should be revised during completion of the work as necessary with
approved changes.
There is a process for creating the most accurate estimate possible.
Padding is not an acceptable project management practice.
The project manager must meet any agreed-upon estimates.
Estimates must be reviewed when they received to see if they are
reasonable and to check for padding and risks.
Estimates must be kept realistic through the life of the project by re-
estimating and reviewing them periodically.
Estimates can be decreased by reducing or eliminating risks.
Estimates can be decreased by reducing or eliminating risks.
A project manager has a professional responsibility to provide estimates
that are as accurate as feasible and to maintain the integrity of those
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estimates throughout the life of the project.

In the past, the exam has focused on the practices required to produce
good estimates, more than it has focused on calculations. Therefore, make
sure you take some time to think about these points. Remember, incorrect
project management practices will be listed as choices on the exam.
Project managers who do not adequately understand and manage their
projects in this way have difficulty on the exam and do not even know
why.
Now let's look at an important topic related to estimating.
Really try to answer the following question before reading on. It will help
you assume the right perspective for studying this topic.
3. For the exam, it's important to know the formula for both triangular and
beta distribution and understand that if you are being asked to calculate
the activity (or cost) duration, you will need to read the situation carefully
to determine which formula to use.
Look for language like simple or straight (triangular), or PERT or
weighted (beta) that might help you choose the correct formula.
You may be asked to perform calculations using the formulas or to
analyze information to determine how best to deal with a situation. The
exercises that follow can help you prepare for three-point estimating
questions on the exam. But first, here are the formulas again, plus a new
one for standard deviation:
You must MEMORIZE these formulas in the next figures and remember
that they can be used for both time and cost estimates.
Legend: P = Pessimistic, M = Most Likely, 0 = Optimistic
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Expected
Expected
Activity Beta Activity
Activity
Duration Standard
Duration
(Triangular Deviation
(Beta Distribution)
Distribution) (P-0)
P+4M+O
P+M+O -6-
6
3
Figure (6- 16):Formulas for Three-Point Estimating and Activity

Standard Deviation
Activity standard deviation14 is the possible range for the estimate. For
example, an activity estimate of 30 hours that has a standard deviation of
+/-2 could end up taking between 28 hours and 32 hours. We've listed
the formula for beta activity standard deviation here. Although there is a
standard deviation formula for triangular distribution, it's complicated
and is unlikely to be on the exam. What you need to remember for the
exam is that the greater the range created by the standard deviation
calculation, the greater the risk.
The exam may ask you to calculate a range for an individual activity
estimate using weighted (beta) averaging. To do you need to know the
beta expected activity duration (EAD) and the beta activity standard
deviation (SD). you calculate the range using beta EAD +/- SD. the start
of the range is beta EAD- SD, and the end of the range is beta EAD+SD.
the second exercise in this section will give a chance to practice these
calculations. (be aware that it is possible to calculate a range for individual
activity estimates using simple (triangular) averaging, which would
involve triangular EAD and the standard deviation formula for triangular
distribution. but again, since the exam is unlikely to require you to perform
this calculation, we haven't included it in our discussion.)
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4. The easiest way to find the critical path is to identify all paths through
the network and add the activity durations along each path. The path with
the longest duration is the critical path. Be careful that you do the
exercises that follow and practice doing this manual work for the exam.
People will commonly not identify all of the paths or not calculate the
duration correctly and get questions wrong on the exam.
5. The following are good questions to test your knowledge about critical
paths, float, etc.:
Can there be more than one critical path? Yes, you can have two, three, or
many critical paths.
Do you want there to be? No; it increases risk.
Can a critical path change? Yes.
Can there be negative float? Yes; it means you are behind.
How much float does the critical path have? In planning, the critical path
has zero total float. During project executing, if an activity on the critical
path is completed earlier or later than planned, the critical path (longest
path) may then have positive or negative float. Negative float on the
critical path requires corrective actions or changes to the project to bring
it back in line with the plan.
Does the network diagram change when the end dates changes? No, not
automatically, but the project manager should investigate schedule
compression options such as fast tracking and crashing the schedule to
meet the new data. Then, with approved changes, the project manager
should change the network diagram accordingly.
Would you have leaved the project with negative float? no; you would
compress (crashing and/or fast-tracking and/or cut scope and/or reduce
quality) the schedule.
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135
7.PROJECT COST MANAGEMENT

The Cost Knowledge Area Includes:
Processes involved in estimating budgeting and controlling costs so
that the project can be completed within the approved budget.
Primarily concerned with resource costs of schedule activities.
The work involved in performing the three processes of Project Cost
Mgmt. .is preceded by a planning effort of the project mgmt. team.
This planning effort is the part of the Develop Project Mgmt. Plan
process which produces a cost management plan that sets out the format
and establishes the criteria for planning structuring estimating
budgeting and controlling project costs.
The cost management processes and their associated tools and
techniques are usually selected during the project life cycle definition
read (Sec.2.1) and are documented in the cost mgmt. plan.
Table(7- 1):Project Cost Management Overview
Monitoring &
Planning
Controlling
7.1
Plan Cost
Management 7.4
7.2 Control Costs
Estimate Costs
7.3
Determine Budget
Life Cycle Costing

It is defined as the cost of using maintaining & supporting the product
service or result of the project but it's not part of the project's budget
(will get many questions on life cycle costing).
Uses the Cost Management Plan (which is a part of the Project
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Management Plan)
Types of Cost
Let us illustrate using an example: Seminar
o Fixed -rent of the seminar room is a fixed cost
o Variable cost of drinks to participants varies with number of
participants
o Direct hiring of display system for the seminar
o Indirect cost of electricity of the venue is shared by all the other users
Cost Process Definitions
1. Plan Cost Management
Establishes the policies procedures and documentation for planning
managing expending and controlling project costs. It provides guidance
and direction on how the project costs will be managed throughout the
project.
2. Estimate Costs
Develop cost approximations of all monetary resources needed to
complete project activities.
3. Determine Budget
Aggregating the estimated costs of individual activities or work
packages to establish an authorized cost baseline.
4. Control Costs
The process of monitoring the status of the project to update the project
budget and managing changes to the cost baseline.
In Smaller Projects: Cost Estimating & Cost Budgeting Can Be
One Single Process
On how the project costs will be managed throughout the project.
The cost management processes and their associated tools and techniques
are documented in the cost management plan.
The cost management plan is a component of the project mgmt. plan. 1
137
7.1 Plan Cost Management

It 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.
Inputs
Tools &Techniques
1. Project
2. Project charter
3. Enterprise 1. Expert judgment
environmental 2. Analytical
factors techniques
1. Cost management
4. Organizational 3. Meetings plan
process assets
Figure (7- 1): Plan Cost Management Process
OUTPUTS
1. Cost Management Plan
The cost management plan is a component of the project management
plan and describes how the project costs will be planned implemented
and controlled.
The cost management processes and their associated tools and techniques
are documented in the cost management plan. For example the cost
management plan can establish the following:
o Units of Measure: Each unit used in measurements) such as staff hours
staff days weeks for time measures or meters or lump sum in
currency form (is defined for each of the resources
o Level of Precision: The degree to which activity cost estimates will be
rounded up or down.
o Level of Accuracy: The acceptable range (e.g%10 .) used in
138
determining realistic activity cost estimates is specified and may

include an amount for contingencies.
o Rules of Performance Measurement: Earned value management
(EVM) rules of performance measurement are set.
o Organizational Procedures link (WBS) provides the framework for the
cost management plan, allowing for consistency with the estimates
budgets and control of costs. The WBS component used for the project
cost accounting is called the control account. Each control account is
assigned a unique code or account number(s) that links directly to
the performing organizations accounting system.
o Control Thresholds: Variance thresholds for monitoring cost
performance may be specified to indicate an agreed-upon amount
of variation to be allowed before some action needs to be taken.
Thresholds are typically expressed as percentage deviations from the
baseline plan.
o Reporting Formats: are defined before.
o Process Descriptions.
o Additional Details: Description of strategic funding choices ,
Procedure to account for disturbances in currency exchange rates and
Procedure for project cost recording.
TOOLS & TECHNIQUES
Developing the cost management plan may involve choosing strategic
options to fund the project such as: self-funding funding with equity
or funding with debt.
The cost management plan may also detail ways to finance project
resources such as making purchasing renting or leasing.
These decisions like other financial decisions affecting the project
may affect project schedule and/or risks.
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Organizational policies and procedures may influence which financial

techniques are employed in these decisions.
Techniques may include (but are not limited to) payback period return
on investment internal rate of return discounted cash flow and net
present value.
7.2 Estimate Cost
How do you Estimate Cost?
Get a cost approximation of the monetary resources needed to complete
each schedule activity
Resources should include:
Labor & services
Materials equipment & facilities
Information technology
Inflation cost contingency reserves
Cost estimates are generally expressed in units of currency (or hours)
Possible causes of variations should be considered (risk.)
Accuracy should increase as project progresses
Some organizations have formally trained project cost estimators.
Salient Features
Cost estimating includes identifying and considering various costing
alternatives.
Cost estimates are expressed in units of currency.
Cost estimates are normally refined during the course of the project.
The accuracy of a project estimate will increase as the project progresses
through the project life cycle.
A project in initial phase could have a rough order of magnitude (ROM)
estimate in the range of 50- to. %50+.
Later in the project as more info. Is known estimates could narrow to a
range (move from -10% to + 10%).
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Inputs
Tools &Techniques
1. Cost management 1. Expert judgment outputs
plan 2. Analogous
2. Human resource estimating
management plan 3. Parametric
3. Scope baseline estimating
4. Project schedule 4. Bottom-up
5. Risk register 1. Activity cost
estimating
6. Enterprise estimates
5. Three-point 2. Basis of estimates
environmental estimating
factors 3. Project documents
6. Reserve analysis
7. Organizational updates
7. Cost of quality
process assets 8. Project
management
software
9. Vendor bid
analysis
10. Group decision-
making
techniques
Figure(7- 2) : Estimate Cost Management Process

OUTPUTS
1. Activity Cost Estimates
Activity cost estimates are quantitative assessments of the probable costs
required to complete project work.
Cost estimates can be presented in summary form or in detail.
2. Basis of Estimates
Supporting detail for activity cost estimates may include:
o Documentation of the basis of the estimate (i. e . how it was
developed)
o Documentation of all assumptions made
o Documentation of any known constraints
o Indication of the range of possible estimates (e.g 10,000$ . (%10)
to indicate that the item is expected to cost between a range of
values)
o Indication of the confidence level of the final estimate.
141
INPUTS
Market conditions. Market conditions describe what products services
and results are available in the market from whom and under what
terms and conditions. Regional and/or global supply and demand
conditions greatly influence resource costs.
Published commercial information. Resource cost rate information is
often available from commercial databases that track skills and human
resource costs and provide standard costs for material and equipment.
Published seller price lists are another source of information.
TOOLS & TECHNIQUES
1. Three-Point Estimates
cE= (cO + 4cM + cP) /6
2. Cost of Quality
Assumptions about costs of quality (Section 8.1), PMBOKGuide

may be used to prepare the activity cost estimate.
3. Project Management Estimating Software
Project management cost estimating software applications
computerized spreadsheets simulation and statistical tools are
becoming more widely accepted to assist with cost estimating.
Such tools can simplify the use of some cost estimating techniques and
thereby facilitate rapid consideration of cost estimate alternatives.
4. Vendor Bid Analysis
Cost estimating methods may include analysis of what the project should
cost based on the responsive bids from qualified vendors.
Where projects are awarded to a vendor under competitive processes
additional cost estimating work can be required of the project team
to examine the price of individual deliverables and to derive a cost that
supports the final total project cost.
142
5. Group Decision-Making Techniques

Team-based approaches such as brainstorming the Delphi or nominal
group techniques are useful for engaging team members to improve
estimate accuracy and commitment to the emerging estimates.
By involving a structured group of people who are close to the technical
execution of work in the estimation process additional information is
gained and more accurate estimates are obtained.
Additionally when people are involved in the estimation process their
commitment towards meeting the resulting estimates increases.
7.3 Determine Budget
What happen in Determine Budget?
Aggregating the estimated costs of individual schedule activities or work
packages to establish a total cost baseline for measuring performance. It
establishes the Project's funding requirements.
Remember that the project scope statement provides only the summary
budget.
Inputs
1. Cost management Tools &Techniques
plan
2. Scope baseline
outputs
3. Activity cost
estimates 1. Cost aggregation
4. Basis of estimates 2. Reserve analysis 1. Cost baseline
5. Project schedule 3. Expert judgment 2. Project funding
6. Resource 4. Historical requirements
calendars relationships 3. Project documents
7. Risk register 5. Funding limit updates
8. Agreements reconciliation
9. Organizational
process assets
Figure(7- 3) : Determine Budget Management Process
143
OUTPUTS
1. Cost Baseline
The cost baseline is an authorized time-phased budget at completion
(BAC) used to measure monitor and control overall cost performance
on the project. It is developed as a summation of the approved budgets
by time period and is typically displayed in the form of an S-curve.
In the earned value management technique, the cost baseline is a part of
the Performance Measurement Baseline (PMB).
2. Project Funding Requirements
Total funding requirements and periodic funding requirements (e.g
Quarterly annually) are derived from the cost baseline.
The cost baseline will include projected expenditures plus anticipated
liabilities. F u n d i n g often occurs in incremental amounts that are not
continuous which appear as steps.
The total funds required are those included in the cost baseline plus
management reserves if any.
INPUTS
1. Agreements
Applicable Agreements information and costs relating to products
services or results purchased are included when determining the budget
TOOLS & TECHNIQUES
1. Cost Aggregation
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.
2. Historical Relationships
Any historical relationships that result in parametric estimates or
144
analogous estimates involve the use of project characteristics

(parameters) to develop mathematical models to predict total project
costs.
Such models can be simple ( e.g .residential home construction is based
on a certain cost per square foot of space) or complex ( e.g .one model
of software development costing uses multiple separate adjustment
factors each of which has numerous points within it.)
3. Funding Limit Reconciliation
The expenditure of funds should be reconciled with any funding limits
on the commitment of funds for the project.
A variance between the funding limits and the planned expenditures will
sometimes necessitate the rescheduling of work to level out the rate of
expenditures.
This can be accomplished by placing imposed date constraints for work
into the project schedule.
7.4 Control Cost
What happen in CONTROL COST?
Influencing the factors that create changes to the cost baseline,
Ensure that all change requests are acted on in a timely manner,
Manage the actual changes when and as they occur,
Make sure that cost expenditures don't exceed authorized funding by
period & in total for the project,
Monitor cost performance to isolate and understand variances from
approved cost baselines,
Monitor work performance against funds expended,
Prevent unapproved changes from being included in the reported cost or
resource usage,
Inform appropriate stakeholders of approved changes and associated
cost, and act to bring expected cost overruns within acceptable limits.
145
Inputs
Tools &Techniques
1. Project outputs
management plan 1. Earned value
management
2. Project funding
requirements 2. Forecasting 1. Work performance
3. Work performance 3. To-complete information
performance index 2. Cost forecasts
data
4. Organizational (TCPI) 3. Change requests
process 4. Performance 4. Project management
reviews plan updates
5. Project management 5. Project documents
software updates
6. Reserve analysis 6. Organizational
process
assets updates
Figure(7- 4): Control Cost Management Process
OUTPUTS
The calculated CV, SV, CPI, and SPI value for WBS components, in
particular the work packages and control accounts are documented and
communicated to stakeholders. (See exercises)
2. Budget Forecasts
Either a calculated EAC value or a bottom-up EAC value is documented
and communicated to stakeholders (See forecasts).
TOOLS & TECHNIQUES
1. Earned Value Management
See exercises
2. Forecasting
See exercises
3. To-Complete Performance Index
See exercises
4. Performance Reviews
Variance analysis. Variance analysis as used in EVM compares actual
146
project performance to planned or expected performance. Cost and

schedule variances are the most frequently analyzed.
Trend analysis. Trend analysis examines project performance over
time to determine if performance is improving or deteriorating
Graphical analysis techniques are valuable for understanding
performance to date and for comparison to future performance goals
in the form of BAC versus EAC and completion dates.
Earned value performance. Earned value management compares the
baseline plan to actual schedule and cost performance.
In a double entry accounting system for every debit to one account
there is a corresponding credit to another account.
Earned value is similar in that if you spend a dollar on labor for
your project that dollar doesn't just evaporate into thin air. You are"
earning " a dollar's value back into your project. If you buy bricks or
computers write code or documentation or perform any work on the
project those activities earn value back into your project.
Figure(7- 5) :Project Budget Component
7.4.1 Earned Value Management (EVM)

A management methodology for integrating scope schedule and
resources and for objectively measuring project performance and
147
progress.
Performance is measured by determining the budgeted cost of work
performed (i.e. earned value) and comparing it to the actual cost of
work performed (i.e. actual cost).
Progress is measured by comparing the earned value to the planned
value
Figure(7- 6) : Earned Value, Planned Value, and Actual Costs
Debits and Credits

In a double entry accounting system for every debit to one accountthere
is a corresponding credit to another account.
Earned value is similar in that if you spend a dollar on labor for your project
that dollar doesn't just evaporate into thin air. You are" earning " a dollar's
value back into your project. If you buy bricks or computers write code or
documentation or perform any work on the project those activities earn
value back into your project.
148
What Can Answer EV?

How efficiently
must we use our Are we ahead or
remaining behind schedule?
resources?
How efficiently are How efficiently are

we using our we using our time?
resources?
Are we currently When is this project

under or over likely to be
budget? completed?
Figure(7- 7) :Debits and Credits Shape
6
Time
0
Now
5
0
4
3
Dollars
30
0 Actual Budget Plan) 21(
2 Cost)26(
0
1
0
J F M A M J J A S O N D
Tim e
Figure(7- 8): Project Performance Without Earned Value
149
60
Time
50
40
Dollar
20
Actual Cost
s
30 Budget Plan
10
0 Earned Value (16)

J F M A M J J A S O N D
Time
Figure(7- 9): Project Performance With Earned Value
150
Table(7- 2): Earned Value Calculations Summary Table
Lexicon Interpretatio
Item Name How to use Equation
Definition n of Result
The value of the work
planned to be
The authorized budget
Planned completed to a point in
PV Value
assigned to scheduled
time, usually the data
--------- ---------
work.
date, or project
completion.
The planned value of
The measure of work all the work completed
performed expressed (earned) to a point in
Equal sum of the Value of
EV Earned Value in terms of the budget time, usually the data
completed work
authorized for that date, without planned value
work reference to actual
costs.
The realized cost The actual cost of all
incurred for the work the work completed to
AC Actual Cost performed on an a point in time, usually --------- ---------
activity during a the data date.
specific time period.
The value of total
The sum of all budgets
Budget At planned work, the
BAC Completion
established for the
project cost baseline.
--------- ---------
work to be performed.
The amount of budget The difference Positive = Under
deficit or surplus at a between the values of planned cost
given point in time, work completed to a Neutral = On
CV Cost Variance expressed as the point in time, usually CV=EV-AC planned cost
difference between the the data date and the Negative = Over
earned value and the actual costs to the planned cost
actual cost. same point in time.
The amount by which
The difference
the project is ahead or
between the work Positive = Ahead
behind the planned
completed to a point in of Schedule
delivery date, at a
Schedule time, usually the data Neutral = On
SV Variance
given point in time,
date, and the work
SV=EV-PV schedule
expressed as the
planned to be Negative = Behind
difference between the
completed to the same Schedule
earned value and the
point in time.
planned value.
A projection of the
amount of budget Positive = Under
deficit or surplus, The estimated planned cost
Variance At expressed as the difference in cost at Neutral = On
VAC Completion difference between the the completion of the
VAC=BAC-EAV planned cost
budget at completion project. Negative = Over
and the estimate at planned cost
completion.
A CPI of 1.0 means
the project is exactly
on budget that the
Greater than 1.0 =
work actually done so
A measure of the cost Under planned
far is exactly the same
Cost efficiency of budgeted cost
as the cost so far.
CPI Performance resources expressed as
Other values show the
CPI=EV/AC Exactly 1.0 = On
Index the ratio of earned planned cost
percentage of how
value to actual cost Less than 1.0 =
much costs are over or
Over planned cost
under the budgeted
amount for work
accomplished
151
Lexicon Interpretatio
Item Name How to use Equation
Definition n of Result
An SPI of 1.0 means
that the project is
exactly on schedule,
Greater than 1.0 =
that the work actually
Ahead ofschedule
A measure of schedule done so far is exactly
Schedule efficiency expressed the same as the work
Exactly 1.0 = On
SPI Performance as the ratio of earned planned to be done so SPI=EV/PV
schedule
Index value to planned far. Other values show
value. the percentage of how
Less than 1.0 =
much costs are over or
Behind schedule
under the budgeted
amount for work
planned.
If the CPI is expected
to be the same for the
remainder of the
project, EAC can be
The expected total EAC = BAC/CPI
calculated using: If
cost of completing all EAC = AC + BAC EV
future work will be
Estimate at work expressed as the EAC = AC + Bottom-up
EAC Completion sum of the actual cost
accomplished at the ETC
planned rate, use: If EAC = AC + [(BAC EV)/
to date and the
the initial plan is no (CPI x SPI)]
estimate to complete.
longer valid,
use: If both the CPI
and SPI influence the
remaining work, use:
Assuming work is
proceeding on plan,
the cost of completing
The expected cost to the remaining
Estimate to finish all the authorized work can
ETC Completion remaining project be
ETC=EAC-AC
work. Calculated using: Re-
estimate the remaining
work from the bottom
up.
Greater than 1.0 =
Harder to
A measure of the cost complete
performance that must Exactly 1.0 =
The efficiency that
be achieved with the Same to complete
must be maintained in
remaining resources in TCPI = (BAC EV)/ (BAC Less than 1.0 =
order to complete on
To Complete order to meet a AC) Easier to complete
plan.
TCPI Performance specified management
The efficiency that TCPI = (BAC EV)/(EAC
Greater than 1.0 =
Index goal, expressed as the Harder to
must be maintained in AC)
ratio of the cost to complete
order to complete the
finish the outstanding Exactly 1.0 =
current EAC.
work to the budget Same to complete
available. Less than 1.0 =
Easier
to complete
152
EVM Example
You are the project manager for the construction of 20 km of sidewalk.
According to your plan the cost of construction will be 15,000$per km
and will take 8 weeks to complete 2 weeks into the project you have
spent 55,000$ and completed 4 kms of sidewalk and you want to report
performance and determine how much time and cost remain.
7.4.2 Project Selection Cost Indices
Budgeted at Completion
Budgeted at completion simply means" How much we originally
expected this project to cost.
EVM Example BAC
BAC 20 = kms of sidewalk *15,000 $ / km.
BAC =300,000$
Planned Value
The planned value is how much work was planned for this point in time.
Planned Value = Planned % complete * BAC
EVM Example - PV
We are 2 weeks complete on an-8-week schedule which equates to. %25
PV = 300,000$ *0.25 = 75.00$.
Therefore we had planned to spend 75,000$ after two weeks.
Earned Value
Earned value is based on the assumption that as your complete work on
the projectyou are adding value to the project. Therefore it is simply a
matter of calculating how much value you have" earned "on the project.
Planned value is what planned but earned value is what actually
happened.
EV = Actual % Complete * BAC
We have completed 4 kms of the-20 km project. %20
EV =300,000$ * %20
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We have earned 60,000$ of value for the project.

Actual Cost
Actual cost is the amount of cost you have incurred at this point and we
are told in the example that we have spent 55,000$ to date.
AC =55,000 $
Cost Variance: (CV) is how much actual costs differ from planned costs.
We derive this by calculating the difference between EV and AC. The
reason we use EV in this formula instead of PV is that we are calculating
how much the actual costs have varied. If we used PV, it would give us
the variance from our plan but the cost =60.000$
variance measures actual cost varianceand EV is based on actual
performance whereas PV is based on planned performance.
A positive CV is a good thing. It indicates that we are doing better on
costs than we had planned. Conversely, a negative CV indicates that
costs are running higher than planned.
CV = EV-AC
CV = 60.000-50.000
CV = 10,000$
Schedule Variance: SV (is how much our schedule differs from our plan
expressed in dollars) .SV is derived by calculating the difference
between EV and PV.
Negative variance (as in this case) reflects that we are not performing as
well as we had hoped in terms of schedule. A positive SV would indicate
that the project is ahead of schedule.
SV = EV-PV
SV =75.000$-60,000 $
SV= 15,000
Cost Performance Index: It gives us an indicator as to how much we
are getting for every dollar. It is derived by dividing Earned Value by the
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Actual Cost.
A CPI of 1 indicates that the project is exactly on track. A closer look at
the formula reveals that values of 1 or greater are good and values less
than 1 are undesirable.
CPI = EV / AC
CPI= 60,000$ / 55,000 $
CPI= 1.09
This tells us that we are getting performance for 1.09 $ every. 100 $ we
expected.
Schedule Performance Index
A corollary to the cost performance index is the schedule performance
index or SPI The schedule performance index tells us how fast the
project is progressing compared to the project plan. It is derived by
dividing earned value by the planned value.
SPI = EV / PV
SPI= 60,000$ / 75,000$
SPI = 0.8
This tells us that the project is progressing at 80% of the pace that we
expected it to and when we look at the example this conclusion makes
sense.
We had expected to lay 20 kms of sidewalk in 8 weeks.
At that rate, after 2 weeks, we should have constructed 5 kms, but instead
the example tells us that we had only constructed 4 kms.
That equates to 4/5 performance, which is 80%
Like the cost performance index values of 1 or greater are good, and
values that are less than 1 are undesirable.
Estimate at Completion: It is the amount we expect the project to cost
based on where we are relative to cost and schedule.
If you know you are half way through the project and you are currently
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20% over budget then the estimate at completion factors that variance
out to the end of the project. To calculate EAC take the BAC and divide
it by our cost performance index.
EAC = BAC / CPI
EAC = 300.000$ / 1.09
EAC = 275,229.36$
This should make sense We are doing better on costs than we had
originally planned and this value reflects that.
Estimate to Completion: It is simply how much more we expect to spend
from this point forward based on what we've done so far. It can be easily
backed into by taking our estimate at complete (what we expect to spend)
and subtracting what we have spent so far (Actual Cost).
ETC = EAC AC
ETC = 275.229.36$ - 55.000$
ETC = 220.229.36$
This tells us that we expect to spend 220,229.36$ more given our
performance thus far.
Variance at Completion: It is the difference between what we originally
budgeted and what we expect to spend.
A positive variance indicates that we are doing better than projected
and a negative variance indicates that we expect the project to run over
on costs.
VAC = BAC EAC
VAC = 300.000 $- 275.229.36$
VAC = 24.770.64$
This is a projection of cost performance that must be achieved on the
remaining work to meet a specified management goal such as the
original BAC (Sif CPI is below1 or the EAC) if the BAC is not
attainable.
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To Complete Performance Index based on BAC

TCPI based on BAC = (BAC EV)/(BAC-AC)
TCPI = (300,000$-55,000$) / (300,000$ - 60,000$)
TCPI = 240,000$/ 245,000$=0.98
Here we can see that we do not need much effort to attain the BAC
EVM Example - CPI & SPI over Time
A common way for the cost performance and schedule performance
index to be used is to track them over time.
This graph may be easily interpreted if you consider that a value of one
indicates that the index is exactly on plan
Net Present Value (NPV) and Present Value(PV)
Net Present Value (NPV) = (Present Value *of All Cash Inflows)
(Present Value *of All Cash Outflows)
Project Selection Criteria: Select the project with the maximum Net
Present Value. The time value of money is already taken into account
while calculating NPV
Example: There are 2 projects. Project A has as NPV of 1,000 $ and will
be completed in 5 years. Project B has a NPV 800$ and will be of
completed in 1 year. Which project will you select?
Answer: Project A will be selected. The fact that project B has a smaller
duration than project A does not matter because time is already taken
into account in NPV calculations.
Present Value: (PV of the future value)
FV:(of a payment discounted at a discount rate)
r :(for the delay in payment.)
Example of PV: Assume that (1,100 $ FV Future Value) is going to
be invested one year(n) from now. The discount rate (e.g. inflation) is10
( r .)What is the present Value?
PV = FV (1+R/100) N
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= 1.100 $ (1+ 10/100)1

= 1.100$ 1.1 = 1.000$
Discount Rate: The interest rate used to calculate present value of
expected yearly benefits and costs.
Future Value (FV): is the value of something such as cash or an
investment at a specific point in the future.
FV = PV*(1 +R) N
Where
PV=Present Value, r = interest rate
N =number of periods, and FV =Future Value.
For example if you had 5,000$ now and could get %8 interest what
would the Future Value be after 2 years
FV= 5000$ * (1+0.08) 2
FV = 5832$
Present Value (PV)
Present Value is the value of something today that you need in order to
develop a certain amount in the future.
Here is an example: if you wanted to have 10,000$ in three years what
amount of money would you need today to get this amount if the money
was earning7%?
Would you need more or less than a future amount now to have that
amount in the future
Internal Rate of Return (IRR)
Discount Rate on an investment which makes present value of cash
inflows = present value of cash outflows
Project Selection Criteria: Select a project with higher IRR.
Example: There are 2 projects. Project A has an IRR of %15 and will be
completed in 5 years. Project B has an IRR of completed in 1 year.
Which project will you select
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duration than project A does not matter because time is already taken
into account in IRR calculations.
Life Cycle Cost: The overall estimated cost for a particular program
alternative over the time period corresponding to the life of the program.
Includes:
Direct and Indirect Costs,
Periodic or continuing costs of operation and maintenance,
Project Selection Criteria: For 2 projects having same investment
select a project with lower Life Cycle Cost
Payback Period: Number of years required for an organization to
recapture an initial investment.
Discount Rate is not taken into account in calculations for payback
period
Project Selection Criteria: Select a project with lower payback period.
Example: There are 2 projects. Project A has an investment of 500,000
$ and payback period of 3 years. Project B has an investment of 300,000
$ and payback period of 5 years. Using the payback period criteria
which project will you select
investment than project A will not impact the selection
Benefit Cost Ratio (BCR)
( )
=

BCR of 1 (means that benefits) i. e. expected revenue (is greater than the
cost. Hence, it is beneficial to do the project.
Project Selection Criteria: Select a project with the greater BCR
Example: There are 2 projects. Project A has an investment of 500,000
$ and BCR of 2.5 Project B has an investment of 300,000 $ and BCR of
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1.5 Using the Benefit Cost Ratio criteria which project will you select
investment than project A will not impact the selection
Benefit / Payback / Revenue = Cost + Profit incurred OR Cost Loss
incurred
Opportunity Cost: The cost of passing up the next best choice when
making a decision
Once the best option is decided the Opportunity cost of not doing the
other next option is determined this is used to calculate opportunity cost.
Example: There are 2 projects. Project A has as NPV of. 1,000 $ Project
B has a NPV of .800 $ what is the opportunity cost if Project A is selected
Answer: If project A is selected NPV is. 1,000 $ However if project A
is selected project B will be rejected i. e. a project with a potential NPV
of 800 $ will not be done. Hence the opportunity cost of Project A = 800
Sunk Cost: The cost that has already been incurred therefore cannot be
avoided going forward.
Project Selection Criteria: When deciding the best option ignore the
sunk costs because they have already been incurred and cannot be
avoided
Example: Project A had initial budget of 1,000 $ out of which 800 $ has
already been spent. To complete project A we will need additional .500
$ Another Project B will require 1200 $ for completion. Which project
do you want to select?
Answer: 800 $ spent in project A is sunk cost hence should be ignored.
So at this point of time Cost of completing project A =500 $, Cost of
completing project B =1200 $, Hence, we should select project A
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EV Exercise
Work Completion Budget Work Performed Actual

Cost Unit Date ($M) ($M) ($M)
A 31JAN 10 10 12
B 28FEB 5 4 5
C 31MAR 6 8 8
D 12MAY 15 13 12
E 30JUN 20 20 30
F 18JUL 3
G 30AUG 35
H 22SEP 22
I 29OCT 22
J 30NOV 9
EV Questions EV Answers
What is the Cost Variance? CV = EV AC= 55$ -67$ =-12$
What is the Schedule Variance? SV = EV PV = 55$- 56$ =-1$
What is the CPI? CPI = EV/AC = 55 / 67 =0.82
What is the SPI? SPI = EV/PV =55 /56 =0.98
What is the BAC? BAC = PV =147
EAC = BAC / CPI = 147 /0.82 =
What is the EAC?
179.27$
ETC = EAC- AC =179.27$ - 67$ =
What is the ETC?
112.27$
What is the Percent Complete? PC = EV / BAC =55 /147 = 0.37 = %37
What is the Percent Spent? PS = AC / BAC =67 /147 = 0.46 = %46
What can be said about this project? over cost a little behind schedule
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7.5 Cost Management Tips & Tricks

Progressive elaboration implies an increasingly
accurate estimate.
(These Percentages Are Important for The Exam):
Order of Magnitude Accuracy :25% to +75%, used
in the initiation process and in top-down estimating.
Budget Estimate Accuracy :10% to +25%, used early in the planning
process and also in top-down estimating.
Definitive Estimate Accuracy :5% to +10%, used late in the planning
process and in bottom-up estimating. Look out for any numbers, ranges,
percentages etc. in the PMBOK, as all are possible questions. The tool for
measuring project performance is Earned Value Management
(EVM). Earned Value is important for the exam: Over the last few years
there has been an average of twelve Earned Value questions in the exam,
and half of them involved calculations.
On A Complex Project where you are in unfamiliar territory you need to
employ a Subject Matter Expert (SME not to be confused with a Small to
Medium Enterprise).
And where the team in general is lacking necessary skills you should
provide training for them. The SME and training courses will need to be
budgeted for (cost and time). If the teams skills are still not up to the task
then consider outsourcing part of the project, or employing / hiring expert
staff, to spread the risk (at a cost). When a project is performed under
contract, know the difference between cost estimating (how much will it
cost you to create the product or service) and pricing (how much you will
charge to provide the product or service) Pricing (how much you will
charge) is a business decision, but of course the cost estimates are
considered in making pricing decisions.
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Estimate Costs should also consider alternatives, as the exam normally

considers you to be internal to the organization, e.g. would employing
additional expert staff, leasing more advanced machinery, or larger
premises, or investing more time in the planning stages, save money
overall? Bottom-up estimating is a team-building tool and assists with team
buy-in, because everyone gets involved and has input to the process. This
is why creating the WBS is also considered a team-building tool, as it is
created in this way. Learning curve. There is a reasonable chance you will
see this on the exam.
Simply put, people get faster/better with practice so with repetitive tasks,
or series of similar tasks, you can expect to see a decrease in cost and/or
time. When I was an accountant in Belfast I was involved in the audit of a
bus building company. The new buses required 5 coats of paint applied by
brush (not spray).
The buses had up to then been painted in Manchester and shipped over, but
recently the company had set up their own paint shop. Management had the
dreaded time-and-motion study experts observe the painting process, and
they calculated an average 390 person-hours *they were called man-hours
back then) to complete the painting of a single bus. It was then agreed with
the union that times under 390 hours would attract a bonus.
So far so good. I returned one year later and discovered that the average
time to paint a bus had dropped to 310 hours (so bonuses all round). But
one individual was able to paint a bus single-handed (well maybe he used
both hands and brushes who knows? in 39 hours!!! Guess who was getting
a humungous bonus. Yet his work passed all quality tests! Good old
learning curve! There will be no project management software-specific
questions on the exam but there may be questions where it is necessary to
know how PM.
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8.PROJECT QUALITYMANAGEMENT
The basic approach to project quality management described in the
PMBOK 5th is intended to be compatible with that of The International
Organization for Standardization (ISO).
This generalized approach should also be compatible with proprietary
approaches to quality management such as those recommended by
Deming ,Juran ,Crosby and others.
It is also compatible with non-proprietary approaches such as Total
Quality Management )TQM ,( Six Sigma ,Failure Mode and Effect
Analysis) FMEA) ,Design Reviews ,Voice of the Customer (VOC) ,
Cost of Quality (COQ) and Continuous Improvement.
Table(8- 1):Project Quality Management Overview
Monitoring
Planning Executing
&Controlling
12.2
8.1 12.3
Perform Quality
Plan Quality Control Quality
Assurance
Management
PM & QM-- SIMILARITIES Both recognize the importance of:

Customer satisfaction :Understanding ,evaluating ,defining ,and
managing expectations so that customer requirements are met.
Prevention over inspection :The cost of avoiding mistakes is much
less than the cost of correcting them.
Management responsibility :Success requires participation of all
members of the team ,but it is the responsibility of management to
provide resources needed.
Continuous Improvement :Plan/Do/Check/Act cycle.
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PM Vs QM Differences
Focus : QM systems focus on the entire organization ,while Project
Quality Management per the PMBOK Guide focuses on the projects.
Management Responsibility :The project manager has the ultimate
responsibility for the quality of the product of the project and the
Project Management deliverables ,while Senior Management has the
ultimate responsibility for the quality in the organization as a whole.
Quality Systems & Gurus
For the PMP Exam you need to know the paradigms and absolutes of the
main quality systems and gurus:
1. ISO 3. Deming
2. TQM 4. Crosby
5. Juran
Part of the International Standards Organization to ensure
that companies document what they do and do what they document.
ISO 9000 is not directly attributable to higher quality ,but may be an
important component of Perform Quality Assurance ,since it ensures
that an organization follows their processes.
Generally, ISO comes down to the following three steps:
o Document what you do.
o Do what you document.
o Document any variance (from the normal processes).
Quality Management Pioneers
Crosby = zero defects and prevention or rework results.
Juran = fitness for use ,conformance
Deming = quality is a management problem.
Kaizen () = continuous improvement.
Zero Defects is a concept developed by Philip Crosby
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Its foundation is to do something right initially, and you should not have
to repeat it .Implies that there is no tolerance for errors within the system.
The goal of all processes is to avoid defects in the product or service.
Similar to Six Sigma :almost zero defects (99.9997 %defect-free)
Fitness for use )JURAN(
Joseph Juan developed the fitness for use concept
It implies that the needs of the customers and Stakeholders are defined
and then attempted to satisfy.
W .Edwards is deeming
Quality is Continuous Improvement Through Reduced Variation.
Demings Most Important Principles :
The central problem is the failure of management to understand variation.
It is managements responsibility to know whether the problems are in
the system or in the behavior of the people.
Teamwork should be based on knowledge.
Design ,redesign ,Constant improvement is management responsibility.
Train people until they are achieving as much as they can.
It is managements responsibility to give detailed specifications.
PLAN DO CHECK ACT (Shewhart-Deming)
PLAN Establish the objectives and processes necessary to deliver results
in accordance with the expected output (the target or goals).
DO Implement the plan.
CHECK Study the actual results (measured and collected in "DO" above)
and compare against the expected results (targets or goals from the
"PLAN") to ascertain any differences.
ACT Request corrective actions on significant differences between actual
and planned results. Analyze the differences to determine their root
causes.
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Total Quality Management

Very proactive approach.
Utilize leadership and accountability.
Measure and strive for constant improvement.
Focused on prevention over inspection - it costs more to fix an error than
it does to prevent one.
Testing while developing provides an immediate feedback loop.
Process problems are more likely to be detected early on ,instead of at the
end.
Continuous improvement of the process is a key foundation of his view
on TQM.
Goals of Quality
Fitness for use.
Is the product or service capable of being used ?
Fitness for purpose.
Does the product or service meet its intended purpose?
Customer satisfaction.
Does the product or service meet the customer's expectations?
Conformance to the requirements.
Does the product or service conform to the requirements?
Grade VS .Quality
Grade deals with the characteristics of the product whereas; quality deals
with the stability or predictability of the product.
Examples of low grade could be a basic product without a lot of features
such as an inexpensive nail gun .It provides basic functionality ,but
doesn't't have a lot of extras ,and likely would be used by a homeowner
instead of a construction company .A high-grade product could be an
automatic nail gun that can handle 10 kinds of nails ,various levels of
pressure ,essentially meeting any type of nailing needs
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Quality deals more with how well something works .How dependable is
the lower grade or higher grade product ?If it breaks ,doesn't have good
directions ,or doesn't function as intended ,it could be lacking quality.
Accuracy VS. Precision
Accuracy deals with the values being measured aligning with the target
value.
For example, if you are testing a process and the target is 300milliliters,
output, accuracy would deal with how close the measurement is to the 300
milliliters target.
Precision deals with consistency of the output. If a test is acceptable or
not, the outcome being consistent is the desire if focusing on precision.
For example, how many of the outputs are 300 milliliters from the
accuracy example.
Prevention VS. Inspection
Prevention deals with eliminating defects and potential defects from the
process .This is the proactive approach to quality.
Inspection deals with fixing errors or defects as they come up in the
process of making the product or whatever is being tested or evaluated.
Figure(8- 1):Accuracy VS. Precision Relationship
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Prevention is simply keeping defects from occurring ,while inspection is

about catching the errors that have occurred before they impact others
outside the project.
What Is Gold Plating?
Gold Plating is the practice of providing more than what the customer
requested.
Per PMI ,this practice is unacceptable and professionally irresponsible.
The Project Manager and team should provide only that which was
approved ,exactly what the customer asked for and what they approve in
the Charter ,no more or no less.
Customer Satisfaction
Understanding ,evaluating, defining and managing expectations so that
customer requirements are met.
Customer Satisfaction = What Is Delivered Expectations
Voice of The Customer
A planning technique used to provide products, services, and results that
truly reflect customer requirements by translating those customer
requirements into the appropriate technical requirements for each phase of
project product development.
The Customer Is the Next Person in the Process
The internal organization has a system that ensures the product or service
is transferred to the next person in the process in a complete and correct
manner.
The product or service being built is transferred to another internal party
only after it meets all the specifications and all actions at the current
workstation.
Avoids incorrectly assembled components and poor workmanship.
Cost of Quality
Concepts That Provide Opportunities for Reducing Cost:
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Just-in-Time,
Product Maturity,
Product Life Cycle Cost,
Areas of Waste in Projects,
Just in Time (JIT).
This is an approach to decrease the amount of inventory that a company
carries ,thereby decreasing the investment in inventory.
A JIT philosophy directs a company to improve quality( forces attention
to quality )because extra material is not available.
Inventory costs money ,thus ,an increase in quality that lets you use JIT
can save your company money
What Is the Difference Between a Population and A Sample?
Population:
The total number of individual members ,items or elements comprising a
uniquely defined group.
For example :all women.
Sample:
A subset of population members.
For example :women over the age of 30 in England.
Statistical Independence
When the outcomes of two processes are not linked together nor
dependent upon each other ,they are statistically independent.
Attribute sampling vs .Variable sampling
Attribute sampling is either a work result conforms to quality or it does
not.
Variable sampling ,measures how well something conforms to quality.
Example :A production facility making prescription drugs:
Using attribute sampling ,they would define tolerances a batch of
product would be tested ,and it would either pass or fail that inspection.
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Using variable sampling ,however ,the batch of product would be rated

on a continuous scale) perhaps one parts per million( that showed
howwell the batch conformed to ideal quality.
Standard Deviation
Standard deviation is a statistical calculation used to measure and describe
how data is organized.
The following graphic of a standard Bell curve illustrates standard
deviation.
If the data set is" normally distributed ",as it is in the preceding chart ,the
following statistics will be true:
68.25 %of the data points (or values) will fall within1 from the mean.
95.46 %of the values will fall within2 from the mean.
99.73%of the values will fall within3 from the mean.
99.99966%of the values will fall within6 from the mean.
Figure(8- 2): Bell Curve

If the data set is" normally distributed ",as it is in the preceding chart ,the
following statistics will be true:
The higher your standard deviation ,the more diverse your data points are.
SD is used to set quality levels )Six Sigma(
SD is used to set control limits to determine if a process is in control
(control charts).
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SIGMA
Sigma is also known as standard deviation
The formula for standard deviation is )P-O)/6.
P is Pessimistic ,O is Optimistic.
Special causes vs .Common causes
Special causes are considered preventable by process improvement, while
common causes are generally accepted.
Example: If your manufacturing process produced 250 defects per
1,000,000 due to assembly errors ,that might be considered a special cause
If you are, manufacturing process produced one defect in a million due to
bad raw materials that might be considered a common cause
Tolerances Vs .Control Limits
Tolerances deal with the limits your project has set for product acceptance.
For instance ,you may specify that any product will be accepted if it
weighs between 12 and 15 grams .Those weights would represent your
tolerances for weight.
Control limits are set at three standard deviations above and below the
mean .As long as your results fall within the control limits ,your process
is considered to be in control.
Tolerances focus on whether the product is acceptable ,while control
limits focus on whether the process itself is acceptable.
Control Charts
Graphic displays of the results ,over time ,of a process ;used to assess
whether the process is in control.
Quality Processes Definitions:
1. Plan Quality Management
The process of identifying quality requirements and/or standards for the
project & product ,and documenting how the project will demonstrate
compliance.
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Figure(8- 3): Control Chart

2. Perform Quality Assurance
The process of auditing the quality requirements and the results from
quality control measurements to ensure appropriate quality standards and
operational definitions are used.
3. Control Quality
The process of monitoring and recording results of executing. the quality
activities to assess performance and recommend necessary changes.
Involves identifying which quality standards are relevant to the project &
determining how to satisfy them
8.1 Plan Quality Management
Inputs
Tools &Techniques
1. Project outputs
management plan 1. Cost-benefit
2. Stakeholder analysis
register 2. Cost of quality
3. Risk register 3. Seven basic quality 1. Quality management
4. Requirements tools plan
documentation 4. Benchmarking 2. Process
5. Enterprise 5. Design of improvement plan
environmental experiments 3. Quality metrics
factors 6. Statistical sampling 4. Quality checklists
6. Organizational 7. Additional quality 5. Project documents
process assets planning tools updates
8. Meetings
Figure(8- 4 ):Plan Quality Management Process
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OUTPUTS
1. Quality Management Plan
Describes how the quality policy will be implemented.
Provides input to the overall project plan.
Must address quality control, quality assurance and continuous
improvement for the project.
Should include all efforts necessary to ensure that the earlier decisions
(on concepts, design, tests, etc.) are correct.
2. Process Improvement Plan
The process improvement plan is a subsidiary or component of the project
management plan (Section 4.2.3.1). The process improvement plan details
the steps for analyzing project management development processes, to
identify activities that enhance their value.
Areas to consider include:
Process boundaries. Describe the purpose of the process, the start and end
of the process, its inputs and outputs, the process owner, and the
stakeholders of the process if any.
Process configuration. Provides a graphic depiction of processes, with
interfaces identified, and used to facilitate analysis.
Process metrics. Along with control limits, allows analysis of process
efficiency.
The Target of Improved Performance. Guide The Process
Improvement Activities.
3. Quality Metrics
Metric = operational definition that describes in very specific terms, what
something is, and how quality control process measures it
A measurement is an actual value
Quality metrics are used in QA and QC processes.
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Examples:
o It is not adequate for the team to say that the system needs to have a rapid
response time. Instead, a quality metric might specify that a system must
respond within two seconds to 99% of all requests up to 1,000
simultaneous users.
What is a variable?
o A characteristic to measure, for examples:
Size
Shape
What is an attribute?
o The measurement, for examples:
Inches
Meters
Pounds
4. Quality Checklists
A checklist is a Plan quality output put to ensure that all steps performed,
and that they were performed in the proper sequence.
Establish a common reference for quality management execution.
Are especially effective when developed and improved over several
projects.
They are developed here and used in the process of Perform Quality
Control.
TOOLS & TECHNIQUES
1. Cost Benefit Analysis
Plan quality must consider cost-benefit trade-offs
Primary benefit of meeting quality requirements is Less reworkhigher
productivity ,lower costs and increased stakeholder satisfaction
Quality can be expensive to achieve.
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Primary cost = expenses associated with Project Quality Management

activities.
No activities should be performed that cost more (or even the same) as
the expected benefits, (in general).
2. Cost of Quality
Are total costs incurred by investment in preventing nonconformance to
requirements.
Appraising the product / service for conformance to requirements
Failing to meet requirements )rework)
Failure costs COPQ )Costs of Poor Quality)
Typical project should have a goal of between 3-5 %of total value as cost
of quality.
Types of Costs:
o Prevention Costs
o Appraisal Costs
o Failure Costs
Internal
External
At least 85% of the costs of quality are the direct responsibility of
management
o Cost of conformance:
The Cost of Processes Proactive Quality:
Planning, Training,
Process control, Product design evaluation,
Test & evaluation, Quality audits,
Maintenance, Inspection.
Field testing,
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Cost of Non-Conformance:
The cost of quality failure, Scrap,
Rework, Additional material / inventory,
Warranty repairs & service, Complaint handling,
Liability judgments, Product recalls,
Field service, Expediting.
Figure(8- 5): Storyboard Illustrating a Conceptual Example of Each of the Seven

Basic Quality Tools
3. Seven Basic Quality Tools

Cause-and-effect diagrams,
Flowcharts,
Check sheets,
Histograms,
Pareto diagrams,
Control charts,
Scatter diagrams,
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4. Benchmarking
Involves comparing actual or planned project practices to those of other
projects to generate ideas for improvement and to provide a basis to
measure performance.
other projects within or outside the performing organization. in the same
or other application area.
These other projects may be from the industry ,such as an automaker
setting quality standards based on those of other automobiles in their class,
or it may be based on projects previously executed by the performing
organization.
5. Design of Experiments (DOE)
Statistical method that helps identify which factors may influence specific
variables of a product / process.
Plays a role in the optimization of products / processes.
Provides a statistical framework for systematically changing all of the
important factors instead of changing the factors one at a time.
It uses data analysis to determine optimal conditions.
To reduce the effects of random error.
Improving project quality decisions (what to measure, how to measure it
and the final deliverable)
Saving time and money on the project.
6. Statistical Sampling
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).
7. Additional Quality Planning Tools
Brainstorming .This technique is used to generate ideas.
Force field analysis .These are diagrams of the forces for and against
change.
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Nominal group technique .This technique is used to allow ideas to be

brainstormed in small groups and then reviewed by a larger group.
Quality management and control tools. These tools are used to link and
sequence the activities identified )defined in Section 8.2)
8.2 Perform Quality Assurance
(QA) is the application of planned, systematic quality activities to ensure
that the project employs apply all processes needed to meet
requirements.
Inputs
Tools &Techniques
outputs
1. Quality
management plan
2. Process
improvement plan 1. Change requests
1. Quality management
3. Quality metrics 2. Project management
and control tools
plan updates
4. Quality control 2. Quality audits
measurements 3. Project documents
3. Process analysis updates
5. Project documents 4. Organizational
process assets
updates
Figure(8- 6):Perform Quality Assurance Process
Perform Quality Assurance is an executing process.

Primarily concerned with overall process improvement
It is not about inspecting the product for quality or measuring defects.
Instead ,Perform Quality Assurance is focused on steadily improving the
activities and processes undertaken to achieve quality.
INPUTS
1. Quality Control Measurements
The quality control measurements can be thought of as a feedback loop.
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As changes are evaluated here in the process of Perform Quality

Assurance, they are measured in Perform Quality Control and feedback
into this process for evaluation.
Are the results of the quality control activities that are feedback to QA
process for use in re-evaluating and analyzing the quality standards and
processes of the performing organization.
TOOLS & TECHNIQUES
1. Quality Management and Control Tools
Affinity Diagrams :is similar to mind-mapping techniques in that they
are used to generate ideas that can be linked to form organized patterns of
thought about a problem. In project management, the creation of the WBS
may be enhanced by using the affinity diagram to give structure to the
decomposition of scope
Figure(8- 7):Affinity Diagram
Process Decision Program Charts (PDPC( : used to understand a goal

in relation to the steps for getting to the goal .The PDPC is useful as a
method for contingency planning because it aids teams in anticipating
intermediate steps that could derail achievement of the goal.
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Figure(8- 8): Process Decision Program Charts(PDPC)
Interrelationship Digraphs: The interrelationship digraphs provide a

process for creative problem solving in moderately complex scenarios that
possess intertwined logical relationships for up to 50 relevant items. The
interrelationship digraph may be developed from data generated in other
tools such as the affinity diagram, the tree diagram, or the fishbone diagram.
Figure(8- 9): Interrelationship Digraphs
Tree Diagrams: Also known as systematic diagrams and may be used to

represent decomposition hierarchies such as the WBS ,RBS (risk
breakdown structure) ,and OBS (organizational breakdown structure)
In project management ,tree diagrams are useful in visualizing the parent-
to-child relationships in any decomposition hierarchy that uses a
systematic set of rules that define a nesting relationship.
Tree Diagrams can be depicted horizontally (such as a risk breakdown
structure) or vertically (such as a team hierarchy or OBS), because tree
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diagrams permit the creation of nested branches that terminate into a single
decision point ,they are useful as decision trees for establishing an expected
value for a limited number of dependent relationships that have been
diagramed systematically.
Figure(8- 10):Tree Diagrams
Prioritization Matrices :Identify the key issues and the suitable

alternatives to be prioritized as a set of decisions for implementation.
Criteria are prioritized and weighted before being applied to all available
alternatives to obtain a mathematical score that ranks the options.
Figure(8- 11):Priority Matrix
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Activity Network Diagram: Previously known as arrow diagrams. They

include both the (AOA Activity on Arrow( and ,most commonly used ,
(AON Activity on Node) formats of a network diagram. Activity network
diagrams are used with project scheduling methodologies such as
program evaluation and review technique PERT) CPM critical path
method), and (PDM precedence diagramming method)
Figure(8- 12): Activity Network Diagram
Matrix Diagrams: A quality management and control tool used to perform

data analysis within the organizational structure created in the matrix. The
matrix diagram seeks to show the strength of relationships between
factors ,causes ,and objectives that exist between the rows and columns
that form the matrix.
2. Quality Audits
Audits (Key Tool) review the project to evaluate which activities taking
place on the project should be improved and which meet quality standards
The goal of the audits is both to improve acceptance of the product and
the overall cost of quality
Structured, independent review to determine whether the project activities
comply with organizational and project policies, processes and procedures
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Confirm the implementation of approved change requests ,corrective

actions ,defect repairs and preventive actions
May be scheduled or at random ,may be carried out by in-house or
external auditors
Figure(8- 13):Matrix Diagram
3. Process Analysis
Follow the steps outlined in the process improvement plan to ensure that
it is working efficiently and effectively
Examines problems experienced, constraints and non-value added
activities identified during process operation.
Include :root cause analysis specific technique to analyze a situation ,
determine the underlying causes that lead to it and develop preventive
actions for similar problems.
8.3 Control Quality
Perform Quality Control looks at specific results to determine if they
conform to the quality standards.
It involves both product and project deliverables, and it is done
throughout the project - not just at the end. Perform Quality Control
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typically uses statistical sampling rather than looking at each and every
output.
This process uses the tool of inspection to make sure the results of the
work are what they are supposed to be.
Involves monitoring specific project results to determine if they comply
with relevant quality standards.
Inputs
Tools &Techniques
1. Project outputs
management plan
2. Quality metrics 1. Quality control
3. Quality checklists 1. Seven basic quality measurements
4. Work performance tools 2. Validated changes
data 2. Statistical sampling 3. Verified
5. Approved change 3. Inspection deliverables
requests 4. Approved change 4. Work performance
6. Deliverables requests review information
7. Project documents 5. Change requests
8. Organizational 6. Project management
process assets plan updates
updates
8. Organizational
process assets
updates
Figure(8-14):Control Quality Management Process
Project Results include both product results such as deliverables and

project management results such as cost and schedule performance.
Often performed by a Quality Control Department or similarly titled
organization.
It is performed beginning with the production of the first product
deliverable and continues until all of the deliverables have been accepted.
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PM Team Requirements
o Should have working knowledge of SPC (Statistical Process Control) ,
especially sampling and probability ,to help evaluate QC outputs.
o Should know differences between
Prevention and inspection,
Attribute sampling and variables sampling,
Special causes and random causes,
Tolerances and control limits.
OUTPUTS
1. Quality Control Measurements
Quality control measurements are the documented results of control
quality activities. They should be captured in the format that was specified
through the Plan Quality Management process (Section 8.1).
2. Validated Changes
Any changed or repaired items are inspected and will be either accepted
or rejected before notification of the decision is provided .Rejected items
may require rework.
3. Verified Deliverables
A goal of quality control is to determine the correctness of deliverables.
The results of the execution quality control processes are validated
deliverables.
Validated deliverables are an input to Verify Scope )5.4( for formalized
acceptance.
TOOLS & TECHNIQUES
1. Seven Basic Quality Tools
A. Cause and Effect Diagrams (Ishikawa ,Fishbone)
Used to show how different factors relate together and might be tied to
potential problems.
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Used as part of an approach to improve quality by identifying quality

problems and trying to uncover the underlying cause.
Used to explore the future or the past.
May be used in Plan quality or control.
Figure(8- 15): Cause and Effect Diagram
B. Flowcharts
Graphical representation of a process that helps analyze how problems
occur.
Shows activities ,decision points and the order of processing.
Figure(8- 16):Flow Chart Diagram and The Liberary Procedures

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C. Check sheets
Check Sheets, Which Are Also Known as Tally Sheets And May Be
Used As A Checklist When Gathering Data.
Check sheets 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 check sheets are often displayed using Pareto diagrams.
D. Histogram
Figure(8- 17):Histogram
E. Pareto Chart 1/3

Specific type of histogram ordered by the frequency of occurrence (how
many defects were generated by type / category of cause( It graphically
prioritizes the causes of process problems( by frequency of occurrence) to
help focus attention on the most critical issues affecting quality.
Pareto's Law
Pareto diagrams are based on Pareto's Law, which is also known as the 80
/ 20 rule.
This rule states that %80 of the problems come from 20% of the causes
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Pareto chart is used to help determine the few root causes behind the
majority of the problems on a project.
It is used to focus energy on the problems most likely to change results.
This is a histogram showing defects ranked from greatest to least.
Figure(8- 18):Pareto Chart

F. Control Charts
Figure(8- 19):Control Chart
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G. Scatter Diagram
Powerful tool for spotting trends in data.
Shows the pattern of relationship / correlation between two variables
Helps identify the possible relationship in the changes observed in two
variables
How it works?
Dependent variables vs independent variables are plotted
The closer the points are to a diagonal line, the more closely they are
related
H. Scatter Diagram2
Suppose that the horizontal, or X axis, represented hours of study which
is your independent variable.
The vertical, or Y axis, represented your score on the PMP Exam, which
is the dependent variable.
The third graph would make sense, since the more people studied the
higher their scores tended to be.
The second graph, where the more the person studied, the lower their
score, you might deduce that the book they are reading is actually having
a negative effect.
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The first example graph below might lead you to deduce that the study
material being used.
Figure(8- 20):Scatter Diagram
Has no effect at all and therefore there is no correlation?

No Correlation Negative Correlation
Positive Correlation
Figure(8- 21):Types Of Correlation
What does the Rule of Seven mean?

Seven consecutive data points appearing on a control chart on one side of
the mean suggesting that the process is out of statistical control.
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1. Statistical Sampling
Control charts are part of a set of quality practices known as (SPC
Statistical Process Control) one way of depicting variations and
determining whether or not the process is in control.
If a process is statistically "in control" it does not need to be corrected. If
it is out of control ,then there are sufficient variations in results that must
be brought back statistically in line.
2. Inspection
Is the examination of a work product to determine whether it conforms to
standards?
Includes measuring ,examining and testing
Performed at various points in the project
Intensity level is dependent on the quality plan
Also referred to as reviews ,peer reviews ,audits and walkthroughs
3. Approved Change Request Review
Actions being taken by the quality control department to ensure that
product defects are repaired and brought in compliance with requirements
/specifications.
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8.4 Quality Tips & Tricks

Quality-related questions can be confusing because
many of the topics on the exam are not in the
PMBOK Guide and because PMI's quality
philosophy may be different from that of your
company. Some companies refer to what PMI calls Perform Quality
Assurance as quality planning. Some companies believe in giving the
customer extras, while PMI wants us to focus on meeting the
requirements. It is important to understand PMI's philosophy to answer
exam questions correctly. Therefore, know the following PMBOK related
to quality:
The project manager should recommend improvements to the performing
organization's Standards, policies, and processes. Such recommendations
are expected and welcomed by management.
Quality should be considered whenever there is a change to any of the
project constraints.
quality should be checked before an activity or work package is completed
The project manager must spend time trying to improve quality.
The project manager must determine metrics to be used to measure quality
before the project work begins.
The project manager must put in place a plan for continually improving
processes.
The project manager must make sure authorized approaches and processes
are followed.
Some quality activities may be done by a quality assurance or quality
control department.
The following table is a trick for correctly answering questions about
those three processes on the exam.
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Table(8- 2):The Exam Tricks On Quality Management
Plan Quality Perform Quality

Control Quality
Management Assurance
Process Group
Project monitoring &
Project Planning Project Executing
Controlling
High-Level Description of What Each Process Focuses On
What is quality? How Are we following the Are the results of our
will we Ensure it? procedures and work meeting the
How will we control processes as planned? standards?
it? Are the procedures and
processes Giving us
the intended results?
More Detailed Description of What Each Process Focuses On
Find existing quality Use measurements Measure the quality
practices, standards, from quality control to of deliverables to
and requirements for assess whether determine whether
the product, project, processes are being they meet
and project followed, and whether requirements.
management efforts. these processes are Evaluate the root
Create additional still appropriate for the cause of quality
project specific project. problems.
practices, standards, Perform continuous Identify the need for
and metrics. improvement to quality improvements
Determine the increase Efficiency (corrective or
processes that will be and effectiveness. preventive action, and
used on the project. Determine if project defect repair).
Determine what activities comply with Verify deliverables.
work you will do to organizational and Complete checklists.
meet the standards. project policies,
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Determine how you processes, and Update lessons

will measure to make procedures-quality learned.
sure you meet the audit. Submit change
standards. Find good practices. requests.
Perform cost of Share good practices Update the project
quality, cost-benefit with others in the management plan and
analysis, and other organization. project documents.
analysis work to Submit change
make certain that the requests.
appropriate level of Update the project
quality will be management plan and
planned in. project documents.
Balance the needs of
quality with scope,
cost, time, risk,
resources, and
customer satisfaction.
Create a process
improvement plan
and a quality
management plan as
part of the project
management plan.
The exam asks about Pareto diagrams in many ways and sometimes uses
unfamiliar words instead of the more common phrases. Remembering the
following about Pareto diagrams should help you on the exam.
Pareto diagrams
Help focus attention on the most critical issues,
prioritize potential causes of the problems,
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separate the critical few form the uncritical.

Histograms
You have probably seen many histograms but never realized they were
called histograms. A histogram displays data in the form of bars or
columns. This tool helps identify which problems are worth dealing with.
A typical histogram presents data in no particular order and without
reference to time. As with the Pareto diagram, you can anticipate in Plan
Quality management the potential problems, but then plot the results of
your measurements in Control Quality on a histogram to determine the
most pressing problems.
Control Chart
Much of what the exam focuses on regarding control charts is not in the
PMBOK Guide. But don't worry; the following explanation and exercise
will help you understand this tool, even if control charts are new to you.
Once you understand control charts, it is generally easy to get questions
about them right on the exam.
The following can be indicated on a control chart:
1. Upper and lower control limits
2. Mean (Average)
3. Specification Limits
4. Out of Control
5. Rule of Seven
Upper and Lower Control Limits
Control limits are often shown as tow dashed lines on a control chart.
These limits are the acceptable range of variation of a process's or
measurements results. Control limits indicate what is stable versus
unstable (out of control) in the process. Every process is expected to have
some variation in its results (e.g., each door manufactured will not be
exactly the same size.
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The project manager and relevant stakeholders need to analyze and

evaluate what would be appropriate upper and lower control limits for the
metrics or standard related to quality for this project normally this range
is calculated based on +/- 3 sigma, or standard deviations, but it can go as
high as +/- 6 sigma (sigma and standard deviations are discussed later in
this chapter).
Data points within this range are generally thought of as "in control;'
excluding the rule of seven (described later in this section), and are an
acceptable range of variation. Data points outside this range indicate the
process is out of control.
The concept of control limits is also important outside of a control chart.
A project manager can have control limits for many things. How about for
a work package? Is one hour late in its delivery a problem? How about
one day? Such control limits help the project manager know when to take
action.
Mean (Average)
The mean is indicated by a line in the middle of the control chart. It shows
the middle of the range of acceptable variation. A normal distribution curve
represents the acceptable range of variance around a mean, and is likely to
fall within the boundaries of the control limits.
Specification Limits18
While control limits represent the performing organization's standards for
quality, specification limits represent the customer's expectations or
contractual requirements for performance and quality on the project.
Specification limits are characteristics of the measured process and are not
inherent. In other words, specification limits are not calculated based on the
control chart; instead, they are inputs from the customer. Therefore, they
can appear either inside or outside of the control limits. To meet the
customer's specification limits, the performing organization's standards for
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quality (control limits) must be stricter than those of the customer. Agreeing
to do a project when your work does not meet the customer's quality
standards adds waste and extra management to the project to sort out
acceptable items. Therefore, on the exam, assume that specification limits
are outside the upper and lower control limits.
Out of Control
The process is out of a state of statistical control under either of two
circumstances:
A data point falls outside of the upper or lower control limit.
There are nonrandom data points; these may be within the upper and lower
control limits, such as the rule of seven (described next).
Think of "out of control" as a lack of consistency and predictability in the
process or its results.
Rule of Seven
The rule of seven is a general rule, or heuristic. It refers to a group or series
of nonrandom data points that total seven on one side of the mean. The rule
of seven tells you that, although none of these points are outside of the
control limits, they are not random and the process is out of control. The
project manager should investigate this type of situation and find a cause.
Assignable Cause/Special Cause Variation
An assignable cause or special cause variation Signifies that a process is
out of control. If there is an assignable cause or special cause variation, it
means a data point or series of data points (as discussed with the rule of
seven) falls outside the control limits and requires investigation to
determine the cause of the variation. The project manager could use
additional tools, such as a cause and effect diagram, to try to uncover the
root cause of the variation.
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Table(8- 3):Tools And Techniques Tricks In Quality
Plan Quality Perform Quality

Control Quality
Management Assurance
Seven basic quality Any tools from Plan Seven basic quality
tools: Quality Management tools:
Cause and effect and Control Quality Cause and effect
diagram can be used to check if diagram
Flowchart proper processes were Flowchart
Check sheet followed or if Check sheet
Pareto diagram processes need to be Pareto diagram
Histogram improved Histogram
Control charter Control chart
Scatter diagram Scatter diagram
(many of these are
set up in planning,
and then used in the
other processes)
Statistical sampling Quality audits Statistical sampling

(sample size and (samples taken in
process determined in quality
planning) control)
Quality checklists Process analysis Quality checklists
(created in planning) (used to check quality
in quality control)
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Cost-benefit analysis Diagrams such as Inspection

affinity diagrams,
process decision
program charts
(PDPC),
interrelationship
digraphs, tree
diagrams, matrix
diagrams, prioritization
matrices, activity
network diagrams
Cost of quality
Benchmarking
Design of experiments
Brainstorming,
nominal group
technique, force field
analysis
201
202
9.PROJECT HR MANAGEMENT
PMIS PHILOSOPHY OF HRM
The content is drawn from basic management theory ,organizational
behavior ,psychology and the field of human resources.
Project Resource management defines the roles of the project manager ,
senior management ,sponsor and team while influencing everyone who
has a role on the project.
PMI's philosophy of leadership and power are based on the realization that
the project manager is rarely given complete and unquestioned authority
on a project.
The project manager must be able to lead, motivate and persuade people
to act in the best interest of the project and must be able to build a team
and lead members to give their best effort to the project.
Table (9- 1):Project HR Management Overview
Planning Executing
9.2
Acquire Project Team
9.1 9.3
Plan HR Management Develop Project Team
9.5
Manage Project Team
Project Managers Roles

Integrator
Communicator
Team Leader
Decision Maker
Climate Builder
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HR Considerations
Temporary nature of projects
Changing stakeholders
Administrative responsibilities.
Figure(9- 1):Types Of Organization Structure
HR Processes Definitions
Plan Human Resource Management:
Identifying and documenting project roles ,responsibilities ,and
reporting relationships ,as well as creating the staffing management plan
Acquire Project Team:
Obtaining the human resources needed to complete the project
Develop Project Team:
Improving the competencies and interaction of team members to enhance
project performance.
Manage Project Team:
Tracking team member performance, providing feedback, resolving
issues, and coordinating changes to enhance project performance
Determine roles ,responsibilities and reporting relationships. The roles
can be assigned to individuals or to groups.
This process lays out how you will staff ,manage team-build ,assess ,and
improve the project team.
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9.1 Plan Human Resource Management

Individuals and groups may be part of the organization performing the
project, or external to it.
In most projects ,majority of Develop Human Resource Plan is done in
the earliest project phases.
Tightly linked with Plan Communications, since the projects
organizational structure will have a major effect on the projects human
resource requirements.
Inputs
Tools &Techniques
1. Project outputs
management plan
2. Activity resource 1. Organization charts
and position
requirements
descriptions
3. Enterprise
environmental
2. Networking
3. Organizational 1. Human resource
factors
theory management plan
4. Organizational
process assets 4. Expert judgment
5. Meetings
Figure ( 9- 1): Plan HR Management Process
OUTPUTS
1. Human Resource Management Plan
Describes when & how human resources will be brought on to & released
off from the project team and how they will be trained
This is particularly important since reporting relationships that exist on a
project will often be different than those which exist in the organization.
Subset of overall project plan.
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Roles and Responsibilities

o Title :The label describing the position of a project for which a person is
accountable.
o Responsibility :The work that a project team member is expected to
perform in order to complete the projects activities.
o Authority :The rights to apply project resources, make decisions, and
sign approvals.
o Competency :Skill level needed to be able to perform this role.
o Accountability: Means being answerable for the successful completion
of specified objectives.
Accountability = Responsibility + Authority
Key Players in Project Environment
The Project Sponsor
The Project Manager
The Resource Manager
The Project Team Member
The Project Sponsor
A single individual assigned by management to approved projects who
has sufficient organizational authority to determine the scope of a project
and approve the corresponding time and cost elements which will deliver
the approved scope.
The role of the sponsor is to be focal point for project decisions that are
beyond the authority of the PM.
Role of Project Sponsor
Approve the business case for a project.
Approve the business requirements for a project.
Approve the negotiated scope ,time ,and costs and secure final approval
for the project.
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Approve project scope changes and consequent changes in time and/or

cost over the lifespan of the project.
Review progress and provide strategic direction to the PM.
Set priorities and resolve conflicts escalated by the PM, customer, or
functional managers.
The Project Manager
Is responsible for the coordination of the project team and ,ultimately ,
for managing the project plan to enable the successful completion of the
project on time, within budget and at the expected level of quality.
Role of Project Manager
Identify the skills needed on the team, and negotiate with the resource
managers for assignment of appropriate people.
Coordinate tasks on the work breakdown structure )WBS).
Negotiate the time frames in which tasks are to be performed (with
technicians).
Develop and consolidate project plans.
Track milestones, deadlines, schedules, recourse utilization, budgets,
risks ,
Changes of scope ,quality of deliverables ,and other project elements.
Act as a liaison (relation) with top management and the project client.
Issue status reports and conduct status review meetings.
Coordinate with outside subcontractors ,consultants ,and vendors.
Recommend changes to schedule ,resource requirements ,and budgets ,
when required.
The Resource Manager
Is responsible for having available a department of subject-matter
experts, engineers, software programmers, lawyers, or other
professionals and service providers .They form the resource pool from
which the manager of the project staffs his or her project.
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The Project Team Member

The project team member is a representative of a functional department
and a contributor to the project team.
Role of Project Team Member
Provide input regarding project objectives and scope.
Define/design/perform assigned tasks ,or assign people to do so.
Determine time estimates for tasks that are to be performed.
Interact with other functional areas and other team members
TOOLS & TECHNIQUES

1. Organization Charts and Position Descriptions
Hierarchical-type chart
Showing who reports to who
Matrix-based charts
Illustrates the connections between work that needs to be done and
project team members.
Text-oriented formats
Describes roles and responsibilities of each position on the project.
Figure ( 9- 2):Roles And Responsibilities Definitions Format
208
Hierarchical-Type Charts
Work Breakdown Structure
Organizational Breakdown Structure
Resource Breakdown Structure
Matrix-Based Charts
RAM Responsibility Assignment
Matrix.
Shows level of responsibility for
groups &/or individuals
Graphically links the work to be done to those doing it.
A structure that relates the project organizational, breakdown structure, to
the work breakdown structure to help ensure that each component of the
projects scope of work is assigned to a responsible person.
Matrix charts are used to illustrate which roles on the project will be
working with which work packages and what their responsibilities will
be.
(RAM) Responsibility Assignment Matrix (RAM), displays work
packages in the rows and the roles in the columns. Each cell shows how
that role will work on that particular work package.
RACI chart" ray-cee "derive their name from:
R for Responsible
A for Accountable
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C for Consult
I for Inform
Only one person is assigned accountability for a work package ,but more
than one person may be responsible for performing the work on a work
package.
Figure ( 9- 3): RACI Matrix

Text-oriented formats
Provide information such as responsibilities ,
authority ,competencies ,and qualifications.
Follow the format of a position description ,
detailing out what responsibilities each
position on the project will involve and what qualifications will be needed
to fill these positions
This tool is particularly useful in recruiting.
2. Networking
Networking is the process of communicating with others within your
"network "of contacts. By tapping into his network of contacts ,a project
manager can leverage provide his expertise on issues related to human
resources on the project.
210
Informal interaction with others in an organization or industry to

understand political and interpersonal factors that will impact the
effectiveness of various staffing management options.
3. Organizational Theory
Provides information regarding the
ways that people ,teams ,and
organizational units behave. Groups
behave differently than individuals ,
and it is important to understand how
organizations and teams behave.
9.2 Acquire Project Team
Inputs
Tools &Techniques
1. Human resource outputs
1. Pre-assignment
management plan
2. Negotiation
2. Enterprise
environmental
3. Acquisition
4. Virtual teams 1. Project staff
factors assignments
3. Organizational 5. Multi-criteria
decision analysis 2. Resource calendars
process assets. 3. Project management
plan updates
Figure ( 9- 4): Acquire Project Team Process
OUTPUTS
1. Project Staff Assignments
Each defined role should have a resource assigned to it.
These assignments may happen several times throughout the process, as
resources are needed.
For instance, it would typically be difficult to assign a particular person
to a role that will not be needed for a year.
Staff assignments contain a list of all team members for the project.
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As resources are assigned to the project ,the time they are assigned to
work on activities should be documented.
Each resource's forecasted time on the project should be documented.
TOOLS& TECHNIQUES
1. Pre-assignment
It is normal on project for the roles to be defined first.
Later, resources are assigned to perform those roles and fulfill the
responsibilities ;however ,occasionally specific resources will be pre -
assigned to fill a role.
This may occur before the staffing management plan has been
Developed and even before the project formally begins.
2. Negotiation
Negotiating is an important skill for project managers to cultivate
(encourage).
Project managers often have to negotiate for resources ,both inside and
outside the organization.
3. Acquisition
The tool of acquisition ,as used here ,can be a bit misleading ,since the
overall process is" Acquire Project Team".
The tool of acquisition refers to looking outside the organization for
resources when they cannot be provided by your organization.
The tool of acquisition ,as used here ,can be a bit misleading ,since the
overall process is" Acquire Project Team".
The tool of acquisition refers to looking outside the organization for
resources when they cannot be provided by your organization.
4. Virtual Teams
Virtual teams have become much more popular over recent years.
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A virtual team is a group of individuals who may or may not see each
other in person.
Instead ,they typically use communication tools to meet online ,share
information ,and collaborate on deliverables.
5. Multi-Criteria Decision Analysis
By use of a multi-criteria decision analysis tool ,criteria are developed
and used to rate or score potential team members.
The criteria are weighted according to the relative importance of the needs
within the team.
Some examples of selection criteria that can be used to score team
members are shown as follows:
o Availability.
o Cost.
o Experience.
o Ability.
o Knowledge.
o Skills.
o Attitude :Determine whether the member has the ability to work with
others as a cohesive team.
o International factors :Consider team member location ,time zone and
communication capabilities.
9.3 Develop Project Team
The process necessary for improving the competencies and interaction of
team members to enhance project performance
Enhancing the ability of stakeholders to contribute as individuals.
Enhancing the trust and cohesiveness among team members in order to
raise productivity through better teamwork.
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Complicated in a matrix organizational structure, because individual team

members are accountable to both a functional manager and project
manager.
Inputs
Tools &Techniques
1. Interpersonal skills
1. Human resource outputs
management plan 2. Training
2. Project staff 3. Team-building
assignments activities
3. Resource 4. Ground rules 1. Team performance
calendars 5. Colocation assessments
6. Recognition and 2. Enterprise
rewards environmental
7. Personnel factors update
assessment tools
Figure ( 9- 5): Develop Project Team Process
OUTPUTS
1. Team Performance Assessment
The evaluation of a teams effectiveness may include indicators such as:
Improvements in skills needs that allow individuals to perform
assignments more effectively,
Improvements in competencies needs that help the team perform better
as a team,
Reduced staff turnover rate ,and
Increased team cohesiveness where team members share information
and experiences openly and help each other to improve the overall
project performance.
As a result of conducting an evaluation of the teams overall performance ,
the project management team can identify the specific training ,coaching ,
mentoring ,assistance ,or changes required to improve the teams
performance.
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2. OBAs. Updates
They include ,but are not limited to ,personnel administration ,including
updates for employee training records and skill assessments.
TOOLS & TECHNIQUES
1. Interpersonal Skills
These are sometimes known as soft skills ,and are particularly
important to team development.
Leading, Communicating,
Negotiating, Motivating,
Problem solving, Influencing the organization.
2. Training
Training can include a wide range of activities; any instruction or
acquisition of skills that increases the ability of the team or individuals to
perform their jobs.
If a team member does not have the skills needed to carry out their
responsibilities, then training may be a good option.
In most cases training should be paid for by the performing organization
or the functional manager and not by the customer or the project.
3. Team-Building Activities
Any activity that enhances or develops the cohesiveness of the team.
Focusing on building bonds and relationships among team members.
Although team-building may be treated as a special event, it can occur
while performing regular project responsibilities ,and becomes more
important as the project progresses.
Team building cannot be forced .The project manager, who should work
to include all members of the team and produce a shared goal, should
model it.
Why Team Building?
People come together to solve mutual )shared( problems
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Conflict resolution
Helps to motivate members
Enhances productivity
Creates a support base
Interdependence
Reduces communication problems
Collective strength
High quality decision-making
Increased job satisfaction
Synergy
Effective Team Communications
Be an effective communicator.
Be a communications expediter.
Get rid of communication blockers.
Use a tight matrix.
Have a war room.
Make meetings effective.
Team Development
One theory states that there are five stages of development that teams may
go through .Usually these stages occur in order .However ,its not
uncommon for a team to get stuck in a particular stage or slip to an earlier
stage .In addition ,projects with team members who have worked together
in the past could skip a stage. (Bruce Tuckman)
Forming: this phase is where the team meets and learns about the project
and what their formal roles and responsibilities are .Team members tend
to be independent and not as open in this phase.
Storming: the team begins to address the project work ,technical
decisions ,and the project management approach .If team members are
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not collaborative and open to differing ideas and perspectives the

environment can become destructive.
Norming: team members begin to work together and adjust work habits
and behaviors that support the team .The team begins to trust each other.
Performing: teams that reach the performing stage function as a well-
organized unit .They are interdependent and work through issues
smoothly and effectively.
Adjourning: in the adjourning phase ,the team completes the work and
moves on from the project ).Reference PMBOK Guide(
4. Ground Rules
A list of acceptable and unacceptable behaviors adopted by a project team
to improve working relationships, effectiveness, and communication.
Formal or informal rules
A link between performance & reward
Authority appropriate for responsibility
System specific to needs of project
For instance, everyone on the project shares responsibility for protecting
the security of project data
5. Co-location
Most active team members are placed in one physical location
To enhance team members ability to perform as a team
To encourage interaction
Co-location can be temporary or for the entire project duration
When not viable ,alternative is frequent face-to-face meetings
6. Recognition and Rewards
Formal management actions ,which promote or ,reinforce desired
Behavior.
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7. Personnel assessment tools

Personnel assessment tools give the project manager and the project team
insight into areas of strength and weakness.
These tools help project managers assess the team preferences ,
aspirations ,how they process and organize information ,how they tend to
make decisions ,and how they prefer to interact with people.
Various tools are available such as attitudinal surveys ,specific
assessments ,structured interviews ,ability tests ,and focus groups.
These tools can provide improved understanding ,trust ,commitment ,and
communications among team members and facilitate more productive
teams throughout the project.
9.4 Manage Project Team
The process necessary for tracking team member performance ,providing
feedback, resolving issues, and coordinating changes to enhance project
performance.
Inputs
Tools &Techniques
1. Human resource
2. Project staff 1. Change requests
assignments 1. Observation and 2. Project management
3. Team performance conversation
plan
assessments 2. Project performance updates
4. Issue log appraisals
5. Work performance 3. Conflict updates
reports management
4. Enterprise
6. Organizational 4. Interpersonal skills environmental
process asseta factors updates
5. Organizational
process assets
updates
Figure ( 9- 6):Manage Project Team Process
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INPUTS
1. Issue Log
A point or matter in question or in dispute, or not settled and is under
discussion or over which there are opposing views or disagreements.
Anything that threatens project progress.
It could be specific, such as a technical concern, or general, such as a
personality conflict among team members.
A place to record issues that require resolution. Along with each issue ,
the person or people responsible for resolving the issue should be
documented ,as well as due dates for the desired resolution
Table (9- 2):Issue Log Template
Current Issue /
Area of Resolution Next
Issue Degree of Strategy
Impact Strategy Review Date
Impact Owner
How the
Specific
issue is Team
Full individual , Current
being member Date for
sentence function , condition of
handled or name reassessment
narrative customer , the area of
managed responsible of the issue ,
describing product or impact ,
or will be for the impact ,and
the other based on the
managed issue and strategy
problem area of issue
in the strategy
impact
future
2. Work Performance Reports

Work Performance reports provide
documentation about the project status
compared to project forecasts.
Performance areas that can help with
project team management include results from schedule control, cost
control, quality control ,and scope verification.
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The information from performance reports and related forecasts assists in

determining future human resource requirements, recognition and
rewards, and updates to the staffing management plan.
TOOLS & TECHNIQUES
1. Observation and Conversation
Are used to stay in touch with the work and attitudes of project team
members.
2. Project Performance Appraisals
Where the project manager and other personnel managers meet with the
people who report to them on the project and provide feedback on their
performance and how they are conducting their job.
Using the tool of 360 degrees ,feedback is provided from all directions
and often from individuals both internal and external to the project, and
occasionally even vendors and external contractors
Project Performance Appraisals
o Objectives for conducting project performance appraisals include:
Re-clarification of roles and responsibilities,
Structured time to ensure team members receive positive feedback,
Discovery of unknown or unresolved issues,
Development of individual training plans,
Establishment of specific goals for future periods
3. Conflict Management
What is a CONFLICT?
o Traditional View
Caused by Trouble Makers
Bad
Should Be Avoided
Must Be Suppressed (forbid)
o Contemporary View
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Inevitable (sure)Between Humans

Often Beneficial
Natural Result of Change
Can and Should Be Managed
o Conflicts
Conflicts are inevitable in project teams
Conflicts between team members must be resolved to promote team
success
Individuals are not usually aware of their behaviors in situations when
conflict arises
Its just as difficult for people to manage agreement as it is to manage
conflict
o The greatest project conflict occurs between project managers and
functional managers.
o Most conflict on a project is the result of disagreements over schedules ,
priorities ,and resources. This finding runs contrary to a commonly held
belief that most conflicts are the result of personality differences.
o Causes of Project Conflicts / Intensity
Conflict over schedule,
Conflict over project priorities,
Conflict over manpower resources,
Conflict over technical opinions,
Conflict over administrative procedures
Conflict over cost objectives,
Personality conflicts,
Over 50% of project conflicts result
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Figure ( 9- 7):Conflict Resolution Methods
Conflict Parties
5 Steps to Prevent Conflict
Assume the other person has a different value relating style than yours
Beware of the orientation of the other person
Avoid overdoing personal strengths
Think collaboratively
Respect others value relating style
Consider for a moment the problem of a door that is stuck shut .There are
several ways to approach this problem:
You may want to throw your weight against the door ,pounding it with
your shoulder.
You might elect to try to go in the room from another point of entry.
You could try to take the hinges off the door to make it come apart
You might choose to ignore the problem of the stuck door, avoid in it
altogether, or hope someone else will take care of it.
You could attempt to find out why the door was stuck in the first place
and deal with that problem.
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In the same way there are several ways to approach conflict resolution.
Because conflict is inevitable ,you should be aware of the common ways
of handling it.
Types of Conflict Resolution:
Withdrawal: Retreat or withdraw from actual or potential disagreement
and conflict.
Smoothing: De-emphasize differences (avoiding areas of differences)
and emphasize focus on commonalties over issues (emphasizing areas of
agreement).
Compromising: Bargaining trade and searching for solutions which
attempt to bring some degree of satisfactions to the conflicting parties in
a dispute. Characterized by a give and take attitude.
Forcing: Exerting ones point of view at the expense of another party. (a
win-lose solution to a conflict).
Confrontation: Facing the conflict directly; address the disagreement and
utilize a problem solving approach whereby parties work through their
disagreements.
Figure ( 9- 8): Types of Conflict Resolution
Project managers use a combination of technical ,personal ,and
conceptual skills to analyze situations and interact appropriately with
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team members .Using appropriate interpersonal skills allows project

managers to capitalize on the strengths of all team members.
Examples of interpersonal skills that a project manager uses most often
include:
Leadership :Successful projects require strong leadership skills.
Leadership is important through all phases of the project life cycle.
There are multiple leadership theories defining leadership styles that
should be used as needed for each situation or team.
It is especially important to communicate the vision and inspire the
project team to achieve high performance.
Influencing :Because project managers often have little or no direct
authority over team members in a matrix environment ,their ability to
influence stakeholders on a timely basis is critical to project success .Key
influencing skills include:
Ability to be persuasive and clearly articulate points and positions;
High levels of active and effective listening skills;
Awareness of ,and consideration for ,the various perspectives in any
situation ;and
Gathering relevant and critical information to address important issues
and reach agreements while maintaining mutual trust.
Effective: decision-making :This involves the ability to negotiate and
influence the organization and the project management team .Some
guidelines for decision making include:
Focus on goals to be served,
Follow a decision-making process,
Study the environmental factors,
Analyze available information,
Stimulate team creativity,
Manage risk,
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Develop personal qualities of the team members.

MANAGEMENT/LEADERSHIP STYLES
Autocratic ) dictatorial)
The PM solicits little or no information from team.
Makes decision solely.
Also referred to as Directing.
Directing
Managers tell people what tasks will be performed and when and how
they will be done.
Consultative Autocratic
Intensive information input is solicited from the team.
The PM still makes the decisions ,solely.
May also be referred to as Persuading.
Laissez faire
Manager does not interfere with subordinates.
Subordinates are largely unsupervised ,may lead to anarchy) confusion(
Democratic
Manager allows subordinates to discuss issues and reach decisions
although he will guide and advise.
Discussing
Two-way communication and discussion between manager and
subordinates.
Consensus Manager
Problem presented to the team for open discussion and information
gathering.
Team makes decision.
Also referred to as Participating.
Shareholder Manager
Little or no information exchange takes place within the group.
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The team has the ultimate authority for the final decision.
Also referred to as Delegating.
This style is considered to be poor management.
Coaching
Provides instruction to others
Facilitating
Coordinates inputs from several sources before taking a decision
Supportive
Task oriented
Team-based
Assertive
FORMS OF POWER
Project managers, especially those in matrix and functional organizations ,
are often tasked with responsibility for the project without much formal
authority in the organization.
Understanding the forms of power can help the project manager maximize
his ability to influence and manage the team:
Reward Power
Expert Power
Legitimate
Referent
Punishment
Best Forms of Power: PMI considers reward and expert the most effective
forms of power and punishment the least effective.
CONSTRUCTIVE TEAM ROLES
Initiators
An initiator is someone who actively initiates ideas and activities on a
project.
This role is considered positive because it is proactive and can be highly
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Productive.
Information seekers
Information seekers are people on the team who actively seek to gain
more knowledge and understanding related to the project.
This is a positive role because fostering an understanding among the
team is important ,and open communication should be valued.
Information givers
Someone who openly shares information with the team.
Although not all information may be shared (for instance Classified or
secret information must be kept confidential ,)the overarching principal
is to foster good communication and a good flow of information on the
project.
Encouragers
Encouragers maintain a positive and realistic attitude. On the project ,
they focus on what can be accomplished ,not on what is impossible.
This is a positive role because it contributes to team morale.
Clarifiers
Someone who works to make certain that everyone understands of the
project is the same.
This is a positive role because it ensures that everyone has a common
understanding of the project goals and details.
Harmonizers
In music, harmony is not the same as the melody, but it complements )
complete( and enhances the melody. Similarly, a harmonizer on the
project will enhance information in such a way that understanding is
increased.
This is a positive role because the overall understanding of the project
and the project context ,or the details surrounding it ,is enhanced.
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Summarizers
Summarizers take the details and restate them succinctly or relate them
back to the big picture.
This is a positive role because details on the project may become
overwhelming, but the summarizer can keep things simple enough for
everyone to understand the higher purpose of the tasks.
Gate Keepers
Someone who draws others in. Someone who says" ,We haven't heard
from the other end of the table today"
This is a very positive role because it encourages the entire team to
participate on the project.
The other usage comes from someone who judges whether the project
should continue at different stages (known as the stage-gate approach).
Makes decisions about whether the project is still achieving the business
need and if it is justified in continuing to a subsequent phase.
Both are considered constructive roles on the project.
DESTRUCTIVE TEAM ROLES
Aggressors
Someone who is openly hostile and opposed to the project.
This is a negative role because it serves no productive purpose on the
project.
Blockers
Someone who blocks access to information and tries to interrupt the flow
of communication.
This is a negative role because of the disruptive effect poor
communication can have on a project.
Withdrawers
Does not participate in discussion ,resolution ,or even the fleshing out of
ideas .Instead ,he is more likely to sit quietly or not participate at all.
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This is a negative role because it usually produces a team member that

does not buy in to the project and can have a negative effect on the
overall team morale.
Recognition ) benefits (Seekers
Looks at the project to see what is in it for him .He is more interested in
his own benefit rather than the project's success.
This is a negative role because of the damaging effect on team morale
and because a recognition seeker may ultimately jeopardize the project
if doing so somehow personally benefits him.
Topic Jumper
Disrupts )leave idle( effective communication by constantly changing
the subject and bringing up irrelevant( not convenient )facts.
This is a negative role, because it prevents issues from being fully
discussed and brought to closure.
Dominator
Someone who disrupts team participation and communication by
presenting opinions forcefully and without considering the merit of
others 'contributions .He will likely talk more than the rest of the group
and will bully his way through the project
This is a negative role because valid opinions are often quashed ,and the
project may take on a one-dimensional quality.
Devil's Advocate
Someone who will automatically take a contrary view to most statements
or suggestions that are made.
This may be a positive or negative role on the project ,but it is most often
associated with a negative role since it often disrupts and frustrates
communication, discourages people from participating, and stalls
progress.
.
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MCGREGOR'S THEORY X AND THEORY Y (1960)

McGregor's organizational theory states that there are two ways to
categorize and understand people in the workplace:
Theory X and Theory Y
Theory X
o Managers who ascribe to Theory X presume that people are only
interested in their own selfish goals.
o They are unmotivated, they dislike work, and they must be forced to do
productive work.
o Theory X managers believe that constant supervision is necessary to
achieve desired results on a project.
o Example: An assembly line organization may treat everyone as an "X
Person monitoring and measuring every move
Theory Y
Those who practice Theory Y assume that people are naturally
motivated to do good work.
"Y managers "believe that their team members need very little external
motivation and can be trusted to work toward the organization's or
project's goals.
Example :Whereas an organization that encourages telecommuting
might be more prone to treat employees as" Y People".
It is the manager ,not the organization that ascribes to Theory X or
Theory Y and the style of management is not necessarily determined
by the type of work being performed.
GOAL SETTING THEORY
Working toward a goal is a major source of job motivation.
Individuals have an internal desire to achieve goals.
Clear ,specific ,concise, and challenging goals motivate team members.
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Project participants must be allowed to participate in setting goals ,

formulating plans and implementation strategies in order to gain
participants 'acceptance and commitment to meeting project goals.
MASLOWS HIERARCHY OF NEEDS (1943)
Basic theory of human motivation, states that human needs form a
hierarchy, since the needs at the bottom must be satisfied before the upper
needs will be present.
As an example, people cannot reach their full potential if they do not have
sufficient food or safety.
Figure ( 9- 9):ABRAHAM MASLOWS S Hierarchy Of Needs
HERZBERG'S MOTIVATIONAL THEORY (BETWEEN 1959

AND1968)
Herzberg had two main areas for workplace success. The first was
hygiene ,which focuses mainly on areas associated with the workplace
factors ,such as a safe work environment ,steady pay ,and a stable job are
examples of hygiene.
Motivating agents were his second area of focus, which deals with the
non -financial characteristics of work. Examples can include the
opportunity to improve and do more ,education ,and responsibility.
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One basic assumption of Motivational Theory is that in most cases, money

does not produce motivation. Instead endeavors like improving the
workplace, showing appreciation toward the worker, and additional
responsibility typically motivate workers more than simply throwing
money at them.
HERZBERG'S THEORY OF MOTIVATORS AND HYGIENE
FACTORS
Herzberg's theory is based on the assumption that workers want and
expect to find meaning through their work.
Figure ( 9- 10): HERZBERG'S Tips

HALO THEORY
Halo Theory is the process (in project management) of assuming that
someone would make a good Project Manager because that person is
good in his or her technical field.
The theory could also be used to imply that if someone wasps not good
in his or her technical field ,that person wouldnt't be good at project
management.
This theory often becomes reality when someone is promoted to a Project
Manager from a technical or hands-on position and hasn't had the
opportunity to receive any project management training.
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9.5 HR Tips & Tricks

Human resources can be divided into administrative
and behavioral management topics. Most of the
answers to human resource questions should come
from your everyday knowledge and work experience.
Though you will see a lot of different topics described in this chapter, these
concepts do not amount to a lot of questions on the exam. To study, read
this chapter two or three times and simply make a list of the gaps in your
knowledge as you read. After a couple of passes through this chapter, you
will likely remember the information well enough for the high-level
questions on the exam.
1. You should read the process name (acquire project team) as (acquire final
project team.) Remember that on a properly managed project, team
members need to have input into the project, including what work needs
to be done, when, at what cost, what the risks may be, etc., no matter when
they get involved in the project. Great project managers will invite new
team members to review their part of the project for changes before they
start work. People perform better when they input, rather than simply
being told what to do.
The Inputs to The Acquire Project Team Process Include:
Human resource management plan:
Guidelines on how team members will be added, managed, and released;
roles and responsibilities; project organization charts; and the staffing
management plan
Enterprise environmental factors:
Including who is available, whether they are collocated or geographically
dispersed, whether they work well together, if want to work on the project,
how much they cost, and outsourcing policies
Organizational process assets:
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Including policies for using staff on projects and hiring procedures

Acquiring the project team involves the following:
Knowing which resources are reassigned to the project and confirming
their availability,
Negotiating for the best possible resources,
Hiring new employees,
Hiring resources through the contracting process from outside the
performing organization-outsourcing,
Understanding the possibilities and problems with using virtual teams-
teams made up of people who never or rarely meet,
Managing the risk of resources becoming unavailable,
2. There are two similar concepts in this chapter that can be confusing: team
performance assessment and project performance appraisals. Project
performance appraisals are a technique of the manage Project Team
process.
In this effort, the project manager collects information from team
member's supervisor and adjusts the project accordingly. The focus is on
the individual.
In contrast, team performance assessment, a technique of the develop
project team process, focuses on team performance, not the individual.
Team performance assessment is done by the project manager in order to
evaluate and improve the effectiveness of the team as a whole.
3. When you have questions on the exam relating to conflict management,
make sure you first think, "Who generally has authority over the situation
described in this question?"
Another good question to remember is, "What resolution of this problem
would best serve the customer's interests?"
The following are the main conflict resolution techniques to know for the
exam. Notice that some have more than one title; you should know both.
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Collaborating (Problem Solving) in this technique, the parties openly

discuss differences and try to incorporate multiple viewpoints in order to
lead to consensus. Collaboration leads to a win situation.
Compromising (Reconciling) This technique involves finding solutions
that bring some degree of satisfaction to both parties. This is losing
situation, since no party gets everything. Did you know that compromise
is not the best choice, but rather second to collaborating?
Withdrawal (Avoidance) in this technique, the parties retreat or postpone
a decision on a problem. Dealing with problems is a PMI-ism; therefore,
withdrawal is not usually the BEST choice for resolving conflict, though
there may be situations where it is necessary.
Smoothing (Accommodating) This technique emphasizes agreement
rather than differences of opinion.
Forcing (Directing) This technique involves pushing one viewpoint at the
expense of another. It is a win-lose situation.
4. Remember to look for collaborating or problem solving choices as
generally the best answers, and forcing as the worst, but realize the answer
depends on the situation described.
There could be situations where withdrawal is the best option.
5. When questions on the exam require you to solve problems, ask yourself,
"What is the real problem behind the situation presented?" Here is an
example:
During project executing, a project manager discovers that the seller did
not supply the report required by the contract for the last four weeks. What
should he do?
What would you do? Would you call the seller and investigate why it was
late? If so, you would get the answer wrong on the exam. In a contract
situation, the seller has breached the contract by not doing something
required in the contract. The required legal action for a breach is to send
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written notification of the breach, not call the seller. You need to
understand the real problem.
6. Other Important Terms, Topics, & Theories
One of the things that drives people crazy about the exam is that they see
terms they do not know. You should realize the exam does have made-up
terms and processes as answer choices.
The following discussion of topics related to human resource management
should help you get more familiar with some real terms that have been on
the exam that you may not have run across previously.
But remember, if you are well trained in project management and you see
a term on the exam that you do not recognize, chances are it is not the right
answer!
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10.PROJECT COMMUNICATIONS
MANAGEMENT
Why is Communications Management Important?
90% of a project managers time is involved in communicating and 50%
of that time be spent in communicating with the project team by PM.
Importance of Communication Management
Communicating is extremely important for the success of a project ,and
the most important effect in a project manager.
It is important to note that although the project manager should pay a lot
of stress to managing communication ,he cannot control all the
communication, this is because there are just too many communication
channels.
For N people, the number of communication channels = )N 2 -N)/2.
Table (10- 1):Project Communication Management Overview

Monitoring
Planning Executing
&Controlling
10.1
10.2 10.3
Plan
Manage Control
Communications
Communications
Communications
Management
PROJECT COMMUNICATIONS MANAGEMENT

Communications management requires accurate reports on:
Project status
Performance
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Change
Earned value
PM pays close attention to controlling the information to ensure that the
communication management plan is working as intended.
PMIS PHILOSOPHY OF COMMUNICATIONS MANAGEMENT
There is an old joke in project management circles about" mushroom
project management", in which you manage projects the same way you
grow mushrooms by keeping everyone buried in manure ,leaving them in
the dark, and checking back periodically to see what has popped up.
PMI's philosophy focuses on keeping the stakeholders properly informed
throughout the project.
Communication is always proactive and thorough.
It is essential that the project manager distribute accurate project
information in a timely manner and to the right audience.
PROJECT MANAGER'S ROLE IN COMMUNICATIONS
The project manager's most important skill set is that of communication.
One individual cannot control everything communicated on a project, nor
should he try.
Project managers who ask that every single e-mail or conversation be
filtered through them first are generally demonstrating that they are not
in control on the project.
EFFECTIVE COMMUNICATION
Provide complete ,factual information with supportive data and
illustration
Make an effort to insure the listener understanding
Speak at a reasonable pace
Use common language ,simple words and phrases
Use inflection ,expressions and gestures
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Be specific and to the point

Avoid an approach that may insult the listener.
Work at understanding the message
Look to the speaker in the eye
Repeat the key phrase at the end of the conversation
Do not interrupt
Observe expression ,movements ,and gestures
Resist distractions
Anticipate what is being communicated
Be open minded
10.1 Plan Communication
Planning the project communications is important to the ultimate success
of any project.
Inputs
Tools &Techniques
1. Project outputs
management plan 1. Communication
2. Stakeholder requirements
register analysis
3. Enterprise 2. Communication
environmental technology 1. Communications
factor 3. Communication management plan
4. Organizational models
4. Communication
methods
5. Meetings
Figure(10- 1):Plan Project Management Process
Weak communications planning may result a problem such as delay in

message delivery, communication of information to the wrong audience ,
or insufficient communication to the stakeholders and misunderstanding
or miss-interpretation of the message communicated
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Communication planning is performed very early .This allows

appropriate resources ,such as time and budget ,to be allocated to
communication activities.
Effective communication means that the information is provided in the
right format ,at the right time ,to the right audience ,and with the right
impact or result.
Efficient communication means providing only the information that is
needed.
While all projects share the need to communicate project information, the
information needs and methods of distribution may vary widely.
Important considerations that may need to be taken into account include ,
but are not limited to:
o Who needs what information ,and who is authorized to access that
information;
o When they will need the information;
o Where the information should be stored;
o What format the information should be stored in;
o How the information can be recovered ;and
o Whether time zone ,language barriers ,and cross-cultural considerations
need to be taken into account.
The results of the Plan Communications Management process should be
reviewed regularly throughout the project and revised as needed to ensure
continued applicability.
Determining the information and communications needs of the project
stakeholders :who needs what information ,when will they need it ,and
how will it be given to them.
Identifying informational needs of all stakeholders and determining a
suitable means of meeting those needs.
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Mostly done as part of the earliest project phases

Linked with organizational planning ,because projects organizational
structure will have a major impact on the projects communication
requirements.
OUTPUTS
1. Communication Management Plan
Document that provides:
o Collection and filing structure that details what methods will be used to
gather and store various types of information.
o Distribution structure that details to whom information will flow ,and
what methods will be used to distribute various types of information.
o Description of the information to be distributed ,including format ,
content ,level of detail ,and agreements/definitions to be used.
o Methods of accessing information between scheduled communications.
o Method of updating and filtering the communications management plan
as project progresses and develops.
Communication management plan is formal or informal, highly detailed
or broadly framed based on needs of the project.
Subsidiary of project plan.
TOOLS &TECHNIQUES
1. Communications Requirements Analysis
The goal of this technique is to identify which stakeholders should receive
project communications, what communications they should receive, how
they should receive these communications, and how often they should
receive them.
Organizes responsibilities between project and team members
/stakeholder )s.(
People/departments involved in the project
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Logistics of people and locations.

External information needs ,for example ,communicating with the media.
Communication Channels
o Adding a single person on a project can have a significant impact on the
number of paths or channels of communication that exist between
people.
o Channels = n (n-1)/2
o (Where n = the number of people on the project)
Communication Channels Example
Five people produce ten communication channels ,as is confirmed by
the formulas:
N * ( n-1)*0.5 ---- 5*(5-1)/2 = 10
Official Channels of Communication
If there are a large number of channels of communication on the project,
the project manager should work to define which communication
channels are official.
For example, it may be necessary to determine who can officially
Communicate with the customer or with key subcontractors.
2. Communications Technology
Technology is a tool, and the right tool should be selected for a given
communications need. While formal face-to-face meetings may be needed
for some projects ,a project web site may be more appropriate for others.
The technology should be tailored to the need.
Factors that can affect the choice of communication technology include:
Urgency of the need for information,
Availability of technology,
Ease of Use,
Project environment,
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Sensitivity and privacy of the information.

3. Communications Models
The communications model is a formal way of understanding how
messages are sent and received. This model defines the responsibilities
between the sender and the receiver.
Key Definitions
Communicator )sender:( source of message
Encode :communicator translation of message prior to sending
Medium :the method ,channel used to transfer the message

Receiver )target audience) :recipient of a given message
Decode :the receivers translation of a given message prior to
internalizing its meaning
Feedback :the reverse role of receiver and communicator
Noise :anything that interferes with transmission of the message
The Sender's Responsibilities are to:
Encode the message clearly,
Select a communication method,
Send the message,
Confirm that the message was understood by the receiver.
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The Receiver's Responsibilities are to:

Decode the message
Confirm that the message was understood,
Messages can be conveyed in verbal and nonverbal ways,
Below are some terms related to different ways of communicating.
4. Communications Methods
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 ,video conferencing ,etc.
Push communication. Sent to specific recipients who need to know the
information. This ensures that the information is distributed but does not
certify that it actually reached or was understood by the intended
audience .Push communication includes letters ,memos ,reports ,emails ,
faxes ,voice mails ,press releases etc.
Pull communication .Used for very large volumes of information ,or for
very large audiences, that requires the recipients to access the
communication content at their own freehand. These methods include
internet sites ,e -learning ,and knowledge repositories ,etc.
COMMUNICATIONS SKILLS
General communications skills are not the same as project
communications management.
General communications skills are concerned with getting your message
across to your audience as intended.
Communicating should be aware of:
Sender receiver models
Choice of media formal vs .informal
Writing style active ,passive
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Presentation techniques body language ,

Meeting management techniques
Dimensions
Written ,oral ,listening ,speaking
Internal within the project
External customer ,media ,public
Formal reports ,briefings
Informal memos ,ad hoc conversations (assigned)
Vertical up/down the organization
Horizontal with peers
Active Listening
Active listening requires that the receiver takes active steps to ensure
that the sender was understood .It is similar to effective listening.
Effective listening
Effective listening requires the listener's full thought and attention
To be effective as a listener means to monitor non-verbal and physical
communication and to provide feedback indicating whether the message
has been clearly understood.
Non-Verbal
Non-verbal communication takes place through body language such as
facial expressions ,posture ,hand motions ,etc.
Most communication between the sender and receiver is non-verbal .
(About 55%of total communication)
Par lingual
Para lingual communication is vocal but not verbal - for example ,tone
of voice ,volume ,or pitch.
A high-pitched squeal does not employ words, but it certainly
communicates!
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Feedback
Feedback refers to the verbal and nonverbal cues (message) a speaker
must monitor to see whether the listener fully comprehends )understand
(the message.
Nodding )cues) and smiling might be considered positive feedback and
indicate that the message is understood and received ,whereas negative
nodding and a blank stare might indicate that the message needs to be
re-coded for better communication.
Asking questions or repeating the speaker's words are also ways to give
feedback.
Communication Blockers
A communication blocker is anything that interferes with the sender
encoding the message or the receiver decoding it. It can include anything
that disrupts the communication channels ,such as:
Noise
Distance
Improper encoding
misreading the message
Negative Feedback That was a bad idea
Hostility
Language
Culture
TYPES OF PROJECT COMMUNICATION

Interpersonal communication.
Communication with public and community.
Formal communication.
Informal communication.
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INTERPERSONAL COMMUNICATION
To ensure messages are received and understood, two-way
communication is necessary.
Interpersonal communication is the process of sharing information with
others.
Three basic elements of interpersonal communication:
The Sender (or encoder) of the message.
The Signal or the message.
The Receiver (or decoder) of the message.
PROCESS OF INTERPERSONAL COMMUNICATION
Sender determines what information to share and with whom and encodes
the message.
Sender transmits the message as a signal to the receiver.
The receiver receives the message.
The receiver decodes the message to determine its meaning and then
responds accordingly.
Communication is successful if the decoded message is the same as the
sender intended.
RESPONSES TO FEEDBACK
Silence: Listening quietly ,observing ,and trying to understand the full
message in the feedback.
Acknowledgment: Giving verbal indicators of understanding and
validation for the feedback.
Inviting non-verbal: (as opposed to the are you crazy? facial
expressions) .Using expressions that invite additional information and
feedback.
Paraphrasing: )Re-wording ( Restating the message as you understand it
to check the accuracy of communication.
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Active listing: Expressing understanding of the importance of the

message ,as well as your feelings about it.
MACRO-BARRIERS TO SUCCESSFUL COMMUNICATION
Information Overload:
Keep messages simple and direct.
Provide sufficient information but not too much.
Lack of subject knowledge:
Must have sufficient knowledge to send message.
Must know level of understanding of receiver.
Cultural differences:
Meanings and interpretations (explanations) may vary among
different cultures.
Encourage team members to learn each other's cultures.
Table (10- 2):Form of Communications
Communication Characteristic Examples
Project Charter, Scope Statement,

Written Project Plan, WBS, project status
Accurate
Formal Complex issues
Transmitted through
Contract related communication
the medium of
Email ,Notes, Memos, Letters
correspondence
Written Informal Regular communication with
team members
Presentations ,speeches,
Oral Formal High Degree of
Negotiations ,conflict resolution
Flexibility
Use the medium of Conversation with team members
Oral Informal personal contact, Project Meetings
group meetings or Break-room or war-room
telephone conversations
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Facial expressions ,hand

Non-verbal About %55 of total
movements ,tone of voice while
communication communication
speaking etc.
Organizational Climate (Environment):

Minimize the differences associated with status and ego (self) within the
organization.
Encourage open and trusting atmosphere.
Number of links:
Reduce the number of transmission links.
The more links, the more opportunity for distortion.
Be aware of entropy .23-27% of message is lost in upward
communication.
10.2 Manage Communication
Manage Communications is the process of creating ,collecting ,
distributing ,storing ,retrieving(restoring) ,and the ultimate dis-position 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.
This process goes beyond the distribution of relevant information and seek
to ensure that the information being communicated to project stakeholders
has been appropriately generated, as well as received and understood.
It also provides opportunities for stakeholders to make requests for further
information, clarification, and discussion.
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Inputs
Tools &Techniques
1. Communications
management plan 1. Communication outputs
2. Work performance technology
reports 2. Communication 1. Project
3. Enterprise models communications
environmental 3. Communication 2. Project management
factors methods plan updates
4. Organizational 4. Information 3. Project documents
process assets management updates
systems 4. Organizational
5. Performance process
reporting assets updates
Figure(10- 2):Project Manage Communication Process
Techniques and considerations for effective communications

management include ,but are not limited to ,the following
Sender-Receiver Models :Incorporating (collect) feedback loops to
provide opportunities for interaction /participation and remove
barriers to communication.
Choice of Media :when to communicate in writing versus orally ,
when to prepare an informal memo versus a formal report ,and when
to communicate face to face versus by e-mail.
Writing Style :Appropriate use of active versus passive voice ,
sentence structure ,and word choice. (Harry ate six shrimp at dinner.
(active) At dinner, Harry ate six shrimp. (passive).
Meeting Management Techniques :Preparing an agenda and
dealing with conflicts.
Presentation Techniques :Awareness of the impact of body
language and design of visual aids.
Facilitation Techniques :Building consensus and overcoming
obstacles.
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Listening Techniques :Listening actively )acknowledging ,

clarifying ,and confirming understanding) and removal of barriers that
adversely affect comprehension.
OUTPUTS
1. Project Communications
The Manage Communications process involves the activities that are
required for information to be created ,distributed ,received ,
acknowledged ,and understood .Project communications may include but
are not limited to
o Performance reports ,Deliverables status ,Schedule progress ,and Cost
incurred.
o Project communications can vary significantly and are influenced by
factors such as,
The urgency and impact of the message,
Its method of delivery ,and
Level of confidentiality (privacy).
TOOLS & TECHNIQUES
1. Information Management Systems
Project information can be distributed using a variety of tools, including:
o Hard-copy document management :letters ,memos ,reports ,and press
releases.
o Electronic communications management: e-mail, fax, voice mail ,
telephone ,video and web conferencing ,websites ,and web publishing.
o Electronic project management tools :web interfaces to scheduling and
project management software, meeting and virtual office support
software ,portals ,and collaborative work management tools.
INPUTS
1. Performance Reporting
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Performance reports organize and summarize the information gathered ,

and present the results of any analysis as compared to the performance
measurement baseline.
Reports should provide the status and progress information, at the level of
detail required by various stakeholders, as documented in the
communications management plan.
Common formats for performance reports include bar charts, S -Curves ,
histograms ,and tables
Performance reports are issued periodically and their format may range
from a simple status report to more elaborate detailed reports.
A simple status report might show only performance information such as
percent complete, or status dashboards for each area (e.g,. scope, schedule,
cost, and quality .)More elaborate reports may include:
Analysis of past performance,
Current status of risks and issues
Work completed during the reporting period,
Work to be completed during the next reporting period,
Summary of changes approved in the period,
Results of variance analysis,
Forecasted project completion (including time and cost) ,and
Other relevant information to be reviewed and discussed.
10.3 Control Communication
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.
It ensures an optimal information flow among all communication
participants ,at any moment in time.
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The process can trigger an iteration of the Plan Communications

Management and/or Manage Communications processes.
This iteration illustrates the continuous nature of the Project
Communications Management processes.
Specific communication elements ,such as issues or key performance
indicators )e.g ,.actual vs .planned schedule ,cost ,and quality ,( may
trigger an immediate revision ,while others may not.
The impact should be carefully evaluated and controlled to ensure that the
right message is delivered to the right audience at the right time
Inputs
Tools &Techniques
1. Project
2. Project
communications 1. Information 1. Work performance
3. Issue log management information
4. Work performance systems 2. Change requests
data 2. Expert judgment 3. Project management
5. Organizational 3. Meetings plan updates
updates
5. Organizational
process
assets updates
Figure(10- 3):Project Control Communication Process
OUTPUTS
Work performance information organizes and summarizes the
performance data gathered )Described in 4.4 PMBOK Guide
Monitor and Control Project Work).
This performance data typically provides status and progress information
on the project at the level of detail required by the various stakeholders
This information is then communicated to the appropriate stakeholders.
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TOOLS &TECHNIQUES
An information management system provides a set of standard tools for
the project manager to capture ,store ,and distribute information to
stakeholders about the projects costs ,schedule progress ,and
performance.
Some software packages allow the project manager to consolidate reports
from several systems and facilitate report distribution to the project
stakeholders.
Examples of distribution formats may include table reporting ,spreadsheet
analysis ,and presentations.
Graphic capabilities can be used to create visual representations of project
2. Meetings
The Control Communications process requires discussion and dialogue
with the project team to determine the most appropriate way to update
and communicate project performance, and to respond to requests from
stakeholders for information.
These discussions and dialogues are commonly facilitated through
meetings, which may be conducted face to face or online and in different
locations, such as the project site or the clients site.
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10.4 Communication Tips & Tricks
Communications occur internally and externally to the

core project team, vertically (up and down the levels
of the organization), and horizontally (among peers).
Make sure your planning includes communicating in
all of the following directions.
Figure(10- 4):Flow of Communication in The Project
1. Effective Communication
The sender should encode a message carefully, determine which
communication method to use to send it, and confirm that the message is
understood. When encoding the message, the sender needs to be aware of
the following communication factors:
Nonverbal: A significant portion of in-person communication is
nonverbal (i.e., based on physical mannerisms). This is also known as
body language.
Para lingual: Pitch and tone of voice also help to convey a spoken
message.
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Words: The words and phrasing the sender chooses are an essential
component to the message. But their can change depending on the
accompanying nonverbal and Para lingual factors-or even the absence of
those factors in written communication.
To confirm the message is understood, it's helpful for the sender to ask for
feedback with questions like "Could you rephrase what i have said in your
own words?" But it's ultimately up to the receiver to make sure she or he
has received and understood the entire message the previous paragraph
applies to individual interactions as well as to planning communication.
It's possible to plan in not just the types of communications to be used, but
also ways for the sender to confirm the receiver has interpreted the
message as intended.
2. Effective Listening
So what should the receiver do to carefully decode the message and
confirm it has been understood? The receiver should watch the speaker to
pick up physical gestures and facial expressions; focus on the content of
the message without judgment, distraction, or interruption; think about
what to say before responding; and use active listening. Active listening
means the receiver confirms he or she is listening, expresses agreement or
disagreement, and asks for clarification when necessary.
3. You may be seeing many new terms. you can figure out most of these
terms without memorization as long as understand the concept that
communications must be planned and thought through to include all
stakeholders in many countries.
For example, can you guess what a push do not waste time memorizing
them? Just read this chapter over once or twice, and you should understand
the concepts for the exam.
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4. The primary output of the Plan Communications Management Process is

a communications management plan.
A communications management plan documents how you will manage
and control communications. Many people do not realize the extent of the
information that must be distributed. The following is just one portion of
what you might find in a communications management plan:
Table (10- 3):Portion Of Communication Management Plan
Best Method
Responsibi When &
What Needs to be Between for
Why lity for How
Communicated Whom Communicatin
Sending Often
g
Because communications are so complex, a communications management

plan should be in writing for most projects. It must address the needs of all
the stakeholders, and should account for any language and cultural
differences on the project. The communications management plan becomes
part of the project management plan.
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259
11.PROJECT RISK MANAGEMENT

What is a Risk?
Risk is an uncertain event or condition that, if it occurs, has an effect on
at least one project objective. (Objectives can include scope, schedule,
cost, and quality.)
A risk may have one or more causes and, if it occurs, it may have one or
more impacts.
A cause may be a requirement, assumption, constraint, or condition that
creates the possibility of negative or positive outcomes.
Table(11- 1):Project Risk Management Overview.
Monitoring
Planning
& Controlling
11.1
Plan Risk Management
11.2
Identify Risks
11.3 11.6
Perform Qualitative Risk Analysis Control Risks
11.4
Perform Quantitative Risk Analysis
11.5
Plan Risk Responses
RISK COMPONENTS
Risk Events or consequences that have the probability of occurring during
a project and that are measured by their impacts on the project
components
o Risk event
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o Risk event probability

o Risk outcome or consequence (Amount at stake)
o Risk event status) Probability x amount at stake(
RISK & PROJECT LIFE CYCLE
Risk varies throughout the life cycle
o Risk is high in the concept and development phases ,decreasing as
work is accomplished
RISK AND UNCERTAINTY
Types (regarding to our risk knowledge):
o Known (almost Total certainty)
o Known Unknown (Degree of uncertainty)
o Unknown (Total uncertainty)
Types (regarding to win or lose impacts if occur):
o Business Risk (may give opportunity for win or negative risk)
o Pure Risk (only cause negative impacts)
RISK VS. PROBLEM
A risk statement could be: We may have insufficient resources
to conduct the beta tests which would delay the project by one week.
(cant be 100% certainty).
A problem statement would be: We have insufficient resources
to conduct the beta tests which will delay the project by one week.
(100% certainty).
PROJECT RISK MANAGEMENT
Look for risks caused by things like poor project management ,
dependency on uncontrollable external resources ,concurrent multiple
projects ,etc.
Accept risks if they're in balance with a possible reward.
Communicate about risk information openly & honestly.
261
Provide risk responses in line with the organization's perceived balance

between risk-taking& risk-avoidance.
To be successful ,an organization should be committed to addressing the
management of risk proactively & continually throughout the project.
RISK PROCESS DEFINITIONS
Plan Risk Management
Process of deciding how to approach and conduct (plan & execute) the
risk management activities for a project.
Identify Risks
Determine which threats/opportunities might affect the project &
document their details
Perform Qualitative Risk Analysis
Assess each risk's chance of occurring & probable impact to get a
prioritized list of risks requiring more analysis or action
Perform Quantitative Risk Analysis
Numerically analyze identified risks' effect on overall project objectives
Plan Risk Responses
Analyze risks and make a plan of actions & options to enhance
opportunities & reduce threats to project objectives
Control Risks
Track identified & residual risks, identify new risks, execute risk response
plans & evaluate their effectiveness.
11.1 Plan Risk Management
How do you Plan for Risk?
Establish an agreed-upon approach for conducting risk management
activities& evaluating risk.
Ensure that the level, type ,and visibility of risk management are suitable
with both risk and importance of the project to the organization.
Provide sufficient resources and time for risk management activities.
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Planning Risk management should be completed early during project

planning ,since it is critical to successfully performing the other processes.
Inputs
1. Project Tools &Techniques
management plan
2. Project charter outputs
3. Stakeholder
register
1. Analytical
4. Enterprise
techniques
environmental
factors
2. Expert judgment 1. Risk management
3. Meetings plan
5. Organizational
process assets
Figure(11- 1):Plan Risk Management Process

OUTPUT
1. Risk Management Plan
The risk management plan describes how risk management will be
structured and performed on the project .It becomes a subset of the project
management plan.
The risk management plan includes the following:
o Methodology. Defines the approaches, tools, and data sources that may
be used to perform risk management on the project.
o Roles and Responsibilities. Defines the lead, support, and risk
management team members for each type of activity in the risk
management plan, and clarifies their responsibilities.
o Budgeting .Assigns resources ,estimates funds needed for risk
management for inclusion in the cost performance baseline, and
establishes protocols for application of contingency reserve.
o Timing. Defines when and how often the risk management process will
be performed throughout the project life cycle ,establishes protocols for
application of schedule contingency reserves, and establishes risk
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management activities to be included in the project schedule )Section

6.5).
Risk categories. Provides a structure that ensures a comprehensive process
of systematically identifying risks to a consistent level of detail and
contributes to the effectiveness and quality of the Identify Risks process.
An organization can use a previously prepared categorization framework
which might take the form of a
Simple list of categories or might be structured into a Risk Breakdown
Structure(RBS).
The RBS is a hierarchically organized depiction of the identified project
risks arranged by risk category and subcategory that identifies the various
areas and causes of potential risks.
INPUTS
1. Organization Project Assets
The organizational process assets that can influence the Plan Risk
Management process include ,but are not limited to:
o Risk categories,
o Risk statement formats,
o Standard templates,
o Roles and responsibilities,
o Authority levels for decision-making,
o Lessons learned ,and
o Stakeholder registers, which are also critical assets to be reviewed as
components of establishing effective risk management plans.
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Figure(11- 2):Risk Breakdown Structure(RBS)
TOOLS & TECHNIQUES

Analytical techniques are used to understand and define the overall risk
management context of the project.
Risk management context is a combination of stakeholder risk attitudes
and the strategic risk form of a given project based on the overall project
context.
For example ,a stakeholder risk profile analysis may be performed to
grade and qualify the project stakeholder risk degree and tolerance.
Other techniques ,such as the use of strategic risk scoring sheets ,are used
to provide a high-level assessment of the risk exposure of the
project based on the overall project context.
Depending on these assessments ,the project team can allocate
appropriate resources and focus on the risk management activities.
2. Meetings
Project teams hold planning meetings to develop the Risk management
plan. Attendees at these meetings may include the project manager ,
selected project team members and stakeholders ,anyone in the
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organization with responsibility to manage the risk planning and execution

activities, and others, as needed.
High-level plans for conducting the risk management activities are defined
in these meetings.
Risk management cost elements and schedule activities will be developed
for inclusion in the project budget and schedule ,respectively .Risk
contingency reserve application approaches may be established or
reviewed. Risk management responsibilities will be assigned.
General organizational templates for risk categories and definitions of
terms such as levels of risk ,probability by type of risk ,impact by type of
objectives ,and the probability and impact matrix will be tailored to the to
the specific project .If templates for other steps in the process do not exist,
they may be generated in these meetings.
The outputs of these activities will be summarized in the risk management
plan.
11.2 Identify Risks
What happens in IDENTIFY RISKS?
Identify Risks determines which risks might affect the project &
documents their characteristics.
Participants in identify risk activities can include the following ,where
appropriate :project manager ,project team members ,risk management
team (if assigned) ,risk experts from outside ,customers ,end-users ,
stakeholders ,etc.
All project personnel should be encouraged to identify risks.
Identify risks - is an iterative process because:
o Risk events may happen ,which may cause new risks
o Status of identified risks may change
o New risks may occur.
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Inputs
1. Risk management Tools &Techniques
plan
2. Cost management outputs
plan 1. Documentation
reviews
3. Schedule
management plan 2. Information
gathering
4. Quality
techniques 1. Risk register
management plan
3. Checklist analysis
5. Human resource
management plan 4. Assumptions
analysis
6. Scope baseline
5. Diagramming
7. Activity cost
techniques
estimates
6. SWOT analysis
8. Activity duration
estimates 7. Expert judgment
9. Stakeholder
register
11. Procurement
documents
12. Enterprise
environmental
factors
13. Organizational
process
Figure(11- 3):Identify Risk Management Process
RISK AND PROJECT LIFE CYCLE

When the greatest degree of uncertainty is will happen in a project?
o The Concept Phase ,as decisions made by Project Sponsors have greatest
influence on ultimate scope ,quality ,time and cost.
When is the most effective time for achieving the greatest impact of
project results?
o Early in the Planning / Development Phase.
THE THREE ELEMENTS OF RISK
The expectation that something could happen
The likelihood or probability of something happening
The consequences if it happens
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CHALLENGES IN IDENTIFYING RISKS

Are we able to identify all risks?
o Unknown or Unforeseeable risks
o Future risks
o Emergent risks
o Perceptually concealed )someone hide something)
DIFFERENTATION BETWEEN CAUSE AND EFFECT
Definite fact or sets of circumstances about the project or environment
o Uncertainty that could affect project objectives if it occurs CAUSE
o Contingent effect ,either negative or positive on project

RISK
objective(s).
EFFECT
DESCRIBING A RISK
As a result of) definite cause( ,)uncertain event( may occur ,which would
lead to (effect on objective or objectives).
o Causes will use present tense phrases such as is ,do ,has ,has not, are,
o Risks are described with words like may ,might ,could ,possibly
o Effect uses conditional future tense will ,would ,could...
OUTPUTS
Risk RegisterThe preparation of the risk register begins in the Identify
Risks process with the following information ,and then becomes available
to other project management and Project Risk Management processes.
List of identified risks. The identified risks are described in as much detail
as is reasonable. It may contain
o A unique identifier for each risk;
o A description of each risk and how it will affect the project;
An assessment of the likelihood it will occur and the possible
seriousness/impact if it does occur (low, medium, high); a grading of each
risk according to a risk assessment table who is responsible for managing
the risk; an outline of proposed mitigation actions (preventative and
268
contingency); and in larger projects, costing is for each mitigation

strategy.
List of potential responses. Potential responses to a risk may sometimes
be identified during the Identify Risks process. These responses, if
identified in this process, may be useful as inputs to the Plan Risk
Responses process )Section 11.5.( Now not later )response)
Table(11- 2):Template for Risk Register
Prepared by:
Project:
Date:
Risk
Description Probability Impact Contingency Risk
Type of Risk Reduction
of Risk Plans Owner
H M L perf. cost time Strategy
TOOLS & TECHNIQUES

1. Documentation Reviews
A structured review may be performed of project documentation,
including plans, assumptions, previous project files ,contracts and other
information.
The quality of the plans ,as well as consistency between those plans and
the project requirements and assumptions ,can be indicators of risk in the
project.
2. Checklist analysis
Risk identification checklists can be developed based on historical
information and knowledge that has been accumulated from previous
similar projects and from other sources of information.
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The lowest level of the RBS can also be used as a risk checklist .While a
checklist can be quick and simple, it is impossible to build an exhaustive
one.
The team should make sure to explore items that do not appear on the
checklist.
The checklist should be reviewed during project closure to incorporate
new lessons learned and improve it for use on future projects.
3. Assumption Analysis
Every project and every identified project risk is conceived and developed
based on a set of considerations ,scenarios ,or assumptions.
Assumptions analysis explores the validity of assumptions as they apply
to the project.
It identifies risks to the project from inaccuracy, instability ,inconsistency ,
or incompleteness of assumptions.
4. Diagramming Techniques
Cause-and-effect diagrams )Section .(8.3 These are also known as
Ishikawa or fishbone diagrams ,and are useful for identifying causes of
risks.
System or process flow charts .These show how various elements of a
system interrelate ,and the mechanism of causation (Section.(8.3
Influence diagrams. These are graphical representations of situations
showing causal influences ,time ordering of events ,and other
relationships among variables and outcomes.
270
Figure(11- 4):Influence Diagram

5. SWOT
SWOT (Strengths, Weaknesses ,opportunities ,Threats Analysis) increase
the breadth of considered risks.
SWOT analysis can give another perspective on risk that will often help
identify most significant project risks factors.
Figure(11- 5):SWOT Analysis
11.3 Perform Qualitative Risk Analysis

How do you PERFORM QUALITATIVE RISK analysis?
Prioritize identified risks for further action ,such as Quantitative Risk
Analysis or Risk Response Planning.
Organizations can improve the projects performance effectively by
focusing on high-priority risks.
Assess the priority of identified risks using their probability of occurring ,
the corresponding impact on project objectives if the risks do occur.
271
Also use factors such as time frame & risk tolerance of the project
constraints of cost ,schedule ,scope & quality.
Inputs
plan
2. Scope baseline outputs
3. Risk register 1. Risk probability and
impact assessment
4. Enterprise
environmental 2. Probability and
Factors impact matrix
5. Organizational 3. Risk data quality
assessment
4. Risk categorization
5. Risk urgency
assessment
6. Expert judgment
Figure(11- 6):Perform Qualitative Risk Analysis Process
TOOLS & TECHNIQUES

1. Risk Probability and Impact Assessment
Risk probability assessment investigates the likelihood that each specific
risk will occur.
Risk impact assessment investigates the potential effect on a project
objective such as schedule, cost, quality, or performance ,including both
negative effects for threats and positive effects for opportunities.
IMPACT OF A RISK
The impact of a risk is a numerical rating of the effect that the risk would
have on the project, should it occur) .Impact is sometimes known as
consequence(
Typically, a five-level scale is used to measure impact.
272
Figure(11- 7):Levels of Measuring Impact of Risk
PROBABILITY SCALES
The probability of an event is defined for risk management purposes ,as
the probability of that event occurring in the absence of any actions to
forestall it
For consistency with other risk assessment terms, a 5-1 scale for
probability is used.
Figure(11- 8):Levels of Measure Probability Scale
RISK PROBABILITY AND IMPACT

Risk probability is the likelihood that a risk will occur.
Risk impact (or consequence) is the effect on project objectives if the risk
event occurs.
273
PROBABILITY / IMPACT RISK RATING MATRIX

Matrix that assigns risk ratings (or score) to risks or conditions based on
combining probability and impact scales.
P-I matrix can be based on ordinal or cardinal scales
Risk score helps put the risk into a category that will guide risk response
actions.
P-I MATRIX APPROACH
Organization determines which combinations of risk probability and
impact result in risks being classified as high ,moderate ,or low.
Each risk gets a risk score.
Risks with high probability and high impact will require further analysis
including quantification and aggressive risk management.
Risk scores are then added up to calculate risk exposure for the project.
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Figure(11- 9):Probability and Impact Matrix

Risk Score
The higher the Risk score the more serious the risk
Risk Score = Probability X Impact
Risk Data Quality Assessment
A qualitative risk analysis requires accurate and unbiased data if it is to
be credible.
Analysis of the quality of risk data is a technique to evaluate the degree
to which the data about risks is useful for risk management.
It involves examining the degree to which the risk is understood and the
accuracy ,quality ,reliability ,and integrity of the data regarding the risk.
If data quality is unacceptable ,it may be necessary to gather higher -
quality data.
Risk Categorization
Risks to the project can be categorized by sources of risk (e.g ,.using the
RBS), the area of the project affected (e.g,. using the WBS), or other
useful category )e.g ,.project phase( to determine areas of the project most
exposed to the effects of uncertainty.
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Grouping risks by common root causes can lead to developing effective

risk responses.
THE USES OF RBS
The RBS can be used in these ways:
Risk Identification Aid :Can be used as a prompt list to identify risks
Risk Assessment :Can be used to categorize risks by their source
Comparison of Projects
Risk Reporting :Roll-up of risks
Lessons Learned.
Figure(11- 10):RBS HIERARCHY
Figure(11- 11):Risk Breakdown Structure( RBS)
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Risk Urgency Assessment

Risks requiring near-term responses may be considered more urgent to
address.
Indicators of priority can include time to affect a risk response ,warnings
and warning signs ,and the risk rating.
In some qualitative analyses the assessment of risk urgency can be
combined with the risk ranking determined from the probability and
impact matrix to give a final risk severity rating.
11.4 Perform Quantitative Risk Analysis
How do you Perform Quantitative Risk Analysis?
Analyze priority risks (identified in Qualitative Risk Analysis)
Analyzes the effect of those risk events and assigns a numerical
(quantitative) rating to those risks.
It also presents a quantitative approach to making decisions in the
presence of uncertainty.
The process uses techniques such as Monte Carlo simulation & decision
tree analysis to:
o Quantify possible outcomes for the project and their probabilities
o Assess probability of achieving specific project objectives
o Identify risks which requiring the most attention
o Identify cost ,schedule & scope targets in the light of risk
o Make best decisions when conditions or outcomes are uncertain
Experienced risk managers sometime perform it directly after Identify
Risk.
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Inputs
plan
2. Cost management outputs
plan
1. Data gathering and
3. Schedule Representation
management plan techniques
4. Risk register 2. Quantitative risk
5. Enterprise analysis 1. Project documents
environmental and modeling updates
factors techniques
6. Organizational 3. Expert judgment
process assets
Figure(11- 12):Perform Quantitative Risk Analysis Process
TOOLS & TECHNIQUES

1. Quantitative Risk Analysis and Modeling Techniques
Sensitivity analysis: it helps to determine which risks have the potential
impact on the project.
It examines the extent to which the uncertainty of each project element
affects the objective being examined when all other uncertain elements are
held at their baseline values.
One typical display of sensitivity analysis is the tornado diagram, which
is useful for comparing relative importance and impact of variables that
have a high degree of uncertainty to those that are more stable.
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).
278
DECISION TREE EXAMPLE
Figure(11- 13): Decision Tree Example
TORNADO DIAGRAM:
Also called tornado plot or tornado chart, is a special type of Bar chart,
where the data categories are listed vertically instead of the standard
horizontal presentation, and the categories are ordered so that the largest
bar appears at the top of the chart, the second largest appears second from
the top, and so on. They are so named because the final chart appears to be
one-half of a tornado. This diagram is useful for sensitivity analysis -
comparing the relative importance of variables. For example, if you need
to visually compare 100 budgetary items, and identify the largest ten items,
it would be nearly impossible to do using a standard bar graph. However,
in a tornado diagram of the budget items, the top ten bars would represent
the top ten largest items.
279
Figure(11- 14):Tornado Diagram
EXPECTED MONETARY VALUE

Quantitative Risk Analysis
High Demand
Probability=0.3
$550,000
Production
Successful
Probability = Low Demand
0.7 Probability
0.7 =
Decide -100,000 $
Decide not to pursue
to pursue
=0 $ Expect Value of Pursuing
Project A
Production
Unsuccessful 0.7 x 0.3 x 550,000=115,000
Probability =0.3
.Terminate = - 0.7 x 0.7 x 100,000 = -
200,000 $ 49,000
0.3 x -200,000 = - 60,000

The expected value of Project A is$ 6,500. The expected
value of not preceding is$ 0 .Proceeding is the lucrative
(benefiter) option.
Significant uncertainty in inputs
Figure(11- 15): Decision TreeMonte Carlo Simulation
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MONTE CARLO SIMULATION

It is a computerized mathematical technique that allows people to account
for risk in quantitative analysis and decision making. The technique is
used by professionals in such widely disparate fields as finance, project
management, energy, manufacturing, engineering, research and
development, insurance, oil & gas, transportation, and the environment.
Monte Carlo simulation furnishes the decision-maker with a range of
possible outcomes and the probabilities they will occur for any choice of
action. It shows the extreme possibilitiesthe outcomes of going for
broke and for the most conservative decisionalong with all possible
consequences for middle-of-the-road decisions.
Figure(11- 16):Monte Carlo Simulation
281
SCHEDULE RISK ANALYSIS
RISK COST SIMULATION
11.5 Plan Risk Responses

How Do You Plan Risk Responses?
Develop options & determine actions to enhance opportunities and
reduce threats
Risk responses must be:
o Appropriate to the significance of the risk.
o Cost effective.
282
o Timely.
o Realistic.
o Within the project context
o Agreed upon by all parties involved.
o Owned by a responsible person
.
Inputs
Tools &Techniques
outputs
1. Strategies for
1. Risk management negative
plan risks or threats
2. Risk register 2. Strategies for 1. Project management
positive risks or plan
opportunities updates
3. Contingent response 2. Project documents
strategies updates
4. Expert judgment
Figure(11- 17):Plan Risk Responses Process
Strategies for Negative Risks or Threats
Avoid Transfer Mitigate Accept
TOOLS & TECHNIQUES

1. Strategies for Negative Risks or Threats
Risk avoidance is a risk response strategy whereby the project team acts
to eliminate the threat or protect the project from its impact. It usually
involves changing the project management plan to eliminate the threat.
283
The project manager may also isolate the project objectives from the risks
impact or change the objective that is in jeopardy.
Examples of this include:
Extending the schedule, changing the strategy, or reducing scope. The
most radical avoidance strategy is to shut down the project entirely. Some
risks that arise early in the project can be avoided by clarifying
requirements, obtaining information, improving communication, or
acquiring expertise
Risk 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.
Transferring the risk simply gives another party responsibility for its
managementit does not eliminate it.
Transferring does not mean disowning the risk by transferring it to a later
project or another person without his or her knowledge or agreement. Risk
transference nearly always involves
Payment of a risk premium to the party taking on the risk. Transferring
liability for risk is most effective in dealing with financial risk exposure
Transference tools can be quite diverse and include, but are not limited to,
The use of insurance, performance bond, warrantee, guarantee, etc.
Contracts or agreements may be used to transfer liability for specified
risks to another party. For example, when a buyer has capabilities that the
seller does not possess, it may be prudent to transfer some work and its
concurrent risk contractually back to the buyer. In many cases, use of a
cost-plus contract may transfer the cost risk to the buyer, while a fixed-
price contract may transfer risk to the seller.
Questions to Ask Before Transferring Risks
Who is source of risk ,who can best control it?
Who can best manage risk if it occurs?
284
How much involvement should client retain?

Who should carry the risk?
Is premium charged reasonable?
Will recipient be able to sustain risk consequences?
Contracting/Outsourcing
o Hiring someone outside your organization to complete the work when it
would decrease risk.
o This is dealt with in detail in Procurement Management.
Requirements for Contract Selection
o Identification of specific risks.
o Determination of risk sharing among parties.
o Insertion of clear legal language in contract.
Table(11- 3):Contract Type VS. Risk Allocation
Scope V .Little Partial Complete
Uncertainty High Moderate low
Degree of Risk High Medium low
Contract Type CPPF CPIF CPFF FPPI FFP
CPPF-Cost Plus Percentage Fee ,CPIF-Cost Plus Incentive Fee ,CPFF-Cost

Plus Fixed Fee ,FPPI-Fixed Price Plus Incentive ,FFP-Firm Fixed Price
Insurance
o A response to certain risks such as fire ,property or personal injury is to
purchase insurance.
Insurance exchanges an unknown risk for a known risk because the
consequences of the risk are known. Insurance Documents Required In
Construction Contracts
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o Contractors All Risks Policy (CAR) or Erection All Risks Policy (EAR)
to include General Third Party Liability. Construction Plant and
Machinery Policy to include all equipment at various areas
o Workers is Compensation Insurance on Staff in accordance with
statutory Workmens Compensation ordinance.
Risk Mitigate. Risk mitigation is a risk response strategy whereby the
project team acts to reduce the probability of occurrence or impact of a
risk. It implies a reduction in the probability and/or impact of an adverse
risk to be within acceptable threshold limits
Mitigation Actions
Carrying out formal design review and document cleansing,
Increase material submittal review and approval,
Increase shop-drawings submittal review and approval,
Increase field inspection and testing,
Provide training for staff,
Adopt less complex processes,
Choose more stable seller,
Risk Accept. Risk acceptance is a risk response strategy whereby the
project team decides to acknowledge the risk and not take any action
unless the risk occurs. This strategy is adopted where it is not possible or
cost-effective to address a specific risk in any other way.
RESIDUAL RISK VS. SECONDARY RISK
Risk management is an integral component of project management. Risk
management includes not only managing identified risks but also the
residual and secondary risks.
RESIDUAL RISK
Residual risk is the risk that remains after a risk response has been taken.
The degree of risk tolerance should be considered to ensure that the
286
amount of residual risk is acceptable. If not, additional risk actions may

need to be taken to try and further reduce the risk.
SECONDARY RISK
A secondary risk is a risk that arises as the result of implementing a risk
response. If the risk response was not taken, the secondary risk would not
exist.
Secondary risks should be evaluated for appropriate action. The severity of
the secondary risk or risks may eliminate the risk response as an option if
the secondary risk falls outside of the project risk tolerance.
Example
You are planning the annual employee recognition event. It will be an
outdoor luau-themed event. Because there is a chance of rain, you decide
to mitigate the risk of the employees getting wet and not having fun by
putting up a tent.
There is still some residual risk that the employees will get wet walking
from the parking lot to the tent.
There is also a secondary risk that someone will trip over the tent poles
and get injured.
2. Strategies for Positive Risks or Opportunities
EFF EFF Ignore /Accept

Exploit Share Enhance
EXPLOIT/PURSUE (INSTEAD OF AVOIDANCE)

Seek to eliminate the uncertainty associated with a particular risk by
making the opportunity happen. For instance, if a positive risk of finishing
287
the project early is identified ,then adding enough people to ensure that
the project is completed early would be an example of exploiting the risk.
EXPLOIT /PURSUE ACTIONS
Value Engineering and Life Cycle Costing.
Pre-defined supplier
Adding bonus clauses for early project completion
SHARE )INSTEAD OF TRANSFER OR ALLOCATION(
Sharing a positive risk involves allocating ownership to a third party who
is best able to capture the opportunity for the benefit of the project) e.g.
risk sharing partnerships ,teams ,joint ventures(
For instance ,if contractor identifies a positive risk of getting a large order ,
they may determine that sharing that risk by partnering with another
contractor ,or even a competitor ,would be an acceptable strategy.
SHARE ACTIONS
Alternative project delivery methods that will allow share of revenue :
BOO ,etc.
Assign independent project management firm to fast track project
delivery.
Including savings share clause in contractors agreements.
ENHANCE (INSTEAD OF MITIGATION)
Modify the size of an opportunity by increasing probability (likelihood)
and/or positive impacts (consequences) ,and by identifying and
maximizing key drivers of these positive-impact risks
Requires that you understand the underlying cause(s) of the risk. By
working to influence the underlying risk triggers, you can increase the
likelihood of the risk occurring.
ENHANCE ACTIONS
Requesting multiple offers for expanding project scope
288
IGNORE )INSTEAD OF ACCEPT(

Ignore minor opportunities by adopting a reactive approach without
taking explicit actions.
3. Contingent Response Strategies
Some responses are designed for use only if certain events occur.
For some risks is appropriate for the project team to make a response plan
that will only be executed under certain predefined conditions, if it is
believed that there will be sufficient warning to implement the plan.
Events that trigger the contingency response, such as missing
intermediate milestones or gaining higher priority with a supplier ,should
be defined and tracked.
11.6 Control Risk
What happens in Control Risk?
Identify ,analyze & plan for new or changed risks
keep track of the identified risks and those on the watch list
reanalyze existing risks
Monitor trigger conditions for contingency plan
Monitor residual & secondary risks
Review the execution of risk responses while evaluating their
effectiveness.
Monitor & Control Risk process applies techniques ,such as variance and
trend analysis ,which require the use of performance data generated
during project execution
Other purposes of Monitor & Control Risk are to determine if:
Mid-course (on half of the road) correction needed to handle the risk
appropriately Project assumptions are still valid
Risk, as assessed, has changed from its prior state, with analysis of trends
Proper risk management policies & procedures are being followed
289
Contingency reserves of cost or schedule should be modified in line with

the risk of the project.
Monitor & Control Risk can involve choosing alternative strategies,
executing a contingency or fallback plan, taking corrective action &
modifying the project management plan
Receive periodic reports from risk response owner on the effectiveness of
the plan, and any unanticipated effects.
Inputs
Tools &Techniques
outputs
1. Project
1. Risk reassessment
management plan
2. Risk audits 1. Work performance
2. Risk register information
3. Variance and trend
3. Work performance 2. Change requests
analysis
data
4. Technical 3. Project management
4. Work performance plan updates
performance
reports 4. Project documents
measurement
5. Reserve analysis updates
6. Meetings 5. Organizational
process assets
Figure(11- 18):Control Risk Process
TOOLS & TECHNIQUES

1. Risk Reassessment
Monitor and Control Risks often results in identification of new risks ,
reassessment of current risks and the closing of risks that are outdated .
Project risk reassessments should be regularly scheduled.
The amount and detail of repetition that is appropriate depends on how
the project progresses relative to its objectives.
290
2. Risk Audits
Risk audits examine and document the effectiveness of risk responses in
dealing with identified risks and their root causes, as well as the
effectiveness of the risk management process.
The project manager is responsible for ensuring that risk audits are
performed at an appropriate frequency, as defined in the projects risk
management plan.
Risk audits may be included during routine project review meetings ,or
separate risk audit meetings may be held.
The format for the audit and its objectives should be clearly defined
before the audit is conducted.
3. Variance and Trend Analysis
Many control processes employ variance analysis to compare the planned
results to the actual results. For the purposes of monitoring and
controlling risk events ,trends in the projects execution should be
reviewed using performance information. Earned value analysis )Section
7.3(and other methods of project variance and trend analysis may be used
for monitoring overall project performance. Outcomes from these
analyses may forecast potential deviation of the project at completion
from cost and schedule targets. Deviation from the baseline plan may
indicate the potential impact of threats or opportunities
4. Technical Performance Measurement
Technical performance measurement compares technical
accomplishments during project execution to the project management
plans schedule of technical achievement. It requires definition of
objective quantifiable measures of technical performance which can be
used to compare actual results against targets. Such technical performance
measures might include weight, transaction times, number of delivered
defects ,storage capacity ,etc. Deviation, such as demonstrating more or
291
less functionality than planned at a milestone, can help to forecast the

degree of success in achieving the projects scope, and it may expose the
degree of technical risk faced by the project.
5. Reserve Analysis
Throughout execution of the project some risks may occur, with positive
or negative impacts on budget or schedule contingency reserves )Sections
6.5 and 7.1.(
Reserve analysis compares the amount of the contingency reserves
remaining to the amount of risk remaining at any time in the project in
order to determine if the remaining reserve is adequate.
6. Meetings
Project risk management should be an agenda item at periodic meetings.
The amount of time required for that item will vary ,depending upon the
risks that have been identified, their priority, and difficulty of response.
Risk management becomes easier the more often it is practiced.
Frequent discussions about risk make it more likely, that people will
identify risks and opportunities.
292
11.7 Risk Tips & Tricks

When you get a question about who should be
involved in risk identification, the best answer is
everyone! Everyone has a different perspective of the
project and can provide thoughts on opportunities and
threats.
Notice that: an updated risk register is the main output of several of the
risk management processes for most of these processes, the PMBOK guide
lists the updated risk register as the chief item under project documents
updates. read exam questions carefully, as the risk register contains
different information depending on when in the risk management process,
the question is referencing.
For example, if the project has just started and you are in the identify risks
process, the risk register will contain the identified risks and potential
responses, not the response plans actually selected for the project, which
come later.
A tricky question on the exam might ask, "When in the risk management
process are responses documented?" The answer is both during Identify
Risks (as potential responses) and during Plan Risk Responses (as selected
response plans)!
Qualitative risk analysis can also be used to:
Compare the risk of the project to the overall risk of other projects.
Determine whether the project should be continued or terminated.
Determine whether to proceed to the Perform Quantitative Risk or Plan
Risk Responses processes (depending on the needs of the project and the
performing organization). Many people get confused between qualitative
and quantitative risk analysis. Remember that qualitative risk analysis is a
subjective evaluation, even though numbers are used for the rating
293
In contrast, quantitative risk analysis is a more objective or numerical

evaluation; the rating of each risk is based on an attempt to measure the
actual probability and amount at stake (impact).
Therefore, while the rating for a risk in qualitative risk analysis might be a
5, it might be stated as a$40,000 cost impact in quantitative risk analysis.
You do not need to know how to perform this calculation for the exam.
Simply know the following.
Monte Carlo analysis:
Is usually done with a computer-based program because of the intricacies
of the calculations,
Evaluates the overall risk in the project,
Determines the probability of completing the project on any specific day,
or for any specific cost,
Determines the probability of any activity actually being on the critical
path Takes into account path convergence (places in the network diagram
where many paths converge into one activity),
Translates uncertainties into impacts to the total project
Can be used to assess cost and schedule impacts,
Results in a probability distribution,
Some examples of decision trees have the costs occurring only at the end
of the project, while others have costs occurring early or in the middle of
the project. Because a decision tree models all the possible choices to
resolve an issue, costs can appear anywhere in the diagram, not just at the
end.On the exam, don't get confused when you look at examples of decision
trees. Pay attention to the data provided in the question in order to correctly
interpret the answer.
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Table(11- 4):Brief Risk Management Process.
Perform Control Risks

Plan Risk Plan Risk
Identify Risks Qualitative
Management Responses
Risk Analysis
ACTIONS
Answer the Identify "all" Qualitatively Decrease Respond to
questions of: the risks on determine project threats risk trigger
the project which risk & increase
How will you Monitor
events Opportunities?
perform risk Use tools such residual risk
warrant a
management as Determine
response Create
on the project? brainstorming,
secondary and workarounds
root cause Assess the
What risk Create
analysis & quality of the Evaluate
management docs review to risk data Residual risks Effectiveness
policies or facilitate risk of plans
procedures identification Complete a Calculate final
exist for use risk urgency reserves Look for
on the project Involve the assessment additional
and what new stakeholders Determine risk
Subjectively risk; then
ones are owners (if not
determine the qualify,
Risk register already done).
needed? quantify &
including: probability
When will the List of risks and impact of Create plan responses
processes and List of all risks contingency for them as
procedures or potential risk and fallback necessary
risk responses Determine if plans.
Root causes Revisit the
management you will go to
of risks Identify risk watch list.
be performed? quantitative
Updated risk risk analysis triggers.
Update plans
How will categories or go directly Accept risks, Communicate
risks be to risk where
identified, response risk status.
appropriate.
and what planning Close risks
tools will be Update to the
Document the project Recommend
used?
watch list management changes,
What are (noncritical plan and project including
stakeholders' risks) documents corrective &
responsibilities Risk register preventive
for risk Determine including:
the overall actions
management? Residual &
risk ranking Secondary Work
How will you for the risks performance
budget for project Contingency & Information
risk fallback plans Risk register
Risk register Risk owners
management? updates
including: Triggers including:
Risk ranking Final Risk
of the project Reserve reassessment
as compared
295
to other Contracts and risk audit

projects Accepted Risks outcomes
compared New risks
List of Closed risks
prioritized Details of
risks risk
Risks by occurrences
category Lessons
Risks learned
needing Updates to the
additional project
analysis management
Trends & plan &
response organizational
Watch list process assets
Trends
296
297
12.PROJECT PROCUREMENT
MANAGEMENT
What does the PROCUREMENT knowledge area do?
Purchases or acquires products ,services or results needed to perform
project work (internal or external to the performing organization).
The procurement management determines what types of contract and
procurement document should be used.

Table (12- 1):Project Procurement Management Overview
Monitoring
Planning Executing Closing
&Controlling
12.1 12.2 12.3 12.4
Plan Close
Conduct Control
Procurements
Procurements Procurements
Procurements
Management
PMI often uses the terms Buyer & Seller.

o Buyers = Owner = the default in the exam (if not mentioned) = Clients ,
Customers ,Contractors ,or Purchasers.
o Seller= Designer, Contractor ,Subcontractor ,Service providers,
Suppliers/Vendors.
It is important to understand the situation/context and accordingly
interpret who is a Buyer or Seller.
Contracts
Contracts are formal .Also named as Agreements ,Subcontracts ,or
Purchase orders.
Letters of intent are not considered as Contract.
298
Contract is defined as an agreement between competent )equal( parties ,

contain (consideration, ground rules, terms and conditionsetc.) in
formal and legally form
Contracts are a method of transferring risk for a fees )a strategy used in
Risk Response Planning(
If internal to the Project Teams organization ,a non-contractual formal
PM team should prepare a tailor-made contract based on specific project
needs.
PM must know the contents of the contract & the purpose .
PM must be assigned before a contract is signed.
The purpose of contract:
o Define roles and responsibilities.
o Make things legally binding.
o Mitigate or allocate risks.
What do you need to have a legal contract?
o An offer.
o Acceptance.
o Consideration (something of value ,not necessarily money)
o Legal) capacity) ...) separate legal parties ,competent parties(
o Legal purpose (you cannot have a contract for the sale of illegal goods)
A contract ,offer ,or an acceptance may be written formal (preferred) or
verbal
CENTRALIZED Vs DECENTRALIZED CONTRACTING
Centralized Contracting :there is a procurement department .
Procurement manger may handle procurements on many projects .The
project manager contacts the department when he asks questions
299
Table (12- 2): Advantages& Disadvantages of

Centralized Contracting
Advantages Disadvantages
Higher level of expertise.

Procurement manager may
Improving training &
work in many project
shared lessons .
.Difficult for PM to obtain
Improving understanding.
contracting help when he
Clearly defined career in
needed.
procurement profession.
Decentralized Contracting :procurement manager is assigned to one

project full time and reports directly to the project manager .PM has an
availability and authority.
Table (12- 3): Advantages& Disadvantages of

Decentralized Contracting
Advantages Disadvantages
No home for the procurement
manger after the end.
.PM has easier access No high level of contracting
because the procurement expertise because there is no
manager is a member of department.
team. Little standardization of
procurement manager has procurement practices.
more loyalty to the project. No career path as a
procurement management in
company.
PROCUREMENT PROCESS DEFINITIONS

1. Plan Procurements Management
Make a Procurement Management Plan: that defines What ,When &
How to buy goods and services for the Project .Then ,prepare SOW
defining the purchase needs.
300
2. Conduct Procurements
Obtaining sellers responses, select sellers and awarding contracts (outside
the project organization).
3. Control Procurements
It is the process of managing procurement relationships, monitoring
contract performance, and making changes and corrections as needed.
Manage the Contract & contract changes ;the relationships between
Buyer/Seller.
Review & document the Seller performance.
Manage contractual relationship with outside Buyer of the Project.
4. Close Procurements
Complete & settle each contract.
12.1 Plan Procurement Management
Inputs
1. Project Tools &Techniques
management plan
2. Requirements outputs
documentation
3. Risk register 1. Procurement
4. Activity resource 1. Make-or-buy management plan
requirements analysis 2. Procurement
5. Project schedule 2. Expert judgment statement of work
6. Activity cost 3. Market research 3. Procurement
estimates 4. Meetings documents
7. Stakeholder register 4. Source selection
8. Enterprise criteria
environmental 5. Make-or-buy
factors decisions
9. Organizational 6. Change requests
updates
Figure(12- 1):Plan Procurement Management Process
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OUTPUTS
1. Procurement Management Plan
The procurement management plan can include guidance for:
Types of contracts to be used;
Risk management issues;
Standardized procurement documents ,if they are needed; for Managing
multiple suppliers;
Coordinating procurement with other project aspects, such a scheduling
and performance reporting Any constraints and assumptions that could
affect planned procurements;
Handling the required lead times to purchase items from sellers and
coordinating them with the project schedule development;
Handling the make-or-buy decisions and linking them into the Estimate
Activity Resource and Develop Schedule processes;
Setting the scheduled dates in each contract for the contract deliverables
and coordinating with the schedule development and control processes;
Identifying requirements for performance bonds or insurance contracts to
mitigate some forms of project risk;
Establishing the direction to be provided to the sellers on developing and
maintaining a work breakdown structure )WBS;(
Establishing the form and format to be used for the procurement/contract
statements of work;
Identifying pre-qualified sellers ,if any ,to be used ;and
Procurement metrics to be used to manage contracts and evaluate sellers.
A procurement management plan can be formal or informal ,can Broadly
or detailed framed ,and is based upon the needs of each project The
procurement management plan is a subsidiary component of the project
management plan )Section 4.2.3.1.(
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2. Procurement Statements of Work

The statement of work (SOW( for each procurement is developed from
the project scope baseline and defines only that portion of the project
scope that is to be included within the related contract.
The procurement SOW describes the work to be done on each
procurement must be clear ,complete and configured as possible.
It must describe all the work and activities the seller is required to
complete .It is a part of contract.
Information included in a SOW can include specifications ,quantity
desired ,quality levels ,performance data ,period of performance ,work
location ,and other requirements.
The procurement SOW is written to be clear ,complete ,and concise.
It includes a description of any related services required, such as
performance reporting or post-project operational support for the
procured item.
In some application areas, there are specific content and format
requirements for a procurement SOW.
Each individual procurement item requires a SOW.
However, multiple products or services can be grouped as one
procurement item within a single SOW.
The procurement SOW can be revised and refined as required as it moves
through the procurement process until incorporated into a signed contract
award.
Types of Procurement Statements of Work:
There are many types of procurement statements of work .Your choice
will depend on the nature of the work and the type of industry.
o Performance :This type conveys what the final product should be able
to accomplish ,rather than how it should be built or what its design
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characteristics should be (e.g I want a car that will go zero to 120

kilometers per hour in 4.2 seconds).
o Functional :This type conveys the end purpose or result ,rather than
specific procedures ,etc .It is to be used in the performance of the work
and may include a statement of the minimum essential characteristics of
the product (e.g ,.I want a car with 23 cup holders OK ,why can't I try to
be funny?).
o Design :This type conveys precisely what work is to be done (e.g ,.
"Build it exactly as shown on these drawings.("
3. Procurement Documents
Procurement documents are used to collect proposals from prospective
sellers.
Common terms are in use for different types of procurement documents
and may include:
o Request for information(RFI)
o Request for proposal (RFP)
o Request for quotes )RFQ)
o Invitation for bid) IFB(
o Invitation for negotiation) IFN(
Choosing depend up on type of organization (buyer/seller) needs and
industry.
4. Source Selection Criteria
Are often included as a part of the procurement prompting documents.
Developed and used to rate or score seller proposals, and can be objective
or subjective.
Selection criteria can be limited to purchase price if the procurement item
is readily available from a number of acceptable sellers. Purchase price in
this context includes both the cost of the item and all ancillary(additional)
expenses such as delivery.
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Other selection criteria can be identified and documented to support an

assessment for more complex products ,services ,or results .Some
examples are shown below.
Understanding of Need.: How well does the sellers proposal address the
procurement statement of work?
Overall or Life Cycle Cost: Will the selected seller produce the lowest
total cost of ownership (purchase cost plus operating cost)?
Technical Capability: Does the seller have ,or can the seller be
reasonably expected to acquire ,the technical skills and knowledge
needed?
Risk: How much risk is embedded in the statement of work? and how
much ,risk will be assigned to the selected seller and how does the seller
mitigate risk?
Management approach. Does the seller have ,or can the seller be
reasonably expected to develop, management processes and procedures to
ensure a successful project?
Technical approach .Do the sellers proposed technical methodologies ,
techniques ,solutions ,and services meet the procurement documents
requirements or are they likely to provide more or less than the expected
results?
Warranty. What does the seller propose to warrant for the final product,
and through what time period?
Financial capacity .Does the seller have ,or can the seller reasonably be
expected to obtain ,the necessary financial resources ?
Production capacity and interest .Does the seller have the capacity and
interest to meet potential future requirements?
Business size and type. Does the sellers enterprise meet a specific
category of business such as small ,women-owned ,or disadvantaged
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small business ,as defined by the buyer or established by governmental

agency and set forth as a condition of the contract award?
Past performance of sellers. What has been the experience with selected
sellers?
References. Can the seller provide references from prior customers
verifying the sellers work experience and compliance with contractual
requirements?
Intellectual property rights .Do the seller assert intellectual property rights
in the work processes or services they will use or in the products they will
produce for the project?
5. Make-or-Buy Decisions
Make-or-buy decisions document the conclusions reached regarding what
project products, services, or results will be acquired from outside the
project organization, or will be performed internally by the project team.
This may also include decisions to require insurance policies or
performance bond contracts to address some of the identified risks.
The make-or-buy decisions document can be as simple as a listing that
includes a short justification for the decisions.
These decisions can be altered( changed) as subsequent procurement
activities indicate a requirement for a different approach.
INPUTS
The various types of contractual agreements used by the organization also
influence decisions for the Plan Procurement Management process. The
organizational process assets that influence the Plan Procurement
Management process include ,but are not limited to:
o Formal procurement policies ,procedures ,and guidelines .Most
organizations have formal procurement policies and
buyingorganizations .When such procurement support is not available ,
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the project team should supply both the resources and the expertise to
perform such procurement activities.
o Management systems that are considered in developing the procurement
management plan and selecting the contractual relationships to be used.
o An established multi-level supplier system of prequalified sellers based
on prior experience.
Contracts Types
All legal contractual relationships generally fall into one of two broad
families,
o Fixed price (FP)
o Cost reimbursable(CR)
Also ,there is a third hybrid-type commonly in use:
o Time and materials contract (T&M)
The more popular of the 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.
Fixed Price Contracts (LUMP SUM)
Fixed total price for a well-defined product
If the product is not well-defined ,both the buyer and seller are at risk
There is generally a single fee ,although payment terms may be specified
so that the cost is not necessarily a lump sum payable at the end .Fixed
price contracts may also include incentives
This type of contract is very popular when the scope of work is thoroughly
defined and completely known; changes in the future will lead to
troublesome and sometimes costly extras.
Contractor performs the work at negotiated value.
Lowest risk to buyer ,highest risk to seller
Usually requires a long period for preparation of bids ;also seller add a lot
of contingency to protect themselves.
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Firm Fixed Price Contracts (FFP). The most commonly used contract
type is the FFP. It is favored by most buying organizations because the
price for goods is set at the outset and not subject to change unless the
scope of work changes. Any cost increase due to adverse performance is
the responsibility of the seller,
Fixed Price Incentive Fee )FPIF)
o For example: the contract + 10.000 S. R/month early finish.
o The price is fixed ,with an incentive fee for meeting a target specified in
the contract ,(such as finishing the work ahead of schedule(
o Allows for adjustment of the total profit by a formula that depends on
the final total cost at the completion of the project.
o There is an incentive to the seller to decrease costs.
Fixed Price Economic Price Adjustment (FPEPA)
o If there is a question about future prices for multiyear contract, then
Fixed price with prospective price redetermination.
o Popular in cases where fluctuations in the exchange or interest rates may
impact the project.
o An economic stipulation (condition) may be included to protect the seller
or the buyer - based on the interest rate, the consumer price index, cost
of living adjustments, currency exchange rates, or other indices.
o Allows for price increases if the contract is for multiple years) e.g .to
account for inflation). Purchase order :is the simplest of FP contracts on
party sign.
COST REIMBURSABLE CONTRACTS
They are used when the exact scope of work is uncertain.
The buyer has the most risk because the total cost is unknown.
Are suitable The projects in which the scope is unknown.
Payment( reimbursement )to the seller for actual costs.
Costs are classified as direct costs or indirect costs.
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o Direct costs are costs incurred for the exclusive benefit of the project
o Indirect costs (overhead costs) are costs allocated to the project by the
performing organization may include incentives for meeting or
exceeding selected project objectives.
All cost reimbursable contracts require that the sellers books be audited.
Cost contract :contract = cost )there is no profit)
Cost Plus Percentage of Costs (CPPC =( Cost plus fee (CPF (
o e.g.: contract = cost + 10% of costs as fee not preferred not allowed in
U.S because there is no incentive for seller to control costs.
Cost Plus Fixed Fee (CPFF):
o e.g. contract = Cost + 100.000 (fixed fee).
o Cost may vary but the fee remains firm.
o Provides incentive to the contractor for quick completion of the job.
The seller passes the cost back to the buyer and receives an additional
fixed fee upon completion of the project.
Cost Plus Award Fee(CPAF)
o Cost plus Award Fee Contracts (CPAF). The seller is reimbursed for all
legitimate costs, but the majority of the fee is earned only based on the
satisfaction of certain broad subjective performance criteria defined and
incorporated into the contract. The determination of fee is based only on
the subjective determination of seller performance by the buyer, and is
generally not subject to appeals,
Cost Plus Incentive Fee (CPIF):
o Cost Plus Incentive Fee Contracts (CPIF). The seller is reimbursed for
all allowable costs for performing the contract work and receives a
predetermined incentive fee based upon achieving certain performance
objectives as set forth in the contract. In CPIF contracts, if the final costs
are less or greater than the original estimated costs, then both the buyer
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and seller share costs from the departures based upon a renegotiated cost-
sharing formula.
o Usually used for long term (e.g .R&D) contracts.
o The seller passes the cost back to the buyer and gets an incentive fee for
meeting a target (usually tied back to keeping costs low) specified in the
contract.
Time and Material (T&M) Contracts (UNIT PRICE)
In a time and materials contract, the seller charges for time plus the cost
of any materials needed to complete the work.
It has elements of a fixed price contract )in the fixed price per hour( and
a cost reimbursable contract )in the material costs and the fact that the
total cost is unknown).
The seller's profit is built into the rate ,so they have no incentive to get
the work done quickly or efficiently
For these reasons ,this type of contract is best used for work valued at
small dollar amounts and lasting a short amount of time.
To make sure the costs do not become higher than budgeted ,the buyer
may put a" Not to Exceed "clause in the contract and thus limit the total
cost they are required to pay.
With a time and material contract ,the buyer has a medium amount of cost
risk compared with cost reimbursable and fixed price contracts.
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Table (12- 4):Contract Type Selection Procedures
Cost Time and

Fixed Price
Reimbursable Material
Definition of
Well Defined Not well defined Not well defined
product
Risk of
Low High High
buyer
Risk of
High Low Low
seller
Unit rates for
Payment for
payment fixed ,
Type of Fixed total actual costs + a
but the cost
payment price fee for seller
increases with
profit
time
Figure(12- 2):Seller Buyer And Risk Relationship
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TOOLS &TECHNIQUES
1. Make or Buy Analysis
A make-or-buy analysis is a general management technique used to
determine whether particular work can best be accomplished by the project
team or must be purchased from outside sources.
QUESTION
You are trying to decide whether to lease or buy an Equipment for your
project ,the daily lease cost is 120 $ .To purchase the Equipment, the
investment cost is 1,000 $and the daily cost is 20 $ .How long will it take
the lease cost to be the same as the purchase cost?
ANSWER :Let D equal the number of days when the purchase and lease
costs are equal.
120$D = 20 $ D + 1.000$
100$ D = 1.000$ then D = 10
This calculation helps a project manager decide whether it is better to lease
or buy .The calculation says that the costs are the same after 10 days .
Therefore ,if you are planning to use the item for fewer than 10 days ,you
should lease .If you were planning to use it for more than 10 days ,it would
be cheaper to buy the Equipment. These costs are then included in the
project cost estimate
2. Market Research
Market research includes examination of industry and specific vendor
capabilities.
Procurement teams may achieve information gained at conferences ,
online reviews and a variety of sources to identify market capabilities.
12.2 Conduct Procurement
What happens in CONDUCT PROCUREMENTS?
Conduct Procurements is the process of obtaining Seller responses ,
selecting a seller ,and awarding a contract
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In this process ,the team will receive bids or proposals and will apply
previously defined selection criteria to select one or more sellers who are
qualified to perform the work and acceptable as a seller.
On major procurement items ,overall process of requesting responses from
sellers and evaluating those responses can be repeated.
A short list of qualified sellers can be established based on a preliminary
proposal .
A more detailed evaluation can then be conducted based on a more
specific and comprehensive requirements document requested from the
sellers on the short list .In addition ,tools and techniques described here
can be used alone or in combination to select sellers.
For example ,a weighting system can be used to:
o Select a single seller that will be asked to sign a standard contract ,and
establish a negotiating sequence by ranking all proposals by the weighted
Evaluation scores assigned to each proposal.
This process allows buyer to maintain the integrity of proc .Process and
make sellers are bidding or proposing on the same risk.
It is an opportunity for the buyer to discover anything missing in the
procurement documents.
The project manager must watch out for in a bidder conference collusion.
Sellers not asking question in front of competition.
Make sure all answers & questions are put in writing and all sellers by
addenda to procurement documents.
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Inputs
Tools &Techniques
1. Procurement
2. Procurement
documents 1. Bidder conference
3. Source selection 2. Proposal evaluation
criteria techniques
4. Seller proposals 3. Independent 1. Selected sellers
5. Project documents estimates 2. Agreements
6. Make-or-buy 4. Expert judgment 3. Resource calendars
decisions 5. Advertising 4. Change requests
7. Procurement 6. Analytical 5. Project management
statement techniques plan updates
of work 7. Procurement 6. Project documents
8. Organizational negotiations updates
process assets
Figure(12- 3): Conduct Procurement Process
OUTPUTS
1. Selected Sellers
The sellers selected are those sellers who have been judged to be in a
competitive range .Based upon the outcome of the proposal or bid
evaluation, and who have negotiated a draft contract that will become the
actual contract when an award is made.
Final approval of all complex, high-value, high-risk procurements will
generally require organizational senior management approval prior to
award.
2. Agreements
An agreement can also be called an understanding ,a contract ,a
subcontract ,or a purchase order The contract can be in the form of simple
purchase order or a complex document.
Regardless of the documents complexity, a contract is a mutually
binding legal agreement that obligates the seller to provide the specified
products, services, or results, and obligates the buyer to compensate the
seller
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A contract is a legal relationship subject to remedy (legal way) in the

courts.
The Major Components in An Agreement Document:
Statement of work or deliverables,
Schedule baseline,
Performance reporting,
Period of performance,
Roles and responsibilities,
Sellers place of performance,
Pricing,
Payment terms,
Place of delivery,
Inspection and acceptance criteria,
Warranty
Product support,
Limitation of liability,
Fees and retainage,
Penalties,
Incentives,
Insurance and performance bonds,
Subordinate subcontractor approvals,
Change request handling ,and
Termination and alternative dispute
INPUTS
The quantity and availability of contracted resources and those dates on
which each specific resource and when it will be active or idle are
documented.
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2. Source Selection Criteria

Source selection criteria can include information on the suppliers required
capabilities ,capacity ,delivery dates ,product cost ,life-cycle cost, technical
expertise, and the approach to the contract as described in 12.1 PMBOK
Guide.
3. Seller Proposals
Seller proposal (or price quote or bid):
A proposal is a seller's responded to the procurement documents,
A proposal is the responded to a request for proposal (RFP),
A price quote is the responded to a request for quote (RFQ),
A bid is usually the responded to an invitation for bid (IFB(
An evaluation body to select one or more successful bidders (sellers) will
use seller proposals.
TOOLS & TECHNIQUES
1. Bidder Conferences
Bidder conferences (sometimes called contractor conferences ,vendor
conferences ,and pre-bid conferences)
Bidder conferences are meetings with all prospective sellers and buyers
prior to submittal of a bid or proposal.
They are used to ensure that all prospective sellers have a clear and
common understanding of the procurement (both technical and
contractual requirements) ,and that no bidders receive preferential
treatment.
Responses to questions can be incorporated into the procurement
documents as amendments (modifications) To be fair ,buyers must take
great care to ensure that all prospective sellers hear every question from
any individual prospective seller and every answer from the buyer.
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2. Proposal Evaluation Techniques

On complex procurements, where source selection will be made based on
seller responses to previously defined weighted criteria,
A formal evaluation review process will be defined by the buyer s
procurement policies.
The evaluation committee will make their selection for approval by
management prior to the award.
3. Independent Estimates
For many procurement items, the procuring organization may elect to
either prepare its own independent estimate ,or have an estimate of costs
prepared by an outside professional estimator, to serve as a benchmark on
proposed responses.
Significant differences in cost estimates can be an indication that the
procurement statement of work was deficient ,ambiguous ,and/or thatthe
prospective sellers either misunderstood or failed to respond fully to the
procurement statement of work.
4. Expert Judgment
Expert judgment may be used in evaluating seller proposals.
The evaluation of proposals may be accomplished by a multi -discipline
review team with expertise in each of the areas covered by the
procurement documents and proposed contract
This can include expertise from functional disciplines such as contracting ,
legal ,finance ,accounting ,engineering ,design ,research ,development ,
sales ,and manufacturing.
5. Advertising
Existing lists of potential sellers can often be expanded by placing
advertisements in general circulation publications such as selected
newspapers or in specialty trade publications.
317
Some government jurisdiction requires public advertising of certain types

of procurement items, and most government
jurisdictions require public advertising of pending government contracts.
6. Procurement Negotiations
Negotiations clarify the structure ,requirements and other terms of the
purchases so that mutual agreement can be reached prior to signing the
contract.
Final contract language reflects all agreements reached.
Subjects covered should include responsibilities ,authority to make
changes ,applicable terms and governing law ,technical and business
management approaches ,proprietary rights ,contract financing ,technical
solutions ,overall schedule ,payments ,and price.
Negotiations conclude with a contract document that can be executed by
both buyer and seller
For complex procurement items ,contract negotiation can be an
independent process with inputs (e.g ,.issues or an open items listing) and
outputs (e.g. documented decisions) of its own.
12.3 Control Procurement
How do we CONTROL PROCUREMENT?
It is the process of managing procurement relationships ,monitoring
contract performance ,and making changes and corrections as needed.
Both the buyer and the seller will control the procurement contract for
similar purposes.
Each must ensure that both parties meet their contractual commitments
and that their own legal rights are protected.
The Control Procurements process ensures that the sellers performance
meets procurement requirements and that the buyer performs according
to the terms of the legal contract.
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Due to varying org .structures ,many organizations treat Control contract

as an administrative function separate from the project organization.
While a procurement Controller may be on the project team ,this
individual typically reports to a supervisor from a different department.
This is usually true if the performing organization is also the seller of the
project to an external customer.
Inputs
Tools &Techniques
1. Contract change outputs

1. Project
management plan control system
2. Procurement 2. Procurement
documents performance
3. Agreements reviews 1. Work performance
4. Approved change 3. Inspections and information
requests audits 2. Change requests
5. Work performance 4. Performance 3. Project management
reports reporting plan updates
6. Work performance 5. Payment systems 4. Project documents
data 6. Claims updates
administration 5. Organizational
7. Records process
management assets updates
system
Figure(12- 4):Control Procurement Process
OUTPUTS
1. Procurement Documentation
Procurement documentation (updates) includes ,but is not limited to:
o The procurement contract with all supporting schedules,
o Requested unapproved contract changes, and Approved change
requests.
Procurement documentation also includes any seller-developed technical
documentation and other work performance information such as
deliverables ,seller performance reports ,warranties ,financial documents
319
including invoices and payment records, and the results of contract-related

inspections.
2. Organization Process Assets (updates)
Elements of the organizational process assets that may be updated
include ,but are not limited to:
o Correspondence. Contract terms and conditions often require written
documentation of certain aspects of buyer/seller communications ,such
as the need for warnings of unsatisfactory performance and requests for
contract changes or clarification.
o Payment schedules and requests. All payments should be made in
accordance with the procurement contract terms and conditions.
o Seller performance evaluation documentation. Seller performance
evaluation documentation is prepared by the buyer.
Elements of the project management plan that may be updated include,
but are not limited to:
o Procurement management plan. The procurement management plan
(Section 12.1 PMBOK Guide( is updated to reflect any approved
change requests that affect procurement management, including impacts
to costs or schedules.
Baseline schedule. If there are slippages that affect overall project
performance, the baseline schedule may need to be updated to reflect the
current expectations.
TOOLS & TECHNIQUES
1. Contract Change Control System
A contract change control system defines the process by which the
procurement can be modified.
It includes the paperwork, tracking systems, dispute resolution
procedures ,and approval levels necessary for authorizing changes.
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The contract change control system is integrated with the integrated

change control system
2. Procurement Performance Reviews
A procurement performance review is a structured review of the sellers
progress to deliver project scope and quality ,within cost and on schedule ,
as compared to the contract.
It can include a review of seller-prepared documentation and buyer
inspections ,as well as quality audits conducted during sellers execution
of the work.
The objective of a performance review is to identify performance
successes or failures ,progress with respect to the procurement statement
of work ,and contract non-compliance ,which allow the buyer to quantify
the sellers demonstrated nobility or inability to perform work.
Such reviews may take place as a part of project status reviews ,which
would include key suppliers.
3. Inspection and Audits
Inspections and audits required by the buyer and supported by the seller
as specified in the procurement contract can be conducted during
execution of the project to verify compliance in the sellers work
processes or deliverables.
If authorized by contract ,some inspection and audit teams can include
buyer procurement personnel.
4. Performance Reporting
Performance reporting provides management with information about how
effectively the seller is achieving the contractual objectives.
5. Payment System
Payments to the seller are typically processed by the accounts payable
system of the buyer after certification of satisfactory work by an
authorized person on the project team.
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All payments should be made and documented in strict accordance with

the terms of the contract.
6. Claims Administration
Contested (discussed)changes and potential constructive changes are
those requested changes where the buyer and seller cannot reach an
agreement on compensation for the change, or cannot agree that a change
has occurred. These contested changes are variously called claims ,
disputes ,or appeals.
Claims are documented, processed, monitored, and managed throughout
the contract life cycle ,usually in accordance with the terms of the contract
If the parties themselves do not resolve a claim it may have to be handled
in accordance with )ADR( typically following procedures established in
the contract .Settlement of all claims and disputes through negotiation is
the preferred method.
7. Records Management System
A records management system is used by the project manager to manage
contract and procurement documentation and records.
It consists of a specific set of processes, related control functions, and
automation tools that are consolidated and combined as part of the project
management information system )Section 4.3PMBOK Guide.(
The system contains a restorable archive of contract documents and
correspondence
12.4 Close Procurement
What happens in CLOSE PROCUREMENTS?
Close procurements process supports the close project process Verifies
that all work and deliverables were acceptable.
Administrative activities ,such as update records to reflect final results
and archive them for future use.
In multi-phase projects ,the terms of a contract may only apply to a given
322
phase of the project.

Unresolved claims may be subject to litigation after close procurements .
Contract terms & conditions can prescribe specific procedures for close
procurements.
Early termination of a contract is a special case of close procurements &
can happen when the buyer & seller mutually agree or when there's
contract default
Inputs
Tools &Techniques
outputs
1. Project 1. Procurement audits
management plan 2. Procurement
2. Procurement negotiations 1. Closed
documents 3. Records procurements
management 2. Organizational
system process assets
updates
Figure(12- 5): Close Procurement Process
OUTPUTS
1. Closed Procurements
The buyer ,usually through its authorized procurement administrator ,
provides the seller with formal written notice that the contract has been
completed.
Requirements for formal procurement closure are usually defined in the
terms and conditions of the contract and are included in the procurement
management plan.
2. Organizational Process Asset (updates)
Elements of the organizational process assets that may be updated
include ,but are not limited to:
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Procurement file .A complete set of indexed contract documentation ,

including the closed contract, is prepared for inclusion with the final
project files.
Deliverable acceptance. The buyer ,usually through its authorized
procurement administrator ,provides the seller with formal written notice
that the deliverables have been accepted or rejected .Requirements for
formal deliverable acceptance ,and how to address non-conforming
deliverables ,are usually defined in the contract
o Lessons learned documentation. Lessons learned, what has been
experienced ,and process improvement recommendations should be
developed for the project file to improve future procurements.
INPUTS
To close the contract, all procurement documents is collected ,indexed,
and filed.
Information on contract schedule, scope, quality,and cost performance
along with all contract change documentation ,payment records ,and
inspection results are catalogued.
This information can be used for lessons learned information and as a basis
for evaluating contractors for future contracts.
TOOLS & TECHNIQUES
1. Procurement Audits
A procurement audit is a structured review of the procurement process
originating from the Plan Procurements process (Section 12.1 PMBOK
Guide) through Control Procurements (Section 12.3 PMBOK
Guide).
Capture Lesson Learned
The objective of a procurement audit is to identify successes and failures
that warrant recognition in the preparation or administration.
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2. Procurement Negotiations
In all procurement relationships, the final equitable settlement of all
outstanding issues ,claims ,and disputes by negotiation is a primary goal.
Whenever settlement cannot be achieved through direct negotiation, some
form of Alternative Dispute Resolution )ADR) including mediation or
arbitration may be explored.
When all else fails, litigation In the courts are the least desirable option.
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12.5 Procurement Tips & Tricks

The contract forms the legal relationship between the
entities; it is mutually binding and provides the
framework for how a failure by one side will be
addressed and ultimately remedied in court.
The broader term "agreement" generally encompasses documents or
communications that outline internal or external relationships and their
intentions. A contract can be considered an agreement, but an agreement
wouldn't necessarily be a contract.
Imagine the international division and the US division of a company want
to leverage their resources to achieve a shared strategic objective; they
would create an agreement but likely not a contract. Agreements can be
used to express and outline the intentions of projects.
The charter and the project management plans are examples of agreements
that are not contracts; they are internal agreements. Some other examples
of agreements are service level agreements, memos of intent, letters of
intent, and letters of agreement, e-mails, and verbal agreements.
So what does this mean for you? The way you communicate, escalate, and
solve problems will differ depending on whether your actions are
governed by a contract or an internal agreement. For example, notifying a
seller of default on a contract term or condition should be done through
formal written communication to create a record and ensure appropriate
legal action can be taken if necessary.
In comparison, for an internal agreement, failure to meet a term of the
agreement might be handled in a conversation followed up by an e-mail.
For the exam, understanding whether a situational question describes an
internal agreement or a contract with an outside party might be critical to
helping you select the right answer.
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In this chapter, we primarily use the term "contract;' because the

procurement process is used to acquire necessary resources that are
outside the project team and involve legal documents between the buyer
and seller.
1. Be careful to read the questions carefully to see if the situation described
in the question is from the buyer's or seller's point of view. If no point of
view is mentioned, assume you are the BUYER. Make sure you get your
mind around being a buyer before you take this exam. The issues and
impacts of many situations are completely different if you are a buyer than
if you are a seller.
2. For large projects, sellers are typically going to provide the full
complement of a solution, rather than augmenting a project team with
additional resources. For example, on a small or medium-size project, you
might add contract developers to your internal staff to do the coding,
whereas a large project might outsource all of that development work to
an external resource who would plan and manage all of the developers,
testers, etc. Unless an exam question indicates otherwise, assume the seller
is providing all of the work external to the buyer's team rather than
supplying resources to supplement the team.
3. Exam Additional Tricks
Questions involving contracts, keep in mind the following general rules,
especially if the answer to the question is not immediately apparent:
Contracts require formality. What this means is that any correspondence,
clarification, and notifications related to the contracts should be formal
written communication, which can be followed up with verbal
communication, if necessary. If any issues develop that require arbitration,
mediation, or litigation, the formal written communications will be more
enforceable and supportable than any verbal communications.
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All product and project management requirements for the procurement

work should be specifically stated in the contract.
If it is not in the contract, it can only be done if a formal change order to
the contract is issued.
If it is in the contract, it must be done or a formal change order must be
approved 1w both parties.
Changes to contracts must be submitted and approved in writing.
Contracts are legally binding; the seller must perform as agreed in the
contract, or else face the consequences for breach of contract.
Contracts should help diminish protect risk.
Most governments back all contracts that fall within their jurisdiction by
providing a court system for dispute resolution.
Remembering these pointers can help you get about four more questions
right!
First, remember that it is the project manager's project. There are certain
things that cannot be done effectively without the project manager. This
fact is so important that a large percentage of the questions on the exam
have focused on testing whether you know what you should do. Here is
a quick summary. Do not memorize it; instead, make sure you understand
it.
Know the procurement process so you know what will happen when and
can plan for it. Understand what contract terms and conditions mean so
you can read and understand contracts. This will help you plan and
manage the monitoring and controlling of procurements.
Make sure the contract contains all the scope of work and all the project
management requirements, such as attendance at meetings, reports,
actions, and communications deemed necessary to minimize problems
and miscommunications with the seller(s).
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Identify risks, and incorporate mitigation and allocation of risks into the
contract to decrease project risk.
Help tailor the contract to the unique needs of the project while it is being
written.
Include the time required to complete the procurement process into the
schedule for the project so the project schedule is realistic.
Be involved during contract negotiations to protect the relationship with
the seller. A contentious negotiation process-often created when the
seller feels that they have had to give up too much profit or agree to terms
and condition they do not like to win the contract- can create a win/lose
relationship with the procurement manager and seller. The project
manager will have to manage the seller's delivery to the contract, and bad
feelings on the part of the seller can create extra challenges. So it's best
for the project manager to be involved to influence the negotiations for
the best interests of the project.
Protect the integrity of the project and the ability to get the work done by
making sure the procurement process goes as smoothly as possible.
Help make sure all the work in the contract is done, such as reporting,
inspections, and legal deliverables, including the release of liens and
ownership of materials, not just the technical scope.
Do not ask for something that is no in the contract without making a
corresponding change to the contract.
Work with the procurement manager Lo manage necessary changes to
the contract
4. Advantages and Disadvantages of Each Contract Type: A trick on the
exam is to realize that buyers must select the appropriate type of contract
for what they are buying. The following exercise will test whether you
really understand the different types of contracts and will help you select
the appropriate type of contract on the exam.
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5. Lets Look at This Concept Together. Some Possible Answers

Include:
The seller will have a different company culture and different procedures
than the buyers organization.
The buyer and seller have different objectives. The sellers objective is to
generate revenue, and the buyers objective is to complete the work.
It is not as easy to see problems on the project because the procurement
work is being done in different location,
There is a greater reliance on reports to determine if a problem exists.
There is a greater reliance on relationships between the buyers and sellers
project managers to deal with issues that are not covered in the wording
of the contract.
In instances in which there are many changes. It might be best to terminate
the contract and start fresh through negotiating a new contract with the
existing seller or finding a new seller. This is a drastic step to be done only
when the existing contract no longer serves the purposes of defining. all
the work, roles, and responsibilities. Realize that contracts can be
terminated, as described later in this chapter.
6. One of the things some people find confusing is the difference between
the Close Project or Phase process and procurement closure, is often
seems to come up as a question on the exam. The answer is easy. Though.
If you think of project closure as closing out a project or phase and
procurement closure as closing out a procurement.
Depending On What Choices the Exam Gives You, The Answer Could
Be:
There may be much procurement in one project. So there can be many
procurement dousers, hut Close Project or Phase only happens at the end
of the project or phase. All procurements must be closed before the final
project closure. Therefore, upon completion of the contract for each
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procurement, the project manager performs a procurement audit and

closes out the procurement. When the project as a whole is completed
later, the project manager performs the administrative and financial
closure and other processes required to close out the project.
To make a little more confusing, there can be questions that ask about the
frequency of project closure and procurement closure. Read these
questions carefully, as the way the questions are written will help you
select the right answer. For projects that are managed by phases, such as
a design phase, testing phase, and installation phase, the Close Project or
Phase process occurs at the end of each project phase. Therefore, project
closure may be done at the end of each project phase and at the end of the
project as a whole. Make sure you understand this for the exam. In
contrast, procurement closure is done at the completion of each contract.
Procurement closure requires more record keeping and must be done more
formally than is generally required for project closure, to protect the legal
interests of both parties.
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13.PROJECT STAKEHOLDER
MANAGEMENT
Table (13- 1):Stakeholder Management Overview

Monitoring
Initiation Planning Executing
&Controlling
13.1 13.2 13.3 13.4
Identify Plan Manage Control
Stakeholders Stakeholder Stakeholder Stakeholder
Management Engagement Engagement
13.1 Identify Stakeholders

The process of identifying all people or organizations impacted by the
project, and documenting relevant information regarding their interests ,
involvement and impact on project success. A strategy can then be
developed for approaching each stakeholder and determining the level
and timing of stakeholders involvement to maximize positive influences
and mitigate potential negative impacts.
Inputs
Tools &Techniques
1. Project charter
2. Procurement outputs
documents
3. Enterprise
environmental 1. Stakeholder analysis
factors 2. Expert judgment
4. Organizational 3. Meetings 1. Stakeholder register
process assets
Figure (13- 1): Identify Stakeholder Process
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Most projects will have a large number of stakeholders .As the project
managers time is limited and must be used as efficiently as possible
These stakeholders should be classified according to their interest ,
influence and involvement in the project.
OUTPUTS
1. Stakeholder Register
This contains all details related to the identified including ,but not limited
to:
o Identification Information: Name, organizational position, location,
role in the project, contact information;
o Assessment Information: Major requirements, main expectations,
potential influence in the project, phase in the lifecycle with the most
interest; and
o Stakeholder Classification: Internal / external, supporter / neutral /
resistor, etc.
INPUTS
1. Project Charter
The project charter can provide information about internal and external
parties involved in and affected by the project, such as project sponsor(s),
customers ,team members ,groups and departments participating in the
project, and other people or organizations affected by the project.
The project charter can provide information about internal and external
parties involved in and affected by the project, such as project sponsor (s),
customers ,team members ,groups and departments participating in the
project, and other people or organizations affected by the project.
If a project is the result of procurement activity or is based on an
established contract, the parties in that contract are key project
stakeholders.
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Other relevant parties ,such as suppliers ,should also be considered as part

of the project stakeholders list
The enterprise environmental factors that can influence the Identify
Stakeholders process include ,but are not limited to:
o Organizational or company culture and structure.
The organizational process assets that can influence the Identify
Stakeholders process include ,but are not limited to:
o Stakeholder register templates
o Lessons learned from previous projects ,and
o Stakeholder registers from previous projects.
TOOLS & TECHNIQUES
1. Stakeholder Analysis
Stakeholder analysis is a process of systematically gathering and
analyzing quantitative and qualitative information to determine whose
interests should be taken into account throughout the project.
It identifies the interests, expectations, and influence of the stakeholders
and relates them to the purpose of the project.
It also helps identify stakeholder relationships that can be leveraged
(provided) to build coalitions and potential partnerships to enhance the
projects chance of success.
Step 1 :Identify all potential project stakeholders and relevant
information ,such as their roles ,departments ,interests ,knowledge levels ,
expectations ,and influence levels .Key stakeholders are usually easy to
identify.
Identifying other stakeholders is usually done by interviewing identified
stakeholders and expanding the list until all potential stakeholders are
included.
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Step 2: Identify the potential impact or support each stakeholder could

generate ,and classify them so as to define an approach strategy
In large stakeholder communities it is important to prioritize the key
stakeholders to ensure the efficient use of effort to communicate and
manage their expectations.
Step 3: Assess how key stakeholders are likely to react or respond in
various situations, in order to plan how to influence them to enhance their
support and mitigate potential negative impacts.
Figure (13- 2):Example for Power/Interest Grid with Stakeholders
2. Expert Judgment
To ensure comprehensive identification and listing of stakeholders ,
judgment and expertise should be sought from groups or individuals with
specialized training or knowledge on the subject area such as:
o Senior management,
o Other units within the organization,
o Identified key stakeholders,
o Project managers who have worked on projects in the same area
(directly or through lessons learned),
o Subject matter experts (SMEs) in business or project area,
o Industry groups and consultants ,and
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o Professional and technical associations.

13.2 Plan Stakeholder Management
It 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.
Inputs
Tools &Techniques
1. Project
2. Stakeholder register
3. Enterprise 1. Expert judgment
environmental 2. Meetings 1. Stakeholder
factors 3. Analytical management plan
4. Organizational techniques 2. Project documents
Figure (13- 3):Plan Stakeholder Management Process
It provides a clear ,actionable plan to interact with project stakeholders to

support the projects interests.
Plan Stakeholder Management identifies how the project will affect
stakeholders ,which then allows the project manager to develop various
ways to effectively engage stakeholders in the project ,to manage their
expectations ,and to ultimately achieving the project objectives.
Stakeholder management is more than improving communications and
requires more than managing a team.
Stakeholder management is about creation and maintenance of
relationships between the project team and stakeholders ,with the aim to
satisfy their respective needs and requirements within project boundaries
This process generates the stakeholder management plan, which contains
detailed plans on how effective stakeholder management can be realized.
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As the project progresses, the membership of the stakeholder community

and required level of engagement may change ,therefore, stakeholder
management planning is an iterative process that is reviewed on a regular
basis by the project manager.
OUTPUTS
1. Stakeholder Management Plan
The stakeholder management plan is a component of the project
management plan.
It identifies the management strategies required to effectively engage
stakeholders.
It can be formal or informal ,highly detailed or broadly framed ,based on
the needs of the project.
In addition to the data gathered in the stakeholder register ,the stakeholder
management plan often provides:
Desired and current engagement levels of key stakeholders.
Scope and impact of change to stakeholders.
Identified interrelationships and potential overlap between
stakeholders.
Stakeholder communication requirements for the current project
phase.
Information to be distributed to stakeholders ,including language ,format ,
content ,level of detail.
Reason for the distribution of that information and the expected impact to
stakeholder engagement.
Time frame and frequency for the distribution of required information to
stakeholders ;and
Method for updating and refining the stakeholder management plan as the
project progresses develops.
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TOOLS & TECHNIQUES

The current engagement level of all stakeholders needs to be compared to
the planned engagement levels required for successful project completion.
Stakeholder engagement throughout the life cycle of the project is critical
to project success.
The engagement level of the stakeholders can be classified as follows:
o Unaware :Unaware of project and potential impacts.
o Resistant :Aware of project and potential impacts and resistant to
change.
o Neutral :Aware of project yet neither supportive nor resistant.
o Supportive :Aware of project and potential impacts and supportive to
change.
o Leading :Aware of project and potential impacts and actively engaged
in ensuring the project is a success.
The current engagement can be documented using Stakeholders
Engagement Assessment Matrix, where C indicates the current
engagement ,and D indicates the desired engagement
The project team needs to identify the desired engagement level for the
current phase of the project ,based on available information.
The example shows that stakeholder 3 is at the desired engagement level ,
while stakeholders 1 and 2 require further communications and additional
actions to move them to the desired level of engagement.
Figure (13- 4):Stakeholders Engagement Assessment Matrix
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13.3 Manage Stakeholder Engagement

It 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.
Inputs
Tools &Techniques
1. Stakeholder
management outputs
plan
2. Communications
management plan 1. Issue log
1. Communication 2. Change requests
3. Change log methods
4. Organizational 3. Project management
2. Interpersonal skills plan updates
process assets 3. Management skills 4. Project documents
updates
5. Organizational
process
assets updates
Figure (13- 5): Manage Stakeholder Engagement Process
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.
Manage Stakeholder Engagement involves activities such as:
o Engaging stakeholders at appropriate project stages to obtain or confirm
their continued commitment to the success of the project;
o Managing stakeholder expectations through negotiation and
communication ,ensuring project goals are achieved
o Addressing potential concerns that have not yet become issues and
anticipating future problems that may be raised by stakeholders.
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o Managing stakeholder engagement helps to increase the probability of

project success by ensuring that stakeholders clearly understand the
project goals ,objectives ,benefits ,and risks.
This enables them to be active supporters of the project and to help guide
activities and project decisions.
By anticipating peoples reactions to the project, proactive actions can be
taken to win support or minimize negative impacts.
The ability of stakeholders to influence the project is typically highest
during the initial stages and gets progressively lower as the project
progresses.
The project manager is responsible for engaging and managing the
various stakeholders in a project and may call upon the project sponsor to
assist as needed.
Active management of stakeholder involvement decreases the risk of the
project failing to meet its goals and objectives.
OUTPUTS
1. Issue log
Managing stakeholder engagement may result in the development of an
issue log.
This log is updated as new issues are identified and current issues are
resolved.
2. Change Requests
Managing stakeholder engagement may result in a change request to the
product or the project.
It may also include corrective or preventive actions to the project itself or
to the interaction with the impacted stakeholders ,as appropriate.
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INPUTS
1. Communications Management Plan
The communications management plan provides guidance and
information on managing stakeholder expectations.
The information used includes ,but is not limited to:
o Stakeholder communications requirements;
o Information to be communicated ,including language ,format ,content ,
and level of detail;
o Reason for distribution of information;
o Person or groups who will receive information ;and
o Escalation process.
2. Change Log
A change log is used to document changes that occur during a project.
These changes and their impact on the project in terms of time ,cost, and
risk are communicated to the appropriate stakeholders.
TOOLS & TECHNIQUES

1. Communication Methods
The methods of communication )described in Section.10.1 Plan
Communications Management( identified for each stakeholder in the
communications management plan are utilized during stakeholder
engagement management.
Based on the stakeholders communication requirements ,the project
manager decides how ,when ,and which of these communication methods
are to be used in the project.
The project manager applies interpersonal skills to manage stakeholders
expectations, for example:
o Building trust
o Resolving conflict,
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o Active listening ,and

o Overcoming resistance to change.
1. Management Skills
The project manager applies management skills to coordinate and
harmonize the group toward accomplishing the project objectives.
For example:
o Facilitate collaboration toward project objectives.
o Influence people to support the project.
o Negotiate agreements to satisfy the project needs.
o Modify organizational behavior to accept the project outcomes.
13.4 Control Stakeholder Engagement
Control Stakeholder Engagement is the process of monitoring overall
project stakeholder relationships and adjusting strategies and plans for
engaging stakeholders.
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.
Inputs
Tools &Techniques
outputs
1. Project
management plan
2. Issue log 1. Information
1. Work performance
3. Work performance management
information
data systems
2. Change requests
4. Project documents 2. Expert judgment
3. Project management
3. Meetings
plan updates
updates
5. Organizational
process
assets updates
Figure (13- 6):Control Stakeholder Engagement Process
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Stakeholder engagement activities are included in the stakeholder

management plan and are executed during the life cycle of the project .
Stakeholder engagement should be continuously controlled.
OUTPUTS
The work performance information is the performance data collected from
various controlling processes ,analyzed in context, and integrated based
Thus work performance data have been transformed into work
Work performance information is circulated through communication
processes. Examples of performance information are status of
deliverables ,implementation status for change requests ,and forecasted
estimates to complete
2. Organizational Process Assets Updates
The organizational process assets ,which may be updated include, but are
not limited to:
o Stakeholder notifications.
o Project reports.
o Project presentations.
o Project records :include correspondence, memos, meeting minutes, and
other documents describing the project.
o Feedback from stakeholders.
o Lessons learned documentation :includes the root cause analysis of
issues faced, reasoning behind the corrective action chosen, and other
types of lessons learned about stakeholder management. Lessons
learned are documented and distributed so that they become part of the
historical Database for both the project and the performing
organization .
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3. Work Performance Data

The work performance data are the primary observations and
measurements identified during activities being performed to carry out
the project work.
Various measurements on project activities and deliverables are collected
during various controlling processes.
Data are often viewed as the lowest level of abstraction from which
information is derived by other processes.
Examples of work performance data include reported percentage of work
completed ,technical performance measures ,start and finish dates of
schedule activities ,number of change requests ,number of defects ,actual
costs ,actual duration etc.
TOOLS & TECHNIQUES
An information management system provides a standard tool for the
project manager to capture ,store ,and distribute information to
stakeholders about the project cost ,schedule progress ,and performance.
It also allows the project manager to consolidate reports from several
systems and facilitate report distribution to the project stakeholders.
Examples of distribution formats may include table reporting,
Spreadsheet analysis and presentations.
Graphical capabilities can be used to create visual representations of
project performance information.
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13.5 Stakeholders Tips & Tricks

A key to your success as a project manager is how you
handle stakeholder relationships. Stakeholders must be
involved, and their involvement must be managed by
the project manager. That involvement may range from
minor to extensive, depending on the needs of the project and the performing
organization. Therefore, a list of how the stakeholders can be involved may
also be limited or extensive.
1. The project stakeholders' influence is at its maximum during the
start of the project and reduces gradually as the project progresses.
2. The Identify Stakeholders process is an initiating process.
However, it must be periodically revisited to ensure that the project's
Stakeholder Register is always up to date.
3. Memorize the Power/Interest Grid given in the PMBOK Guide
page 397. There will most certainly be questions that pertain to this grid
on the exam.
4. Remember that the first step in stakeholder conflict management is to
capture the issue in the project's issue log.
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14.PMI PROFESSIONALITY
14.1professional & Social Responsibility
Although there is not a chapter dedicated to professional and social
responsibility in the PMBOK Guide, this is an important part of a project
manager's job. A project manager who fails to uphold the standards of the
profession can have damaging impacts to the project and the organization,
as well as to the profession as a whole. If someone with a PMP
certification does not act professionally and ethically, it diminishes the
credibility of the certification and the practice of project management. For
this reason, concepts related to professional and social responsibility will
be tested throughout the exam. It is part of everything a project manager
does, from project initiating to closing.
To study this topic, read and make sure you understand the concepts
discussed in this chapter; do not waste your time memorizing the
information. Be honest with yourself about what you known and do not
know, and identify gaps in your knowledge. These gaps do not make you
an unethical project manager. We all have gaps we need to fill.
In addition, you should review and understand PMI's Code of Ethics and
Professional Conduct, available at PMI's website (www.pmi.org), since
many questions relate directly to that code. The Code of Ethics and
Professional
Conduct Breaks Professional and Social Responsibility Down into The
Following Categories:
Responsibility
Respect
Fairness
Honesty
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Do these four categories seem difficult? If asked if we are responsible,

respectful. Fair, and honest, we of course say yes. Rut have there been times
when you did not complete all your responsibilities? How many times have
you been disrespectful or unfair? Hopefully we do the right thing most of
the Lime, but none of us are perfect. This chapter will discuss some
important points about these categories. And it will also address two other
important topics not specifically covered in the Code of Ethics and
Professional Conduct that can help you on the exam: the ethical appellation
of project management, and PMI-isms in professional and social
responsibility.
The Ethical Application of Project Management Are you honest? Most
people are essentially honest, but we all have our moments. For example,
have you ever agreed to and started work on a project without being
reasonably sure the end date could be met? Is that honest? Is it ethical?
People often do this in their real world without ever labeling it as being
dishonest or unethical. For the exam, however, you need to understand that
part of professional and social responsibility is the ethical application of
project management in the real world.
Did you know it is unethical to provide a project schedule that you do not
believe to be accurate? It is also unethical to waste company resources
because you have not properly planned a project. And it is unethical to
manage a project without a project charter or a WBS. These are serious
issues in the real world, and they are serious for the exam.
So why is the lack of such project management activities unethical? Think
about the impact project management tools such as a charter or WBS have
on a project. Not having a project charter hurts your project and, at the
very least, causes increased costs and wasted time. Not having a WBS
means that some of the scope will likely be missed and, when it is
discovered later, that work will be costlier than if it had been included in
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the project from the beginning. Does this sound realistic? If not, you may
not fully understand the benefits of these tools and should review them
again in this book. To pass the exam, think about what you should be doing
in your real world, not what you are doing (if there is a discrepancy).
Project managers must understand the project management process in
order to do the right thing!
Some organizations do not give their project managers the authority
needed to get projects done. Imagine a situation where the project manager
only has the authority to write reports and transmit them to others. This
lack of authority means no one is directing the integration of the work. As
a result, the project will likely be late and people working on the project
will waste valuable time in rework. This is not an acceptable situation. In
order to uphold the standards of the project management profession,
project managers have a professional responsibility to obtain the authority
necessary to manage the project.
Now let's think about unrealistic project completion deadlines or
milestones. Have you ever been given an unrealistic schedule constraint?
Many project managers with unrealistic deadlines just implement the
project the best they can and wait to see what happens regarding the
timeline. Some will move forward with the project and force resources to
make the deadline by working overtime. This is not an ethical solution to
the problem for several reasons: the more overtime that team members
engage in, the less productive they will be and the lower the quality of
their work. This impact to quality will mean higher costs, diminished
stakeholder engagement, more rework, and extra time. Does this scenario
meet the expectations of professional and social responsibility for our
projects?
Professional and social responsibility requires project managers to handle
unrealistic schedule problems upfront.
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This may mean saying, ''Assign the project to someone else!" or "You
have requested that the project be completed within six months. Our
analysis makes us very certain that we can meet that due date only if we
adjust the scope, cost, or quality on this project. If we cannot make any
changes, the project will be completed in eight months:'
Professional and social responsibility may also mean saying! Am sorry
you do not want to support my efforts in planning the pro t and want me
to start producing work right away. As part of my PMP certification. I am
ethically bound to do project management correctly for the best interests
of the protect and the company this means must have a project charter
and at least a high. Level work breakdown structure: Project managers
are required to do the right thing and stand up for the right process!
Did you notice the attitude illustrated in the previous statements? Do you
have such an attitude? Being assertive and in control as a project manager
is required. For the exam, make sure you understand this assertive,
proactive attitude and what it means for how a project manager should act
and what a project.
Manager should and should not be doing. Attitude is extremely important,
and the expectation (or project managers to be assertive and in control
applies to project managers in every country and culture.
14.2 PMI-Isms in Professional and Social
Responsibility
We discussed PMI-isms and their impact on the exam in the first chapter of
this book. You need to be aware of P MI-isms related to professional and
social responsibility as well. There are often questions on the exam that talk
about the relationship of a PMP certification holder to PMI and how that
person should promote PMI within his or her organization. The exam can
also include questions that assume you are involved with PMI as a chapter
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member or chapter officer. These types of questions are relatively easy if

you maintain the PMI focus described in the following points:
You will not get involved with PMI to promote your own business.
You have a duty of loyalty to PMI. When acting on behalf of a PMI
chapter, you will keep the best interest of PMI in mind, not your own best
interest.
When contracting for services for the chapter, you will provide equal
access for all to submit proposals and not keep the work for your own
company or your friends.
You will not let anyone cheat on the application for the PMP exam.
You will not let anyone copy PMP exam prep materials or perform other
illegal behavior.
You will not disclose questions on the PMP exam.
You will promote PMI and the PMP exam within your organization.
14.3 Categories of Professional and Social
Responsibility
Now that we've discussed the concepts of the ethical application of project
management and PMI-isms in professional and social responsibility, let's
look at the four categories in PMI's Code of Ethics and Professional
Conduct. Read the following list, and make a note in the right-hand
column of any areas where you have had problems in the past. The topics
you have had difficulty with are the ones you should think about a little
more. Remember that ethics is a messy topic and no one is perfect. This
simple checklist will help shorten your study time and keep you more
focused on what you need to know for the exam.
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Responsibility - Ownership of Decisions Areas Where I Have Had A Problem

& Actions
Make decisions based on the best
interests of the company and the team, as
well as society, rather than your own best
interest.
Only accept assignments you are
qualified to Complete.
If you are given a project to manage that
is Beyond your qualifications or
experience, make sure the sponsor knows
of any gaps in your Qualifications before
accepting the assignment.
Do what you say you will do-including
Completing projects on time.
Acknowledge your own errors.
Respect confidentiality requirements and
protect proprietary information-including
obeying Copyright laws.
Uphold laws.
If you witness or are aware of unethical
or even potentially unethical behavior,
report it to Management and to those the
behavior affects.
Report violations of PMI's Code of Ethics
and Professional Conduct when you have
factual. Proof of the violation. If you
know someone has been retaliated against
because he or she reported such
violations, pursue disciplinary action.
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Respect - The Appropriate Treatment of Areas Where I Have Had a Problem

People & Resources
Maintain an attitude of mutual
cooperation.
Respect cultural differences.
Do not gossip or say things that could
damage another person's reputation.
Engage in good faith negotiations.
Respect others.
Be direct in dealing with conflict.
Do not use your power or position to
influence others for your own benefit.
Fairness - Being Objective And Making Areas Where I Have Had A Problem
Impartial Decisions
Act impartially without favoritism,
nepotism, bribery, or prejudice, and
frequently stop to Reexamine your actions
to make sure you are being impartial.
Continuously look for conflicts of interest
and disclose them.
Do not discriminate against others.
honor your duty of loyalty to those
companies & organizations with whom
you are affiliated
Do not use your position for personal or
business gain.
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Honesty - Understanding The Truth And Areas Where I Have Had A Problem
Taking Action Based On Truth
Try to understand the truth.
Be truthful in all communications,
including
Making sure the information you are
using or sending out is truthful.
Work to create an environment where
others tell the truth.
Do not deceive others.
Now let's take a more detailed look at some of the points in each category.
14.4 Responsibility-Ownership of Decisions and
Actions
Make decisions based on the best interests of the company, rather
than your own best Interest.
This one sounds simple, doesn't it? Watch out; if the exams were to pose
a direct question on this topic, everyone would get it right, but most
questions on the exam are not so direct. For example, what about an
instance where you discover the project is suffering because you have
not created a project management plan, and you feel that if you tell
management about the problem, you will look bad or lose your job? In
such situations, the correct answer is to deal with the issue hurting the
project and put the project's needs before your own. This is an easy rule
to remember, but it can be difficult to apply.
Only accept assignments you are qualified to complete.
Can you imagine saying to your boss, i cannot take that assignment,
because it requires the control of cost on the project and I am not
qualified to manage costs? Do you think your boss would accept that?
Probably not. It is smart to make sure you can handle a job before it is
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assigned to you, but there are times when the expectations presented on
the exam seem a lot more complex in the real world.
Protect proprietary information.
When was the last time you made a copy of an article or a music CD and
gave that copy to others? Did you know that such materials are
considered proprietary items and that these actions could be violating
copyright laws? 1-low about taking excerpts from this book, or any book,
and putting them in a company report or in the material used for a training
class without written permission form the copyright owner? These
actions are also likely violations of copyright laws, as well as vic4ations
of PM ls Code of Ethics and Professional Conduct. This is an area many
people have misconceptions about and it is a concept that is frequently
tested on the exam, so well explain it in more detail. Make sure you
understand the concept of protecting proprietary information.
International copyright laws give the owner of the copyright the
exclusive rights to make copies of the work and to prepare derivative
works based on the work. It is illegal infringe to upon these rights-that
is, to use the copyrighted work in certain ways without the owner's
permission. For example, without the copyright owner's permission, no
one may copy or reproduce any part of a book, create new material based
on or incorporating any part of a book, or sell or distribute copies of a
book except in limited instances covered by the Fair Use Doctrine. A
copyright notice is not required on the document for something to be
considered copyrighted.
The fact that copyright laws are international means that people can be
prosecuted for copying works by authors outside their country. Because
of recent business and legal events in many countries, the exam tests
whether you know what is ethical regarding copyrighted materials.
Assume all documents, software, applications, articles, books, training
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materials, and every other work created by someone else is considered

proprietary information and copyrighted. The general rule is to not copy
without written permission from the author.
When you are working with copyrighted materials, you should be
mindful of the following issues:
o If you need another copy of software, does the software license give
you permission to simply make a copy, or does it require you to
purchase another copy?
o If you are a contractor asked to create a copyrightable work, who owns
the copyright-you or the company that hired you to create it?
o If you are an employee and create a work, do you own the copyright
or does your employer?
These are some basic issues confronting project managers who deal with
copyrighted works. Before taking any action that could result in
copyright infringement, a project manager should ask questions to make
sure she or he understands the situation, and possibly seek legal counsel
or approval.
Report unethical behavior and violations.
What would you do if someone in your company told you that he or she
does not follow a certain company procedure? The correct answer is to
report the person to those responsible for the policy.
Do you agree with this answer? Many people find questions like this
annoying or frustrating, so let's look at why the ethical choice is to report
the violation. You are probably not the one who created the policy and
are therefore not the best person to explain the reasons behind the policy.
If you attempt to explain it to the person, you could misrepresent the
policy and cost the company time and money. It is best to leave such
things to those responsible for them. Does it seem more logical now?
356
Questions on the exam may require the project manager to immediately

report violations of policies, laws, or ethics to a manager or supervisor.
The easier types of questions on this topic involve someone violating
PMIs Code of Ethics and Professional Conduct or cheating on their
application to become a PMP certificate holder. Review questions related
to reporting unethical behavior carefully before answering them. Also
know that youre expected to help create an environment in which protect
team members can report ethics violations without fear of repercussion.
14.5 Respect The Appropriate Treatment of
People and Resources
Maintain an attitude of mutual cooperation. Many people have issues
they are not even aware of regarding respect and professional
responsibility. For example, Think about your interactions with resource
managers on a project. Are you in the habit of going to then and asking
for the immediate assignment of the resources you need for your project?
Ibis action is contrary to the concepts of respect and maintaining an
attitude of mutual cooperation
Put yourself in the shoes of a resource manager for a moment. Resource
managers are usually compensated for how well they do their own work;
not how well support they projects. They have their own needs and
responsibilities, yet many project managers treat resource managers as if
they exist only to serve the project.
A project manager has an ethical responsibility to provide resource
managers with advance notice of what resources the project needs and
the impact to the project if those resources are not available. The project
manager must also provide a realistic schedule, so the resource managers
know when their resources will be used on the project. That information
enables the resource managers to better manage project work with their
other work.
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This scenario is an example of both mutual cooperation and the ethical

application of project management in the real world. For exam questions
related to this concept, you will need to know the proper use of project
management tools, techniques, and practices.
Now let's look at the team. Do you consider the reputation of each of
your team members to be in your hands? How well the project goes will
reflect on their careers. If a team member believes the project will be
unsuccessful, the individual will remove him- or herself from as much
work on the project as possible so it does not tarnish his or her reputation.
The project manager has a duty to team members that includes making
sure there is a realistic schedule so they know when they really need to
complete work on the project, providing a reward system, asking their
opinions, asking them to contribute to the development of the project
management plan, and providing formal and informal training as needed
for them to effectively work on the project. Team members also need to
help control the project. Do you truly treat them as members of your
team, or do you treat them as servants? This is another example of the
ethical application of project management in the real world.
How you choose to communicate with others also falls under this topic.
Would your team members or stakeholders be surprised if you asked
them what the best way is to communicate with them about various
topics? Should you call them, e-mail them, or send a letter? Such actions
should be commonplace. Not only does asking these types of questions
show respect for the other person, but it also helps you effectively plan
communications.
Respect cultural differences.
Another part of respect as it relates to professional and social
responsibility has to do with cultural differences. Cultural differences
can mean differences in language, cultural values, nonverbal actions, and
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cultural practices. If you do not plan how to handle these differences and
do not monitor and control their impacts, they can easily impede the
project.
One major cause of cultural differences is ethnocentrism. This is the
tendency for people to look at the world primarily from the perspective
of their own culture. So individuals take the viewpoint that their own
group is the center of everything.
But cultural differences do not only occur between people from different
countries; they may also occur between individuals from the same
country. People from different regions or areas of a country may have
cultural differences. Even organizations can have cultural differences
around things like roles and responsibilities, divisions or work areas, and
expectations of employees.
Project managers need to take actions to diminish the negative
impacts and enhance the positive impacts of cultural differences
such actions include:
o Embrace diversity. Cultural differences can make a project more fun.
o Prevent culture shock, the disorientation that occurs when you find
yourself working with other cultures in a different environment. Training
and advance research about the different cultures will help prevent
culture shock.
o Expect cultural differences to surface on the project. Have a plan in place
to help the team and project grow and move forward during these times.
This might involve educating the team about inclusion and respect. And
giving them a process so follow to get help or answers if necessary.
o Use dear communication to the appropriate people and in the right
format, as outlined in the Communications Management chapter. To
prevent cultural differences from becoming a problem.
359
o Uncover cultural differences when identifying stakeholders, including

differences in work ethics and practices.
o Ask for clarification whenever a cultural difference arises.
o Discuss the topic of cultural differences at team meetings as needed.
o Follow practices in use in other countries when appropriate, as long as
they do not violate laws.
Engage in good faith negotiations.
What about engaging in good faith negotiations? Many people skip over
this section because they believe it is an easy concept. But think about the
real world. Have you seen someone negotiating without ever intending to
enter a contract or negotiating a provision in a contract they have no
intention of honoring? What about someone presenting information as a
fact when the person knows at the time the information is untrue? How
about someone trying to strip out all of a seller's profit during contract
negotiations? These are examples of not negotiating in good faith.
Be direct in dealing with conflict.
The topic of conflict is discussed in the Human Resource Management
chapter, but it is also part of professional and social responsibility. In
dealing with conflicts, it is inappropriate and unproductive to complain or
talk about the conflict or about others involved in the conflict behind their
backs. Do you see this happening in the real world? Although such
behavior is very common, a project manager has a professional
responsibility to deal directly and openly with the other party and say to
the person, "What you have done has caused a problem. Can we discuss
it?" This can be easier said than done. Imagine that the person causing the
problem is powerful or uninterested, or that the person is your boss.
Regardless of the situation, questions on the exam expect you to address
the conflict directly and openly.
360
Do not use your power or position to influence others for your own
benefit.
Have you ever said to yourself, "How do I get this person to do what I
want?" This could be a violation of professional and social responsibility
if you are trying to influence others to do what you want, rather than what
is right or most appropriate in a given situation. Project managers cannot
use their power or position to pressure others for their own benefit.
14.6 Fairness-Being Objective and Making
Impartial Decisions
Act impartially without bribery. In many countries, bribery is punishable
as a crime and can result in jail time. So what is bribery? Is it bribery if
someone asks you to pay a fee in order to bring machinery through a city?
How about if someone requests a payment for police protection?
In many countries, fees for services such as protection and bringing
machinery through a town, or fees for issuing permits and other official
documents, are allowable and are not considered bribes. Payments to
convince a government official to select your company for a project are
bribes, however. Many companies have policies or codes of business
conduct to help prevent bribes or other illegal activity
What about other payments? Would it be appropriate to accept a free
automobile or a free weekend holiday for you and your family? These
gifts are probably not allowable. Thomas. Donaldson, in The Ethics of
international Business (Oxford University Press, 1991), suggests a
practice is permissible if you can answer No to both of the following
questions:
1. Is it permissible Co conduct business successfully in the host country
without undertaking the practice?
2. Is the practice a clear violation of a fundamental international right?
Fundamental rights include the right to food, a fair trial,
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nondiscrimination treatment, minimal education, physical safety, and

freedom of speech.
There will be few questions on this area on the exam. But if you feel
you need more help. See the exercise later in this chapter.
Continuously Look for Conflicts of Interest and Disclose Them.
A conflict of interest is a situation that requires a person to make a
decision or take action that could help one person or organization while
hurting another person or organization to which they have a duty of
loyalty. For example, "If I help my friend, I hurt my company;' or "If I
help this organization, I hurt my own company:' Because the exam does
not always ask questions that are direct and clear, you might have a
question with entire paragraphs devoted to describing the details of a
situation, when all you really need to understand is that there is a conflict
of interest. So what do you do when there is a conflict of interest? You
should disclose it to those affected and let them decide how to proceed.
If something appears to be a conflict of interest, it should be handled as
if it actually is a conflict of interest.
What does it mean to "continuously look for conflicts of interest"? This
practice involves more effort than simply noticing conflicts of interest
when they arise. It involves frequently sitting down and reviewing the
project for areas that have the potential to create such conflicts, and
identifying how to avert or reduce the number of conflicts. You need to
be proactive in this effort.
Do not discriminate against others.
Discrimination seems to be all around us. People discriminate against
those from a different economic background (rich and poor), against
those who are from a different area of the country or world, and against
those who are a different race, religion, gender, etc. Professional and
social responsibility requires us to treat others fairly and not discriminate.
362
In some cultures, this may be hard, as certain discriminatory practices

are the cultural norm and are commonly accepted. Make sure you
understand how project management should be done, rather than what is
common in your real world.
Do not use your position for personal or business gain.
Most people realize that someone in government should not use his or
her position to obtain wealth. but what about people who join
organizations (such as PMI) not to help promote the organization's
mission, but to gain business from other members of the organization? It
is a violation of professional and social responsibility to use your position
for personal interest or business gain.
14.7 Honesty Understanding the Truth and
Taking Action Based on Truth
Try to understand the truth.
The truth is not always easy to find, especially when you are running
around managing projects. Someone may tell you something that they
perceive to be the truth, but there might be more to what is really going
on. We often simply accept what people tell us and do not spend time
seeking the whole truth. When you think of the many activities on a
project and the different people involved, you can see how important it
is to accurately understand a situation.
Be truthful in all communications, and create an environment where
others tell the truth.
Do you ever hide the fact that a project is in trouble? Do you say that you
can accomplish some piece of work or a whole project when you are not
really sure if you can? If so, you might have some issues with truthful
communication. Lf we stretch the truth or outright lie, our team members
will start to do it, too, and we will not have fostered an environment
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where others other the truth. As a result, the project and those involved
in it, including the project manager will suffer
If everyone starts being untruthful,
how will you know what information you can trust? Imagine you provide
a schedule to the team that you know to be unreasonable or unrealistic and
do riot inform the team. They quickly realize the schedule is unreasonable
and, as a result, do not cooperate with you or tell you what is really going
on. When you take the exam, you need to understand the consequences of
such actions. The consequences of being untruthful are less accurate
information from others and poor cooperation.
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15.PMP EXAM TIPS

15.1 The PMP Exam Memorization
Since the exam will test your ability to apply knowledge, such
memorization would prove to be a waste of your valuable time, and it does
not benefit you in the real world. Know and understand project
management and the actions that occur in each of the knowledge area
processes, you can use logic to identify most of the key inputs and outputs
that could be on the exam, rather than relying on memorization. For
example, if you know what a WBS is, you should understand that you
need information about scope and requirements to create the WBS.
Therefore, the project scope statement and requirements documentation
(both of which are created prior to the WBS in the planning process) are
major inputs. If you understand the integrated change control process, you
should know that it results in updates to project documents and
components of the project management plan affected by approved
changes. The following exercises will give you some additional help with
inputs and outputs.
Table (15- 1):Brief About PMBOK 47 Processes
What What
knowledge knowledge
Project
Knowledge Process What does area area
management
area group it mean? process process
process
comes comes
before?
after?
Define Time Planning Whatever Plan Sequence
Activities management needs to be Schedule Activities
done to Management
create an
activity list
from each
work
package
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Sequence Time Planning Whatever Define Estimate

Activities management needs to be Activities Activity
done to Resources
create a
network
diagram
Plan Procurement Planning Whatever None Conduct
Procurement management needs to be Procurements
Management done to
create the
procurement
statements of
work,
procurement
documents,
& the
procurement
management
plan
Develop Integration Planning Whatever Develop Direct and
Project management needs to be Project Manage
Management done to Charter Project Work
Plan create a
project
management
plan that is
bought into,
approved,
realistic &
formal
Collect Scope Planning Whatever Plan Scope Define Scope
Requirements management needs to be Management
done to
finalize and
document
detailed
requirements
& determine
how they
will be
managed
Direct & Integration Executing Producing Develop Monitor and
Manage management work project control project
Project Work according to management work
the project plan
management
plan
Develop Time Planning Whatever Estimate Control
Schedule management needs to the activity schedule
be done to durations
create about
into,
approved,
realistic
&schedule
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and schedule
baseline
Perform Risk Planning Whatever Identify risks Perform
Qualitative management needs to be Quantitative
Risk Analysis done to Risk Analysis
analyze the (don't forget,
probability however, that
& impact of some projects
potential may skip this
risks to process & go
determine straight to Plan
which risks Risk
might Responses)
warrant a
response or
further
analysis
Define Scope Scope Planning Whatever Collect Create WBS
management needs to be requirements
done to
create the
project scope
statement
Validate Scope Monitoring Meeting Create WBS Control Scope
Scope management & with the
controlling customer to
gain
formal
acceptance
of interim
deliverables
Identify Stakeholder Initiating Identifying None Plan
Stakeholders management & Stakeholder
documenting Management
information
about the
stakeholders
on the
project
Conduct Procurement Executing Whatever Plan Control
Procurements management needs to be Procurement Procurements
done to Management
select a
seller based
on the seller
responses
and obtain a
signed
contract
Monitor & Integration Monitoring Whatever Direct and Perform
Control management & needs to be manage Integrated
Project Work controlling done to project work change control
measure
performance
against the
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project
management
plan
&request
changes
Perform Integration Monitoring Whatever Monitor and Close project
Integrated management & needs to the control or phase
Change controlling be done to project work
Control create about
the project
constraints
and approve
or reject
change
requests
15.2 Formulas to Know for The Exam

Although we do not suggest you memorize a lot of information to prepare
for the exam, the following formulas are some of the items you do need to
memorize, as well as understand. There will not be a lot of questions
requiring you to use these formulas, but it will be helpful to be able to
apply these at a moment's notice. If you are not comfortable with math,
you should be happy to hear that you can know none of these formulas
and still pass the exam! The most important formulas are those relating to
earned value, as earned value is a key component of monitoring and
controlling.
In the Cost Management chapter, we also highlighted some reverse
formulas to help you calculate earned value (EV). With so many other
formulas listed here, you may not v1ant to memorize these (particularly if
you understand the process for reversing the formulas), but they can be
useful. :
EV = CV + AC,
EV = SV + PV,
EV = CPI x AC, and
EV = SPI x PV.
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Table (15- 2):PMP Exam Formulas
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15.3 Before You Take the Exam

1. Many people fail the exam because their preparation was faulty. You can
avoid that mistake. Read the following tips slowly, and honestly assess
how each item applies to you.
2. Know the material thoroughly, but do not approach the exam assuming it
tests the memorization of facts. The exam tests knowledge, application,
and analysis! You must understand how to use the concepts and processes
in the real world, and how they work in combination with each other in
the context of a large project.
3. Have real-world experience using all the major project management tools
and techniques. If you do not have this experience now, try to get it. If
you cannot get this experience before you take the exam, make sure you
can visualize how the tools and processes would be used on real projects.
4. This visualization will help you see the potential challenges of using
project management tools and techniques in the real world and help you
prepare for the situational questions on the exam.
5. As noted throughout this book, make sure you are thinking in terms of
large projects when studying for and taking the actual exam. This will
help you remember the importance of processes, tools, and techniques
that you may not use in your real-world project management.
6. Read the PMBOK Guide.
7. Understand the areas PMI emphasizes (PMI-isms, explained in chapter 1
and throughout this book).
8. Be familiar with the types of questions you can expect on the exam, as
explained in chapter l, but do not be alarmed if you see new types of
questions on the exam.
9. Be prepared to see ambiguous and wordy questions on the exam that
might be multiple paragraphs long. Practice interpreting these types of
questions.
370
10.If you have PM Fastback, practice picking an answer from what appears
to be two, three, or even four "right" answers.
11.Decide in advance what notes you will write down when you are given
scratch paper at the actual exam. You can use it as a "download sheet" for
formulas or gaps in your project management knowledge. Practice
creating this download sheet before taking the exam. (See the next section
for more information.)
12.Deal with your stress BEFORE you take the exam. There are free tips for
nervous test takers on our website, www.rmcproject.com. In addition, if
you are a nervous test taker, using PM
13.Fastback can give you an opportunity to practice stress control during
the exam simulation.
14.Plan and use your strategy for taking the exam. This may mean, "I will
take a 10-minute break after every 50 questions because I get tired
quickly;' or "I will answer all the questions as quickly as possible and then
take a break and review my answers:
15.Expect that there will be questions you cannot answer or even understand.
This happens to everyone. Be prepared so you do not get annoyed or,
worse yet, doubt your abilities during the exam.
16.Visit the exam site before your exam date to determine how long it will
take to get there and to see what the testing room looks like. This is
particularly helpful if you are a nervous test taker.
17.Do not expect the exam site to be quiet. A student from one of RM C's
PMP Exam prep courses had to deal with a band playing outside the
testing center for three hours. Others have had someone taking an exam
that required intensive typing, and thus more noise, right next to them.
Many testing sites will have earplugs or headphones available.
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18.Do not over study. Getting completely comfortable with all the material
in this book is just not possible. It is not worth is a time and will not help
you on the exam.
19.Take the night off before the exam to do and a little extra sleep. DO NOT
STUDY! You will need time to process all you have learned so you can
remember it when you take the exam.
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15.4 Tricks for Taking and Passing

The PMP Exam
We have talked about what you should do and know
before you take the exam. Now what about on the big
day? The following are some tips for taking-and
passing-the exam.
1. You must bring your authorization letter or e-mail from PMI to the test
site, as well as two forms of ID with exactly the same name you entered
on the exam application.
2. Make sure you are comfortable during the exam. Wear layered clothing
so you can remove outer layers if you become too warm. (Note, however,
that some testing centers may require you to store any layers of clothing
removed during the exam outside the exam room.)
3. Bring snacks! Bring lunch! You will not be able to take snacks into the
exam room, but have them accessible outside the exam room in case you
get hungry. You do not need the distraction of hunger pains when taking
the exam.
4. You will be given scratch paper and pencils (and possibly earplugs or
headphones). The type, size, and amount of paper will vary by test center,
and some locations may instead provide a marker and erasable board or
laminated paper. NOTE: The testing center will require you to exchange
your used paper if you need more during the exam.
5. When you are given scratch paper, create your "download sheet" by
writing down anything you are having trouble remembering. This will
free up your mind to handle questions once the information you are
concerned about is written down.
6. You'll have the chance to do a 15-minute computer tutorial, if your exam
is given on computer, to become familiar with the computer-based test
functionality.
373
7. Some test sites provide physical calculators. At other locations, the

calculators are online or on the computer and appear with every question
that requires a calculation.
8. When you take the exam, you will see one question on the screen at a
time. You can answer a question, mark it to return to later, or skip it. You
will be able to move back and forth through questions during the exam.
9. The exam does not adapt to your answers. This means 200 questions are
selected when your exam starts, and those 200 do not change.
10.Use deep-breathing techniques to help you relax and focus. This is
particularly helpful if you are very nervous before or during the exam and
when you notice yourself reading the same question two or three times.
Breathing techniques Can be as simple as breathing deeply five times, to
provide more oxygen to your brain.
11.Smile when taking the exam. Smiling relives stress and makes you feel
more confident.
12.Use all the exam time. Do not leave early unless you have reviewed every
question you marked for review or skipped.
13.Remember your own unique test- taking quirks (from your previous exam
experiences or from taking the PM FAS Track simulation) and how you
plan to deal with them while taking the exam.
14.Control the exam; do not let it control you. How would you feel if you
read the first question and had no idea of the answer? The second
question? And the third question? This can happen because you are just
not ready to answer questions and your level of stress is not allowing you
to think. So what do you do? If you do not immediately know the answer
to a question, use the mark for review function and come back to it later.
This will mean your first pass through the exam will generally be quick.
15.Control your frustration and maintain focus on each you might very well
dislike or disagree with some of the questions on this exam. You might
374
also be surprised at how many questions you mark for review. Make sure
you stay focused on the current question. If you are still thinking about
question 20 when you reach question 120, there will have been 100
questions that you have not looked at closely enough.
16.Answer each question from PMI's perspective, not the perspective you
have acquired from your real-world or life experience. Many people who
failed the exam tried to answer questions from their real-world
perspective. Since these people did not use all aspects of project
management in their real world, they got many questions wrong on the
exam. If approaching it from PMI's perspective does not give you an
answer, rely on your training. If this still does not help you answer the
question, only then should you rely on your real-world experience.
17.First identify the actual question in the words provided (it is often the last
sentence), and then read the rest of the text. Note the topics discussed in
the question and the descriptors (e.g., "except;' "includes:' "not an
example of"). This should help you understand what the question is
asking and reduce the need to reread questions. Determine what your
answer should be, and then look at the answers shown. If you see the
answer you guessed, it is likely the correct choice. If the answer isn't
there, don't panic and don't try to force one of the answers to fit based on
your preconceived response. Instead, carefully consider each answer
choice listed and choose the best one out of the choices given.
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ANNEXES
Acceleration Appreciation
Accommodate Arbiter
Accompanies Arbitration
Accordance Architect
Accountability Arguing
Accuracy Array
Acknowledgement Articulation
Acquired Artifact
Acquisition Ascertaining
Adaptation Aspects
Adequately Assemble
Adhere Associated
Adjustment Attain
Administrative Attempting
Adopt Attractiveness
Advance Attrition
Advertising Auction
Agreement Audience
Aimed Averse
Alliances Bargaining
Allowance Based On
Ambiguous Basis
Ancillary Begging
Announced Behalf
Annual Blended
Anticipating Breach
Applicable Bribe
Apportioned Broader
Appraisal Broadly
Appraising Buffer
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Campaign )... ( Conceptual

Candidate Concern
Catastrophic Concise
Cease Conclude
Charged Conclusion
Chronic Concurrently
Circuit Condition
Circumstances Conduct
Claim Confident
Clause Confidentiality
Clustered Conformance
Collusion Conferring
Combination Configuration
Combined Confronting
Commencement Considerable
Committed Considerations
Commodity Consist
Compatible Consistency
Compensation Consistent
Competition Consensus
Complain Consequences
Compliance Constituent ()
Complicated Consolidated
Component Consolidation
Composite ) ( Constraint
Comprehensive Consumable
Compressing Consumer
Comprise Context
Computation / Continuously
Concentrate Continuing
377
Continuum Deteriorating
Contribute Determine
Converge Determined
Conversant Deviate
Dilemma Conversely
Converted Diligent
Convey Dimension
Convince Diminish
Correctness Disaster
Correspondence Disband
Creativity Disciplines
Credibility Discovered
Crucial Discrepancies
Crunch Discrete
Cumulative Disposition
Currency Dispute
Customs Dissemination
Declines Distinct
Decomposed Distinguished
Dedicated Diversity
Deemed Divulge
Default Drive
Defect Drop
Deficiencies Due
Depreciation Edge
Derived Eliminate
Descending Embodied
Desirable Emphasis
Desired Encompass
Destroy Encourage
378
Extension
EndorsedP56P39M35:P54MM35:O56
Energizing Extensive
Entirety Fabrication
Equivalent Fault
Erect Features
Escalates Finite
Escalation Fired
Essential Firm
Esteem Flooded
Ethical Fluctuating
Ethnic Foundation
Evident Frustration
Evolution Fulfill
Evolve Fully Aware
Exceed Fundraising
Excessive Gained
Excited Generate
Exciting Gradual
Excluded Hamper
Exclusion Handling
Excuse Handoff
Exert Hazard
Exist Held Up
Existence Hence
Expenditure Hierarchy
Expense Hindered
Experiment Hired
Explicitly Hostility
Expressed Hurricane
Extended Ideal
379
Idle Intended
Identical Intentionally
Illustrate Interestingly
Impede Interpretations
Imperatives Interpreting interprets
Implementers Interrogatories
Implicit Intuition
Implied Invariably
Imposed Inventory
Impressed Iterate
Indeed Iterative
Incapable Jeopardized
Incident Juggling
Inclusion Justification
Lasting
Incremental Amounts
Indent Layout
Indicates Legend : :
Indicator Likelihood
Inevitable Literature
Inflation Lump Sum
Influencing Magnitude
Infraction Maintaining
Inherent Mandate
Initiatives Mandatory
Inquiry Manner
Insists Manual
Inspection Marginal
Instance Maturity
Instead Means
Instituted Mentoring
380
Merge Particularly
Merit Partnering
Minor Patent
Morale Pattern
Mutually Peak
Narrative Perception
Narrow Period
Necessity Periodically
Permits ( ) Not Uncommon
Null Perquisites
Obligating Personnel
Obstacle Persuaded
Obtain Perspective
Obvious Pertain
Occasional Pitfalls
Occur Plagued
Official Plot
Offset Postpone
Optimize Precision
Optimum Predict
Order Predictable
Oriented Prescribed
Overlap Pretending
Overrun Previous
Oversee Prior
Overwhelmed Promote
Parallel Phenomenon
Partially Phrased
Participate Placed
Participation Plant
381
Pool Regardless ( ) /
Portion Regulation
Possessed Reimbursed
Precede Relatively
Preferred Relevant
prepare reliable
Presence Reliability
Prioritization Reluctant
proceed Repository
Proper Reputation
Proprietary Residual
Resistance Provision
Provisions Resume
Purchase retain
pursue Revenues
purview rumors
Quantifiable Salvage
Quantifies sanctioning
rapidly Satisfy
Rationalizing scatter
Readily Schematic
Reap Scrutiny
Recall Sequentially
Redeployment series
Reference severe
Referred to sharpens
Refinement Shortages ( )
Refinery Significant
Reflect simultaneously
Regarding Situation
382
Slip Tenet
slippage Terminate
Sophistication Terms
Specifications Thresholds
Spending Tide
Stable Tolerances
Standpoint Toxic
Stated Trade
Steady Tradeoffs
Strenuously Treat
strive Typical
Subjective Ultimate
Subset Undue
Subsidiary Unification
Substance Usefulness
Substantially Utility
substantiating Utilized
Sudden Valid
Sufficient Validated ( )
Summing Validity
Supply chain Vandalism
Surroundings Variations
swamped Variety
Symbol Vary
Symptoms Vastly
Synergisms Verbally
Synopsis Vertically
Systematically Violation
Tangible Virtually ( )
Tendency Void
383
REFERENCES
First: Researches
1. Al-JARALLAH, Mohammed I. (1983)."Construction Industry in
Saudi Arabia". Proc. ASCE, Jl. of the Construction Div., Vol. 109, C04,
Dec, pp. 355 -368.
2. ARCHIBALD, Russell D. (1987). Key Milestones in the

EarlyPERT/CPM/PDM Days. Project Management Journal, Vol.
XVIII, No 3, September, pp 29-31.
3. ATKINSON R. (1999). Project Management, Cost, Time and Quality,

Two Best Guesses and a Phenomenon, Its Time to Accept Other
Success Criteria, International Journal of Project Management,
17(6), p337-42.
4. BECHTEL, Stephen. (1989). "Project Management: Yesterday,

Today, and Tomorrow". PMNET work, Vol. Ill, No 1, January, pp 6-8.
5. BHANDRAI, Narindar. (1978). Interaction of Information Flow with CM

System. Proc. ASCE Constr. Divn. Vol. 106, COl, pp. 261-268.
6. CLELAND, David. (1991). "The Age of Project Management". Project

Management Journal, Vol. XXII, No 1, March, pp 19-24.
7. DE Wit A. (1988). Measurement of Project Success, International

Journal of Project Management, Vol. 6, No.3, pp 164-170.
8. FAZAR, Willard (1962). "The Origins of PERT". The

Controller, December, pp 598-621. As quoted in "The Origins of
CPM: A Personal History", by James E Kelley & Morgan R Walker,
PMNET work, Vol. Ill, No 2, February, 1989, pp 7-22.
9. GUEVARA, Jose, M. & Boyer, T. (1981). Communication Problems

within Construction. Proc ASCE, Const. Div. Vol. 107, C04, pp. 551-
557.
10.HUTCHESON J.M. (1981) Project Management across Cultural Barriers.

Proceedings of the CIB W-65, Third Symposium on Organization and
Management of Construction, Dublin, 6-8 July 81, pp. c. 1.52 - C.167.ll
384
11.JOSLER, c. and J. Burger. (2005) Project Management Methodology in

HRM. CupaHR Journal, 56(2): p. 25-30.
12. KELLEY, James & Morgan R. (1989). "The Origins of CPM: A
Personal History". PMNET work, Vol. Ill, No 2, February, pp 7-22.
13.KWAK, H. & Anbari, F. (2009). Analyzing project management research:

Perspectives from top management journals. International Journal of
Project Management, 27(5), 435-446.
14.SNYDER, James R. (1987). "Modern Project Management: How Did

We Get Here - Where Do We Go?" Project Management Journal, Vol.
XVIII, No 1, March, pp 28-29.
15.WALTON, h. (1984). The Project Manager. International Journal of

Project Management, Vol. 2, No. I, Feb., pp. 31-35.
Second: Books
1. APM, (2000). Project management body of knowledge, in Association
for Project Management, M. Dixon, Editor.
2. BURKE Rory (1993). Project Management Planning and

Control. John Weley & Sons New York, Second edition.
3. CETRO s. & Peter. J. (1995). The Strategic Management

Process, USA: South Western.
4. CHARVAT, Jason. (2003). Project management methodologies:

selecting, implementing and supporting methodologies and processes
for projects. John Wiley & Sons.
5. CLELAND, David I & William R KING. (1968). "Systems Analysis and

Project Management". New York, McGraw-Hill.
6. IRELAND, Lewis R. (1991). Quality Management for Projects and

Programs. Upper Darby, PA; Project Management Institute.
7. KERZNER, Harold. (1989). Project Management, Third Edition, New

York: Van Nostrand Reinhold.
385
8. KERZNER, Harold. (1992). "Project Management: A Systems

Approach to Planning, Scheduling and Controlling". New York, Van
Nostrand Reinhold.
9. MORRIS, Peter. (1994). The Management of Projects. London,

Thomas Telford.
10.PRINCE2 (2005). Managing successful projects with PRINCE2. Fourth

ed. Office of Government Commerce, London: TSO.
11.PMBOK (2011). A guide to the Project Management Body of

Knowledge 5th edition. Project Management Institute.
12.RICHARD, Daft. (2000). Management, New York, 5th Edition, The

Dryden Press, A Division ofHarcourt Collage Publishers.
13.TURNER, J R. (1993). The handbook of project-based management:

Improving the processes of achieving strategic objectives. London:
McGraw- Hill.
14.UNFPD (2007). Project Manager's Planning Monitoring &

Evaluation toolkit.
CONTACT US
Mobile: + 966 545821579

E-mail: alsenosy15@gmail.com
LinkedIn: http://www.linkedin.com/in/ahmed13
Website : www.professionalengineers.us
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Without all of your continuous support, this project would

PROJECT MANAGEMENT PMP

About The Author

Ahmed AlSenosy holds a Bachelor of Civil Engineering. Member and

4.1 Develop Project Charter ........................................................................................ 37

7.4 Control Cost ........................................................................................................ 145

12.5 Procurement Tips & Tricks ............................................................................... 326

Figure (5- 5):Example for WBS Levels ..........................................................................80

Figure(8- 3): Control Chart ...........................................................................................174

Figure(11- 1):Plan Risk Management Process ..............................................................263

3. Program Management Professional PgMP

Dress in Layers: Frequently exam rooms are air conditioned to a point

Figure(2- 1):Traditional Project Management Life Cycle

Rolling wave planning

finite time duration,

Figure(2- 2):Project Management Context

Figure(2- 3):Portfolio Management

Helps in selecting of appropriate projects and programs to maximize the

Figure(2- 4):Multi Phase Project

Figure(2- 5):Description of Kill Point

2.3 Project Lifecycle ,PM Lifecycle

More Than 20 Questions In PMP Exam Related To

Figure(2- 6):Typical Project Life Cycle

Project Life Cycle Features

Figure(2- 7):Cost And Staffing Levels Through Project Life Cycle

Product Life Cycle

Figure(2- 8):Types of Project Stakeholders

2.4 Types of Organizations

Figure(2- 9):Different Types of Organization

Figure(2- 10):Functional Organization

Project Based Organization

Figure(2- 11):Project-Based Organization

Weak Matrix Organization

Figure(2- 12):Weak Matrix Organization

Figure(2- 13):Balanced Organization

Strong Matrix Organization

Figure(2- 14):Strong Matrix Organization

Figure(2- 15):Projectized Organization

Figure(2- 16):Composite Organization

Table(2- 1):Influence of Organizational Structures on Projects

2.5 PM Key General Management

Figure(2- 17):Project Coordinator Roles

3. Roles of Project Expediter

Figure(2- 18):Project Expeditor Roles

4. Roles of Functional Manager

Figure(2- 19):Senior Management Roles

One main difference between team members and other stakeholders is

2.6 Project Framework Tips & Tricks

Figure (3- 1):PM Processes Groups

Table(3- 1): PM Processes Groups

Table(3- 2):PM Knowledge Areas

3.1 Initiating Process Group

3.4 Monitoring & Controlling Process Group

with the results or outcomes of one generally becoming an input to

Figure (3- 2):Description of The Process

3.6.1 Common Inputs:

3.6.1.3 Project Management Plan

is properly understood and considered and that the right individuals or

Table(3- 3):Differentiation between The Project Management Plan and

Project Management Plan Project Documents

Requirement management plan Issue log Schedule data