PMBOK Study Notes.pdf

PMP Exam

Based on A Guide to the

PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK ® GUIDE) Sixth Edition

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Project Management Framework Project 

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Project – a temporary endeavor to create a unique product, service or result

(or enhancement enhancement of existing services/products (e.g. v.2 development development is a project) ) — may be collectively termed as deliverable — (vs. ongoing operations which manage processes in transforming resources into output) sometimes may involve handing over the deliverable to the operation teams for continuous operation Project drives changes in the organization and often is a means to create business values and to achieve organizational goals — the net quantifiable benefit derived from a business endeavor which can be tangible or intangible. Projects operate in an environment that may have favorable or unfavorable impacts on them. Two major categories are: Organization Process Assets is a major input in all planning process, which may be kept at PMO, directly related to project management, including Processes and Procedures (including templates (e.g. WBS, schedule network diagrams, etc.), procedures for issuing work authorizations, guidelines, performance measurements) and Organizational Knowledge Repositories Enterprise Environment Factors (often are constraints) are influences not under control of the project team that will affect the project, either intra-organization and extra-organization, e.g. organizational culture, organization structure, existing human resources, work authorization system, PMIS, market conditions, legal requirements, technology EEF are inputs for all initiating, most planning process, not much in the executing/controlling process, none in closing process Projects often involve more risks and uncertainties than operations and thus require more planning The following factors influence the operation of the organization which may lead to the need for projects: Regulatory/legal/social Regulatory/legal/social requirements changes Stakeholders Stakeholders needs/requests needs/requests Changes in technology/business technology/business o

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A project can be subdivided into phases, each phase is a collection of logically related project activities that result in the completion of deliverable(s). Towards the end of each phase is a ―Phase Gate‖ which determines whether the project will go on or not. Process – a package of inputs, tools and outputs, there are 49 processes defined by PMI. Processes are grouped in the PMBOK® Guide into 5 Process Groups (NOTE: Process groups are not the same as project phases). Portfolio > Program > Project Program – a group of coordinated projects, taking operations into account, maybe with common goals, achieving benefits not realized by running projects individually, if only the client/technologies/resource client/technologies/resource are the same, then the projects should be managed individually instead of a program Portfolio – a group of programs and/or projects to achieve organizational strategic goals within the organization with a view to maximizing the value to the organization Actively coordinating and managing portfolios, programs and projects through organizational project management (OPM) best position the organization to achieve strategic business goals. Use of portfolio/program/project management to bridge the gap between organizational organizational strategy and business value realization o

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Project Management 

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Project Management – the application of (all appropriate) knowledge, skills,

tools & techniques and whatsoever to manage project activities with a view to meet the project requirements and achieve customer satisfaction The most important task is to align stakeholder expectations with the project requirements, around 90% of the PM‘s work is related to communication with stakeholders standard but not methodology (agile, PMBOK® Guide is a framework / standard scrum, PRINCE3, etc.) — A framework allows flexibilities while a methodology would require the use of a predefined system of practices, techniques, procedures and rules. Project management emphasizes tailoring tailoring — selecting the appropriate o























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Competing constraints: time, cost, scope, quality, risk, resources

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Project Management Business Documents o

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Project Business Case — documents the economic feasibility vs benefits of the project and is used for authorization of project management management activities. Project Benefits Management Plan —describes how and when the benefits of the deliverables of the project will bring and describes how to measure the benefits (also including the alignment with organization strategies, assumptions and risks) Project Charter — authorizes the project and names the project manager Project Management Plan — how the project will be performed and managed – documents assumptions & decisions, helps communication between stakeholders, stakeholders, goals, costs & time scheduling (milestones), project management management system and subsidiary management management plans and documents Project Success Measures — project success is now more inclined to be measured by considering the achievement of project objectives as documented in this document

The Project Management Process Groups

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Initiating

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Planning

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Executing

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Monitoring and Controlling

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Closing

Planning and Executing are iterative. Monitoring and Controlling is exercised over Planning and Executing. A phase is not a process group. The 5 process groups will usually be included in any single phase. The process groups are not to be carried out in sequence as some are iterative and some are overlapping. The PM should identify and choose the most appropriate processes in each process group to fit in each individual project ( tailoring) The deliverables from each phase/project are often incremental in nature























Initiating 

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align project purposes with stakeholders’ expectations

assign a project manager identify stakeholders and develop the project charter document business case (created by an initiator, maybe well before the initiating process group) and cost-benefit analysis, identify high-level risks, identify project selection criteria early in the process, the staffing, costs and chance of success are low, risk and stakeholder influence is high may be performed at portfolio/program portfolio/program level (i.e. outside the project‘s level of control)

Planning 

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create Project Management Plan [why the project? what to deliver? who does what? when be accepted? how to execute?], subsidiary documents (schedule baseline, cost baseline, performance management baseline, scope baseline (scope statement, WBS, WBS dictionary) and subsidiary management plans (scope, schedule, budget, quality, human resources [roles & responsibility, organization chart and staffing management plan include the staff need, rewards, safety and training need] , stakeholder, requirements, process improvement, communication, change, risk and procurement) – all are not finalized until a thorough risk management has been performed, need to be approved before work begins all plan and documents can be formal or informal, generalized or detailed, depending on needs (tailoring) Project Management Plan may be continually updated during the project with rolling wave planning / progressive elaboration obtain approval of the plan from designated stakeholders, changes to the project management plan and subsidiary documents/plans need formal procedures described described in the change control system hold the kick-off meeting planning process group is MOST important for project management, with around 1/2 of all the 49 process in this group























Executing 

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coordinating human/infrastructure resources in accordance with the project management plan updates and re-baselining the project management plan and subsidiary management plans when needed normal execution, manage contracts, acquire, develop & manager project team, perform quality assurance and manage stakeholder expectation/ communication direct and manage project work continuous improvement process (quality assurance) use up the largest share of resources here in the Executing process group

Monitoring and Controlling 

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measure performance, address change requests, recommend corrective/ preventive measures and rectify defects usually performed at regular intervals control the quality, inspection and reporting, problem-solving, identify new risks reassess control process should there be any internal deviance from the stated plan, the PM should make corrections (use contingency reserve if necessary) monitor and control project work and integrate change control make sure only approved changes (through integrated change control) are incorporated

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either project finished or cancelled final product verification, contract closure, produce the final report (closeout documentation), obtain formal acceptance, archive, release resources, close project feedback, review and lessons learned (about the process), transition of deliverables to operation

























Knowledge Areas

1. Project Integration Management – assemble and combine all the various parts of the project into a coherent whole 2. Project Scope Management – plan, execute and control the project scope 3. Project Schedule Management (formerly Project Schedule Management) – plan, execute and control the project schedule 4. Project Cost Management – plan, execute and control the project cost 5. Project Quality Management – plan, execute and control the project quality 6. Project Resource Management (formerly Project Human Resource Management) – plan, execute and control the project resources including human, equipment and other physical resources 7. Project Communications Management – plan, execute and control the project communication (channels, methods, etc.) 8. Project Risk Management Management – plan, execute and control the project risk control measures 9. Project Procurement Management – plan, execute and control the project procurement 10. Project Stakeholder Management – plan, execute and control how to best dealing with project stakeholders 49 processes of Project Management

The 49 processes of project management are grouped under one of the 5 process groups/10 knowedge areas listed above and will be discussed in more details next. 3 new processes are added while 1 deleted in PMBOK® Guide 6th edition, resulting in a total of 49 processes from 47 processes in PMBOK® Guide 5th edition:























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Naming Changed processes Perform Quality Assurance → Manage Quality Plan Human Resource Management → Plan Resource Management Acquire project Team → Acquire Resources Develop Project Team → Develop Team Manage Project Team → Manage Team Control Communications Communications → Monitor Communications Control Risks → Monitor Risks Plan Stakeholder Management → Plan Stakeholder Engagement Control Stakeholder Engagement → Monitor Stakeholder Engagement o

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Each project management process is now categorized into: 

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used once or at predefined points in the project done periodically as needed done continuously throughout the project

It is important to understand the differences between PMBOK® Guide 6th edition and PMBOK® Guide 5th edition (in particular what new things have been added) as PMI usually emphasizes on these ―new‖ things in the new PMP® Exam 2018. Project Management Tools and Techniques (T&T)

In the PMBOK® Guide 6th edition, many tools and techniques have been grouped according to their purpose with a view to better supporting tailoring: 

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Data gathering Data analysis























Management Elements — general management principles/rules of the organization, e.g. disciplinary action, division of skills, authorization model/practices, model/practices, communication channels Organizational Governance Frameworks — framework/processes describing how authority within the organization is exercised Organizational Structure Types Organic or Simple Virtual Project oriented (project manager has the ultimate authority over the project, team members are often collocated) Matrix (Strong, Balanced, Week) Functional Composite/Hybrid – a combination of different types, depending on the actual need PMO Tight Matrix = co-location, nothing to do with the organization type (not necessarily a matrix org.) Functional organizations => the project manager has little authority, often called project expeditor expeditor (no authority) or coordinator coordinator (little authority), project project coordination among functional managers Matrix organization => multiple bosses and more complex Project Management Office (PMO) – standardizes governance, provides training, shares tools, templates, resources, etc. across all projects/programs/portfolios 3 forms: supportive, controlling and directive (lead the project as PM) functions: training, resource coordination, methodology, document repository, project management oversight, standards, career management management of PMs o

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Role of the Project Manager 

Project Manager: an individual assigned by the organization to lead the team

and is responsible for achieving project objectives is the leader of the project irrespective of the authority should consider every process to determine if they are needed for individual projects (tailoring) the exact role of project manager is to be tailored to suit the needs of individual organizations and projects may report to the functional manager, program manager, PMO manager, operation manager, senior management, etc., maybe parttime or devoted identifies and documents conflicts of project objectives with organization strategy as early as possible Skills required of project managers: Technical project management — process tailoring, planning, managing schedule/cost/resources/r schedule/cost/resources/risk isk Leadership — communication (within team and with stakeholders), team building, motivation, influencing, coaching, trust building, conflict management, management, negotiation Strategic and business management — be aware of the high-level strategies of the organization and effectively implement decisions/actions that align with strategic goals (Organization Strategy may be expressed through mission and vision) Project Manager must balance the constraints and tradeoffs, effectively communicate the info (including bad news) to the sponsor for informed decisions Project Manager needs to involve project team members in the planning o

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Lead: guide through interactive discussion from one point to another Manage: direct a person to perform a set of expected behaviour Leadership styles: Laissez-faire Transactional Servant leader Transformational Charismatic Interactional o

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Project Life Cycle vs Project Management Life Cycle vs Product Life Cycle 

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Project Life Cycle: includes: initiating, planning and organizing, carrying

out/executing work, closing the project. Project life cycles are independent of a product life cycle. Within a project life cycle, there can be one or more phases of the development of the product, service, or result (a.k.a. development life cycles) with the following models: Predictive [plan driven/waterfall] – scope, time and cost determined early in the lifecycle, may also employ rolling wave planning Iterative – repeat the phases as understanding of the project increases until the exit criteria are met, similar to the rolling wave planning, highlevel objectives, either sequential/overlapping phase, scope/time/resources scope/time/resources for each phase may be different Incremental – features/scope are added to each incremental cycle Adaptive [change driven/agile] – for projects with high levels of change, risk and/or uncertainty, each iterative is very short (2-4 weeks), o

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Product life cycle: development > production > adoption & growth >

maturity > decline > end of life Code of ethics and professional conduct

The Code of Ethics and Professional Conduct help an individual in making wise decisions, particularly when faced with difficult situations where the individual may be asked to compromise his or her integrity or values. The Code of Ethics and Professional Conduct affirms these four values as its foundation. Responsibility 

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in the best interest of the society, public and environment accept assignments consistent with skills and fulfill commitments accept stretch assignment when the assigner is fully aware of the skill gaps own error and make corrections uphold laws and regulations report illegal/unethical activities substantiated with facts ask for direction should the decision is beyond assigned authority

Respect























Honesty 

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understand the truth and be truthful honour commitments not to deceive others not engage in dishonest behavior for personal gain / at the expense of others

Other Important Project Management Terms 

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The Configuration Management Knowledge Bases contain baselines of all organization standards Lessons Learned – focus on the deviances from plan (baseline) to actual results and how to solve these discrepancies The work authorization system (WAS) is a system used during project integration management to make sure that the right work gets done at the right time PMIS includes configuration system and change control system Never accept a change request to trim down one element of the triple























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Requirement Traceability Matrix (RTM) – a matrix connecting deliverables to

requirements and their sources (for managing scope) Work Breakdown Structure (WBS) – a hierarchal chart of decomposing deliverables into work packages Activity List – a full list of all activities with indication of relationship to the work packages Activity Attributes – further information (duration, start date, end date, etc.) of all the activities in the list (for scheduling) Roles and Responsibilities (RAR) – a document listing all the roles and description of their responsibilities in the project (often by category) Responsibility Assignment Matrix (RAM) – a matrix connecting people to work packages/activities, e.g. the RACI matrix (responsible, accountable, consult, inform), usually only one person is accountable for each activity Resources Breakdown Structure (RBS) – a hierarchical chart listing all the resources by categories, e.g. marketing, design, etc. Risk Breakdown Structure (RBS) – a hierarchical chart listing all risks by categories Project Management Data and Information Work Performance Data – raw data collected Work Performance Info – analyzed in context and integrated data, e.g. some forecasts o

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each year using a straight line. Doubling the rate would mean that 20% would be depreciated each year, so the asset would be fully depreciated in 5 years, rather than 10. Under sum-of-the-years-digits, the asset is depreciated faster than the straight line but not as fast as declining balance. As an example of how this method works, let‘s say an asset‘s useful life is 5 years. Adding up the digits would be 5+4+3+2+1 or a total of 15. The first year, 5/15 is expensed; the next year 4/15 is expensed, and so on. So if the asset‘s cost is $1000, 5/15, or $333.34 would be expensed the first year, $266.67 the second year, and so on. Economic value added – the value of the project brought minus the cost of project (including opportunity costs) e.g. for a project cost of $100, the estimated return for 1st year is $5, assuming the same money can be invested to gain 8% per year, then the EVA is $5 – $100 * 8% = -$3 Net present value (NPV) – the sum of the present values (PVs) of the individual cash flows of the same entity Present value (PV) – or called present discounted value, is a future amount of money that has been discounted to reflect its current value, as if it existed today (i.e. with inflation, etc.) Future value (FV) – is the value of an asset at a specific date Internal Rate of Return (IRR) – The inherent discount rate or investment yield rate produced by the project‘s deliverables over a pre-defined pre -defined period of time.























Project Integration Management Project Integration Management encompasses all the process and activities to identify, define, combine, unify and coordinate all the various project management processes and activities and manage the interdependencies. 

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integration management is required when different project management processes interact tailoring of processes is a very important topic in the PMBOK® Guide 6th edition with a view to meeting project objectives of all the project management activities, communication is the most important one according to many project managers a PM Plan not meeting requirements is a defect

Develop Project Charter 

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Inputs: Business Inputs: Business Documents (including business case), Agreements, EEF, OPA Tools & Techniques: Expert Judgment, Data gathering (including brainstorming, focus groups, interviews), Interpersonal and team skills

























agreements are a group of project documents (either a contract (for external parties), letter of intent, service level agreement, etc. (can be legally binding or NOT)) that define initial intentions of the project a charter is NOT a contract because there is no consideration signed off by the sponsor (the one who supply the money/resources) PMO may provide the expert judgment o

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Develop Project Management Plan 

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Inputs: Project Inputs: Project Charter, Outputs from other processes, EEF, OPA Tools & Techniques: Expert Judgement, Data gathering, Interpersonal and team skills, Meetings Outputs: Project Management Plan























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the PM Plan can be re-baselined if significant changes are seen (scope change, internal changes/variances (for the project execution), external factors) needed to be approved by sponsors/stakeholders/s sponsors/stakeholders/senior enior management, management, must understand the underlying reasons first (built-in costs is not usually a legitimate reason) cost baseline (specific time-phased budget), schedule baseline (-> knows when to spend money), scope baseline (includes scope statement, WBS, WBS dictionary): whether preventive/corrective/defect preventive/corrective/defect repair actions are needed the performance measurement baseline (PMB) is an approved scopeschedule-cost plan for the project work (to be used in earned value management), this includes contingency reserve but excludes management reserves configuration management (works with change control management plan), o

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The Direct and Manage Project Work process creates project deliverables, acquire/assign/train acquire/assign/train staff, manage vendors, collect data for reports, document lessons learned most of the project time to be spent here the PM implements approved process improvement plans and changes, change requests include corrective actions, preventive actions, defect repair and updates (all considered to be change requests) if the PM discovers a defect, he/she should instruct the team to make defect repair during this process (need change request but may be approved by the PM only (if stipulated in PM Plan for minor changes)) approved change requests – approved in the perform integrated change control, may include preventive, corrective and defect repair actions change requests may arise as a result of implementing approved change requests o

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The lessons learned register is a new output (first mentioned the PMBOK® Guide) which records challenges, problems and successes throughout the project

Monitor and Control Project Work 

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Inputs: Project Management Management Plan, Project documents, Work performance information, Agreemen Agreements, ts, EEF, OPA Tools & Techniques: Expert Judgement, Data Analysis, Decision Making, Meetings Outputs: Work performance reports, Change requests, Project management plan updates, Project documents updates























Perform Integrated Change Control 

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Inputs: Project Management Management Plan, Project documents, Work performance reports, Change requests, requests, EEF, OPA Tools & Techniques: Expert Judgement, Change control tools, Data Analysis, Decision Making, Meetings Outputs: Approved change requests, Project management plan updates, Project documents updates

changes in the project arise as a result of missed requirements, views of stakeholders, poorly designed WBS, misunderstanding, inadequate risk assessment the PM should influence the factors that cause project change o

























Close Project or Phase 

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Inputs: Inputs: Project charter, Project Management Plan, Project documents, Accepted deliverables, Business documents, Agreements, Procurement documents, OPA Tools & Techniques: Expert Judgement, Data Analysis, Meetings Outputs: Project documents updates, Final product, service or results























Project Scope Management 

The project manager would need to ensure the inclusion of all and only the work required to complete the project successfully (to achieve project objectives to deliver business values).























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includes how to process requirements, address missed requirements, configuration management, prioritize requirements, metrics (and rationale) for defining the product, define the traceability structure (in RTM), authorization level for approving new requirements [important] the requirement management plan is the primary means to understand and manage stakeholder expectations

Collect Requirements























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Data Analysis Document analysis Data Representation Representation Affinity Diagram: for identifying a large number of ideas by grouping similar ideas together Mind Mapping: to generate ideas with the process of backtracking 

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value analysis Project Scope Statement includes objectives, (project and product) scope, requirements, boundaries, deliverables, acceptance criteria, constraints, assumptions, milestones, cost estimation, specifications, configuration management requirements, approval requirements, etc. the scope statement is usually progressively elaborated throughout throughout the project o

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chart of accounts: a list of all account names and numbers

























need to perform even in case of early termination/cancellation of the

















































the scope baseline (as part of the Project Mangement Plan) is used here as it

























start-to-finish start-to-finish (least)







































































































































































































































































































































































































































































































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Outputs: Work Performance Information, Change Management Plan Updates, Project Documents Updates

Project

in the monitoring and controlling process group ensure that the physical resources assigned to the project are available as planned monitor the planned versus actual utilization of resources and take corrective action with changes requests (if needed) Data Analysis Alternatives analysis Cost-benefit Cost-benefit analysis Performance reviews Trend analysis Problem-solving Problem-solving steps: 1. Identify the problem 2. Define the problem 3. Investigate 4. Analyze 5. Solve 6. Check the solution o

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Requests,























Project Communications Management 

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assure the timely collection, generation, distribution, storage, retrieval and ultimate disposition of project information this Knowledge Area is very important to the ultimate success of the project message transmission: 7% in word, 38% in vocal pitch, 55% in body language (according to Albert Mehrabian) must not delay in communicating good and even bad news the sender has the responsibility to ensure the receiver correctly understand the message if part of the project is procured, more formal written communication will be expected

Plan Communications Management 

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Inputs: Inputs: Project Charter, Project Management Plan, Project Documents, EEF, OPA Tools & Techniques: Expert Judgement, Communication Requirements Analysis, Communication Technology, Communication Models, Interpersonal and Team Skills, Data Representation, Meetings Outputs: Communications Management Plan, Project Management Plan Update, Project Documents Update

identify the needs for communication with stakeholders of the project including the who, what, when (frequency), why, where and how of communications needs and the persons responsible may need to limit who can communicate with whom and who will receive what information time and budget for the resources, escalation path, flow charts, constraints, guideline and templates efficient communication: only the required messages effective communication: right timing, right format, right medium Communication Methods interactive (multidirectional communication, most effective) o

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(Shannon-Weaver model) Sender-Receiver Model: i) encoded the idea, ii)

message and feedback, iii) medium, iv) noise level, v) the decoded idea. The sender to ensure info is clear, complete and the recipient correct understands. The recipient to ensure the complete message is received (to acknowledge) and provide feedback/response. feedback/response. Effective Listening: feedback active listening paralingual (voice expression, nonverbal elements) Communication channels: N (N -1) / 2 // N is the number of team members meetings should facilitate problem-solving As a norm, PM spends 90% of their time on COMMUNICATION activities, 50% of the time is spent on communicating with the team o

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Manage Communications 

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Inputs: Project Management Management Plan, Project Documents, Work Performance Reports, EEF, OPA Tools & Techniques: Communication Technology, Communication Models, Communication Skills, Project Mangement Information System, Project Reporting, Interpersonal Interpersonal and Team Skills, Data Representation, Meetings Outputs: Project Communications, Project Management Plan Update, Project Documents Update, OPA Update

create, collect, distribute, store, retrieve and dispose of project information according to the Communications Communications Management Plan ensures good communication, noises managed, stakeholders may feedback on how to improve Communication Barriers vs Communication Enhancers 55% message thru body language, 38% thru paralingual, 7% thru words used Types of Communications: Formal Written, Formal Verbal, Information I nformation Written, Informal Verbal o

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Cultural awareness Meeting management Networking Political awareness Project Reporting: status, progress, variance, trend, earned value reports and forecasts, summary of changes, risks and issues PM Plan Update to show the latest performance (against Performance Measurement Measurement Baseline) Feedback from stakeholders stakeholders are to be stored in OPA o

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Monitor Communications 

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Inputs: Project Management Management Plan, Project Documents, Work Performance Data, EEF, OPA Tools & Techniques: Expert Judgement, Project Management Information System, Data Analysis, Interpersonal and Team Skills, Meetings Outputs: Work Performance Information, Change Requests, Project Management Plan Update, Project Documents Update

to ensure optimal information flow for effective stakeholder expectation management issue log is to document the issues and monitor its resolutions (by the person responsible) Data Analysis tool includes stakeholder engagement assessment matrix — to assess the current situation of communication effectiveness through the review of changes between the desired and current engagement and adjusting communications (alternative ways/frequency/methods) ways/frequency/methods) as necessary























Project Risk Management 

Project Risk Management is involved in risk identification, management and response strategy impacts every area of the project management lifecycle risk = uncertainty risk management= increase the probability of project success by minimizing/eliminating negative risks (threats) and increasing positive events (opportunities) everyone is responsible for identifying risks for the project risk has one or more causes and has one or more impacts risk attitudes (EEF): risk appetite (willingness to take risks for rewards), tolerance for risk (risk tolerant or risk-averse), risk threshold (level beyond which the organization refuses to tolerate risks and may change its response) pure (insurable) risk vs vs business risk (can be +ve or -ve) known risks that cannot be dealt with proactively (active acceptance) should be assigned a contingency reserve or if the known risks cannot be analyzed, just wait for its happening and implement the workaround workaround (which is considered passive acceptance) o

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Plan Risk Management 

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Inputs: Inputs: Project Charter, Project Management Plan, Project Documents, EEF, OPA Tools & Techniques: Expert Judgement, Data Analysis, Meetings Outputs: Risk Management Plan

The Plan Risk Mangement process is involved in defining and providing resources and time to perform risk management. including methodology, roles and responsibilities, budget, timing (when and how often), risk categories (e.g. risk breakdown structure RBS), definitions, stakeholder tolerances (an EEF), reporting and tracking performed at project initiation and early in the Planning process failure to address risks early on can ultimately be more costly later on in o

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a risk breakdown structure (RBS) (included in the PM Plan) – risks grouped by categories and occurring areas key risk categories: scope creep inherent schedule flaws employee turnover specification breakdown (conflicts in deliverable specifications) poor productivity o

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Identify Risks 

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Inputs: Project Management Plan, Project Documents, Agreements, Procurement Documentation, EEF, OPA Tools & Techniques: Expert Judgement, Data Gathering, Data Analysis, Interpersonal and Team Skills, Prompt Lists, Meetings Outputs: Risk Register, Risk Report, Project Document Updates

to find out and document all risks affecting the project from all aspects of the project, including: agreements/contracts agreements/contracts within/outside of the organization procurements requirements, schedule, cost, resource, quality, scope, etc. from the project management plan Data Gathering Techniques: Techniques: brainstorming, brainstorming, checklists, interviews, Delphi technique [a panel of independent experts, maintain anonymity, use questionnaire, encourage open critique], Data Analysis Techniques: o

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Prompt List

The prompt list (newly added in PMBOK® Guide 6th Edition) is a predetermined list of risk categories that are at the lowest level of the risk breakdown structure which is used to assist in identifying risks of the projects examples of prompt lists: PESTLE (political, economic, social, technological, legal, environmental) TECOP (technical, environmental, commercial, operations, political) VUCA (volatility, uncertainty, complexity, ambiguity) Risk Register (typically not including the risk reserve) The Risk Register may include a risk statement any risk with a probability of >70% is an issue (to be dealt with proactively and recorded in the issue log) The Risk Report (new in PMBOK® Guide 6th Edition) is a document used to present information (e.g. no. of identified threats and opportunities, distribution of risks across risk categories, metrics and trends) on overall project risk. It also includes a summary information on individual project risks. o

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Perform Qualitative Risk Analysis 

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Inputs: Project Management Plan, Project Documents, Agreements, Procurement Documentation, EEF, OPA Tools & Techniques: Expert Judgement, Data Gathering, Data Analysis, Interpersonal and Team Skills, Risk Categorization, Data Representation, Meetings Outputs: Project Document Updates (e.g. Risk Register)























Assessment of other risk parameters (e.g. urgency, proximity, dormancy, manageability, controllability, detectability, connectivity, strategic impact, propinquity) Data Representation Tools: qualitative risk assessment matrix (format described in the Risk Management Plan) hierarchical-type charts the risk register is updated along the following processes: Perform Qualitative Risk Analysis, Perform Quantitative Analysis, Plan Risk Responses and Monitor & Control Risks o

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Perform Quantitative Risk Analysis 

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Inputs: Project Management Plan, Project Documents, Agreements, Agreements, Procurement Documentation, EEF, OPA Tools & Techniques: Expert Judgement, Data Gathering, Interpersonal and Team Skills, Representation of Uncertainty, Data Analysis Outputs: Project Document Updates

the cost, schedule and risk management plan contains guidelines on how to quantitatively analyze risks involves mathematical modelling for forecasts and trend analysis Representation of Uncertainty (probability distribution) reflects the risks as a probability distribution, distribution, which can be in the following distribution types: Triangular Normal (bell-shaped curve) Lognormal o

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[20%]) X detectability (1-10 [undetectable]), also a non-proprietary approach for risk management Expected Value / Expected Monetary Value (EMV), probability x impact (cost/effort lost), opportunities (+ve values), threats (-ve values) Simulations/Monte Carlo Analysis – by running simulations many times over in order to calculate those same probabilities heuristically just like actually playing and recording your results in a real casino situation, ‗S‘ curve curve (cumulative distribution) will result, may use PERT/triangular distribution to model data, may use thousands of data points (a random variable), for budget/schedule analysis Decision Tree Analysis – another form of EMV, branching: decision squares (decision branch – options), circles (uncertainty branch – possible outcomes) Influence Diagram – graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes

Plan Risk Responses 

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Inputs: Project Management Plan, Project Documents, Agreements, Procurement Documentation, EEF, OPA Tools & Techniques: Expert Judgement, Data Gathering, Interpersonal and Team Skills, Strategies for Threats, Strategies for Opportunities, Contingent Response Strategies, Strategies for Overall Project Risks, Data Analysis, Decision Making Outputs: Outputs: Change Requests, Project Management Plan Updates, Project Document Updates























(reduce the risk of more testing/precautionary actions/redundancy) accept (passive – do nothing or active – contingency) escalate (escalates a risk to the appropriate party — can be deleted from the risk register or retain in the risk register with a remark) Positive Risk Strategies: exploit (ensure opportunity by using internal resources e.g. reduce cost/use of top talents/new tech) share (contractor with specialized skills, joint venture) enhance (increase likelihood / impact e.g. fast-tracking, add resources etc.) accept passive risk acceptance to be dealt with when the risk occurs Strategies for Overall Project Risk the PM needs to address the overall project risks with one of the following strategies: Avoid Exploit Mitigate/Enhance Accept Contingency Plan (contingent response strategies) (plan A) are developed for specific risk (when you have accepted a risk) with certain triggersvs Fallback Plan (plan B) Residual Risks – risks remain after the risk response strategy was implemented, may be identified in the planning process (may subject to contingency/fallback planning) They don‘t need any further analysis because you have already planned the complete response strategy you know in dealing with the risk that came before them. o

mitigate

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quantitative analysis, residual and secondary risks, contingency and fallback, risk budget/time

Implement Risk Responses 

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Inputs: Project Inputs: Project Management Plan, Project Documents, OPA Tools & Techniques: Expert Judgement, Interpersonal and Team Skills, Project Management Information System Outputs: Change Requests, Project Document Updates

in the Executing process group implementing risk responses is the responsibilities of the risk owners to ensure that agreed upon risk responses (as from the Plan Risk Response process) are executed as planned to address overall project risk exposure minimize individual project threats maximize individual project opportunities the Project Management Information System provides the information to allow agreed-upon risk response plans and associated activities to be executed alongside other project activities o

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to re-assess the individual risk response strategies to see if they are effective risk audits deal with the effectiveness of risk response and the risk management process risk audits are usually performed by experts outside project team for the whole risk management process Data Analysis Techniques: reserve analysis – apply only to the specific risks of the project for which they were set aside technical performance analysis workaround: when no contingency plan exists, executed on-the-fly to address unplanned events – still need to pass through normal change control if change requests are needed determine the workaround is performed in control risks o

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Project Procurement Management 

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sellers are external to the project team need to go through all 4 processes for each and every procurement Contract Elements: offer (seller offer buyer) acceptance (buyer criteria) capacity (physical/financial capabilities) consideration (seller receive) legal purpose (must be legal under law) PM needs to understand terms and conditions, identify risks, include procurement schedule and involve in negotiations Centralized contracting vs Decentralized contracting Procurement Categories: Categories: major complexity (high risk) minor complexity (low risk, expensive) routine purchase (Commercial Off the Shelf Products COTS) goods and services (to perform part of our product) Suppliers can be: sole source single source (preferred, for building a long-term relationship) o

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identify possible sellers and pre-meeting with them make-or-buy analysis (determine whether to obtain products/services outside of the organization) is a compulsory process, needs to take risks into considerations carefully written terms and conditions can transfer/share risks teaming agreements or joint ventures Procurement Documents: request for proposal (RFP) invitation for bid (IFB) request for quote (RFQ) request for information (RFI) tender notice invitation for negotiation seller initial response The procurement management plan specifies how a project will acquire goods/services from outside, includes contract type, risk management, constraints and assumptions, insurance requirements, form and format, prequalified sellers, metrics used, etc. Data Analysis Techniques: Return on investment (ROI) Internal rate of return (IRR) o

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functional (convey the end purpose or result)

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Evaluation Criteria: risk, understanding of need, life-cycle cost, technical

capability, management approach, technical approach Procurement Strategy (new in PMBOK® Guide 6th Edition) the procurement strategy determines the project delivery method: with/without subtracting, joint venture, representative, etc. turnkey, design and build (DB), build own operate transfer (BOOT), etc. contract payment types: Firm Fixed Price (FFP) – the price is fixed, specifications are well known, risk on on the seller Fixed Price Incentive Fee (FPIF) – incentives for faster/better faster/better than contracted Fixed Price with Economic Adjustment / Economic Price Adjustment (FPEA / FP-EPA) – inflation are taken into account Purchase Order (PO) – for off-the-shelf goods/services with published rates Cost Reimbursable (CR) / Cost Plus – buying the expertise (not the products), outcome is not clear, risk on the buyer, little incentive to control costs on buyer, need invoice audits o

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Bid Documents

Request for Proposal (RFP) – cost reimbursable contract, functional/performance functional/performance SOW Invitation for Bid (IFB) / Request for Bid (RFB) – fixed-price contract, design SOW Request for Quote (RFP) – time and material, any type of SOW Contractual Terms Cancellation for Convenience – buyer can cancel and pay up to the point Cancellation for Cause – default by either party, may result in legal actions Escrow – survivability of seller in doubt, put the product in escrow (esp. if seller does not give up intellectual properties) Force Majeure – standard disclaimer refers to ‗Acts of God‘ Indemnification / Liability responsible party o

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bidder‘s conference is a Q&A session with bidders, all bidders receive the same information (bidder are careful not to expose their technical approach during the session => may not have many questions) remember NOT to have secret meetings or communications with individual vendors review seller proposals: weighting systems, independent estimates, screening systems (screen out non-qualified vendors), seller rating systems (for past performance), performance), expert judgement Data Analysis includes ensuring that proposal is full and complete Contract Negotiations and Tactics Fait Accompli – not negotiable terms Deadline – deadline for deliverables Good Guy/ Bad Guy – one friendly, one aggressive Missing Man – decision maker is missing Limited Authority not given authority o

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manage procurement relationships, monitor contract performance, make change and corrections Data Analysis Techniques: Performance reviews Earned value analysis (EVA) Trend analysis the procurement administrator may be external to the project team to close a procurement, the project management team should check and approve all deliverables and a written notice be sent to the seller (closed procurement) may identify early signs and capture details for pre-mature termination of a contract For Fixed Price contracts, look out for Bait and Switch (replace with cheaper materials), look out for excessive change requests For Cost Reimbursable contracts, audit all invoices, look out for additional o

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Project Stakeholder Management 

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stakeholders are groups/individuals who may affect/be affected by the project identify stakeholders is a continual process throughout the project lifecycle as some stakeholders may become irrelevant while new stakeholders may be identified as the project evolves the Project Manager is responsible for the engaging and managing the various stakeholders in a project identify stakeholders, communicate and engage them, manage expectations and focus on satisfaction stakeholder satisfaction satisfaction is a key project objective o

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Interest, rights (legal or moral rights), power/interest, power/influence or impact/influence grid, salience model, prioritization, etc. Data Representation Tools: Power/interest grid, power influence grid or impact/influence grid (3 ‗I‘s: importance, interest, influence) determine the stakeholders‘ hot buttons (what response in spe cific situations) and develop support strategies stakeholders have the greatest influence in the initial stage of the project stakeholder analysis matrix is part of the stakeholder management strategy (output of Identify I dentify Stakeholders Process) Salience Model: describing stakeholders based on the power (influence), urgency and legitimacy document only influential stakeholders if there is a large number of stakeholders 

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Root cause analysis Stakeholder Engagement Assessment Matrix: (C-current level, Ddesired level) SWOT analysis Engagement Level Unaware Resistant: resistant to change Neutral o

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Monitor Stakeholder Engagement 

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Inputs: Project Management Management Plan, Project Documents, Work Performance Data, EEF, OPA Tools & Techniques: Data Analysis, Decision Making, Data Representation, Communication Skills, Interpersonal and Team Skills, Meetings Outputs: Work Performance Information, Change Requests, Project Management Plan Update, Project Documents Update

PMBOK Study Notes.pdf

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