PMBOK standard – project management body of knowledge

A Project
- Goal
- Works  project plan
- Resources (people, $, time, technologies, materials, info)
- Constraints ~limitations
Project – temporary endeavor undertaken to create new(unique) products, services, or
results

Operating activities – permanent repetition of the same operations in order to produce the
same product (or render the same service)
Examples: mass production, selling typical products, accounting transactions, etc
Difference between operating activities and project related activities

// breakeven point
If we don’t fit into time frame, LOST BENEFITS

A program refers to a group of related projects managed in a coordinated way to obtain

benefits and control not available from managing them individually для получения
преимуществ и контроля недоступных при индивид управлении
A portfolio refers to a collection of projects or programs and other work grouped together
to facilitate effective management for the purpose of reaching an organization’s strategic
business goals
Project success criteria
A project is successful if its completed
- On time
- On budget
- To the customer’s satisfaction
Project constraints : scope / cost / time
How successful are projects :
1. Successful 29%
2. Unsuccessful 53% (none of the projects goals have been achieved)
3. Failed 18% (projects either have not been completed at all or have been completed
but the results are not being used)
PROJECT MANAGEMENT STANDARDS best practices interaction certification systemic
picture
CLASSIFICATION OF PROJECT MANAGEMENT APPROACHES
1. Predictive (classic)
2. Iterative (flexible)
3. Hybrid

CLASSIC APPROACH – WATERFALL MODEL

The model assumes the transition to the next stage after the complete completion of the
previous stage and is characterized by a clear separation of data and processing processes

EXPENSIVE because of changing requirements and errors made at any of stages

FLEXIBLE APPROACH – INCREMENTAL MODEL
The series of releases is referred to as “increments”, with each increments providing more
functionality to the customer
1 increment – core product

HYBRID APPROACH = CLASSIC + FLEXIBLE

Key principles and elements defined in both flexible and traditional methods
One branch – using agile
Other branches – classic waterfall model
PROJECT MANAGEMENT INSTITUTE PMI

PMI certification

PMI STANDARDS
CONTENT OF STANDARD

PROJECT SHAREHOLDERS

FUNCTIONAL ORGANIZATION
PROJECTED ORGANIZATION

WEAK MATRIX ORGANIZATION

BALANCED MATRIX ORGANIZATION

STRONG MATRIX ORGANIZATION

MIXED MATRIX ORGANIZATION

PROJECT MANAGEMENT IN DIF ORGANIZATIONS

PROJECT LIFE CYCLE
The project is divided into phases (stages)  each phase is to finish with a tangible
verifiable work product (deliverable)  in the end of each stage, a decision is taken
whether to initiate a new phase or close (suspend) the project (kill point)
ITS CRUCIAL TO PROMPTLY CLOSE A PROJECT IN CASE OF ITS FAILURE

SAMPLE PROJECT LIFE CYCLE

DEPENDENCY OF COSTS AND HR INVOLVED UPON THE PROJECT PHASE

ABILITY TO INFLUENCE THE PROJECT DELIVERABLE AND COST OF CHANGE

PROJECT AND PRODUCT LIFE CYCLE

PROJECT MANAGEMENT PROCESS (PMP) GROUPS // initiating process - beginning /
planning – first part / executing – second part/ monitoring and controlling – all the time /
closing - ending

LEVEL OF ACTIVITY OF PMP IN THE PROJECT LIFE CYCLE

INTERACTION BETWEEN PHASES / KILL POINT BETWEEN THEM

PM AREAS OF KNOWLEDGE AND PROCESSES (dif types of management – integration,
scope, schedule, cost, quality, resource, communications, risk, procurement, stakeholders)

PROJECT INTEGRATION MANAGEMENT

1. Initiating processes – develop project charter
2. Planning – develop project management plan
3. Executing – direct and manage project execution, manage project knowledge
4. Monitoring and controlling – perform integrated change control, monitor and
control project work
5. Closing – close project (phase)
DEVELOP PROJECT CHARTER
INPUTS :
 Business documents
 Agreements
 Enterprise environmental factors
 Organizational process assets
Tools :
 Expert judgment
 Data collection
 Interpersonal and communication skills
 Meetings
Outputs
 Project Charter
 Assumptions Log
ENTERPRISE ENVIRONMENTAL FACTORS
- Governmental and industry standards
- Organization infrastructure
- Marketplace conditions
ORGANIZATIONAL PROCESS ASSETS : policies / templates / historical info / lessons

THE PROJECT CHARTER INCLUDES

Business case / project objectives / success criteria / requirements, risks / schedule / budget
/ approval requirements / responsibility, assigned project manager / project sponsor

SMART OBJECTIVES – specific, measurable, achievable, result-oriented, time-bounded

THE CHARTER AUTORIZES THE PROJECT
DEVELOP PROJECT MANAGEMENT PLAN
INPUTS:
 Project charter
 Outputs from planning processes
 Enterprise environmental factors
 Organizational process assets
TOOLS:
 Expert judgment
OUTPUTS:
 Project management plan

The development of a project plan is an iterative & integration process

THE SCALE AND COMPOSITION OF THE PLAN ARE TO BE IN LINE WITH THE SCALE AND
IMPORTANCE OF THE PROJECT
DIRECT AND MANAGE PROJECT WORK
INPUTS:
 Project management plan
 Approved change requests
 Enterprise environmental factors
 Organizational process assets
TOOLS:
 Expert judgment
 Project management information system PMIS
OUTPUTS:
 Deliverables
 Work performance data
 Change requests
 Project management plan updates
 Project document updates
Project execution – the major process in the project implementation
THE PROJECT MANAGEMENT PRINCIPAL DUTIES :
MANAGE PROJECT KNOWLEDGE
INPUTS:
 Project management plan
 Project deliverables
 Enterprise env factors
 Org process assets
TOOLS:
 Expert judgment
 Manage knowledge
 Interpersonal and communication skills
 PMIS
OUTPUTS:
 Lessons learned update
 Project management plan updates
 Project document updates

MANAGE PROJECT KNPWLEDGE includes creation of conditions ensuring effective usage of

project team and stakeholders experience and competencies through the whole project life
cycle and after it’s completion

MONITOR AND CONTROL PROJECT WORK

INPUTS:
 Project management plan
 Performance reports
 Enterprise env factors
 Organizational process assets
TOOLS:
 Expert judgment
OUTPUTS:
 Change requests
 Project management plan updates
 Project document updates

MONITORING – OBSERVING
CONTROL – COMPARING the project CURRENT STATUS against what it SHOULD BE
If the project status doesn’t comply with the plan – there is a VARIANCE
// Change request – changes may include: corrective actions, preventive actions, defect
repair
Changes may have an impact on product and project scope

PERFORM INTEGRATED CHANGE CONTROL

INPUTS:
 Project management plan
 Work performance data
 Change requests
 Enterprise env factors
 Org process assets
TOOLS:
 Change control meetings
 Expert judgment
OUTPUTS:
 Change request status update
 Project management plan updates
 Project document updates

Depending upon their impact on the project, changes may be approved or rejected by the
PROJECT MANAGER, the SPONSOR, the CUSTOMER or the CHANGE CONTROL BOARD
// project process adjustment // virance
If it’s too big than change is necessary !!!  CHANGE CONTROL BOARD
CLOSE PROJECT OR PHASE
INPUTS:
 Project management plan
 Accepted deliverables
 Org process assets
TOOLS:
 Expert judgment
OUTPUTS:
 Final product, service, result transaction
 Organizational process assets updates

PROJECT SCOPE MANAGEMENT

Panning – plan scope management, collect requirements, define scope, create WBS
Monitoring and controlling – verify scope and control scope
Project scope management focuses on defining and controlling all the required activities
aimed at successful completion and closure of the project
CONTINUES THROUGHT THE WHOLE PROJECT LIFE CYCLE
Project scope – the work that must be done to deliver the product / product scope –
features of a product

COLLECT REQUIRMENTS
INPUTS:
 Project charter
 Stakeholder register
TOOLS:
 Interviews
 Focus groups
 Observations etc
OUTPUTS:
 Stakeholder requirmerts documentation
 Requirements management plan
 Requirements traceability matrix
Collect requirments

Stakeholder requirements documentation

REQUIREMENTS MANAGEMENT PLAN

REQUIREMENTS TRACEABILITY MATRIX

DEFINE SCOPE
INPUTS:
 Project charter
 Stakeholder requirements documentation
 Org process assets
TOOLS:
 Expert judgment
 Product analysis
 Alternatives analysis
 Facilitated workshops
OUTPUTS:
 Project scope statement
 Project document updates
The project management scope statement describes in detail the project deliverables and
the work required to create those deliverables

Scope statement – a detailed document describing project scope and prepared based on
the previously developed project charter and documented stakeholders’ requirements
SECTIONS OF THE PROJECT SCOPE STATEMENTS
SCOPE is a basis for any further plans and decisions
1. PRODUCT SCOPE DESCRIPTION

2. PRODUCT ACCEPTANCE CRITERIA

3. PROJECT DELIVERABLES

4. PROJECT BOUNDARIES // project in scope and out of scope

5. PROJECT CONSTRAINTS – factors limiting the project team work and the project
scope

6. PROJECT ASSUMPTIONS – factors considered to be true, real

CREATE WORK BREAKDOWN STRUCTURE (WBS)
INPUTS:
 Project scope statement
 Stakeholder requirements documentation
 Organizational process assets
TOOLS:
 Decomposition
OUTPUTS:
 WBS
 WBS dictionary
 Scope baseline
 Project document updates
Decomposition – subdividing of a project’s goals and works into smaller and more
manageable components
Baisis principle / the principle of work packages
WBS is a next step in developing and elaborating the project scope after the scope
statement

WBS lower level constitutes work packages

Breakdown continues down to the levels for which realistic evaluation is possible in terms
of
 Timing
 Cost
 risks
WBS dictionary : owner, contractual info, quality requirements, technical specification etc

VERIFY SCOPE
INPUTS:
 Project management plan
 Stakeholder requirements documentation
 Requirements traceability matrix
 Validated deliverables
TOOLS:
 Inspection
OUTPUTS:
 Accepted deliverables
 Change requests
 Project document updates

Verifying scope – the process of formalizing acceptance of the project deliverables by the
stakeholders

CONTROL SCOPE
INPUTS:
 Project management plan
 Work performance data
 Stakeholder requirements doc
 Requirements traceability matrix
 Org process assets
TOOLS:
 Variance analysis
OUTPUTS:
 Work performance measurements
 Change requests
 Org process assets updates
 Project management plan updates
 Project document updates

Any change of the scope should undergo an integrated change control

PROJECTS SCHEDULE MANAGEMENT

DEFINE ACTIVITIES
SEQUENCE ACTIVITIES

Precedence diagramming method // the most common technique nowadays

Mandatory dependencies / discretionary / external

4 KINDS OF DEPENDENCIES : finish to start, start to start, finish to finish, start to finish

ESTIMATE ACTIVITY DURATIONS

To estimate activity duration the following info is used:

  Activity scope
 Required resource types
 Required resource quantities
 Recourse calendars
Methods of activity duration estimating: expert judgment, analogous estimating,
parametric estimating, PERT estimation

DEVELOP SCHEDULE

// A critical path – early and late start and finish for each activity
ES=LS or EF=LF – on critical path
At least 1 critical path
RECOURSE-ADJUSTED CRITICAL PATH
Critical path / critical chain
RESOURCE LEVELLING

SCHEDULE COMPRESSION
Crashing / fast tracking

GRAPHICAL REPRESENTATION OF A SCHEDULE – network diagram / gantt network chart /

milestone chart
Approved schedule – BASELINE

CONTROL SCHEDULE
PROJECT COST MANAGEMENT

ESTIMATE COSTS
ESTIMATING THE COST OF RESOURCES NEEDED
Analogous estimating / parametric estimating / bottom-up estimating

Vendor bid analysis / reserve analysis / cost of quality

Types of estimates : order of magnitude / definitive estimate

DETERMINE BUDGET

1. Determine work (WBS and activities)

 2. Develop Schedule

3. Develop cost baseline

4. Cost baseline

CONTROL COSTS
EARNED VALUE MEASUREMENT
Planned value (PV), earned value (EV), actual cost (AC)

Cost variance (CV), schedule variance (SV), cost performance index (CPI), schedule
performance index (SPI)

// example
MEASURE ANALYSIS (under/over budget, behind, ahead of schedule)
TO-COMPLETE PERFORMANCE INDEX – TCPI

numerator/denominator
PROJECT QUALITY MANAGEMENT

QUIALITY description

PMI’S KEY PRINCEPLES OF PROJECT QUALITY MANAGEMENT

customer satisfaction / prevention over inspection / continuous improvement

QUIALITY MANAGEMENT EQUALLY RELATES TO

- project management
- project’s product
PLAN QUALITY

AUDIT OF PROJECT WORKS AND CONTROL OF PROJECTS WORKS RESULTS

project scope – works – quality assurance / product scope – features – quality control

COST OF QUALITY – cost of conformance / cost of nonconformance

DECREASING COST DURING QUALITY MANAGEMENT

MANAGE QUALITY

Quality assurance examples:

- auditing the product creation process
- auditing project management quality

Performing quality assurance is the primary objective of independent quality experts in

charge of organizing a number of project reviews
Project contract review / project solution review / project implementation review /
project organization review
PERFORM QUALITY CONTROL

MAJOR QUALITY CONTROL TOOLS

1. Cause and effect diagram
2. Flowchart
3. Run chart
4. Control chart
5. Pareto diagram
6. Histogram
7. Scatter diagram
PROJECT RESOURCE MANAGEMENT

RESOURCE MANAGEMENT PLANNING

DEVELOP HUMAN RESOURCE PLAN

A human resource plan is a part of the project management plan describing when and how
human resource requirements will be met
INCLUDES : staff acquisiotion / timetable / staff release plan / complience etc

ROLES AND RESPONSIBILITY DEFINITION FORMATS

Hierarchical-type organization chart / text-oriented format
PROJECT HIERARCHICAL-TYPE ORGANIZATION CHART EXAMPLE

RESPONSIBILITY ASSIGNMENT MATRIX

ESTIMATE ACTIVITY RESOURCES

RESOURCE ESTIMATING
 - What resources are to be used in activities?
- In what quantities will the resources be required?
- When will the resource be available ?

ACQUIRE PROJECT TEAM

SELECTION CRITERIA : professional knowledge and skills, professional experience / record,

candidate’s motivation, business competencies

DEVELOP PROJECT TEAM

In order to efficiently manage project personnel basic behavior motives are to be known
Maslow’s hierarchy of needs

MANAGE PROJECT TEAM

CONFLICTS AND THEIR ROLE

THE WAYS OR RESOLVING CONFLICTS WITHIN A PROJECT:
- Withdrawing/avoiding
- Smoothing/ accommodating
- Compromising
- Forcing
- Cooperating
- Confronting/ problem solving

Major reasons for conflicts in a project

QUALITIES A PROJECT MANAGER NEEDS TO POSSESS:

- Leadership
- Influence
- Effective decision-making
MAJOR TYPES OF POWER IN A PROJECT
Formal / reward / penalty / expert / referent
CONTROL RESOURCES

PROJECT COMMUNICATIONS MANAGEMENT

COMMUNICATION MANAGEMENT PLANNING

PLAN COMMUNICATIONS
Communication technology factors include

The communications management plan may include the following sections

MANAGING COMMUNICATIONS

DISTRIBUTE INFORMATION

Communication methods
LESSONS LEARNED KNOWLEDGE BASE

LESSONS LEARNED cover all the project areas

It’s useful to describe:
- What you’ve done right
- What you’ve done wrong
- What you would have done differently if it were possible to return into the past

MONITOR COMMUNICATIONS

REPORT PERFORMANCE – the process of collecting and distributing performance

information to provide stakeholders with reliable information on the activities performed
and resources spent
Performance reports may include the following:
PROJECT RISK MANAGEMENT

PROJECT RISK is an uncertain event or condition that, if it occurs, has a positive or negative
effect on at least one project objective, e.g time, cost, scope, quality

Known risks / unkown risks

PROJECT RISK MANAGEMENT CYCLE

PLAN RISK MANAGEMENT

A risk management plan describes how all risk management processes will be performed
RSIK BREAKDOWN STRUCTURE

IDENTIFY RISKS

SOURCES OF RISK-RELATED INFORMATION

 - Product description
- Assumptions
- Historical information
INFORMATION GATHERING TECHNIQUES
- Brainstorming
- Delphi technique
- Interviewing
- Root cause analysis
CHECKLIST ANALYSIS

CONTENTS OF THE RISK REGISTER

- List of risks with the required level of detail
- List of potential response strategies for the identified risks
PERFORM QUALITATIVE RISK ANALYSIS

SAMPLE RISK SCORE MATRIX (critical, moderate, low risks)

RISK MIGRATION
PERFORM QUNTITIVE RISK ANALYSIS

PROCESS OUTPUTS:

COST RISK SIMULATION RESULTS

PLAN RISK RESPONSES

STRATEGIES FOR NEGATIVE RISKS AND THREATS TO THE PROJECT

Risk avoidance / risk transference / risk mitigation
STRATEGIES FOR POSITIVE RISKS AND OPPORTUNITIES TO THE PROJECT
Risk exploit, risk share, risk enhance

STRATEGY FOR BOTH THREATS AND OPPORTUNITIES

// acceptance – a strategy when the risk is accepted, the project team doesn’t try to
influence the risk
It is often used in situations with limited opportunities to influence and when the risk
impact is immaterial

IMPLEMENT RISK RESPONSES

MONITOR RISKS

PROJECT PROCUREMENT MANAGEMENT

PLAN PROCUREMENTS

MAKE-OR-BUY DECISION

MAJOR TYPES OF CONTRACTS

Fixed price or lump sum / cost-reimbursable / time and materials

The contract type and deliverable acceptance criteria

THE PROCESS MAJOR DELIVERABLE is THE PROCUREMENT MANAGEMENT PLAN, which
describes:
- What to procure and how much to procure?
- When to procure?
- How to procure? (contract type selection)
- The circle of potential suppliers
TYPES OF PROCUREMENT DOCUMENTS

CONDUCT PROCUREMENTS
Proposals – are the documents prepared by the seller and describing the seller’s intentions
and ability to provide products or services specified in procurement documents
- They are prepared in accordance with the requirements specified in procurement
documents
- They constitute official and valid offer
The following is used when selecting a seller:
- Weighting system
- Expert judgments
- Seller rating systems
- Screening system
MAJOR SECTIONS OF THE CONTRACT INCLUDE
CONTROL PROCUREMENTS

Project manager’s role in administering procurements:

PROJECT STAKEHOLDERS MANAGEMENT

IDENTIFY STAKEHOLDERS

Analysis of stakeholder groups

The stakeholder management strategy defines an approach to increase the support and
minimize negative impacts of stakeholders throughout the entire project life cycle

Stakeholder analysis matrix

STAKEHOLDERS MANAGEMNT PLANNING

Stakeholders management plan

MANAGING STAKEHOLDERS ENGAGEMENT

Interpersonal skills:
- Building trust
- Resolving conflict
- Active listening
- Overcoming resistance to change

Management skills:
- Presentation skills
- Negotiation skills
- Writing skills
- Public speaking

ISSUE LOG
STAKEHOLDERS’ REACTION TO THE PROJECT – support / expectation / counteraction
The project manager’s task is to win stakeholder’s support

ASPECTS THAT SHAPE STAKEHOLDERS’ ATTITUDE TOWARDS THE PROJECT

MONITOR STAKEHOLDERS ENGAGEMENT