Handbook

PMP® Exam Prep Workshop

 PMP® Exam Preparation PMP® Exam Prep Study
Workshop Guide

PMP® EXAM PREP WORKSHOP

Hand Book
Based on A Guide to the Project Management
Body of Knowledge, (PMBOK® Guide) – Sixth
Edition

Note: The handbook ‘PMP® Exam Prep Workshop’ that Edureka offers the learners is NOT the replacement of PMBOK ® Guide. We have created the
handbook to simplify and make the guide learner friendly. The handbook is aligned to PIMBOK ® Guide, but NOT the replacement of PMBOK® Guide.

© 2012 Brain4ce Education Solutions Pvt. Ltd.

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Table of Content

Contents
1. PMP® Examination - At a Glance.............................................................................................................. 30

1.1. About PMI® and PMP® .................................................................................................................... 30

1.2. PMP® Exam Preparation Program Objective .................................................................................... 30

1.3. PMP® Exam Prerequisites ................................................................................................................ 30

1.5. Continuing Certification Requirements ............................................................................................. 32

1.6. PMP® Examination Format and Passing Score .................................................................................. 33

1.7. Topics of PMP® Examination............................................................................................................ 33

1.7.3. Execution (30%)............................................................................................................................... 34

1.7.4. Monitoring and Controlling (25%) .................................................................................................... 35

1.7.5. Closing (8%) .................................................................................................................................... 35

2. Project Management Foundation – Framework, Lifecycle & Organization ................................................. 37

2.1. What is a Project? ........................................................................................................................... 37

How Temporary? ........................................................................................................................................... 37

How Unique? ................................................................................................................................................. 37

Projects Drive Changes ................................................................................................................................... 38

Projects Enable business value creation. ......................................................................................................... 38

Progressive Elaboration ................................................................................................................................. 38

2.2. Projects vs. Operations .................................................................................................................... 39

2.3. What is Project Management?......................................................................................................... 40

2.4. Project Constraints .......................................................................................................................... 40

2.5. Project Stakeholders........................................................................................................................ 41

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2.6. Competencies of Project Manager ................................................................................................... 41

2.6.1. Interpersonal skills .......................................................................................................................... 42

2.7. Project Management Context: Related Endeavors ............................................................................ 42

2.7.1. Program.......................................................................................................................................... 42

2.7.2. Portfolio Management .................................................................................................................... 43

2.7.3. Sub-projects .................................................................................................................................... 43

2.7.4. Project Management Office (PMO) .................................................................................................. 43

2.8. Purpose of Project Management ...................................................................................................... 44

2.8.1. Intense competition in the global market place ................................................................................ 44

2.8.2. Availability of human knowledge ..................................................................................................... 44

2.8.3. Increased demand for goods and services globally ........................................................................... 44

2.8.4. Requirement of teams instead of individuals .................................................................................... 45

2.9. Factors that have impact on Projects ............................................................................................... 45

2.9.1. Organizational Culture and Style ..................................................................................................... 45

2.9.2. Organizational Structure ................................................................................................................. 45

2.9.2.1. Functional Organization ................................................................................................................ 46

2.9.2.2. Projectized Organization ............................................................................................................... 47

2.9.2.3. Matrix Organization ..................................................................................................................... 48

2.9.2.3.1. Weak Matrix ............................................................................................................................. 48

2.9.2.3.2. Balanced Matrix ........................................................................................................................ 49

2.9.2.3.3. Strong Matrix............................................................................................................................ 50

Comparison of Matrix Structures: ................................................................................................................... 51

2.9.2.4. Composite Organization ............................................................................................................... 52

2.10. Project & Development Life Cycles. .................................................................................................. 53

3. Processes, Process Groups and Knowledge Areas .................................................................................... 55

3.1. Process ........................................................................................................................................... 55

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3.2. Project Management Process Group ................................................................................................ 55

3.3. Project Management Knowledge Areas ........................................................................................... 57

4. Project Integration Management ............................................................................................................ 61

4.1.1. Develop Project Charter - Inputs ...................................................................................................... 62

4.1.1.2. Agreements .................................................................................................................................. 63

4.1.1.3. Enterprise Environmental Factors .................................................................................................. 63

4.1.1.4. Organizational Process Assets ....................................................................................................... 64

4.1.2. Develop Project Charter – Tools and Techniques ............................................................................... 64

4.1.2.2. Data Gathering............................................................................................................................. 65

4.1.2.3. Interpersonal & Team Skills........................................................................................................... 65

4.1.2.4. Meetings ...................................................................................................................................... 66

4.1.3. Develop Project Charter – Outputs ................................................................................................... 66

4.2. Develop Project Management Plan: ................................................................................................. 67

4.2.1. Develop Project Management Plan – Inputs ..................................................................................... 67

4.2.1.2. Output from other processes ......................................................................................................... 67

4.2.1.3. Enterprise Environmental Factor ................................................................................................... 67

4.2.1.4. Organizational Process Assets ....................................................................................................... 68

4.2.2. Develop Project Management Plan – Tools and Techniques .............................................................. 68

4.2.2.2. Data Gathering............................................................................................................................. 68

4.2.2.3. Interpersonal & Team Skills........................................................................................................... 68

4.2.2.4. Meetings ...................................................................................................................................... 68

4.2.3. Develop Project Management Plan – Output .................................................................................... 69

4.3. Direct and Manage Project Work: .................................................................................................... 69

4.3.1. Direct and Manage Project Work – Inputs ........................................................................................ 71

4.3.1.2. Project Documents........................................................................................................................ 71

4.3.1.3. Approved Change Request ............................................................................................................ 72

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4.3.1.4. Enterprise Environmental Factor ................................................................................................... 72

4.3.1.5. Organizational Process Assets ....................................................................................................... 72

4.3.2. Direct and Manage Project Work – Tools and Techniques ................................................................. 72

4.3.2.2. Project Management Information System ..................................................................................... 73

4.3.2.3. Meetings ...................................................................................................................................... 73

4.3.3. Direct and Manage Project Work – Outputs ..................................................................................... 73

4.3.3.1. Deliverables ................................................................................................................................. 73

4.3.3.2. Work Performance Data ............................................................................................................... 73

4.3.3.3. Issue Log ...................................................................................................................................... 73

4.3.3.3. Change Requests .......................................................................................................................... 75

4.3.3.4. Project Management Plan update ................................................................................................. 75

4.3.3.5. Project Document Update ............................................................................................................. 75

4.3.3.6. Organizational Process Assets Update ........................................................................................... 75

4.4. Manage Project Knowledge ............................................................................................................. 76

4.4.1 Manage Project Knowledge – Inputs ................................................................................................ 76

4.4.1.1 Project Management Plan ............................................................................................................. 76

4.4.1.2 Project Documents......................................................................................................................... 76

4.4.1.3 Deliverables .................................................................................................................................. 77

4.4.1.4 Enterprise Environmental Factors ................................................................................................... 77

4.4.1.5 Organizational Process Assets. ....................................................................................................... 77

4.4.2 Manage Project Knowledge – Tools & Techniques ............................................................................ 77

4.4.2.1 Expert Judgement .......................................................................................................................... 77

4.4.2.2 Knowledge Management ............................................................................................................... 77

4.4.2.3 Information Management ............................................................................................................. 77

4.4.2.4 Interpersonal & Team Skills............................................................................................................ 77

4.4.3 Manage Project Knowledge – Outputs ............................................................................................. 78

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4.4.3.1 Lessons Learned Register ............................................................................................................... 78

4.4.3.2 Project Management Plan Updates ................................................................................................ 78

4.4.3.3 Organizational Process Assets Updates .......................................................................................... 78

4.5. Monitor and Control Project Work: .................................................................................................. 78

4.5.1. Monitor & Control Project Work – Inputs ......................................................................................... 79

4.5.1.2. Project Document ......................................................................................................................... 80

4.5.1.3. Work Performance Information .................................................................................................... 80

4.5.1.4. Enterprise Environmental Factors .................................................................................................. 80

4.5.1.5. Organizational Process Assets ....................................................................................................... 81

4.5.2. Monitor & Control Project Work – Tools and Techniques .................................................................. 81

4.5.2.2. Analytical Techniques ................................................................................................................... 81

4.5.2.3. Project Management Information System ..................................................................................... 82

4.5.2.4. Meetings ...................................................................................................................................... 82

4.5.3. Monitor & Control Project Work – Outputs....................................................................................... 82

4.5.3.2. Work Performance Reports ........................................................................................................... 82

4.5.3.3. Project management Plan Update................................................................................................. 82

4.5.3.4. Project Document Update ............................................................................................................. 82

4.6. Perform Integrated Change Control ................................................................................................. 83

4.5.1.2. Project Documents........................................................................................................................ 83

4.5.1.3. Work Performance Reports ........................................................................................................... 84

4.5.1.4. Change requests ........................................................................................................................... 84

4.5.1.5. Enterprise Environmental factors .................................................................................................. 84

4.5.1.6. Organizational process assets ....................................................................................................... 84

4.5.2. Perform Integrated Change Control – Tools and Techniques ............................................................. 85

4.5.2.2. Meetings ...................................................................................................................................... 85

4.5.2.3. Change Control Tools .................................................................................................................... 85

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4.5.2.4. Data Analysis ............................................................................................................................... 85

4.5.3. Perform Integrated Change Control – Outputs ................................................................................. 86

4.5.3.2. Project Documents updates. ......................................................................................................... 86

4.5.3.3. Project Management Plan updates ............................................................................................... 86

4.5.3.4. Project Document Updates ........................................................................................................... 86

4.7. Close Project or Phase ..................................................................................................................... 86

4.7.1. Close Project or Phase – Inputs ........................................................................................................ 87

4.7.1.3. Project Documents........................................................................................................................ 87

4.7.1.4. Accepted Deliverables................................................................................................................... 87

4.7.1.5. Organizational process assets ....................................................................................................... 88

4.7.2. Close Project or Phase – Tools and Techniques ................................................................................. 88

4.7.2.2. Data Analysis ............................................................................................................................... 88

4.7.2.3. Meetings ...................................................................................................................................... 88

4.7.3. Close Project or Phase – Outputs ...................................................................................................... 88

4.7.3.2. Organizational Process Assets Updates ......................................................................................... 88

5. Project Scope Management .................................................................................................................... 91

5.1.1. Plan Scope Management – Inputs .................................................................................................... 92

5.1.1.2. Project Charter ............................................................................................................................. 93

5.1.1.3. Enterprise Environmental Factors .................................................................................................. 93

5.1.1.4. Organizational process assets ....................................................................................................... 93

5.1.2. Plan Scope Management – Tools and Techniques ............................................................................. 93

5.1.2.3. Meetings ...................................................................................................................................... 93

5.1.3. Plan Scope Management – Outputs ................................................................................................. 94

5.1.3.2. Requirements Management Plan .................................................................................................. 94

5.2. Collect Requirements ....................................................................................................................... 94

5.2.1.1 Project Charter .............................................................................................................................. 95

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5.2.1.2 Project Management Plan ............................................................................................................. 95

5.2.1.3. Project Documents........................................................................................................................ 96

5.2.1.4. Business Documents ..................................................................................................................... 96

5.2.1.5. Agreements .................................................................................................................................. 96

5.2.1.6. Enterprise Environmental Factors .................................................................................................. 96

5.2.1.7. Organizational Process Assets ....................................................................................................... 96

5.2.2. Collect Requirements – Tools and Techniques ................................................................................... 96

5.2.3. Collect Requirements – Outputs ....................................................................................................... 98

5.2.3.2. Requirements traceability matrix .................................................................................................. 98

5.3. Define Scope ................................................................................................................................... 98

5.3.1 Define Scope – Inputs ...................................................................................................................... 99

5.3.1.2 Project Charter .............................................................................................................................. 99

5.3.1.3 Project Management Plan ............................................................................................................. 99

5.3.1.4 Project Documents......................................................................................................................... 99

5.3.1.5 Enterprise Environmental Factors ................................................................................................... 99

5.3.1.6. Organizational process assets ....................................................................................................... 99

5.3.2. Define Scope – Tools and Techniques ............................................................................................. 100

5.3.2.2. Data Analysis ............................................................................................................................. 100

5.3.2.3. Decision Making ......................................................................................................................... 100

5.3.2.4. Interpersonal and team skills ...................................................................................................... 100

5.3.2.5. Product analysis ......................................................................................................................... 100

5.3.3. Define Scope – Outputs.................................................................................................................. 100

5.3.3.2. Project document updates .......................................................................................................... 101

5.4. Create WBS ................................................................................................................................... 101

5.4.1. Create WBS – Inputs ...................................................................................................................... 101

5.4.1.2. Project Documents...................................................................................................................... 102

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5.4.1.3. Enterprise Environmental Factors ................................................................................................ 102

5.4.1.4. Organizational process assets ..................................................................................................... 102

5.4.2. Create WBS – Tools and Techniques ............................................................................................... 102

5.4.2.2. Expert Judgment......................................................................................................................... 102

5.5. Validate Scope .............................................................................................................................. 104

5.5.2. Validate Scope – Tools and Techniques .......................................................................................... 106

5.5.2.2. Decision Making ......................................................................................................................... 106

5.5.3. Validate Scope – Outputs............................................................................................................... 106

5.5.3.2. Change requests ......................................................................................................................... 106

5.5.3.3. Work Performance Information .................................................................................................. 106

5.5.3.4. Project document updates .......................................................................................................... 107

5.6. Control Scope ................................................................................................................................ 107

5.6.1. Control Scope – Inputs ................................................................................................................... 107

5.6.1.2. Project Documents...................................................................................................................... 108

▪ Lesson Learned Register ........................................................................................................................ 108

▪ Requirement Documentation ................................................................................................................ 108

▪ Requirements traceability matrix .......................................................................................................... 108

5.6.1.3. Work performance data.............................................................................................................. 108

5.6.1.4. Organization process assets ........................................................................................................ 108

5.6.2. Control Scope – Tools and Techniques ............................................................................................ 108

5.6.3. Control Scope – Outputs ................................................................................................................ 109

5.6.3.2. Change requests ......................................................................................................................... 109

5.6.3.3. Project management plan updates.............................................................................................. 109

5.6.3.4. Project document updates .......................................................................................................... 109

6. Project Schedule Management ............................................................................................................. 111

6.1 Plan Schedule Management .......................................................................................................... 112

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6.1.1. Plan Schedule Management – Inputs ............................................................................................. 112

6.1.1.2. Project Charter ........................................................................................................................... 112

6.1.1.3. Enterprise Environmental Factors ................................................................................................ 112

6.1.1.4. Organizational Process Assets ..................................................................................................... 113

6.1.2. Plan Schedule Management – Tools and Techniques ...................................................................... 113

6.1.2.2. Data Analysis ............................................................................................................................. 113

6.1.2.3. Meetings .................................................................................................................................... 113

6.1.3. Plan Schedule Management – Outputs........................................................................................... 114

6.2. Define Activities ............................................................................................................................ 114

6.2.1 Define Activities – Inputs ............................................................................................................... 115

6.2.1.3. Project Management Plan. ......................................................................................................... 115

6.2.1.4. Enterprise Environmental Factors ................................................................................................ 115

6.2.1.5. Organizational Process Assets ..................................................................................................... 115

6.2.2. Define Activities – Tools and Techniques ........................................................................................ 115

6.2.2.2. Rolling Wave Planning ................................................................................................................ 115

6.2.2.3. Expert Judgment......................................................................................................................... 115

6.2.3. Define Activities – Outputs ............................................................................................................ 116

6.2.3.4 Change Request ........................................................................................................................... 117

6.2.3.5 Project Management Plan Updates .............................................................................................. 117

6.3. Sequence Activities ........................................................................................................................ 117

6.3.1 Sequence Activities – Inputs .......................................................................................................... 118

6.3.1.1 Project Management Plan ........................................................................................................... 118

6.3.1.3. Project Documents...................................................................................................................... 118

6.3.1.4. Enterprise Environmental Factors ................................................................................................ 118

6.3.1.5. Organizational Process Assets ..................................................................................................... 119

6.3.2. Sequence Activities – Tools & Techniques ....................................................................................... 119

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6.3.2.2. Dependency determination & integration ................................................................................... 119

6.3.2.3. Leads and Lags ........................................................................................................................... 120

6.3.3. Sequence Activities – Outputs ........................................................................................................ 120

6.3.3.2. Project document updates .......................................................................................................... 120

6.4. Estimate Activity Duration ............................................................................................................. 121

6.4.2. Estimate Activity Durations – Inputs .............................................................................................. 121

6.4.1.2. Project Management Plan .......................................................................................................... 121

6.4.1.3. Project Documents...................................................................................................................... 121

6.4.1.4. Enterprise Environmental Factors ................................................................................................ 122

6.4.1.5. Organizational Process Assets ..................................................................................................... 122

6.4.3. Estimate Activity Durations – Tools and Techniques ....................................................................... 123

6.4.3.2. Analogous estimating ................................................................................................................. 123

6.4.3.3. Parametric estimating ................................................................................................................ 123

6.4.3.4. Three-point estimates ................................................................................................................. 123

6.4.3.5. Bottom up estimating ................................................................................................................. 124

6.4.3.6. Data Analysis ............................................................................................................................. 124

6.4.3.7. Decision making ......................................................................................................................... 124

6.4.3.8. Meetings .................................................................................................................................... 125

6.4.4. Estimate Activity Durations – Outputs............................................................................................ 125

6.4.4.2. Basis of estimates ....................................................................................................................... 125

6.4.4.3. Project document updates .......................................................................................................... 125

6.5. Develop Schedule .......................................................................................................................... 125

6.6.1. Develop Schedule – Inputs ............................................................................................................. 126

6.6.1.2. Project Documents...................................................................................................................... 126

6.6.1.3. Agreements ................................................................................................................................ 128

6.6.1.4. Enterprise environmental factors ................................................................................................ 128

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6.6.1.5. Organizational process assets ..................................................................................................... 128

6.6.2. Develop Schedule – Tools and Techniques ...................................................................................... 128

6.6.2.2. Critical Path Method (CPM)......................................................................................................... 128

6.6.2.3. Critical Chain Method ................................................................................................................. 110

6.6.2.4. Resource Optimization Techniques .............................................................................................. 110

6.6.2.5. Data Analysis ............................................................................................................................. 110

6.6.2.6. Modeling Techniques .................................................................................................................. 110

6.6.2.7. Leads and Lags ........................................................................................................................... 110

6.6.2.8. Schedule compression ................................................................................................................. 111

6.6.2.9. Project Management Information System(PMI®S) ....................................................................... 111

6.6.2.10. Agile Release Planning ............................................................................................................. 111

6.6.3. Develop Schedule – Outputs .......................................................................................................... 111

6.6.3.2. Project Schedule ......................................................................................................................... 112

6.6.3.3. Schedule data ............................................................................................................................. 112

6.6.3.4. Project Calendars........................................................................................................................ 112

6.6.3.5. Change Requests ........................................................................................................................ 112

6.6.3.6. Project management Plan Update............................................................................................... 112

6.6.3.7. Project documents updates ......................................................................................................... 113

6.6. Control Schedule ........................................................................................................................... 113

6.7.1. Control Schedule – Inputs .............................................................................................................. 113

6.7.1.2. Project Documents ...................................................................................................................... 114

6.7.1.3. Work performance Data ............................................................................................................. 114

6.7.1.4. Organizational process assets ..................................................................................................... 114

6.7.2. Control Schedule – Tools and Techniques ....................................................................................... 115

6.7.2.2. Critical Path Method ................................................................................................................... 115

6.7.2.3. Project management Information System ................................................................................... 115

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6.7.2.4. Resource Optimization Techniques .............................................................................................. 115

6.7.2.5. Leads and Lags ........................................................................................................................... 116

6.7.2.6. Schedule compression ................................................................................................................. 116

6.7.3. Control Schedule – Outputs ............................................................................................................ 116

6.7.3.2. Schedule Forecast ....................................................................................................................... 117

6.7.3.4. Project management plan updates.............................................................................................. 117

6.7.3.5. Project documents updates ......................................................................................................... 117

7. Project Cost Management..................................................................................................................... 119

7.1 Plan Cost Management ................................................................................................................. 119

7.1.1. Plan Cost Management – Inputs .................................................................................................... 120

7.1.1.3. Enterprise Environmental Factors ................................................................................................ 120

7.1.1.4. Organizational Process Assets ..................................................................................................... 120

7.1.2. Plan Cost Management – Tools and Techniques ............................................................................. 121

7.1.2.2. Data Analysis ............................................................................................................................. 121

7.1.2.3. Meetings .................................................................................................................................... 121

7.1.3. Plan Cost Management – Outputs.................................................................................................. 121

7.2. Estimate Cost ................................................................................................................................ 121

7.2.1. Estimate Cost – Inputs ................................................................................................................... 122

7.2.1.2. Project Documents...................................................................................................................... 123

7.2.1.3. Enterprise Environmental Factors ................................................................................................ 123

7.2.1.4. Organizational Process Assets ..................................................................................................... 123

7.2.2. Estimate Cost – Tools and Techniques ............................................................................................ 123

7.2.2.2. Analogous estimating ................................................................................................................. 123

7.2.2.3. Parametric estimating ................................................................................................................ 124

7.2.2.4. Bottom-up Estimating................................................................................................................. 124

7.2.2.5. Three-point estimates ................................................................................................................. 124

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7.2.2.6. Data Analysis ............................................................................................................................. 124

7.2.2.7. Project Management Information System ................................................................................... 125

7.2.2.8. Decision making ......................................................................................................................... 125

7.2.3. Estimate Cost – Outputs ................................................................................................................ 125

7.2.3.2. Basis of Estimate ........................................................................................................................ 125

7.2.3.3. Project Documents Updates. ....................................................................................................... 125

7.3. Determine Budget ......................................................................................................................... 126

7.3.1. Determine Budget – Inputs ............................................................................................................ 126

7.3.1.2. Project Documents...................................................................................................................... 127

7.3.1.3. Business Documents ................................................................................................................... 127

7.3.1.4. Agreements ................................................................................................................................ 128

7.3.1.5. Organizational Process Assets ..................................................................................................... 128

7.3.2. Determine Budget – Tools and Techniques ..................................................................................... 128

7.3.2.1. Expert Judgment......................................................................................................................... 128

7.3.2.3. Data Analysis ............................................................................................................................. 128

7.3.2.4. Historical Information Review ..................................................................................................... 128

7.3.2.5. Funding Limit Reconciliation ....................................................................................................... 128

7.3.2.6. Financing ................................................................................................................................... 129

7.3.3. Determine Budget – Outputs ......................................................................................................... 129

7.3.3.2. Project Funding Requirements .................................................................................................... 129

7.3.3.3. Project Document Updates ......................................................................................................... 129

7.4. Control Costs ................................................................................................................................. 129

7.4.1 Control Costs – Inputs .................................................................................................................... 130

7.4.1.3. Project Management Plan .......................................................................................................... 130

7.4.1.4. Project Documents...................................................................................................................... 130

7.4.1.5. Work Performance Data ............................................................................................................. 130

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7.4.1.6. Organizational Process Assets ..................................................................................................... 130

7.4.2. Control Costs – Tools and Techniques ............................................................................................. 130

7.4.2.3. To-Complete Performance Index (TCPI)........................................................................................ 132

7.4.2.4. Project Management Information System ................................................................................... 132

7.4.2.5. Reserve Analysis ......................................................................................................................... 132

7.4.3. Control Costs – Outputs ................................................................................................................. 133

7.4.3.2. Cost Forecasts ............................................................................................................................ 133

7.4.3.3. Change Requests ........................................................................................................................ 133

7.4.3.4. Project Management Plan Updates ............................................................................................. 133

7.4.3.5. Project Document Updates ......................................................................................................... 133

8. Project Quality Management ................................................................................................................ 135

8.1 Plan Quality Management............................................................................................................. 135

8.1.1. Plan Quality Management – Inputs................................................................................................ 137

8.1.1.3. Project Documents...................................................................................................................... 138

8.1.1.4. Enterprise Environmental Factor ................................................................................................. 138

8.1.1.5. Organizational Process Assets ..................................................................................................... 138

8.1.2. Plan Quality Management – Tools and Techniques ......................................................................... 138

8.1.2.4. Data Representation................................................................................................................... 139

8.1.2.5. Test and Inspection Planning ...................................................................................................... 139

8.1.2.6. Meetings .................................................................................................................................... 140

8.1.3. Plan Quality Management – Outputs ............................................................................................. 140

8.1.3.2. Quality Metrics ........................................................................................................................... 140

8.1.3.3. Project Management Plan Updates. ............................................................................................ 140

8.1.3.4. Project document Updates .......................................................................................................... 140

8.2. Manage Quality ............................................................................................................................ 140

8.2.1. Manage Quality – Inputs ............................................................................................................... 141

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8.2.1.2. Project Documents...................................................................................................................... 141

8.2.1.3. Organizational Process Assets ..................................................................................................... 141

8.2.2. Manage Quality – Tools and Techniques ........................................................................................ 142

8.2.2.5. Quality Audits ............................................................................................................................ 144

8.2.3. Manage Quality – Outputs ............................................................................................................ 144

8.2.3.4. Project Management Plan Updates ............................................................................................. 145

8.2.3.5. Project document updates .......................................................................................................... 145

8.3. Control Quality .............................................................................................................................. 145

8.3.1. Quality Control – Inputs ................................................................................................................. 146

8.3.1.1 Project Management Plan. .......................................................................................................... 146

8.3.1.2 Project Documents....................................................................................................................... 146

8.3.1.3. Work Performance Data ............................................................................................................. 146

8.3.1.4. Approved Change Requests ......................................................................................................... 146

8.3.1.5. Deliverables ............................................................................................................................... 146

8.3.1.6. Enterprise Environmental Factors ................................................................................................ 146

8.3.1.7. Organizational Process Assets ..................................................................................................... 146

8.3.2. Control Quality – Tools and Techniques .......................................................................................... 147

8.3.2.3. Inspection................................................................................................................................... 147

8.3.2.6. Meetings .................................................................................................................................... 148

8.3.3. Control Quality – Outputs .............................................................................................................. 148

8.3.3.2. Verified Deliverables................................................................................................................... 148

8.3.3.3. Work Performance Information .................................................................................................. 148

8.3.3.4. Change Requests ........................................................................................................................ 148

8.3.3.5. Project Management Plan Updates ............................................................................................. 149

8.3.3.6. Project Document Updates ......................................................................................................... 149

9. Project Resource Management ............................................................................................................. 141

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9.1. Plan Resource Management .......................................................................................................... 142

9.1.1. Plan Resource Management – Inputs ............................................................................................. 142

9.1.1.3. Project Documents...................................................................................................................... 143

9.1.1.4. Enterprise Environmental Factors ................................................................................................ 143

9.1.1.5. Organizational Process Assets ..................................................................................................... 143

9.1.2. Plan Resource Management – Tools and Techniques ...................................................................... 143

9.1.2.1. Expert Judgment......................................................................................................................... 143

9.1.2.3. Organizational Theory ................................................................................................................ 144

9.1.2.4. Meetings .................................................................................................................................... 144

9.1.3. Plan Resource Management – Outputs .......................................................................................... 144

9.2. Estimate Activity Resource............................................................................................................. 145

9.2.2. Estimate Activity Resource – Inputs................................................................................................ 146

9.2.3. Estimate Activity Resource – Tools & Techniques ............................................................................ 146

9.2.4. Estimate Activity Resource – Outputs ............................................................................................. 147

9.3. Acquire Resources ......................................................................................................................... 147

9.2.5. Acquire Resource – Inputs .............................................................................................................. 148

9.2.6. Acquire Resource – Tools and Techniques ...................................................................................... 148

9.2.6.2. Negotiation ................................................................................................................................ 149

9.2.6.3. Acquisition ................................................................................................................................. 149

9.2.6.4. Virtual Teams ............................................................................................................................. 149

9.2.6.5. Multi-criteria decision analysis .................................................................................................... 149

9.2.7. Acquire Resource – Outputs .......................................................................................................... 149

9.2.7.2. Resource Calendars .................................................................................................................... 149

9.2.7.3. Project Management Plan Updates ............................................................................................. 150

9.4. Develop Team ............................................................................................................................... 150

9.4.1. Develop Team – Inputs .................................................................................................................. 151

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9.4.1.2. Project Staff Assignments ........................................................................................................... 151

9.4.1.3. Resource Calendars .................................................................................................................... 151

9.4.2. Develop Team – Tools and Techniques ........................................................................................... 151

9.4.2.2. Training...................................................................................................................................... 152

9.4.2.3. Team-Building Activities ............................................................................................................. 152

9.4.2.4. Ground Rules .............................................................................................................................. 152

9.4.2.5. Co-location ................................................................................................................................. 152

9.4.2.6. Recognition and Rewards ........................................................................................................... 152

9.4.2.7. Personnel assessment tools ......................................................................................................... 153

9.4.3. Develop Project Team – Outputs .................................................................................................... 153

9.4.3.2. Enterprise Environmental Factors Updates .................................................................................. 153

9.5. Manage Team ............................................................................................................................... 153

9.5.1 Manage Project Team – Inputs ...................................................................................................... 154

9.5.1.2 Project Staff Assignments ............................................................................................................ 154

9.5.1.3 Team Performance Assessments .................................................................................................. 154

9.5.1.4 Issue Log ..................................................................................................................................... 154

9.5.1.5 Work Performance Reports .......................................................................................................... 155

9.5.1.6 Organizational Process Assets ...................................................................................................... 155

9.5.2 Manage Team – Tools and Techniques ........................................................................................... 155

9.5.2.2 Project Performance Appraisals ................................................................................................... 155

9.5.2.3 Conflict Management .................................................................................................................. 155

9.5.2.4 Interpersonal Skills ...................................................................................................................... 156

9.5.3 Manage Team – Outputs ............................................................................................................... 156

9.5.3.2 Project Management Plan Updates .............................................................................................. 156

9.5.3.3 Project Documents Update........................................................................................................... 156

9.5.3.4 Enterprise Environmental Factors Updates ................................................................................... 156

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9.5.3.5 Organizational Process Assets Updates ........................................................................................ 156

9.6. Control Resource ........................................................................................................................... 157

9.6.1 Control Resource – Inputs ............................................................................................................. 157

9.6.1.1 Project Management Plan ........................................................................................................... 157

9.6.1.2 Project Document ........................................................................................................................ 157

9.6.1.3 Work Performance Data .............................................................................................................. 157

9.6.1.4 Agreement .................................................................................................................................. 157

9.6.1.5 Organizational Process Assets Updates ........................................................................................ 157

9.6.2 Control Resource – Tools & Techniques.......................................................................................... 157

9.6.2.1 Data Analysis .............................................................................................................................. 157

9.6.2.2 Interpersonal & Team Skills.......................................................................................................... 157

9.6.2.3 Project Management Information System .................................................................................... 157

9.6.3 Control Resource - Outputs ............................................................................................................ 157

9.6.3.1 Work Performance Information.................................................................................................... 157

9.6.3.2 Change Requests ......................................................................................................................... 158

9.6.3.3 Project Management Plan updates .............................................................................................. 158

9.6.3.4 Project Documents Updates ......................................................................................................... 158

10. Project Communications Management .................................................................................................. 159

10.1. Plan communication Management ................................................................................................ 159

10.1.1. Plan Communications Management – Inputs ................................................................................ 160

10.1.1.2. Stakeholders Register ............................................................................................................... 160

10.1.1.3. Enterprise environmental factors .............................................................................................. 160

10.1.1.4. Organizational process assets ................................................................................................... 160

10.1.2. Plan Communications Management – Tools and Techniques ......................................................... 161

10.1.2.2. Communication Technology ..................................................................................................... 161

10.1.2.3. Communication Models ............................................................................................................ 161

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10.1.2.4. Communication Methods .......................................................................................................... 161

10.1.2.5. Meetings .................................................................................................................................. 162

10.1.3. Plan Communications Management – Outputs ............................................................................. 162

10.1.3.2. Project Documents Update ....................................................................................................... 162

10.2. Manage Communications .............................................................................................................. 162

10.2.1. Manage Communications – Inputs................................................................................................ 163

10.2.1.2. Work performance Reports ....................................................................................................... 163

10.2.1.3. Enterprise environmental factors .............................................................................................. 163

10.2.1.4. Organizational process assets ................................................................................................... 164

10.2.2. Manage Communications – Tools and Techniques......................................................................... 164

10.2.2.2. Communication Methods .......................................................................................................... 164

10.2.2.3. Project Information Management Systems ................................................................................ 164

10.2.2.4. Performance Reporting ............................................................................................................. 165

10.2.3. Manage Communications – Outputs ............................................................................................. 165

10.2.3.2. Project Management plan Updates ........................................................................................... 165

10.2.3.3. Project document updates ........................................................................................................ 165

10.2.3.4. Organizational process assets Updates...................................................................................... 165

10.3. Monitor Communications .............................................................................................................. 166

10.3.1. Control Communications – Inputs ................................................................................................. 166

10.3.1.2. Project Communications ........................................................................................................... 166

10.3.1.3. Issue Log .................................................................................................................................. 167

10.3.1.4. Work Performance Data ........................................................................................................... 167

10.3.1.5. Organizational process assets ................................................................................................... 167

10.3.2. Control Communications – Tools & Techniques ............................................................................. 167

10.3.2.2. Expert Judgment....................................................................................................................... 167

10.3.2.3. Meetings .................................................................................................................................. 167

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10.3.3. Control Communications – Outputs .............................................................................................. 167

10.3.3.2. Change Requests ...................................................................................................................... 168

10.3.3.3. Project Management Plan Updates ........................................................................................... 168

11. Project Risk Management ..................................................................................................................... 170

11.1 Plan Risk Management.................................................................................................................. 171

11.1.1. Plan Risk Management – Inputs ................................................................................................... 172

11.1.1.2. Project Charter ......................................................................................................................... 172

11.1.1.3. Stakeholders Register ............................................................................................................... 172

11.1.1.4. Enterprise environmental factor ................................................................................................ 172

11.1.1.5. Organizational process assets ................................................................................................... 172

11.1.2. Plan Risk Management – Tools and Techniques ............................................................................ 173

11.1.2.2. Expert Judgment....................................................................................................................... 173

11.1.2.3. Meetings .................................................................................................................................. 173

11.1.3. Plan Risk Management – Outputs ................................................................................................. 173

11.2. Identify Risk .................................................................................................................................. 175

11.2.1.2. Cost management plan ............................................................................................................. 175

11.2.1.3. Schedule management plan ...................................................................................................... 175

11.2.1.4. Quality management plan ........................................................................................................ 176

11.2.1.5. Human Resource Management plan.......................................................................................... 176

11.2.1.6. Scope baseline .......................................................................................................................... 176

11.2.1.7. Activity cost estimates .............................................................................................................. 176

11.2.1.8. Activity duration estimates ....................................................................................................... 176

11.2.1.9. Stakeholder register ................................................................................................................. 176

11.2.1.10. Project documents .................................................................................................................. 176

11.2.1.11. Procurement Documents......................................................................................................... 176

11.2.1.12. Enterprise environmental factors ............................................................................................ 176

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11.2.1.13. Organizational process assets ................................................................................................. 177

11.2.2. Identify Risk – Tools and Techniques ............................................................................................. 177

11.2.2.2. Information gathering techniques ............................................................................................. 177

11.2.2.3. Checklist analysis ...................................................................................................................... 177

11.2.2.4. Assumptions analysis ................................................................................................................ 178

11.2.2.5. Diagramming techniques .......................................................................................................... 178

11.2.2.6. SWOT analysis .......................................................................................................................... 178

11.2.2.7. Expert judgment ....................................................................................................................... 178

11.2.3. Identify Risk – Outputs ................................................................................................................. 178

11.3. Perform Qualitative Risk Analysis .................................................................................................. 179

11.3.1 Qualitative Risk Analysis – Inputs.................................................................................................. 179

11.3.1.2. Scope Baseline .......................................................................................................................... 179

11.3.1.3. Risk register ............................................................................................................................. 179

11.3.1.4. Enterprise Environment Factors................................................................................................. 180

11.3.1.5. Organizational process assets ................................................................................................... 180

11.3.3. Perform Qualitative Risk Analysis – Tools and Techniques ............................................................. 180

11.3.3.2. Probability and impact matrix ................................................................................................... 180

11.3.3.3. Risk data quality assessment .................................................................................................... 181

11.3.3.4. Risk categorization ................................................................................................................... 181

11.3.3.5. Risk urgency assessment ........................................................................................................... 181

11.3.3.6. Expert judgment ....................................................................................................................... 181

11.3.4. Perform Qualitative Risk Analysis – Outputs ................................................................................. 181

11.4. Perform Quantitative Risk Analysis ................................................................................................ 181

11.4.2 Perform Quantitative Risk Analysis – Inputs .................................................................................. 182

11.4.1.4. Enterprise Environmental Factors .............................................................................................. 183

11.4.1.5. Organizational process assets ................................................................................................... 183

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11.4.3. Perform Quantitative Risk Analysis – Tools and Techniques ........................................................... 183

11.4.3.2. Quantitative risk analysis and modeling techniques................................................................... 183

11.4.3.3. Expert judgment ....................................................................................................................... 180

11.4.4. Perform Quantitative Risk Analysis – Outputs ............................................................................... 180

11.5. Plan Risk Responses....................................................................................................................... 180

11.5.1. Plan Risk Responses – Inputs ........................................................................................................ 181

11.5.1.2. Risk register ............................................................................................................................. 181

11.5.2. Plan Risk Responses – Tools and Techniques ................................................................................. 181

11.5.2.2. Strategies for positive risks or opportunities .............................................................................. 182

11.5.2.3. Contingent response strategies ................................................................................................. 182

11.5.2.4. Expert judgment ....................................................................................................................... 182

11.5.3. Plan Risk Responses – Outputs...................................................................................................... 182

11.5.3.2. Project document updates ........................................................................................................ 183

11.6. Implement Risk Responses ............................................................................................................. 183

11.6.1. Implement Risk Responses – Inputs.............................................................................................. 184

11.6.2. Implement Risk Responses – Tools & Techniques .......................................................................... 184

11.6.3. Implement Risk Responses – Outputs ........................................................................................... 185

11.7. Monitor Risks ................................................................................................................................ 185

11.6.2. Monitor Risks – Inputs ................................................................................................................. 186

11.6.2.2. Risk Register ............................................................................................................................. 186

11.6.2.3. Work Performance Data ........................................................................................................... 186

11.6.2.4. Work Performance reports ........................................................................................................ 186

11.6.3. Monitor Risks – Tools and Techniques ........................................................................................... 186

11.6.3.2. Risk audits ................................................................................................................................ 186

11.6.3.3. Variance and trend analysis ...................................................................................................... 186

11.6.3.4. Technical performance measurement ........................................................................................ 187

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11.6.3.5. Reserve analysis ....................................................................................................................... 187

11.6.3.6. Meetings .................................................................................................................................. 187

11.6.4. Monitor Risks – Outputs ............................................................................................................... 187

11.6.4.2. Changes requests...................................................................................................................... 187

11.6.4.3. Project management plan updates............................................................................................ 187

11.6.4.4. Project Documents updates....................................................................................................... 187

11.6.4.5. Organizational Process Assets Updates ..................................................................................... 187

12. Project Procurement Management ....................................................................................................... 189

12.1.1. Plan Procurement Management – Inputs ...................................................................................... 190

12.1.1.2. Requirements documentation ................................................................................................... 190

12.1.1.3. Risk register ............................................................................................................................. 190

12.1.1.4. Activity resource requirements .................................................................................................. 191

12.1.1.5. Project schedule ....................................................................................................................... 191

12.1.1.6. Activity cost estimates .............................................................................................................. 191

12.1.1.7. Stakeholder Register................................................................................................................. 191

12.1.1.8. Enterprise environmental factors .............................................................................................. 191

12.1.1.9. Organizational process assets ................................................................................................... 191

12.1.2. Plan Procurement Management – Tools and Techniques ............................................................... 192

12.1.2.2. Expert judgment ....................................................................................................................... 192

12.1.2.3. Market Research ...................................................................................................................... 192

12.1.2.4. Meetings .................................................................................................................................. 192

12.1.3. Plan Procurement Management – Outputs ................................................................................... 193

12.1.3.2. Procurement statements of work .............................................................................................. 193

12.1.3.3. Procurement documents (RFP/RFI) ............................................................................................ 194

12.1.3.4. Source selection criteria ............................................................................................................ 194

12.1.3.5. Make-or-buy decisions .............................................................................................................. 194

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12.1.3.6. Change requests ....................................................................................................................... 195

12.1.3.7. Project Documents Update ............................................................................................................. 195

12.2. Conduct Procurements ......................................................................................................................... 195

12.2.1. Conduct Procurements – Inputs .................................................................................................... 195

12.2.1.2. Procurement documents ........................................................................................................... 196

12.2.1.3. Source selection criteria ............................................................................................................ 196

12.2.1.4. Seller proposals ........................................................................................................................ 196

12.2.1.5. Project documents .................................................................................................................... 196

12.2.1.6. Make-or-buy decisions .............................................................................................................. 196

12.2.1.7. Procure Statement Of Work ...................................................................................................... 196

12.2.1.8. Organizational process assets ................................................................................................... 196

12.2.2. Conduct Procurements – Tools and Techniques ............................................................................. 196

12.2.2.2. Proposal evaluation techniques ................................................................................................ 197

12.2.2.3. Independent estimates ............................................................................................................. 197

12.2.2.4. Expert judgment ....................................................................................................................... 197

12.2.2.5. Advertising ............................................................................................................................... 197

12.2.2.6. Analytical Techniques ............................................................................................................... 197

12.2.2.7. Procurement negotiations......................................................................................................... 197

12.2.3. Conduct Procurements – Outputs.................................................................................................. 198

12.2.3.2. Agreements .............................................................................................................................. 198

12.2.3.3. Resource calendars ................................................................................................................... 198

12.2.3.4. Change requests ....................................................................................................................... 198

12.2.3.5. Project management plan updates............................................................................................ 198

12.2.3.6. Project document updates ............................................................................................................. 198

12.3. Control Procurements.......................................................................................................................... 199

12.3.1. Control Procurements – Inputs ..................................................................................................... 199

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12.3.1.2. Procurement documents ........................................................................................................... 199

12.3.1.3. Agreements .............................................................................................................................. 199

12.3.1.4. Approved change requests ........................................................................................................ 200

12.3.1.5. Work Performance reports ........................................................................................................ 200

12.3.1.6. Work performance Data ........................................................................................................... 200

12.3.2. Control Procurements – Tools and Techniques............................................................................... 200

12.3.2.2. Procurement performance reviews ............................................................................................ 200

12.3.2.3. Inspections and audits .............................................................................................................. 200

12.3.2.4. Performance reporting.............................................................................................................. 200

12.3.2.5. Payment systems ...................................................................................................................... 201

12.3.2.6. Claims administration ............................................................................................................... 201

12.3.2.7. Records management system.................................................................................................... 201

12.3.3. Control Procurements – Outputs ................................................................................................... 201

12.3.3.2. Change requests ....................................................................................................................... 201

12.3.3.3. Project management plan updates............................................................................................ 202

12.3.3.4. Project documentation Update ................................................................................................. 202

12.3.3.5. Organizational process assets updates ...................................................................................... 202

13. Project Stakeholders Management ....................................................................................................... 204

13.1.1 Identify Stakeholder ..................................................................................................................... 204

13.1.1. Identify Stakeholders – Inputs ...................................................................................................... 205

13.1.1.2. Business Documents ................................................................................................................. 205

13.1.1.3. Project Management Plan ........................................................................................................ 205

13.1.1.4. Project Documents.................................................................................................................... 206

13.1.1.5. Agreements .............................................................................................................................. 206

13.1.1.6. Enterprise environmental factors .............................................................................................. 206

13.1.1.7. Organizational process assets ................................................................................................... 206

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13.1.2. Identify Stakeholders – Tools and Techniques ............................................................................... 206

13.1.2.4. Data Representation................................................................................................................. 207

13.1.2.5. Meetings .................................................................................................................................. 207

13.1.3. Identify Stakeholders – Outputs .................................................................................................... 207

13.2. Plan Stakeholder Engagement ....................................................................................................... 208

13.2.1. Plan Stakeholder Engagement – Inputs ......................................................................................... 209

13.2.1.3. Project Documents.................................................................................................................... 209

13.2.1.4. Agreements .............................................................................................................................. 210

13.2.1.5. Enterprise environmental factors .............................................................................................. 210

13.2.1.6. Organizational process assets ................................................................................................... 210

13.2.2. Plan Stakeholder Engagement – Tools and Techniques .................................................................. 210

13.2.2.2. Meetings .................................................................................................................................. 210

13.2.2.3. Data Gathering......................................................................................................................... 210

13.2.2.4. Data Analysis ........................................................................................................................... 210

13.2.2.5. Decision Making ....................................................................................................................... 212

13.2.2.6. Data Representation................................................................................................................. 212

13.2.2.7. Meetings .................................................................................................................................. 212

13.2.3. Plan Stakeholder Engagement - Outputs....................................................................................... 212

13.3. Manage Stakeholder Engagement ................................................................................................. 212

13.3.1. Manage Stakeholder Engagement – Inputs ................................................................................... 213

13.3.1.2. Project Documents.................................................................................................................... 213

13.3.1.3. Enterprise Environmental Factors .............................................................................................. 214

13.3.1.4. Organizational process assets ................................................................................................... 214

13.3.2. Manage Stakeholder Engagement – Tools and Techniques ............................................................ 214

13.3.2.3. Interpersonal & Team Skills....................................................................................................... 214

13.3.2.4. Ground rules............................................................................................................................. 214

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13.3.2.5. Meetings .................................................................................................................................. 216

13.3.3. Manage Stakeholder Engagement – Outputs ................................................................................ 216

13.3.3.1. Change Requests ...................................................................................................................... 216

13.3.3.2. Project Management Plan Updates ........................................................................................... 216

13.3.3.3. Project Documents Update ....................................................................................................... 216

13.4. Monitor Stakeholder Engagement ................................................................................................. 216

13.4.1. Monitor Stakeholder Engagement – Inputs ................................................................................... 217

13.4.1.2. Work Performance Data ........................................................................................................... 217

13.4.1.3. Project Documents.................................................................................................................... 217

13.4.1.4. Enterprise Environmental Factors .............................................................................................. 217

13.4.1.5. Organizational Process Assets ................................................................................................... 218

13.4.2. Control Stakeholder Engagement – Tools and Techniques ............................................................. 218

13.4.2.6. Meetings .................................................................................................................................. 218

13.4.3. Monitor Stakeholder Engagement – Outputs ................................................................................ 219

13.4.3.2. Change requests ....................................................................................................................... 219

13.4.3.3. Project management plan updates............................................................................................ 219

13.4.3.4. Project documents updates ....................................................................................................... 219

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Chapter 1: PMP® Examination - At a

Glance

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1. PMP® Examination - At a Glance
This Chapter discusses on how a participant of PMP® Exam Prep Program would approach the PMP®
examination and what are the key information they need to know.

1.1. About PMI® and PMP®

→ Project Management Institute is the world's leading not-for-profit professional membership
association for the project, program and portfolio management profession. Founded in 1969,
PMI® delivers value for more than 2.9 million professionals working in nearly every country in
the world through global advocacy, collaboration, education and research. PMI® advances
careers, improves organizational success and further matures the profession of project
management through its globally recognized standards, certifications, resources, tools
academic research, publications, professional development courses, and networking
opportunities.

1.2. PMP® Exam Preparation Program Objective

→ Get introduced to the principles of Project Management as per PMI®’s Project
Management Body of Knowledge (PMBOK® Guide - 6th Edition)

→ Understand the best practices of Project Management as per PMBOK® Guide - 6th Edition

→ Understand how to apply this knowledge to day-to-day project management activities

→ Get introduced to the process of earning PMP® certification

→ Get familiar with the multiple choice questions in line with the PMP® Certification process

→ Gain the confidence to face the PMP® examination challenge

1.3. PMP® Exam Prerequisites

→ Candidates can apply for the examination under any of the below mentioned categories based on
their educational qualification:

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Project Management Project Management

Categories Educational Background
Experience Education

→ Bachelor‘s Degree or 36+ Months

Category 1 35 Contact Hours
→ Global Equivalent 4,500+ Hours

→ High School Diploma

60+ Months
Category 2 → Associate‘s Degree or 35 Contact Hours
7,500+ Hours
→ Global Equivalent

→ Project management experience mentioned in both the categories must be from unique and non-
overlapping projects

→ Within the specified 4,500/7,500 hours, experience in all 5 performance domain is required
(experience need not be in all 5 performance domains on a single project)

→ Candidates can satisfy Project Management Education requirement by successfully completing the
training sessions through PMIs Global Registered Education Provider.

1.4.PMP® Exam Fee

→ Below table describes the fee structure for various categories:

Exam Category Fee for Members Fee for Non Members

Computer-based Testing USD 405.00 USD 555.00

Paper-based Testing USD 250.00 USD 400.00

Re-examination Computer-
USD 275.00 USD 375.00
based

Re-examination Paper-based USD 150.00 USD 300.00

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→ We recommend candidates to become a member of PMI® first, and then apply for PMP® Certification
because as a PMI® member receive Exclusive Members Discount on PMP® exam fee.

→ All candidates will be given one year to take the examination. This one-year eligibility
period begins when a candidate’s application is approved.

→ Candidates will have three opportunities to take and pass the PMP® examination within their one
year eligibility period. If candidates do not succeed in 3 attempt, candidates will have to wait one year
from their unsuccessful attempt before being permitted to take the exam again.

→ Please log on to Membership section at www.PMI®.org and get a complete list of valuable benefits
that help to promote your professional and career development.

1.5. Continuing Certification Requirements

→ Those who have been granted the PMP® credential must demonstrate ongoing professional
commitment to the field of project management by satisfying PMI®s Continuing Certification
Requirements Program (CCR). The purpose of the Continuing Certification Requirements Program is
to:

1) Sustain the PMP® as a global credential.

2) Enhance the ongoing professional development of PMP®s

3) Encourage and recognize individualized learning opportunities

4) Offer a standardized and objective mechanism for attaining and recording professional
development activities

→ The CCR program supports the ongoing professional development of PMI® certified PMP®s and the
maintenance of PMP® Certification.

→ PMP®s must attain minimum of sixty (60) Professional Development Units (PDUs) during each CCR cycle
of 3 years.

→ Up to 18 excess PDUs earned during the final year of the current CCR cycle can be transferred to next
CCR cycle.

→ PMP®s who fail to satisfy the continuing certification requirements prior to the completion of their
cycle have 12 months from the cycle expiration to do SO. During this time their PMP® certification
will remain suspended.

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→ On completion of suspension period of 12 months, PMI® will revoke the certification of a PMP® not
satisfying the CCR program requirements.

→ To renew the PMP® certification, candidates will be charged renewal fee once during the CCR cycle.
Payment will be required with submission of the application for Certificate renewal after PMP® has
earned the required PDUs. Amount of renewal fee:

1) US $120 for PMI® members

2) US $150 for non-members

1.6. PMP® Examination Format and Passing Score

→ The PMP® Certification examination consist of 200 multiple choice questions. The 4 hours
examination administration is preceded by a briefing and 15 minute computer tutorial.

→ 25 Pretest questions (also known as dummy questions) will be randomly placed throughout the
examination to gather statistical information on the performance of these questions in order to
determine whether they may be used on future examinations. These 25 pretest questions are
included in the 200-question but will not be included in the pass/fail determination. Candidates will
be scored on 175 questions.

→ To pass the PMP® examination, candidates must correctly answer a minimum of 106 of the 175
scored questions.

→ Examination is followed by an optional candidate satisfaction survey. At completion, exam result is

shown on the screen and score report is handed over to candidate at the examination center. For a
detailed blueprint of the examination, please review PMP® Handbook provided in the certification
area of the PMI® Web site.

→ Upon completion of the test, the examination contractor will immediately provide candidates with a
printed copy of results indicating pass or fail status.

1.7. Topics of PMP® Examination

→ Revised PMP® certification examination will cover knowledge in five process groups/domain with
respective percentage of questions:

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Distribution of
Domain Questions

13%
Initiation

24%
Planning

30%
Execution

Monitoring and 25%

Controlling

8%
Closing

1.7.1. Initiation (13%)

1) Conduct project selection methods
2) Define preliminary project scope
3) Identify initial project risks, assumptions, and constraints
4) Identify key stakeholder
5) Develop project charter
6) Get project charter approval
1.7.2. Planning (24%)
1) Document detail project scope, constraints and assumptions
2) Identify project team and define roles and responsibilities
3) Create the WBS

4) Estimate project effort, cost

5) Develop project schedule

6) Develop change management plan

7) Identify risks and define risk strategies

8) Obtain plan approval

9) Baseline project plan
1.7.3. Execution (30%)
1) Perform tasks defined in project plan
2) Perform activities to build effective project team
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3) Implement the procurement of project resources
4) Manage resource allocation
5) Perform quality assurance

6) Implement approved changes

7) Implement approved actions and workarounds
8) Improve team performance
9) Distribute information to stakeholders
1.7.4. Monitoring and Controlling (25%)
1) Measure project performance
2) Analyze root causes for performance variance
3) Suggest corrective and preventive action
4) Verify and manage changes to the project
5) Ensure project deliverables conform to quality standards
6) Monitor all risks
1.7.5. Closing (8%)
1) Get final acceptance for the project
2) Obtain financial, legal, and administrative closure
3) Identify, document and communicate lessons learned
4) Create and distribute final project status report
5) Archive arid retain project records
6) Measure customer satisfaction
7) Release project resources

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Chapter 2: Project Management

Foundation – Framework, Lifecycle &
Organization

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2. Project Management Foundation – Framework, Lifecycle &
Organization

This chapter lays the foundation upon which entire set of knowledge areas are built. In this chapter
you are going to learn about the Project, Project Management Framework, what are the factors that
can have an impact on a project and also how the role and powers of project manager changes in
different organizational structures?

Topics covered in this chapter are highly important with respect to PMP® examination as questions
coming from these areas will gauge your understanding of project organization, relationship between
various endeavors of an organization (project, program & portfolio) and key project roles
(stakeholders, sponsor and project manager).

2.1. What is a Project?

Project is defined as:

“A temporary endeavor undertaken to create a unique product, service or result.”

A project can thus be defined in terms of its specific characteristics. Temporary means that every
project has a definite beginning and a definite end. Unique means that the product or service is
different in some distinguishing way from all other products or services. For many organizations,
projects are a means to respond to those requests that cannot be addressed within the organizations
normal operational limits. Product or service characteristics are progressively elaborated.

How Temporary?

→ It has a definite beginning and end, it is not an ongoing effort.

→ it comes to an end when objectives have been achieved

→ The objectives will not and cannot be met

→ The need for the project no longer exists or the fund is exhausted

→ Project Team members are released on completion of the Project

How Unique?

− End result or product or service is different in some way from the other product, service or result.
For example: Within a Housing complex, each type of flat has different designs, facilities and features
to differentiate their end characteristics -mosaic with teak wood finish or marble with teak wood
finish or red-oxide flooring with forest wood finish.

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Projects Drive Changes

− Projects drive change in organizations. From a business perspective, a project is aimed at moving an
organization from one state to another state in order to achieve a specific objective.

Projects Enable business value creation.

− PMI® defines business value as net quantifiable benefit derived from business endeavor.

Progressive Elaboration

→ Progressive elaboration is a characteristic of projects that combines the concepts of temporary and
unique. Because the product of each project is unique, the characteristics that distinguish the
product or service must be progressively elaborated. Progressively means “proceeding in steps;
continuing steadily by increments.”

Project become existent for solving an existing problem or a need came from market or social need
or technological change or business need or cultural change or organizational need or environmental
change, or a customer request or a Legal requirement, etc. All the companies, institutions or
establishments perform certain work which generally involve either projects or operations. Both
Projects and Operations own the following commonalities:

→ Performed by People

→ Constrained by scarce resources

→ Planned, executed and controlled

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2.2. Projects vs. Operations

Projects and Operations vary primarily as projects are temporary and unique while operations are
repetitive and ongoing. The characteristics of the Projects and Operations are given below:

Project Operations

Create Own charter, organization and goals Semi-permanent charter, organization

and goals

Catalyst for change Maintains status quo

Unique product or service Standard Product or service

Heterogeneous teams Homogeneous teams

Start and End Date are defined On-going and repetitive

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2.3. What is Project Management?

Project Management - PMBOK® Guide – Sixth Edition Definition:

“Project management is the application of knowledge, skills, tools, and techniques to

project activities to meet the project requirements.”

Project management is accomplished through the use of PM processes such as: initiating, planning,
executing, controlling, and closing (IPECC). The project team manages the work of the projects, which
typically involves:

→ Competing demands for scope, time, cost, risk, and quality

→ Stakeholders with differing needs, wants, risk tolerances and expectations

→ Identified requirements

It is important to note that many of the processes within project management are iterative in nature.
This is in part due to the existence of arid the necessity for progressive elaboration in a project
throughout the project life cycle; i.e., the more you know about your project, the better you are able
to manage it. The term project management is sometimes used to describe an organizational
approach to the management of ongoing operations. This approach, more properly catted
management by projects, treats many aspects of ongoing operations as projects to apply project
management techniques to them.

2.4. Project Constraints

The key challenge in the project management is to successfully manage the project while striking the
right balance among the various project elements. These elements are also known as “Constraints”.
Some of the key constraints are Scope, Time, Cost, Quality, Risk and Resources etc. These constraints
work in tandem with each other.

When one of the constraints is changed, it will have a

direct or indirect impact on other constraints. For
example if the customer is asking to make some
additions in the previously agreed product features, it
is likely to have an impact on project cost and
schedule. A change in Scope, Time or Cost can
increase the risk associated with the project.

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2.5. Project Stakeholders

Project stakeholders are individuals and organizations that are actively involved in the project, or
whose interests may be positively or negatively affected as a result of project execution or project
completion, they may also exert influence over the project and its results.

The project management team must identify the stakeholders, determine their requirements, and
then manage and influence those requirements to ensure a successful project. Stakeholder
identification is often difficult to achieve.

For example: Escalation in cost of input materials may threaten Construction worker’s future and
continuous employment. Some of the key stakeholders common in almost every project are identified
below:

→ Sponsor

→ Project manager

→ Project team members

→ Customer

→ Sellers/Contractors

→ Government agencies

The naming or grouping of stakeholders primarily helps identifying which individuals and
organizations consider themselves as stakeholders. Stakeholder roles and responsibilities may
overlap, for example a customer playing a role of a sponsor and customer.

2.6. Competencies of Project Manager

Project manager is responsible for overall success of the project within the constraints of scope, time,
cost, quality, risk, resources and other key constraints. Project stakeholders have a significant impact
on these constraints hence it becomes crucial for project manager to manage the stakeholders
effectively for successful delivery. In past few years, industry has witnessed unprecedented dynamics
as organization respond to increasing completion within complex project environment.

With such a changing working climate project managers find themselves confronted by issues that
have traditionally not been a part of their responsibilities. To deal with those issues, they must acquire
certain specific skills which will result in effective management of the projects.

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2.6.1. Interpersonal skills
People Management, relationship creation and retention are of today’s order of the day with
internal customer, external customers, external agencies, governmental agencies, society, and
stakeholders. interpersonal skills are of paramount important in order to be successful In today’s
competitive, mechanical, fast-phased, demanding environment, coupled with a diverse workforce,
call for significant amounts of people management skills, e.g.:

→ Listening and conversational skills

→ Leading team members

→ Relationship building and maintenance

→ Influencing individuals and organizations without formal authority

→ Understanding and integrating the efforts of a diverse workforce

2.7. Project Management Context: Related Endeavors

Certain types of endeavors are closely related to projects. There is often a hierarchy of strategic plan,
program, project, and subproject, in which a program consisting of several associated projects will
contribute to the achievement of a strategic plan.

2.7.1. Program

A program is a group of projects managed in a coordinated way to obtain benefits not available
from managing them individually. Many programs also include elements of ongoing operations.
For Example:

→ The “Integrated Guided Missile Project” includes a group of projects to design and develop
the missiles, as well as the ongoing manufacturing and support of that missiles in operation.

→ Many Software and related firms have program managers who are responsible for both
individual product releases (projects) and the coordination of multiple releases over time
(an ongoing operation)

→ Programs may also involve a sense of repetitive or cyclical undertakings: for example:
→ Testing or Quality audit are classical cases, where the product or components or piece of
software code should meet the predetermined standards or test/quality criteria.

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→ Many voluntary organizations have a “resource mobilization programs,” an ongoing effort to
obtain requisite support that often involves a series of discrete projects, such as a
membership drive or an auction or sponsorship or conferences or programs.

2.7.2. Portfolio Management

Portfolio management refers to the selection and support or projects or program investments.
These investments in projects and programs are guided by the organization’s strategic plan arid
available resources. Organizations manage their portfolios based on specific goals. With Portfolio
Management, organizations can maximize the value of the portfolio by careful examination of
various projects or programs for inclusion in portfolio arid timely exclusion of projects not meeting
the portfolio’s strategic business objectives.

2.7.3. Sub-projects

Components of a project that are often contracted out is known as subproject. Projects are
frequently divided into more manageable components or subprojects. Subprojects are often
contracted to an external enterprise or to another functional unit in the performing organization.
Subprojects are based on the project process, such as a single phase. Subprojects according to
human resource skill requirements, such as the installation of plumbing or electrical fixtures on a
construction project or testing of software by a skilled employee, etc.

2.7.4. Project Management Office (PMO)

A project management office (PMO) is an organizational unit to centralize and coordinate the
management of projects under its domain. A PMO can also be referred to as a ‘program
management office,” “project office.” or “program office.”

A PMO oversees the management of projects, programs, or a combination of both. The projects
supported or administered by the PMO may or may not be related other than by being managed
together. Some PMOs, however, do coordinate arid manage related projects. In many
organizations, those projects are indeed grouped or are related in some manner based on the
way the PMO will coordinate and manage those projects. The PMO focuses on the coordinated
planning, prioritization and execution of projects and sub-projects that are tied to the parent
organization’s or client’s overall business objectives.

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2.8. Purpose of Project Management

The purpose of project management is to plan, manage and control activities so that the project is
successfully completed fulfilling the objective of customer and the performing organization. The need
for project management was never so important considering some of the key following factors:

2.8.1. Intense competition in the global market place

Worldwide markets face incense competition from transnational, multi-national and developing
economies whose aim is to globalize all the countries’ economies across the world. Such intense
whore
competition demands ready to market, what to build, where to build, how to build to
various
products and services for global markets and communicate with customers and other
stakeholders. It is also challenging for all the global corporations Lo manage their specialists and
support human resources, and also manage the challenges of marketing products and services and
meeting the distribution needs.

2.8.2. Availability of human knowledge

With the availability of abundant human knowledge, specific knowledge is called for solving
specific/relevant problems associated with the development, production and distribution of
goods and services by ever increasing number of academic disciplines. This expands the horizon
of different types of projects that people can think of and put thru. For Example, “Construction of
a Technology Park requires multi-skilled human resources with knowledge in the areas of civil,
mechanical, electrical, water management, environmental engineering, and Information
Technology.

2.8.3. Increased demand for goods and services globally

With the explosion of population and globalization of world economy, all the products/service
providers are out in the market to fulfill ever-growing demand throughout the world for a broad
range of scientific, electronics, personal, industrial inputs, raw materials, semi-finished,
sophisticated, customized goods and services. Consumerism is the keyword which has taken the
world by storm. Meeting such rapidly changing demands require design flexibility, coordination
of group efforts, and change control into all manufacturing and well entrenched distribution chain
for supply of goods and services with superior quality attributes and delivery on time, all the time.

There is also a demand for existing mass produced products which, needs a presence of PM
processes and a qualified project head. To give an example, moving factories overseas to reduce
manufacturing and shipping costs and to gain a physical presence in

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an expanding market. Information Technology plays a major role in unifying the manufacturer
with their customer sitting elsewhere in the world and also satisfies their need without customer
or manufacturer meeting face to face with each other.

2.8.4. Requirement of teams instead of individuals

In the current trend, skill & knowledge and ability needed are not generally found to be available
in a single person and thus it is necessary to have a team, which possesses such spectrum of
skills/knowledge/ability to meet the customer needs or resolving a complex problem. To
successfully complete the large complex multinational projects, it is essential that the team with
varied skills and disciplines work together, within organization structure, distant locations or
contract entities, or combination of all.

2.9. Factors that have impact on Projects

The factors that affect a project's success include Type of Organization, processes, knowledge,
leadership style, culture, PM Information System and effective communication etc. Each of these
factors should be examined thoroughly as they will have a significant impact on the project
outcome. While several of these topics are covered in detail in the later part of this handbook, this
section explains how maturity of the organization with respect to following elements can impact
the project significantly:

2.9.1. Organizational Culture and Style

These cultures and styles are reflected in numerous factors:

→ Shared values, norms, beliefs, and expectations

→ Policies and procedures
→ View of authority relationships
→ Work ethics and work hours

2.9.2. Organizational Structure

The structure of any organization represents the hierarchy of people and its functions. It sets the
level of authority, roles and responsibilities and the reporting structure within the project. Based on
the nature of the business, organizations tend to adopt one of the three types of structures for
effective control on the day to day operational and project management related work.
Organizational structure define what level of authority and control project manager can exercise
on their team and how much decision-making power they will have with respect to the project.

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Following are the three types of organization structures that can be observed in
organizations:

2.9.2.1. Functional Organization

Functional organizations are made up of units or division based on the types of businesses
and their associated responsibility. This type of organizational structure has clear reporting
hierarchy and communication channels. Skills of the team members are specific to the staff
in a function/department and projects/project team are specific to the function/department.
Communication between departments takes place through functional managers down to the
project team and Project manager may be known as a project coordinator or team leader.

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2.9.2.2. Projectized Organization

Organizations that derive revenue from performing projects for others fall under this type. In
Projectized Organizations, project manager works full time on the project with his team and
has complete or close to complete power over the project team. Project Manager may have
full time administrative staff to help expedite the project and entire team reports directly to
project manager

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2.9.2.3. Matrix Organization

Matrix organization is a blend of Functional and Projectized organization types. It can be

divided into three types:

2.9.2.3.1. Weak Matrix

Weak matrix structures map closely to a functional structure. Project teammay come from
different departments, but the project manager reports directly to a specific functional
manager. Project manager has very limited authority in the project and he is not more
than a project coordinator.

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2.9.2.3.2. Balanced Matrix

A balanced matrix structure has many of the same attributes as a weak matrix, but the
project manager has more time and control over the project and shares power with the
functional manager. Team members generally face time- accountability issues in this type
of organization as they have dual reporting to Functional Manager as well as Project
manager.

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2.9.2.3.3. Strong Matrix

Strong matrix organization, has several attributes similar to the Projectized organization.
Project manager gains more control over resources and their time when it comes to
project work and he has little more authority than functional managers when it comes to
the project. The project team may also have more time available for the project even
though they may come from different departments

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Comparison of Matrix Structures:

Below table illustrates the comparison of various elements in different types of Matrix
structure:

PM’s Title Focus Authority Time Reports into

Type
Of Matrix

Project Split between Minimal Part time on Functional

Weak
Coordinator / project and project Manager
Matrix
Project Leader functional
Project Project work Balanced Full time on Functional
Balanced
Manager project Manager but
Matrix
shares power
for project

Project Project work Complete Full time on Manager of

Strong
Manager project projects
Matrix

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2.9.2.4. Composite Organization
Composite organizational structure is an ad-hoc structure that is created to manage a high-
priority project for its duration. This type of project team organization consist of highly skilled
resources from various functions/departments and they report directly to project managers
for the project duration.

2.9.3. Project Management Information System

The project management system is the set of tools, techniques, methodologies, resources, and
procedures used to manage a project. PMS ensures consistency in application and continuity on
the various projects being performed. To facilitate the project management activities, most of the
organizations develop PMS that can include automated tools, such as a scheduling software tool,
configuration management system, information collection and distribution system, or web
interfaces to other online automated systems.

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2.10. Project & Development Life Cycles.

A project life cycle is the series of phases that a project passes through from its start to its completion.
Following are a few life cycles :

→ Predictive or waterfall life cycle : The scope, time and cost are determined at the early phases of the life cycle.
Changes are managed carefully.

→ Iterative Life Cycle : Project Scope is generally determined early in the project but the time and cost estimates
are routinely modified as the project team’s understanding increases.

→ Incremental life cycle : The deliverables are produced through a series of iterations that add functionalities within
a pre-defined time frame.

→ Adaptive or Agile life cycle : The detailed scope is defined before the start of an iteration.

→ Hybrid life cycle : It is a combination of Predictive and Agile Life cycle.

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Chapter 3: Processes, Process

Groups and Knowledge Areas

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3. Processes, Process Groups and Knowledge Areas
This chapter provides an overview of the ten PMBOK® Guide – Sixth Edition Project Management
Knowledge Areas and the associated 49 processes and how they are aligned to 5 process groups.
Topics covered in this chapter provides an overview of the structure on which all the later chapters
are based.

3.1. Process

Process is defined as:

“A set of interrelated actions and activities performed to create a pre-specified product, service, or
result. Each process is characterized by its inputs, the tools and techniques that can be applied, and the
resulting outputs.”

The project life cycle is managed by a series of project management activities known as project
management processes. Every project management process produces one or more outputs from one
or more inputs by using appropriate project management tools & techniques. The output can be a
deliverable or an outcome.

Project team identifies the processes that needs to be followed to meet/comply with project
requirements while balancing the triple constraints of a Project. Information or data is received from
various sources in Inputs, analyzed using specified Tools & Techniques and Output is churned out.
Output of one process can be an Input to other process(es). PMBOK® Guide – 6th Edition has listed 49
processes spread across different knowledge areas and process groups. All processes interact with
each other throughout the project via their Inputs and Outputs. To manage a project successfully,
project team must manage and guide these interactions.

3.2. Project Management Process Group

A project management process group is a logical grouping of project management processes to

achieve specific project objectives. Process groups are independent of project phases. Project
management processes are grouped into the following five Project Management Process Groups.

▪ Initiating Process Group. Those processes performed to define a new project or a new phase of
an existing project by obtaining authorization to start the project or phase.

▪ Planning Process Group. Those processes required to establish the scope of the project, refine
the objectives, and define the course of action required to attain the objectives that the project
was undertaken to achieve.

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▪ Executing Process Group. Those processes performed to complete theGuide
work defined in the project
management plan to satisfy the project requirements.

▪ Monitoring & Controlling Process Group. Those processes required to track, review and regulate
the progress and performance of the project; identify any areas in which changes to the plan are
required; and initiate the corresponding changes.

▪ Closing Process Group. Those processes performed to formally close project, phase or contract.

PMBOK® Guide - Sixth Edition provides a best-practice approach to handle project management
challenges across domains at all levels. The integrative approach of five process groups yields positive
results for if the project manager or team understand how the five different process groups overlap
throughout all phases of the project.

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3.3. Project Management Knowledge Areas

In addition to process groups, the processes are also categorized by Knowledge Areas. A knowledge area is
an identified area of project management defined by its knowledge requirements and described in terms
of its component processes, practices, inputs, outputs, tools & techniques. The ten knowledge areas
defined in PMBOK® Guide - 6th edition are as follows:

▪ Project Integration Management. Includes the processes and activities to identify, define, combine,
unify and co-ordinate the various processes and project management activities within the Project
Management Process Groups.

▪ Project Scope Management. Includes the processes required to ensure the project includes all the
work required, and only the work required, to complete the project successfully.

▪ Project Schedule Management. Includes the processes required to manage the timely completion of
the project.

▪ Project Cost Management. Includes the processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so that the project can be completed within
approved budget.

▪ Project Quality Management. Includes the processes for incorporating organization’s quality policy
regarding planning, managing and controlling project and product quality requirements, in order to
meet the stakeholder’s expectation.

▪ Project Resource Management. Includes the processes to identify, acquire and manage resources
needed for the successful completion of the project.

▪ Project Communication Management. Includes the processes required to ensure timely and
appropriate planning, collection, creation, distribution, storage, retrieval, management, control, and
ultimate disposition of project information.

▪ Project Risk Management. Includes the processes of conducting risk management planning,
identification, analysis, response planning, response implementation, and monitoring risks on a
project.

▪ Project Procurement Management. Includes the processes necessary to purchase or acquire products,
services, or results needed from outside the project team.

▪ Project Stakeholder Management. Includes the processes required to identify the people, groups or
organizations that could impact or be impacted by the project, to analyze stakeholder expectations
expectation and their impact on the project and develop appropriate management strategies for
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effectively engaging them in project decisions and execution.

Following table shows mapping of 49 processes to process groups and knowledge areas:

Knowledge Project Management Process Groups

Area
Initiating Planning Executing Monitoring and Closing
Controlling

4. Project 4.1 Develop 4.2 Develop 4.3 Direct and 4.5 Monitor & Control 4.7 Close Project
Project Project Manage Project Project Work or Phase
Integration
Charter Management Work
Management 4.6 Perform
Plan
4.4 Manage Project Integrated
Knowledge Change Control

5. Project 5.1 Plan Scope 5.5 Validate Scope

Scope Management
5.6 Control Scope
Management 5.2 Collect
Requirements
5.3 Define Scope
5.4 Create WBS
6. Project 6.1 Plan Schedule 6.6 Control
Schedule Management Schedule

Management 6.2 Define

Activities
6.3 Sequence
Activities
6.4 Estimate
Activity
Durations
6.5 Develop
Schedule
7. Project Cost 7.1 Plan Cost 7.4 Control Costs
Management Management
7.2 Estimate Costs
7.3 Determine
Budget
8. Project 8.1 Plan Quality 8.2 Manage Quality 8.3 Control Quality
Quality Management

Management

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9.6 Control Resources
9. Project 9.1 Plan Resource 9.3 Acquire
Resource Management Resources

Management 9.2 Estimate 9.4 Develop

Activity Team
Resources
9.5 Manage Team

10. Project 10.1 Plan 10.2 Manage 10.3 Control

Communication Communications Communications Communications
Management
Management

11.6 Implement Risk

11. Project Risk 11.1 Plan Risk 11.7 Control Risks
Responses
Management
Management
11.2 Identify Risks
11.3 Perform
Qualitative
Risk Analysis
11.4 Perform
Quantitative
Risk Analysis
11.5 Plan Risk
Responses
12. Project 12.1 Plan 12.2 Conduct 12.3 Control
Procurement Procurements Procurements
Procurement
Management
Management

13. Project 13.1 Identify 13.2 Plan 13.3 Manage 13.4 Monitor
Stakeholder Stakeholder Stakeholder Stakeholder
Stakeholder
s Engagement Engagement Engagement
Management

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Chapter 4: Project Integration

Management

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4. Project Integration Management
Project Integration Management includes the processes and activities to identify, define, combine,
unify, and coordinate the various processes and project management activities within the Project
Management Process Groups.

Project Integration Management consist of high level process which are performed to ensure
all the elements of the project are properly coordinated. It involves controlling changes to
the overall project and making tread offs to ensure stakeholder’s objectives are being met. Project
Integration Management is comprised of following processes:

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

4 Project 4.1 Develop 4.2 Develop 4.3 Direct and 4.5 Monitor and 4.7 Close Project
Integration Project Project Manage Control or Phase
Charter Management Project Work Project Work
Management Plan
4.4 Manage 4.6 Perform
Project Integrated
Knowledge Change
Control

4.1 Develop Project Charter:

Develop Project Charter is the first process of developing a document that formally authorizes the existence
of a project and provides the project manager with the authority to apply the organizational resources o project
activities. Developing the Project charter is primarily concerned with documenting the business needs,
project justification, current understanding of the customer’s requirements, and the new product,
service, or result that is intended to satisfy those requirements.

A project can be linked to the ongoing work of the organization by preparing the project charter. In
some organizations, a project is not formally chartered and initiated until completion of a needs
assessment, feasibility study, preliminary plan, or some other equivalent form of analysis that was
separately initiated.

An illustration of Inputs, Tools & techniques and Outputs of this process is given below:
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Develop Project Charter

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Project Charter

▪ Business Documents
▪ Data Gathering
▪ Agreements ▪ Interpersonal & Team
▪ Enterprise Environmental Skills
Factors ▪ Meetings

▪ Organizational Process Assets

4.1.1. Develop Project Charter - Inputs

4.1.1.1. Business Documents

The business case and the benefits management plan are sources of information about the
projects’ objectives and how the project will contribute towards the business goals.

▪ Business Case. The approved business case describes the necessary information from
business stand point to determine whether the expected outcome of the project justify
the required investment. This is the most commonly used document for developing
project charter. The business case is created as a result of one or more of the followings:

− Request from a Customer: A mobile company authorizing a project to put up

towers to serve a new township.
− A market demand: A railway company authorizing a project to build underground
train to reduce the surface travel time.
− A technological advance: With the advent of digital cameras and its advantage
over the conventional camera, the need for digital camera has created a new
business opportunity among individual, professional, movie and all other users of
camera around the globe.
− A legal requirement: Example: Government’s Legal requirement for the
textile/garment manufacturers to implement “water treatment plant” to reduce
the toxic effluent getting into water bodies and cultivable land. This
implementation will be taken as a project by the garment manufacturers to meet

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such Legal need.
− A social need: Example: Rotary Club engaged ¡n authorizing projects to alleviate
social needs Like “HIV/AIDS awareness campaign”, “Blood Bank Camps”,
‘Education for underprivileged children” in the rural and semi-urban areas.

The above requirements may be known as problems, opportunities, or business

requirements. The central theme of all the requirements is that management must make a
decision about how to respond and what projects to authorize and charter, Project selection
methods involve measuring value or attractiveness to the project owner or sponsor and may
include other organizational decision criteria. Project selection also applies to choosing
alternative ways of executing the project.

▪ Benefits Management Plan. This is the document that describes how and when the
benefits of the project will be delivered and describes the mechanism that should be in
place to measure the benefits.

4.1.1.2. Agreements
If the project is being done for an external customer, a contract from the customer is treated
as an Input.

4.1.1.3. Enterprise Environmental Factors

Project’s success is influenced and surrounded by the organization’s enterprise
environmental factors and systems which must be considered when developing the project
charter. This includes following items:

→ Organizational Culture and Structure: Culture is a “shared value’ among the entire
workforce and the structure indicates as to how the whole company’s functional
framework is in place with appropriate communication channels and approval levels.
Complex structure will itself be a constraint for the organization to pull through successful
project completion. Whereas projectized organization having fiat organization structure”
will more amenable to the project Success.
→ Governmental or industry standards: Regulatory agency regulations, product standards,
quality standards, and workmanship standards etc. are some example of governmental or
industry standard which has an impact on project planning and execution. ISO 9001:2000
or BIS 150(X), CMMIor Six Sigma are considered the Quality standards and governmental
regulations like FEMA or product standards like ISI or Agmark are the key factors to be
considered while developing project charter.
→ Organizations’ human capital: Technical, managerial and administrative skills, functional
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discipline, and knowledge, such as product design, serviceGuide
framework development,
secretarial, Legal, logistics, inventory management, supply chain management, quality
management, business process knowledge etc.
→ Market Condition and Global Competition: The intensity of the project increases or
decreases based on the fact that as to which market the company competes with and
what is the intensity of the competition in that market segment. To give a simple
example, if the company is engaged in high intensity zone where it is expected to meet
consistently the customers (coming from different segments with product variants, per
se a challenge to meet with. Therefore, in such organizations the project teams’ success
of product development is a paramount importance foe company’s survival. On the
contrary, if the company’s existence in a market is, by and large less intensive and thus
the project teams’ will have a different intensity to work with.

→ Project Management Information System: Project Management Information Systems

(PMI®S) is a collection of tools such as a scheduling software tool, configuration
management system, information collection & distribution system, or web interfaces to
other online automated systems.

4.1.1.4. Organizational Process Assets

All or any of the assets that may influence the project’s success can be drawn from
organizational process assets during the development of the project charter and subsequent
project documentation. Effects of the formal and informal policies, procedures, plans, and
guidelines, followed by performing and involved organizations in the project must be
considered. Organizational process assets also represent the organization’s learning and
knowledge from previous projects, for example, completed schedules, risk data, and earned
value data. Organizational Process Assets can be grouped into following two categories:

1) Organization’s processes and procedures for carrying out the work

2) Organizational knowledge base for storing and retrieving information

4.1.2. Develop Project Charter – Tools and Techniques

4.1.2.1. Expert Judgment

Access to the inputs require to develop the project charter is often provided by Expert
Judgment. Such judgment and expertise are 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 can be made available from several sources including:

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→ Other departments/units within the organization
→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

4.1.2.2. Data Gathering

Data gathering techniques that can be used for this process include but are not limited to:

▪ Brainstorming. This technique is used to identify a list of ideas in a short period of time.
It is conducted in a group environment and led by facilitator. Brainstorming can be used
to gather data & solution from stakeholders & SME when developing Project Charter.

▪ Focus Group. Through this technique the perceived project risks, success criteria and
other topics are learned in a more conversational way than one-to-one interview.

▪ Interviews. Interviews are used to obtain information on high level requirements,

constraints, assumptions and other topics from stakeholders by direct one to one
conversation.

4.1.2.3. Interpersonal & Team Skills

Interpersonal & team skills that can be used for this process includes but not limited to:

▪ Conflict Management.

▪ Facilitation. Facilitation techniques is one of the most commonly used Tools &
Techniques used to help teams and individuals to brainstorm, resolve conflicts, solve
problems and manage the meetings. In Develop Project Charter process facilitation
techniques are used to collaborate the efforts of stakeholders to translate the
requirements of the customers to high-level objectives.

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▪ Meeting Management. Meeting management includes preparing agenda, ensuring that
representative of each key stakeholder is invited and preparing and sending the MOM.

4.1.2.4. Meetings
For this process the meetings are held with key stakeholders to identify the project
objective, success criteria, key deliverables, high level requirements and summary
milestones.

4.1.3. Develop Project Charter – Outputs

4.1.3.1. Project Charter

The only output of this process is “Project Charter” which is released by the Senior
Management Executive either the Sponsor or the initiator to signify that the project or its
phase becomes in existence and also authorize the Project Manager to utilize organization’s
resources, people, machine, materials and money to achieve project objectives. The senior
management executive identifies a Project Manager and assigns the project to project
manager by formally handing over the project charter. Project charter provides high-level
overview of the project. It may include following details:

→ Project Title
→ Project Description
→ Overall Project Risks
→ Objectives
→ Project Scope Overview
→ Major Deliverables
→ Key Milestones
→ Business Case
→ Financial Benefits
→ Top Management’s Approval
→ Project Manager’s Acceptance

4.1.3.2. Assumption Log.

This document contains the high-level Assumptions and Constraint identified in the business case
before the project is initiated. This document will be used to record all the assumptions and constraints
throughout the project life cycle.

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4.2. Develop Project Management Plan:

The process of defining how a project is planned should be executed, monitored and controlled and
closed is called as The Develop Project Management Plan. It includes the actions necessary to define,
integrate, and coordinate all subsidiary plans. The project management plan content may vary
depending upon the application area and complexity of the project. This process results in a project
management plan that may be updated and revised through the Integrated Change Control process.

Develop Project Management

Plan

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Project Management Plan

▪ Project Charter
▪ Data Gathering
▪ Outputs from other processes ▪ Interpersonal & Team
▪ Enterprise Environmental Skills
Factors ▪ Meetings

4.2.1. Develop Project Management Plan – Inputs

4.2.1.1. Project Charter

Described in section 4.1.3.1. Project Charter provides the reference to start the detailed
project planning processes.

4.2.1.2. Output from other processes

The primary objective of Develop Project Management Plan process is to combine and unify
output from other planning processes. All the subsidiary plans and baselines that are created
in all relevant knowledge areas are unified and combined in this process.

4.2.1.3. Enterprise Environmental Factor

The enterprise environmental factors that can influence the Develop Project Management
Plan process include:

→ Governmental or industry standards

→ Project management body of knowledge for vertical market

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→ Project management information system

4.2.1.4. Organizational Process Assets

Organizational process assets provide a list of policies, procedures, and guidelines, controls
procedures, Historical information and lessons learned knowledge bases that is used as a key
input in developing the Project Management plan.

4.2.2. Develop Project Management Plan – Tools and Techniques

4.2.2.1. Expert Judgment

Expertise is needed to develop project management plan can provided by any group or
individual with specialized knowledge or training and can be made available from several
sources including:

→ Other departments/units within the organization

→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

4.2.2.2. Data Gathering

Data gathering techniques used in this process includes but not limited to:

▪ Brainstorming.
▪ Focus Groups
▪ Interviews
▪ Checklists. Many organizations have standardized checklists available prepared by
themselves or use checklists from the industry. It may help the project manager to develop a
plan or to verify if all the requirements are included in the project plan.

4.2.2.3. Interpersonal & Team Skills

▪ Conflict Management
▪ Facilitation
▪ Meeting Management.

4.2.2.4. Meetings

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4.2.3. Develop Project Management Plan – Output

4.2.3.1. Project Management Plan

It can be composed of one or more subsidiary plans and other components and it can be
either summary level or detailed. Each of the subsidiary plans and components is
detailed to the extent required by the specific project. These subsidiary plans include:

→ Project Scope Management Plan

→ Schedule Management Plan
→ Cost Management Plan
→ Quality Management Plan (Including Process Improvement Plan)
→ Staffing Management Plan
→ Communication Management Plan
→ Risk Management Plan
→ Procurement Management Plan
→ Stakeholders Management Plan

These subsidiary plans may contain the following components:

→ Resource Calendar
→ Cost Baseline
→ Milestone List
→ Schedule Baseline
→ Quality Baseline
→ Risk Register

4.3. Direct and Manage Project Work:

In order to accomplish the work defined r the project scope statement, the project manager and the
project team need to execute the project management plan performing multiple actions defined in
this process. Some of these actions are:

→ Perform activities to accomplish project objectives

→ Expend effort and spend funds to accomplish the project objectives
→ Hire, train and manage the project team members assigned to the project
→ Obtain quotations, bids, offers, or proposals as appropriate
→ Select sellers by choosing from among potential setters
→ Obtain, manage, and use resources including materials, tools, equipment’s and facilities
→ Implement the planned methods and standards
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→ Manage sellers
→ Incorporate approved changes into the project’s scope, plans, and environment
→ Establish and manage project communication channels, both external and internal to the
project team
→ Collect project data and report cost, schedule, technical and Quality progress, and status
information to facilitate forecasting
→ Collect and document Lessons learned and implement approved process improvement
activities.

The project manager manages the various technical and organizational interfaces that exist within the
project and directs the performance of the planned project activities along with the project
management team. The project application area generally affects the Direct and Manage Project Work
process directly. The project work planned and scheduled in the project management plan to
accomplish Deliverables are outputs from the processes. Work performance information about the
completion status of the deliverables, and what has been accomplished, is collected as part of project
execution and is fed into the performance reporting process.

Although the products, services, or results of the project are frequently in the form of tangible
deliverables such as buildings, roads, etc. and intangible deliverables, such as training, can also be
provided. Direct and Manage Project Work also requires Implementation of:

→ Approved corrective actions that will bring anticipated project performance into compliance with the
project management plan.
→ Approved preventive actions to reduce the probability of potential negative consequences.

→ Approved defect repair requests to correct product defects found by the quality process.

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Direct & Manage Project Work

Inputs Tools and Techniques Outputs

▪ Project Management ▪ Expert Judgment ▪ Deliverables

Plan ▪ Project Management ▪ Work Performance Data
Information System ▪ Issue Log
▪ Project Documents
▪ Change Requests
▪ Approved Change ▪ Meetings ▪ Project Management Plan
Requests update
▪ Enterprise ▪ Project Document
Environmental Factors Update
▪ Organizational Process ▪ Organizational
Assets. Process Assets Update

4.3.1. Direct and Manage Project Work – Inputs

4.3.1.1. Project Management Plan

It can be composed of one or more subsidiary plans and other components and it can be
either summary level or detailed. Each of the subsidiary plans and components is
detailed to the extent required by the specific project.

4.3.1.2. Project Documents

The project documents that can be input to this process may include but not limited to:
▪ Change Log
▪ Lesson Learned Register
▪ Requirement Traceability Matrix
▪ Risk Register
▪ Other documents

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4.3.1.3. Approved Change Request

In order to expand or contract project scope, authorized changes are documented Change
Requests that can also modify policies, project management plans, procedures, costs or
budgets, or revise schedules. Approved change requests are scheduled for implementation
by the project team.

4.3.1.4. Enterprise Environmental Factor

The Direct and Manage Project Work process is influenced by enterprise

environmental factors that include:

→ Organizational, company, or customer culture and structure of the performing or

sponsor organizations
→ Infrastructure
→ Personnel administration
→ Stakeholder risk tolerances
→ Project management information system

4.3.1.5. Organizational Process Assets

Organizational process assets provide a list of policies, procedures, and guidelines, controls
procedures, Historical information and lessons learned knowledge bases that is used as a key
input in developing the Project Management plan.

4.3.2. Direct and Manage Project Work – Tools and Techniques

4.3.2.1. Expert Judgment

Expertise is needed to Direct and Manage Project work can provide by any group or individual
with specialized knowledge or training and can be made available from several sources
including:

→ Other departments/units within the organization

→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

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4.3.2.2. Project Management Information System

Standardized set of automated toots available within the organization are integrated into a
system that is catted as the Project Management Information System (PMI®S). The PMI®S is
used by the project management team to support generation of a project plan, facilitate
feedback as the document is refined, control changes to the project plan, and release the
approved document.

4.3.2.3. Meetings

While directing and managing project work, project manager, project team and stakeholders
may need to conduct meetings to discuss and address pertinent topics of the project.
Meetings are tending to be one of three types:

→ Information Exchange
→ Brainstorming, option evolution or design or
→ Decision making

4.3.3. Direct and Manage Project Work – Outputs

4.3.3.1. Deliverables

Any verifiable product, service or result (or part of it) which is identified in the project management
planning documentation is considered as deliverable which must be produced and provided to
complete the project.

4.3.3.2. Work Performance Data

Work performance data is the lowest level of detail coming from raw observations and measurements
of activities while carrying out the project work. Raw data is gathered throughout the execution phase
and passed to the controlling processes of each process area for detailed analysis. Work Performance
Data includes work completed, KPIs, start/finish dates of activities, number of defects, actual duration
and cost etc.

4.3.3.3. Issue Log

Through out the lifecycle of the project the project manager will face problems, gaps, inconsistencies
or conflicts, where some action is to be taken. This document records all such issues which can be
tracked.

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4.3.3.3. Change Requests

While the project work is being performed requests for direct or indirect charges to expand or
reduce project scope, to modify policies or procedures, to modify project cost or budget, or to
revise the project schedule are often identified and documented as requested changes.
Requests for a change can be, externally or internally initiated, and can be optional or
legacy/contractually mandated.

4.3.3.4. Project Management Plan update

Elements of the project management plan that may be updated include, but are not limited
to:

→ Scope management plan,

→ Requirements management plan,
→ Schedule management plan,
→ Cost management plan,
→ Quality management plan,
→ Process improvement plan,
→ Human resource management plan,
→ Communications management plan,
→ Risk management plan,
→ Procurement management plan,
→ Stakeholder management plan, and
→ Project baselines.

4.3.3.5. Project Document Update

Project documents that may be updated include, but are not limited to:

→ Requirements documentation,
→ Project logs (issues, assumptions, etc.),
→ Risk register, and
→ Stakeholder register.

4.3.3.6. Organizational Process Assets Update

Any organizational process assets can be updated as a result of this process.

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4.4. Manage Project Knowledge

Manage Project Knowledge is the process of using existing knowledge and creating new knowledge to achieve
the project’s objective and contribute to organizational learning. The benefit of this process is to leverage the
organizational knowledge to produce improved outcome. This process is performed throughout the life cycle
of the project.

Manage Project Knowledge

Inputs Tools and Techniques Outputs

▪ Project Management ▪ Expert Judgment ▪ Lesson Learned Register

▪ Knowledge
Plan ▪ Project Management Plan
▪ Project Documents Management
Updates
▪ Deliverables ▪ Information
▪ Organizational Process
▪ Enterprise Management
Assets Update.
Environmental ▪ Interpersonal & Team

Factors Skills

▪ Organizational Process
Assets

4.4.1 Manage Project Knowledge – Inputs

4.4.1.1 Project Management Plan
All Components of Project Management plan is input of this process.

4.4.1.2 Project Documents

The project documents that can be considered as the input to this process are:
▪ Lessons Learned Register. This document provides effective practice of knowledge
management
▪ Project Team Assignments. This document provides the type of competencies and experience
in the project and the knowledge that may be missing.
▪ Resource Breakdown Structure. RBS includes the information on the composition of the team
and may be helpful to determine what knowledge is available as a group or what knowledge is
missing.
▪ Stakeholder Register.
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4.4.1.3 Deliverables
Deliverables are tangible components completed to meet the project’s objectives.

4.4.1.4 Enterprise Environmental Factors

4.4.1.5 Organizational Process Assets.

4.4.2 Manage Project Knowledge – Tools & Techniques

4.4.2.1 Expert Judgement

Expertise should be considered from the individuals and groups with specialized knowledge and
training in the following topics:
▪ Knowledge management
▪ Information Management
▪ Organizational Learning
▪ Relevant information from other projects.

4.4.2.2 Knowledge Management

Knowledge management tools & techniques connect people so they work together to create new
knowledge, share tacit knowledge and integrate the knowledge of diverse team members.
Following is a list of tools & Techniques used.
▪ Networking
▪ Knowledge sharing
▪ Storytelling
▪ Workshops
▪ Others

4.4.2.3 Information Management

Information management tools and techniques are used to create and connect people to
information. They are effective for sharing simple, unambiguous, codified explicit knowledge.

4.4.2.4 Interpersonal & Team Skills

The interpersonal & team skills used includes but not limited to:

▪ Active Listening
▪ Facilitation
▪ Leadership
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▪ Networking
▪ Political awareness

4.4.3 Manage Project Knowledge – Outputs

4.4.3.1 Lessons Learned Register

4.4.3.2 Project Management Plan Updates

4.4.3.3 Organizational Process Assets Updates

4.5. Monitor and Control Project Work:

To monitor project processes associated with initiating, planning, executing, and closing, the Monitor
and Control Project Work process is performed. Corrective or preventive actions are taken to control
the project performance. One of the aspect of project management performed throughout the project
is monitoring that includes collecting, measuring, and disseminating performance information, and
assessing measurements & trends to influence process improvements. Continuous monitoring
identifies any areas that can require special attention and gives the project management team insight
into the health of the project.

The Monitor and Control Project Work process is concerned with:

→ Comparison of actual project performance with the project management plan

→ Recommending corrective or preventive actions as necessary by assessing
performance to determine if any are indicated.
→ Make sure that the risks are Identified by analyzing, tracking, and monitoring project, their
status is reported and appropriate risk response plans are being executed
→ Maintaining an accurate, timely information base concerning the project’s product(s)
and their associated documentation through project completion
→ Providing information to support status reporting, progress measurements, and forecasting
→ Providing forecasts to update current cost and current schedule information
→ Monitoring Implementation of approved changes when and as they Occur,

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Monitor and Control Project Work

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Expert Judgment ▪ Change Requests

▪ Project Documents ▪ Data Analysis ▪ Work Performance
▪ Work Performance Information ▪ Decision Making Information
▪ Agreements ▪ Meetings ▪ Project Management Plan
▪ Enterprise Environmental Factors Updates
▪ Organizational Process Assets ▪ Project Documents Updates

4.5.1. Monitor & Control Project Work – Inputs

4.5.1.1. Project Management Plan

It can be composed of one or more subsidiary plans and other components and it can be
either summary level or detailed. Each of the subsidiary plans and components is
detailed to the extent required by the specific project. These subsidiary plans include:

→ Project Scope Management Plan

→ Schedule Management Plan
→ Cost Management Plan
→ Quality Management Plan (Including Process Improvement Plan)
→ Staffing Management Plan
→ Communication Management Plan
→ Risk Management Plan
→ Procurement Management Plan
→ Stakeholders Management Plan
These subsidiary plans may contain the following components:

→ Resource Calendar
→ Cost Baseline
→ Milestone List
→ Schedule Baseline
→ Quality Baseline
→ Risk Register

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4.5.1.2. Project Document

The project documents that can be considered as inputs to this process includes but not limited to:

▪ Schedule Forecast

The schedule forecast provides variance against the planned finish dates and forecasted finish
dates for various tasks and overall project. Forecast is calculated from progress against the
schedule baseline and computed time estimate to complete (ETC) which is generally
expressed in terms of schedule variance (SV) and schedule performance index (SPI).

▪ Cost Forecast

The cost forecasts provide variances against the planned versus actual expenditures and
forecasted final costs. Cost forecast is calculated derived from progress against the cost
baseline and computed estimates to complete (ETC) which is generally expressed in terms of
cost variance (CV) and cost performance index (CPI). An estimate at completion (EAC) can be
compared to the budget at completion (BAC) to see if the project is still within tolerance ranges
or if a change request is required.

▪ Risk Register
▪ Issue Log
▪ Milestone List

4.5.1.3. Work Performance Information

As a part of the project management plan execution, the work performance data is analyzed
in context and integrated based on the relationship across areas. Work performance data gets
transformed into Work Performance Information and provides a basis for decisions making
associated with project.

4.5.1.4. Enterprise Environmental Factors

The Monitor and Control Project Work process is influenced by enterprise environmental
factors that include:

→ Governmental or industry standards

→ Organization work authorization systems
→ Stakeholder risk tolerances
→ Project management information system

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4.5.1.5. Organizational Process Assets

The organizational process assets that can influence the Monitor and Control Project Work
process include:

→ Organizational communication requirements

→ Financial controls procedures
→ Change control procedures
→ Change control procedures
→ Process measurement database used to make available measurement data on
processes and products
→ Lessons learned database

4.5.2. Monitor & Control Project Work – Tools and Techniques

4.5.2.1. Expert Judgment

Expert judgment is used by the project management team to interpret the information
provided by the monitor and control processes.

4.5.2.2. 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:

→ Regression analysis
→ Grouping methods
→ Causal analysis,
→ Root cause analysis
→ Forecasting methods (e.g., time series, scenario building, simulation, etc.)
→ Failure mode and effect analysis (FMEA)
→ Fault tree analysis (FTA)
→ Reserve analysis
→ Trend analysis
→ Earned value management
→ Variance analysis.

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4.5.2.3. Project Management Information System

The project management information system, which is part of enterprise environmental

factors, provides access to automated tools, such as scheduling, cost, and resourcing tools,
performance indicators, databases, project records, and financials used during the Monitor
and Control Project Work process.

4.5.2.4. Meetings

Meetings may be face-to-face, virtual, formal, or informal. They may include project team
members, stakeholders, and others involved in or affected by the project.

4.5.3. Monitor & Control Project Work – Outputs

4.5.3.1. Change Requests

As a result of variance analysis, change requests may be issued to expand, adjust, or reduce
project scope, product scope, or quality requirements and schedule or cost baselines. It may
include Corrective or Preventive actions or actions for defect repair.

4.5.3.2. Work Performance Reports

Work performance reports are status reports, information notes, recommendations, and
updates to help project team and stakeholders to take decisions, actions, or awareness.
Source of work performance reports is the work performance information that is compiled in
the project documents.

4.5.3.3. Project management Plan Update

Changes identified during the Monitor and Control Project Work process may affect the
overall project management plan. These changes, after being processed through the
appropriate change control process can lead to project management plan updates.

4.5.3.4. Project Document Update

Schedule and cost forecasts, Work performance reports and Issue log are some of the
project documents that may be updated.

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4.6. Perform Integrated Change Control

Perform Integrated change control is the process of reviewing all changes, approving changes and
managing changes to deliverables, project documents and project management plan; and
communicating the decision. The project management plan, the project scope statement and other
deliverables must be maintained carefully & continuously either by rejecting or approving changes so
approved changes can be incorporated into a revised baseline. Integrated Change Control process is
performed from project inception through completion. Since projects seldom run exactly according
to the project management plan, change control becomes necessary.

Perform Integrated Change

Control

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Approved Change Requests
▪ Project Management Plan
▪ Change Control Tools ▪ Project Management Plan
▪ Work Performance Reports ▪ Data Analysis Updates
▪ Change Requests ▪ Decision Making ▪ Project Documents Updates
▪ Meetings ▪ Change Log
▪ Enterprise Environmental
Factors
▪ Organizational Process Assets

4.5.1. Perform Integrated Change Control – Inputs

4.5.1.1. Project Management Plan

Project Management Plan components includes but are not limited to:

▪ Change Management Plan. The change management plan provides the direction for
managing the change control process and documents the roles and responsibilities of
the change control board

▪ Configuration Management Plan. This plan describes the configurable items and
identifies the items that will be recorded so that the product of the project remains
consistent and operable.
▪ Scope Baseline. It provides the project and the product definition.
▪ Schedule Baseline. It is used to assess the impact of the change in the project schedule.
▪ Cost Baseline. It is used to assess the impact of the change in project cost.

4.5.1.2. Project Documents.

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The project documents that can be considered as input to this process

▪ Basis of Estimate. This indicates how the duration, costs and resource estimations were
derived and can be used to determine the impact of the change on time, budget and
resources.
▪ Requirement Traceability Matrix. This helps to determine the impact of the change on the
project scope.
▪ Risk Report. It is used to determine the overall risks impact on the project due the change.

4.5.1.3. Work Performance Reports

It provides documentation about project performance against the project management plan.
Results from performance areas like control schedule, control cost, control quality, scope
verification, and procurement audits and their related forecasts assists the project team
management In determining future human resource requirements, recognition and rewards
and updates to HR Management plan.

4.5.1.4. Change requests

Requests for direct or indirect charges to expand or reduce project scope, to modify policies or
procedures, to modify project cost or budget, or to revise the project schedule are often
identified and documented as requested changes. Requests for a change can be, externally or
internally initiated, and can be optional or legacy/contractually mandated.

4.5.1.5. Enterprise Environmental factors

Project management information system is one of the key enterprise environmental factor can
influence the Perform Integrated Change Control process. PMI®S may include the scheduling
software tool, a configuration management system, an information collection and
distribution system, or web interfaces to other online automated systems.

4.5.1.6. Organizational process assets

The organizational process assets that can influence the Perform Integrated Change Control
process include:

→ Change control procedures

→ Procedures for approving and issuing change authorizations

→ Process measurement database

→ Project documents
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→ Configuration management knowledge base

4.5.2. Perform Integrated Change Control – Tools and Techniques

4.5.2.1. Expert Judgment

Stakeholders may be asked to provide their expertise and may be asked to sit on the change
control board (CCB). Such judgment and expertise are applied to any technical and
management details during this process and may be provided by various sources

4.5.2.2. Meetings

Meetings are usually referred to as change control meetings. When needed for the project, a
change control board (CCB) is responsible for meeting and reviewing the change requests and
approving, rejecting, or other disposition of those changes.

4.5.2.3. Change Control Tools

Manual or automated tools to manage the change requests and resulting decisions with
respect to change and/or configuration management. Types of tools that can be used is based
on the requirements of the project stakeholders considering the enterprise environment
and/or constraints.

4.5.2.4. Data Analysis

Data analysis techniques that can be used for this process includes but not limited to:

▪ Alternative Analysis. This technique is used to assess the requested change and decide
which are accepted, rejected or needs to be modified before finally accepted.

4.5.2.5. Cost Benefit Analysis. This analysis helps to determine if the requested change is
worth its associated costs.

4.5.2.6. Decision Making

Decision making techniques that can be used for this process includes but not limited to:

▪ Voting. Voting can take the form of unanimity, majority and plurality to decide whether to
accept, reject or defer the change request.
▪ Autocratic Decision Making. In this technique one individual take the responsibility for making
the decision for the entire team.
▪ Multi-criteria Decision Analysis. This technique uses a decision matrix to provide a systematic
analytical approach to evaluate the requested changes according to pre-defined criteria.

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4.5.3. Perform Integrated Change Control – Outputs

4.5.3.1. Approved Change Requests

A change request that has been processed through the integrated change control process and
approved by change control board. Approved change requests are implemented through the
Direct and Manage Project Work process.

4.5.3.2. Project Documents updates.

Any formally controlled project document may be changed as a result of this process. The most
common document which is updated through this process is change log.

▪ Change Log.

A comprehensive list of changes made during the project. This typically includes dates of the
change and impacts in terms of time, cost, and risk. Rejected change requests are also
documented in Change Log.

4.5.3.3. Project Management Plan updates

Key outcome of Integrated Change Control Process is updates to any subsidiary plans and
baselines subject to decision by change control board. Changes to baselines

should only show the changes from the current time forward. Past performance may not be
changed.

4.5.3.4. Project Document Updates

Project documents that may be updated as a result of the Perform Integrated Change Control
process include all documents specified as being subject to the project’s formal change
control process.

4.7. Close Project or Phase

The project closure portion of the project management plan is performed through the Close Project or
Phase process. This process closes out the portion of the project scope and associated activities
applicable to a given phase in multi-phase projects. This process includes finalizing all activities
completed across all Project Management Process Groups to formally close the project or a project
phase, and transfer the completed or cancelled project as appropriate. The Close Project process also
establishes the procedures to coordinate activities needed to verify and document the project
deliverables, to coordinate and interact to formalize acceptance of those deliverables by the customer
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or sponsor, and to investigate and document the reasons for actions taken if a project is terminated
before completion.

Close Project Or Phase

Inputs Tools and Techniques Outputs

▪ Project Charter ▪ Expert Judgement ▪ Project Documents Updates

▪ Project Management Plan ▪ Data Analysis ▪ Final product, service or result
▪ Project Documents ▪ Meetings transition
▪ Accepted Deliverables ▪ Final report
▪ Business Documents ▪ Organizational process assets
▪ Agreements updates
▪ Procurement Documentation
▪ Organizational Process Assets

4.7.1. Close Project or Phase – Inputs

4.7.1.1. Project Charter

The project charter documents the project success criteria, approval requirements and who will sign
off on the project.

4.7.1.2. Project Management Plan

All components of the project management plan are input to this process.

4.7.1.3. Project Documents.

Project documents that may be input to this process includes but not limited to:
▪ Assumption Log
▪ Issue Log
▪ Basis of estimate
▪ Change log
▪ Milestone list
▪ Others

4.7.1.4. Accepted Deliverables

Approved product specifications, delivery receipts, and work performance documents. Partial
or interim deliverables may also be included for phased or cancelled projects.
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4.7.1.5. Organizational process assets

The organizational process assets that can influence the Close Project or Phase process are
Project or phase closure guidelines or requirements and Historical information and lessons
learned knowledge base.

4.7.2. Close Project or Phase – Tools and Techniques

4.7.2.1. Expert Judgment

Experts Judgment ensure the project or phase closure is performed to the appropriate
standards. Expertise is available from many sources like other project managers within the
organization and Project management office (PMO).

4.7.2.2. Data Analysis

The data analysis techniques that can be used for this process includes but not limited to:

▪ Document Analysis

▪ Regression Analysis.

▪ Trend Analysis

▪ Variance Analysis

4.7.2.3. Meetings

Meetings may include project team members and other stakeholders, involved in or
affected by the project.

4.7.3. Close Project or Phase – Outputs

4.7.3.1. Final Product, Service, or Result transition

Formal statement that the terms of the contract have been met and hand over of the final
product, service or result that the project was authorized to produce.

4.7.3.2. Organizational Process Assets Updates

Development of the index and Location of project documentation are included in the
Closure. The documents that are updated are, but not limited to:

→ Project Files: Project files are documentation resulting from the project’s activities like
project management plan, scope, cost, schedule and quality baselines, project calendars,
risk register, planned risk response actions, and risk impact.
→ Project Closure Documents: These documents consist of formal documentation indicating
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completion of the project and the transfer of the completed
others, such as Operations group. If the project was terminated prior to completion, the
formal documentation indicates why the project was terminated, and formalizes the
procedures for the transfer of the finished and unfinished deliverables of the cancelled
project to others.
→ Historical Information: Lessons learned 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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Chapter 5: Project Scope

Management

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5. Project Scope Management
Project Scope Management includes the processes required to ensure that the project includes all the work
required, and only the work required, to complete the project successfully. Managing the project scope is
primarily concerned with defining and controlling what is and is not included in the project. The PMBOK
®
Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

5 Project Scope 5.1 Plan Scope 5.4 Validate

Management Management Scope
5.2 Collect 5.5 Control
Requirements Scope
5.3 Define Scope
5.4 Create WBS

▪ Plan Scope Management. The process of creating a scope management plan that documents how the
project and product scope will be defined, validated and controlled.
▪ Collect Requirements. The process of determining, documenting and managing stakeholder needs and
requirements to meet project objective.
▪ Define Scope. The process of developing a detailed description of the project and product.
▪ Create WBS. The process of subdividing the project deliverables and the project work into smaller more
manageable components.
▪ Validate Scope. The process of formalizing acceptance of completed project deliverables.
▪ Control Scope. The process of monitoring the status of project and product scope and managing changes
to scope baseline.

5.1.Plan Scope Management

Project’s overall success depends on proper definition and effective management of the project scope. Projects
required a careful balance of tools, data sources, methodologies, processes and procedures, and other factors
to ensure that the effort spent on scoping activities is adequate as per size, complexity, and importance of the
project. The project scope management plan describes:

→ How project scope will be defined

→ How detailed project scope statement will be developed
→ How work breakdown structure will be created
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Plan Scope Management

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Expert Judgment ▪ Scope Management Plan
▪ Project Charter ▪ Data Analysis ▪ Requirements Management
▪ Enterprise Environmental Meetings Plan
Factors

▪ Organizational process assets

5.1.1. Plan Scope Management – Inputs

5.1.1.1. Project Management Plan

It can be composed of one or more subsidiary plans and other components and it can be
either summary level or detailed. Each of the subsidiary plans and components is
detailed to the extent required by the specific project. These subsidiary plans include:

→ Project Scope Management Plan

→ Schedule Management Plan
→ Cost Management Plan
→ Quality Management Plan (Including Process Improvement Plan)
→ Staffing Management Plan
→ Communication Management Plan
→ Risk Management Plan
→ Procurement Management Plan
→ Stakeholders Management Plan
These subsidiary plans may contain the following components:

→ Resource Calendar
→ Cost Baseline
→ Milestone List
→ Schedule Baseline
→ Quality Baseline
→ Risk Register

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5.1.1.2. Project Charter

The project charter provides 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.

5.1.1.3. Enterprise Environmental Factors

The enterprise environmental factors that can influence the Plan Scope
Management process include:

→ Organization’s culture
→ Infrastructure
→ Personnel administration
→ Marketplace conditions

5.1.1.4. Organizational process assets

Historical information, lessons learned knowledge base and Policies & procedures are the
key elements of organizational process assets that may influence the Plan scope
management process.

5.1.2. Plan Scope Management – Tools and Techniques

5.1.2.1. Expert Judgment

Experts Judgment refers to input received from knowledgeable and experienced parties.
Expertise is available from many sources like other project managers within the organization
and Project management office (PMO). Expertise should be considered from individuals or
groups with specialized knowledge and trainings in the following topics:

▪ Previous similar projects

▪ Information in the industry, discipline and application area.

5.1.2.2. Data Analysis

The data analysis technique that can be used for this process includes but not limited to alternative
analysis, various ways of collecting requirements, elaborating product scope etc.

5.1.2.3. Meetings

Meetings may include project team members and other stakeholders, involved in or
affected by the project.

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5.1.3. Plan Scope Management – Outputs
5.1.3.1. Scope Management Plan

Scope Management Plan is a part of the project management plan. It provides guidance on
how project scope will be defined, documented, verified, managed and controlled. The
components of a project scope management plan include:

→ Process to prepare a Project Scope Statement

→ Process to create WBS
→ Process for maintaining WBS and its approval
→ Process for verification and acceptance of project deliverables
→ Process to control changes in project scope. (This process is linked with integrated
Change control process.)

5.1.3.2. Requirements Management Plan

Requirements Management Plan is a part of the project management plan. It provides

guidance on how requirements will be analyzed, documented, and managed. The
components of a project scope management plan may include:

→ How requirements activities will be planned, tracked, and reported

→ Requirements prioritization process

→ Product metrics that will be used and the rationale for using them

→ Requirement attributes will be captured on the traceability matrix

5.2. Collect Requirements

Collect Requirements is the process of determining, documenting, and managing stakeholder

needs and requirements to meet project objectives.

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Collect Requirements

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Expert Judgement ▪ Requirements

o Scope Management
Plan ▪ Data Gathering documentation
o Requirements ▪ Data Analysis ▪ Requirements traceability
Management
▪ Decision Making matrix
Plan
▪ Data Representation
o Stakeholders
▪ Interpersonal & Team
Engagement Plan
Skills
▪ Project Charter ▪ Context Diagrams
▪ Project Documents ▪ Prototypes
▪ Business Documents
▪ Agreements
▪ Enterprise Environmental
Factors
▪ Organizational Process Assets

5.2.1.1 Project Charter

The project charter is used to provide the high-level description of the product, service, or
result of the project so that detailed requirements can be developed.

5.2.1.2 Project Management Plan

▪ Scope Management Plan

The scope management plan provides clarity as to how project teams will determine which type of
requirements need to be collected for the project.

▪ Requirement Management Plan

The requirements management plan provides the processes that will be used throughout the collect
requirement process to define and document stakeholder’s needs.

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▪ Stakeholder Management Plan

The stakeholder management plan is required to understand stakeholder communication

requirements in order to assess and adapt to the level of stakeholder participation in
requirements activities.

5.2.1.3. Project Documents

▪ Stakeholder Register

The stakeholder register provides an exhaustive list of the key stakeholders who will provide
the requirements and it also captures their main expectations.

▪ Assumption Log
▪ Lessons Learned Register

5.2.1.4. Business Documents

5.2.1.5. Agreements

5.2.1.6. Enterprise Environmental Factors

5.2.1.7. Organizational Process Assets

5.2.2. Collect Requirements – Tools and Techniques

5.2.2.1. Expert Judgement

Expertise should be considered from Individuals and groups with special knowledge and training in
the following topics.

▪ Business Analysis
▪ Requirements elicitation
▪ Requirement Analysis
▪ Diagraming techniques
▪ Conflict Management

5.2.2.2. Data Gathering

Data gathering techniques that can be used for this process includes but not limited to:

▪ Brainstorming
▪ Interviews
▪ Focus Groups
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An elicitation technique that brings together prequalified stakeholders
experts to learn about their expectations and attitudes about a proposed product, service, or
result.

▪ Questionnaires and surveys

Written sets of questions designed to quickly accumulate information from a large number of
respondents.
▪ Benchmarking
Benchmarking is the comparison of 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.

5.2.2.3. Data Analysis

Data Analysis Techniques that can be used for this purpose includes but not limited to document
analysis, which involves reviewing and assessing any relevant documented information. A wide range
of documents are analyzed, such as”
▪ Use Case
▪ Current process flow
▪ Marketing Literature
▪ Business Plans
▪ Others.

5.2.2.4. Decision Making

Decision making techniques that are used in this process includes but not limited to:

▪ Voting
▪ Autocratic Decision Making
▪ Multi-Criteria Decision Analysis

5.2.2.5. Data Representation

Data representation techniques that can be used for this process include but not limited to:

▪ Affinity Diagram. Affinity diagram allows large number of ideas to be classified into groups for
review and analysis.
▪ Mind Mapping. Mind mapping consolidates the ideas collected through individual interviews and
brainstorming into a single map to achieve commonality.

5.2.2.6. Interpersonal and Team Skills

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The techniques used in this process includes but not limited to: Guide

▪ Nominal Group Technique

▪ Observation/Conversation
▪ Facilitation

5.2.2.7. Context Diagram

A visual depiction of the product scope showing a business system (process, equipment,
computer system, etc.), and how people and other systems (actors) interact with it.

5.2.2.8. Prototypes
A method of obtaining early feedback on requirements by providing a working model of the expected
product before actually building it.

5.2.3. Collect Requirements – Outputs

5.2.3.1. Requirements documentation

A description of how individual requirements meet the business need for the project.

Requirements can be grouped into classifications for further refinement. These includes:
▪ Business Requirements.
▪ Stakeholder Requirements
▪ Solution Requirements
▪ Project Requirements
▪ Quality Requirements

5.2.3.2. Requirements traceability matrix

A grid that links product requirements from their origin to the deliverables that satisfy them.
The implementation of a requirements traceability matrix helps ensure that each requirement
adds business value by linking it to the business and project objectives.

5.3. Define Scope

Define Scope process provides a detailed project scope statement which is critical to project success. In
this process, the project scope is defined with greater details and with more specific Information
about the project. Stakeholder needs & expectations are detailed in this document. The assumptions
and constraints are analyzed and detailed in this process.
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Define Scope

Inputs Tools and Techniques Outputs

▪ Project Charter ▪ Expert Judgement ▪ Project Scope Statements

▪ Project Management Plan ▪ Data Analysis ▪ Project Documents Updates
▪ Project Documents ▪ Decision Making
▪ Enterprise Environmental ▪ Interpersonal & Team
Factors
Skills
▪ Organizational Process Assets
▪ Product Analysis

5.3.1 Define Scope – Inputs

5.3.1.2 Project Charter

The Project Charter provides a high level project descriptions, product charecteristics and
approval requirements.

5.3.1.3 Project Management Plan

The component Scope management plan of the project management plan describes how the
project scope will be defined, validated and controlled. Other components of the project
management plan may also be used in this process.

5.3.1.4 Project Documents

Following is a list of project documents that can be used in this process as input.
▪ Assumption Log
▪ Requirements Documentation
▪ Risk Register

5.3.1.5 Enterprise Environmental Factors

The Enterprise environmental factors that can influence the Define Scope process may
include:
▪ Organization Culture
▪ Infrastructure
▪ Market place condition

5.3.1.6. Organizational process assets

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Policies, procedures, templates, project files from previous projects and lessons learned from
previous phases or projects are the part of Organizational Process Assets that can influence
the define scope.

5.3.2. Define Scope – Tools and Techniques

5.3.2.1. Expert Judgment
Expert judgment is often used to analyze the information needed to develop the project
scope statement. Such judgment and expertise are applied to any technical detail.

5.3.2.2. Data Analysis

One of the data analysis technique used for this process is alternatives analysis to be used to evaluate
ways to meet requirements and objectives in the charter.

5.3.2.3. Decision Making

The multi-criteria decision analysis is used but not limited to in this process to apply a systematic
analytical approach to define the project and product scope.

5.3.2.4. Interpersonal and team skills

An example of interpersonal and team skill is facilitation, which is used in workshops and working
sessions with key stakeholders who have a variety of expectation or expertise.

5.3.2.5. Product analysis

Product Analysis can be used for products or services. It includes asking questions about
product or service and forming answers to describe the use, characteristics of relevant
deliverables.

5.3.3. Define Scope – Outputs

5.3.3.1. Project scope statement

The project scope statement is a detailed description of project work and deliverables along
with project boundaries. It provides a common understanding of the project scope among all
stakeholders and describes the project’s objectives in detail. It helps in further detailed
planning, guides during execution, and creating scope baseline. The detailed project scope
statement Includes:
▪ Product Scope Description. Progressively elaborates the characteristics of the product,
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service or result.
▪ Deliverables. Any unique and verifiable product, result or capability to perform a service
required to be complete the project, phase or process.
▪ Project Exclusions. Identifies, what is excluded from the project. Explicitly documents the
“Out-of-Scope” items to manage the stakeholders expectations.
▪ Acceptance Criteria. A set of conditions that needs to be met before the deliverable is
accepted.

5.3.3.2. Project document updates

Project documents that may be updated are:

▪ Stakeholder register
▪ Requirements documentation
▪ Requirements traceability matrix

5.4. Create WBS

The Work Breakdown Structure (WBS) is a deliverable oriented hierarchical decomposition of the
work to be performed by the project team to create the deliverables. The WBS subdivides the project
work into smaller, more manageable pieces of work. Each tower level of the WBS represents further
detailed breakup of the project work. The lowest level nodes are called work packages, which can be
scheduled, estimated, monitored, and controlled by an individual or a team.

Create WBS

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Expert Judgement ▪ Scope Baseline

▪ Project Documents ▪ Decomposition ▪ Project Documents Updates
▪ Enterprise Environmental
Factors
▪ Organizational Process Assets

5.4.1. Create WBS – Inputs

5.4.1.1. Project Management Plan.

The project management plan components include but not limited to Scope management plan.
▪ Scope Management Plan
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The scope management plan specifies how to create the WBS from the detailed project
scope statement and how the WBS will be maintained and approved.

5.4.1.2. Project Documents.

Examples of project documents that can be considered as inputs to this process are:

▪ Project Scope Statement

The project scope statement describes the work that will be performed and the work that is
excluded.
▪ Requirement Documentation.
Detailed requirements describe how individual requirements will meet the business need.
5.4.1.3. Enterprise Environmental Factors
Industry-specific WBS standards, relevant to the nature of the project, may serve as external
reference sources for creation of the WBS.

5.4.1.4. Organizational process assets

Policies, procedures, templates, project files from previous projects and lessons learned from
previous phases or projects are the part of Organizational Process Assets that can influence
the Create WBS process.

5.4.2. Create WBS – Tools and Techniques

5.4.2.1. Decomposition

Breaking down project deliverables into smatter, more manageable components is called
decomposition. Breakdown should be done until the cost and schedule for the work can be
reliably estimated. The Level of detail for work packages will depend on the size and
complexity of the project.

5.4.2.2. Expert Judgment

Expert judgment is often used to analyze the information needed to decompose the project
deliverables down into smaller component parts in order to create an effective WBS. Such
judgment and expertise are applied to technical details of the project’s scope and used to
reconcile differences in opinion on how to best break down the overall scope of the project.

5.4.3 Create WBS – Outputs

5.4.3.1 Scope Baseline

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Scope Baseline is a component of the project management plan which provides the final list of all
deliverables detailed in WBS and WBS dictionary. Any changes to scope beyond this point can be done
through formal change control process only. Scope baseline includes:
▪ Project Scope Statement
▪ WBS
▪ Work Package
▪ Planning Package
▪ WBS Dictionary

5.4.3.2 Project Documents Updates

The Project documents that may be updated as a result of this process are:
▪ Assumption Logs
▪ Requirements Documents

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Sample WBS Dictionary Format

5.5. Validate Scope

Validate Scope is the process of verification of completed project scope and deliverables by
stakeholders. This includes performing review and getting formal acceptance of the deliverable from
stakeholder.

Validate Scope is different from Quality Control process as scope validation is concerned with
acceptance of the deliverables and work as per project scope while Quality Control process focuses
on meeting the quality requirements specified for the deliverables. Usually quality control is
performed before scope verification, but sometimes these two processes can be performed parallelly.

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Validate Scope

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Inspection ▪ Accepted Deliverables

▪ Decision Making ▪ Work performance
▪ Project Documents
information
▪ Verified Deliverables ▪ Change Requests
▪ Work Performance Data ▪ Project Documents Updates.

5.5.1 Validate Scope – Inputs

5.5.1.1 Project Management Plan

The components of the project management plan used in this process includes but not limited to:

▪ Scope Management Plan

▪ Requirement management plan
▪ Scope baseline

5.5.1.2 Project Documents

The project documents that can be considered as input to this process includes but are not limited
to:

▪ Lessons Learned Register

▪ Quality Reports
▪ Requirements Documentation
▪ Requirements traceability matrix
A grid that links product requirements from their origin to the deliverables that satisfy
them. The implementation of a requirements traceability matrix helps ensure that each
requirement adds business value by linking it to the business and project objectives.

5.5.1.3 Verified Deliverables

Verified deliverables are project deliverables that are completed and checked for correctness
through the Control Quality process.

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5.5.1.4 Work Performance Data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes work completed, KPIs, start/finish
dates of activities, number of defects, actual duration and cost etc.

5.5.2. Validate Scope – Tools and Techniques

5.5.2.1. Inspection
Inspection is a process of review which may include measuring, examining, and verifying the
deliverable against project scope statement to determine whether work and deliverables
meet requirements and product acceptance criteria.

5.5.2.2. Decision Making

Techniques to assess multiple alternatives that will be used to generate, classify, and prioritize
product requirements. Voting is considered one of the Decision-making technique but is not
limited to.

5.5.3. Validate Scope – Outputs

5.5.3.1. Accepted deliverables
Deliverables which are accepted after inspection and necessary documentation is prepared.
Rejected deliverables are also documented along with the reasons for non-acceptance.
Validate Scope process includes documentation received from the customer or sponsor and
acknowledging stakeholder’s acceptance of the project’s deliverables.

5.5.3.2. Change requests

Changes may be requested during inspection & reviews in Validate Scope process. These
change requests are submitted for review and approval through the integrated change control
process.

5.5.3.3. Work Performance Information

Work performance data is analyzed in context and integrated based on the relationship across
areas and gets transformed into Work Performance Information which provides a basis for
decisions making associated with project.

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5.5.3.4. Project document updates

Project documents that may be updated as a result of the Validate Scope process include any
documents that define the product or report status on product completion.

5.6. Control Scope

Control Scope process controls the factors which induce changes in project scope. It also controls the
impact of those changes on project scope. Control Scope is associated with Integrated Change Control
process. This process makes sure that all requested changes and recommended corrective actions are
processed through the Integrated Change Control process. This process also manages the actual
changes when they occur in coordination with other control processes. It controls scope creeps, which
is one of the biggest reasons of project failure.

Control Scope

Inputs Tools and Techniques Outputs

▪ Project Management Plan ▪ Data Analysis ▪ Work Performance

Information
▪ Project Documents
▪ Change Requests
▪ Work Performance Data ▪ Project Management Plan
▪ Organizational Process Assets updates.
▪ Project Documents updates

5.6.1. Control Scope – Inputs

5.6.1.1. Project management plan

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

▪ Scope Management Plan

▪ Requirements Management Plan
▪ Change Management Plan
▪ Configuration Management Plan
▪ Scope Baseline
▪ Performance Measurement Baseline
When using Earned Value Analysis, the performance measurement baseline is compared with actual
results to determine if a change, corrective action or preventive action is needed.

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5.6.1.2. Project Documents.

Project Documents that can be considered as inputs to this process are:

▪ Lesson Learned Register

▪ Requirement Documentation
▪ Requirements traceability matrix

A grid that links product requirements from their origin to the deliverables that satisfy them.
The implementation of a requirements traceability matrix helps ensure that each requirement
adds business value by linking it to the business and project objectives.

5.6.1.3. Work performance data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes work completed, KPIs, start/finish
dates of activities, number of defects, actual duration and cost etc.

5.6.1.4. Organization process assets

The organizational process assets that can influence the Control Scope process are:

▪ Existing formal and informal scope, control-related policies, procedures, guidelines

▪ Monitoring and reporting methods and templates to be used

5.6.2. Control Scope – Tools and Techniques

5.6.2.1. Data Analysis

Data analysis techniques that can be used in this process includes but are not limited to:
▪ Variance Analysis
Valiance analysis provides project performance measurements to assess the variation of
actual values against the planned values. It helps in determining the quantifiable impact
of change.
▪ Trend Analysis
Trend analysis examines project’s performance over time to determine if the performance is
improving or deteriorating.

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5.6.3. Control Scope – Outputs
5.6.3.1. Work performance information
Work performance data is analyzed in context and integrated based on the relationship across
areas and gets transformed into Work Performance Information which provides a basis for
decisions making associated with project.

5.6.3.2. Change requests

Analysis of scope performance can result in a change request to the scope baseline or other
components of the project management plan. Change requests can include preventive or
corrective actions, defect repairs, or enhancement requests.

5.6.3.3. Project management plan updates

Project management plan updates may include updates to Scope Baseline and if the approved
change requests have an effect on the project besides the project scope, then the
corresponding cost baseline and schedule baselines are revised and reissued to reflect the
approved changes.

5.6.3.4. Project document updates

Project documents that may be updated as a result of this process are:

▪ Lessons Learned Register

▪ Requirements Documentation

▪ Requirements traceability matrix.

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Chapter 6: Project Time

Management

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6. Project Schedule Management
Project Schedule Management includes the processes required to ensure timely completion of the
project. The following are the list of processes under this knowledge area.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

6 Project Time 6.1 Plan Schedule 6.6 Control

Management Schedule
Management
6.2 Define Activities
6.3 Sequence
Activities
6.4 Estimate Activity
Duration
6.5 Develop Schedule

▪ Plan Schedule Management. The process of establishing the policies, procedures and documentation
of planning, developing, managing, executing, and controlling the project schedule.

▪ Define Activities. The process of identifying & documenting the specific actions to be performed to
produce the project’s deliverables.

▪ Sequence Activities. The process of identifying and documenting the relationship amongst the project
activities.

▪ Estimate Activity Duration. The process of estimating the number of work period needed to complete
the individual activity with estimated resource.

▪ Develop Schedule. The process of analyzing activity sequences, durations, resource requirements, and
schedule constraints to create the project schedule model for project execution, monitoring and
controlling.

▪ Control Schedule. The process of monitoring the status of the project to update the project schedule
and manage changes to the schedule baseline.

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6.1 Plan Schedule Management

Plan Schedule management is the process of establishing the policies, procedures and documentation for
developing, managing, executing and controlling the project schedule. This process provides a guidance and
direction on how the project schedule will be managed throughout the life cycle of the project.

Plan Schedule Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Schedule Management Plan

▪ Project Charter
▪ Data Analysis
▪ Project Management Plan ▪ Meetings
▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

6.1.1. Plan Schedule Management – Inputs

6.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components that will be used
to develop schedule management plan. These subsidiary plans include:

→ Resource Calendar
→ Cost Baseline
→ Milestone List
→ Quality Baseline
→ Risk Register
6.1.1.2. Project Charter
Project Charter provides inputs in developing schedule with regards to key milestones that
will have significant impact on the management of project schedule.

6.1.1.3. Enterprise Environmental Factors

Enterprise Environmental Factors provide inputs with regards to organizational structure
and culture that can impact the development and management of project schedule.

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6.1.1.4. Organizational Process Assets
Organizational Process Assets provides details of scheduling tools that can be used,
historical information and processes that will be used to develop and manage project
schedule.

6.1.2. Plan Schedule Management – Tools and Techniques

6.1.2.1. Expert Judgment
Access to the inputs require to develop the project charter is often provided by Expert
Judgment. Such judgment and expertise are 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 can be made available from several sources including:

→ Other departments/units within the organization

→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

6.1.2.2. Data Analysis

The Data Analysis technique used in this process includes but not limited to alternative analysis.
Alternative analysis can include which scheduling method to be used, how to combine various
methods, to what level the schedule should be detailed out, the duration of rolling wave planning etc.

6.1.2.3. Meetings
Project team may hold planning meetings to develop the schedule management plan.
Participants at these meetings may include project manager, project sponsor, selected team
members, selected stakeholders and anyone who can contribute and responsible in planning
and execution.

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6.1.3. Plan Schedule Management – Outputs
6.1.3.1. Schedule Management Plan
Schedule Management Plan sets the guidelines and defines the necessary steps to be taken to
develop, monitor and control the project schedule. Schedule management plan can establish the
following:

▪ Project Schedule Model. The scheduling methodology and the scheduling tools to be
used in developing project schedule.

▪ Level of accuracy. The acceptable range used to determine realistic activity duration
estimates.

▪ Units of Measures. Each unit of measurements such as staff hours, staff days, or weeks
are defined for each of the resources.

▪ Control Thresholds. This parameter determines the agreed upon variance allowed
between planned and actual data before any corrective or preventive action is taken.

▪ Reporting Formats. The formats and frequency of various schedule reports.

6.2. Define Activities

Define Activities process identifies and documents the activities that needs to be performed by
decomposing the work packages (i.e. lowest level of WBS). These activities provide a basis for
estimating, scheduling, executing, and monitoring & controlling the project work.

Define Activities

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Activity List

▪ Project Management Plan
▪ Decomposition ▪ Activity Attributes
▪ Enterprise Environmental ▪ Rolling Wave Planning ▪ Milestone List
Factors ▪ Meetings ▪ Change Requests
▪ Organizational Process Assets ▪ Project Management Plan
updates

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6.2.1 Define Activities – Inputs
6.2.1.3. Project Management Plan.

The components of the project management plan which can be considered as input to this process
includes but not limited to:

▪ Schedule Management Plan.

▪ Scope Baseline. The scope baseline contains the documented information about WBS,
deliverables and assumptions, which will be used while defining the activities.

6.2.1.4. Enterprise Environmental Factors

Some of the enterprise environmental factors like Project management Information System
and Schedule tools can provide inputs in the process of defining the activities.

6.2.1.5. Organizational Process Assets

Organization process assets containing activity planning related policies, procedures and
guidelines are considered in developing the activity definitions. Lessons learned knowledge
base with historical information regarding activities, lists of previous similar projects may be
used when defining project schedule activities.

6.2.2. Define Activities – Tools and Techniques

6.2.2.1. Decomposition
Decomposition technique involves subdividing the project work packages into smaller, more
manageable components called activities. The Activity Definition process defines the final
outputs as activities and not the deliverables.

6.2.2.2. Rolling Wave Planning

Rolling wave planning is a technique of progressive elaboration planning where the work to
be accomplished in the near term is planned in detail at a low level of the WBS, while work to
be accomplished in the future is planned for WBS components that are at a relatively high
level of the WBS.

With this planning technique, schedule activities can exist at various levels of detail in the
project’s Life cycle. In early stage of planning, when information is less defined, activities
might be listed at the milestone level.

6.2.2.3. Expert Judgment

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Experts with previous experience on similar projects in activityGuide
definition and developing
project schedules may provide their expertise in this process. Such judgment and expertise
are applied to any technical and management details during this process.

6.2.3. Define Activities – Outputs

6.2.3.1. Activity List
A comprehensive list including all activities that are required to be performed for each work
package in the project. This activity list includes the activity identifier and a description of
work for each schedule activity with sufficient detail to ensure that project team understands
what work is required to be completed. The activity
list is used in schedule network diagram as part of project management plan.

6.2.3.2. Activity attributes

Activity attributes for the activities may include:

→ Activity identifier
→ Activity codes
→ Activity description
→ Predecessor activities
→ Successor activities
→ Logical re1ationships
→ Leads and lags
→ Resource requirements
→ Imposed dates
→ Constraints
→ Assumptions
→ Person responsible for executing the work

These attributes provide inputs for further planning including schedule

development.

6.2.3.3. Milestone List

Milestone list contains all milestones along with the information that the particular
milestone is mandatory as contractual requirement or optional as per project requirements
or historical information. The milestone list is a part of the project management plan and used
for scheduling purpose.

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6.2.3.4 Change Request

Once the project is baselined, the progressive elaboration and rolling wave planning may reveal
work that was not identified and defined and a part of the baseline. This may result a change
request.

6.2.3.5 Project Management Plan Updates

Any change to the project management plan shall have to go through the change control process.
Components that may get changed as a result of this process:

▪ Schedule Baseline
▪ Cost Baseline

6.3. Sequence Activities

This is the process of identifying and documenting the logical relationships among schedule activities. This
logical relationship represents inter-activity dependencies.

Logically sequencing of activities can be represented by precedence relationships like Finish to start,
start to finish, start to start and finish to finish. Leads and lags are introduced for preparing a realistic
and achievable project schedule. Project management software provides the facilities of defining and
managing dependencies, led and lag while preparing the project schedule.

Sequence Activities

Inputs Tools and Techniques Outputs

▪ Precedence ▪ Project Schedule network

▪ Project Management Plan
Diagramming Method diagram
▪ Project Documents ▪ Dependency ▪ Project Document Updates.
▪ Enterprise Environmental Determination and
Factors Integration
▪ Leads & Lags
▪ Organizational Process Assets ▪ Project Management
Information System

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6.3.1 Sequence Activities – Inputs

6.3.1.1 Project Management Plan

The components of the project management plan used in this process are:
▪ Schedule Management Plan. Guidelines defined in the Schedule Management Plan will be used
as the key input in this process. Sequencing must be done following the scheduling
methodology, using the right tools defined in the Schedule management plan.
▪ Scope Baseline.

6.3.1.3. Project Documents

The Project documents that is used as input to this process includes but not limited to:

▪ Activity List
▪ Activity attributes
Activity attributes for the activities may include:
→ Activity identifier
→ Activity codes
→ Activity description
→ Predecessor activities
→ Successor activities
→ Logical re1ationships
→ Leads and lags
→ Resource requirements
→ Imposed dates
→ Constraints
→ Assumptions

▪ Milestone List
Milestone list contains all milestones along with the information that the particular milestone
is mandatory as contractual requirement or optional as per project requirements or historical
information. The milestone list is a part of the project management plan and used for
scheduling purpose.

6.3.1.4. Enterprise Environmental Factors

Some of the enterprise environmental factors like Project management Information System
and Schedule tools can provide inputs in the process of sequencing the activities.

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6.3.1.5. Organizational Process Assets
Organization process assets containing activity planning related policies, procedures and
guidelines are considered in developing the activity definitions. Lessons learned knowledge
base with historical information regarding activities, lists of previous similar projects may be
used when sequencing project activities.

6.3.2. Sequence Activities – Tools & Techniques

6.3.2.1. Precedence Diagramming Method (PDM)
Precedence Diagramming Method (POM) is a method of defining sequence of activities and
creating schedule network diagram. POM typically uses rectangle boxes representing
activities and arrows to represent their dependencies. These boxes are called Nodes and this
technique is called as activity on-node (AON).
PDM includes four types or dependency relationships:

→ Finish to Start: The start of the successor activity depends upon completion of the
predecessor activity.
→ Finish to Finish: The completion of the successor activity depends upon the
completion of the predecessor activity.
→ Start to Start: The start of the successor activity depends upon the start of the
predecessor activity.
→ Start to Finish: The completion of the successor activity depends upon the start of
the predecessor activity.

In PDM, finish to start is the most commonly used type of precedence relationship. Start to
finish relationship is rarely used.

6.3.2.2. Dependency determination & integration

Three types of dependencies are used to define the sequence among the activities. These are
Mandatory, Discretionary and External. The project management team determines that
relationships between the activities are mandatory, discretionary or external.

→ Mandatory dependencies: Mandatory dependencies are inherent in the nature of the

project work. These dependencies are often decided due to physical limitations, such
as in any construction project, it is mandatory to build

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foundation before erecting the structure. Mandatory dependencies are also
referred as hard logic.
→ Discretionary dependencies: Discretionary dependencies are usually defined based on
knowledge of best practices and standard procedures for the specific application area.
These relationships are called soft Logic, preferred logic or preferential logic. These
relationships are decided by project management team based on previous experience
on a similar successful project.
→ External dependencies: External dependencies involve a relationship between project
activities and non-project activities or external entitles. For example, the testing activity
in a project may dependent on delivery of specific hardware from an external source.
Historical data of similar previous projects provides inputs for defining this dependency.

6.3.2.3. Leads and Lags

A lead allows an earlier start of the successor activity. This helps in fast tracking in finish-to-
start relationship wherein successor activity starts before the completion of predecessor
activity.
A lag creates a delay in the successor activity. In finish-to-start relationship, the successor
does not start immediately at completion of predecessor activity. Lag is the delay period in
starting the successor activity after completion of predecessor activity.

6.3.3. Sequence Activities – Outputs

6.3.3.1. Project Schedule network diagrams
Project schedule network diagram is schematic display of the project’s schedule
activities with their dependencies.

6.3.3.2. Project document updates

Project documents that may be updated include, but are not limited to:

→ Activity attributes
→ Activity List
→ Project logs (issues, assumptions, etc.), and
→ Milestone List

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6.4. Estimate Activity Duration

Estimate activity duration is the process of estimating the number of work periods needed to
complete individual activities with estimated resource. The Estimating Activity Duration process uses
information like scope of work, required resource types, number of resources, resource calendars and
resource availabilities for determining work periods needed for each activity. These estimates are
progressively elaborated. Factors that may impact this process and should be taken into consideration
are:
▪ Law of diminishing Returns
▪ Number of resources
▪ Advances in technology
▪ Motivation of staff

Estimate Activity Duration

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Duration Estimates

▪ Project Management Plan
▪ Analogous Estimating ▪ Basis of estimates
▪ Project Documents ▪ Parametric Estimating ▪ Project Documents updates
▪ Enterprise Environmental ▪ Three-point estimating
Factors ▪ Bottom up estimating
▪ Data Analysis
▪ Organizational Process Assets ▪ Decision Making
▪ Meetings

6.4.2. Estimate Activity Durations – Inputs

6.4.1.2. Project Management Plan

The components of the project management plan that may be considered as input to this process are:

▪ Schedule Management Plan

▪ Scope Baseline

6.4.1.3. Project Documents

The project documents that can be considered as input are:

▪ Activity List
A comprehensive list including all activities that are required to be performed for each work
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package in the project. This activity list includes the activity identifier
work for each schedule activity with sufficient detail to ensure that project team understands
what work is required to be completed. The activity list is used in schedule network diagram
as part of project management plan.

▪ Activity attributes
Activity attributes provide primary data for identifying and estimating the resources required
for each activity in the activity list. Activity attributes for the activities may include:
→ Activity identifier
→ Activity codes
→ Activity description
→ Predecessor activities
→ Successor activities
→ Logical re1ationships
→ Leads and lags
→ Resource requirements
→ Imposed dates
→ Constraints
→ Assumptions
→ Person responsible for executing the work

▪ Resource calendars
Availability of people, equipment, and material, their location and available quantities are
considered during the process of activity resource estimation.

▪ Risk Register
Risk events may impact resource selection and availability. Updates to the risk register are
included with project documents updates.

6.4.1.4. Enterprise Environmental Factors

Some of the enterprise environmental factors like resource location, skills and availability can
provide inputs in the process of estimating the resource requirements.

6.4.1.5. Organizational Process Assets

Organization process assets containing resource estimation related policies, procedures and
guidelines, rental or purchase of equipment or materials are considered in estimating the
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activity resources. Lessons learned knowledge base with historical information may be used
when estimating resources.

6.4.3. Estimate Activity Durations – Tools and Techniques

6.4.3.1. Expert Judgment
Experts with specialized knowledge of estimation process and experience in similar projects
may be used for activity duration estimate. Project team members with prior experience with
similar projects may also provide duration estimate information or recommended maximum
activity durations.

6.4.3.2. Analogous estimating

Analogous duration estimating technique uses the actual durations of a previous similar
activity as the basis for estimating the duration of a future activity. This is typically used when
available information about the project is very limited to provide detailed estimates. In the
early phases of a project, analogous estimating technique is used with historical Information
and expert judgment.
Reliability of analogous duration estimates is highest when the previous project
activities are similar ‘in fact’ and not just ‘in appearance’.

6.4.3.3. Parametric estimating

Parametric Estimation is a technique in which durations can be determined by multiplying the
‘quantity of work to be performed by the productivity rate or duration per unit, of quantity’.
For example, if one box can be assembled in 2 hour, 100 boxes will take 200 (2x100) hours.

6.4.3.4. Three-point estimates

Three-point estimates are based on determining three types of estimates:

→ Most likely: This uses ‘most likely’ scenario of resource availability,

productivity, dependencies, and interruptions.
→ Optimistic: This uses an ‘optimistic’ (best case) scenario of all the factors considered
in ‘most likely’ estimates.
→ Pessimistic: This uses a ‘pessimistic’ (worst case) scenario of all the factors
considered in ‘most likely’ estimates.

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An activity duration estimate can be determined by using an average of the three estimated
durations, i.e. optimistic, pessimistic and most likely. That average will often provide a more
accurate duration estimate than the single point (most likely) estimate.

6.4.3.5. Bottom up estimating

Bottom estimation technique for project duration or cost is considered the most accurate as the
estimation is done at the lowest level of the WBS and then it is aggregated to achieve the project
duration. When activity duration cannot be estimated with a relative degree of confidence, it is
further decomposed for more details.

6.4.3.6. Data Analysis

The data analysis techniques that can be used for this purpose may be :

▪ Alternative Analysis
▪ Reserve Analysis. Reserve analysis is used to determine how much amount is needed for
contingency and management reserve. Contingency Reserves are amount included in the
schedule baseline, which are allocated for identified risks. It is also known as reserve for “Known-
unknown” . This could be a percentage of the project duration or a fixed number of days.
Management Reserves on the other hand are the specified amount of money held with
management and is associated for un-identified risks or “unknown-unknown” . Management
Reserve is not included in schedule baseline.

6.4.3.7. Decision making

The most common technique used is voting. This is a very common technique where instead
of an individual, a group of people who have expertise in the work to be carried out, are
engaged to improve the accuracy of estimates. One variation of voting method used in agile
based projects is fist of five. There are five position of fist which determines the participants
vote towards an estimate.

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6.4.3.8. Meetings

The project team may hold meetings to estimate activity duration. When using agile approach, it is
necessary to conduct sprint or iteration planning meetings to discuss the product backlog,
prioritization and decide upon the items on which the team will start working on the next iteration.

6.4.4. Estimate Activity Durations – Outputs

6.4.4.1. Duration estimates
Activity duration estimates are the primary outputs of this process which provides the likely
number of work periods that will be required to complete a scheduled activity. In some
situations duration estimates can be represented in a range like 20 days +/- 3 days (17 days –
23 days).

6.4.4.2. Basis of estimates

Basis of estimates provides a clear understanding on the basis the estimation was carried out. This
could be very high level or granular, but it must be documented.

6.4.4.3. Project document updates

Project documents that may be updated include, but are not limited to:

→ Activity attributes,
→ Project logs (issues, assumptions, etc.), and

6.5. Develop Schedule

Develop Schedule is the process of determining planned start and finish dates for project activities.
Schedule development is an iterative process which requires review & refinement based on duration
and resource estimates. An approved project schedule becomes baseline against which project
progress is monitored.

Develop Schedule process continues throughout the project as re-planning may be needed due to
change requests, or risk situation or upon identification of new risks.

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Develop Schedule

Inputs Tools and Techniques Outputs

▪ Schedule network ▪ Schedule Baseline

▪ Project Management Plan
analysis ▪ Project Schedule
▪ Project Documents ▪ Critical path method ▪ Schedule Data
▪ Agreements ▪ Resource optimization ▪ Project Calendars
▪ Data Analysis ▪ Change Requests
▪ Enterprise Environmental ▪ Leads & Lags ▪ Project Management Plan
Factors ▪ Schedule compression updates
▪ Organizational Process Assets ▪ Project management ▪ Project Documents Updates
information system
▪ Agile release planning

6.6.1. Develop Schedule – Inputs

6.6.1.1. Project Management Plan

The components of the project management plan used as input to this process are :

▪ Schedule Management Plan

Guidelines defined in the Schedule Management Plan will be used as the key input in this
process. Duration estimation must be done following the methodology, using the right tools
defined in the Schedule management plan.

▪ Scope Baseline

6.6.1.2. Project Documents

Project documents that can be considered as inputs for this process includes but not limited to:

▪ Activity List
A comprehensive list including all activities that are required to be performed for each work
package in the project are used as a key input in this process as for each activity in the list,
schedule date will be identified in this process.

▪ Activity attributes
Activity attributes provide additional data for developing the schedule for each activity in
the activity list. Activity attributes for the activities may include:
→ Activity identifier

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→ Activity codes
→ Activity description
→ Predecessor activities
→ Successor activities
→ Logical re1ationships
→ Leads and lags
→ Resource requirements
→ Imposed dates
→ Constraints
→ Assumptions
→ Person responsible for executing the work

▪ Project schedule network diagrams

Project schedule network diagram represents activity dependencies in the project.

▪ Resource requirements
Resource requirement and their availability are used as an input as they may have a significant
impact on overall schedule.

▪ Resource calendars
Resource calendar is used along with project calendar. The resource calendar provides
Information on working days or shifts with working and non-working time or the resources.

▪ Duration estimates
Activity duration estimates provide the likely number of work periods that will be required to
complete a schedule activity.

▪ Risk Register
Risk events may impact project schedule. Due to certain risks, the team may decide to carry out
certain activities at a different date or time. Updates to the risk register are included with
project documents updates.

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6.6.1.3. Agreements

Project has suppliers and con tractors, who may have input to be considered in the project schedule.

6.6.1.4. Enterprise environmental factors

Some of the enterprise environmental factors like standards, communication channels and
scheduling tools can provide inputs in the process of developing schedule.

6.6.1.5. Organizational process assets

The organizational process assets such as project calendars are used in developing schedule.
The project calendar of working days or shifts with working and non- working time is used for
preparing the schedule.

6.6.2. Develop Schedule – Tools and Techniques

6.6.2.1. Schedule network analysis
Project schedule network diagram is schematic display of the project’s activities with their
dependencies. Schedule network analysis generates the project schedule by using techniques
like Critical Path method, Critical Chain method, What If analysis and Resource Leveling.

This process calculates the early start, early finish, late start and late finish dates in the project
schedule. This analysis also provides scheduled start and finish dates for the uncompleted
project activities.

6.6.2.2. Critical Path Method (CPM)

The critical path method is a schedule network analysis technique which calculates the
theoretical early start and finishes dates, and late start and finish dates, for all activities
without considering any resource limitations or constraints. The process of identifying critical
path includes:

→ Forward pass analysis to calculate early start and early finish dates

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→ Backward pass analysts to calculate late start and late finish dates
→ Analysis of float to identify critical path

Calculated early start and finish dates, and late start and finish dates may or may not be the
same on any network path since total float, may be positive, negative, or zero.

6.6.2.3. Critical Chain Method

The critical chain method (CCM) is a schedule method that allows the project team to place
buffers on any project schedule path to account for limited resources and project
uncertainties. It is developed from the critical path method approach and considers the
effects of resource allocation, resource optimization, resource leveling, and activity duration
uncertainty on the critical path determined using the critical path method.

6.6.2.4. Resource Optimization Techniques

Resource Optimization is a schedule network analysis technique to address the situation
where shared or critical resources are available at certain times or in limited quantities.
Resource usage is optimized using resource leveling that is performed after identlft1ng the
critical path and it may force changes in critical path due to constraints on availability of
critical resources. The two commonly used methods are:

▪ Resource Leveling
▪ Resource Smoothing
6.6.2.5. Data Analysis

Data Analysis techniques which are used in this process are:

▪ What-If Scenario Analysis. In this technique various scenarios are evaluated in order to predict
their effect positive or negative on the project schedule.
▪ Simulation. Simulation is a technique where project risks and other sources of uncertainties are
evaluated to assess its impact on the project schedule. Monte-Carlo Analysis is one of the most
used simulation technique.

6.6.2.6. Modeling Techniques

Schedule modeling technique provides a representation of data and related information for
the project. It helps identifying various factors which may have significant influence on the
project schedule such as how delay in a major component delivery can impact specific activity
durations or schedule.

6.6.2.7. Leads and Lags

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The leads or Lags are adjusted during schedule network analysisGuide
to develop a viable project
schedule.

A lead allows an earlier start of the successor activity. This helps in fast tracking in finish-to-
start relationship wherein successor activity starts before the completion of predecessor
activity.

A lag creates a delay in the successor activity. In finish-to-start relationship, the successor
does not start immediately at completion of predecessor activity. Lag is the delay period in
starting the successor activity after completion of predecessor activity.

6.6.2.8. Schedule compression

Schedule compression is a technique to shorten the project schedule to meet schedule
constraints, imposed dates, or other schedule objectives without compromising on the project
scope. Schedule compression can be done by using two following techniques:

1) Crashing: Schedule crashing is performed by adding more resources in order to

complete the activity earlier. Assigning more resources may results in more cost. The
cost and schedule tradeoffs are analyzed to determine how to obtain the greatest
amount of compression for the least increase in cost. Crashing may not always
produce a viable alternative and can result in increased cost.
2) Fast Tracking: Fast tracking is performed by parallel execution of phases or activities
that are normally done in sequence. The parallel execution of activity results in
increased risk of achieving the shortened project schedule as incomplete predecessor
may force some rework on successor activity.

6.6.2.9. Project Management Information System(PMI®S)

Project Management information systems with scheduling tools is used to expedite the
process of developing schedule model. MS Project can be used to develop the project
schedule.

6.6.2.10. Agile Release Planning

Agile Release planning provide a high-level summary time line of release schedule based on the
product roadmap and product vision. This also helps the product owner to determine how much can
be produced and how long it will take to release a marketable product. For Agile based project
release planning and iteration planning are mode of determining the feature wise project schedule.

6.6.3. Develop Schedule – Outputs

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6.6.3.1. Schedule baseline
A schedule baseline is a specific version of the project schedule which is accepted and
approved by the project management team as the schedule that can be changed only following
through change control process. Baseline start and baseline finish dates are compared with
actual dates to determine if the project is on schedule or there is any variance.

6.6.3.2. Project Schedule

The project schedule is primary output of schedule development process. It includes planned
start & finish dates, durations, milestones, and resources for overall project and planned start
& finish dates for each activity. The project schedule in summary form is known as the master
schedule or milestone schedule. A project schedule can be presented in tabular form as well
as graphically using following formats:

1) Project schedule network diagrams: These diagrams show the schedule activity dates,
project network logic and the critical path. The activity-on-node diagram

or a time scaled schedule network diagram is used for representing network diagram.
2) Bar Charts: These charts contain bars representing activities, show activity start and end
dates, as well as expected durations. At broader level, more comprehensive summary
activity, also called as hammock activity, is used between milestones or across multiple
interdependent work packages.
3) Milestone Charts: These charts contain bar representing the scheduled start or
completion of major deliverables and key external interfaces.

6.6.3.3. Schedule data

This is supporting data for the project schedule. This may include schedule alternative
schedule, best-case or worst-case scenario, resource histograms showing resource
requirements at time periods etc.

6.6.3.4. Project Calendars

A project calendar may be updated to document the working days and shifts when the
scheduled activities will be carried out.

6.6.3.5. Change Requests

Modification to project scope or project schedule may result in change requests in scope baseline or
components of project management plan. Changes are processed through integrated change control
and corrective actions can be undertaken to reduce negative schedule variance.

6.6.3.6. Project management Plan Update

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Since this process can be followed multiple times in the project, anGuide
update to project schedule
baseline and schedule management plan may get updated if needed.

6.6.3.7. Project documents updates

Project documents that may be updated include, but are not limited to:

→ Activity resource requirements

→ Activity attributes
→ Calendars
→ Risk registers

6.6. Control Schedule

Control Schedule process is a part of the Monitor & Control process group. This process helps
determining the current status of the project schedule, influencing the factors, by taking corrective or
preventive actions, that causes deviations from project schedule and also determining that the project
schedule has changed. The actual project progress is updated and changes to the schedule baseline
are managed in this process to ensure timely completion of the project activities and project.

Control Schedule

Inputs Tools and Techniques Outputs

▪ Data Analysis ▪ Work Performance

▪ Project Management Plan
▪ Critical path method Information
▪ Project Documents ▪ Resource optimization ▪ Schedule Forecasts
▪ Work Performance Data ▪ Leads & Lags ▪ Change Requests
▪ Project management ▪ Project Management Plan
▪ Organizational Process Assets information system updates
▪ Schedule Compression ▪ Project Documents Updates

6.7.1. Control Schedule – Inputs

6.7.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components and it can be
either summary level or detailed. The key information referred to in this process is
schedule management plan and schedule baseline that provides information around how
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the schedule will be managed and project actuals will be compared to what to identify if
any deviations have happened.

6.7.1.2. Project Documents

The project Document that can be input to this process are:

▪ Project Schedule. The project schedule is primary output of schedule development
process. It includes planned start & finish dates, durations, milestones, and resources for
overall project and planned start & finish dates for each activity. The project schedule in
summary form is known as the master schedule or milestone schedule. A project schedule
can be presented in tabular form as well as graphically using following formats:

o Project schedule network diagrams: These diagrams show the schedule activity
dates, project network logic and the critical path. The activity-on- node diagram
or a time scaled schedule network diagram is used for representing network
diagram.

o Bar Charts: These charts contain bars representing activities, show activity start
and end dates, as well as expected durations. At broader level, more
comprehensive summary activity, also called as hammock activity, is used
between milestones or across multiple interdependent work packages.
o Milestone Charts: These charts contain bar representing the scheduled start or
completion of major deliverables and key external interfaces.
▪ Project Calendars: A project calendar may be required for some activities to calculate the
schedule forecast.
▪ Schedule Data: Supporting data for the project schedule that includes alternative schedule, best-
case or worst-case scenario, resource histograms showing resource requirements at time periods
etc. may get updated in this process.

6.7.1.3. Work performance Data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes work completed, KPIs, start/finish
dates of activities, number of defects, actual duration and cost etc.

6.7.1.4. Organizational process assets

Policies procedures and guidelines that can influence the Control Schedule process are
referred to and when needed in this process.
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6.7.2. Control Schedule – Tools and Techniques

6.7.2.1. Data Analysis

Data Analysis techniques which are used in this process are:

▪ Earned Value Analysis: The performance measurement SV (Schedule Variance) & SPI (Schedule
Performance Index) are used as a part of EVM analysis.
▪ Iteration burndown chart: For agile projects this tool is used to track the work remaining to be
completed in the iteration backlog. It is used to calculate the variance with respect to ideal
burndown.

▪ Performance reviews. Performance review techniques provide schedule performance

information such as comparison of actual and planned dates, percent complete and
duration needed to complete the remaining work. Various techniques like trend analysis,
critical path analysis, critical chain analysis and Earned Value management are used to
review the performance of the project.

Earned value management is the key technique used in performance review. Schedule
performance measurements such as schedule variance (SV) and schedule performance
index (SPI), are used to assess the magnitude of variation to the original schedule baseline.
The total float and early finish variances are also essential planning components to
evaluate project time performance. Important aspects of schedule control include
determining the cause and degree of variance relative to the schedule baseline, estimating
the implications of those variances for future work to completion, and deciding whether
corrective or preventive action is required.
▪ Trend Analysis
▪ Variance Analysis
▪ What-if scenario Analysis

6.7.2.2. Critical Path Method

6.7.2.3. Project management Information System
Project Management tools such as MS Project can be used to compare actual dates with
planned dates and to forecast the effect of changes or deviations to project schedule.

6.7.2.4. Resource Optimization Techniques

Resource Optimization is a schedule network analysis technique to address the situation

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where shared or critical resources are available at certain times or in limited quantities.
Resource usage is optimized using resource leveling that is performed after identlft1ng the
critical path and it may force changes in critical path due to constraints on availability of
critical resources.

6.7.2.5. Leads and Lags

The leads or Lags are adjusted during schedule network analysis to develop a viable project
schedule.

A lead allows an earlier start of the successor activity. This helps in fast tracking in finish-to-
start relationship wherein successor activity starts before the completion of predecessor
activity.

A lag creates a delay in the successor activity. In finish-to-start relationship, the successor
does not start immediately at completion of predecessor activity. Lag is the delay period in
starting the successor activity after completion of predecessor activity.

6.7.2.6. Schedule compression

Schedule compression is a technique to shorten the project schedule to meet schedule
constraints, imposed dates, or other schedule objectives without compromising on the project
scope. Schedule compression can be done by using two following techniques:

1) Crashing: Schedule crashing is performed by adding more resources in order to complete

the activity earlier. Assigning more resources may results in more cost. The cost and
schedule tradeoffs are analyzed to determine how to obtain the greatest amount of
compression for the least increase in cost. Crashing may not always produce a viable
alternative and can result in increased cost.
2) Fast Tracking: Fast tracking is performed by parallel execution of phases or activities
that are normally done in sequence. The parallel execution of activity results in
increased risk of achieving the shortened project schedule as incomplete predecessor
may force some rework on successor activity.

6.7.3. Control Schedule – Outputs

6.7.3.1. Work performance Information

Work performance Information is provided by calculating schedule variance (SV) and Schedule
Performance Index (SPI) values for WBS components, in particular the work packages. This
information is documented and communicated to stakeholders as per project reporting
requirements.

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6.7.3.2. Schedule Forecast

Schedule forecasts are predictions of conditions and events in the project’s future based on the work
performance information comparing it with the schedule baseline. The EVM parameters such as SV and
SPI can be used to indicate the project’s past performance and expected future performance.

6.7.3.3. Change requests

Request to make changes to the project schedule baseline may be created due to variance in
schedule or modification to the project schedule model. Project schedule changes may or may
not require changes to other components of the project management plan. Requested
changes are processed for review and implemented through the Integrated Change Control
process.

6.7.3.4. Project management plan updates

Some elements of the project management plan may require update are Schedule Baseline,
Schedule Management Plan and Cost Baseline to reflect any approved changes resulting from
Control Schedule process.

6.7.3.5. Project documents updates

Project documents that may be updated include, but are not limited to:

→ Project Schedule
→ Schedule Data
→ Risk registers

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Chapter 7: Project Cost

Management

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

- The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

7 Project Cost 7.1 Plan Cost 7.4 Control

Management Cost
Management
7.2 Estimate
Cost
7.3 Determine
Budget

▪ Plan Cost Management. The process of determining how the project costs will be estimated,
budgeted, managed, monitored and controlled.

▪ Estimate Cost. The process of estimating the cost of the resources needed to complete the work.

▪ Determine Budget. The process of aggregating the estimated costs of authorities and work packages
to establish an authorized cost baseline for the project

▪ Control Cost. The process of monitoring the status of the project vis-à-vis the actual spend and
applying corrective and preventive actions to reduce the negative cost variance.

7.1 Plan Cost Management

Plan Cost Management is the process of defining how the project cost will be estimated, budgeted, managed,
monitored and controlled. The key benefit of this process, that it provides guideline and direction on how the
project cost will be managed throughout the lifecycle of the project.

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Plan Cost Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Cost Management Plan

▪ Project Charter
▪ Data Analysis
▪ Project Management Plan ▪ Meetings
▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

7.1.1. Plan Cost Management – Inputs

7.1.1.1. Project Charter

The project charter provides the information on high level pre-approved project budget. It also
provides the project approval requirement which may influence the management of project costs.

7.1.1.2. Project Management Plan

The components of the project management plan that could be an input to this process
includes but not limited to :

▪ Schedule Management Plan. The schedule management plan provides processes and
controls that will impact the estimation and management of project cost.

▪ Risk Management Plan. The Risk management plan provides processes and controls
that may impact the estimation and management of project cost.

7.1.1.3. Enterprise Environmental Factors

The enterprise environmental factors is used to identify the factors that influence the Plan
Cost Management process. Factors such as organizational culture and structure, market
conditions, currency exchange rates for project costs sourced from more than one country,
published commercial information such as resource cost rate information and project
management information system, which provides alternative possibilities for managing cost.

7.1.1.4. Organizational Process Assets

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Organizational process assets provide a list of cost estimating andGuide
budgeting-related policies,
procedures, and guidelines, financial controls procedures, Historical information and lessons
learned knowledge bases that is used as a key input in developing the Cost Management plan.

7.1.2. Plan Cost Management – Tools and Techniques

7.1.2.1. Expert Judgment
Access to the inputs require to develop the cost management plan is often provided by Expert
Judgment. Such judgment and expertise are 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 can be made available from several sources including:

→ Other departments/units within the organization

→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

7.1.2.2. Data Analysis

The data analysis technique that can be used in this process is alternative analysis, which can
include reviewing strategic funding option for the project. This also helps to determine the
make or buy decision with respect to cost.

7.1.2.3. Meetings
While developing the cost management plan, project manager, project team and stakeholders may
need to conduct meetings to discuss cost management plan.

7.1.3. Plan Cost Management – Outputs

7.1.3.1. Cost Management Plan
Cost Management Plan sets the guidelines and defines the necessary steps to be taken to
develop, monitor and control the project budget. Cost management plan may consist
methodology, tools, level of accuracy, currency etc.

7.2. Estimate Cost

Approximate cost estimates are developed for all activities after consideration of risks and all causes
of possible cost variation. This quantitative assessment process generates an elaborated Activity Cost
Estimate. Various alternative estimates are identified and considered. All additional costs are checked
for justification in additional savings in the life cycle process. For example, in most application areas,
additional work during a design phase is widely held to have the potential for reducing the cost of the
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execution phase and product operations. To facilitate comparison between
control/management purposes, cost estimates are generally expressed in units of currency or estimate
units such as staff hours or staff days are used along with currency.

Cost estimates are refined and adjusted during the project lifecycle to reflect additional details
available. Wherever required, guidelines are generated for when such refinements are made and for
what degree of accuracy is expected. Resource’s for which costs are estimated Include infrastructure,
tabor, materials, equipment etc. and special categories like inflation, contingency etc. If the
performing organization does not have formally trained project cost estimators, then the project team
will need to supply both the resources and the expertise to perform project cost estimating activities.

Estimate Cost

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Cost Estimates

▪ Project Management Plan
▪ Analogous Estimation ▪ Basis of estimates
▪ Project Documents ▪ Parametric Estimation ▪ Project Documents Updates
▪ Enterprise Environmental ▪ Three-point Estimation
Factors ▪ Data Analysis
▪ Project Management
▪ Organizational Process Assets Information System
▪ Decision making

7.2.1. Estimate Cost – Inputs

7.2.1.1. Project Management Plan
The components of the project management plan that can be considered as input to this
process includes but not limited to:

▪ Cost Management Plan.

The cost management plan defines how project costs will be managed and controlled. It
includes the method used and the level of accuracy required to estimate activity cost.
▪ Quality Management Plan
The Quality management plan describes the activities and resources necessary for the
project to meet the quality objective of the project.
▪ Scope Baseline
Scope baseline is comprised of project scope statement, WBS and WBS dictionary. The
constraints like project budget, delivery dates, availability of human and material resources,
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assumptions limiting factors etc. are derived from the Project scope
and dependencies between all project components as described in WBS is used for building
effective and accurate cost estimates. WBS dictionary provides clarity among deliverables to
facilitate accurate estimation.

7.2.1.2. Project Documents

The project documents used as input to this process includes but not limited to:

▪ Project Schedule
Project Schedule includes activity resource and duration estimations, provides the most
important inputs for cost estimation - quality, quantity and availability of human and material
resources. All costs including charges, interest rates, agreements, cost variations, overhead
costs are derived out of the Project Schedule.
▪ Risk Register
All risks are considered in developing alternative cost estimates. Risks, either threats or
opportunities are studied and expected variations are planned for.
▪ Lessons Learned Register
▪ Resource Requirements

7.2.1.3. Enterprise Environmental Factors

The Cost Estimating Process Considers Marketplace conditions: Market costs, terms and
conditions of project resources. It can also use Commercial databases that help track/compare
quantity of human and other resources at different skill/attribute levels at their respective
costs.

7.2.1.4. Organizational Process Assets

Existing internal procedures, policies and guidelines are used for estimating the cost. It also
provides templates for cost estimation, historical information and lesson learned from
previous projects.

7.2.2. Estimate Cost – Tools and Techniques

7.2.2.1. Expert Judgment
Experts with specialized knowledge of estimation process and experience in similar projects
may be used for activity cost estimate. Project team members with prior experience with
similar projects may also provide cost estimation information.

7.2.2.2. Analogous estimating

Analogous cost estimating technique uses the actual cost of a previous similar activity as the
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basis for estimating the cost of a future activity. This is typically
information about the project is very limited to provide detailed estimates. In the early phases
of a project, analogous estimating technique is used with historical Information and expert
judgment.

7.2.2.3. Parametric estimating

Parametric Estimation is a technique in which cost can be determined by multiplying the
‘quantity of work to be performed by the resource rate or cost per unit, of quantity’. For
example, If one square foot of area can be constructed in USD 10, 100 Square feet will take
1000 (10x100) USD.

7.2.2.4. Bottom-up Estimating

Individual activities are estimated for the smallest detail. All costs are then aggregated and
used for reporting, tracking and control purposes. In this method, the individual activity cost
consciousness is of prime importance.

7.2.2.5. Three-point estimates

Three-point estimates are based on determining three types of estimates:

→ Most likely: This uses ‘most likely’ scenario of resource availability,
productivity, dependencies, and interruptions.
→ Optimistic: This uses an ‘optimistic’ (best case) scenario of all the factors
considered in ‘most likely’ estimates.
→ Pessimistic: This uses a ‘pessimistic’ (worst case) scenario of all the factors considered in ‘most
likely’ estimates.

An activity cost estimate can be determined by using an average of the three estimated cost,
i.e. optimistic, pessimistic and most likely. That average will often provide a more accurate
cost estimate than the single point (most likely) estimate.

7.2.2.6. Data Analysis

The Data analysis techniques used in this process includes:

▪ Alternative Analysis.
▪ Reserve Analysis
All identified risks and their impact is considered while estimating the cost. Some additional
cost is added to project cost estimates, which is known as contingency reserve, cost reserve
or buffer. The contingency reserve can be a percentage of the estimated cost, a fixed cost, or

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developed by quantitative risk analysis. As estimation process proceeds
detailed information, the contingency reserve can be used completely or partially, or can later
be reducedor eliminated.
▪ Cost of Quality
Cost of Quality refers to the investment needed for conformance vs the cost of non-conformance. In
other words, the cost to fix bug vs investment to ensure reduced bugs. Cost of Quality could be
important factor for project cost and should be considered while estimation.

7.2.2.7. Project Management Information System

Widely available cost estimation application or any project management software can be used
to for faster and more accurate estimation of cost.

7.2.2.8. Decision making

This is a very common technique where instead of an individual, a group of people who have
expertise in the work to be carried out, are engaged through brainstorming, Delphi or nominal
group techniques to improve the accuracy of estimates.

7.2.3. Estimate Cost – Outputs

7.2.3.1. Cost Estimates
A cost estimate is a quantitative assessment of the likely costs of the resources required to
complete activities. This type of estimate can be presented in summary form or in detail. Costs
are estimated for all resources, human and material and may consider inflation, contingency
reserves etc.

7.2.3.2. Basis of Estimate

Details validating the derivation of the cost estimates are provided. Supporting details for
justification of cost estimate can include description of activity’s scope of work,
documentation of how it was estimated, what tools were used and what assumptions &
constraints have been considered.

7.2.3.3. Project Documents Updates.

The project documents which gets updated as a result of this process includes but not limited to:

▪ Risk Register
▪ Assumption Log
▪ Lessons Learned Register

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7.3. Determine Budget

Determine budget involves aggregating the estimated cost of individual activities or work packages to
establish a total cost baseline for measuring project performance. The project scope statement may
provide the summary budget. However, activity or work package cost estimates are prepared prior to the
detailed budget requests and work authorization.

Determine Budget

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Cost Baseline

▪ Project Management Plan
▪ Cost Aggregation ▪ Project Funding
▪ Project Documents ▪ Data Analysis Requirements
▪ Business Documents ▪ Historical information ▪ Project Documents Updates
review
▪ Agreements ▪ Funding limit
▪ Enterprise Environmental reconciliation
Factors ▪ Financing

▪ Organizational Process Assets

7.3.1. Determine Budget – Inputs

7.3.1.1. Project Management Plan

The components of the project management plan which could be used as input to this process
includes but not limited to:

▪ Cost Management Plan

The cost management plan defines how project costs will be managed and controlled. It
includes the method used and the level of accuracy required to estimate activity cost.

▪ Resource Management Plan

The resource management plan provides information on rates, estimation of travel costs, and
other costs that are necessary to consider for project costing.

▪ Scope Baseline
Scope baseline is comprised of project scope statement, WBS and WBS dictionary. The
constraints like project budget, delivery dates, availability of human and material resources,
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assumptions limiting factors etc. are derived from the Project scope
and dependencies between all project components as described in WBS is used for building
effective and accurate cost estimates. WBS dictionary provides clarity among deliverables to
facilitate accurate estimation.

7.3.1.2. Project Documents

The project documents that can be input to this process includes but not limited to:

▪ Cost Estimates
An activity cost estimate is a quantitative assessment of the likely costs of the resources
required to complete activities. This type of estimate can be presented in summary form or in
detail. Costs are estimated for all resources, human and material and may consider inflation,
contingency reserves etc.
▪ Basis of Estimate
Details validating the derivation of the cost estimates are provided. Supporting details for
justification of cost estimate can include description of activity’s scope of work,
documentation of how it was estimated, what tools were used and what assumptions &
constraints have been considered.
▪ Project Schedule
Project Schedule includes activity resource and duration estimations, provides the inputs for
determining budget - quality, quantity and availability of human and material resources. All
costs including charges, interest rates, agreements, cost variations, overhead costs are
derived out of the Project Schedule.

▪ Risk Register
Risk events may impact project budget. All risks are considered in developing alternative cost
estimates and the cost of response should be aggregated to make a part of the project budget.

7.3.1.3. Business Documents

The business documents that can be considered as input includes but not limited to:
▪ Business Case.
▪ Benefits management plan

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7.3.1.4. Agreements
Agreements with external vendors regarding what product, service or results have been
purchased – and their costs are used in developing the budget.

7.3.1.5. Organizational Process Assets

The organizational process assets that influence the Determine Budget process include
existing formal and informal cost budgeting-related policies, procedures, and guidelines, Cost
budgeting tools and Reporting methods.

7.3.2. Determine Budget – Tools and Techniques

7.3.2.1. Expert Judgment

Experts with specialized knowledge of budgeting process and experience in similar projects
may be used for determining the project budget. Project team members with prior experience
with similar projects may also provide information while determining the budget.

7.3.2.2. Cost Aggregation

Activity cost estimates are aggregated and grouped by work packages which may be then
grouped by higher Levels (Control Accounts) then finally by entire the entire project.

7.3.2.3. Data Analysis .

▪ Reserve Analysis
Reserve or management contingency allowance are used to deal with uncertainty or “known
unknowns”. The reserve is added to project budget but not distributed to project team as
budget.

7.3.2.4. Historical Information Review

Any historical relationships that result in parametric estimates or analogous estimates involve
the use of project characteristics (parameters) to develop mathematical models to predict
total project costs.

7.3.2.5. Funding Limit Reconciliation

Funds are reconciled and based on the results, new limits are set and WBS components etc.
are adjusted. This may impact allocation of resources to the project. If costs are used in the
schedule development process, the process is repeated with new constraints and a new cost
baseline is derived.
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7.3.2.6. Financing

Financing refers to acquiring funding for the project. It is common for long term infrastructure,
industrial and public service projects to seek external sources of funds. If the project is funded
externally then the funding entity may have terms and conditions which needs to be taken into
consideration.

7.3.3. Determine Budget – Outputs

7.3.3.1. Cost Performance Baseline
The cost baseline is a time phased budget that is used as a basis against which overall cost
performance on the project is measured, monitored, and controlled. Many projects,
especially large ones, have multiple cost or resource baselines to measure different aspects of
project performance.

7.3.3.2. Project Funding Requirements

Funding requirements are derived from the cost baseline and can be established to exceed to
allow for either early progress or cost overrun. Funding usually occurs in incremental. The
total funds required are those included in the cost baseline plus the management contingency
reserve amount. The cost baseline and cash flow Lines would increase when a portion of the
management reserve is authorized and when it is spent.

7.3.3.3. Project Document Updates

Project documents that may be updated include risk register, activity cost estimates and
project schedule.

7.4. Control Costs

Control cost is the process of monitoring the status of the project to update the project cost and managing
changes to the cost baseline. The cost baseline is maintained throughout the project.

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Control Cost

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Work Performance

▪ Project Management Plan
▪ Data Analysis Information
▪ Project Documents ▪ Historical information ▪ Cost Forecast
▪ Project Funding Requirements review ▪ Change Requests
▪ To-Complete ▪ Project Management Plan
▪ Work performance Data Performance Index. Updates
▪ Organizational Process Assets ▪ Project Management ▪ Project Documents Updates.
Information System

7.4.1 Control Costs – Inputs

7.4.1.3. Project Management Plan

The components of the project management plan which can be included as input are :

▪ Cost Management Plan

▪ Cost Baseline
▪ Performance measurement baseline

7.4.1.4. Project Documents

7.4.1.5. Work Performance Data
Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes costs that have been authorized and
incurred.

7.4.1.6. Organizational Process Assets

Existing formal and informal cost control-related policies, procedures, and guidelines, Cost
control tools and Monitoring and reporting methods provide the key inputs in Control Cost
process.

7.4.2. Control Costs – Tools and Techniques

7.4.2.1. Expert Judgement

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7.4.2.2. Data Analysis

Examples of data analysis techniques used during control cost process includes but not limited to :

▪ Variance Analysis

Variance analysis refers to analyzing the variance parameters of EVM such as cost variance (CV=PV-
AC), Schedule Variance (SV=PV-EV) and variance at completion (VAC=BAC-EAC).
An important aspect of project cost control is to determine the cause and degree of the variance
relative to the cost baseline and deciding if a corrective or preventive action is required. Further
analysis can be performed to determine the cause and degree of the schedule variance and deciding
if a corrective or preventive action is required.

▪ Earned Value Analysis

Earned value analysis combines scope, schedule, and resource measurements to assess
project performance and progress. It compares the cumulative value of scope, time and cost
baseline to form the performance baseline to assess and measure project performance and
progress. The earned value technique involves developing these key values to each activity,
work package or control account:

→ Planned value (PV): The authorized budget assigned to scheduled work.

→ Earned value (EV): The measure of work performed expressed in terms of the budget
authorized for that work.
→ Actual cost (AC): The realized cost incurred for the work performed on an activity during a
specific time period.
→ Cost variance (CV): CV is EV – AC. The cost variance at the end of the project will be the
difference between the budget at Completion (BAC) and the actual amount spent.
→ Schedule variance (SV): SV is EV - PV. Schedule variance will ultimately equal zero when
the project is completed because all of the planned values will have been earned.
→ Schedule performance Index (SPI): SPI is EV/PV. The SPI is used in addition to the schedule
status, to predict the completion date and is sometimes used in conjunction with the CPI to
forecast the project completion estimates. SPI equals the ratio of the EV to the PV.
→ Cost performance Index (CPI): CPI is EV/AC. CPI value Less than 1.0 indicates a cost
overrun of the estimates. A CPI value greater than 1.0 indicates a cost under-run of the
estimates. CPI equals the ratio of the EV to the AC. The CPI is the most commonly used cost-
efficiency indicator.

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▪ Forecasting

Forecasting includes making estimates or predictions of conditions in the project’s future

based on information and knowledge available at the time of the forecast. As the project
progresses, the forecasts are adjusted.

The earned value technique parameters of BAC (Budget At Completion), actual cost (AC)
to date, and the cumulative CPI (Cost Performance Index) efficiency indicator are used to
calculate ETC (Estimate to complete) and EAC (Estimate at completion) for a schedule
activity, work package, control account, or other W8S component.

▪ Trend Analysis
Trend analysis is performed on the project with data collected over time to determine if the
project performance is improving or deteriorating.

▪ Reserve Analysis
The purpose of reserve analysis is to monitor the status of the contingency and the management
reserves for the project to determine if these reserves are still needed or additional reserves need
to be requested. As the project progresses, these reserves may have been used to cover the risk
responses.

7.4.2.3. To-Complete Performance Index (TCPI)

The to-complete performance index (TCPI) is a measure of the cost performance that is
required to be achieved with the remaining resources in order to meet a specified
management goal, expressed as the ratio of the cost to finish the outstanding work to the
remaining budget. TCPI is the calculated cost performance index that is achieved on the
remaining work to meet a specified management goal, such as the BAC or the EAC.

7.4.2.4. Project Management Information System

Project management software like MS project can be used to monitor the three EVM
dimensions (PV, EV, and AC), to display graphical trends, and to forecast a range of possible
final project results.

7.4.2.5. Reserve Analysis

Reserve analysis is used to monitor the status of contingency and management reserves for
the project to determine if these reserves are still needed or if additional reserves need to be
requested. As work on the project progresses, these reserves may be used as planned to cover
the cost of risk mitigation events or other contingencies. Or, if the probable risk events do not

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occur, the unused contingency reserves may be removed from the project budget to free up
resources for other projects or operations.

7.4.3. Control Costs – Outputs

7.4.3.1. Work Performance Information
The calculated CV, SV, CPI, SPI, TCPI, and VAC values for WBS components, work packages
and control accounts, are documented and communicated to stakeholders.

7.4.3.2. Cost Forecasts

A calculated EAC value or a bottom-up EAC value is documented and
communicated to stakeholders.
7.4.3.3. Change Requests
Outcome of EVM may result in a change request to the cost baseline or other components of
the project management plan. Change requests may include preventive or corrective actions,
and are processed for review and disposition through the Perform Integrated Change Control
process.

7.4.3.4. Project Management Plan Updates

Changes to the cost baseline are incorporated in response to approved changes in scope,
activity resources, or cost estimates. Changes to control thresholds are updated in cost
management plan in response to feedback from relevant stakeholders.

7.4.3.5. Project Document Updates

Cost estimates and Basis of estimates , Lessons Learned Register, Risk Register and Assumption log
may be updated after reviewing the project performance.

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Chapter 8: Project Quality

Management

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

− The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing & Closing
Controlling

8 Project 8.1 Plan Quality 8.2 Manage Quality 8.3 Control

Management Quality
Quality
Management

The Project Quality Management Processes are:

▪ Plan Quality Management. The process of identifying quality requirements and standards for the
project and its deliverables and document how the project will meet the quality requirements and
standards.

▪ Manage Quality. The process of translating the quality management plan into executable quality
activities that incorporates the organization’s quality policies into the project.

▪ Control Quality. The process of monitoring and recording the result of quality management activities
to assess performance and ensure the deliverables are correct, complete and meet customer’s
expectation.

8.1 Plan Quality Management

It is one of the key processes that identifies quality standards that are relevant to the project and steps to satisfy
them. It is performed in parallel to other planning processes and is a key determinant in the formulation of
other subsidiary planning processes. There are several quality planning techniques that are used in different
application areas, some of which are discussed here.

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Plan Quality Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Quality Management Plan

▪ Project Charter
▪ Data Gathering ▪ Quality Metrics
▪ Project Management Plan ▪ Data Analysis ▪ Project Management Plan
▪ Project Documents ▪ Decision Making Updates
▪ Data Representation ▪ Project Documents Updates
▪ Enterprise Environmental ▪ Tests and Inspection
Factors Planning.
▪ Organizational Process Assets ▪ Meetings

8.1.1. Plan Quality Management – Inputs

8.1.1.1. Project Charter

The charter provides high level project description, product characteristics, approval requirements,
measurable project objectives and success criteria. All of these influences the quality management of
the project.

8.1.1.2. Project Management Plan

The components of the project management plan that can be considered as input to this process
includes but not limited to:
▪ Requirements Management Plan. Provides information to identify, analyze and manage the
project requirements which will be needed for quality management plan and quality metrics for
reference.
▪ Risk Management Plan. The information in Risk management plan and quality management plan
work together to successfully deliver the product and project success.
▪ Stakeholder Engagement Plan.
▪ Scope Baseline

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8.1.1.3. Project Documents

The project documents that can be considered as input to this process includes but not limited to:
▪ Stakeholder Register
It provides a list of stakeholders having a particular interest in, or having an impact on,
quality.
▪ Risk Register
It contains information on threats and opportunities that may impact quality
requirements.
▪ Requirements Documentation
Requirements documentation captures the requirements that the project must meet
pertaining to stakeholder expectations. The components of the requirements documentation
include, project (including product) and quality requirements. The requirements are used by
the project team to help plan how quality control will be implemented on the project.
▪ Requirements Traceability Matrix
▪ Assumption Log

8.1.1.4. Enterprise Environmental Factor

External standards, guidelines and regulations need to be considered as they may have an
effect on the project.

8.1.1.5. Organizational Process Assets

Historical project data/lessons learnt and policies and procedures derived from them may affect
Quality planning. The Quality policy directs the development of the quality plan for the project.
The policy, which is endorsed by the senior management is adopted “as is” or, in case of an
absence of the same, a quality policy can be developed for the project. Either way, the project
management team communicates the policy through appropriate information distribution
channels.

8.1.2. Plan Quality Management – Tools and Techniques

8.1.2.1. Expert Judgement

Expertise should be considered from individuals or groups having specialized knowledge and trainings
on the following topics:
▪ Quality Assurance
▪ Quality Control
▪ Quality Measurements

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▪ Quality Improvements
▪ Quality Systems

8.1.2.2. Data Gathering

The Data gathering techniques that can be used includes but not limited to:

▪ Benchmarking.
Benchmarks involving actual or planned project practices within or outside the organization in the
same application area or outside are used for quality planning and performance measurement
▪ Brainstorming
▪ Interviews

8.1.2.3. Data Analysis

The Data Analysis techniques used in this process includes but not limited to:

▪ Cost-Benefit Analysis (Marginal benefit Analysis)

The analysis that defines the trade-offs between cost of quality and its returns are used for
planning the Quality of the project.
▪ Cost of Quality (COQ)
Quality costs are the total costs involved in preventing nonconformance to requirements,
reviews arid rework. Failure costs, which may be internal or external, are also called cost of
poor quality.

8.1.2.4. Data Representation

The data representation techniques that can be used in this process includes but not limited to :

▪ Flowcharts.
▪ Logical Data Model
▪ Matrix Diagram
▪ Mind Mapping

8.1.2.5. Test and Inspection Planning

During the planning phase the project manager and project team determine how to test the product,
deliverable, or service to meet stakeholder’s need and expectation, as well as how to meet the goal of
performance and reliability. Some of the example of industry standard tests are alpha test, beta test,
field test etc.

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8.1.2.6. Meetings
Project teams that may include project manager, project sponsor, respective project team
members, stakeholders or anyone with responsibility for Project Quality Management
activities, may hold planning meetings to develop the quality management plan.

8.1.3. Plan Quality Management – Outputs

8.1.3.1. Quality Management Plan
The quality management plan describes how the project management team will implement
the performing organization’s quality policy. The quality management plan is an important
subsidiary plan of the project management plan and addresses quality control, assurance and
continuous quality improvement.

The quality management plan is brought in early in the project life cycle where initial
decisions, designs and tests are verified by an independent peer group that may reduce
project costs and schedule overruns. This plan is built based on Individual project
requirements.

8.1.3.2. Quality Metrics

A metric describes what project or product is and how the quality control process measures
it. The project management team must indicate the activities where measurements are of
importance. Quality metrics are used in the QA and QC processes. Some examples of quality
metrics include defect density, failure rate, availability, reliability, and test coverage.

8.1.3.3. Project Management Plan Updates.

The components of the project management plan which may be updated as a result of this process
includes but not limited to:

▪ Risk Management Plan

▪ Scope Baseline

8.1.3.4. Project document Updates

Stakeholder register, Responsibility assignment matrix, WBS and WBS Dictionary are some of
the Project documents that may be updated.

8.2. Manage Quality

Manage Quality is the process of translating quality management plan into executable quality
activities that incorporates organization’s quality policies into the project. Manage Quality is the
application of planned, systematic quality activities and processes to ensure that the project has
employed all processes needed to meet the project and product requirements.

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Manage Quality

Inputs Tools and Techniques Outputs

▪ Data Gathering ▪ Quality Reports

▪ Project Management Plan
▪ Data Analysis ▪ Test and Evaluation
▪ Project Documents ▪ Decision Making Documents
▪ Organizational Process Assets ▪ Data Representation ▪ Change Requests
▪ Audits ▪ Project Management Plan
▪ Design for X Updates
▪ Problem Solving ▪ Project Documents Updates
▪ Quality Improvement
Methods

8.2.1. Manage Quality – Inputs

8.2.1.1. Project Management Plan

The components of the project management plan that may be used as input:

▪ Quality Management Plan

The quality management plan describes how the project management team will implement
the performing organization’s quality policy. The quality management plan is an important
input as it defines how quality will be managed in the project.

8.2.1.2. Project Documents

The project documents that may be considered as input to this process includes but not limited to:

▪ Quality Metrics
A metric describes what project or product is and how the quality control process measures
it. The quality metrics provide the attributes that should be measured and the allowable
variations.
▪ Quality Control Measurements.

Quality control measurements are the outputs of quality control activities that are fed back
to the QA process for re-evaluating and analyzing the quality standards and processes of the
organization.
▪ Risk Reports
▪ Lessons Learned Register

8.2.1.3. Organizational Process Assets

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The Organizational process assets that can influence this processGuide
are:
▪ Organization’s quality management system
▪ Quality Templates
▪ Results from previous audits
▪ Lessons learned repository with information from similar projects.

8.2.2. Manage Quality – Tools and Techniques

8.2.2.1. Data Gathering

Data gathering techniques that can be used for this process includes but not limited to is checklist. A
checklist is a structured tool, used to verify that a set of required steps has been performed or
checked, if a requirement has been satisfied.

8.2.2.2. Data Analysis

The data analysis techniques used in this process includes but not limited to:

▪ Alternative Analysis . This technique is used to evaluate which quality options are approaches are
appropriate to use.
▪ Document Analysis. This is primarily used to evaluate and identify the processes which are faulty
using various reports such as quality reports, test reports, variance analysis reports, performance
reports.

▪ Process Analysis. The process analysis identifies opportunity for process improvement.
The process Improvement plan enables process analysis for continuous Improvement in
technical and organizational areas. Process analysis Includes root cause analysis to
identify the cause, effect and provide solution to a problem.
▪ Root Cause Analysis. Root cause analysis is aa analytical technique to determine the underlying
reasons or causes that are responsible for variance, causes or risks.

8.2.2.3. Decision Making

The decision-making technique that may be used in this process is multi-criteria decision analysis.
8.2.2.4. Data Representation

Data representation technique that may be used in this process includes but not limited to:

▪ Affinity Diagram. Affinity diagrams can organize potential causes of defects into groups showing
areas that should be focused on the most.

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▪ Cause and Effect Diagram. which are also known as fishboneGuide
diagrams or as Ishikawa diagrams.
▪ Flowcharts. which are also referred to as process maps.
▪ Histograms. are a special form of bar chart and are used to describe the central tendency,
dispersion, and shape of a statistical distribution.
▪ Matrix Diagrams.
▪ Scatter Diagram plot ordered pairs (X, Y) and are sometimes called correlation charts
because they seek to explain a change in the dependent variable, Y, in relationship to a
change observed in the corresponding independent variable, X.

Sample Cause & Effect Diagram

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8.2.2.5. Quality Audits

A Quality audit is a structured independent review to determine whether project activities
comply with organizational and project policies, processes and procedures. The quality audit
identifies inefficient and ineffective policies, processes and procedures currently being used
in the project. All efforts to correct these deficiencies should result ¡n a reduced cost of quality
and an increase in the percentage of acceptance of the product or Service by the customer or
sponsor within the performing organization. Quality audits may be scheduled or at random,
and may be carried out by properly trained in-house auditors or by third parties, external to
the performing organization.
Quality audits confirm the implementation of approved change requests, corrective actions,
defect repairs, and preventive actions.

8.2.2.6. Quality Improvement methods

Quality improvements can occur based on findings and recommendations from quality
control processes, findings from quality audits and other reports. Plan-Do-Check-Act and
Six Sigma are two commonly used quality improvement tools.

8.2.3. Manage Quality – Outputs

8.2.3.1. Quality Reports.

The quality reports can be graphical, numerical or quantitative. The information presented in the
report may include all quality issues escalated by team; recommendations, and product
improvement; corrective action recommendations and summary of findings of control quality
process.

8.2.3.2. Test and Evaluation Documents

These documents can be created as per the industry needs and the organization template and will be
an input to the control quality process.

8.2.3.3. Change requests

Changes that improve the quality of the project, both technical and organizational are the key
output of Perform Quality Assurance Process.

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8.2.3.4. Project Management Plan Updates
Any update to the Quality Management Plan requires an update to the project management
plan. Existing processes may be updated, process Improvements may be implemented.
Requested changes (additions, modifications, deletions) to the project management plan and
its subsidiary plans are processed through the Integrated Change Control process.

8.2.3.5. Project document updates

Project documents that may be updated are Quality audit reports, Lessons Learned Register,
Issue Log, Risk Register.

8.3. Control Quality

Quality control (QC) involves monitoring specific project results to determine whether they comply
with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. This
is performed though out the complete project lifecycle. QC is often performed by a quality control
department and can include taking action to eliminate causes of unsatisfactory project performance.

Control Quality

Inputs Tools and Techniques Outputs

▪ Data Gathering ▪ Quality control

▪ Project Management Plan
▪ Data Analysis measurements
▪ Project Documents ▪ Inspection ▪ Verified deliverables
▪ Approved Change Requests ▪ Testing/Product ▪ Work Performance
evaluation Information
▪ Deliverables ▪ Data Representation ▪ Change Requests
▪ Work Performance Data ▪ Meetings ▪ Project Management Plan
Updates
▪ Enterprise Environmental ▪ Project Documents Updates
Factors

▪ Organizational Process Assets

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8.3.1. Quality Control – Inputs

8.3.1.1 Project Management Plan.

The component of the project management plan that can be included as input are:
▪ Quality Management Plan. This document defines how Quality Control will be performed within
the project.

8.3.1.2 Project Documents

The project documents used as input to this process includes but not limited to:
▪ Lessons Learned Register
▪ Quality Metrics
▪ Test & Evaluation Documents

8.3.1.3. Work Performance Data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes costs that have been authorized and
incurred.

8.3.1.4. Approved Change Requests

Approved change request can include modifications such as revised work methods, defect
repair and revised schedule. The timely implementation of approved changes needs to be
verified.

8.3.1.5. Deliverables
A deliverable is any unique and verifiable product, result, or capability that results in a
validated deliverable required by the project.

8.3.1.6. Enterprise Environmental Factors

▪ Project Management Information System

▪ Governmental Agency Regulations
▪ Rules, Standards and guidelines specific to the application area.

8.3.1.7. Organizational Process Assets

The organizational process assets such as organization’s quality standards and policies,

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standard work guidelines, issue and defect reporting procedures Guide
and communication policies
can be used as in input in this process.

8.3.2. Control Quality – Tools and Techniques

8.3.2.1. Data Gathering

Data gathering techniques that can be used for this process:

▪ Checklists
▪ Check sheets which are also known as tally sheets
▪ Statistical Sampling

Statistical sampling involves selecting few samples for inspection at random. Sample
frequency and sizes should be determined during the Plan Quality Management process
so the cost of quality will include the number of tests, expected scrap, etc.
▪ Questionnaire & Surveys

8.3.2.2. Data Analysis

The Data Analysis techniques used in this process are:

▪ Performance Review
▪ Root Cause Analysis

8.3.2.3. Inspection
An inspection is the examination of a work product to determine if it conforms to documented
standards. The results of an inspection can include measurements and may be conducted at
any level.

8.3.2.4. Testing / Product Evaluation

Testing is an organized and constructed investigation conducted to provide information about the
quality of the product or service. The purpose of testing is to ensure that the deliverables produced
meet the project requirements. Testing is carried out throughout the life cycle of the project. Early
testing can find out defects which can be fixed to reduce the cost of defects or non-conformance.

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8.3.2.5. Data Representation

The Data representation technique used in this process are:

→ Cause-and-effect diagrams which are also known as fishbone diagrams or as Ishikawa

diagrams.
→ Histograms are a special form of bar chart and are used to describe the central tendency,
dispersion, and shape of a statistical distribution.
→ Control charts are used to determine whether or not a process is stable or has predictable
performance.
→ Scatter diagrams plot ordered pairs (X, Y) and are sometimes called correlation charts
because they seek to explain a change in the dependent variable, Y, in relationship to a
change observed in the corresponding independent variable, X.

8.3.2.6. Meetings

Following meetings may be held :

▪ Approve change request review
All approved change requests should be reviewed to verify that they were implemented
as approved.
▪ Retrospective / Lessons Learned

8.3.3. Control Quality – Outputs

8.3.3.1. Quality Control Measurements
Quality control measurements are the documented results of control quality activities which
are captured in the format that was specified through the Plan Quality Management process.

8.3.3.2. Verified Deliverables

A goal of the Control Quality process is to determine the correctness of deliverables. The results
of performing the Control Quality process are verified deliverables. Verified deliverables are
an input to Validate Scope (5.5.1.4) for formalized acceptance.

8.3.3.3. Work Performance Information

The work performance data is analyzed in context and integrated based on the relationship
across areas. Work performance data gets transformed into Work Performance Information
and provides a basis for decisions making associated with project.

8.3.3.4. Change Requests

As a result of the QC process, all corrective and preventive actions that are required in the

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project are initiated in accordance with Integrated Change Control Process.

8.3.3.5. Project Management Plan Updates

Any changes to the Quality management Plan that is a result of changes in the QC process
warrants an update in the project management plan.

8.3.3.6. Project Document Updates

Project documents like Quality standards, Agreements, Quality audit reports and change logs
supported with corrective action plans, Training plans, Process get updated as an output of
this process.

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Chapter 9: Project Resource

Management

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9. Project Resource Management
Project Resource Management includes the processes to identify, acquire and manage the resources
needed for the successful completion of the project. These processes help ensure that the right resources
will be available to project manager and project team at right time and place.

− The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

9 Project 9.1 Plan Resource 9.3 Acquire 9.6 Control

Manag4ement Resourc Resources
Resource
es
Management 9.2 Estimate Activity Resource
9.4 Develop
Team
9.5 Manage
Team

▪ Plan Resource Management. The process of defining how to estimate, acquire, manage and utilize
physical and team resource.

▪ Estimate Activity Resource. The process of estimating team resources and the type and quantities of
material, equipment and supplies necessary to perform project work.

▪ Acquire Resources. The process of obtaining team members, materials, equipment, supplies and other
necessary resources required to complete the project work.

▪ Develop Team. The process of improving competencies, team member interaction, and over all team
environment to improve the project performance.

▪ Manage Team. The process of tracking team member performance, providing feedback, resolving
issues and managing team changes to optimize project performance.

▪ Control Resources. The process of ensuring that the physical resources assigned and allocated to the
project are available as planed; as well as monitoring the plan vs actual use of the resources, and
performing corrective action as necessary.

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9.1. Plan Resource Management
Plan Resource management is the process of defining how to estimate, acquire, manage and use team
and physical resources.

Human Resource Planning process helps organization in developing staffing management plan,
determines project roles, responsibilities, and reporting relationships. Staffing management plan
specifies how and when team members will be acquired, determining If a training need exists and if
It does, what training is required to fill the gap, recognition and rewards plan and safety issue. Project
roles are designated for persons or groups from inside or outside the performing organization.

Plan Resource Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Resource Management Plan

▪ Project Charter
▪ Data Representation ▪ Team Charter
▪ Project Management Plan ▪ Organizational Theory ▪ Project Documents Updates
▪ Project Documents ▪ Meetings

▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

9.1.1. Plan Resource Management – Inputs

9.1.1.1. Project Charter

The project charter provides high level project description and requirements. It also has information
such as key stakeholder, summary milestone, pre-approved resource, that may influence the resource
management plan

9.1.1.2. Project Management Plan

The components of the project management plan that could be part of the input to this process are:

▪ Quality Management Plan. The quality management plan provides the information about the
desired level of quality which will be factor for defining the level of resources that will be
required.

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▪ Scope Baseline. The scope baseline defines the deliverables,Guide
which help to determine the type
and quantity of resource needed for the project.

9.1.1.3. Project Documents

The project documents that are needed as an input are:

▪ Project Schedule.
▪ Requirements Documentations
▪ Risk Register
▪ Stakeholder Register.

9.1.1.4. Enterprise Environmental Factors

The definition of project roles and responsibilities is developed with in accordance with
enterprise factors that surround and influence the project success. The definition of project
roles and responsibilities is developed with an understanding of the ways that existing
organizations will be involved. Some of the relevant enterprise environmental factors are
Organizational, Interpersonal, Logistical and Political.

9.1.1.5. Organizational Process Assets

Lessons learned from the past projects can be used as in input to help plan the current project
that can reduce the amount of planning time needed at the beginning of a project and reduce
the likelihood of missing important responsibilities. Organizational Process Assets also
includes templates and checklists for creating the HR Management plan.

9.1.2. Plan Resource Management – Tools and Techniques

9.1.2.1. Expert Judgment

Expertise should be considered from individuals and groups having specialized training and
knowledge on the following key areas :
▪ Negotiating for best Resource
▪ Talent Management & Personal Development
▪ Determining reporting requirements
▪ Estimating lead time

9.1.2.2. Data Representation

The data representation technique that can be used in this process are:
▪ Historical Charts
▪ Organization breakdown structure

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▪ Resource breakdown structure
▪ Assignment Matrix
▪ RACI chart

9.1.2.3. Organizational Theory

It provides information regarding the behavior of people, teams, and organizational units. By
applying proven principles, the amount of time needed to create the Human Resource
Management Plan can be shortened. It also improves the likelihood that the planning wilt be
effective.

9.1.2.4. Meetings
While developing the HR management plan, project manager, project team and stakeholders may
need to conduct meetings to discuss HR management plan.

9.1.3. Plan Resource Management – Outputs

9.1.3.1. Resource Management Plan
Key output of this process is the Resource Management Plan which provides guidance on how
project human resources will be defined, staffed and released. The HR Management plan
includes following:
→ Roles and Responsibilities: The items Listed below must be addressed while listing the
roles and responsibilities needed to complete the project:
1) Role: It is a label that describes the portion of a project for which a person is
accountable. Role clarity concerning authority, responsibilities, and boundaries is
essential for project success.
2) Authority: Authority is the right, given to project manager or management, to
apply project resources, makes decisions, and sign approvals. Some of decisions
that need clear authority include the selection of a method for completing an
activity, quality acceptance, and response to project variances. Team members
operate best when their individual levels of authority match their individual
responsibilities.
3) Responsibility: The work that a project team member is expected to perform In
order to complete the project’s activities.
4) Competency: Competency is the skill and capacity required to complete project
activities. The performance of team members can be affected negatively if they
lack required competencies. When such mismatches are identified, proactive
responses such as training, hiring, schedule changes, or scope changes are
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initiated.
→ Project Organization Chart: It displays the project team members and their reporting
relationships in a graphical manner. It can be formal or informal, highly detailed or
broadly framed, based on the needs of the project.
→ Staffing Management Plan: It describes how and when resource requirements will be
met as per the needs of the project. The plan is updated continuously during the
project to direct ongoing acquisition of the team members and actions towards their
development. Information in the staffing management plan varies by application area
and project size but items to consider includes, Staff Acquisition, Resource Calendars,
Staff Release Plan, Training Needs, Reward and Recognition, Compliance and Safety.

9.1.3.2. Team Charter

The team charter is a document that establishes the team values, agreements and operating
guidelines for the team.

9.1.3.3. Project Documents Updates

The project documents that can be updated as a result of this process are:
▪ Assumption Logs
▪ Risk Register

9.2. Estimate Activity Resource

Estimate Activity Resource is the process of estimating team resources and type and quantity of materials,
equipment and supplies necessary to perform project work.

Estimate Activity Resource

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Resource Requirements

▪ Project Management Plan
▪ Bottom up Estimating ▪ Basis of Estimates
▪ Project Documents ▪ Analogous Estimating ▪ Resource Breakdown
▪ Enterprise Environmental ▪ Parametric estimating Structure
Factors ▪ Data Analysis ▪ Project Documents Updates
▪ Project Management
▪ Organizational Process Assets Information System
▪ Meetings

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9.2.2. Estimate Activity Resource – Inputs

9.2.2.1. Project Management Plan

The components of the project management plan which can be considered as input to this process
are:
▪ Resource Management Plan
▪ Scope Baseline

9.2.2.2. Enterprise Environmental Factors

9.2.2.3. Organizational Process Assets
9.2.2.4. Project Documents

The project documents which can be considered as input to this process are:
▪ Activity Attributes
▪ Activity List
▪ Assumption Log
▪ Cost Estimates
▪ Resource Calendars
▪ Risk Register

9.2.2.5. Enterprise Environmental Factors

The Enterprise environmental factors that may influence this process are:

▪ Resource Location
▪ Resource Availability
▪ Team Resource Skills
▪ Organizational culture

9.2.2.6. Organizational Process Assets

The Organizational Process Assets that may be included as an input to this process are:
▪ Policies and Procedures regarding staffing
▪ Policies and procedures regarding supplies and equipment
▪ Historical information

9.2.3. Estimate Activity Resource – Tools & Techniques

9.2.3.1. Expert Judgement

Expertise should be considered from individuals or group having specialized knowledge and training
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in team and physical resource planning and estimating.

9.2.3.2. Bottom Up Estimating

Team and physical resources are estimated at thee activity level and then aggregated to develop
estimates for work packages, control accounts and summary at project level.

9.2.3.3. Analogous Estimating

This technique is used with estimation information from previous similar project completed in the
past.

9.2.3.4. Parametric Estimating

Using historical data and other variables, the estimates are developed using parametric estimation
technique.

9.2.3.5. Data Analysis

The data analysis techniques that are used in this process is primarily alternative analysis. It assists in
providing best solution to perform project activities.

9.2.3.6. Project Management Information System

The PMI®S may include the resource management software which can help manage the resources of
the project.

9.2.3.7. Meetings

Project manager may have held meetings with functional managers to estimate the resources needed
, their skill level, LoE (Level of effort) , and other details.

9.2.4. Estimate Activity Resource – Outputs

9.2.4.1. Resource Requirements
9.2.4.2. Basis of Estimates
9.2.4.3. Resource Breakdown structure
9.2.4.4. Project Documents Updates

9.3. Acquire Resources

Acquire Resource is the process of acquiring the human resources needed to complete the project.
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The project management team may or may not have control over teamGuide
members selected for the
project.

Acquire Resource

Inputs Tools and Techniques Outputs

▪ Decision Making ▪ Physical Resource assignment

▪ Project Management Plan
▪ Interpersonal and Team ▪ Project Team Assignment
▪ Project Documents Skills ▪ Resource Calendars
▪ Enterprise Environmental ▪ Pre-Assignment ▪ Change Requests
Factors ▪ Virtual Team ▪ Project Management Plan
Updates
▪ Organizational Process Assets ▪ Project Documents updates
▪ Enterprise Environmental
factors updates
▪ Organizational Process assets
updates

9.2.5. Acquire Resource – Inputs

9.2.5.1. Project Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities and Project
organization charts that will provide key inputs on how the project team members will be identified,
staffed, managed and released.

9.2.5.2. Enterprise Environmental Factors

Factors that influence acquisition of the project team includes availability of the resources in the
organization, competency levels, experience and their cost, HR administration policies and their cost
rates.

9.2.5.3. Project Documents

9.2.5.4. Organizational Process Assets
The organizational process assets that influence the Acquire Project Team process include,
organizational standard policies, processes, and procedures.

9.2.6. Acquire Resource – Tools and Techniques

9.2.6.1. Pre-assignment
Sometimes, project team members are pre-assigned that means they are selected in advance.
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This situation may occur if the project is the result of specific people
of a competitive proposal, if the project is dependent on the expertise of particular persons,
or if some staff assignments are defined within the project charter.

9.2.6.2. Negotiation
Negotiations may happen on many projects. To ensure that the project receives appropriately
competent staff in the required time frame, and that project team members will be able to
work on the project until their responsibilities are completed, the project management team
may need to negotiate with Functional managers. The project management team may also
need to negotiate with other project teams within the performing organization to
appropriately assign scarce or specialized resources.

9.2.6.3. Acquisition
Sometimes, required services can be acquired from outside sources if the performing
organization lacks the in-house staff needed to complete the project. This can involve hiring
individual consultants or subcontracting work to another organization.

9.2.6.4. Virtual Teams

While acquiring project team members, the use of virtual teams, which can be defined as
groups of people with a shared goal, creates new possibilities. Virtual teams can also be
defined as, who fulfill their roles with little or no time spent meeting face to face. The
availability of electronic communication, such as email and video conferencing, has made
such teams feasible. The virtual team format makes it possible to form teams of people from
the same company who live in widespread geographic areas.

9.2.6.5. Multi-criteria decision analysis

Multi-criteria decision analysis is a tool where selection criteria are developed and used to rate
or score potential team members. The criteria are given weights according to the importance
of the needs within the team. Some of the key selection criteria’s are availability, cost,
experience and ability of the resources.

9.2.7. Acquire Resource – Outputs

9.2.7.1. Project Staff Assignments
As an output of this process, appropriate people are assigned to the project activities. The
documentation of these assignments can include a project team directory, memos to team
members, and names inserted into other parts of the project management plan, such as
project organization charts and schedules.

9.2.7.2. Resource Calendars

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It documents the time periods each project team member will work on the project. Creating a
reliable final schedule depends on having a good understanding of each person’s schedule
conflicts, including vacation time and commitments to other projects.

9.2.7.3. Project Management Plan Updates

Key elements of Project Management plan that will be updated at end of this process are HR &
Staffing Management plans because people seldom fit the exact staffing requirements that
are planned as sometimes specific people are required to fill the project roles and
responsibilities. Other reasons for making changes to HR Management plan include changes
to team structure, roles or responsibilities.

9.4. Develop Team

It improves the competencies and interaction of team members to enhance project performance.
Objectives of developing project team are:

→ Increase team member’s ability to complete project activities by improving their

skills.
→ Raise productivity through greater teamwork by improving feelings of trust and cohesiveness
among team members. Examples of effective teamwork include assisting one another when
workloads are unbalanced, communicating in ways that fit individual preferences, and sharing
Information and resources. Team development efforts have greater benefit when conducted
early, but should take placethroughout the project lite cycle.

Develop Team

Inputs Tools and Techniques Outputs

▪ Co-Location ▪ Team Performance

▪ Project Management Plan
▪ Virtual Team assessments
▪ Project Documents ▪ Communication ▪ Change Requests
▪ Enterprise Environmental technology ▪ Project Management Plan
Factors ▪ Interpersonal & Team Updates
Skills ▪ Project Documents updates
▪ Organizational Process Assets ▪ Recognition and ▪ Enterprise Environmental
Rewards factors updates
▪ Training ▪ Organizational Process assets
▪ Individual and team updates
assessments
▪ Meetings

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9.4.1. Develop Team – Inputs

9.4.1.1. Human Resource Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities and
Project organization charts that will provide key inputs on how the project team members will
be identified, staffed, managed and released.

9.4.1.2. Project Staff Assignments

As an output of this process, appropriate people are assigned to the project activities. The
documentation of these assignments can include a project team directory, memos to team
members, and names inserted into other parts of the project management plan, such as
project organization charts and schedules.

9.4.1.3. Resource Calendars

It documents the time periods each project team member will work on the project. Creating a
reliable final schedule depends on having a good understanding of each person’s schedule
conflicts, including vacation time and commitments to other projects.

9.4.2. Develop Team – Tools and Techniques

9.4.2.1. Interpersonal Skill
Soft Skills or Interpersonal skills are particularly important for project managers to develop
the team. Effective project managers acquire a balance of technical, interpersonal, and
conceptual skills that help them analyze situations and interact appropriately. Some of the
important interpersonal skills are

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

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9.4.2.2. Training
It includes all formal or Informal activities designed to enhance the competencies of the project
team members. Examples of training methods Include classroom, online, computer based, on
the job training from another project team member, mentoring and coaching.

9.4.2.3. Team-Building Activities

It may vary from an agenda item, having very short duration, a status review meeting to an
offsite, professionally facilitated experience designed to improve Interpersonal relationships.
Some group activities, such as developing the WBS, may not be explicitly designed as team
building activities but can increase team cohesiveness when that planning activity is
structured and facilitated well. It also is Important to encourage informal communication and
activities because of their role in building trust and establishing good working relationships.
Teambuilding strategies are particularly valuable when team members operate virtually from
remote locations, without the benefit of face to face contact.

9.4.2.4. Ground Rules

Ground rules clearly specify the expected acceptable behavior by project team members.
Early commitment to clear guidelines decreases misunderstandings and increases
productivity. The process of discussing ground rules allows team members to discover values
that are important to one another. All project team members share responsibility for
enforcing the rules once they are established.
9.4.2.5. Co-location
It involves enhancing people’s ability to perform as a team by placing many or all of the most
active project team members in the same physical location. During the project, team
members can be collocated temporarily at strategically important times, or for the entire
project.

9.4.2.6. Recognition and Rewards

Recognizing and rewarding desirable behavior is an important part of the team development
process. Reward and recognition plan takes shape while creating the HR Management plan.
Award decisions are made, formally or informally, during the process of managing the project
team through performance appraisals. Only desirable behavior should be rewarded. For
example, the willingness to work overtime to meet an aggressive schedule objective should be
rewarded or recognized but needing to work overtime as the result of poor planning should not
be rewarded. Win-lose (zero sum) rewards that only a limited number of project team
members can achieve, such as team member of the month, can hurt team cohesiveness.
Rewarding win-win behavior that everyone can achieve, such as turning progress reports on
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time, tends to increase support among team members. Recognition
consider cultural differences as well.

9.4.2.7. 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.

9.4.3. Develop Project Team – Outputs

9.4.3.1. Team Performance Assessments
Formal or informal or assessments of the project team’s effectiveness is done while
implementing the team development efforts such as training, team building, and colocation.
Team’s performance can be increased by making effective team development strategies
which also increases the likelihood of meeting project objectives. The evaluation of a team’s
effectiveness may include improvements in skills that allow a person to perform assigned
activities more effectively and improvement in competencies and sentiments that help the
team perform better as a group reduced staff turnover rate.

9.4.3.2. Enterprise Environmental Factors Updates

The enterprise environmental factors that may be updated as a result of the Develop Team
process include personnel administration, employee training records.

9.5. Manage Team

Project performance can be enhanced by tracking team member’s performance, providing feedback,
resolving issues and coordinating changes. Team behavior, manage conflicts, resolve issues and praise team
member’s performance are also observed by the project management team and as a result the staffing
management plan is updated, change requests are submitted, issues are resolved, input is given to
organizational performance appraisals, and lessons learned are added to the organization’s database.

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Manage Team

Inputs Tools and Techniques Outputs

▪ Interpersonal & Team ▪ Change Requests

▪ Project Management Plan
Skills ▪ Project Management Plan
▪ Project Documents ▪ Project Management Updates
▪ Work Performance Report Information System ▪ Project Documents updates
▪ Enterprise Environmental
▪ Team Performance factors updates
Assessments ▪
▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

9.5.1 Manage Project Team – Inputs

9.5.1.1 Project Management Plan
HR Management plan includes Staffing management plan, Roles and responsibilities and
Project organization charts that will provide key inputs on how the project team members will
be identified, staffed, managed and released.

9.5.1.2 Project Staff Assignments

As an output of this process, appropriate people are assigned to the project activities. The
documentation of these assignments can include a project team directory, memos to team
members, and names inserted into other parts of the project management plan, such as
project organization charts and schedules.

9.5.1.3 Team Performance Assessments

Formal or informal or assessments of the project team’s effectiveness is done while
implementing the team development efforts such as training, team building, and colocation.
Team’s performance can be increased by making effective team development strategies
which also increases the likelihood of meeting project objectives. The evaluation of a team’s
effectiveness may include improvements in skills that allow a person to perform assigned
activities more effectively and improvement in competencies and sentiments that help the
team perform better as a group reduced staff turnover rate.
9.5.1.4 Issue Log
An issue log can be used to document and monitor who is responsible for resolving specific
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issues by a target date.
9.5.1.5 Work Performance Reports
It provides documentation about project performance against the project management plan.
Results from performance areas like control schedule, control cost, control quality, scope
verification, and procurement audits and their related forecasts assists the project team
management In determining future human resource requirements, recognition and rewards
and updates to HR Management plan.
9.5.1.6 Organizational Process Assets
The organizational process assets that influence the Manage Project Team process include,
organizational standard policies, processes, and procedures.

9.5.2 Manage Team – Tools and Techniques

9.5.2.1 Observation and Conversation
Observation and conversation are used to stay in touch with the work and attitudes of project
team members. The project management team monitors indicators such as progress toward
project deliverables, accomplishments that are a source of pride for team members, and
interpersonal issues.

9.5.2.2 Project Performance Appraisals

The length and complexity of the project, organizational policy, labor contract requirements,
and the amount and quality of regular communication determines the need for formal or
informal project performance appraisals. Project team members receive feedback from the
people who supervise their project work.

9.5.2.3 Conflict Management

Greater productivity and positive working relationships are the results of successful conflict
management whereas scarce resources, scheduling priorities and personal work styles are
major sources of conflicts. Team ground rules, group norms, solid project management
practices, like communication planning and role definition, reduce the amount of conflict. If
differences of opinion are managed properly, they can be healthy, and can lead to increased
creativity and better decision making. When the differences become a negative factor, project
team members are initially responsible for resolving their own conflicts. The project manager
should help facilitate a satisfactory resolution in case conflict escalates. Conflict should be
addressed arty and usually in private, using a direct, collaborative approach. If disruptive
conflict continues, increasingly formal procedures will need to be used, including the possible
use of disciplinary actions.
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9.5.2.4 Interpersonal Skills

People Management, relationship creation and retention are of today’s order of the day with
internal customer, external customers, external agencies, governmental agencies, society,
and stakeholders. interpersonal skills are of paramount important in order to be successful In
today’s competitive, mechanical, fast-phased, demanding environment, coupled with a
diverse workforce, call for significant amounts of people management skills, e.g.:

→ Listening and conversational skills

→ Leading team members
→ Relationship building and maintenance
→ Influencing individuals and organizations without formal authority
→ Understanding and integrating the efforts of a diverse workforce

9.5.3 Manage Team – Outputs

9.5.3.1 Change Requests
Staffing changes may affect the rest of the project plan irrespective of whether by choice or
by uncontrollable events. A change request can be processed through the Integrated Change
Control process when staffing issues disrupts the project plan, such as causing the schedule
to be extended or the budget to be exceeded.

9.5.3.2 Project Management Plan Updates

Approved charge requests, corrective actions, new project team member roles, additional
training, and reward decisions can result in updates to the HR Management plan, a part of the
project management plan.

9.5.3.3 Project Documents Update

Documents such as Issue log, Roles description and Project staff assignments may require an
update.

9.5.3.4 Enterprise Environmental Factors Updates

Enterprise environmental factors that may require updates may include inputs to organizational
performance appraisals and Personnel skill updates.

9.5.3.5 Organizational Process Assets Updates

Project management team should be prepared to provide inputs for regular organizational

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performance appraisals of any project team member with whom Guide
they interact in a significant
way. In order to create historical database of the organization, all knowledge learned during
the project should be documented. Lessons learned in the area of HR Management can
include a Project organization chart, position descriptions, and staffing management plans
that can be saved as templates, Ground rules, conflict management techniques, and
recognition events that was particularly useful, a procedure for virtual teams, co-Location,
negotiation, training, and team building that proved to be successful.

9.6. Control Resource

Control resource is the process of ensuring that the physical resources assigned and allocated to the project
are available as planned, as well as monitoring the plan vs actual utilization of resources and taking corrective
actions as necessary.

Control Resource

Inputs Tools and Techniques Outputs

▪ Data Analysis ▪ Work performance

▪ Project Management Plan
▪ Problem Solving information
▪ Project Documents ▪ Interpersonal and team ▪ Change Requests
▪ Work Performance data skills ▪ Project Management Plan
▪ Project Management Updates
▪ Agreements Information System ▪ Project Documents updates
▪ Organizational Process Assets

9.6.1 Control Resource – Inputs

9.6.1.1 Project Management Plan

9.6.1.2 Project Document
9.6.1.3 Work Performance Data
9.6.1.4 Agreement
9.6.1.5 Organizational Process Assets Updates

9.6.2 Control Resource – Tools & Techniques

9.6.2.1 Data Analysis
9.6.2.2 Interpersonal & Team Skills
9.6.2.3 Project Management Information System

9.6.3 Control Resource - Outputs

9.6.3.1 Work Performance Information
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9.6.3.2 Change Requests
9.6.3.3 Project Management Plan updates
9.6.3.4 Project Documents Updates

Chapter 10: Project

Communications Management

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

− The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge
Area Monitoring and
Initiating Planning Executing Closing
Controlling

10 Project 10.1 Plan 10.2 Manage 10.3 Monitor

Communications Communications Communications
Communications
Management
Management

▪ Plan Communication Management. The process of developing an appropriate approach and plan for
project communication activities based on the information needs of each stakeholder or group,
available organizational assets and the needs of the project.

▪ Manage Communcation. The process of ensuring timely and appropriate collection , creation,
distribution, storage, retreaval, management, monitoring and ultimate disposition of project
information.

▪ Monitor Communication. The process of ensuring the information needs of the project and its
stakeholders are met.
10.1. Plan communication Management

Plan Communications Management process determines the information and communication needs of the
stakeholders, for example who needs what information, when they will need it, how it will be given to them,
and by whom. A project manager spends most of his time communicating with the various stakeholders and
providing necessary information to the project team to successfully complete their work.

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Plan Communication
Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Communications

▪ Project Charter
▪ Communication Management Plan
▪ Project Management Plan Requirement Analysis ▪ Project Management Plan
▪ Project Documents ▪ Communication Updates
Technology ▪ Project Documents Updates
▪ Enterprise Environmental ▪ Communication Model
Factors ▪ Interpersonal and team
▪ Organizational Process Assets skills
▪ Data Representation
▪ Meetings
▪

10.1.1. Plan Communications Management – Inputs

10.1.1.1. Project Management Plan
The project management plan provides information about the project Including schedule and
constraints that may be relevant to Communication Management Plan.

10.1.1.2. Stakeholders Register

The stakeholder register provides the information needed to plan the communication with
project stakeholders.

10.1.1.3. Enterprise environmental factors

Environmental factors such as a Project Management Information System need to be included
to do effective communication planning. Organizational structure and existing human
resources should be taken into account in this process.

10.1.1.4. Organizational process assets

Lessons learned and historical information are two very important organizational assets that
help in creating the Communication Management Plan. These two can provide both decisions
and results based on previous similar projects concerning communication issues.

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10.1.2. Plan Communications Management – Tools and Techniques

10.1.2.1. Communication Requirement Analysis
The complete information needs of all the stakeholders are provided as a result of the
communication requirements analysis of the stakeholders. These requirements are defined
by combining the type and format of information needed with an analysis of the value of that
that information. This is to prevent overloading stakeholders with irrelevant information.

10.1.2.2. Communication Technology

Each stakeholder in a project may use different medium and methods for communication.
The project manager should identify the proper technology and method for delivering
information to the respective stakeholders. Communications technology factors that can
affect the project include:

→ The Importance and urgency of the need for information

→ The availability of technology, processes and methods
→ The people who are being utilized in the project and who will interact with the system
→ The duration of the project. Is the available technology likely to change before the
project is over and if so, how scalable is the current technology?
→ The project working environment. Does the team meet and operate on a face- to-face
basis or in a virtual environment?

10.1.2.3. Communication Models

A basic communication model consists of two parties, sender and receiver. Medium is the
technology medium and includes the mode of communication while noise includes any
interference or barriers that might compromise the delivery of the message. The order in
which the communication will take place is encode → transmit message → receive → decode
→ acknowledge → feedback.

10.1.2.4. Communication Methods

There are several communication methods that are used to share information among project
stakeholders. These methods are broadly classified as follows:

− Interactive communication: Between two or more parties performing a

multidirectional exchange of information.
− Push communication: Sent to specific recipients who need to receive the
information.
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− Pull communication: Used for very large volumes of information, or for very large
audiences, and requires the recipients to access the communication content at their
own discretion.

10.1.2.5. Meetings
While developing the Communication Management Plan, project manager, project team and
stakeholders may need to conduct meetings to discuss most appropriate way of
communicating the project information to stakeholders.

10.1.3. Plan Communications Management – Outputs

10.1.3.1. Communications Management Plan
The communications management plan describes how project communications will be
planned, structured, monitored, and controlled. Some of the key components of the plan are
listed below:

→ Stakeholder communication requirements

→ Information to be communicated
→ Time frame and frequency of communication
→ Person responsible for communicating the information
→ Person or groups who will receive the information
→ Methods or technologies used for communication
→ Resources allocated for communication activities

10.1.3.2. Project Documents Update

Project documents that may be updated include Project schedule and Stakeholder register.

10.2. Manage Communications

Manage Communication involves creating, collecting, storing, retrieving and making project
performance and project related information available to project stakeholders in a timely manner as
finalized in Communication Management.

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Manage Communication

Inputs Tools and Techniques Outputs

▪ Communication ▪ Project Communications

▪ Project Management Plan
Technology ▪ Project Management Plan
▪ Project Documents ▪ Communication Updates
▪ Work Performance Report Methods ▪ Project Documents Updates
▪ Communication Skills ▪ Organizational Process Assets
▪ Enterprise Environmental ▪ Project Management Update.
Factors Information System
▪ Organizational Process Assets ▪ Project Reporting
▪ Interpersonal and team
skills
▪ Meetings

10.2.1. Manage Communications – Inputs

10.2.1.1. Communications Management Plan
The communications management plan describes how project communications will be
planned, structured, monitored, and controlled. Some of the key components of the plan are
listed below:
→ Stakeholder communication requirements
→ Information to be communicated
→ Time frame and frequency of communication
→ Person responsible for communicating the information
→ Person or groups who will receive the information
→ Methods or technologies used for communication
→ Resources allocated for communication activities

10.2.1.2. Work performance Reports

Work performance reports are status reports, information notes, recommendations, and
updates to help project team and stakeholders to take decisions, actions, or awareness.
Source of work performance reports is the work performance information that is compiled in
the project documents.

10.2.1.3. Enterprise environmental factors

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Organizational culture and structure, Government or industry standards & regulations and
Project management information system are some of the specific enterprise environmental
factors that can influence the Manage Communications process.

10.2.1.4. Organizational process assets

Project team can refer to the communication templates historical information and lessons
learned from previous projects in Manage Communications process.

10.2.2. Manage Communications – Tools and Techniques

10.2.2.1. Communication technology
Each stakeholder in a project may use different medium and methods for communication.
The project manager should identify the proper technology and method for delivering
information to the respective stakeholders. Communications technology factors that can
affect the project include:

→ The Importance and urgency of the need for information

→ The availability of technology, processes and methods
→ The people who are being utilized in the project and who will interact with the system
→ The duration of the project. Is the available technology likely to change before the project
is over and if so, how scalable is the current technology?
→ The project working environment. Does the team meet and operate on a face- to-face
basis or in a virtual environment?

10.2.2.2. Communication Methods

There are several communication methods that are used to share information among project
stakeholders. These methods are broadly classified as follows:
→ Interactive communication: Between two or more parties performing a multidirectional
exchange of information.
→ Push communication: Sent to specific recipients who need to receive the information.
→ Pull communication: Used for very large volumes of information, or for very large
audiences, and requires the recipients to access the communication content at their
own discretion.

10.2.2.3. Project Information Management Systems

Project Information can be gathered and distributed through a variety of methods. The most
common methods are manual filing systems, electronic databases, project management
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software, and systems that allow access to technical documentation,
drawings, design specifications, and test plans. These systems are dependent on the
communication technology specified.

10.2.2.4. Performance Reporting

The performance reporting is the collection of all baseline data, and distribution of
performance information to stakeholders. Performance reporting focuses on how resources
are being used to achieve project objectives. Performance reporting provides information on
scope, schedule, cost, and quality.

10.2.3. Manage Communications – Outputs

10.2.3.1. Project Communications
Project communications includes performance reports, deliverables status, schedule progress,
and cost incurred. 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.

10.2.3.2. Project Management plan Updates

The project management plan provides information on project baselines, communications
management, and stakeholder management. Each of these areas may require updates based
upon the current performance of the project against the performance measurement baseline.

10.2.3.3. Project document updates

Issue log, Project schedule and Project funding requirements documents may get updated as
a result of Manage Communications process.

10.2.3.4. Organizational process assets Updates

The organizational process assets, which may be updated include:

→ Stakeholder notifications
→ Project reports
→ Project presentations
→ Project records
→ Feedback from stakeholders
→ Lessons learned documentation

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10.3. Monitor Communications

Monitor 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.

Monitor Communication

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Work Performance

▪ Project Management Plan
▪ Project Management Information
▪ Project Documents Information System ▪ Change Requests
▪ Work Performance Data ▪ Data Analysis ▪ Project Management Plan
▪ Interpersonal and team Updates
▪ Enterprise Environmental skills ▪ Project Documents Updates
Factors ▪ Meetings ▪
▪ Organizational Process Assets

10.3.1. Control Communications – Inputs

10.3.1.1. Project Management plan

The project management plan describes how the project will be executed, monitored,
controlled, and closed. It provides valuable information for the Control Communications
process such as:

→ Stakeholder communication requirements

→ Reason for the distribution of the information
→ Timeframe and frequency for the distribution of required information
→ Individual or group responsible for communication of the information
→ Individual or group receiving the information

10.3.1.2. Project Communications

Project communications includes performance reports, deliverables status, schedule progress,
and cost incurred. 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.

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10.3.1.3. Issue Log

An issue log can be used to document and monitor resolution of issue and who is
responsible for resolving specific issues by a target date.

10.3.1.4. Work Performance Data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. Work Performance Data includes costs that have been authorized and
incurred.

10.3.1.5. Organizational process assets

Project team can refer to policies, standards and procedures that are defines communication.
It may also provide the communication templates, historical information and lessons learned
from previous projects in Control Communications process.

10.3.2. Control Communications – Tools & Techniques

10.3.2.1. Project Information Management Systems
Project Information can be gathered and distributed through a variety of methods. The most
common methods are manual filing systems, electronic databases, project management
software, and systems that allow access to technical documentation, such as engineering
drawings, design specifications, and test plans. These systems are dependent on the
communication technology specified.

10.3.2.2. Expert Judgment

Experts with specialized knowledge of communication and experience in similar projects may
be used to assess the impact of communication.

10.3.2.3. Meetings
Project manager, project team and stakeholders may need to conduct meetings to discuss
most appropriate way of to update and communicate the project information to stakeholders.

10.3.3. Control Communications – Outputs

10.3.3.1. Work Performance Information
The work performance data is analyzed in context and integrated based on the relationship

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across areas. Work performance data gets transformed into Work Performance Information
and provides a basis for decisions making associated with project.

10.3.3.2. Change Requests

As a result of the Control Communications process, all corrective and preventive actions that
are required in the project communication are initiated in accordance with Integrated Change
Control Process.

10.3.3.3. Project Management Plan Updates

The project management plan provides information on communications stakeholder
management. Each of these areas may require updates based upon the current
performance of the project against the performance measurement baseline.

10.3.3.4. Project Documents Updates

Project documents that may be updated include:

→ Forecasts
→ Performance reports
→ Issue log

10.3.3.5. Organizational process assets Updates

Report formats and lessons learned with respect to project communications may become part
of the historical database for current project and the performing organization and may
include the causes of issues, reasons behind the corrective
action chosen, and other types of lessons learned during the project.

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Chapter 11: Project Risk

Management

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

− The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

11 Project Risk 11.1 Plan Risk

11.6 11.7 Monitor
Management Implement Risks
Management Risk Response
11.2 Identify Risks
11.3Perform Qualitative
Risk Analysis
11.4 Perform
Quantitative Risk
Analysis
11.5 Plan Risk Response

▪ Plan Risk Management. The process of defining how to conduct risk management activities for a project.
▪ Identify Risks. The process of identifying individual project risks as well as source of overall project risks and
documenting their characteristics
▪ Perform Qualitative Risk Analysis. The process of prioritizing individual project risks for further analysis or action
by assessing their probability of occurrence and impact as well as other characteristics.
▪ Perform Quantitative Risk Analysis. The process of numerically analyzing the combined effect of identified
individual project risks and other sources of uncertainty on overall project objectives.
▪ Plan Risk Response. The process of developing actions, selecting strategies, and agreeing on actions to address
overall project risk exposure as well as treat individual project risk.
▪ Implement Risk Response. The process of implementing the agreed upon risk response plan.
▪ Monitor Risks. The process of monitoring the agreed upon risk response plans, tracking identified risks, identifying
and analyzing new risks, and evaluating the risk process effectiveness throughout the project.

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11.1 Plan Risk Management

Plan Risk Management is the process of defining how to conduct risk management activities for a project.
Risk Management Planning is important to ensure that the level, type and visibility of risk management are
commensurate with both the risk and importance of the project to the organization. Planning is also important
to provide sufficient resources and time for risk management activities and to establish an agreed upon basis
of evaluating risks.

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Plan Risk Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Risk Management Plan

▪ Project Charter
▪ Data Analysis
▪ Project Management Plan ▪ Meetings
▪ Project Documents

▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

11.1.1. Plan Risk Management – Inputs

11.1.1.1. Project Management Plan
In planning risk management, all approved subsidiary management plans and baselines
should be taken into consideration in order to make the risk management plan consistent
with them.

11.1.1.2. Project Charter

The project charter can provide various inputs such as high-level risks, high-level project
descriptions, and high-level requirements.

11.1.1.3. Stakeholders Register

The stakeholder register contains list of all stakeholders associated with the project. It is used
as an input to get an overview of their roles.

11.1.1.4. Enterprise environmental factor

The attitude toward risk and the risk tolerance of organization and people involved in the
project will influence the project management plan. Risk attitudes and tolerances may be
expressed in policy statements or revealed in actions.

11.1.1.5. Organizational process assets

Organizations may have predefined approaches to risk management such as risk categories,
common definition of concepts and terms, standard templates, roles and responsibilities and
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authority levels for decision making.

11.1.2. Plan Risk Management – Tools and Techniques

11.1.2.1. Data Analysis
Analytical techniques are applied in project management to choose strategic options related to
project risk. They also help understand and define the overall risk management context of the
project and perform high-level assessment of the risk exposure of the project based on the
overall project context.

11.1.2.2. Expert Judgment

To prepare a comprehensive Risk Management Plan, expert judgment and expertise are
applied to any risk related technical and management details during this process. Such expertise
is provided by any group or individual with specialized knowledge or training and can be made
available from several sources including:

→ Other departments/units within the organization

→ Senior Management
→ Consultants
→ Stakeholders including customers or sponsors
→ Professional and technical associations
→ Industry groups.

11.1.2.3. Meetings
Project manager, project team and stakeholders may need to conduct meetings to develop
the Risk management Plan.

11.1.3. Plan Risk Management – Outputs

11.1.3.1. 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:

→ Methodology: Defines the approaches, tools, and data sources that may be used to
perform risk management on the project.
→ Roles and Responsibilities: Defines the Lead, support, members of the risk management
team for each type of activity in the risk management plan, assigns people to these
roles, and clarifies their responsibilities.
→ Budgeting: Assigns resources and estimates costs needed for risk management for
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inclusion in the project cost baseline.

→ Timing: Defines schedule and frequency of the risk management process that will be
performed throughout the project tile cycle, and establish risk management activities
in the project schedule.
→ Risk Categories: Provides a structure that ensure a comprehensive process of
systematically Identifying risk to a consistent level of detail and contributes to the
effectiveness and quality of Risk Identification. A risk breakdown structure (RBS) is one
approach to providing such a structure.
→ Definitions of Risk Probability and impact: The quality and credibility of the Qualitative
Risk Analysis process requires that different levels of the risk probabilities and impact
be defined. General definitions of probability levels and impact Levels are tailored to
the individual projects during the Risk Management planning process for use in the
Qualitative Risk Analysis process.
→ Probability and Impact Matrix: Risks are prioritized according to their potential
implications on meeting the project’s objectives. The typical approach in prioritizing risk
is to use a lookup table or a Probability and Impact Matrix. The specific combination of
probability and impact leads to a risk being rated as of high, moderate or low
Importance.
→ Revised Stakeholders’ tolerances: Stakeholders tolerances may be revised in the Plan
Risk Management process, as they apply to the specific project.
→ Reporting Formats: Describes the content and format of the risk register as well as any
other required risk related reports. Defines how the outcomes of the risk management
processes will be documented, analyzed, and communicated.
→ Tracking: Documents whether and the risk management processes will be audited.

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11.2. Identify Risk
Identify Risk process determines which risk may affect the project and documents their
characteristics. Participants in risk identification activities can include project manager, project team
members, risk management team (if assigned), subject matter experts from outside the project team,
customers, end users, other project managers, stakeholders and risk management expects. The Risk
Identification process usually leads to the Qualitative Risk Analysts process.

Identify Risks

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Risk Register

▪ Project Management Plan
▪ Data Gathering ▪ Risk Report
▪ Project Documents ▪ Data Analysis ▪ Project Documents Updates
▪ Agreements ▪ Interpersonal and Team
Skills
▪ Procurement Documentation ▪ Prompt List
▪ Enterprise Environmental ▪ Meetings
Factors

▪ Organizational Process Assets

11.2.1. Identify Risk – Inputs

11.2.1.1. Risk management plan
Key elements of the Risk Management Plan that contribute to the Identify Risks process are
the roles and responsibilities, provision for risk management activities in the budget and
schedule,
11.2.1.2.and categories
Cost of risk.plan
management
The cost management plan provides processes and controls that can be used to help identify
risks across the project.

11.2.1.3. Schedule management plan

The schedule management plan provides insight to project time/schedule objectives and
expectations which may be impacted by risks (known and unknown).

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11.2.1.4. Quality management plan
The quality management plan provides a baseline of quality measures and metrics for use in
identifying risks.

11.2.1.5. Human Resource Management plan

The human resource management plan provides guidance on how project human resources
should be defined, staffed, managed, and eventually released form a key input to identify risk
process.

11.2.1.6. Scope baseline

Project assumptions are found in the project scope statement. Uncertainty in project
assumptions should be evaluated as potential causes of project risk.

11.2.1.7. Activity cost estimates

Activity cost estimate reviews are useful in identifying risks as they provide a quantitative
assessment of the likely cost to complete scheduled activities.

11.2.1.8. Activity duration estimates

Activity duration estimate reviews are useful in identifying risks related to the time allowances
for the activities or project as a whole, again with the width of the range of such estimates
indicating the relative degree(s) of risk.

11.2.1.9. Stakeholder register

Information about the stakeholders is useful for soliciting inputs to identify risks, as this will
ensure that key stakeholders, especially the stakeholder, sponsor, and customer are
interviewed or otherwise participate during the Identify Risks process.

11.2.1.10. Project documents

Project team gets the information about decisions that help better identify project risks.
Project documents improve cross-team and stakeholder communications and include Project
Charter, Project Schedule, Issue Logs, and Schedule Network Diagrams etc.

11.2.1.11. Procurement Documents

Any external procurement of product, service or result become a key input to the Identify
Risks process.

11.2.1.12. Enterprise environmental factors

Enterprise environmental factors that can influence the Identify Risks process include:

→ Published information, including commercial databases

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→ Academic studies
→ Published checklists
→ Benchmarking
→ Industry studies
→ Risk attitudes.

11.2.1.13. Organizational process assets

Organizational process assets that can influence the Identify Risks process include:

→ Project files, including actual data

→ Organizational and project process controls
→ Risk statement formats or templates
→ Lessons learned

11.2.2. Identify Risk – Tools and Techniques

11.2.2.1. Documentation reviews
A structured review of project documentation, including subsidiary plans, assumptions,
prior project files, and other information can be performed.

11.2.2.2. Information gathering techniques

Key information gathering techniques used in identifying risk can include following:

→ Brainstorming: The goal of brainstorming is to obtain a comprehensive list of project

risks. Risks are then Identified and categorized by type of risk and their definitions are
sharpened.
→ Delphi Technique: A facilitator uses a questionnaire to solicit ideas about the important
project risks. The responses are summarized and are then re- circulated to the experts
for further comment.
→ Interviewing: Interviewing experienced project participants, stakeholders and subject
matter expects can help identify risks.
→ Root Cause Identification: This is an inquiry into the essential causes of a project’s risks.
Effective risk responses can be developed if the root cause of the risk is addressed.

11.2.2.3. Checklist analysis

Risk Identification checklists can be developed based on historical information and knowledge
that has been associated from previous similar projects and from other sources of
information. The lowest Level of the risk can also be used as a risk checklist.

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11.2.2.4. Assumptions analysis

Assumptions analysis is a tool that explores the validity of assumptions as they apply to the
project. It identifies risks to the project from inaccuracy, inconsistency, or incompleteness of
assumptions.

11.2.2.5. Diagramming techniques

Risk diagramming techniques may include:

→ Cause-and-effect diagrams: These are also known as Ishikawa or Fishbone diagrams,

and are useful for identifying root causes of risks.
→ System or process flow charts: These show how various elements of a system
interrelate.
→ Influence diagrams: These are graphical representations of situations showing causal
influences, time ordering of events, and other relationships among variables and
outcomes.

11.2.2.6. SWOT analysis

This technique ensures examination of the project from each of the SWOT (Strength,
Weakness, Opportunity and Threat) perspectives, to increase the breadth of considered risks.

11.2.2.7. Expert judgment

Risks may be identified directly by experts with relevant experience with similar projects or
business areas. Such experts should be identified by the project manager and invited to
consider all aspects of the project and suggest possible risks based on their previous
experience and areas of expertise.

11.2.3. Identify Risk – Outputs

11.2.3.1. Risk register
The primary outputs from Risk Identification are the Initial entries into the risk register, which
becomes a component of the project management plan. The preparation of the risk register
begins in the Risk identification process with the all the potential risk being captured, and then
becomes available to other project management and Project Risk Management processes. It
includes all identified risks including their root causes and uncertain project assumptions.

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11.3. Perform Qualitative Risk Analysis

Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such
as Quantitative Risk Analysts or Risk Response Planning. Organizations can improve the project’s
performance effectively by focusing on high priority risks. Qualitative Risk Analysis assesses the priority
of identified risks using their probability of occurrence, the corresponding impact on project
objectives as well as other factors such as the time frame if the risk occurs and risk tolerance of the
project constraint of cost, schedule, scope or quality.

Perform Qualitative Risk

Analysis

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Project Documents Updates

▪ Project Management Plan
▪ Data Gathering
▪ Project Documents ▪ Data Analysis
▪ Enterprise Environmental ▪ Interpersonal and Team
Factors Skills
▪ Risk Categorization
▪ Organizational Process Assets ▪ Data Representation
▪ Meetings

11.3.1 Qualitative Risk Analysis – Inputs

11.3.2.1. Risk Management Plan
Key elements of the risk management plan for Qualitative Risk Analysis include roles and
responsibilities for conducting risk management, budgets, activities for risk management, risk
categories, definition of probability and impact, the probability and Impact matrix, and revised
stakeholders’ risk tolerances. These inputs are usually tailored to the project during the Risk
Management Planning process.

11.3.1.2. Scope Baseline

Projects of a common or recurrent type tend to have more well-understood risks. Projects
using state-of-the-art or first-of-its-kind technology, and highly complex projects, tend to have
more uncertainty. This can be evaluated by examining the scope baseline.

11.3.1.3. Risk register

The risk register contains the detailed list of risks and their associated information that will be
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used to assess and prioritize risks.

11.3.1.4. Enterprise Environment Factors

Enterprise environmental factors may provide insight and context to the risk assessment such
as Industry studies of similar projects by risk specialists and risk databases that may be
available from industry or proprietary sources.

11.3.1.5. Organizational process assets

Data about past projects and lessons learned knowledge base can be used in the Qualitative
risk analysis.

11.3.3. Perform Qualitative Risk Analysis – Tools and Techniques

11.3.3.1. 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 the project objectives such as time,
cost, scope or quality, including both negative effects for threats and positive effects for
opportunities.

Probability and impact are assessed for each identified risk. Risks can be assessed in interviews
or meetings and the level of probability for each risk and its impact on each objective is
evaluated.

Explanatory details, including assumptions justifying the levels assigned, is also recorded. Risk
probabilities and impacts are rated according to the definitions given in the risk management
plan.

11.3.3.2. Probability and impact matrix

Risks can be prioritized for further quantitative analysis and response, based on their risk rating.
Evaluation of each risk’s importance and, hence priority for attention is typically conducted
using a lockup table or a probability and impact matrix.

The organization should determine which combinations of probability and impact results in a
classification of high, moderate or low risk.

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11.3.3.3. 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 about the risk.

11.3.3.4. 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. Grouping risks by
common root causes can lead to developing effective risk responses.

11.3.3.5. Risk urgency assessment

Risks requiring near-term responses may be considered more urgent to address. Indication of
priority can include time to affect a risk response, symptoms and warning signs and the risk
rating.

11.3.3.6. Expert judgment

Expert judgment is required to assess the probability and impact of each risk to determine its
location in the matrix. Experts generally are those having experience with similar, recent
projects.

11.3.4. Perform Qualitative Risk Analysis – Outputs

11.3.4.1. Project Documents Updates
The information pertaining to risks is limited in risk register during the Risk identification
process. The risk register is updated with information from qualitative Risk Analyses and the
updated risk register is included in the project management plan. Another document that gets
updated in this process is the assumption log.

11.4. Perform Quantitative Risk Analysis

Quantitative Risk Analysis is performed on risks that have been prioritized by the Qualitative Risk
Analysis process as potentially and substantially impacting the project’s competing demands. The
Quantitative Risk Analysis process analyses the effect of those risk events

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and assigns a numerical rating to those risks. It also presents a quantitative approach towards
making a decisions in the presence of uncertainty.

Perform Quantitative Risk

Analysis

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Project Documents Updates

▪ Project Management Plan
▪ Data Gathering
▪ Project Documents ▪ Representation of
▪ Enterprise Environmental uncertainty
Factors ▪ Data Analysis
▪ Interpersonal and Team
▪ Organizational Process Assets Skills

11.4.2 Perform Quantitative Risk Analysis – Inputs

11.4.2.1. Project Management Plan

The components of the project management plan which can be considered as input to this process
are:
▪ Risk Management Plan
▪ Scope Baseline
▪ Schedule Baseline
▪ Cost Baseline

11.4.2.2. Project Documents

The project Documents which can be considered as input to this process are:
▪ Assumption Log
▪ Basis of Estimate
▪ Cost Estimate
▪ Cost Forecast
▪ Schedule forecasts
▪ Duration estimates
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▪ Risk Register

11.4.1.4. Enterprise Environmental Factors

Enterprise environmental factors may provide insight and context to the risk analysis such as
industry studies of similar projects by risk specialists, and risk databases that may be available
from industry or proprietary sources.

11.4.1.5. Organizational process assets

The organizational process assets that can influence the Perform Quantitative Risk Analysis
process include information from prior, similar completed projects.

11.4.3. Perform Quantitative Risk Analysis – Tools and Techniques

11.4.3.1. Data gathering and representation techniques

→ Interviewing: Interviewing techniques are used to quantify the probability and impact of
risks on project objectives. Documenting the rationale of the risk ranges is an important
component of the risk interview, because it can provide information on reliability and
credibility of the analysis.
→ Probability Distribution: Continuous probability distribution represents the uncertainty
in values, such as durations of schedule activities and costs of project components.

11.4.3.2. Quantitative risk analysis and modeling techniques

Commonly used techniques in Quantitative Risk Analysis include:

→ Sensitivity Analysis: Sensitivity analysis helps to determine the risks that have the most
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.
→ 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). A common use
of this type of analysis is in decision tree analysis.
→ Decision Tree Analysis: Decision Tree Analysis is usually structured using a decision tree
diagram that describes a situation under consideration, and the implications of each of
the available choices and possible scenarios.
→ Modeling and simulation: A project simulation uses a model that translates the
uncertainties specified at a detailed level of the project into their potential impact on
project objectives. Simulations are typically performed using the Monte Carlo
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technique.

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11.4.3.3. Expert judgment

Subject matter expects internal or external to the organization, such as engineering or
statistical experts, validate data and techniques.

11.4.4. Perform Quantitative Risk Analysis – Outputs

11.4.4.1. Project Documents Updates
The risk register is initiated in the Risk Identification process and updated in Qualitative Risk
Analysis. It is further updated in Quantitative Risk Analysis. The risk register is a component of
the project management plan. Updates include Probabilistic analysis of the project,
Probability of achieving cost and time objectives, Prioritized list of quantified risks and Trends
in quantitative risk analysis.

11.5. Plan Risk Responses

Plan Risk Response is the process of developing options and determining actions to enhance
opportunities and reduce threats to the project’s objective. It follows the Qualitative Risk Analysis and
Quantitative Risk Analysis processes. Risk Response Planning addresses the risks by their priority,
inserting resources and activities into the budget, schedule and project management plan as needed.

Plan Risk Response

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Change Requests

▪ Project Management Plan
▪ Data Gathering ▪ Project Management Plan
▪ Project Documents ▪ Strategies for threats Updates
▪ Enterprise Environmental ▪ Strategies for ▪ Project Documents Updates
Factors opportunities
▪ Contingent response
▪ Organizational Process Assets strategy
▪ Strategies for overall
project risks
▪ Data Analysis
▪ Interpersonal and Team
Skills
▪ Decision making

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11.5.1. Plan Risk Responses – Inputs
11.5.1.1. Risk management plan
Important components of the risk management plan include roles and responsibilities, risk
analysis definitions, risk thresholds for low, moderate, and high risks, and the time and budget
required to conduct Project Risk Management.
11.5.1.2. Risk register
The risk register is first developed in the Risk Identification process, and is updated during the
Qualitative and Qualitative Risk Analysis processes. The Plan Risk Response process may have
to refer back to Identified risks, root causes of risks, lists of potential responses, risk owners,
symptoms, and warning signs in developing risk responses.

11.5.2. Plan Risk Responses – Tools and Techniques

11.5.2.1. Strategies for negative risks or threats
There are four strategies typically deal with threats or risks that may have negative impacts
on project objectives if they occur. These strategies are:

→ Avoid: Risk avoidance involves changing the project management plan to eliminate the
threat posed by an adverse risk, to isolate the project objective from the risk’s impact, or
to relax the objective that is in jeopardy. Risks that arise early in the project can be
avoided by clarifying requirements, obtaining information, improving communication, or
acquiring expertise.
→ Transfer: Risk transference requires shifting the negative impact of a threat, along with
ownership of the response, to a third party. Transferring the risk simply gives another
party responsibility for its management. It does not eliminate it.
→ Mitigate: Risk mitigation implies a reduction in the probability and/or impact of an adverse
risk event to an acceptable threshold. Taking early action to reduce the probability and/or
impact of a risk occurring on the project is often more effective than trying to repair the
damage after the risk has occurred. Where it is not possible to reduce probability, a
mitigation response might address the risk impact by targeting linkages that determine
the severity.
→ Accept: Risk acceptance involves the decision to acknowledge the risk and not take any
actions 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.

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11.5.2.2. Strategies for positive risks or opportunities
There are four strategies typically deal with opportunities or risks that may have positive
impacts on project objectives if they occur. These strategies are:

→ Exploit: The exploit strategy may be selected for risks with positive impacts where the
organization wishes to ensure that the opportunity is realized. This strategy seeks to
eliminate the uncertainty associated with a particular upside risk by ensuring the
opportunity definitely happens.
→ Share: Sharing a positive risk involves allocating ownership to a third party who is best
able to capture the opportunity for the benefits of the project.
→ Enhance: This strategy modifies the “size of an opportunity by increasing probability
and/or positive impacts, and by identifying and maximizing key drivers of these post-
impact risks. Strategy for Both Threats and Opportunities.
→ Accept: Acceptance involves the decision to acknowledge the opportunity and not take
any actions unless the opportunity arises.

11.5.2.3. Contingent response strategies

Some responses are designed for use only if certain events occur. For some risks, it is
appropriate for the project team to make a response plan that will only be executed under
certain predefined conditions and if there is 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.

11.5.2.4. Expert judgment

Input from experts pertaining to the actions to be taken on a specific and defined risk.
Expertise may be provided by any group or person with specialized education, knowledge,
skill, experience, or training in establishing risk responses.

11.5.3. Plan Risk Responses – Outputs

11.5.3.1. Project management plan updates
Various components of the project management plan are updated to reflect the changes in
process, tolerance or behavior related to specific subsidiary area. Some of the key
components that gets updated are:

→ Schedule management plan: Changes in resource loading and leveling, and schedule
strategy.

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→ Cost management plan: Changes in cost accounting, tracking, and reports and updates
to the budget strategy and how contingency reserves are consumed.
→ Quality management plan: Changes in behavior related to requirements, quality
assurance, or quality control and updates to the requirements documentation.
→ Procurement management plan: Alterations in the make-or-buy decision or contract
type(s) driven by the risk responses.
→ Human resource management plan: Changes in project organizational structure and
resource applications, staff allocation, as well as updates to the resource loading.
→ Scope baseline: Modified or omitted work generated by the risk responses.
→ Schedule baseline: Changes in schedule baseline to reflect changes in Scope baseline.
→ Cost baseline: Changes in schedule baseline to reflect changes in Scope baseline.

11.5.3.2. Project document updates

When appropriate risk responses are chosen and agreed upon, they are included in the risk
register. Updates also include symptoms and warning signs of risk’s occurrence.

11.6. Implement Risk Responses

Implement Risk response it the process of implementing agreed upon risk response plans. The key benefit of
this process is that it ensures that agreed upon risk responses are executed as planned in order to address
overall project risk exposure, minimize individual project threats and maximize individual project
opportunities.

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Implement Risk Responses

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Change Requests

▪ Project Management Plan
▪ Interpersonal and Team ▪ Project Documents Updates
▪ Project Documents Skills
▪ Organizational Process Assets ▪ Project Management
Information System

11.6.1. Implement Risk Responses – Inputs

11.6.1.1. Project Management plan
The component Risk Management Plan of project management plan, which includes the risk
management plan, provides guidance for this process. It also documents the roles and
responsibilities of the team members and stakeholders for risk management.

11.6.1.2. Project Documents

The project documents that can be a part of the input to this process are:
▪ Risk Register
▪ Risk Reports
▪ Lessons Learned Register

11.6.1.1. Organizational Process Assets

The Organizational process assets that can influence this process is Lessons Learned Repository
containing information on similar completed projects.

11.6.2. Implement Risk Responses – Tools & Techniques

11.6.2.1. Expert Judgement
Expertise should be sought from individuals or groups having specialized knowledge to validate and
modify the risk responses if necessary.

11.6.2.2 Interpersonal & Team Skills

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The most important skill which is effective in this process is Influencing. The project manager should
take care that the risk owners take necessary actions when required through his influencing skill.

11.6.2.3 Project Management Information System

The PMI®S may contain, schedule, resource and cost management software which can and may
include the risk response plan and associated actions are integrated.

11.6.3. Implement Risk Responses – Outputs

11.6.3.1. Change Requests
11.6.3.2. Project Documents Updates

11.7. Monitor Risks

Monitor Risk is the process of identifying, analyzing and planning for newly arising risks, keeping track
of the earlier identified risks and those on the watch List, reanalyzing existing risks, monitoring trigger
conditions for contingency plans, monitoring residual risks and reviewing the execution of risk
responses while evaluating their effectiveness.

Monitor Risks

Inputs Tools and Techniques Outputs

▪ Data Analysis ▪ Work Performance

▪ Project Management Plan
▪ Audits Information
▪ Project Documents ▪ Meetings ▪ Change Requests
▪ Work Performance Data ▪ Project Management Plan
Updates
▪ Work Performance Report ▪ Project Documents Updates
▪ Organizational Process Assets
Updates

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11.6.2. Monitor Risks – Inputs

11.6.2.1. Project Management plan
The project management plan, which includes the risk management plan, provides guidance
for risk monitoring and controlling.

11.6.2.2. Risk Register

The risk register has key inputs that Include identified risks and risk owners, agreed
- upon risk responses, specific implementation actions, symptoms and warning signs of risk,
residual and secondary risks, a watch-list of low priority risks and cost contingency reserves.

11.6.2.3. Work Performance Data

Work performance data includes project’s deliverables status, corrective actions
and performance reports are key inputs to Control Risk process.

11.6.2.4. Work Performance reports

Work performance reports provide information on project work performance such as variance
analysis, earned value data and forecasting that may influence the risk management
processes.

11.6.3. Monitor Risks – Tools and Techniques

11.6.3.1. Risk reassessment
Project risk reassessments should be regularly scheduled to identify new risks,
reassessment of current risks and closing of the risks that are no longer valid.

11.6.3.2. 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.

11.6.3.3. Variance and trend analysis

Earned value analysis 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 cost and schedule targets.

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11.6.3.4. Technical performance measurement
Technical performance measurement compares technical accomplishments during project
execution to the project management plan’s schedule of technical achievements.

11.6.3.5. Reserve analysis

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.

11.6.3.6. Meetings
Project risk management can be an agenda item at periodic status meetings.

11.6.4. Monitor Risks – Outputs

11.6.4.1. Work Performance Information
Work performance information, as a Control Risks output, provides a mechanism to communicate
and support project decision making.

11.6.4.2. Changes requests

Implementing contingency plans or workarounds sometimes results in a change request.
Change requests that may include corrective or preventive action plans are prepared and
submitted to the Perform Integrated Change Control process.

11.6.4.3. Project management plan updates

If the approved change requests have an effect on the risk management processes, the corresponding
component documents of the project management plan are revised and re-issued to reflect the
approved change requests.

11.6.4.4. Project Documents updates

The key document to be updated as an outcome of Control Risk process is Risk Register. It may get
updated with outcomes of risk reassessments, risk audits, and periodic risk reviews. It may also contain
result of project’s risk and risk response.

11.6.4.5. Organizational Process Assets Updates

The risk management processes produce information that may be used for future projects, and
should be captured in the organizational process assets.
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Chapter 12: Project Procurement

Management

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12. Project Procurement Management
Project Procurement Management includes the processes necessary to purchase or acquire products,
services, or results needed from outside the project team. Project Procurement Management includes
management and control processes required to develop and administer agreements such as
contracts, purchase orders, MOA & SLA.

− The PMBOK® Guide – 6th Edition.

Project Management Process Groups

Knowledge Monitoring
Area Initiating Planning Executing and Closing
Controlling

12 Project 12.1 Plan 12.2 Conduct 12.3 Control

Procurement Procurements Procurements
Procurement
Management
Management

▪ Plan Procurement Management. The process of documenting project procurement decisions,

specifying the approach, and identifying potential sellers.
▪ Conduct Procurements. The process of obtaining seller responses, seller selection and awarding
the contract.
▪ Control Procurements. The process of managing procurement relationship, monitoring contract
performance, making changes and adjustment as necessary and closing a contract.

12.1. Plan Procurement Management

Purpose of the Plan Procurement Management is to identify which project needs can best be met by
purchasing or acquiring products, services, or results outside the project organization. This process
involves consideration of whether, how, what, how much, and when to acquire. When the project
obtains products, services, and results required for project performance from outside the performing
organization, the processes from Plan Procurement Management through Close Procurements are
performed for each item to be purchased or acquired.

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Plan Procurement
Management

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Procurement Management

▪ Project Charter
▪ Data Gathering Plan
▪ Business Documents ▪ Data Analysis ▪ Procurement Strategy
▪ Project Management Plan ▪ Source Selection Analysis ▪ Bid Documents
▪ Meetings ▪ Procurement Statement of
▪ Project Documents Work
▪ Enterprise Environmental ▪ Source Selection Criteria
Factors ▪ Make or buy decision
▪ Independent cost estimates
▪ Organizational Process Assets ▪ Change Requests
▪ Project Documents Updates
▪ Organizational Process Assets
Updates

12.1.1. Plan Procurement Management – Inputs

12.1.1.1. Project Management Plan
It can be composed of one or more subsidiary plans and other components. The project
management plan describes the need, justification, requirements, and current
boundaries for the project. These subsidiary plans include:

→ Project Scope Statement

→ WBS
→ WBS Dictionary

12.1.1.2. Requirements documentation

Requirements documentation captures the requirements that the project must meet
pertaining to stakeholder expectations and those requirements must be considered during
planning for procurement.

12.1.1.3. Risk register

The risk register provides the list of risks, along with the results of risk analysis and risk
response planning.

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12.1.1.4. Activity resource requirements

Description of the resource types and number of resources required for each activity in a work
package is considered during plan procurement process since the assigned resources and
resource availability will significantly influence the procurement decisions.

12.1.1.5. Project schedule

It includes planned start & finish dates, durations, milestones, and resources for overall
project and planned start & finish dates for each activity.

12.1.1.6. Activity cost estimates

An activity cost estimate is a quantitative assessment of the likely costs of the resources
required to complete activities.

12.1.1.7. Stakeholder Register

The stakeholder register provides an exhaustive list of the key stakeholders who will provide
the requirements and it also captures their main expectations.

12.1.1.8. Enterprise environmental factors

The enterprise environmental factors that can influence the Plan Procurement
Management process include:

→ Marketplace conditions
→ Products, services, and results that are available in the marketplace
→ Suppliers, including past performance or reputation
→ Terms and conditions
→ Unique local requirements.

12.1.1.9. Organizational process assets

Existing format and informal procurement related policies, procedures, guidelines and
management systems that are considered in developing the procurement management plan
and selecting the contract types to be used are provided by organizational process assets.
There are different types of contracts for different purposes. Contract types generally fall
into one of the three broad categories:

→ Fixed Price or Lump Sum Contracts: The buyer and seller agree on a well- defined
deliverable for a set price. In this kind of contract, the biggest risk is borne by the seller.
1) Firm Fixed Price Contracts (FFP)
2) Fixed Price Incentive Fee Contracts (FPIF)
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3) Fixed Price Incentive Fee Contracts (FPIF)

→ Cost-reimbursable contracts: All the costs the seller takes on during the project are
charged back to the buyer, thus the seller is reimbursed. Three of the more common
types of cost-reimbursable contracts are:
1) Cost Plus Fixed Fee (CPFF)
2) Cost Plus Incentive Fee (CPIF)
3) Cost Plus Award Fee (CPAF)
→ Time and Material contracts (T&M): This type of contract is a mix of fixed price and cost
reimbursable contract. The full amount of the material costs is not known at the time
the contract is awarded. This resembles a cost reimbursable contract as the costs will
continue to grow during the contract’s life.

12.1.2. Plan Procurement Management – Tools and Techniques

12.1.2.1. Make-or-buy analysis
A make-or-buy analysis is a technique used to determine whether particular work can best be
accomplished by the project team or should be purchased from outside sources. One of the
key component to consider in make or buy analysis is cost. The objective of make or buy
analysis is whether it’s more cost effective to buy the products and services or more cost
effective for the organization to produce the goods and services needed for the project.
Available contract types are also considered during the buy analysis. The risk sharing between
the buyer and seller determines the suitable contract types, while the specific contract terms
and conditions formalize the degree of risk being assumed by the buyer and seller.

12.1.2.2. Expert judgment

Expert purchasing judgment can also be used to develop or modify the criteria that will be
used to evaluate seller proposals. Expert legal judgment may involve the services of legal staff
to assist with unique procurement issues, terms, and conditions.

12.1.2.3. Market Research

Market research includes examination of industry and specific vendor capabilities.

12.1.2.4. Meetings

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Project manager, project team and stakeholders may need to conduct meetings with potential
bidders for exchange of additional information.

12.1.3. Plan Procurement Management – Outputs

12.1.3.1. Procurement management plan
How the procurement processes will be managed from developing procurement
documentation through contract closure is described in the procurement management plan
that can include:

→ Types of contracts to be used

→ Who will prepare independent estimates and if they are needed as evaluation criteria
→ Actions that project management team can take on their own if the performing
organization has a procurement or purchasing department of their own.
→ Standardized procurement documents if needed
→ Coordinating procurement with other project aspects such as scheduling and performance
reporting
→ Constraints and assumptions that could affect planned purchases and acquisitions
→ Handling the lead time required to purchase or acquire items from sellers and coordinating
them with the project schedule development
→ Setting the schedule dates in each contract for the contract deliverables and coordinating with
the schedule development and control processes.
→ Identifying pre-qualified selected sellers, if any.
→ Procurement metrics to be used to manage contracts and evaluate sellers.

Procurement management plan is a subsidiary component of the project management plan

that can be highly detailed or broadly framed and is based upon the needs of the project, it
can be formal or informal.

12.1.3.2. Procurement statements of work

The procurement statement of work for each contract is developed from the project scope
statement, WBS and WBS dictionary. It describes the procurement items in sufficient detail
to allow prospective sellers to determine if they are capable of providing the item. Sufficient
details can vary based on the items or the need of the

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buyer. A procurement SOW describes the product service or result to be supplied by the seller.
Information included in a procurement SOW can include specifications, quantity desired,
quality levels, performance data, period of performance, work location and other
requirements.

12.1.3.3. Procurement documents (RFP/RFI)

Procurement documents are used to solicit proposals from prospective sellers. Different types
of procurement documents may include request for information (RFI), invitation for bid (IFB),
request for proposal (RFP), request for quotation (RFQ), tender notice, invitation for
negotiation, and invitation for seller’s initial response. Specific procurement terminology used
may vary by industry and location of the procurement.

12.1.3.4. Source selection criteria

Source selection criteria are developed and used to rate or score proposals. They are often
included as part of the procurement documents. Evaluation criteria can be limited to purchase
price if the procurement items is readily available from a number of acceptable sellers.
Purchasing price in this context includes both the cost of the item and ancillary expenses such
as delivery. Other selection criteria can be identified and documented to support an
assessment for a more complex product or service. For example:

→ Understanding of need
→ Overall life-cycle cost
→ Technical capability
→ Management approach
→ Technical approach
→ Financial capability
→ Production capacity and interest
→ Business size and type
→ References
→ Intellectual property rights
→ Proprietary rights

12.1.3.5. Make-or-buy decisions

A make-or-buy analysis results in a decision of whether particular work can best be
accomplished by the project team or needs to be purchased from outside sources.

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12.1.3.6. Change requests

Decisions taken during procurement planning can create the need for additional change
requests. Change requests are processed for review and disposition through
the Perform Integrated Change Control process.

12.1.3.7. Project Documents Update

A decision of procurement may require update in requirements documentation, requirements
traceability matrix and Risk register.

12.2. Conduct Procurements

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a
contract. It provides alignment of internal and external stakeholder expectations through established
agreements.

Conduct Procurements

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Selected Seller

▪ Project Management Plan
▪ Bidder Conference ▪ Agreements
▪ Project Documents ▪ Data Analysis ▪ Change Requests
▪ Procurement Documentation ▪ Interpersonal & Team ▪ Project Management Plan
Skills Updates
▪ Seller Proposal ▪ Project Documents Updates
▪ Enterprise Environmental ▪ Organizational Process Assets
Factors Updates

▪ Organizational Process Assets

12.2.1. Conduct Procurements – Inputs

12.2.1.1. Procurement management plan
The procurement management plan describes how the procurement processes will be
managed from developing procurement documentation through contract closure.

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12.2.1.2. Procurement documents
Procurement documents provide an audit trail for contracts and other agreements.

12.2.1.3. Source selection criteria

Source selection criteria can include information on the supplier’s required capabilities,
capacity, delivery dates, product cost, life-cycle cost, technical expertise, and the approach to
the contract.

12.2.1.4. Seller proposals

Seller proposals, received in response form the basic information that will be used by an
evaluation body to select one or more successful bidders (sellers).

12.2.1.5. Project documents

Project documents that are often considered include the risk-related contract decisions
included within the risk register.

12.2.1.6. Make-or-buy decisions

Organizations procuring goods or services analyze the need of buying products versus making
the items themselves.

12.2.1.7. Procure Statement Of Work

The procurement statement of work provides suppliers with a clearly stated set of goals,
requirements, and outcomes from which they can provide a quantifiable response.

12.2.1.8. Organizational process assets

Listings of prospective and previously qualified sellers, information on relevant past
experience with sellers and prior agreements can be an important input in conducting the
procurement.

12.2.2. Conduct Procurements – Tools and Techniques

12.2.2.1. Bidder conferences
Bidder conferences are meetings with prospective sellers prior to preparation of a bid or
proposal and to ensure that all prospective sellers have a clear, common understanding of the
technical and contractual requirements. Response to questions can be incorporated into the
procurement requirements as amendments. All potential sellers are given equal standing

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during this initial buyer and seller interaction to produce the bestGuide
bid.

12.2.2.2. Proposal evaluation techniques

A formal evaluation review process is defined by the buyer’s procurement policies. The
evaluation committee will make their selection for approval by management prior to the
award.

12.2.2.3. Independent estimates

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.

12.2.2.4. Expert judgment

Expert judgment may be used in evaluating seller proposals. This can include expertise from
functional disciplines such as contracting, legal, finance, accounting, engineering, design,
research, development, sales, and manufacturing.

12.2.2.5. Advertising
Existing lists of potential sellers can be expanded by placing advertisements in general
circulation publications such as selected newspapers or in trade publications. Some
government jurisdictions require public advertising of certain types of procurement items,
and most government jurisdictions require public advertising or online posting of pending
government contracts.

12.2.2.6. Analytical Techniques

Procurements involve defining a need in such a way that vendors can bring value through
their offerings. To ensure that the need can be and is met, analytical techniques can help
organizations identify the readiness of a vendor to provide the desired end state, determine
the cost expected to support budgeting, and avoid cost overruns due to changes.

12.2.2.7. Procurement negotiations

Procurement negotiations clarify the structure, requirements, and other terms of the
purchases so that mutual agreement can be reached prior to signing the contract. The project
manager may not be the lead negotiator on procurements. The project manager and other
members of the project management team may be present during negotiations to provide
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assistance, and, if needed, to add clarification of the project’s
management requirements.

12.2.3. Conduct Procurements – Outputs

12.2.3.1. Selected sellers
The selected sellers are those whose proposals have been reviewed using the evaluation
criteria and have been judged to be in a competitive range.

12.2.3.2. Agreements
An agreement is a legal relationship subject to remedy in the courts that is awarded to each
selected seller. It can be in the form of a complex document or a simple purchase order.
Regardless of the document’s complexity, an agreement is a mutually binding legal agreement
that obligates the seller to provide the specified products, services or results and obligates
the buyer to pay the seller.

12.2.3.3. Resource calendars

The quantity and availability of the resources and those dates on which each specific resource
can be active or idle are documented.

12.2.3.4. Change requests

Outcome of the conduct procurement process may result in changes in scope, schedule or
cost baselines of the project. Change request processed for review and disposition through
the Perform Integrated Change Control process.

12.2.3.5. Project management plan updates

Elements of the project management plan that may be updated include:

→ Cost baseline
→ Scope baseline
→ Schedule baseline
→ Communications management plan
→ Procurement management plan
12.2.3.6. Project document updates
Project documents that may be updated include:

→ Requirements documentation

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→ Requirements traceability documentation
→ Risk register
→ Stakeholder register

12.3. Control Procurements

Control Procurements is the process of managing relationships between buyer and seller, monitoring
contract performance, and making changes and corrections to contracts as appropriate, as well as
closing the contract.

Control Procurements

Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Closed Procurements

▪ Project Management Plan
▪ Claim Administration ▪ Work Performance
▪ Project Documents ▪ Data Analysis Information
▪ Procurement Documentation ▪ Inspection ▪ Procurement Documentation
▪ Audits updates
▪ Agreements ▪ Change Requests
▪ Approved Change Requests ▪ Project Management Plan
Updates
▪ Work Performance Data ▪ Project Documents Updates
▪ Enterprise Environmental ▪ Organizational Process Assets
Factors Updates

▪ Organizational Process Assets

12.3.1. Control Procurements – Inputs

12.3.1.1. Project management plan
The project management plan describes how the procurement processes will be managed
from developing procurement documentation through contract closure.

12.3.1.2. Procurement documents

Procurement documents contain complete supporting records for administration of the
procurement processes; this includes procurement contract awards and the statement of
work.

12.3.1.3. Agreements
Agreements are understandings between parties, including understanding of the duties of

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each party.

12.3.1.4. Approved change requests

Approved change requests can include modifications to the terms and conditions of the
contract, including the procurement statement of work, pricing, and descriptions of the
products, services, or results to be provided.

12.3.1.5. Work Performance reports

Seller performance-related documentation including technical documentation and
work performance information.

12.3.1.6. Work performance Data

Work performance data includes, the extent to which quality standards are being satisfied,
the costs that have been incurred or committed and identification of the seller invoices that
have been paid.

12.3.2. Control Procurements – Tools and Techniques

12.3.2.1. Contract change control system

A contract change control system defines the process by which the procurement can be
modified.

12.3.2.2. Procurement performance reviews

The objective of procurement performance review is to identify performance successes or
failures, progress with respect to the procurement statement of work and non-compliance to
the agreement that allows buyer to quantify the seller’s demonstrated ability or inability to
perform work. A procurement performance review is a structured review of seller’s progress
to delivery project scope and quality within cost and on schedule as compared to the
agreement.

12.3.2.3. Inspections and audits

Inspections and audits can be conducted during execution pf the project to identify
any weaknesses in the seller’s work process or deliverables.

12.3.2.4. Performance reporting

Performance reporting provides management with information about how effectively the
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seller is achieving the contractual objectives. It is integratedGuide
into project performance
reporting.

12.3.2.5. Payment systems

The payment system includes appropriate reviews and approvals by the project management
team. Payments are made in accordance with the terms of the contract by accounts payable
system of the buyer. For large projects with many or complex procurement requirements, the
project can develop its own payment system.

12.3.2.6. Claims administration

Those requested changes where the buyer and seller cannot agree on compensation for the
change, or cannot agree that a change has even occurred are called as contested changes and
constructive changes. These changes are variously called claims, disputes or appeal. Claims
are documented, processed, monitored and managed without the contract lifecycle usually
in accordance with the terms of the contract.

12.3.2.7. Records management system

A records management system is used by the project manager to manage contract
documentation and records. It specifies the set of processes, related control functions, and
automation tools that are consolidated and combined into a whole as part of the project
management information system.

12.3.3. Control Procurements – Outputs

12.3.3.1. Work Performance Information
Work performance information provides a basis for identification of current or potential
problems to support later claims or new procurements. By reporting on the performance of a
vendor, the organization increases knowledge of the performance of the procurement, which
supports improved forecasting, risk management, and decision making.

12.3.3.2. Change requests

Control Procurements process may result in submitting change requests to the project
management plan, its subsidiary plans, and other components, such as the cost baseline,
schedule baseline, and procurement management plan.

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12.3.3.3. Project management plan updates

Elements of the project management plan that may be updated include Procurement
management plan, Schedule and Cost baselines.

12.3.3.4. Project documentation Update

Project documents that may be updated are procurement documentation with all supporting
schedules, requested unapproved contract changes, and approved change requests.

12.3.3.5. Organizational process assets updates

Elements of the organizational process assets that may be updated include:

→ Correspondence
→ Payment schedules and requests
→ Seller performance evaluation documentation

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Chapter 13: Project Stakeholders

Management

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

The project stakeholder management processes are:

▪ Identify Stakeholder. The process of identifying project stakeholders regularly and analyzing and
documenting relevant information regarding their interest, influence, involvement etc.
▪ Plan Stakeholder Engagement. The process of developing approaches to involve stakeholders based
on their needs, expectation, interest, involvement and potential impact on the project.

▪ Manage Stakeholder Engagement. The process of communicating and working with stakeholders to
meet their needs and expectations, address issues and foster appropriate involvement.
▪ Monitor Stakeholder Engagement. The process of monitoring the project stakeholder relationship
and tailoring strategies for engaging stakeholders.

13.1.1 Identify Stakeholder

Identify Stakeholders is the process of identifying the people, groups, or organizations that could
impact or be impacted by a decision, activity, or outcome of the project, analyzing and
documenting relevant information regarding their interests, involvement, interdependencies,
influence, and potential impact on project success.

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Identify Stakeholder
Inputs Tools and Techniques Outputs

▪ Project Charter ▪ Expert Judgement ▪ Stakeholder Register

▪ Data Gathering ▪ Change Requests
▪ Business Documents
▪ Data Analysis ▪ Project Management Plan
▪ Project Management Plan ▪ Data Representation updates
▪ Project Documents ▪ Meetings ▪ Project Documents updates

▪ Agreements

▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

13.1.1. Identify Stakeholders – Inputs

13.1.1.1. Project charter
The project charter provides key inputs about internal and external stakeholders related with
the project and affected by the result or the execution of 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.

13.1.1.2. Business Documents

In the first iteration of Identify Stakeholder process, the following are the source of information.

▪ Business Case
▪ Benefits Management Plan.
13.1.1.3. Project Management Plan

The project management plan is not available when initiating identify stakeholder, however once it is
developed its components are used as input .

▪ Communication Management Plan

▪ Stakeholder Engagement Plan

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13.1.1.4. Project Documents

Initially documents may not be available to be used for this process, however the Stakeholder
identification happens through out life cycle of the project. So following documents may be used.

▪ Change Log
▪ Issue Log
▪ Requirement Documentation.

13.1.1.5. Agreements
13.1.1.6. Enterprise environmental factors
Organizational culture and structure, global, regional or local trends, and practices, or industry
standards are the environmental factors that can influence the identify stakeholders process.

13.1.1.7. Organizational process assets

Organizational process assets can provide stakeholders register templates and lessons
learned from previous projects.

13.1.2. Identify Stakeholders – Tools and Techniques

13.1.2.1. Expert Judgement
13.1.2.2. Data Gathering

Data gathering techniques that can be used for this process includes but not limited to:

▪ Questionnaire and surveys

▪ Brainstorming

13.1.2.3. Data Analysis

The data analysis techniques used in this process are :

▪ Stakeholder analysis
Stakeholder analysis is systematic gathering and analyzing of information to determine whose
interests should be taken into account in a project. Project manager uses stakeholder analysis
to assess interests, positions, alliances, and importance given to the project by such
stakeholders.

Stakeholder analysis generally follows the steps described below:

→ Identify all potential project stakeholders

→ Analyze the potential impact or support each stakeholder could generate

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→ Assess how key stakeholders are likely to react or respond in various situations

There are multiple classification models used for stakeholders analysis, such as:

→ Grouping the stakeholders based on their power and interest

→ Grouping the stakeholders based on their power and influence
→ Grouping the stakeholders based on their influence and impact
→ Describing classes of stakeholders based on their power, urgency, and legitimacy

▪ Document analysis

13.1.2.4. Data Representation

Data representation techniques used for this process include:

▪ Power/ Interest grid, power/influence grid, Impact/Influence grid. Each of these techniques
group the stakeholders according to their level of authority, level of interest and ability to
influence the outcome of the project.

13.1.2.5. Meetings
Project team can meet to develop an understanding of major project stakeholders, and to
exchange and analyze information about roles, interests, knowledge, and the overall position
of each stakeholder in the project.

13.1.3. Identify Stakeholders – Outputs

13.1.3.1. Stakeholder register

Output of the Identify Stakeholders process is the stakeholder register which contains
following information for each stakeholder in the register:

− Identification information
− Assessment information (Major requirements, main expectations, potential
influence in the project)
− Stakeholder classification (Internal/external, supporter/neutral/resistor, etc.)
The stakeholder register should be consulted and updated on a regular basis, as stakeholders may
change throughout the life cycle of the project.

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13.1.3.2. Change Requests

During the first iteration of this process there will be no changes. However as the project progresses,
new stakeholders will be introduced, existing stakeholders may be exiting and the interest, influence
and involvements of the stakeholders may change. All these changes should be processed through
Integrated change request process and recorded.

13.1.3.3. Project Documents Updates

The project documents that may be updated as a result of this process includes but not limited to:

▪ Assumption Log
▪ Issue Log
▪ Risk Register

13.1.3.4. Project Management Plan Updates

During the first iteration of the process there will not be any updates on the project management
plan or its components. However as the project progresses the following components of the project
management plan may get updated.

▪ Communication Management Plan

▪ Requirements Management plan
▪ Risk Management Plan
▪ Stakeholder Engagement Plan

13.2. Plan Stakeholder Engagement

Plan Stakeholder Management is the process of developing appropriate management strategies to
effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs,
interests, and potential impact on project success.

Plan Stakeholder Engagement

Inputs Tools and Techniques Outputs

▪ Project Charter ▪ Expert Judgement ▪ Stakeholder Engagement Plan

▪ Data Gathering
▪ Project Management Plan
▪ Data Analysis
▪ Project Documents ▪ Decision Making
▪ Agreements ▪ Data Representation
▪ Meetings
▪ Enterprise Environmental
Factors

▪ Organizational Process Assets

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13.2.1. Plan Stakeholder Engagement – Inputs

13.2.1.1. Project Charter

The project charter contains the information on the project purpose, objectives and success criteria,
that can be taken into consideration when planning how to engage stakeholders.

13.2.1.2. Project Management Plan

The components of the project management which can be considered as input to this
process includes but not limited to:

▪ Resource Management Plan. The resource management plan may contain the
information regarding roles and responsibilities of the team and other stakeholders
listed in the stakeholder register.
▪ Communication Management Plan. Communication strategies and their
implementation plan are both input to this process.
▪ Risk Management Plan. The risk register plan may contain the risk threshold or risk
attitude that could be vital information to be used in this process.

13.2.1.3. Project Documents

The project documents that could be input to this process includes but not limited to:

▪ Stakeholder Register. Stakeholder register contains following information for each

stakeholder in the register:
→ Identification information
→ Assessment information (Major requirements, main expectations, potential
influence in the project)
→ Stakeholder classification (Internal/external, supporter/neutral/resistor, etc.) The
stakeholder register provides the information needed to plan appropriate ways to engage
project stakeholders.
▪ Assumption Log
▪ Change Log
▪ Issue Log
▪ Project Schedule
▪ Risk Register

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13.2.1.4. Agreements

When planning for engagement of contractors and suppliers, who are also stakeholders of the
project, coordination is involved with procurement or contracting group in the organization to ensure
the suppliers/contractors are effectively managed.

13.2.1.5. Enterprise environmental factors

All enterprise environmental factors are used as inputs to this process, because the management of
stakeholders should be adapted to the project environment.

13.2.1.6. Organizational process assets

All organizational process assets are used as inputs for the Plan Stakeholder Management
process. Of these, lessons learned database and historical information are of particular
importance, because they provide insights on previousstakeholder management plans and
their effectiveness.

13.2.2. Plan Stakeholder Engagement – Tools and Techniques

13.2.2.1. Expert Judgment
Based on the project objectives, the project manager should apply expert judgment to decide
upon the level of engagement required at each stage of the project from each stakeholder.
Judgment and expertise should be sought from groups or individuals with specialized training
or subject matter expertise or insight into the relationships within the organization.
13.2.2.2. Meetings
Project team can meet to discuss, review or develop appropriate strategies to effectively
manage and engage major project stakeholders.
13.2.2.3. Data Gathering

Data gathering techniques that can be used for this process includes but not limited to benchmarking,
where the stakeholder analysis results are compared with other organization or other projects that
are considered to be world class.

13.2.2.4. Data Analysis

The data analysis techniques that can be used for this process are:

▪ Assumption and Constraint Analysis

▪ Root Cause Analysis. Root cause analysis identifies the underlying reasons for the level of
support of stakeholders in order to select the appropriate strategy to improve their level
of involvement.

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13.2.2.5. Decision Making

The decision making techniques that can be used in this process is prioritizing/ ranking.

13.2.2.6. Data Representation

The data representation technique that may be used in this process includes but not limited to:

▪ Mind Mapping
▪ Stakeholder Engagement Assessment Matrix. The said matrix supports the comparison between
the current engagement level of the key stakeholders vs the desired level of engagement
required for a successful project delivery. The engagement level can be classified as the following
aspects:
o Unaware - Unaware of the project and potential impact.
o Resistant – Aware of the project and impact, but resistant to any change.
o Neutral – Aware of the project but neither supportive or un-supportive.
o Supporting – Aware of the project and potential impact and supportive towards the
project and its outcome.
o Leading - Aware of the project and the potential impact and is actively engaged to
ensure the success of the project.

13.2.2.7. Meetings

13.2.3. Plan Stakeholder Engagement - Outputs

13.2.3.1. Stakeholders Engagement Plan
The stakeholder management plan is a component of the project management plan that
defines the strategies required to effectively engage stakeholders. The stakeholder
engagement plan can provide Stakeholder communication requirements, Information to be
distributed to stakeholders.

13.3. Manage Stakeholder Engagement

Manage Stakeholder Engagement is the process of communicating and working with stakeholders to meet
their needs and expectations, address issues and foster appropriate stakeholder involvement in the project
and through out the project. It allows the project manager to have increased support and minimum
resistance from the stakeholders.

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Manage Stakeholder
Engagement
Inputs Tools and Techniques Outputs

▪ Expert Judgement ▪ Change Requests

▪ Project Management Plan
▪ Communication Skills ▪ Project Management Plan
▪ Project Documents ▪ Interpersonal & Team updates
▪ Enterprise Environmental Skills ▪ Project Documents updates.
Factors ▪ Ground Rules
▪ Meetings
▪ Organizational Process Assets

13.3.1. Manage Stakeholder Engagement – Inputs

13.3.1.1. Project Management Plan

The components of the project management plan which can be considered as an input to this process
includes but not limited to:

▪ Stakeholder Engagement Plan. The stakeholder management plan provides guidance on how
the various stakeholders can be best involved in the project. The stakeholder management
plan provides the understanding of stakeholder’s goals, objectives and level of
communication required during the project.

▪ Communication Management Plan.

▪ Risk Management Plan
▪ Change Management Plan

13.3.1.2. Project Documents

The project documents that can be considered as input to this process includes but not limited to:

▪ 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.

▪ Issue Log

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▪ Lesson Learned Register
▪ Stakeholder Register

13.3.1.3. Enterprise Environmental Factors

The enterprise environmental factors that can influence this process are:

▪ Organization culture
▪ Stakeholder Risk Threshold
▪ Geographic distribution of facilities and resource

13.3.1.4. Organizational process assets

Organizational communication requirements and historical information about previous
projects are some of the key inputs team need to consider while managing the stakeholders
engagement.

13.3.2. Manage Stakeholder Engagement – Tools and Techniques

13.3.2.1. Expert Judgement

13.3.2.2. Communication Skills

There methods of communication identified for each stakeholder in the communication management plan
are applied during this process. The project management team collects feedback to get a feel of stakeholders
reaction to various project management activities. The feedback can be in the form of conversation (formal
or informal), progress reporting, surveys etc.
13.3.2.3. Interpersonal & Team Skills
Interpersonal skills are of paramount important in order to be successful In today’s
competitive, mechanical, fast-phased, demanding environment, coupled with a diverse
workforce, call for significant amounts of people management skills, e.g.:

▪ Conflict Management
▪ Cultural Awareness
▪ Negotiation
▪ Observation & Conversation
▪ Political awareness

13.3.2.4. Ground rules

Ground rules are defined in team charter is a set of expected behavior for project team members as
well as other stakeholders.

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13.3.2.5. Meetings

Meetings are used to discuss and address any issues or concerns regarding stakeholder engagement.
The types of meetings may be listed as:

▪ Decision meetings
▪ Issue Resolution
▪ Lessons Learned and retrospectives
▪ Project kick off,
▪ Sprint planning
▪ Status update

13.3.3. Manage Stakeholder Engagement – Outputs

13.3.3.1. Change Requests

Managing stakeholder engagement may result in a change request to the project
management plan. It may also include corrective or preventive actions to the project itself or to
the interaction with the impacted stakeholders, as appropriate.
13.3.3.2. Project Management Plan Updates
Elements of the project management plan that may be updated is the stakeholder management plan
when new or changed stakeholders requirements are identified.
13.3.3.3. Project Documents Update
Stakeholder register is one of the project documents that may get updated as information on
stakeholders change, when new stakeholders are identified, or if registered stakeholders are
no longer involved in or impacted by the project.

13.4. Monitor Stakeholder Engagement

Control Stakeholder Engagement is the process of monitoring overall project stakeholder relationships and
adjusting strategies and plans for engaging stakeholders.

Monitor Stakeholder
Engagement
Inputs Tools and Techniques Outputs

▪ Data Analysis ▪ Work performance

▪ Project Management Plan
▪ Decision Making Information
▪ Project Documents ▪ Data Representation ▪ Change Requests
▪ Work Performance Data ▪ Communication Skills ▪ Project Management Plan
▪ Interpersonal & Team updates
▪ Enterprise Environmental
Factors Skills ▪ Project Documents updates.
▪ Meetings
▪ Organizational Process Assets

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13.4.1. Monitor Stakeholder Engagement – Inputs

13.4.1.1. Project management plan
Project Management Plan is used to develop the stakeholder management plan. It provides
input important to Monitor Stakeholders Engagement like how work will be executed to
accomplish the project objectives, how human resources requirements will be met, how roles
and responsibilities, reporting relationships, and staffing management will be addressed and
structured for the project. It also provide the techniques for communication among
stakeholders.

13.4.1.2. Work Performance Data

Work performance data is the lowest level of detail coming from raw observations and
measurements of activities while carrying out the project work. Raw data is gathered
throughout the execution phase and passed to the controlling processes of each process area
for detailed analysis. In this case WPD contains which stakeholders are supportive of the
project and their engagement during the project execution.

13.4.1.3. Project Documents

Multiple project documents originating from initiation, planning, execution, or control
processes may be used as supporting inputs for controlling stakeholder engagement.
Following are a few:

▪ Issue Log
▪ Lessons Learned Register
▪ Project Communication
▪ Risk Register
▪ Stakeholder Register

13.4.1.4. Enterprise Environmental Factors

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13.4.1.5. Organizational Process Assets

13.4.2. Control Stakeholder Engagement – Tools and Techniques

13.4.2.1. Data Analysis

The data analysis techniques used in this process may include but not limited to:

▪ Alternative Analysis
▪ Root Cause analysis
▪ Stakeholder Analysis

13.4.2.2. Decision Making

The following decision making techniques can be used in this process:

▪ Multi-criteria decision making.

▪ Voting
13.4.2.3. Data Representation

The data representation techniques used in this process includes but not limited to Stakeholder
engagement matrix.

13.4.2.4. Communication Skills

The two most effective communication skills used in this process are:

▪ Feedback
▪ Presentation. Presentations provide clear information to stakeholders.

13.4.2.5. Interpersonal Team Skills

The Interpersonal team skills used in this process may include:

▪ Active Listening. Active listening is used to reduce misunderstandings and other

miscommunication.
▪ Cultural awareness
▪ Leadership
▪ Networking
▪ Political awareness

13.4.2.6. Meetings
Project team can meet to develop an understanding of major project stakeholders, and to
exchange and analyze information about roles, interests, knowledge, and the overall position
of each stakeholder in the project.
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13.4.3. Monitor Stakeholder Engagement – Outputs

13.4.3.1. Work Performance Information
The work performance information is the performance data collected from various controlling
processes, analyzed in context, and integrated based on relationships across areas.
13.4.3.2. Change requests
Analysis of project performance and interactions with stakeholders often generates change
requests in the form of recommended corrective or preventive actions. These change requests
are processed through the Perform Integrated Change Control process

13.4.3.3. Project management plan updates

As stakeholders engage with the project the overall effectiveness of the stakeholder
management strategy can be evaluated. As needed changes in approach or strategy are
identified, affected sections of the project management plan may need to be updated to
reflect these changes.

13.4.3.4. Project documents updates

Project team may need to update Stakeholder register as stakeholder’s information may change due
to addition of new stakeholders or when existing stakeholders no longer involved in the project. It may
also require updates to issue log as new issues may be identified and current issues may get resolved
during the process.

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