Project Management Basics

• These are concise study notes for exam preparation
• Notes are related to project management

Project Basics

• A project is a temporary endeavor to create a unique product or service
• Example of a project: upgrade invoice system
• Operations are repeatable, ongoing processes
• Example of operations: enter invoices each day
• A program is a group of related projects managed in a coordinated way
• A portfolio is a group of programs, projects, and operations with common goals, but may not be related
• Project management applies knowledge, skills, and tools to increase the chance of project success
• A PM leads the team responsible for achieving project objectives
• PMBOK® Guide is a subset of PM knowledge that is "generally recognized" and "good practice"

Reasons for Project Initiation

• Projects are initiated to meet legal or social requirements, such as adhering to a new law on handling toxic material
• Projects can satisfy stakeholder needs, such as filming a sequel to a popular film
• Projects can implement or change business or tech strategies, such as a new mayor funding a promised road project
• Projects create or improve products or processes, such as using Six Sigma to improve an online order process

Process Groups

• Initiating defines a new project or phase by obtaining authorization to start
• Planning establishes the scope of the project and defines the course of action required
• Executing completes the work defined in the project management plan
• Monitoring & Controlling tracks, reviews, and regulates the progress of the project
• Closing finalizes all activities to formally close the project or phase
• Process groups often overlap and are rarely one-time events

Process Types

• Project processes help manage the project
• Example of project processes: estimating costs, creating schedules
• Product processes create the project's product
• Example of product processes: pouring concrete, painting walls

Project Phases & Lifecycles

• A project phase is a collection of related project activities that results in completed deliverables
• A project phase gate is a review at the end of a phase before moving on to the next
• A project lifecycle is the series of phases that a project goes through
• Predictive ("waterfall") lifecycles have scope, cost, and schedule determined early; changes managed closely
• Iterative lifecycles have scope determined early; time and cost may change; increments add functionality
• Incremental lifecycles have deliverables created through iterations; only complete after the final iteration
• Adaptive lifecycles are agile, iterative, or incremental; scope approved before the start of an iteration
• Hybrid lifecycles combine predictive and agile; fixed reqt's use predictive; evolving reqt's use agile

Project Tailoring

• Each project is unique; not all inputs, outputs, tools, and techniques will be required
• The tailoring process involves selecting those things which are appropriate for a given project

Project Information

• Work performance data is the raw observations and measurements generated during activities
• Example of work performance data: start and finish dates of schedule activities, actual costs, actual durations
• Work performance information is the performance data collected, analyzed, and integrated
• Example of work performance information: status of deliverables and forecasted estimates to complete
• Work performance reports are the physical or electronic representation of work performance info.
• Example of work performance reports: status reports, memos, and dashboards

Organizational Structures

• Organic/Simple Structures have authority and PM role as Little/None
• Resources and controls are by the owner and PM admin is Little/None
• Functional Structures have authority and PM role as little/none
• Resources and controls are by the Func. Mgr. and PM admin is Little/None
• Multi-divisional structures have authority and PM role as Little/None
• Resources and controls are by the Func. Mgr. and PM admin is Little/None
• Matrix-Strong Structures have authority and PM role as Mod./High
• Resources and controls are by the PM and PM admin is Full time
• Matrix-Weak Structures have authority Low and PM role is Part-Time
• With resources and controls by Func, Mgr. and PM admin time is Part-Time
• Matrix-Balanced Structures have authority of Low/Mod. and PM's Role of Part-Time
• Resources Controls have low/mod PM admin of part-time
• Project-Oriented Structures have authority high and PM role Full-Time
• with resources and controls mixed and PM Admin of Full-Time
• Virtual and hybird structures have authority and PM role as mixed
• With resources and controls as mixed and PM admin as mixed also
• Finally PO structures have authority high with PM role as Full-Time
• Resources and Controls as High, PM admin is Full-Time

Project Influences

• Enterprise environmental factors are conditions (external/internal) NOT under control of the team
• Examples (external): marketplace conditions, legal restrictions, cultural influences
• Examples (internal): organizational structure, organizational culture, employee capability
• Organizational process assets are plans, policies, and knowledge bases internal to the organization
• Examples: company hiring policies, schedule templates, financial databases

Project Management Office (PMO) Types

• A project management office (PMO) standardizes project "governance" across an organization
• Supporting PMOs provide consulting by supplying templates, best practices, and coaching/training
• Controlling PMOs provide support and require compliance to standards
• Directive PMOs take control of projects by directly managing them

Project Manager (PM) – “Sphere of Influence"

• Sphere of influence is the areas where a project manager has impact and can affect events
• Project - Leads the team to achieve project objectives and stakeholder expectations
• Organization - Interacts with other PMs; helps address issues of alignment, priorities, resources
• Industry - Stays current with industry trends; identifies where to apply them on current projects
• Professional Discipline - Shares knowledge with others in the profession; continues education

PMI Talent Triangle® - Skills Needed

• Technical project management skills help manage projects, programs, and portfolios
• Leadership skills direct and motivate a team to achieve business goals
• Strategic & Business Management skills in strategy and expertise in their industry/organization

Leadership vs. Management

• Management directs someone to get work done using their position of power
• Managment focuses on systems, relies on power/control, has near-term goals, strives to "do things right"
• Leadership guides and influencing others to accomplish something
• Leadership focuses on relationships, inspires trust, has a long-term vision, strives to "do the right things"

Key Concepts behind Integration Management

• Integration management helps combine and unify other project management processes
• The project charter authorizes the project and provides the PM with authority to use resources
• The Project Management Plan outlines how a project will get done and integrates various plans

Integration Management Processes

• Develop Project Charter (I) authorizes the project and provides the PM with authority
• Develop Project Mgmt. Plan (P) integrates subsidiary plans into a comprehensive project plan
• Direct & Manage Project Work (E) performs project work and implements approved changes
• Manage Project Knowledge (E) uses and creates knowledge to support the project/organization
• Monitor and Control Project Work (M) reviews/reports project progress against objectives
• Perform Integrated Change Control (M) reviews change requests and communicates decisions
• Close Project or Phase (C) formally completes the project or a phase of the project

Change Management

• Integrated Change Control manages changes within the context of the overall project plans
• Integrated Change Control can be conducted at any time and requested by any stakeholder
• The PM has ultimate responsibility for Change Control
• Integrated Change Control should be written and include estimated impacts to cost and schedule
• Before baselines are set, changes do NOT need to undergo formal change control
• Change Control manages changes to documents, deliverables, or baselines of the project
• Configuration Control manages changes to the physical characteristics of a product
• Change Control Board (CCB) is a formal group that reviews changes and communicates decisions

Key Inputs for Developing Project Charter

• Agreements define initial project intentions
• Business Documents help us understand how the project will support business goals/objectives
• The Business Case includes a justification for the project (cost-benefit analysis)
• The Benefits Management Plan outlines how benefits from the project will be captured/sustained

Key Concepts of Scope Management

• Scope management ensures the project accounts for all required work (nothing more)
• On agile projects, scope evolves over time; the project team uses prototypes to refine requirements

Scope Management Processes

• Plan Scope Mgmt. (P) documents how scope will be defined and controlled
• Collect Requirements (P) documents stakeholders needs
• Define Scope (P) develops a detailed project and product description
• Create WBS (P) decomposes project work into smaller components
• Validate Scope (M) formalizes acceptance of completed deliverables
• Control Scope (M) monitors project scope and manages changes to the scope baseline

Collect Requirements – Key Tools

• Brainstorming (data gathering) generates multiple ideas about requirements.
• Interviews (data gathering) is a formal or informal approach to gather information from stakeholders.
• Focus Groups (data gathering) brings together stakeholders and SMEs to learn about their needs.
• Surveys (data gathering) use written questions to gather information from many respondents.
• Benchmarking (data gathering) compares to other organizations to find ways to improve.
• Document Analysis (data analysis) reviews docs to identify information relevant to requirements.
• Voting (decision making) votes on requirements; outcome could be unanimity, majority, plurality.
• Multi-Criteria Decision Analysis (decision making) uses a matrix to evaluate/score requirements.
• Affinity Diagrams (data representation) classifies many requirements into groups for analysis.
• Mind-Mapping (data representation) consolidates/evaluates ideas from brainstorming sessions.
• Nominal Group Technique (interpersonal skills) is a mix of brainstorming/voting; best ideas go forward.
• Observations/Conversations (interpersonal skills) views people in their environment to get ideas.
• Facilitation (interpersonal skills) is a focused workshops with key stakeholders (e.g. used in JAD).
• Context Diagrams is an illustration of scope showing a system and how people interact with it.
• Prototypes are used to gather early feedback on product requirements by sharing a working version

Collect Requirements – Key Outputs

• Requirements Traceability Matrix links requirements to the deliverables that satisfy them
• Requirements Documentation describe requirements; which should be written, clear, traceable.
• Business Requirements address the needs of the overall organization.
• Stakeholder Requirements address the needs of stakeholders (those affected by the project).
• Project Requirements address things the project must meet (e.g. milestone dates).
• Transition Requirements address temporary capabilities (e.g. initial training upon "handoff").
• Quality Requirements address quality expectations (e.g. the use of tests and certifications).
• Solution Requirements addresses project or service functionality.
• Functional behaviors of a product (e.g. process an order).
• Non-Functional conditions that support those behaviors (e.g. security, performance)

Scope Baseline Components

• Project Scope Statement - Description of project scope, deliverables, assumptions, constraints.
• WBS - Decomposition of the total scope of work to be carried out by the project team.
• Work Package - The lowest level of the WBS; includes a unique ID; is part of a control account.
• Planning Package - Above the work package in a WBS, but below a control account (i.e. between).
• WBS Dictionary - Detailed information about WBS components.

Project Schedule Management Processes

• Plan Schedule Mgmt. (P) documents how the schedule will be developed and controlled
• Define Activities (P) identify the steps required to produce project deliverables
• Sequence Activities (P) identify relationships (or order) of project activities
• Estimate Activity Durations (P) approximate the number of work periods to complete activities
• Develop Schedule (P) analyze activities sequences and estimates to create the schedule
• Control Schedule (M) monitor activity progress; managing changes to the schedule baseline

Define Activities – Key Outputs

• Activity List is a list of activities with identifiers and scope; in agile, this is updated periodically
• Activity Attributes have more info about activities (e.g. identifiers, predecessors, leads/lags, etc.)
• Milestone List is a list of major points in the project; indicates whether they are mandatory/optional

Sequence Activities – Key Concepts

• Sequence Activities document activity relationships. (Not everything can be at the same time!)
• Predecessor is a task that comes before another
• Successor is a task that comes after another

Sequence Activities – Key Tools

• Dependency Determination & Integration
• Mandatory Dependencies are legally required or inherent in the nature of the work
• Discretionary Dependencies are based on knowledge of best practices
• External Dependencies are outside the project team's control
• Internal Dependencies are inside the project team's control
• Precedence Diagramming Method (PDM)
• Finish-to-Start (FS) - A predecessor must finish before a successor can start
• Finish-to-Finish (FF) - A predecessor must finish before a successor can finish
• Start-to-Start (SS) - A predecessor must start before a successor can start
• Start-to-Finish (SF) - A predecessor must start before a successor can finish
• Leads & Lags
• Lead is the amount of time that a successor activity can be advanced (start early)
• Lag is the amount of time a successor activity will be delayed

Develop Schedule – Key Tools

• Schedule Network Analysis identifies early and late start/finish dates
• Critical Path Method estimates minimum project duration and amount of scheduling flexibility
• Resource Optimization adjusts activities so resources are appropriately allocated
• Schedule Compression shortens schedule without reducing scope
• Agile Release Planning is a timeline of the release schedule based on the product roadmap/vision

Develop Schedule – Key Outputs

• Schedule Baseline is the approved version of the schedule under change control compared to actuals
• Project Schedule includes linked activities with planned dates, durations, milestones, resources
• Schedule Data supports detail for the schedule (e.g. alternative schedule, cash-flow projections)
• Project Calendars identifies the project's working days and shifts

Estimate Activity Durations – Estimating Techniques

• Bottom-Up Estimating aggregates estimates of lower-level components of the WBS
• Analogous Estimating uses historical data from a similar project or activity
• Parametric Estimating uses an algorithm built on historical data to generate an estimate
• Three-Point Estimating averages optimistic, pessimistic, and most likely estimates

Estimate Activity Durations – Key Outputs

• Duration Estimates estimate number of time periods to complete the work
• Basis of Estimates details supporting the duration estimates (e.g. method, assumptions, etc.)

Project Cost Management Processes

• Plan Cost Management is documenting how to estimate and control costs
• Estimate Costs calculates the finances needed to complete project activities
• Determine Budget sums the costs of individual activities to generate the cost baseline
• Control Costs monitors project costs and manages changes to the cost baseline

Estimate Costs – Key Outputs

• Cost Estimates are probable costs required to complete project work (labor, materials, etc.)
• Basis of Estimates details supporting the cost estimates (e.g. method, assumptions, etc.)

Determine Budget – Key Outputs

• Cost Baseline is the approved budget and excludes management reserves compared to the actuals
• Project Funding Requirements outlines when costs must be paid (as funding may be incremental)

Determine Budget - Key Tools

• Cost Aggregation adds estimates for work packages, then control accounts, and then the project
• Data Analysis may include using "reserve analysis" (i.e. adding funds for unexpected events)
• Historical Information Review reviews historical information to help estimate total project cost
• Funding Limit Reconciliation determines if funding will be available when expenses must be paid
• Financing acquires funds for the project, which may come from external sources

Control Costs – Data Analysis

• Earned Value Analysis (EVA)
• Planned Value (PV) is the authorized budget assigned to an activity, not including reserve
• Earned Value (EV) is the budget associated with the work that has been completed ("earned")
• Actual Cost (AC) is the total cost incurred to accomplish the work that EV measured
• Variance Analysis
• Schedule Variance (SV) = (EV - PV). The amount you are ahead or behind schedule
• Cost Variance (CV) = (EV - AC). The amount you are under or over budget
• Schedule Perf. Index (SPI) = (EV / PV). Your schedule efficiency ratio
• Cost Perf. Index (CPI) = (EV / AC) Your cost efficiency ratio
• Trend Analysis
• Budget at Completion (BAC) is the total planned value (PV) for the project
• Estimate to Completion (ETC) is the forecasted amount needed to finish remaining project work
• EAC=AC+ETC... EAC=AC+(BAC-EV)... EAC=BAC/CPI... EAC=AC+[(BAC-EV)/(CPIxSPI)]
• To-Complete Performance Index (TCPI)
• The cost performance (CPI) needed to meet your goal
• Considers the cost to finish the outstanding work and your remaining budget

Project Quality Management Processes

• Plan Quality Mgmt. (P) identifies quality requirements and documenting how to comply with them
• Manage Quality (E) converts the quality mgmt. plan into actionable quality activities
• Control Quality (M) monitors outcomes of quality activities to evaluate performance.

Trends in Quality Management

• Customer Satisfaction meets requirements and fitness for use (satisfies the real need)
• Continual Improvement uses the PDCA (plan-do-check-act) cycle to improve our processes
• Management Responsibility involves providing the necessary resources
• Mutually Beneficial Partnerships with Suppliers helps build relations with suppliers

"Quality Planning" - Cost of Quality

• Cost of Quality addresses cases of poor quality while ensuring quality
• Cost of Conformance avoids failures during the project
• Prevention designs builds quality products with exaples like trining and documentation
• Appraisal assesses the quality of product like inspection
• Cost of Non-Conformance fixes failures
• Internal Failure corrects Errors found by the project team like rework
• External Failure corrects Errors found by the customer like warranty recalls

"Plan Quality Management" – Key Outputs

• Quality Management Plan describes how an organization's quality policies will be implemented
• Quality Metrics describes a project or product attribute and how to measure it

Quality Management Tools & Data Representation

• Affinity Diagram is a mind-mapping technique which is used to organize causes of defects into categories
• Cause and Effect Diagram helps to organize and display the origins of a quality problem
• Flowchart depicts the sequence of process steps that results in a defect.
• Logical Data Model shows how data flows in a company; helps diagnose data quality issues.
• Histogram displays data about defects in a statistical distribution.
• Matrix Diagram Shows the strength of relationships that exist between variables.
• Scatter Diagrams displays how the amount of defects are related to other variables.
• Control Chart displays process data over time and against control limits (+/- 3 std. deviations).
• Benchmarking compares our organization with others to identify areas for improvement.
• Check Sheets are used for counting when gathering data about quality problems.
• Statistical Sampling collects data about a portion of the population for use in quality analysis.
• Questionnaires/Surveys gathers feedback about customer satisfaction.
• Data Analysis
• Cost of Quality ensures good quality and address cases of poor quality.
• Cost-Benefit Analysis compares the cost of quality against the benefit (e.g. less rework).
• Root Cause Analysis (RCA) works to determine the underlying causes of an issue.
• Process Analysis identifies opportunities for process improvements.
• Audits check if the project is following policy/process and is usually performed by external team.
• Design for X (DfX) optimizes a specific aspect of a product's design (e.g. reliability, safety, etc.).
• Inspection determines if work conforms to documented standards.
• Testing & Product Evaluations test a product to find errors or defects.

Project Resource Management

• Plan Resource Mgmt. (P) documents how to estimate, acquire, and manage project resources.
• Estimate Activity Resources (P) estimates the labor/materials needed to complete the project.
• Acquire Resources (E) obtains the labor/materials to complete the project.
• Develop Team (E) Improves team skills and relations to enhance project performance.
• Manage Team (E) Tracks team member performance, providing feedback, and resolving issues.
• Control Resources (M) monitors planned versus actual resource usage.

Plan Resource Management" – Key Tools

• Organizational Theory explains how people, teams, and organizational units behave. Organizational Chart (hierarchical) - Shows positions graphically: the OBS or RBS Responsibility Chart (matrix) - Shows resources assigned to work packages: the RACI..
• Role Description (text) provides Descriptions also of detailed authority, qualifications, responsibilities

Plan Resource Management" – Key Outputs

• Resource Management Plan manages human resources
• This consists of what and how to identify, distribute train etc resources
• Team Charter outlines values and communication guidelines

Estimate Activity Resources" - Key Outputs

• Resource Requirements are the types/quantities of resources required for each activity.
• Resource Breakdown Structure (RBS) is a hierarchical view of resources by category/type.
• Basis of Estimates details supporting the resource estimates. (e.g. method, assumptions, etc.)

Acquire Resources" – Key Tools

• Pre-Assignment occurs when physical resources or team members are selected in advance.
• Virtual Teams are Teams with little or no face-to-face interaction.
• Multi-Criteria Decision Analysis consists of ranking team members by experience
• Negotiation includes negotiations with managers to retrieve resources

Acquire Resources" – Key Outputs

• Physical Resource Assignments contains the description of materials that are needed
• Project Team Assignments outlines who will do what on the project
• Resource Calendar shows when the resources are present

Develop Team" – Key Tools

• Co-Location - Team positioned close to each other can improve communication
• Virtual Teams Teams with little or no face-to-face interaction like video conferences
• Interpersonal Skills is the ability to persuade and influence
• Training and development improves the skills of the team, class instructions
• Individual & Team Assessments assesses the teams strengths

Stages of Team Development

• Forming occurs when team members are introduced to the project
• Strorming comes after after a team is set and conflicts arise
• Norming is the step in where the team works in cohesion
• Performing is where the team works collabrotivley
• Adjouring is where the team ends the project

Conflict Resolution Techniques

• Withdraw or Avoid - Evade or delay the conflict
• Smooth/Accommodate Focus on areas of agreement
• Compromise/Reconcile Seek a solution that only partially satisfies all parties
• Force/Direct - Push a viewpoint on another typically by using a position of power
• Collaborate/Problem Solve Work together

Project Communications Management Processes

• Plan Communications Mgmt. (P) develops on needs and strategies
• Manage Communications (E) develops and and sets up communication channels
• Monitor Communications (M) Ensures needs are constantly being met

Communication Dimensions

• Internal - Communicates inside
• External communicates outside
• Formal reports
• informal emails
• horizontal peer level
• vertical up and down
• unofficial information

Communcation Methods

• Push Communication sending messages Pull Communication - receiving messages
• Interactive Communication bi-directional

Communications Management Plan - Key Components

What needs to be communicated (i.e. status, risks), also why and when (e.g. each Friday during the project) Who will authorize the distribution, and who will communicate the information Who will receive the information (e.g. the sponsor, internal stakeholders, the public, etc.). How will the information be sent (e.g. e-mail, conference call) What resources will be allocated or communication activities How will be an issue be escalated, if one arises

Communication Model Steps

Encode - A sender translates (encodes) a message into language. Transmit - The encoded message is sent (by the sender) using a communication medium Noise - Various factors may compromise the message (e.g. distance, cultural differences, etc.) Decode - The receiver translates the encoded message into meaningful thoughts Acknowledge - The receiver may acknowledge that they received the message Feedback/Response - The receiver may encode a response and transmit it to the sender

Communication Channels Calculation

of stakeholders = n

of communication channels = n(n-1)/2

Project Risk Management

Plan Risk Mgmt. (P) defines how to conduct risk mgmt. on the project. Identify Risks (P) detects risks that affect the project. Perform Qualitative Risk Analysis (P) Prioritizes risks by evaluating their probability and impact Perform Quantitative Risk Analysis (P) Numerically analyzes the effect of risk Plan Risk Responses (P) - Defines strategies and reactions Implement Risk Responses (E) implements planned response Monitor Risks (M) constantly check existing ones.

Key Concepts for Risk

Risk is an uncertain event that if occurs, has a positive or negative effect on the project Probability is How likely? Impact what happens if there is a risk Risk Register consists of risks. updated reguarly

Identify Risks” – Tools

Data Gathering "Brainstorming is a General technique "Checklists is used to determine risks on past projects "Interviewing - experts in the field

Assumption Analysis - Identifies risks "PERFORM QUANTITATIVE RISK ANALYSIS” – “DATA ANALYSIS” TOOLS Simulations - Simulates ("iterates") the effect of risks on project outcomes (Monte Carlo) Sensitivity Analysis assesses which risk could have the biggest impact on project outcomes Decision Tree Analysis shows paths Influence Diagrams

Risk Responeses

• Avoid is where you terminate a threat
• Transfer is where you deflect it someone else
• Mitigate - is where you reduce th likeliehood
• Accept - act iff action occurs
• Escalate comunicate

Project Procurement Management

• Plan Procurement Mgmt. (P) document the procurement and sellers
• Conduct Procurements (E) selecting sellers and awarding them a contract.
• Control Procurements (M) oversees the relationship

Management" - Key Outputs

• Procurement Management Plan
• Procurement describes contract
• Procurement Statement of Work (SOW)
• documents

Selection

• used to score

Control Procurements" – Tools

• Data Analysis

Contract Types

Fixed Price Firm Fixed Price (FFP) - The price is determined at the start and is not subject to change Fixed Price Incentive Fee (FPIF) Bonuses may be given if certain objectives are achieved Fixed Price w/ Economic Price Adjustment (FP-EPA) - May adjust based on indices

Reimbursable

• Cost Plus Fixed Fee (CFPP) seller reimbursed, given payment
• Cost Plus Incentive Fee the possibility for Bonuses
• Time (T&M) may fully denifed scope may be open

Key Concepts behind Stakeholder Management

• Project Stakeholders involve affected persons
• Stakeholder Register documents about stakeholders
• Assessment of requiremts
• stakeholder types

Steps

Identifying determining Stakeholder engaging Managing engaging Monitoring engainging

Stakeholder Classification Models

Power/Interest Power/Influence Grid Influence/Impact - influence

• Stakeholder Cube combines models
• Salience urgency

Process Group Tips

Initiating includes 2 processes

• Planning is the estimation part Managing conduct aquiring Monitor measures
• itto output for inputs follow same

Patterns to remember

• itto often same
• one can lead to another
• outputs become new inputs