Project Management Midterm Reviewer PDF

CHAPTER 1: PROJECT MANAGEMENT 1.2 What is a Project? Project= temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end. -The end is reached when the project's objectives have been achieved or when the proje...

CHAPTER 1: PROJECT MANAGEMENT 1.2 What is a Project? Project= temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end. -The end is reached when the project's objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists. -Temporary does not generally apply to the product, service, or result created by the project; most projects are undertaken to create a lasting outcome. -Projects can also have social, economic, and environmental impacts that far outlast the projects themselves. -Every project creates a unique product, service, or result. Although repetitive elements may be present in some project deliverables, this repetition does not change the fundamental uniqueness of the project work. For example, office buildings are constructed with the same or similar materials or by the same team, but each location is unique with a different design, different circumstances, different contractors, and so on. -An ongoing work effort is generally a repetitive process because it follows an organization's existing procedures. In contrast, because of the unique nature of projects, there may be uncertainties about the products, services, or results that the project creates. -Project tasks can be new to a project team, which necessitates more dedicated planning than other routine work. In addition, projects are undertaken at all organizational levels. A project can involve a single person, a single organizational unit, or multiple organizational units. A project can create: A product that can be either a component of another item or an end item in itself, A capability to perform a service (e.g., a business function that supports production or distribution), or A result such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend is present or a new process will benefit society). Examples of projects include, but are not limited to: -Developing a new product or service, -Effecting a change in the structure, staffing, or style of an organization, -Developing or acquiring a new or modified information system, Constructing a building or infrastructure, or -Implementing a new business process or procedure. 1.3 What is Project Management? 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 appropriate application and integration of the 42 logically grouped project management processes comprising the 5 Process Groups. These 5 Process Groups are: Initiating,That time in the project lifecycle when the project idea is defined, evaluated and then authorized. Planning,The phase in project management in which you determine the actual steps to complete a project Executing. The stage of the project where everything your team has planned is put into action.  Monitoring and Controlling. The process of regularly observing and tracking the progress of your project and making any necessary proactive corrections. Closing. Final phase of the project lifecycle Managing a project typically includes: -Identifying requirements, -Addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and carried out. Balancing the competing project constraints including, but not limited to: o Scope, o Quality, o Schedule, o Budget, o Resources, and o Risk. -The specific project will influence the constraints on which the project manager needs to focus. -The relationship among these factors is such that if any one factor changes, at least one other factor is likely to be affected. For example, if the schedule is shortened, often the budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or quality may be reduced to deliver a product in less time for the same budget. Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. Changing the project requirements may create additional risks. The project team must be able to assess the situation and balance the demands in order to deliver a successful project. Because of the potential for change, the project management plan is iterative and goes through progressive elaboration throughout the project's life cycle. Progressive elaboration involves continuously improving and detailing a plan as more-detailed and specific information and more accurate estimates become available. Progressive elaboration allows a project management team to manage to a greater level of detail as the project evolves. 1.4 Relationships Among Project Management, Program Management, and Portfolio Management -Organizational planning impacts the projects by means of project prioritization based on risk, funding, and the organization's strategic plan. Organizational planning can direct the funding and support for the component projects on the basis of risk categories, specific lines of business, or general types of projects, such as infrastructure and internal process improvement. A Project is a temporary endeavor undertaken by a company or organization (such as the creation of a new product, service, or result). A Program is a group of projects that are similar or related to one another and that are often managed as a group instead of independently. A Project manager works to deliver a project efficiently and reliably Program and Portfolio managers work together to ensure the benefits desired / required by the organization are effectively and efficiently delivered Program and project managers work together to define viable strategies for pursuing program goal. Portfolio managers coordinate between various programs to ensure that things stay on track and that the organization is meeting its overarching strategic initiatives Interactions between program and project management tend to be iterative and cyclical  During program definition phase, information about intended benefits, goals, flows to projects from program; information about strategies, objectives, needs, constraints flows back to program. During program's delivery phase, information about issues, risk, progress dependencies, outputs flow from components projects to program A program manager may influence project manager ' s approach for managing projects 1.4.1 Portfolio Management -Portfolio refers to a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of "maximizing the return on its investments" may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program. is a collection of projects and programs within an organization. These initiatives can be related or unrelated to each other, but they are managed as a group to achieve strategic objectives Portfolio management refers to the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives. -focuses on ensuring that projects and programs are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies. Project portfolio management gives organizations and managers the ability to see the big picture. Executives – know what project managers to reach Project Managers – easy access to team members Team Members – improved communication with leadership and other teammates Stakeholders – kept in the loop with reliable and consistent feedback PROJECT PORTFOLIO MANAGEMENT BENEFITS >IMPROVED PROJECT SELECTION- PPM facilitates an improved project selection process by incorporating reliable data, scoring models, and other quantitative and qualitative approaches to ensure that projects are selected based on relevant criteria >MINIMIZED ORGANIZATION RISK- Correctly implemented, project portfolio management minimizes project risk, allowing organizations to refine their portfolios to include only the projects that offer enough value to offset potential risk. >REDUCED PROJECT DELIVERY TIMES- PPM incorporates intuitive, real-time reporting, so that managers can identify deviations, bottlenecks, and other issues that may slow or derail projects. They can then take corrective actions immediately, putting the project back on track before it can fall too far behind to be salvaged. >INCREASED ROI ( RETURN OF INVESTMENT)- Return on Investment (ROI) has always been a trusted metric by which to gauge project success, and PPM is designed to ensure that the projects businesses pursue and include in their portfolios are those that will generate a significant positive return on the money and resources invested. PROCESS 1.Identify the scope of your business and portfolio 2.Manage project ideas 3.Prioritize projects 4.Validate project feasibility and initiate projects 5.Manage and monitor the portfolio 1.4.2 Program Management -Program -defined as a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. -Programs may include elements of related work outside the scope of the discrete projects in the program. -A project may or may not be part of a program but a program will always have projects. -Program management -centralized coordinated management of a program to achieve the program's strategic objectives and benefits. Projects within a program are related through the common outcome or collective capability. If the relationship between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program. -Program management focuses on the project interdependencies and helps to determine the optimal approach for managing them. Actions related to these interdependencies may include: -Resolving resource constraints and/or conflicts that affect multiple projects within the program; -Aligning organizational/strategic direction that affects project and program goals and objectives; and -Resolving issues and change management within a shared governance structure. An example of a program would be a new communications satellite system with projects for design of the satellite and of the ground stations, construction of each, integration of the system, and launch of the satellite. 1.4.3 Projects and Strategic Planning Projects are often utilized as a means of achieving an organization's strategic plan. -typically authorized as a result of one or more of the following strategic considerations: Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages), Strategic opportunity/business need (e.g., a training company authorizing a project to create a new course to increase its revenues), Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park), Technological advance (e.g., an electronics firm authorizing a new project to develop a faster, cheaper, and smaller laptop after advances in computer memory and electronics technology), and Legal requirements (e.g., a chemical manufacturer authorizes a project to establish guidelines for the handling of a new toxic material). -Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Although a group of projects within a program can have discrete benefits, they can also contribute to the benefits of the program, to the objectives of the portfolio, and to the strategic plan of the organization. -Organizations manage portfolios based on their strategic plan, which may dictate a hierarchy to the portfolio, program, or projects involved. -One goal of portfolio management is to maximize the value of the portfolio by the careful examination of its components-the constituent programs, projects, and other related work. Those components contributing the least to the portfolio's strategic objectives may be excluded. In this way, an organization's strategic plan becomes the primary factor guiding investments in projects. At the same time, projects provide feedback to programs and portfolios by means of status reports and change requests that may impact other projects, programs, or portfolios. The needs of the projects, including the resource needs, are rolled up and communicated back to the portfolio level, which in turn sets the direction for organizational planning. 1.4.4 Project Management Office Project management office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. -The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. -The projects supported or administered by the PMO may not be related, other than by being managed together. The specific form, function, and structure of a PMO is dependent upon the needs of the organization that it supports. -A PMO may be delegated the authority to act as an integral stakeholder and a key decision maker during the beginning of each project, to make recommendations, or to terminate projects or take other actions as required to keep business objectives consistent. In addition, the PMO may be involved in the selection, management, and deployment of shared or dedicated project resources. A primary function of a PMO is to support project managers in a variety of ways which may include, but are not limited to: -Managing shared resources across all projects administered by the PMO; -Identifying and developing project management methodology, best practices, and standards; -Coaching, mentoring, training, and oversight; -Monitoring compliance with project management standards, policies, procedures, and templates via project audits; -Developing and managing project policies, procedures, templates, and other shared documentation (organizational process assets); and -Coordinating communication across projects. Project managers and PMOS pursue different objectives and, as such, are driven by different requirements. All of these efforts, however, are aligned with the strategic needs of the organization. Differences between the role of project managers and a PMO may include the following: The project manager focuses on the specified project objectives, while the PMO manages major program scope changes which may be seen as potential opportunities to better achieve business objectives. The project manager controls the assigned project resources to best meet project objectives while the PMO optimizes the use of shared organizational resources across all projects. The project manager manages the constraints (scope, schedule, cost, and quality, etc.) of the individual projects while the PMO manages the methodologies, standards, overall risk/opportunity, and interdependencies among projects at the enterprise level. 1.5 Project Management and Operations Management OPERATIONS MANAGEMENT - refers to the administration of business practices aimed at ensuring efficient production and delivery of goods and services. It involves planning, organizing, and supervising daily business operations to optimize performance, reduce costs, and improve customer satisfaction. OPERATIONS MANAGER: Focus on managing processes, resources, and teams to maintain the efficiency and quality of ongoing activities within an organization EXAMPLE OF DIFFERENT OPERATION INCLUDE Production operations: : The area of management focused on overseeing the processes involved in the productions of goods and services.. It involves planning, organizing, directing, and controlling all aspects of production to ensure efficient use of resources and meeting quality standards Manufacturing Operations: The structure and system that produces a product that can be sold to a customer. The process includes assessing what customers want, obtaining materials and manufacturing a product. Accounting Operations: Involves overseeing and managing the accounting functions within an organization to ensure financial processes run smoothly, efficiently, and in compliance with regulations. Operations are an organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service. -projects can help achieve the organizational goals when they are aligned with the organization's strategy. Organizations sometimes change their operations, products, or systems by creating strategic business initiatives. Projects require project management while operations require business process management or operations management. Projects can intersect with operations at various points during the product life cycle, such as: At each closeout phase; When developing a new product, upgrading a product, or expanding outputs; Improvement of operations or the product development process; or Until the divestment of the operations at the end of the product life cycle. -At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start. Operations are permanent endeavors that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors. HOW PROJECTS INTERSECT WITH OPERATIONS ? AT EACH CLOSEOUT PHASE: Projects often go through multiple phases, such as initiation, planning, execution, and closing. Each project phase can influence ongoing operations, especially during closeout, when the results or deliverables are handed off to the operations team DEVELOPING A NEW PRODUCT,UPGRADING A PRODUCT, OR EXPANDING OUTPUTS: When a new product is developed or an existing product is upgraded, it’ s typically done through a project. Operations are impacted when this new or upgraded product enters production IMPROVEMENT OF OPERATIONS OR THE PRODUCT DEVELOPMENT PROCESS: Projects are often initiated to improve operations—whether through process enhancements, automation, or efficiency gains. Operations managers may identify inefficiencies in current processes and start projects aimed at addressing these issues DIVESTMENT OF THE OPERATIONS AT THE END OF THE PRODUCT LIFECYCLE: As a product reaches the end of its life cycle, a project might be undertaken to phase out the product, close down production lines, or even sell or divest operations related to that product. Operations management ensures that the wind-down or divestment is handled efficiently. 1.6 Role of a Project Manager The project manager is the person assigned by the performing organization to achieve the project objectives. -The role of a project manager is distinct from a functional manager or operations manager. Typically the functional manager is focused on providing management oversight for an administrative area, and operations managers are responsible for a facet of the core business. -Project manager may report to a functional manager. In other cases, a project manager may be one of several project managers who report to a portfolio or program manager that is ultimately responsible for enterprise-wide projects. In this type of structure, the project manager works closely with the portfolio or program manager to achieve the project objectives and to ensure the project plan aligns with the overarching program plan. -Effective project management requires understanding and applying recognized knowledge, tools, and techniques. Effective project management requires that the project manager possess the following characteristics:.1 Knowledge. This refers to what the project manager knows about project management..2 Performance. This refers to what the project manager is able to do or accomplish while applying their project management knowledge..3 Personal. This refers to how the project manager behaves when performing the project or related activity. Personal effectiveness encompasses attitudes, core personality characteristics and leadership ability to guide the project team while achieving project objectives and balancing the project constraints. 1.7 Project Management Body of Knowledge PMBOK® Guide -standard for managing most projects most of the time across many types of industries. This standard describes the project management processes, tools, and techniques used to manage a project toward a successful outcome. -This standard is unique to the project management field and has interrelationships to other project management disciplines such as program management and portfolio management. -The PMBOK is a compilation of the processes, best practices, terminologies, and guidelines accepted as standard practice within the project management industry -The Project Management Body of Knowledge (PMBOK) is a document containing standard terminology, best practices and process guidelines around project management as defined by the Project Management Institute (PMI) The majority of the guide covers topics specific to project management, but does mention broader themes that overlap such as budgeting, planning, financial forecasting, staffing, organizational behavior and management science. -Project management standards do not address all details of every topic. This standard is limited to single projects and the project management processes that are generally recognized as good practice. Other standards may be consulted for additional information on the broader context in which projects are accomplished. Management of programs is addressed in The Standard for Program Management, and management of portfolios is addressed in The Standard for Portfolio Management. Examination of an enterprise's project management process capabilities is addressed in Organizational Project Management Maturity Model (OPM3®). 1.8 Enterprise Environmental Factors -Enterprise environmental factors refer to both internal and external environmental factors that surround or influence a project's success. These factors may come from any or all of the enterprises involved in the project. Enterprise environmental factors may enhance or constrain project management options and may have a positive or negative influence on the outcome. They are considered as inputs to most planning processes. Enterprise environmental factors include, but are not limited to: Organizational culture, structure, and processes; Government or industry standards (e.g., regulatory agency regulations, codes of conduct, product standards, quality standards, and workmanship standards); Infrastructure (e.g., existing facilities and capital equipment); -Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, law, contracting, and purchasing); Personnel administration (e.g., staffing and retention guidelines, employee performance reviews and training records, overtime policy, and time tracking); Company work authorization systems; Marketplace conditions; Stakeholder risk tolerances; Political climate; -Organization's established communications channels; Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk databases); and Project management information systems (e.g., an automated tool, such as a scheduling software tool, a configuration management system, an information collection and distribution system, or web interfaces to other online automated systems). CHAPTER 2: PROJECT LIFE CYCLE AND ORGANIZATION -Projects and project management take place in an environment that is broader than that of the project itself. 2.1 The Project Life Cycle-Overview Project life cycle -a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization or organizations involved in the project, the nature of the project itself, and its area of application. -A life cycle can be documented with a methodology. The project life cycle can be determined or shaped by the unique aspects of the organization, industry or technology employed. While every project has a definite start and a definite end, the specific deliverables and activities that take place in between will vary widely with the project. The life cycle provides the basic framework for managing the project regardless of the specific work involved. -The project Life Cycle is the process of executing a successful project headed by project managers. The life cycle provides the basic framework for managing projects, regardless of the specific work involved. -Project Life Cycle is the sequence of phases that a project goes through from its beginning until the end of the project. The phases and sequence of the project is determined by the management and other different factors like the needs of the organization, the people involved in the project, the nature of the project, and its application. PURPOSE OF PROJ MAN LIFE CYCLE A structured way to create, execute, and finish a project. Clear phases, milestones, and deliverables Better communication among stakeholders Risk management Quality control 2.1.1 Characteristics of the Project Life Cycle Starting the project ( initiating) In this phase, the initiation of the project begins. This is where you collect all the necessary information from the stakeholders. This phase defines the project's objectives, mission, and vision. Organizing and preparing ( planning)  planning phase which is the foundation for the project. This is where you start to plan and assess all the details for the projects including the project plan, budget, resources and equipment, managing risk, setting quality targets, as well as assigning people to their post. Carrying out the project work ( execution) Phase 3 is the execution or implementation for getting the work done. This is where you put the plan into action and keep them on track. During this time the project moves to progress and improve to achieve the project's objectives. Closing the project ( closure) the concluding phase of the project. In this part project managers take on releasing the finished products or service to their respective owner or company. -This generic life cycle structure is often referred to when communicating with upper management or other entities less familiar with the details of the project. This high-level view can provide a common frame of reference for comparing projects-even if they are dissimilar in nature. The generic life cycle structure generally displays the following characteristics: Cost and staffing levels are low at the start, peak as the work is carried out, and drop rapidly as the project draws to a close. The dashed line in Figure 2-1 illustrates this typical pattern. Stakeholder influences, risk, and uncertainty, (as illustrated in Figure 2-2) are greatest at the start of the project. These factors decrease over the life of the project.Stakeholder influence, risk, and uncertainty is at peak in the beginning of the project and decreases over time. Ability to influence the final characteristics of the project's product, without significantly impacting cost, is highest at the start of the project and decreases as the project progresses towards completion. Figure 2-2 illustrates the idea that the cost of changes and correcting errors typically increases substantially as the project approaches completion. Ability to influence the final characteristics of the project’s product, without impacting the cost drastically is at peak in the start of the project and decreases as the project progresses towards the completion. 2.1.2 Product vs. Project Life Cycle Relationships -The last product life cycle phase for a product is generally the product's retirement. Project life cycles occur in one or more phases of a product life cycle. -All projects have a purpose or objective, but in those cases where the objective is a service or result, there may be a life cycle for the service or result, not a product life cycle. -When the output of the project is related to a product, there are many possible relationships. For instance, the development of a new product could be a project on its own. -Many facets of the product life cycle lend themselves to being run as projects -Since one product may have many projects associated with it, additional efficiencies may be gained by managing all related projects collectively. For instance, a number of separate projects may be related to the development of a new automobile. Each project may be distinct, but still contributes a key deliverable necessary to bring the automobile to market. Oversight of all projects by a higher authority could significantly increase the likelihood of success. Product Life Cycle Project Life Cycle Purpose The product life cycle consists of It provides a structured approach to generally sequential, non-overlapping managing and executing a product phases determined by the temporary endeavor (a project) to  manufacturing and control needs of the create a unique product, service, or organization. result. Duration Can last several years or even decades, Has a finite duration with a defined depending on the product's market start and end. success, evolution, and lifespan. Phases Development Initiation Introduction Planning Growth Execution Maturity Monitoring and Controlling Decline Closure Output The output is the product itself and its The output is a unique deliverable or market performance over time. result achieved upon project completion. Product vs. Project Life Cycle Relationships 1. Projects Support Product Development and Management An existing product might benefit from a project to add new functions or features, or a project might be created to develop a new model. 0. Projects Adapt to Product Life Cycle Needs 0. Timing and duration 0. Dependency The success of a product frequently depends on the effective execution of projects. 0. Continuous Feedback 2.1.3 Project Phases -Project phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable. -Project phases are typically completed sequentially, but can overlap in some project situations. The high level nature of project phases makes them an element of the project life cycle. A project phase is not a Project Management Process Group. -The phase structure allows the project to be segmented into logical subsets for ease of management, planning, and control. The number of phases, the need for phases, and the degree of control applied depend on the size, complexity, and potential impact of the project. - Project management phases represent the different steps you take to go from beginning to completion. Understanding them will help you create more accurate project plans, estimate more realistic timelines, and conquer projects in a strategic and organized way. -Project phases are divisions within a project where extra control is needed to effectively manage the completion of a major deliverable. Project phases are typically completed sequentially, but can overlap in some project situations. Regardless of the number of phases comprising a project, all phases have similar characteristics.  When phases are sequential, the close of a phase ends with some form of transfer or handoff of the work product produced as the phase deliverable. This phase end represents a natural point to reassess the effort underway and to change or terminate the project if necessary. These points are referred to as phase exits, milestones, phase gates, decision gates, stage gates, or kill points. The work has a distinct focus that differs from any other phase. This often involves different organizations and different skill sets. The primary deliverable or objective of the phase requires an extra degree of control to be successfully achieved. The repetition of processes across all five Process Groups, as described in Chapter 3, provides that additional degree of control, and defines the boundaries of the phase. The project management life cycle is usually broken down into four phases: initiation, planning, execution, and closure. These phases make up the path that takes your project from the beginning to the end. Some may also include a fifth “monitoring and controlling” phase between the executing and closing stages. Although many projects may have similar phase names with similar deliverables, few are identical. Figure 2-4 shows an example of a project with three phases. Different phases typically have a different duration or length. -The initiation phase marks the beginning of a project, with the project manager defining the scope and objectives. During this phase, it’s vital to align stakeholders on common goals and lay the foundation for a successful project. - Next: project manager creates a project charter, outlining the purpose, goals, and scope of the project. This charter includes the following key information: Project purpose and justification Main objectives and deliverables Key stakeholders and team members Initial schedule and budget estimates Once the expectations and success criteria are clear, the next project management life cycle phase focuses on planning each task the team needs to perform to cover the scope, achieve the deliverables, and meet the overall goal.  Planning phase is where the project solution is further developed in as much detail as possible and the steps necessary to meet the project’s objective are planned. In this step, the team identifies all of the work to be done. The project’s tasks and resource requirements are identified, along with the strategy for producing them. The Project Execution Phase is where the project team executes and follows through on tasks based on the Project Plan. At this stage, the team spends most of its time coordinating with people, helping to ensure quality work, keeping track of resources, and updating stakeholders. The closing phase marks the formal end of a project. During this phase, the focus is on getting final approvals and sign-offs, conducting a post-project review, identifying what went well, determining areas for improvement, and documenting lessons learned. These activities foster a culture of continuous learning and promote accountability and transparency. -Some organizations have established policies that standardize all projects, while others allow the project management team to choose the most appropriate for their individual project. -one project team might divide a project into two phases where a different project team might choose to manage all the work as a single phase. Much depends on the nature of the specific project and the style of the project team or organization. 1 Project Governance Across the Life Cycle -Project governance refers to the set of policies, processes, and procedures that guide the decision-making and control mechanisms for managing projects within an organization. It ensures that projects are aligned with strategic objectives, effectively managed, and deliver the desired outcomes. Project governance is typically the responsibility of senior management or the project sponsor. They define the governance structure, assign roles and responsibilities, and ensure adherence to the established framework throughout the project lifecycle. -Project governance can be applied to any project, regardless of its size or complexity. It provides a standardized approach to project management that can be tailored to the specific needs of the organization and the project at hand. When projects have more than one phase, the phases are part of a generally sequential process designed to ensure proper control of the project and attain the desired product, service or result. However, there are situations when a project might benefit from overlapping or concurrent phases. -Project governance provides a comprehensive, consistent method of controlling the project and ensuring its success. The project governance approach should be described in the project management plan. A project's governance must fit within the larger context of the program or organization sponsoring it. -Within those constraints, as well as the additional limitations of time and budget, it is up to the project manager and the project management team to determine the most appropriate method of carrying out the project. Decisions must be made regarding who will be involved, what resources are necessary, and the general approach to completing the work. Another important consideration is whether more than one phase will be involved and, if so, the specific phased structure for the individual project. -The phase structure provides a formal basis for control. Each phase is formally initiated to specify what is allowed and expected for that phase. -A project phase is generally concluded and formally closed with a review of the deliverables to determine completeness and acceptance. A phase-end review can achieve the combined goal of obtaining authorization to close the current phase and start the subsequent one. The end of a phase represents a natural point to reassess the effort underway and to change or terminate the project if necessary. A review of both key deliverables and project performance to date to a) determine if the project should continue into its next phase and b) detect and correct errors cost effectively should be regarded as good practice. Formal phase completion does not necessarily include authorizing the subsequent phase..2 Phase-to-Phase Relationships -When projects are multi-phased, the phases are part of a generally sequential process designed to ensure proper control of the project and attain the desired product, service, or result. However, there are situations when a project might benefit from overlapping or concurrent phases. There are three basic types of phase-to-phase relationships: 1. A sequential relationship, where a phase can only start once the previous phase is complete. The step-by-step nature of this approach reduces uncertainty, but may eliminate options for reducing the schedule. 0. An overlapping relationship, where the phase starts prior to completion of the previous one. This can sometimes be applied as an example of the schedule compression technique called fast tracking. Overlapping phases may increase risk and can result in rework if a subsequent phase progresses before accurate information is available from the previous phase.  0. An iterative relationship, where only one phase is planned at any given time and the planning for the next is carried out as work progresses on the current phase and deliverables. This approach is useful in largely undefined, uncertain, or rapidly changing environments such as research, but it can reduce the ability to provide long term planning.. The scope is then managed by continuously delivering increments of the product and prioritizing requirements to minimize project risks and maximize product business value. It also can entail having all of the project team members (e.g. designers, developers, etc.) available throughout the project or, at a minimum, for two consecutive phases. -For multi-phase projects, more than one phase-to-phase relationship could occur during the project life cycle. Considerations such as level of control required, effectiveness, and degree of uncertainty determine the relationship to be applied between phases. Based on those considerations, all three relationships could occur between different phases of a single project. 2.2 Projects vs. Operational Work Organizations perform work to achieve a set of objectives. In many organizations the work performed can be categorized as either project or operations work. These two types of work share a number of characteristics as follows: Performed by individuals, Limited by constraints, including resource constraints, Planned, executed, monitored and controlled, and Performed to achieve organizational objectives or strategic plans. Project Work Operational Work Definition A temporary endeavor with a specific Ongoing and producing repetitive goal and clearly defined start and tasks, products, services, or results to end. sustain business operations.  Purpose To accomplish a unique goal or To maintain and optimize existing produce a specified outcome, such as systems, services, or processes. a new product, service, or process. Duration Temporary; has a specific start and Continuous; no defined end date. end date. Outcome Unique product, service, or result. Stable and predictable outputs. Scope Defined, variable, and often subject to Fixed, consistent, and aimed at change based on project needs. maintaining stability. Change Often involves change, innovation, Focuses on maintaining the status quo and transformation. and minimizing changes. Resources May require cross-functional teams Typically uses existing resources, with with specialized skills for a limited a stable team. time. Risk Generally higher due to the Lower, as the work is repetitive and uniqueness and unknowns involved. known. Management Managed through project Managed through operations Approach management methodologies (e.g., management principles. Agile, Waterfall). Examples Developing a new software Manufacturing products in a application. factory. Launching a marketing Providing customer service or campaign. technical support. Constructing a new building or Performing routine facility. maintenance on equipment. Researching and developing a Conducting payroll processing. new product. Managing inventory and supply chain logistics. -Projects and operations differ primarily in that operations are ongoing and produce repetitive products, services, or results. Projects (along with team members and often the opportunity) are temporary and end. Conversely, operations work is ongoing and sustains the organization over time. Operations work does not terminate when its current objectives are met but instead follow new directions to support the organization's strategic plans. -Operations work supports the business environment where projects are executed. As a result, there is generally a significant amount of interaction between the operations departments and the project team as they work together to achieve project goals. -The project manager may work with multiple operational managers to research consumer preferences, draw up technical specifications, build a prototype, test it, and begin manufacturing -The amount of resources supplied from operations will vary from project to project. -Depending on the nature of the project, the deliverables may modify or contribute to the existing operations work. In this case, the operations department will integrate the deliverables into future business practices. Examples of these types of projects can include, but are not limited to: Developing a new product or service that is added to an organization's product line to be marketed and sold, Installing products or services that will require ongoing support, Internal projects that will affect the structure, staffing levels, or culture of an organization, or - Developing, acquiring, or enhancing an operational department's information system. 2.3 Stakeholders Stakeholders are persons or organizations (e.g., customers, sponsors, the performing organization, or the public), who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project. Stakeholders may also exert influence over the project, its deliverables, and the project team members. The project management team must identify both internal and external stakeholders in order to determine the project requirements and expectations of all parties involved. Furthermore, the project manager must manage the influence of the various stakeholders in relation to the project requirements to ensure a successful outcome. Figure 2-6 illustrates the relationship between the project, the project team, and other common stakeholders. -Stakeholders have varying levels of responsibility and authority when participating on a project and these can change over the course of the project life cycle. Their responsibility and authority may range from occasional contributions in surveys and focus groups to full project sponsorship, which includes providing financial and political support. Stakeholders can have an adverse impact on the project objectives. -Stakeholder identification is a continuous process and can be difficult. Identifying stakeholders and understanding their relative degree of influence on a project is critical. Failure to do so can extend the timeline and raise costs substantially. -A project can be perceived as having both positive and negative results by the stakeholders. Some stakeholders benefit from a successful project, while other stakeholders perceive negative outcomes from a project's success. -An important part of a project manager's responsibility is to manage stakeholder expectations. This can be difficult because stakeholders often have very different or conflicting objectives. Part of the project manager's responsibility is to balance these interests and ensure that the project team interacts with stakeholders in a professional and cooperative manner. The following are some examples of project stakeholders. 1.Customers/users. The customers/users are the persons or organizations that will use the project's product or service or result. Customers/users may be internal and/or external to the performing organization. There may also be multiple layers of customers 2. Sponsor. A sponsor is the person or group that provides the financial resources, in cash or in kind, for the project. When a project is first conceived, the sponsor champions the project. This includes serving as spokesperson to higher levels of management to gather support throughout the organization and promote the benefits that the project will bring. The sponsor leads the project through the engagement or selection process until formally authorized, and plays a significant role in the development of the initial scope and charter. For issues that are beyond the control of the project manager, the sponsor serves as an escalation path. The sponsor may also be involved in other important issues such as authorizing changes in scope, phase-end reviews, and go/no-go decisions when risks are particularly high. 3.Portfolio managers/portfolio review board. Portfolio managers are responsible for the high- level governance of a collection of projects or programs, which may or may not be interdependent. Portfolio review boards are committees usually made up of the organization's executives who act as a project selection panel. They review each project for its return on investment, the value of the project, risks associated with taking on the project, and other attributes of the project. 4.Program managers. Program managers are responsible for managing related projects in a coordinated way to obtain benefits and control not available from managing them individually. Program managers interact with each project manager to provide support and guidance on individual projects. 5.Project management office. A project management office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. The PMO can be a stakeholder if it has direct or indirect responsibility for the outcome of the project. The PMO can provide but is not limited to: o Administrative support services such as policies, methodologies, and templates; o Training, mentoring, and coaching of project managers; o Project support, guidance, and training on how to manage projects and the use of tools; o Resource alignment of project staff; and/or o Centralized communication among project managers, project sponsors, managers, and other stakeholders. 6.Project managers. Project managers are assigned by the performing organization to achieve the project objectives. This is a challenging, high-profile role with significant responsibility and shifting priorities. It requires flexibility, good judgment, strong leadership and negotiating skills, and a solid knowledge of project management practices. A project manager must be able to understand project detail, but manage from the overall project perspective. As the person responsible for the success of the project, a project manager is in charge of all aspects of the project including, but not limited to: o Developing the project management plan and all related component plans, o Keeping the project on track in terms of schedule and budget, o Identifying, monitoring, and responding to risk, and o Providing accurate and timely reporting of project metrics. The project manager is the lead person responsible for communicating with all stakeholders, particularly the project sponsor, project team, and other key stakeholders. The project manager occupies the center of the interactions between stakeholders and the project itself. 7.Project team. A project team is comprised of the project manager, project management team, and other team members who carry out the work but who are not necessarily involved with management of the project. This team is comprised of individuals from different groups with knowledge of a specific subject matter or with a specific skill set who carry out the work of the project. 8.Functional managers. Functional managers are key individuals who play a management role within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement. They are assigned their own permanent staff to carry out the ongoing work, and they have a clear directive to manage all tasks within their functional area of responsibility. The functional manager may provide subject matter expertise or their function may provide services to the project. 9.Operations management. Operations managers are individuals who have a management role in a core business area, such as research and development, design, manufacturing, provisioning, testing, or maintenance. Unlike functional managers, these managers deal directly with producing and maintaining the saleable products or services of the enterprise. Depending on the type of project, a formal handoff occurs upon completion to pass technical project documentation and other permanent records into the hands of the appropriate operations management group. Operations management would then incorporate the handed off project into normal operations and provide the long term support. 10.Sellers/business partners. Sellers, also called vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project. Business partners are also external companies, but they have a special relationship with the enterprise, sometimes attained through a certification process. Business partners provide specialized expertise or fill a specified role such as installation, customization, training, or support. 2.4 Organizational Influences on Project Management The organizational culture, style, and structure influence how projects are performed. An organization's degree of project management maturity and its project management systems can also influence the project. When a project involves external entities as part of a joint venture or partnering, the project will be influenced by more than one enterprise. The following sections describe organizational characteristics and structures within an enterprise that are likely to influence the project. 2.4.1 Organizational Cultures and Styles Cultures and styles may have a strong influence on a project's ability to meet its objectives. Cultures and styles are typically known as "cultural norms." The "norms" include a common knowledge regarding how to approach getting the work done, what means are considered acceptable for getting the work done, and who is influential in facilitating the work getting done. Most organizations have developed unique cultures that manifest in numerous ways including, but not limited to: Shared visions, values, norms, beliefs, and expectations, Policies, methods, and procedures, View of authority relationships, and Work ethic and work hours. -The organizational culture is an enterprise environmental factor as described in Section 1.8. Therefore, a project manager should understand the different organizational styles and cultures that may affect a project. For example, in some cases the person shown at the top of an organization chart may be a figurehead who is not truly in charge. The project manager must know which individuals in the organization are the decision makers and work with them to influence project success. 2.4.2 Organizational Structure Organizational structure is a crucial environmental factor in an enterprise, influencing resource availability and project execution. It ranges from functional to projectized structures, with various matrix structures between them. It outlines activities directed towards achieving organizational goals, including rules, roles, and responsibilities. Table 2-1. Organizational Influences on Projects Table 2-1 shows key project-related characteristics of the major types of organizational structures. FUNCTIONAL Figure 2-7. Functional Organization Functional organization is a hierarchical structure where each employee has a clear superior and is grouped by specialty, such as production, marketing, engineering, or accounting, and each department independently performs its project work. MATRIX Matrix organizations, as shown in Figures 2-8 through 2-10, are a blend of functional and projectized characteristics. Figure 2-8. Weak Matrix Organization Weak matrices maintain many of the characteristics of a functional organization, and the project manager role is more of a coordinator or expediter than that of a true project manager Figure 2-9. Balanced Matrix Organization While the balanced matrix organization recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project funding. Figure 2-10. Strong Matrix Organization Strong matrices have many of the characteristics of the projectized organization, and can have full-time project managers with considerable authority and full-time project administrative staff. PROJECTIZED Figure 2-11. Projectized Organization Projectized organizations co-locate team members, allocate resources, and have project managers with independence. Departments report to project managers, with the project manager as final authority. COMPOSITE Figure 2-12. Composite Organization A composite organization combines functional, matrix, and projectized types, adapted for special projects, simplicity, or power control. It includes full-time staff from different departments, develops its own operating procedures, and operates outside the standard reporting structure. Most modern businesses are of this type. Many organizations involve all these structures at various levels, as shown in Figure 2-12 (composite organization). For example, even a fundamentally functional organization may create a special project team to handle a critical project. Such a team may have many of the characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures, and may operate outside the standard, formalized reporting structure. 2.4.3 - ORGANIZATIONAL PROCESS ASSETS 2.4.3 Organizational Process Assets Organizational process assets include any or all process related assets, from any or all of the organizations involved in the project that can be used to influence the project's success. These process assets include formal and informal plans, policies, procedures, and guidelines. The process assets also include the organization's knowledge bases such as lessons learned and historical information. Organizational process assets may include completed schedules, risk data, and earned value data. Updating and adding to the organizational process assets as necessary throughout the project are generally the responsibility of the project team members. -Project managers rely on organization process assets to enhance project efficiency, uniformity and compliance with regulations. -To facilitate simple access by all members of the company, they are usually kept in a centralized location. -Organizational process assets provide guidelines and criteria for tailoring the organization's processes to the specific needs of the project. These assets establish a foundation of resources and proven practices that serve as a guide for the project from its inception to its conclusion. 2 CATEGORIES OF ORGANIZATIONAL PROCESS ASSETS.1 Processes and Procedures The organization's processes and procedures for conducting work include but are not limited to: Organizational standard processes such as standards, policies (e.g., safety and health policy, ethics policy, and project management policy), standard product and project life cycles, and quality policies and procedures (e.g., process audits, improvement targets, checklists, and standardized process definitions for use in the organization); Standardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria; These are set rules, regulations and framework regarding the performance of tasks. Templates (e.g., risk, work breakdown structure, project schedule network diagram, and contract templates); Guidelines and criteria for tailoring the organization's set of standard processes to satisfy the specific needs of the project; Organization communication requirements (e.g., specific communication technology available, allowed communication media, record retention policies, and security requirements);Refer to the established communication protocols and rules that an organization adheres to guarantee the efficient exchange of information transmission within and outside the organization. Project closure guidelines or requirements (e.g., final project audits, project evaluations, product validations, and acceptance criteria); It states the closing and finalization of the project. Financial controls procedures (e.g., time reporting, required expenditure and disbursement reviews, accounting codes, and standard contract provisions); Standardized guidelines regarding the management of finances effectively. *Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution, and action item tracking; * Change control procedures, including the steps by which official company standards, policies, plans, and procedures or any project documents-will be modified, and how any changes will be approved and validated; *Risk control procedures, including risk categories, probability definition and impact, and probability and impact matrix;. *Procedures for prioritizing, approving, and issuing work authorizations..2 Corporate Knowledge Base: Centralized database that a company uses to manage, preserve, and disseminate important data and insights obtained over time. It makes effective knowledge administration possible and guarantees that employees have access to such important information. Process measurement databases used to collect and make available measurement data on processes and products, Project files (e.g., scope, cost, schedule, and performance measurement baselines, project calendars, project schedule network diagrams, risk registers, planned response actions, and defined risk impact): Important data and materials that offer a thorough account of a project's lifespan, from start to finish. Historical information and lessons learned knowledge bases (e.g., project records and documents, all project closure information and documentation, information about both the results of previous project selection decisions and previous project performance information, and information from the risk management effort), It records reflections and conclusions from previous projects, evaluating contributory factors to their success as well as identifying gaps during the process. It avoids mistakes and improves project execution. *Issue and defect management databases containing issue and defect status, control information, issue and defect resolution, and action item results Configuration management knowledge bases containing the versions and baselines of all official company standards, policies, procedures, and any project documents, and Financial databases containing information such as labor hours, incurred costs, budgets and any project cost overruns. CHAPTER 3: PROJECT MANAGEMENT PROCESSES FOR A PROJECT PROJECT MANAGEMENT PROCESSES FOR A PROJECT Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. This application of knowledge requires the effective management of appropriate processes. A process is a set of interrelated actions and activities performed to achieve a pre- specified product, result, or service. Each process is characterized by its inputs, the tools and techniques that can be applied, and the resulting outputs. Project manager must consider organizational process assets and enterprise environmental factors. Project management is an integrative endeavor—an action, or failure to take action, in one area, will usually affect other areas In order for a project to be successful, the project team must: Select appropriate processes required to meet the project objectives, Use a defined approach that can be adopted to meet requirements, Comply with requirements to meet stakeholder needs and expectations, and Balance the competing demands of scope, time, cost, quality, resources, and risk to produce the specified product, service, or result.  The project processes are performed by the project team and generally fall into one of two major categories: -Project management processes ensure the effective flow of the project throughout its existence–tools and techniques involved in applying the skills and capabilities Product-oriented processes specify and create the project's product. Product-oriented processes are typically defined by the project life cycle and vary by application area. The scope of the project cannot be defined without some basic understanding of how to create the specified product. Project management processes and product-oriented processes overlap and interact throughout the life of a project. Project management processes apply globally and across industry groups. Good practice means there is general agreement that the application of project management processes has been shown to enhance the chances of success over a wide range of projects. This does not mean that the knowledge, skills, and processes described should always be applied uniformly on all projects. For any given project, the project manager, in collaboration with the project team, is always responsible for determining which processes are appropriate, and the appropriate degree of rigor for each process. Project managers and their teams should carefully address each process and its constituent inputs and outputs. This chapter should be used as a guide for those processes they must consider in managing their project. This effort is known as tailoring. Project management is an integrative undertaking requiring each project and product process to be appropriately aligned and connected with the other processes to facilitate coordination. Actions taken during one process typically affect that process and other related processes. Successful project management includes actively managing these interactions to meet sponsor, customer, and other stakeholder requirements. In some circumstances, a process or set of processes will need to be iterated several times in order to achieve the required outcome. Projects exist within an organization and cannot operate as a closed system. They require input data from the organization and beyond, and deliver capabilities back to the organization. The project processes may generate information to improve the management of future projects. EACH PROCESS IN TERMS of.. Inputs: documents or documentable items that will be acted upon. Tools and techniques: mechanisms applied to the inputs to create the outputs. Outputs: documents or documentable items that are a result of the process. Project management processes are grouped into five categories known as Project Management Process Groups (or Process Groups): 1.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. the initial scope is defined and initial financial resources are committed. Internal and external stakeholders who will interact and influence the overall outcome of the project are identified 2.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. The Planning Process Group provides the Executing Process Group with the project management plan and project documents, and, as the project progresses, it often entails updates to the project management plan and the project documents. 3.Executing Process Group. Those processes performed to complete the work defined in the project management plan to satisfy the project specifications. 4.Monitoring and 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. Monitoring and Controlling Process Group to interact with the other Process Groups. 5.Closing Process Group. Those processes performed to finalize all activities across all Process Groups to formally close the project or phase. The remainder of this chapter provides information for project management of a single project organized as a network of interlinked processes, details the project management processes, and includes the following major sections: 3.1 Common Project Management Process Interactions 3.2 Project Management Process Groups 3.3 Initiating Process Group 3.4 Planning Process Group 3.5 Executing Process Group 3.6 Monitoring and Controlling Process Group 3.7 Closing Process Group 3.1 Common Project Management Process Interactions -The project management processes are presented as discrete elements with well-defined interfaces. -Most experienced project management practitioners recognize there is more than one way to manage a project. -The required Process Groups and their constituent processes are guides for applying appropriate project management knowledge and skills during the project. -The application of the project management processes is iterative, and many processes are repeated during the project. -the Initiating Process Group begins the project, and the Closing Process Group ends it. -Project Management Process Groups are linked by the outputs they produce. -The Process Groups are seldom either discrete or one-time events; they are overlapping activities that occur throughout the project. The output of one process generally becomes an input to another process or is a deliverable of the project. If the project is divided into phases, the Process Groups interact within each phase. -An example of this would be the exit of a design phase, which requires customer acceptance of the design document. 3.2 Project Management Process Groups The following sections identify and describe the five Project Management Process Groups required for any project. The process flow diagram, Figure 3-3, provides an overall summary of the basic flow and interactions among Process Groups and specific stakeholders. A Process Group includes the constituent project management processes that are linked by the respective inputs and outputs where the result or outcome of one process becomes the input to another. The Process Groups are not project phases. When large or complex projects are separated into distinct phases or subprojects such as feasibility study, concept development, design, prototype, build, test, etc., all of the Process Groups would normally be repeated for each phase or subproject. 3.3 Initiating Process Group When the project charter is approved, the project becomes officially authorized. Although the project management team may help write the project charter, approval and funding are handled external to the project boundaries. -Many large or complex projects may be divided into separate phases. In such projects the Initiating processes are carried out during subsequent phases to validate the decisions made during the original Develop Project Charter and Identify Stakeholders processes. -Invoking the Initiating processes at the start of each phase helps keep the project focused on the business need the project was undertaken to address. -Initiating processes may be performed by organizational, program, or portfolio processes external to the project's scope of control. -As part of the Initiating processes the project manager is given the authority to apply organizational resources to the subsequent project activities. 3.3.1 Develop Project Charter Develop Project Charter is the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder's needs and expectations. In multi- phase projects, this process is used to validate or refine the decisions made during the previous iteration of Develop Project Charter. -Keep in mind, that the charter is not a plan. Project planning is started after the charter is issued. It's not even a contract, it is just a document to show that the project is officially started. 3.3.2 Identify Stakeholders Identify Stakeholders is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success. 3.4 Planning Process Group The planning processes develop the project management plan and the project documents that will be used to carry out the project. The multi-dimensional nature of project management creates repeated feedback loops for additional analysis. Significant changes occurring throughout the project life cycle trigger a need to revisit one or more of the planning processes and, possibly, some of the initiating processes. This progressive detailing of the project management plan is often called "rolling wave planning,” indicating that planning and documentation are iterative and ongoing processes. -Updates arising from approved changes during the project may significantly impact parts of the project management plan and the project documents. Updates to these documents provide greater precision with respect to schedule, costs, and resource requirements to meet the defined project scope. -Other interactions among the processes within the Planning Process Group are dependent upon the nature of the project. 3.4.1 Develop Project Management Plan Develop Project Management Plan is the process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans. -The project management plan becomes the primary source of information for how the project will be planned, executed, monitored and controlled, and closed. -A project management plan is a set of documents detailing the implementation's how, when, and what-ifs. It covers the project's value proposition, execution phases, resources, communication tools and protocols, risks, stakeholders (and their responsibilities), and the deliverables required for project completion. The documents include an executive summary, Gantt and team charts, a risk assessment, and sub plans for communication and resource management. -A project management plan is a blueprint or roadmap for your project's ultimate success. INPUTS: >Enterprise environmental factors that can influence the Develop Project Management Plan process include: Governmental or industry standards Project management information systems (e.g., scheduling software, configuration management, information distribution tools) Organizational structure and culture Infrastructure (e.g., facilities, equipment) Personnel administration (e.g., hiring policies, performance reviews, training records Develop Project Management Plan: Tools and Techniques. 1. Expert Judgment When developing the project management plan, expert judgment is utilized to: Tailor the process to meet the project needs, Develop technical and management details to be included in the project management plan, Determine resources and skill levels needed to perform project work, Define the level of configuration management to apply on the project, and Determine which project documents will be subject to the formal change control process Develop Project Management Plan: Outputs 1. Project Management Plan: The project management plan integrates and consolidates all of the subsidiary management plans and baselines from the planning processes –The scope, schedule, and cost baselines are frequently merged into a performance measurement baseline, serving as a comprehensive reference for assessing integrated project performance. This baseline is used to track earned value measurements. 3.4.2 Collect Requirements Collect Requirements is the process of defining and documenting stakeholders' needs to meet the project objectives. -The collecting requirement is a process that identifies, documents, and manages stakeholders' wants and requirements to achieve the Project Management task's objectives. The documentation created during the gathering requirements phase is significant because it is the foundation for defining and maintaining the project's scope -The project charter plays a critical role in the early stages of a project by outlining the high-level project requirements and providing a broad description of the product or deliverable.. It acts as a guiding document, defining the project's purpose, objectives, and key stakeholders. By offering this high-level overview, the charter helps set expectations and establishes a framework within which the project team can begin detailed planning. Specifically, it serves as a foundation for the development of detailed product requirements, ensuring that the project aligns with the initial vision and stakeholder needs. This ensures that as the project progresses, there is a clear and cohesive understanding of the product's objectives, scope, and deliverables. -The stakeholder register is a vital project management tool that helps in identifying and listing all individuals, groups, or organizations that have an interest or influence in the project. It includes key details such as their roles, interests, power, influence, and potential impact on the project Collect Requirements: Inputs 1.Project Charter 2.Stakeholder Register Collect Requirements: Tools and Techniques 1. Interviews An interview is a method used to gather information from stakeholders by engaging them in direct conversation. 2. Focus groups Focus groups gather prequalified stakeholders and subject matter experts to discuss their expectations and views on a proposed product, service, or outcome 3. Facilitated Workshops Focus groups bring together selected stakeholders and experts to discuss their expectations and opinions about a proposed product or outcome. 4. Group Creativity Techniques- Several group activities can be organized to identify project and product requirements. Some of the group creativity techniques that can be used are: Brainstorming.: It is a method used to gather and generate numerous ideas related to project and product requirements. Nominal group technique.: This method improves brainstorming by incorporating a voting process to rank the most valuable ideas for further discussion or prioritization. The Delphi Technique.: A chosen group of experts completes questionnaires and provides feedback on the responses from each round of requirements gathering. The facilitator alone has access to the responses to ensure anonymity. Idea/mind mapping.: Ideas generated through individual brainstorming are combined into a single map to highlight commonalities and differences in understanding, and to inspire new ideas. Affinity diagram.: This technique enables the organization of a large number of ideas into groups for further review and analysis 5.Group Decision Making Techniques Group decision making is an assessment process of multiple alternatives with an expected outcome in the form of future actions resolution. These techniques can be used to generate, classify, and prioritize product requirements. There are multiple methods of reaching a group decision, for example: Unanimity.: Everyone agrees on a single course of action. Majority.: Support from more than 50% of the members of the group. Plurality.: The largest block in a group decides even if a majority is not achieved. Dictatorship.: One individual makes the decision for the group. 6. Questionnaires and Surveys : Questionnaires and surveys are structured sets of questions intended to quickly gather information from many respondents. They are especially useful for reaching large audiences, obtaining rapid responses, and conducting statistical analysis. 7. Observations Observations provide a way to see how individuals perform their jobs or tasks in their usual environment, which is helpful for understanding detailed processes, especially when users cannot clearly express their needs 8. Prototypes Prototyping involves creating a working model of the expected product to gather early feedback on requirements. This tangible model allows stakeholders to interact with a real version of their future product, rather than just discussing abstract ideas Collect Requirements: Outputs 1. Requirements Documentation: Requirements documentation outlines how each requirement addresses the project's business needs 2 Requirements Management Plan The requirements management plan details how requirements will be analyzed, documented, and managed throughout the project. It outlines the approach for managing requirements based on the phase-to-phase relationship described in Section 2.1.3.2. The project manager must select the most suitable relationship for the project and document this strategy in the plan, with many of the plan's elements reflecting this chosen approach. 3 Requirements Traceability Matrix The requirements traceability matrix is a table that connects each requirement to its origin and tracks it throughout the project. It ensures that each requirement contributes to business value by aligning with business and project objectives. This matrix helps monitor requirements from approval through to delivery, ensuring they are fulfilled by the project's end. 3.4.3 Define Scope Define Scope is the process of developing a detailed description of the project and product. -core element of the project management triangle, alongside cost and time. It defines the parameters and goals of a project, giving team members a framework and stakeholder expectations, all of which are essential for its successful conclusion. Examples of organizational process assets that can influence the Define Scope process include, but are not limited to: Policies, procedures, and templates for a project scope statement, Project files from previous projects, and Lessons learned from previous phases or projects. Define Scope: Inputs 1.Project charter 2.Requirements Documentation 3.Organizational Process Assets Define Scope: Tools and Techniques 1. Expert Judgment: Such expertise is provided by any group or individual with specialized knowledge or training, and is available from many sources 2. Product Analysis 3. Alternatives Identification 4. Facilitated Workshops 3.4.4 Create WBS Create Work Breakdown Structure is the process of subdividing project deliverables and project work into smaller, more manageable components. A Work Breakdown Structure (WBS) is a project management tool in which the work inside a project can be broken down to give a comprehensive perspective of each component. Create WBS: Inputs 1. Project Scope Statement 2. Requirements Documentation 3. Organizational Process Assets Create WBS: Tools and Techniques. 1. Decomposition Create WBS: Outputs. 1. WBS The Work Breakdown Structure (WBS) is a hierarchical framework that breaks down project work into deliverables, with each level providing more detail. 2. WBS Dictionary The WBS dictionary is a document produced during the Create WBS process that supports the Work Breakdown Structure (WBS). It offers detailed descriptions of the WBS components, including work packages and control accounts. 3. Scope Baseline The scope baseline is part of the project management plan. 4.Project Document Updates 3.4.5 Define Activities Define Activities is the process of identifying the specific actions to be performed to produce the project deliverables. -An activity is a step in a project management plan. Every task comprises one or more steps that, when finished, will advance the project to the next phase. Define Activities: Inputs. 1. Scope Baseline 2. Enterprise Environmental Factors 3. Organizational Process Assets Define Activities: Tools and Techniques 1. Decomposition 2. Rolling Wave Planning Rolling wave planning is a progressive elaboration approach where near-term work is planned in detail while future work is planned at a higher level. This means that work is detailed to varying extents depending on its stage in the project life cycle. 3. Templates 4.Expert Judgement Define Activities: Outputs 1. Activity List 2.Activity Attributes 3.Milestone List 3.4.6 Sequence Activities Sequence Activities is the process of identifying and documenting relationships among the project activities. -The method used to identify and verify affiliates in the middle of project activities and organize tasks shows how work should be planned consistently to maximize the efficiency of project constraints. Sequence Activities: Inputs 1. Activity List 2. Activity Attributes 3. 3 Milestone List 4. Project Scope Statement 5. Organizational Process Assets Sequence Activities: Tools and Techniques 1. Precedence Diagramming Method (PDM) 2. Dependency Determination 3. Applying Leads and Lags 4. Schedule Network Templates >Project schedule network diagrams are schematic displays of the project's schedule activities and the logical relationships among them, also referred to as dependencies. Sequence Activities: Outputs. 1. Project Schedule Network Diagrams 2. Project Document Updates Project documents that may be updated include, but are not limited to: Activity lists, Activity attributes, and Risk register 3.4.7 Estimate Activity Resources -Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. -The process of estimating activity resources helps the project team determine the kind and quantity of supplies, equipment, labor, and other materials needed for the project. The organizational process assets that can influence the Estimate Activity Resources process include but are not limited to: Policies and procedures regarding staffing, Policies and procedures relating to rental and purchase of supplies and equipment, and Historical information regarding types of resources used for similar work on previous projects. Estimate Activity Resources: Inputs 1. Activity List 2. Activity Attributes 3. Resource Calendars 4. Enterprise Environmental Factors 5. Organizational Process Assets Estimate Activity Resources: Tools and Techniques 1. Expert Judgment: Expert judgment is needed to evaluate resource-related inputs for the process. Specialists or knowledgeable individuals in resource planning and estimating can offer this expertise. 2. Alternatives Analysis 3. Published Estimating Data 4. Bottom-Up Estimating 5. Project Management Software 3.4.8 Estimate Activity Durations -Estimate Activity Durations is the process of approximating the number of work periods needed to complete individual activities with estimated resources. -Activity duration estimates provide an approximate measure of the time required to complete a project task. These estimates can be expressed in various time units, such as hours, days, weeks, or months, and typically correspond to business or work periods. Importance of activity duration estimates: -Activity duration estimates play a crucial role in project planning as they enable managers to anticipate the time required for a project. -Activity duration estimates play a key role in effective project planning and management. -Create a project schedule: Project managers can use activity duration estimates to develop a project timeline and itinerary, -Establish a baseline: Activity duration estimates offer a reference point to track a project's progress. -Evaluate team capabilities: For projects with set deadlines, duration estimates allow managers to assess whether their team can meet these timelines.  -Estimate project costs: Knowing the project's potential timeline helps managers estimate costs, as certain resources are tied to time-based expenses, such as employees who are paid hourly or based on the duration of their work. -Communicate with stakeholders: Project managers can share activity duration estimates and schedules with stakeholders, such as supervisors, investors, and clients, to keep them informed about the project's progress. Activity duration estimate techniques 1.Analogous estimating - project managers rely on historical data and the duration of similar past projects to make estimates. They use these previous observations as an "analogy" or comparison to predict how long the current activities will take. 2.Parametric estimating: In parametric estimating, project managers rely on statistical calculations to make their estimates. They analyze the work time per unit from past projects and use this data to predict the duration of current tasks, basing their estimate on observed trends. 3.Expert JudgementL Expert judgment involves seeking estimates from individuals with specialized knowledge or extensive experience in the relevant field. 4.Group decision-making =a project manager can also involve team members in determining an activity duration estimate. 5.Three-point estimating= In the three-point estimating technique, project managers identify three key values for each activity: optimistic, pessimistic, and most likely. These values set upper and lower limits for the activity's duration, assuming no major, unforeseen issues arise. The project manager then calculates a final estimate by applying either a triangular distribution or a PERT/Beta distribution method to these values. 6.Bottom-up estimating =project manager calculates the duration for each minor component of a project activity individually and then sums these estimates to determine the overall duration for the activity. 3.4.9 Develop Schedule -Develop Schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.Upon completing this process, you will have a finalized project schedule that outlines the start and end dates for each activity, how activities are interconnected, the resources assigned to each task, and the overall duration of the project What are the Outputs? Develop Schedule process generates a schedule model with planned dates for completing project activities. After activities are put in order, resource and activity relationships are defined in the schedule, all planned start and completion dates of project activities will be determined in the project schedule. 7 Inputs You Need for Develop Schedule Process 1. Project scope statement 2. Activity list 3. Network diagram 4. Activity duration estimates 5. Activity resource requirements 6. Resource calendars 7. A company calendar (working/non-working days) 3.4.10 Estimate Costs -Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities. -predicting the financial and resource requirements necessary to complete a project within its defined scope. This process involves evaluating every component needed for the project, including materials and labor, to calculate a total cost that establishes the project's budget Elements of cost estimation in project management 1. Direct Costs 2. Indirect Costs a cost estimation typically considers the following elements: Labor Materials and Equipment:  Facilities Vendors: Risk 5 project cost estimation methods & techniques 1.Analogous Estimate 2.Bottom up estimate: calculating the cost for each individual task or component of a project and then summing these costs to determine the total project cost 3.Parameter : costs based on specific characteristics or data points 4.Three-Point = likely, optimistic and pessimistic 5.Ballpark Estimate = approximate value for a project by combining data from similar past projects with specific expenses related to the current project. This rough estimate offers a general idea of the project's cost without detailed analysis. 3.4.11 Determine Budget Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. This baseline covers all authorized budgets but does not include management reserves. INPUTS: 1.Activity Cost Estimates = The cost estimates for each activity within a work package are combined to generate a total cost estimate for the entire work package. 2.Basis of Estimates= Any fundamental assumptions regarding whether to include or exclude indirect costs in the project budget are clearly outlined based on the cost estimates 3.Scope Baseline Scope Statement, WB Structure, WBS Dictionary 4 Project Schedule = scheduled start and end dates for the project's activities, milestones, work packages, planning packages, and control accounts. This information helps in mapping costs to the specific calendar periods when they are expected to occur. 5 Resource Calendars= Resource calendars contain details about which resources are allocated to the project and the time periods during which they are assigned. 6.Contracts 7.Organizational Process Assets Tools and Techniques 1.Cost Aggregation 2. Reserve Analysis 3 Expert Judgment 4.Historical Relationships 5.Funding Limit Reconciliation Outputs 1.Cost Performance Baseline= The cost performance baseline is an approved, time-phased budget that serves as a reference for assessing, monitoring, and controlling the overall cost performance of a project.2 Project Funding Requirements The total and periodic funding needs (such as quarterly or annually) are determined from the cost baseline. 3 Project Document Updates= Project documents that might need updating include, but are not limited to: Risk register, Cost estimates Project schedule 3.4.12 Plan Quality Plan Quality is the process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance. Plan Quality involves identifying the quality requirements and standards for both the project and its deliverables, and outlining how the project will ensure it meets these standards. Plan Quality: Tools and Techniques. 1. Cost-Benefit Analysis 2 Cost of Quality (COQ) The cost of quality encompasses all expenses throughout the product's life, including investments in preventing noncompliance with requirements, evaluating the product or service for compliance, and addressing nonconformance (rework). 3. Control Charts 4.Benchmarking = Benchmarking is the process of comparing the practices of a project— whether actual or planned—with those of similar projects to identify best practices, spark improvement ideas, and establish performance standards 5 Design of Experiments 6.Statistical Sampling 7.Flowcharting - A flowchart is a visual tool that maps out a process by illustrating the connections between different steps 8 Proprietary Quality Management Methodologies- These methodologies include Six Sigma, Lean Six Sigma, Quality Function Deployment, CMMI®, and others. This list is not exhaustive or meant to imply any particular recommendations. 9 Additional Quality Planning Tools 3.4.13 Develop Human Resource Plan Develop Human Resource Plan is the process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan. 1. Activity Resource Requirements= Human resource planning uses activity resource requirements to identify the project's human resource needs Develop Human Resource Plan: Tools and Techniques 1 Organization Charts and Position Descriptions -Hierarchical-type charts, Matrix-based charts, Text-oriented formats 2.Networking 3 Organizational Theory The human resource plan should cover, at a minimum, the following elements: Roles and Responsibilities: Authority Responsibility: Competency Project Organization Charts: Staffing Management Plan -Staff Acquisition, Resource Calendars, Staff Release Plan The Staff Release Plan outlines how and when team members will be released from the project. >Training Needs: >Recognition and Rewards: >Compliance >Safety 3.4.14 Plan Communications Plan Communications is the process of determining project stakeholder information needs and defining a communication approach.A project management process focused on managing how information is shared among stakeholders. Plan Communications: Input Stakeholder Register: This document lists all project stakeholders, including their roles, interests, and communication needs. It helps identify who needs information and their preferred methods of communication. Stakeholder Management Strategy: This plan is for engaging stakeholders based on their influence and interest. It provides insights into how to communicate effectively with each stakeholder group. Enterprise Environmental Factors: These are external factors that can impact communication, such as organizational culture, communication technologies, and legal requirements. They help tailor the communication plan to fit the context in which the project operates. Organizational Process Assets: These include internal guidelines, templates, and historical information from previous projects. They provide resources and best practices for developing the communication plan. Output Communications Management Plan: This detailed plan outlines how project information will be communicated to stakeholders Project Document Updates: These are revisions to project documents to reflect new communication requirements or strategies. They keep all project documentation up to date with the latest communication plans and details 3.4.15 Plan Risk Management Plan Risk Management is the process of defining how to conduct risk management activities for a project. Project Scope Statement: This document outlines the boundaries and deliverables of the project. Understanding the scope is essential for identifying potential risks related to the project's objectives, deliverables, and constraints. Cost Management Plan: This plan details how costs will be managed, controlled, and reported. It informs the Risk Management Plan by identifying financial constraints and cost-related risks. Schedule Management Plan: This plan provides guidelines for developing and managing the project schedule. Schedule Management Plan: This plan provides guidelines for developing and managing the project schedule. It helps in understanding how scheduling constraints or dependencies might impact risk mana