Project Management Study Guide PDF

Chapter 1: Introduction to Project Management Definition of a Project: A project is a temporary endeavor undertaken to create a unique product, service, or result. It has a clear beginning and end, and ends when objectives are met or no longer needed. In contrast, operations...

Chapter 1: Introduction to Project Management Definition of a Project: A project is a temporary endeavor undertaken to create a unique product, service, or result. It has a clear beginning and end, and ends when objectives are met or no longer needed. In contrast, operations are ongoing, repetitive activities. Projects may be standalone or part of a larger program (a group of related projects) or portfolio (a collection of programs/projects aligned with strategic goals). Triple Constraint (Iron Triangle): Projects are constrained by scope, time, cost (and quality). These three are interdependent: increasing scope or quality will affect schedule and budget, and vice versa. A common maxim is “Good, fast, cheap – pick two.” Process Groups and Knowledge Areas: PMBOK defines 5 Process Groups (Initiating, Planning, Executing, Monitoring & Controlling, Closing) and 10 Knowledge Areas (Integration, Scope, Schedule/Time, Cost, Quality, Resource, Communication, Risk, Procurement, Stakeholder). Each process has Inputs, Tools & Techniques, and Outputs (ITTOs). For example, Initiating includes Develop Project Charter, Planning includes Develop Project Management Plan and others. Key Definitions: o Project Manager: The person responsible for leading the project. o Sponsor: Provides overall direction, funding, and support. o Stakeholders: Individuals or groups (internal or external) affected by or interested in the project. o Product vs Service vs Result: A product is tangible (e.g. building), a service is intangible (e.g. training), a result is a consequence or outcome (e.g. report). Tip: Remember PMI’s classic definition: “A project is a temporary endeavor undertaken to create a unique product, service, or result” Quick Facts: Projects have unique deliverables and cross-functional teams. Even family tasks (like cleaning the garage) share project traits: a clear start/end and unique outcome. Example Exam Question (flashcard style): Q: Define a project according to PMBOK. A: A temporary endeavor to create a unique product, service, or result Chapter 2: Project Life Cycles and Methods Project Life Cycle: Projects typically follow a life cycle of phases (Initiation, Planning, Executing, Monitoring/Controlling, Closing). These may align with deliverables or milestones. Some projects use a predictive (waterfall) approach (detailed planning up front), while others use iterative/incremental (repeat cycles) or adaptive (agile) methods. Agile projects deliver work in short iterations, allowing scope to evolve. Most real projects combine approaches (hybrid). Product Life Cycle: Separate from project lifecycle, this is the stages a product goes through (concept, growth, maturity, decline). Project phases may end when a product is launched or transitions to operations.  Organizational Influence: The organizational culture, infrastructure, and governance affect the project. For example, a highly hierarchical company may impose many approval steps. Environmental factors (market conditions, regulations, company policies) set the context for the project. Likewise, industry trends or stakeholder expectations are external factors the PM must consider. Key Tools: Life cycle selection (predictive vs agile) depends on project size, complexity, and customer involvement. In agile, deliverables incrementally refine scope. Note: In agile, roles such as Product Owner and Scrum Master emerge; in predictive, you have a single Project Manager with broader authority. Example Exam Questions: Q: What are common project life cycle types? A: Predictive (waterfall), iterative/incremental, agile (adaptive), and hybrid. Q: How does a project life cycle differ from product life cycle? A: The project life cycle is the sequence of phases for project management; the product life cycle is stages of a product/service from concept to retirement. Chapter 3: Organizational Structures & Process Assets Organizational Structure: The company’s structure affects the project manager’s authority and the project setup: o Functional: Team members report to functional managers. PM has limited authority (often part-time). Communication is vertical. o Projectized: Team members report to the PM. PM has full authority; functional managers might not exist. o Matrix (Weak, Balanced, Strong): Blend of functional and projectized. In a weak matrix the functional manager dominates (PM acts more like coordinator); in a strong matrix the PM has more authority (almost projectized). A balanced matrix shares power. Roles and Responsibilities: The Project Management Office (PMO) may oversee standards, provide templates, or even manage projects. Stakeholders (customers, sponsors, teams, suppliers) all have interests and power to influence outcomes. Enterprise Environmental Factors (EEFs): EEFs are conditions outside the immediate project control that influence it. Examples: organizational culture, marketplace conditions, legal restrictions, and political climate. EEFs include internal factors like company structure, and external factors like government regulations. “EEFs include all policies, practices, procedures, and legislation inside and outside the organization that will impact the way you manage a project.” Organizational Process Assets (OPAs): OPAs are the company’s processes and knowledge bases used in projects. This includes plans, processes, policies, procedures, templates, historical data, lessons learned, etc. OPAs provide guidance and history to help manage the project. For example, past project budgets, test results, and standard contract templates are OPAs. “OPAs include anything the organization has acquired that you can use in management of the project – formal and informal plans, policies, procedures, and guidelines.” Tip: Every process in Project Integration Management (Chapter 4) uses EEFs and OPAs as inputs. Memorize that EEFs are external/organizational conditions, while OPAs are internal assets like templates and databases. Example Exam Questions: Q: Give two examples of EEFs and OPAs and explain their impact. A: EEF example: Company culture requiring multi-level approvals (external influence on project speed). OPA example: A standard risk register template used for risk identification (provides consistency and saves time). Chapter 4: Project Integration Management Purpose: Project Integration Management involves coordinating all aspects of the project – combining, unifying, and orchestrating processes and activities. It ensures that changes are managed holistically and the project stays aligned with strategic goals. Integration spans all knowledge areas throughout the project. Key Processes: According to PMBOK, there are 7 integration processes: 1. Develop Project Charter: Formally authorizes the project; creates the project charter with objectives, high-level requirements, and assigns a project manager. 2. Develop Project Management Plan: Consolidates all subsidiary plans (scope, schedule, cost, quality, etc.) into the overall project management plan. 3. Direct & Manage Project Work: Leads and performs the work defined in the PM plan, producing deliverables, and implementing approved changes. 4. Manage Project Knowledge: (New in PMBOK 6th) Leverages project knowledge and lessons learned; ensures knowledge is used and captured (e.g. knowledge database). 5. Monitor & Control Project Work: Tracks, reviews, and reports progress against the plan; identifies variances; informs decision-making. 6. Perform Integrated Change Control: Reviews all change requests, approves or rejects changes, and manages changes to project baselines (scope, schedule, cost) in a controlled way. 7. Close Project or Phase: Finalizes all activities, hands off deliverables, obtains stakeholder acceptance, and formally closes project or phase. “Seven processes should be followed for successful project integration management. These are: Develop the Project Charter; Develop Project Management Plan; Direct and Manage Project Work; Manage Project Knowledge; Monitor and Control Project Work; Perform Integrated Change Control; Close Project (or Phase).” Inputs: Nearly every process in this area uses EEFs and OPAs as inputs. For example, developing the project charter relies on business documents (like the business case) and OPAs (templates). PMs must consider organizational culture (EEF) and use templates/lessons learned (OPA) for guidance. Tools & Techniques: Key techniques include Expert Judgment (e.g. for approving changes), Meetings/Workshops, and Data Gathering/Analysis. Document review, stakeholder analysis, and alternatives analysis are often used in the charter and plan development. A key tool is the Change Control Board (CCB), a group that approves or rejects change requests.  Outputs: The main outputs are the Project Charter, the Project Management Plan (with subsidiary plans like scope, schedule, cost baselines, etc.), accepted deliverables, change requests, and final project records. Tip: Think of Integration as the “glue” of project management – it’s about making trade-offs between objectives, using consolidated plans, and keeping everything aligned. Every change goes through integrated change control, ensuring all impacts are considered. Example Exam Questions: Q: List the 7 processes of Project Integration Management. A: (As above). Q: What is the purpose of the Perform Integrated Change Control process? A: To review all change requests, evaluate their impact on scope/time/cost, approve or reject them, and ensure changes are managed consistently across the project. Chapter 5: Scope Management Purpose: Project Scope Management ensures that the project includes all the work required (and only the required work) to complete the project successfully. This includes defining and controlling what is and is not included. Key Processes: 1. Plan Scope Management: Creates the scope management plan (how scope will be defined, validated, controlled). 2. Collect Requirements: Documents stakeholders’ needs and expectations (through interviews, surveys, workshops, prototypes, etc.). Requirements are listed in a requirements documentation. 3. Define Scope: Develops the detailed project and product scope statements, including project deliverables, constraints, and acceptance criteria. 4. Create WBS (Work Breakdown Structure): Subdivides the project scope into smaller, manageable components (work packages). The WBS (often drawn as a hierarchical tree) defines all project work. 5. Validate Scope: Formalizes acceptance of completed deliverables, usually through review and sign-off by the customer or sponsor. 6. Control Scope: Monitors the project and product scope, controlling changes and preventing scope creep. The scope baseline (WBS, WBS dictionary, project scope statement) is kept current as changes occur. Tools & Techniques: Includes documentation reviews, product analysis (for defining deliverables), alternatives analysis, and expert judgment. WBS decomposition uses techniques like mind mapping and the PM use of templates (from OPAs). For scope validation, techniques include inspection and group decision-making. Outputs: Requirements traceability matrix, project scope statement, WBS and WBS dictionary, scope baseline, accepted deliverables, change requests. The WBS (with its WBS dictionary) is a key tool: it shows all work packages needed, helping in estimating costs and schedule. Boxed Tip: Scope creep is uncontrolled expansion of scope without adjustments. Use the WBS and change control to manage scope changes tightly. Example Exam Questions: Q: What is a WBS, and why is it important? A: The Work Breakdown Structure is a hierarchical decomposition of all project work. It’s important because it defines the scope baseline and ensures no work is omitted. Q: What is a requirements traceability matrix? A: A table that links requirements to their source and tracks them through design, development, and delivery, helping ensure each requirement is met. Chapter 6: Schedule (Time) Management Purpose: Project Schedule Management deals with planning and controlling the schedule. It ensures timely completion by defining activities, sequencing them, estimating durations, developing the schedule, and controlling changes. Key Processes: 1. Plan Schedule Management: Establishes the policies, procedures, and documentation for planning and controlling the schedule. 2. Define Activities: Breaks down work packages (from WBS) into activities/tasks needed to create deliverables. 3. Sequence Activities: Determines dependencies (e.g. finish-to-start, start-to-start) and the order of tasks. Tools: Precedence Diagramming Method (PDM), dependency determination, leads/lags. 4. Estimate Activity Durations: Estimates how long each activity will take (using techniques like expert judgment, analogous estimation, parametric models, and three-point estimates). Duration estimates convert into time units. 5. Develop Schedule: Analyzes activity sequences, durations, resource availability, and constraints to produce the project schedule. Tools include critical path method (CPM), schedule network analysis, and resource leveling. The output is the schedule baseline (planned start and finish dates, milestones). 6. Control Schedule: Monitors the status of the schedule to update progress and manage changes. Variances are measured against the schedule baseline; corrective actions (fast tracking, crashing) may be taken. Critical Path Method (CPM): The critical path is the longest path of dependent activities through the project network, which determines the shortest possible project duration. In other words, it is the sequence of tasks that cannot be delayed without delaying the project. Activities on the critical path have zero float (slack). For example: “A critical path is determined by identifying the longest stretch of dependent activities and measuring the time required to complete them from start to finish.”. To find the critical path, one performs a forward and backward pass through the network diagram to calculate early and late start/finish dates and floats. Schedule Compression: When a project is behind schedule, two main techniques can be used:  o Fast Tracking: Overlap tasks that were originally scheduled sequentially. For example, begin design before requirements are fully finished, if risk is acceptable. “Fast tracking means changing the schedule so that certain tasks overlap and are done concurrently, rather than sequentially.”. o Crashing: Add extra resources or overtime to shorten durations. This increases cost but can reduce the schedule. “Project crashing is a schedule compression technique in which you bring in additional resources to complete two tasks simultaneously.”. Using both methods together can further shorten timelines, but risks (scope quality issues or higher cost) increase. Gantt Charts: A visual timeline (bar chart) showing activities, durations, dependencies, and milestones. Often used to communicate the schedule to stakeholders. Tip: Always calculate the critical path to know the project’s minimum duration. Beware that adding safety (buffers) or constraints can change the path. Activities off the critical path have float and can often be delayed if needed. Example Exam Questions: Q: What is the Critical Path? A: The longest path of activities (zero total float) dictating the shortest project duration Q: Describe fast tracking and crashing. A: Fast tracking overlaps tasks (saves time, may increase risk). Crashing adds resources to tasks (shortens duration, increases cost). Chapter 7: Cost (Budget) Management Purpose: Project Cost Management involves planning and controlling the budget so the project is completed within the approved funding. It covers estimating costs, determining budget, and controlling costs. Key Processes: 1. Plan Cost Management: Establishes how to plan, manage, and control costs. The output is the cost management plan, which defines units, precision, and accuracy. For instance, it specifies the units of measure (currency) and level of precision (rounding rules), and the level of accuracy (acceptable range of estimate error). 2. Estimate Costs: Predicts the costs of each activity or work package (including labor, materials, equipment). Techniques include analogous (top-down) estimating, parametric models, bottom-up estimating, three-point (PERT) estimates, and reserve analysis. Outputs are activity cost estimates and a basis for those estimates. 3. Determine Budget: Aggregates estimated costs to establish the cost baseline. This includes adding contingency reserves (for identified risks) and setting aside management reserves (for unknown risks). The Work Breakdown Structure (WBS) is used as the framework: “the Work Breakdown Structure is the framework which can be used to determine the overall budget based on estimates of the costs of individual work packages.”. The cost baseline becomes part of the performance measurement baseline. 4. Control Costs: Monitors budget status and controls changes to the cost baseline. Compares actual spending to planned spending, analyzes variances, and forecasts  future performance. Tools include Earned Value Management (EVM), performance indices, and cost-benefit analysis. Reports and forecasts (EAC, VAC) are generated. Earned Value Analysis (EVA): A key technique in cost control. Earned Value (EV) (also called Budgeted Cost of Work Performed, BCWP) measures the value of work actually completed in terms of the budget. It integrates scope, schedule, and cost. In short, EV = (% work complete) × (budget). For example, if 50% of the work is done on a $10,000 task, EV = $5,000. Planned Value (PV, or BCWS) is the budgeted cost of work scheduled; Actual Cost (AC) is the actual money spent. Using these: o Cost Variance (CV): = EV – AC (positive means under budget). o Schedule Variance (SV): = EV – PV (positive means ahead of schedule). o Cost Performance Index (CPI): = EV / AC. CPI > 1.0 means under budget, < 1.0 means over budget. o Schedule Performance Index (SPI): = EV / PV. SPI > 1.0 means ahead of schedule, < 1.0 means behind schedule. These indices are used for forecasting (e.g., EAC = Budget / CPI) and decision-making. “Earned value is an indicator that shows how much of your project’s work is completed; it compares completed tasks with planned tasks and their costs, giving a clear measure of project performance”. Reserves: o Contingency Reserve: Added for identified risks (known-unknowns). For example, extra money/time allocated because certain risks have been identified (like a 10% cost reserve for expected delays). “Contingency reserve [is] a planned amount of money or time added to an estimate to address a specific risk.”. If the risk doesn’t occur, contingency should be released or reallocated. o Management Reserve: Added for unforeseen risks (unknown-unknowns). This is a “pot of money” for surprises. It’s not part of the cost baseline (used only with approval) and is controlled by management. “Management reserve [is] a planned amount of money or time added to address unforeseeable situations.”. Note: The cost management plan and budget should be aligned with funding constraints (e.g. fiscal years, cash flow). Periodic funding and residual funds must be tracked. Example Exam Questions: Q: What is the formula for CPI and SPI, and what do they indicate? A: CPI = EV/AC (cost efficiency; >1 under budget, 1 ahead of schedule,