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First Published by Notion Press 2017Copyright © Anil Mishra 2017

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ISBN 978-1-947949-69-0

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Contents

Introduction ix

Basics of Project Management 1

Project Integration Management 13

Project Scope Management 21

Project Time Management 27

Project Cost Management 39

Project Quality Management 43

Project Human Resource Management 51

Project Communications Management 61

Project Risk Management 69

Project Procurement Management 79

Project Stakeholder Management 87

Appendix – A 91

Appendix – B 93

Frequently Asked Questions (FAQs) 95

Basics of Project Management

Project

A project is a temporary endeavor undertaken to create a unique product,

service, or result. It has a definite beginning and end. The project ends if its objectives are realized or if it’s no more required to be pursued or it is terminated.

Utility of a Project

To create a product which is an enhancement of an item, or an enditem in itself;

To perform a service or the capability to perform;

An improvement in the existing product or service lines; or

A result, such as an outcome or a document.

Relation among ‘Project, Program and Portfolio’

Generally, a portfolio is the superset of programs and a program is a superset of projects. A portfolio is defined as a collection of projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives of the organization. It’s like an umbrella program. Programs are grouped within a portfolio and comprise of subprograms, projects, or other work that are managed in a coordinated fashion in order to support the portfolio. Individual projects that are either within or outside of a program are still considered part of a portfolio. A program has related projects and sub-programs.

2 ➢ Most Frequently asked Concepts on the PMP Examination

Portfolio

Sub-Portfolios Programs Projects

Projects Programs Projects Sub-Programs

Projects Projects Sub-Programs

Projects

Figure 1: Project, Program and Portfolio

Why Project Management?

It’s needed to increase the likelihood of success of a project. The coordinated and directed use of resources using the global best practices to achieve the desired outcome of project greatly enhances the probability of achieving project objectives. Project Management is considered a critical business skill.

What is Project Management?

It is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. It is the art and science needed to achieve the project goals. Research indicates that over 60% of business is done in the form of projects in current environment.

PMI framework for Project Management (5 Process Groups, 10 Knowledge areas and 47 PM processes)

Project Management is accomplished through the appropriate application and integration of the 47 logically grouped project management processes, which are categorized into five Process Groups.

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The five Process Groups for Project Management are:

Initiating,

Planning,

Executing,

Monitoring and Controlling, and

Closing.

Figure 2: Process Groups Interact in a Phase or Project

*Project Management Institute Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Fifth Edition, 2013. Copyright and all rights reserved. Material from this publication has been reproduced with the permission of PMI.

Note: Process groups shouldn’t be mistaken as phases. They aren’t synonyms for Project phases. The Process groups may overlap with each other depending on the requirement of a project.

Ten knowledge areas:

The knowledge required by a Project Manager to carry out Project Management processes has been classified into ten verticals known as knowledge areas. It is important to note that project management

4 ➢ Most Frequently asked Concepts on the PMP Examination

knowledge areas are not linear. The Knowledge areas may be required to be used multiple times while managing a project.

The knowledge areas are the following:

1. Project integration management

2. Project scope management

3. Project time management

4. Project cost management

5. Project quality management

6. Project human resource management

7. Project communications management

8. Project risk management

9. Project procurement management

10. Project stakeholder management

Table 1 gives the mapping of Project Management Process groups and

knowledge areas. Remember the contents of this table by heart. In

fact, this is the only material that you need to memorize to pass this

examination. It is suggested to keep a print-out of this page & keep in

your pocket for ready reference and/or affix it near your study table.

Table 1: Project Management Process Groups, Knowledge areas and Project Management Processes*

Knowledge Areas

Project Management Process Groups

Initiating (2)

Planning (24)

Executing (8)

Monitoring & Controlling (11)

Closing (2)

Project Integration Management

1. Develop Project Charter

1. Develop Project Management Plan

1. Direct and Manage Project work

1. Monitor & Control Project work

2. Perform Integrated Change Control

1. Close Project or Phase

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Knowledge Areas

Project Management Process Groups

Initiating (2)

Planning (24)

Executing (8)

Monitoring & Controlling (11)

Closing (2)

Project Scope Management

1. Plan ScopeManagement

2. Collect Requirements

3. Define Scope

4. Create WBS

1. Validate Scope

2. Control Scope

Project Time Management

1. Plan ScheduleManagement

2. Define Activities

3. Sequence Activities

4. Estimate Activity Resources

5. Estimate Activity Durations

6. DevelopSchedule

1. Control Schedule

Project Cost Management

1. Plan CostManagement

2. Estimate Costs

3. DetermineBudget

1. Control Costs

Project Quality Management

1. Plan Quality Management

1. Perform Quality Assurance

1. Control Quality

Project Human Resources Management

1. Plan HumanResourceManagement

1. Acquire ProjectTeam

2. Develop ProjectTeam

3. Manage Project Team

Project Communications Management

1. Plan CommunicationsManagement

1. Manage Communications

1. ControlCommunications

(Contd.)

6 ➢ Most Frequently asked Concepts on the PMP Examination

Knowledge Areas

Project Management Process Groups

Initiating (2)

Planning (24)

Executing (8)

Monitoring & Controlling (11)

Closing (2)

Project Risk Management

1. Plan Risk management

2. Identify Risks

3. Perform Qualitative Risk Analysis

4. Perform Quantitative Risk Analysis

5. Plan Risk Responses

1.Control Risks

Project Procurement Management

1. Plan Procurement Management

1. Conduct Procurements

1. Control Procurements

1. Close Procurements

Project Stakeholder Management

1. Identify Stakeholders

1. Plan Stakeholder Management

1. Manage Stakeholder Engagement

1. Control Stakeholder Engagement

* Project Management Institute Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Fifth Edition, 2013. Copyright and all rights reserved. Material from this publication has been reproduced with the permission of PMI.

Tips:

1. Integration management is the only knowledge area with PM (Project Management) processes occurring in all five process groups. Similarly, PM processes related to Planning Process group are applicable in all knowledge areas.

2. There are only two PM processes in each of Initiation and Closing Process groups. You can start remembering from them.

3. Whenever the PM process name starts with Plan, Manage or Control, it is a PM process from Planning, Executing or Monitor & Control process groups respectively.

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4. You can develop your own mnemonics, for example, no human wants to be monitored, hence no PM process to Monitor and Control related to Project Human Resource Management knowledge area.

ITTOs (Input/s=>Tools & Techniques => Output/s):

There are a total of 47 Project Management Processes as mentioned in Table-1. To carry out a specific Project management Process, Tools and Techniques are applied to inputs to achieve output in defined format. This is also known as ITTO in PMI terminology. ITTO sequences are very important for this examination. The ITTOs defined by PMI (Project Management Institute) are quite logical in nature, which needs to be understood by heart. Almost 20–25 questions can be expected from ITTOs directly or indirectly. Cramming of ITTOs isn’t suggested. Dedicate a good amount of time to internalize the flow of sequence like how the output of a PM process becomes the input for a later used PM process.

Project Management Office (PMO)

It is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The following table summarizes the control of PMO on project team based on its nature.

Table 2: Types of PMO

PMO types, nature and control

Nature of PMO Supportive Controlling Directive

Control Low Moderate High

Project Manager

A Project Manager is the person who is responsible to drive the project in right direction using the available resources and power assigned to him to achieve the project goals.

8 ➢ Most Frequently asked Concepts on the PMP Examination

Note: A Project Manager is in-charge of the project and not necessarily of the resources as well.

Types of Organizations

Organizations are classified into three types (Functional, Projectized and Matrix) depending on the role and authority that a Project Manager enjoys within the organization. The functional organizations are divided along functional lines (based on hierarchy, functional divisions or experts) and on the other hand the projectized organizations (e.g. organizations for ship building, house construction etc.) are organized along the lines of projects. A mix of these two types is called as matrix organizations. In a matrix organization, generally the PM has the responsibility to manage the dual reporting relations & handle the co-ordination. Matrix organizations are further divided into weak matrix, balanced matrix and strong matrixorganizations. Weak matrix is more functional and strong matrix is more projectized in nature. A functional organization is also called as a classical organizational structure.

Question/Point to ponder: What kind of organization you are working at?

Tip: As the name suggests, a Project Manager enjoys highest authority in a projectized organization. Project Manager’s authority in increasing order:

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Frequently used terms in PMI terminology:

A) Work performance data, information & reports:

1. Work performance data (WPD): The raw observations andmeasurements identified during the course of project work aretermed as Work Performance data.Examples of WPD: Work completed till date in percentage terms Quality and technical performance measures Start and finish dates of scheduled activities Number of change requests Number of defects Actual costs Actual durations

Work performance data (WPD) are initial measurements and details about activities gathered during project work (Execution Phase).

2. Work performance information (WPI): It is the performance datacollected from various controlling processes, analyzed in contextand integrated based on relationships across areas.Examples of WPI: Performance information and status of deliverables Implementation status for change requests Forecasted estimates to complete.

10 ➢ Most Frequently asked Concepts on the PMP Examination

During controlling, WPDs are analyzed to make sure they conform to Project management plan and to assess what they mean for the project as a whole, i.e. WPI. WPI is always in a format that can be easily understood by the project stakeholders.

3. Work performance reports (WPR): These are the physical or electronic representation of work performance information compiled in project documents, intended to generate decisions or raise issues, actions, or awareness.

Examples of WPR:

Status reports Memos Justifications Information notes Electronic dashboards Recommendations Updates

WPIs can be organized into WPRs, distributed to various stakeholders who need to receive and probably act the information. WPRs are output of monitoring and controlling project work.

Tip: As the name suggests, work performance data (WPD) shall be an input to prepare work performance information (WPI) and work performance information (WPI) shall be an input to prepare work performance reports (WPR).

B) EEF & OPA

EEF and OPA are frequently used acronyms for ‘Enterprise Environmental Factors’ and ‘Organizational Process Assets’ throughout the PMBOK.

1. EEF: These are generally outside the control of project team. EEF are input to many processes, especially in initiating and planning process groups. Examples of EEF are work authorization system, commercial database, websites etc.

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Company’s work authorization systems come under the EEF, but the procedure for issuing work authorization system comes under OPA.

Work authorization system tells the right time and sequence to be followed to carry out the tasks. It is the Project Manager’s system for authorizing the start of work package/activities. Work authorization system (WAS) is a part of Project Management Information system (PMIS).

PMIS: It is like a dashboard, an online or common database may be used as PMIS. PMIS isn’t used during initiation.

2. OPA: They can be divided into the following two major types:

a. Processes & Procedures: Standard & Policies, Templates,Change control procedures, Financial control procedures, Issueand defect management procedures.

b. Corporate knowledge base: Configuration managementknowledge base, Historical information, Project files/templatesfrom previous projects, lessons learned.

Tips

1. Any type of corporate policy or formal procurement procedureis an OPA. OPA (Processes & procedures, corporate knowledgebase) may include completed schedules, risk data and earned valuedata.

2. OPA is an input to the Project charter.

C) Expert Judgment

Project team members or other experts, who are experienced and skilled for carrying out or to review a particular project management process.

Project selection Methods:

A project is selected based on the advantages that it shall offer vis-à-vis the resources it’s likely to use. It needs a careful weighing of pros and cons before a project is undertaken in terms of quantitative (profit, revenue, turnover etc.) and qualitative (strategy, feasibility etc.) analysis.

12 ➢ Most Frequently asked Concepts on the PMP Examination

Project selection methods can be classified into the following two types:

1. Benefit measurement methods (Comparative): Murder board,Peer review, scoring mode, economic models etc.

Murder board is a panel of people who try to shoot down a newproject idea.

2. Constrained optimization methods (Mathematical): Linearprogramming, integer programming, dynamic programming,multi-object programming etc.

Future Value (F.V.) = P.V.(1+i)n, where P.V. is Present value, iis the rate of return and n is the duration. Future Value is alsocalled as hurdle rate. It is a widely used formula to calculate thefuture value that the project is likely to deliver.

Note: Benefit cost ratio is based only on revenue, not on profits.

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