Scope Management

Collect Requirement

Define Scope
Project scope statement contains

Product analysis is a tool that translates product objectives into tangible project
requirements and deliverables by dissecting the product into components.

Some of the generalized methods of product analysis include:

•Use cases/modeling: These are step-by-step accounts of system behavior and

how it interacts with the user. These are very common in software development
projects, but they are also widely used in other industries.

•User scenarios/user stories: These are also step-by-step accounts, but they
take a more fictional narrative approach, and they are usually written by the
customer, user, or analyst and they describe interactions less from a system's
standpoint as they do from what the customer needs the product to do.

•Product breakdown: This approach takes a complex product and separates it

into simpler components that can be more easily described.
 •Functional analysis/functional requirements: These approaches take an even
more detailed approach than use cases, and describe in detail specific functions of
the product from the system's viewpoint.

•Systems engineering: This approach is highly different from industry to

industry, but it generally takes a broad, overall view of the product life cycle,
focusing on balancing the customer's needs, cost, quality, and complexity.

•Quality function: A quality management practice whose goal is to fully

understand the customer’s needs.

Alternatives identification looks for different approaches in performing the work

required by the project or in the methods for achieving the project's objectives. This
can result in project and organizational benefits, such as less production costs or
time, better quality, or competitive advantages.
The scope baseline is the collection of the approved project scope statement, the
work breakdown structure, and the WBS dictionary. All project baselines are the
current plans that have all approved changes incorporated into them.
The procedures for scope changes are addressed by the project’s change control
system, but some projects may need a rigorous change control system that focuses
specifically on scope impacting the scope. If so, the scope management system
will address how scope changes are logged, evaluated, documented, approved or
declined, and how approved scope changes will be handled. The scope change
control system is still part of Integrated Change Control and so is still part of
the project’s change control system.
CREATE WBS
Some of the information the WBS dictionary might contain about each component
and work package can include:

•statement of work for the deliverable component

•expanded description of the work package, including important tasks or items that
shouldn't be overlooked

•account codes, general ledger accounts, expense account numbers, labor

accounts, or time entry accounts

•responsible parties or organization

•contact information

•quality requirements
 •additional references to technical specifications or documents

•additional breakdowns of scheduled activities or costs.

Project document updates

Defining the WBS and WBS dictionary is likely to uncover additional requirements, so
updates any project documents in existence would be needed.

VERIFY SCOPE

The Verify Scope process obtains the customer and stakeholders' acceptance of the
completed deliverables. During scope verification the deliverables are compared to
the scope statement to make sure all the requirements have been met. Scope
verification is also performed by the project team throughout the project as
deliverables are ready but before the stakeholders or customers verify the
deliverables.
Since the project scope includes the requirements and acceptance criteria, it serves
as the checkpoint.

Perform Quality Control validates the deliverables against quality

requirements while scope verification is concerned with the overall acceptance
and verification against the project scope statement. The Close Project or
Phase process also includes the formal acceptance of the deliverables by the
customer (through the Administrative Closure Procedure), but its focus is
on the formalities required by the customer or the performing organization,
such as a signed acceptance document.
CONTROL SCOPE

The Control Scope process is about two things: proactively influencing the factors
that can contribute to scope changes and managing the impact of changes when
they do occur. The project manager must do all within his or her abilities to keep
changes from overwhelming the project, and that starts by having a solid project
scope statement.
SUMMARY
•Project scope management is about making sure the scope is thoroughly defined
and that unnecessary changes to it are prevented.
•The requirements management plan describes the processes and procedures for
how requirements will be collected, categorized, and prioritized.

•The requirements management plan is a subsidiary component of the project

management plan.

•The scope management plan is the planning document for how the scope will be
defined, monitored, and controlled. It also describes the process for formal
acceptance of the product.
•The scope management plan is a subsidiary component of the project management
plan.

•The scope change control system identifies the process for how scope change
requests will be submitted, logged, documented, reviewed, and approved or denied.
It is part of the overall project change control system and configuration management
system.

•The scope change control system is part of the project's change control system.

•The project scope is the work required, and only the work required, for the project
to meet its objectives.

•Product analysis includes the methods for deconstructing the product and
thoroughly understanding it.

•Alternatives identification includes methods for finding different solutions to a

proposed solution.

•Product analysis and alternatives identification are tools that help identify
requirements for the project scope statement.

•The project scope statement is created by the Define Scope. At a minimum the
project scope contains:
 •Product scope
•Product acceptance criteria
•Project deliverables
•Project exclusions
•Project constraints
•Project assumptions

•The work breakdown structure is a deliverables-oriented, visual presentation of

project components.

•The smallest level of manageable work within the WBS is the work package.

•The primary input to the Create WBS process is the project scope statement.

•The WBS is an input to activity definition, cost estimating, cost budgeting, resource
planning, and risk management planning.

•Decomposition takes deliverables and work and breaks it down into successively
smaller chunks until it can be managed, scheduled, assigned, and estimated.

•The WBS dictionary is a companion document to the WBS. It numerically references

each WBS component and work package, and it contains additional information
about each WBS element.

•The scope baseline is the collection of the project scope statement, the work
breakdown structure, and the WBS dictionary.

•The scope baseline is created when the project scope statement is approved.

•The scope baseline is a component of the project performance baseline.

•Baselines are the current, approved plans, which include approved changes.

•Through inspection, the scope verification process evaluates the deliverables to the
project scope statement.

•For exam purposes, consider that if the project scope is completed and has been
verified that the project is complete.

•The Control Scope process is about preventing unnecessary changes, and making
sure that approved changes are integrated throughout the project management plan.

•Scope control begins immediately when the scope baseline has been created (the
project scope statement has been approved).

•Scope control uses the project scope change control system, change control
system, and configuration management system.

•Within scope control, variance analysis looks at what is currently occurring and
compares it to what was planned.

•Variance analysis can result in change requests.

Time Management

The schedule management plan is a subsidiary component of the project

management plan, created in the Develop Project Management Plan process .

Define ACTIVITY
Activity types are discrete effort, level of effort (LOE), and apportioned effort
(AE).
•A discrete effort activity is one whose work directly relates to a work package or
deliverable on the work breakdown structure. These types of activities need to be
measurable since they tie directly to the project’s core objectives.
•A level of effort (or LOE) is usually an activity performed by a supporting role that
is difficult to measure, but is still related to the project’s core objectives. For
example, a salesperson acting as a liaison between the customer and the project
team would usually be performing LOE activities.
•An apportioned effort (or AE) activity is one which is usually related to project
management –it’s necessary for the efficient functioning of the project, but it isn’t
directly related to the project’s final product, service, or result.

Sequence Activities

There are three types of dependencies:

Mandatory: A required, hard logic, or inherent order to the activities. For example,
a book can't be bound until it has been printed. Mandatory dependencies can also be
caused by regulatory requirements or organizational procedures

Discretionary: A logical or preferred order to the activities. Discretionary

dependencies can be reordered if necessary but doing so may result in additional risk
factors.

External: The dependency is outside of the project, and usually beyond of its direct
controlThough sometimes external dependencies can be influenced or made
contractual (such as with a vendor or consultant), they can't usually be altered
Lags are delays or waiting time between activities.
Leads speed up activities without changing the relationships between the activities.

The Arrow Diagramming Method (ADM) creates diagrams known as activity-on-

arrow (AOA). This is because ADM diagrams use activities shown on arrows and
connected by nodes, usually shown as circles. ADM is the oldest diagramming
method, and is now infrequently used. Its drawback is that it can only show finish-
to-start (FS) relationships.

The Precedence Diagramming Method (PDM) creates diagrams known as

activity-on-node (AON). It uses nodes, usually shown as squares, to hold the
activities which are connected by arrows to show the relationships.

Estimate Activity resource requirements

Rough Order of Magnitude estimating : -25 to +75

Budgetary : -10 to +25

Definitive Estomate : -5 to +10

The resource breakdown structure (RBS) provides a categorized, hierarchical
representation of the project's resource requirements. The purpose of the resource
breakdown structure is to present the different resource types needed by a project,
and a good RBS will also assist in cost estimating. The resource breakdown structure
is not intended to show us when resources are needed, only what types are needed.

Estimate Activity Duration

Parkinson's Law states that work expands to fill the time available. This means
that if it we estimated an activity will take two weeks, it'll end up taking two weeks
even if it could have been finished it in one.

Reserve analysis looks at various factors in the project, such as risks and overall
uncertainty, and sets aside separate contingency reserves, time reserves, or buffers
that can be drawn from if activities exceed their duration.
Develop Schedule

Schedule network analysis is the various techniques used to analyze and apply
scenarios to the schedule. Schedule network analysis includes the critical path
method, critical chain method, resource leveling and smoothing, what-if
analysis, and schedule compression, as well as any other analysis methods
employed by the project manager.

The schedule baseline is not a document that is specifically created. It just comes
into existence when the schedule is approved, and it's the project schedule with
approved changes incorporated into it. Another way of thinking about the
schedule baseline is that it's the latest approved version of the project schedule.
Once the schedule baseline is established any requested changes affecting the
schedule should be directed through Integrated Change Control. Complex projects
may require a schedule change control system.(part of Change Control process
of Intregation Knowledge area)

Free Float is specific to an activity

Total float is at project level

Free float or free slack is how much leeway an activity has before an extension to
its duration delays the start of a successor activity.

Total float or total slack is how much leeway an activity has before an extension to
its duration delays the end date of the project.

Critical path actually refers to the set of sequenced activities in which any extension
to their durations will cause the project’s duration to extend. In other words, the
critical path is the set of sequenced activities that have no float. There can be
multiple critical paths within a project, and it's possible for the critical path to
change as schedule changes occur. It's important to know what the critical path
is within a project so that its activities can be monitored closely.

Schedule compression

•Crashing: Adding more resources to the activity or project. Negative: Additional

Cost

•Fast-Tracking: Allowing activities to occur in parallel that would normally have

been done sequentially. Negative: Increased Risk

Monte Carlo analysis is a computer-driven simulation technique that applies

different variables to the schedule, and the results can identify high-risk and
vulnerable areas within the schedule.

Resource smoothing is a form of resource leveling, and it tries to maintain the

most efficient use of the pool of resources types across the project by smoothing out
the peaks and valleys of the resource intensity. By working within the float of
individual activities, resource smoothing makes the demand for resource types more
level across time periods.

The critical path method (CPM) involves identifying and analyzing the activities
that have the least flexibility in the project schedule

While the critical path is sequence of activities with the longest duration, the
critical chain is the longest sequence of dependent (and not necessarily
sequential) activities that prevent the project's duration from being any
shorter. The Critical Chain Method (CCM) recognizes that crucial events may not be
sequential nor may they be even within the same project. The primary difference
between the critical chain method and the critical path method is its approach to the
schedule. The critical chain method can be thought of as encouraging a relay
race within the project team against the schedule while the critical path
method focuses on maintaining and meeting the schedule.

The Critical Chain of a project is the longest chain of dependent events, considering
both task and resource dependencies. It is this chain of events that is most likely to
determine how long a project will take to complete.
Critical chain tasks are performed with the Relay Runner Work Ethic. Team
members start and complete these tasks as quickly as they can (no more Student
Syndrome), and pass the work (baton) on to the next resource as early as they can
(no more Parkinson’s Law). The team member performs the task in as dedicated a
manner as possible.
Control Schedule

Approved changes coming out integrated change control will result in updates to the
schedule baseline. Any updates to the schedule baseline, for whatever reason, require
changes to all components involved, including the schedule model data, project
schedule network diagrams, and the schedule management plan

Summary
•The Define Activities process results in the activity list, activity attributes, and
milestone list.

•The activity list is decomposed from the work packages in the WBS.

•The activity attributes contains supplemental information about activities. It is a

companion document to the activity list.

•The Sequence Activities process establishes the order for activities.

•Activity dependencies may be mandatory, discretionary, or external.

•There are four activity relationships: Finish-to-Start (FS), Finish-to-Finish (FF),

Start-to-Start (SS), and Start-to-Finish (SF). Finish-to-Start is the most common
activity relationship.

•Leads speed up the start of activities.

•Lags slow down the start of activities.

•The project schedule network diagram (PND) graphically shows the flow of
sequenced activities from the project start to project end.

•Hammock activities are summary, high-level activities.

•A portion of the PND is called a subnetwork or fragment network.

•There are two diagramming method: Arrow Diagramming Method (ADM) and
Precedence Diagramming Method (PDM). PDM is the most common.

•ADM produces activity-on-arrow (AOA) diagrams, which can only show finish-to-
start relationships through zero-duration "dummy" activities.

•PDM produces activity-on-node (AON) diagrams.

•The primary output of the Sequence Activities process is the project schedule
network diagram.

•The Estimate Activity Resources process identifies the types of resources needed for
the project and in what quantities.

•Resource calendars show the resource quantities available and when resources can
be active or idle.

•The resource breakdown structure (RBS) is a hierarchical, graphical, categorized

representation of the resource types and quantities needed for the project. It's
similar in appearance to the WBS.

•The main outputs of the Estimate Activity Resources process are the activity
resource requirements and the resource breakdown structure.

•There are three general classifications for estimate accuracy:

•Rough order of magnitude: -25% to +75% accuracy
 •Budget estimate: -10% to +25% accuracy
•Definitive estimate: -5% to +10% accuracy.

•Approaches to estimating can be classified as top-down estimating or bottom-up

estimating. Bottom-up estimating is the most reliable.

•Analogous estimating relies on similar activities from past projects as the basis for
estimating.

•Parametric estimating uses mathematical formulas as the basis for estimating.

•The Estimate Activity Durations process determines how many work periods each
schedule activity will take.

•Effort is the level of work required for an activity while duration is how many work
periods the activity will take.

•Parkinson's Law states that work expands to fill the time available.

•Standard deviation identifies how diverse the data population is.

•A simplified standard deviation formula is: (Pessimistic - Optimistic) / 6

•Three-point estimates provide a weighted average. The formula for three-point

estimates is:
(Pessimistic estimate + (4 x Most Likely estimate) + Optimistic estimate) / 6

•Contingency reserves (also called buffers) are additional time allocated to the
project or to activities that can be drawn from if durations exceed their estimates.

•The Develop Schedule process results in the approved project schedule, known as
the schedule baseline.

•Schedule data is supplemental information about the schedule used to establish the
project schedule.

•Schedule network analysis is the various techniques applied to the schedule. This
includes scenarios, schedule compression, and resource leveling.

•Constraints restrict when activities can begin or end. The four types of constraints
are:
•Start no earlier than (SNET)
•Start no later than (SNLT)
•Finish no earlier than (FNET)
•Finish no later than (FNLT)

•Float (or slack) is how much an activity's duration can extend without delaying
successor activities or extending the project's duration.

•Schedule compression uses crashing or fast-tracking to reduce the duration of the

project or activities. Crashing adds more resources to the project while fast-tracking
allows activities to run in parallel that would not normally do so.
•Crashing increases costs while fast-tracking increases risks.

•Monte Carlo Analysis is a computerized scenario technique that identify

vulnerabilities in the schedule.

•Resource leveling matches resource use to the organization's ability to provide

those resources.

•The Critical Path Method identifies and analyzes the activities that have the least
flexibility in the project schedule.

•The critical path is the sequence of activities that have no float. It’s the longest
path(s) within the project schedule network diagram.

•A critical activity is an activity on a critical path in the project.

•The Critical Chain Method focuses on potential bottlenecks in the scheduled

activities due to scarce resources. Buffers of reserve time are placed at crucial
junctures on the critical chain that can be drawn from if durations are exceeded.

•The Control Schedule process focuses on monitoring the schedule for variances and
progress, managing approved changes, and controlling the schedule from
unnecessary changes.
Cost Management
The cost management plan is a part of the project management plan, and it
provides guidance for all the cost processes. It is created in the Develop Project
Management Plan process (4.2). It establishes how project costs will be planned for,
estimated, organized, reported on, forecasted, and managed.

Major factors affecting costs

Risks (Risk Register)

Cost of Quality (TT)
Total Cost of Ownership/Life-Cycle (OPA)
Market Condition (EEF)

Reserve analysis evaluates risks by making financial allowances for them in the
project’s funding requirements.
Vendor bid analysis involves additional techniques to ensure that the bids and
work they represent are accurate, reasonable, and acceptable.
Basis of estimates is the supporting detail to the activity cost estimates. What it
contains depends upon the project and activity type, but it includes documentation
on how the estimate was arrived at, what assumptions were made, what constraints
were in place, its range of accuracy, and the confidence level in the estimate.
Determine Budget

To create the project budget and cost baseline, we'll rely primarily on the activity
cost estimates, but we'll also use the project scope statement, WBS, and any project
contracts since they'll contain cost constraints. Since both the project budget and
project cost baseline will be aggregated to show costs by calendar periods, we'll need
the schedule to determine when costs will be incurred. The WBS can also be used to
aggregate the activity cost estimates to the work package and deliverable level,
providing another means of cost control and reporting.

Project funding requirements

Cost performance baseline

The cost performance baseline is a time-phased budget that is used for project cost
management, monitoring, and reporting. Though they're both derived from the
same source, the project budget and project cost baseline are not interchangeable
terms. The project cost baseline is normally shown as an S-curve graph, and
other project accounting measures, like its actual project expenditures, are also
shown plotted on the graph.
Funding limit reconciliation matches the project's planned need for funding with
the organization's ability to provide that funding. It can be thought of as "resource
leveling" for finances because it reschedules activities to make sure that the
budget for the scheduled activities doesn't exceed the available budget for
that period. For instance, if the estimated cost for scheduled activities in the second
month of a project is estimated to be $50,000, but the organization can only provide
funding for $40,000 then there is $10,000 of work that has to be rescheduled to
another month.
Project funding requirements refers to the entire estimated cost of the budget,
including any contingency or management reserves.

Control Costs

The project cost change control system provides the processes and procedures
for requesting, logging, reviewing, and implementing cost changes. It is a
component of the project change control system, and since most project
changes have a cost ramification, it's important for the cost change control system to
be well-established and communicated so that everyone knows the procedures to
follow.
Plan Quality

Inputs :

Tools and Techniques

Processes
Perform Quality Assurance
Perform Quality Control
Quality Management Summary

The Project Quality Management knowledge area includes the processes that make
sure the deliverables meet the customer's requirements. Fully understanding both
the explicit and implicit requirements are important because quality is based solely
on fulfilling the customer’s expectations. Another important facet of the quality
approach is that the processes involved in the deliverables should be continually
improved, which will result in a product of lower cost to the customer. PMI's
approach to project quality is compatible with modern quality programs, including
Six Sigma and Total Quality Management. The ISO 9000 standard helps companies
establish a framework for their quality processes.

The Plan Quality process establishes the project quality management plan, the
process improvement plan, quality checklists, and quality metrics. The
organization's quality policy, if one exists, serves as the basis for the project quality
management plan. The project scope statement and stakeholder register are needed
during quality planning because they contain the expectations and specific
acceptance criteria the deliverables must meet. The project management team will
establish the quality, grade, tolerances, control limits, accuracy, and precision
requirements. There are several tools and techniques that will assist during quality
planning, and these include cost of quality, cost-benefit analysis, benchmarking,
design of experiments, affinity diagrams, force field analysis, nominal group
technique, and matrix diagrams.
The Perform Quality Assurance process executes the quality management plan
and the process improvement plan. Quality assurance activities are focused on the
processes and not the deliverables. Measurements from the quality control process
and work performance information are used to look for prevention opportunities and
process improvements. Process analysis is a technique that looks for non-value
added activities within processes, and quality audits are a means of making sure that
the project is following the quality policy.
Perform Quality Control is concerned with making sure that the deliverables meet
the quality requirements. Perform Quality Control results in validated deliverables.
When a non-compliance issue is found, its root cause needs to be determined so
that it can be prevented from happening again. Special causes are unusual events
that are usually preventable, while common causes are normal events within the
process that are usually not preventable. Sigma values are related to standard
deviation the values for 1-, 2-, 3-, and 6- sigma are 68.25%, 95.46%, 99.73%, and
99.99%.
There are seven main tools of quality control. The cause and effect diagram looks
like a fishbone, and it shows what factors are contributing to an issue or problem.
The run chart is a line graph that displays measurements over time, and can help
detect changes in a process. The control chart is a type of run chart that has upper
and lower control limits, and it's used to determine whether a process is in control or
out of control. Flowcharts graphically show the steps, sequences, and decision
points in a process, and a histogram is a bar chart that shows categorized
measurements. A Pareto chart is a bar chart showing the categorized
measurements in descending order, so that the causes of the greatest problems can
be addressed first. A scatter diagram can show if there's a relationship between
two measurements.
Risk Management

Risk management planning involves:

•Defining what risk management activities will occur

•Establishing the allotted time and cost for risk management activities
•Assigning risk management responsibilities
•Deciding how risk probability and impact will be measured
•Deciding on acceptable risk thresholds and tolerances
Risk categories are shown on a risk breakdown structure, which is a hierarchical,
graphical display of risk categories similar in appearance to the work breakdown
structure having multiple tiers of related risk classifications.

Identify Risks
In the Identify Risks process, we’ll develop the risk register, which is a
comprehensive list of all threats and opportunities that might be encountered on the
project. The risk management plan is a key input to this process because it
establishes the time and budget allocated to identification activities, and it also
describes what activities will be used to uncover risks.

Methods to identify risks

Information gathering techniques like Brainstorming, Delphi Method, Interview,

survey, root cause analysis etc
Diagramming techniques involve Flow Charting, Cause & effect diagrams (Ishikawa
Diagrams), Influence diagrams
Document review may uncover following
Integration Management
Lack of coordinated planning across the project management processes; poor
business case, executive support, authority and power levels; inadequate change
control.
Scope Management
Inadequate scope definition; lack of stakeholder involvement in defining scope;
conflicting expectations; poor scope control processes.
Time Management
Inaccurate duration and resource estimates; improperly sequenced activities; activity
dependencies not documented; poor schedule control processes.
Cost Management
Inaccurate cost estimates; insufficient tolerances in the budget; inadequate project
accounting procedures; poor cost control processes.
Quality Management
Incomplete checklists; Vague quality goals or metrics; poor quality planning.
Human Resource Management
Poor management and leadership skills of the project manager; unclear project
responsibilities; inadequate skills of team members.
Communications Management
Incomplete stakeholder identification and analysis; poor communications planning;
inefficient communication methods and processes between team members;
inadequate issues management.
Risk Management
Incomplete risk identification; improper risk prioritization; lack of contingency plans;
inadequate contingency reserves; poor risk planning.
Procurement Management
Incomplete statements of work; poor contract change control.
The risk register is a complete and running list of project risks, and it's an input to
all risk processes.
Risk - 11.2
Risk Owner: 11.2
Risk category: 11.2
Root cause: 11.2
Potential response: Responses to risks are planned in Risk Response Planning
(11.5), but potential responses may become obvious during risk identification and
should be captured in the risk register. 11.2
Impact: 11.2 - 11.4
Probability: 11.2 - 11.4
Symptoms/Warning Signs: Any specific conditions likely to trigger the risk or
symptoms that the risk is about to occur should be identified. This will help during
risk monitoring. 11.2, 11.5
Risk Score: The probability and impact score for the risk. This is obtained from a
formula (usually probability x impact) defined in the risk management plan and
generated from the probability and impact matrix. 11.3
Risk Ranking/Priority: This is the prioritization or relative ranking for the risk that
allows efforts to be spent more effectively on the higher priority risks. 11.3
Risk Response: 11.5
Risk Response Responsibilities: 11.5
Secondary Risks: Risk responses can often raise new risks. 11.5
Risk Response Budget: 11.5
Risk Response Schedule: The scheduled activities necessary to put the risk
response into action. 11.5
Contingency Plan: These are the actions that will take place should the risk
response fail. The contingency plan also establishes under what criteria it's to be
enacted. 11.5
Fallback Plan: The fallback plan is a backup to the contingency plan should it fail.
11.5

Project documents
Project documents outside of the project management plan can be used to uncover
risk elements.

Enterprise environmental factors

Commercial databases, checklists, benchmarking, and industry-specific articles may
help uncover risk elements.

Organizational process assets

Lessons learned, risk identification templates, and historical project information may
help identify risks.

Perform Qualitative Risk Analysis follows risk identification, and it prioritizes risks
based on their likelihood of occurring and their potential impact to the project
objectives. Prioritization is needed because risk identification uncovers a large
number of risks having at least some potential to influence project objectives.
Tools and Techniques

Risk probability and impact assessment

This assessment investigates each identified risks to expose the probability and
impact to all the project objectives. This data is used to prioritize or rank risks.

Probability and impact matrix

The probability and impact matrix uses an established rating criteria and scoring
formula for assigning a score to identified risks based on their probability and
impact.

Risk data quality assessment

Before qualitative analysis is performed, the risk data gathered should be reviewed
for accuracy, reliability, and integrity. Otherwise, the analysis will be based on flawed
data.

Risk urgency assessment

Qualitative analysis may uncover risks that are imminent. These may need fast-
tracked into subsequent risk processes for immediate attention.

Perform Quantitative Risk Analysis

Sensitivity analysis looks individually at each project objective and measures how
uncertainty could impact that objective. This makes it possible to identify what risks
have the greatest potential impact, and can show how uncertainty can impact project
objectives.
Tools and Techniques

Data gathering and representation techniques

Quantitative analysis may require additional risk data that can be gathered from
estimates obtained through interviews and expert judgment.

Quantitative risk analysis and modeling techniques

Sensitivity analysis, decision tree analysis, expected monetary value, modeling, and
simulation help to quantify risks and their impacts.

Plan Risk Response

The risk response determines the strategy for influencing the probability and
impact of the risk before it occurs. For negative risks, its aim is to eliminate the risk
or reduce its impact should it occur. For positive risks, the response tries to increase
the probability or impact of the risk. The activities that support the risk response are
taken before the risk occurs.
A contingency plan aims to influence the impact of a risk that is occurring. The
risk response occurs before the risk and tries to alter the probability and/or impact
while the contingency plan only occurs after the trigger (usually the risk event) and
focuses only on changing the impact.

The fallback plan kicks in if the contingency plan fails. It can be looked at as a
contingency plan for the contingency plan.
Monitor and Control Risks

Activities in the Monitor and Control Risks process include:

•Watching for new risks

•Analyzing identified risks for changes in probability or impact

•Determining the need to execute contingency or fallback plans

•Reviewing risk response actions and their effectiveness for risks that are underway,
and if necessary determining the need to implement fallback plans
•Keeping a close eye on the risk watchlist

•Monitoring residual risks

•Watching for any assumptions that aren't holding true

•Making sure the risk management plan and risk management policies and
procedures are followed

•Analyzing risk data, identifying trends, and producing risk reports

•Ensuring that appropriate records are maintained, including lessons learned

documentation about risks

•Instigating recommended changes and preventative or corrective actions as a

response to results uncovered from risk monitoring and control

Risk Audits review the effectiveness of the project risk management plan. Risk
audits can also refer to analyzing whether the risk response actions were effective
and what impact they had on the project's overall risk level.

Risk reassessment looks at individual risks to make sure their characteristics

remain as originally planned, and it also makes sure that a mechanism and
environment are in place so that new risks can be identified. Any desired or needed
changes discovered during reassessment are funneled through integrated change
control for further review and approval.
Variance and trend analysis
Deviations from the project plan can be indicators of a change in risk. Project
variance tools, such as earned value analysis can indicate that current performance
is not in line with what was planned.

The difference between Funding Requirements and Cost performance baseline is

Management reserve.

Contingency reserve is added to Budget as part of determine budget.

BAC accounts for Contingency reserve but not Management Reserve.

Summary of Risk Management

A risk is any uncertain event with consequences either detrimental to the project
(threats) or beneficial to the project (opportunities). The purpose of project risk
management is to increase the probability and impact of positive events and
decrease the probability and impact of events adverse to the project. Risks affect
scope, time, cost, or quality objectives, but not every risk will warrant a response if
the probability and impact of the risk is acceptable or efforts to respond to the risk
would outweigh its benefits.

Activities in the Plan Risk Management process define the approach and
methodology for project risk management activities by creating the risk management
plan. Risk management should be proactive and applied consistently throughout the
project, and the level of risk management planning depends upon many factors, such
as the cost, priority, and importance of the project, but even minor projects need a
risk management plan. The plan details the risk management methodology, budget,
schedule, and responsibilities for risk management. It also defines the risk
categories, shown as the risk breakdown structure, and it establishes the probability
and impact rating method. The risk ratings and scales are later used on the
probability and impact matrix, which "scores" risks against the project's objectives.

The Identify Risk process uncovers all risks and creates the risk register, which is
the running list of all risks and their characteristics. Risk identification occurs
frequently throughout the project because risks are prone to change, and it may
involve a broad range of participants, including the project manager, project team,
stakeholders, subject matter experts, risk professionals, vendors, and the customer.
Risks are uncovered by reviewing the project management plan components, such as
the schedule, and the project scope statement. Further information gathering
techniques will also be required like brainstorming, interviewing, and SWOT analysis.
Cause-and-effect diagrams, flow charts, and influence diagrams can help uncover
risks and root causes.

Perform Qualitative Risk Analysis prioritizes identified risks so that efforts can be
focused on high priority risks. Qualitative risk analysis scores risks using the rating
system established by the risk management plan and through probability and impact
matrices. Qualitative analysis results in a priority list of risks, a watchlist of low
priority risks, and a list of risks requiring urgent action. Through qualitative analysis,
it may also be found that some risks need more detailed analysis, and those are
earmarked for quantitative analysis.
Perform Quantitative Risk Analysis is a more detailed study of risk impacts and
probability. Quantitative risk analysis usually relies on three-point estimates to
gauge the probability and impact. Expected monetary value (EMV) is the long-term
average outcome of a risk, and it's calculated by multiplying the outcome by the
probability. EMV is used in decision tree analysis, which is a structured way of
presenting the implications of a problem with multiple solutions. Neither EMV nor
decision trees provide definite predictions about an outcome.

Plan Risk Responses decides what strategies will be undertaken to influence risks,
and what contingency and fallback plans will be executed if the risk occurs. The
strategies for threats are avoid, mitigate, and transfer; the strategies for
opportunities are exploit, enhance, and share. Accept and contingent responses are
applicable to both positive and negative risks. Responsibilities for carrying out the
actions are assigned to the risk action owner. The contingency and fallback plans will
be executed only under specific circumstances that have been defined, often the
occurrence of the risk event.

Risk Monitoring and Control makes sure that risk responses are effective, and if
not, determining that contingency or fallback plans should be enacted. This process
also analyzes risks for any changes, such as a low-priority risk from the watchlist
becoming a high-priority risk. Other activities in risk monitoring include documenting
lessons learned and ensuring that risk management policies and procedures are
followed. Risk audits determine the effectiveness of the project risk management
plan. Requested changes and preventative or corrective actions are often necessary
to project components.
Notes

In AOA(Activity on Arrow) arrows show the activities and the nodes depict the
dependencies between the activities .

Value analysis involves finding a less costly way to do the same scope of work.

Administrative Closure Vs Project closure

Administrative Closure. This is the process of preparation of closure documents

and process deliverables. This includes the release and redistribution of the Project
Resources.

Project closeout includes the following key elements:

• Turn over of project deliverables to operations
• Redistributing resources—staff, facilities, equipment, and automated systems
• Closing out financial accounts
• Completing, collecting, and archiving project records
• Documenting the successes of the project
• Documenting lessons learned
• Planning for Post Implementation Review

GERT is the only diagramming technique that allows loops.

A work authorization system helps tell the team when work should begin on work
packages.
A change control system helps track, approve or reject, and control changes.
A project management information system (PMIS) helps the project manager know
how the project is going.
a configuration management system addresses controlling documents , who should
have access to Control documents and which is one current version to be used.

Scope verification focuses on customer acceptance of a deliverable while product

verification is focused on making sure all the work is completed satisfactorily and all
product features are working as expected.

HR theories and names

Maslow’s Hierarchy of needs (bottom to Top)

Physiological
Safety
Social
Esteem
Self realization (actualization)

Herzberg Hygiene

Herzberg found is that adding hygiene factors may decrease job dissatisfaction
but it will not motivate employees.
McGregor’s Theory X and Y

X: Need constant monitor and Micro Management.

Y: They r professional , u can trust them

Occhi’s Theory Z : Theory Z managers believe that employees are motivated by

stability, longevity, and involvement in the decision-making process.

Contingency theories propose that there is not a single, best leadership style that
is effective in all situations, and managers must change their style to best fit the
circumstance.

Stages in team Development

Expectancy Theory

Valence: The person wants to achieve the goal.

•Expectancy: The person believes it's possible to attain the goal.

•Instrumentality: Instrumentality is a judgment the person makes about whether

he or she believes that the reward will be given.

Achievement Theory

•Achievement: Needs are driven by an internal and external sense of

accomplishment, challenging goals, advancement, and feedback.

•Power: Needs are driven by a desire to be influential, make an impact, or have

personal status, power, and prestige.
•Affiliation: Needs are driven by people-oriented relationships, such as wanting to
be popular and well liked.

There is a mix of each of these needs in everyone, so to motivate someone well the
reward must include the right elements to fulfill the person's mix of needs.
McClelland also suggested that people driven by achievement needs were the ones
who get the most results in an organization, and so they should be consistently
encouraged through positive feedback and recognition of their efforts.

Develop Humar resource Plan

Acquire Project Team

Input : Human resource Management Plan

Develop Project Team

Reason for Conflict

1. Schedules
2. Priorities
3. Manpower/human resource availability
4. Technical opinions
5. Procedural or project administration
6. Personalities
7. Costs

Conflict resolution

Outputs

Enterprise environmental factors updates

Updates as a result of Manage Project Team includes items such as performance
appraisals.
Organizational process assets
Updates to the organization include lessons learned and checklists or templates
that may have been developed or improved upon.

Change requests
Staffing changes, for whatever reasons, are treated as change requests. Team
performance issues can also result in the need for corrective or preventative actions.

Project management plan updates

Approved changes result in updates to the human resource plan or its
component staffing management plan.

Summary

Human Resource Planning develops the human resource management plan and the
staffing management plan. This component of the project management plan includes
how project staff will be acquired, how they'll be trained, how their performance will
be assessed, how they'll be recognized and rewarded for their contributions, and how
they'll be released from the project. The project management team needs to
consider the business units, departments, or divisions involved in the project; the
professional disciplines involved; the geographic locations involved; and the formal
and informal reporting relationships.

The roles and responsibilities are also defined during HR planning, and it's used
during staff acquisition and appraisals. This document describes each project role, its
responsibilities, authority, and the competencies needed to fulfill the role. Activity
responsibilities are shown on a responsibility assignment matrix (RAM), which can
include RACI tables. The project organization chart is a graphical representation of
the project roles and their reporting relationships.

The Acquire Project Team process results in people being assigned to project roles
through project staff assignments. Virtual teams can diminish geography as a factor
in deciding who can fill what project roles while co-location can help make a team
more efficient by gathering the team into one central location. The project manager
will usually have to negotiate with functional managers and other project managers
for resources. The goal of negotiation is not to win at the expense of the other party
but to aim for a win-win solution for all parties.

The Develop Project Team process is centered on making the team as efficient as
possible through team-building activities and training of team members. Team
performance assessments are used by the project management team to determine
how effective team-building and training activities are. Involving the project team in
as many project planning activities as possible is a way to foster team development
and to help generate commitment by the team to the project's goals.

Ground rules are essential for the project team because it establishes what
acceptable behavior from team members is. Negative team roles inhibit the team
from performing well. These negative roles are referred to follower, devil's advocate,
aggressor, blocker, recognition seeker, topic jumper, disruptor, dominator, and help
seeker. The team should self-manage and stop negative team roles when they
appear. Through recognition and rewards, project team members' past behavior is
acknowledged and future desired behavior is encouraged.
The Manage Project Team is a monitoring and controlling process, and so it's
concerned with properly managing changes as well as reviewing work performance
information for preventative or corrective actions that need taken. Project
performance appraisals help gauge individual team member effectiveness.
Observation and conversation are important components for monitoring team
member performance.

The team is responsible for conflict resolution. Conflict is a healthy occurrence within
the team, and the goal is not to avoid healthy conflict. The best conflict resolution
technique is problem-solving, which is a logical approach that thoroughly examines
the problem to determine the best solution. This approach is the one that's most
likely to result in a win-win solution for everyone involved.

Laisserz-Faire: Laissez-faire leadership, also known as delegative leadership, is a

type of leadership style in which leaders are hands-off and allow group members to
make the decisions. Researchers have found that this is generally the leadership
style that leads to the lowest productivity among group members.

A Responsibility Assignment Matrix (RAM)[1], also known as RACI matrix ( or Linear

Responsibility Chart (LRC), describes the participation by various roles in completing
tasks or deliverables for a project process. It is especially useful in clarifying roles
and responsibilities in cross-functional/departmental projects and processes.
RACI is an acronym derived from the four key responsibilities most typically used:
Responsible, Accountable, Consulted, and Informed.
Communications Management

Identify Stakeholders
Methods
Salience Model: Salience refers to the level of power, legitimacy, and urgency
stakeholders have in the project.

GRID : Grids are a tool to plot a stake holder’s position along two axes that each
represents a separate key factor. The two axes split the grid into four quadrants, and
where the plotted point falls gives us an indication of what level of participation the
stakeholder needs and how much effort the project manager will want to expend on
meeting the stake holder’s expectations.
Stakeholder analysis
Stakeholder analysis uses a variety of techniques to qualitatively and quantitatively
identify the interest, expectations, influences, and needs of stakeholders. Example
GRID and Salience Model
Plan Communications
Activities in the Plan Communications process improve the project by determining
what information everyone expects, who receives what information, when
information will be provided, and how it will be delivered.

Tools and Techniques

Communications requirements analysis

Communications requirements analysis identifies the minimum information, type,
format, and frequency needed that will contribute to the project's success or where a
lack of communication can lead to failure.

Communications technology
The technologies available and applicable to the project affect planning for
communications. The size of the project, geographical disbursement of the team,
overall project duration, and application area of the project have a bearing on which
technologies will be most effective.
 
Communication models
Communication models illustrate how information passes from the sender to the
receiver(s). They include encoding, feedback, medium, noise, and decoding.

Communication methods
Communication methods are how information is shared. Methods fall into three broad
categories: interactive communication, push communication, and pull
communication.

Distribute Information
The Distribute Information process gets general project information to those who
need and expect it by executing the communications management. This process also
ensures that project documents are archived and that lessons learned are collected,
documented, and stored for later project teams.
Tools and Techniques

Communication methods
Communication methods are how information is shared. It includes meetings,
conversations, presentations, and conferences.

Information distribution tools

Communication is distributed via a variety of means that are appropriate for the
message and content. Distribution tools include hard copy reports, electronic
databases, e-mail, telephone, voice, video conferences, webinars, postal mail,
websites, intranet, and project portals.

Manage Stakeholder Expectations

The Manage Stakeholder Expectations process uses communication and

interpersonal skills to keep stakeholders satisfied and engaged in the project and to
uncover, address, and resolve stakeholder issues. Activities in this communication
process execute the stakeholder management strategy as defined in Identify
Stakeholders

Report Performance
Activities in the Report Performance process gather, compile, and distribute
information related to the project performance measurement baseline, which include
scope, schedule, cost, and quality. Activities in this process are focused on
comparing actual work to what was planned.
Distribute Information is concerned with general project information, such as
meeting minutes, issues, and correspondence. Report Performance focuses on
performance reporting against baselines, such as scope, schedule, cost, or quality.

Report Performance uses time, cost, and related work performance information.

Because Report Performance compares what is actually occurring with what was
planned, it's in the Monitoring and Controlling process group. Distribute Information
is an executing process.

Forecasting
A forecast aims to predict future performance based on historical information or the
current situation. Providing forecasts is another element of the Report
Performance process.
Following methods are used in forecasting

Time Series
These methods involve using historical data to predict future results. They involve:
Trend estimation: This method uses measurements over a period of time to
develop a forecast for the future.

Moving average: A moving (or rolling) average is used to keep short-term

fluctuations from causing erratic predictions.

Exponential smoothing: Exponential smoothing is similar to a moving average,

except it applies a decrease weight to older measurements to better reflect more
recent trends.
Linear prediction: A mathematical technique that can be used for linear systems.
Linear systems are those whose current outputs are highly dependent upon past
inputs, and therefore predictable.

Growth curve: A growth curve is a set of past and regular measurements plotted
onto a graph.

Extrapolation: Uses formulas to determine what a future measurement will be

based on a set of known measurements.
Casual/econometric
These forecasting methods attempt to identify the factors that influence an outcome
and thereby be able to predict behavior. These methods include:
Regression analysis: This method relies on determining the dependencies and
relationships of variables that can influence an outcome.

Autoregressive moving average (ARMA) and Autoregressive integrated moving

average (AIRMA): These methods uses a time series of measurements and the Box-
Jenkins model, which incorporates an autoregressive (AR) part and a moving
average (MA) part.

Econometrics: These methods combine principles from economics and statistics to

predict future behavior.

Judgmental Forecast depends on some form of Expert Judgement.

Notes

Plan Package : Items in WBS whose details not yet known

Plan Component: Equivalent of Plan package in Activity list

Tornado diagram
A Tornado diagram, also called tornado plot or tornado chart, is a special type of Bar
chart, where the data categories are listed vertically instead of the standard horizontal
presentation, and the categories are ordered so that the largest bar appears at the top of
the chart, the second largest appears second from the top, and so on. They are so named
because the final chart appears to be one half of a tornado. This diagram is useful for
sensitivity analysis – comparing the relative importance of variables.

Sensitivity Analysis
Sensitivity analysis (SA) is the study of how the variation (uncertainty) in the output of a
mathematical model can be apportioned, qualitatively or quantitatively, to different
sources of variation in the input of the model.[1] Put another way, it is a technique for
systematically changing parameters in a model to determine the effects of such changes.

Salience model

Start no Earlier then Constraint (SNETC)

Resource Smoothing

Change Control System

PMIS

Multi objective

Process Improvement plan is part Proj Mgmt plan not Quality Mgmt Plan

Gold Plating is form of Scope Creep

Procurement Management Plan . (only 1 for project even if there are multiple
Contracts)

Single Source (one qualified seller) versus Sole Source (only one seller in market
place)

Para lingual communication : Pitch and tone of communication