Chapter 41: Summary - Project Management Knowledge Areas

Not all project management knowledge areas apply to all projects or project phases. Knowledge areas can interact and overlap.

All the 42 project management processes in the PMBOK are part of one of the nine project management knowledge areas:
1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human resource Management
7. Communications Management
8. Risk Management
9. Procurement Management

Project Integration Management

The processes that are part of Project Integration Management are:
1. Develop project charter
2. Develop project management plan
3. Direct and manage project execution
4. Monitor and control project work
5. Perform integrate change control
6. Close project or phase

Project Scope Management

The five processes that are part of Project Scope Management are:
1. Collect requirements
2. Define scope
3. Create WBS
4. Verify scope
5. Control scope

Project Time Management

The six processes that are part of Project Time Management are:
1. Define activities
2. Sequence activities
3. Estimate activity resources
4. Estimate activity durations
5. Develop schedule
6. Control schedule

Project Cost Management

The three processes that are part of Project Cost Management are:
1. Estimate costs
2. Determine budget
3. Control costs

Project Quality Management

The three processes that are part of Project Quality Management are
1. Plan quality
2. Perform quality assurance
3. Perform quality control

Project Human Resource Management

The four processes that are part of Project Human Resource Management are
1. Develop human resource plan
2. Acquire project team
3. Develop project team
4. Manage project team

Project Communication Management

The five processes that are part of Project Communication Management are
1. Identify stakeholders
2. Plan communications
3. Distribute information
4. Manage stakeholder expectations
5. Report performance

Project Risk Management

The six processes that are part of Project Risk Management are:
1. Plan risk management
2. Identify risks
3. Perform qualitative risk analysis
4. Perform quantitative risk analysis
5. Plan risk responses
6. Monitor and control risks

Project Procurement Management

The four processes that are part of Project Procurement Management are
1. Plan procurements
2. Conduct procurements
3. Administer procurements
4. Close procurements

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Chapter 25: Integration Management during Monitoring & Controlling the Project

Aim: To understand the following two processes related to Project Integration Management Knowledge Area in Monitoring & Controlling Phase.

• Monitor and Control Project Work
• Perform Integrated Change Control

Exam Trivia:

Why is monitoring and controlling important? In general, all project failures and cancellations can be tracked back to the lack of effective controls in one or more of these areas: scope, cost, quality, and risk management.

Factors That Cause Project Change

To effectively monitor and control a project, the project manager must prepare organizational processes that work like sentinels on the fence. These sentinels help the project manager identify events (people, cultural, or strategic) that might force a change to the project or the environment where the project is executing. In other words your project will be influenced by elements outside of its normal execution and identified risks. These processes can include elements, such as

• Execution trend analysis
• Risk trigger management
• Forecast reports (just like the weather)
• Work package progress status and variances reports
• Lessons learned from similar projects
• Best practices
• Corporate strategy committee resolutions

Some examples of project control processes and their elements are

• You could use earned value analysis to determine how your project is performing against the planned activities, schedule, and cost.
• You can prescribe corrective or preventive actions after performing trend analysis in work packages variances.
• You can identify a potential project change request after evaluating defect and frequency control charts.
• When executing enterprise projects, you can arrange a monthly meeting with the company CEO to discuss progress and new corporate initiatives.

Exam Trivia:

Monitoring and controlling is an iterative group of processes. Milestones tend to have a compilation of work packages and deliverables under them. If you monitor and control activities only at their completion you might not learn of problems until late in the project. Like the autopilot in an airplane, the main function of project control is to make frequent minor course corrections instead of waiting until you are far off the planned course.

Monitor and Control Project Work

The monitor and control project work process is the first process in the monitoring and controlling process group. This process formally specifies what the project manager requires as inputs to properly monitor and control the project execution activities.

The table shows the inputs, tools and techniques, and outputs for the monitor and control project work process.

Monitor and Control Project Work
Inputs	Tools & Techniques	Outputs
Project management plan Performance reports Enterprise environmental factors Organizational process assets	Expert judgment	Change requests Project management plan updates Project document updates

As you can see, this process is a high-level process that requires expert judgment on the part of the project manager to assess whether the project is within the constraints of the plan or not. Any deviations require intervention or requests for changes to the plan.

To know more about the Monitor & Control Project Work process http://getpmpcertified.blogspot.com/2011/07/chapter-74-monitoring-and-controlling.html

Perform Integrated Change Control

When an opportunity for change is identified, the project manager must make the time to acknowledge the request for change, evaluate its associated risks, and consider its potential not just to the timeline but also to the other aspects of the project namely scope, cost, staff, quality, make or buy, and communication. The perform integrated change control process helps you to identify if a requested change is gold plating or if it has direct effect to the project deliverables and its return on investment.

Exam Trivia:

What is gold plating? Gold plating is a change to the project or a work package within the project that has not gone through an adequate change control management process. Such requests often initiate from informal requests. Ensure all change requests are routed through the formal procedures. Remember that during your practical experience as a Project Manager, your organization may endorst Gold Plating & even suggest to all Managers that they deliver more value to customer by means of gold plating. But, as per PMI gold plating is incorrect and we must deliver only what was promised as part of the Projects Approved Scope Statement.

The table shows the inputs, tools and techniques, and outputs for the perform integrated change control process.

Perform Integrated Change Control
Inputs	Tools & Techniques	Outputs
Project management plan Work performance information Change requests Enterprise environmental factors Organizational process assets	Expert judgment Change control meetings	Change request status updates Project management plan updates Project document updates

After you determine that a proposed change has merit and supports the project objectives, the change request is submitted to the project control team for final determinations. For the most part, the interaction with the control board is defined in the planning stage and can remain in place until the completion of the project. In the event that the organization has a project management office, the members of the change control board can change to accommodate strategic impact or affected areas in the project organization.

Exam Trivia:

Do you remember what a change control board is? A change control board is an enterprise decision body tasked with approving the changes to projects or their impact in strategic initiatives.

In addition, you should monitor any trends in requested changes that could indicate inadequate requirements definition in the planning stage of your project.

To know more about the Perform Integrated Change Control Click Here

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Next: Chapter 26

Chapter 20: Project Integration Management in Project Execution Phase

Aim: To understand the Direct and manage project execution process

PMI includes the direct and manage project execution process within the integration knowledge area and defines the process as “executing the work defined in the project management plan to achieve the project’s objectives.”

This is the stage in our project where the actual work is performed. The Project Management Plan is our savior and we follow it religiously to complete all the work required.

A point to note here is that, the team does all the work and the Manager plays the role of a supervisor or a facilitator. That is why the process is named as “Direct & Manage Project Execution” and not “Do the Project work”

The table below shows the inputs, tools and techniques, and outputs for the direct and manage project execution process.

Direct and Manage Project Execution
Inputs	Tools & Techniques	Outputs
Project management plan Approved change requests Enterprise environmental factors Organizational process assets	Expert judgment Project management information system	Deliverables Work performance information Change requests Project management plan updates Project document updates

The PMBOK includes a list of activities that are included in the direct and manage project execution process. The purpose of these activities is to produce the deliverables that are defined within the project’s scope. The work also includes completed approved changes, corrective action, preventive action, and defect repair. Finally, work performance information is produced. This information is used to monitor and control activities against the project plan baseline.

One key output of this activity is the actual project deliverables. They might be tangible deliverables, such as a road or computer software, or intangible deliverables such as training.

The project manager executes the project using the organization’s project management methodology and project management information system. The methodology is the tools, templates, and procedures for executing projects. For example, it includes the change management process or status reporting process.

The project management information system (PMIS) includes the scheduling tools, tools for reporting, document repositories, and any other systems used in project execution. The PMIS also includes the techniques used for gathering, integrating, and disseminating process outputs. The PMIS can be both manual and automated.

As a result of monitoring/controlling activities, additional work might be required in execution. For example, a quality control activity might indicate that a deliverable does not meet the quality standards, which would cause rework. But, that is not in scope for this chapter and will be covered as part of the Monitor & Control Project Work Phase.

Exam Watch:

Understand the difference between corrective action and preventive action. Preventive action is anything done to prevent, or avoid, a specific situation. Corrective action is “after the fact” activities that fix an issue after it has occurred.

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Next: Chapter 21

Chapter 10: Project Integration Management in Project Planning Phase

Aim: To understand the Process that falls under Project Integration Management. i.e., “Develop the Project Management Plan”

The project management plan process covers all activities that identify and direct the actions of many other processes in the planning process group. Developing the project management plan includes coordinating the development of the subsidiary plans and incorporating them into the complete project plan. The main purpose of the project management plan is to define how the project is to progress from its beginning to completion.

In short, the project management plan provides the high-level game plan for how the project moves through its lifecycle. PMI defines many potential subsidiary plans that make up the overall project management plan. These subsidiary plans provide the specific details for managing each aspect of the project from initiation through closure. The subsidiary project management plans could include

• Project scope management plan
• Requirements management plan
• Schedule management plan
• Cost management plan
• Quality management plan
• Process improvement plan
• Human resource plan
• Communication management plan
• Risk management plan
• Procurement management plan

One of the more common mistakes inexperienced project managers make is to confuse a project plan with a project schedule. The output from many common project management software packages do not qualify as a project plan. They are a good start, but a true project plan is made up of much more information than just scheduling information. This process requires a focused effort to create a plan that incorporates all known information about a project.

The Table below shows the inputs, tools and techniques, and outputs for the develop project management plan process.

Develop Project Management Plan
Inputs	Tools & Techniques	Outputs
Project charter Outputs from planning processes Enterprise environmental factors Organizational process assets	Expert Judgment	Project Management Plan

Exam Watch:
You will see “expert judgment” listed as a tool and technique for several processes. The meaning of “expert judgment” is specific to each process. In the context of the develop the project management plan process, expert judgment includes
• Tailor the process to meet the project needs
• Develop technical and management details to be included in the project management plan
• Determine resources and skill levels needed to perform project work
• Define the level of configuration management to apply to the project
• Determine which project documents are subject to the formal change control process

You can learn more about the Develop Project Management Plan process by Clicking Here

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Next: Chapter 11

Chapter 6: Project Integration Management as part of Project Initiation

Aim: To understand the Processes those are part of Project Integration Management in the Project Initiation Phase. i.e., “Develop Project Charter”

After a decision is made to initiate a project, the collection of input information begins. This is where the project boundaries can be a little unclear, but it is generally accepted that activities starting with the collection of inputs for initiating are part of the project. Remember that the project has not yet been authorized, so all resources required for the initiating processes must be funded explicitly by the project initiator. In other words, someone has to pay for the time spent by the people required to produce the project charter.
It is entirely possible that the organization decides not to pursue a project after it sees the project charter. The project charter might show that the project will not be worth the resource expenditures. In such a case, the resources already expended to produce the project charter have actually saved the organization from wasting many more resources. Therein lies part of the value of the initiating processes.

Exam Watch:
A project charter doesn't always result in a successful project initiation. Let us say, you are working for a Car Manufacturer and are assigned with a project to create a low cost, highly fuel efficient luxury car. The company has set a budget for each car and has also set a profit margin expected from each unit sold. Armed with this information, you perform the due diligence and figure out the fact that, you cannot manufacture such a luxury car under the set budgets & profit margins. Once you provide with your senior management with this information, they could do either of the below actions:
1. Drop the project as, this new car will not be profitable under the set circumstances. This effectively means that your project is scrapped and wont continue.
2. Assign extra budget for each car and adjust the profit margin accordingly. This effectively means that the project will continue.

The specific project management process that results in the project charter is the Develop Project Charter process.

The Inputs, Tools & Techniques and Output for this process are as follows:

Develop Project Charter
Inputs	Tools & Techniques	Outputs
Project statement of work Business Case Contract Enterprise environmental factors Organizational process assets	Expert Judgment	Project Charter

As you study for the PMP exam, don’t just memorize each of the inputs, tools and techniques, and outputs for each process. Really think about why PMI put them where they are. In the case of the develop project charter process, ask yourself what you need before you start. Each piece of information you need to start the process of creating the project charter is represented in the input section. You need some sort of document that specifies the need for the project (contract or statement of work). You also need to understand the policies and procedures governing projects for your organization. Once you have all the necessary information to start, you can start the process of developing the project charter.

During the project charter development, you use your own expert judgment as well as the expert judgment of subject matter experts in various areas to create the output or deliverable. Expert judgment involves using all of the project selection techniques in your project manager bag of tricks.
In the case of the project charter, the only output is the project charter itself. The main point to listing each of the inputs, tools and techniques, and outputs for each process is to understand each component of each process.

Because the development of the project charter is the first project activity, much of the work to produce the input for this process occurs either before the project initiation or within the scope of another project. Most of the input for this process serves to define the project and the environment in which it exists.

After the input information has been collected, the project initiator compiles and issues the project charter. The initiator must be someone who holds the authority to fund the project. Although it is desirable to assign a project manager early in the process, the project manager is not absolutely necessary to issue the project charter. It is important that the stakeholders have a material role in the creation of the project charter. The project manager, if one has been assigned at this point, can be the one to actually do the work of compiling the stakeholders’ needs, but the actual input for the project charter and the authority to issue it comes from the project initiator. The main reason so much emphasis is put on the project charter is that it provides the first and best opportunity for the stakeholders to really think through a project before the work begins, and it gives everyone a chance to consider the project before committing to it.

You can learn more about the “Develop Project Charter” Process by Clicking Here

Project Selection Methods

PMI encourages organizations to employ formal methods to select projects. Formal methods make it possible to compare multiple projects and select the one(s) that will produce the most benefit for an organization without being persuaded by emotional ties to certain projects. Additionally, organizations can set specific standards potential projects must meet to be accepted. There are two main selection method categories you need to know for the PMP exam. It is not important that you have an in-depth knowledge of these methods, but you need to be able to identify each type of method and understand their basic differences.

1. Benefit Measurement Methods
Benefit measurement methods document the relative benefits of completing each project. This approach enables organizations to compare projects by comparing their impact. Each specific method uses different measurements and results in different types of output. You don’t need to understand how to assess the relative measurements for the exam. Just know that these methods produce relative output an organization can use to compare projects.
2. Mathematical Models
Mathematical models analyze project description data to result in a more standardized set of output values. Simply put, a mathematical model can rate a project on a scale from 1 to 100. The organization then decides how desirable a single project is based on its rating. Usually projects with higher numbers are chosen over the ones with lower numbers. For ex: If your company is to produce two cars that have comparable production costs, the car that has the higher profit margin would be chosen for production.

Project Management Methodology

The organization’s standard practices when conducting project activities, along with the project management standards, make up the project management methodology. Any standards, guidelines, procedures, or common practices work together to form the general way of managing projects within any organization. The particular methodology you use depends on the culture of your organization, and all these factors affect the content of the project charter.

Project Management Information System

The project management information system (PMIS) is the collection of computerized tools used to collect, store, analyze, and interpret project information. Although most project managers use software to schedule projects, the PMIS often consists of far more than just project management software. When managing a project, learn which tools are available and use them to support the project throughout its life cycle.

Expert Judgment

The primary tool and technique referenced in creating the project charter is tapping into the expert judgment of others. Expert judgment of the project manager is included here if the project manager has been assigned. Some technical or procedural details might require input from an expert in a specific area. Such experts can be stakeholders or customers of the project, or they can be totally unrelated to the project. PMI encourages using any available source for project information input. When considering input sources for the project charter, or any needed expert input, consider any of these alternatives:
• Internal organization assets with specific expertise
• External consultants
• Stakeholders, including customers
• Professional or trade associations
• Industry or user groups

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Next: Chapter 7

Chapter 2: Project Management Knowledge Areas

Aim: To understand the Project Management Knowledge Areas and the Process Groups

The PMBOK organizes all the activities that define a project’s life cycle into 42 processes. These processes are grouped to form nine knowledge areas. It is extremely important to have a good understanding of each of the project processes and how they relate to one another.

We will be taking a detailed look at each of these processes & knowledge areas in the subsequent chapters. Below is the list of 9 Knowledge Areas and the 42 processes.

Knowledge Area	Description	Processes Covered by the Knowledge Area
Project Integration Management	Processes and activities that pull the various elements of project management together, including developing plans, managing project execution, monitoring work and changes, and closing the project.	1. Develop Project Charter 2. Develop Project Management Plan 3. Direct & Manage Project Execution 4. Monitor & Control Project work 5. Perform Integrated Change Control 6. Close Project or Phase
Project Scope Management	Processes that ensure the project includes the work required to successfully complete the project, and no more. This includes scope planning, definition, verification, and control. This area also includes the work breakdown structure creation.	1. Collect Requirements 2. Define Scope 3. Create WBS 4. Verify Scope 5. Control Scope
Project Time Management	Processes that ensure the project completes in a timely manner. Activity sequencing and scheduling activities occur in this area.	1. Define Activities 2. Sequence Activities 3. Estimate Activity Resources 4. Estimate Activity Durations 5. Develop Schedule 6. Control Schedule
Project Cost Management	Processes that ensure the project completes within the approved budget. Basically, any cost management activity goes here.	1. Estimate Cost 2. Determine Budget 3. Control Costs
Project Quality Management	Processes that ensure the project will meet its objectives. This area includes quality planning, assurance, and control.	1. Plan Quality 2. Perform Quality Assurance 3. Perform Quality Control
Project Human Resource Management	Processes that organize and manage the project team.	1. Develop Human Resource Plan 2. Acquire Project Team 3. Develop Project Team 4. Manage Project Team
Project Communications Management	Processes that specify how and when team members communicate and share information with one another and others not on the team.	1. Identify Stakeholders 2. Plan Communications 3. Distribute Information 4. Manage Stakeholder Expectations 5. Report Performance
Project Risk Management	Processes that conduct risk management activities for the project. These activities include risk analysis, response planning, monitoring, and control.	1. Plan Risk Management 2. Identify Risks 3. Perform Qualitative Risk Analysis 4. Perform Quantitative Risk Analysis 5. Plan Risk Response 6. Monitor & Control Risks
Project Procurement Management	Processes that manage the acquisition of products and services for the project, along with seller and contract management.	1. Plan Procurements 2. Conduct Procurements 3. Administer Procurements 4. Close Procurements

You can learn more about the Project Management Knowledge Areas by Clicking Here

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Points to Remember: Project Integration Management

Integration Management Knowledge Area:

The Integration Management knowledge area brings all of the process groups together. A project manager has to integrate the work of everyone on the team through all of these major activities to keep the project on track:

1. Being authorized by the project charter to control the budget and assign resources
2. Planning all of the work that’s going to happen throughout the project.
3. Directing the work once it gets started
4. Monitoring the way the work progresses and looking for potential problems
5. Looking out for changes, understanding their impacts, and making sure they don’t derail the project
6. Closing out the project and making sure that there are no loose ends when it’s over

Initiating a Project:

1. The project charter officially sanctions the project. Without a charter, the project cannot begin.
2. The sponsor is the person (or people) responsible for paying for the project and is part of all important project decisions.
3. Develop Project Charter is the very first process performed in a project.
4. The project charter gives the project manager authority to do the project work, and to assign work or take control of project resources for the duration of the project. It also gives the project manager authority to spend money and use other company resources.
5. The business case tells everyone why the company should do the project. The project charter tells everyone that the project actually started, explains what it’s going to deliver, and authorizes the project manager to do the work.
6. The project charter does not include details about what will be produced or how. Instead, it contains the summary milestone schedule.
7. Two inputs to Develop Project Charter are the contract and the statement of work. The contract is what you agreed to do, although not all projects have a contract. The statement of work lists all of the deliverables that you and your team need to produce.
8. Enterprise Environmental Factors tell you how your company does business. An important one is the work authorization system, which determines how work is assigned, and makes sure that tasks are done in the right order.
9. Organizational Process Assets tell you how your company normally runs projects. One of the most important assets is lessons learned, which is where you write down all of the valuable historical information that you learn throughout the project to be used later.


Planning a Project:

1. Remember that the project management plan is formal—which means that it’s written down and distributed to your team.
2. You may get a question on the exam that asks what to do when you encounter a change. You always begin dealing with change by consulting the project management plan.
3. The work authorization system is a part of your company’s Enterprise Environmental Factors, and it’s generally part of any change control system. It defines how work is assigned to people.
4. The project management plan includes baselines: snapshots of the scope, schedule, and budget that you can use to keep track of them as they change.


Project Management Plan — Subsidiary Plans and Baselines:

The project management plan is the core of Integration Management. It’s your main tool for running a project. It consists of many subsidiary plans and baselines that will be used throughout the life of your project.

1. The scope management plan describes how scope changes are handled—like what to do when someone needs to add or remove a feature to a service or product your project produces.
2. The requirements management plan describes how you’ll gather, document, and manage the stakeholders’ needs, and how you’ll meet those needs with the project deliverables.
3. The schedule management plan shows you how to deal with changes to the schedule, like updated deadlines or milestones.
4. The cost management plan tells you how you’ll create the budget, and what to do when your project runs into money problems.
5. The quality management plan deals with problems that could arise when a product doesn’t live up to the customer or client’s standards.
6. You use the human resource plan to deal with changes in your staff, and to identify and handle any additional staffing needs and constraints you might have in your specific project.
7. The communications management plan lists all of the ways that you communicate with your project’s team, stakeholders, sponsors, and important contacts related to the project.
8. The risk management plan is about detailing all the bad things that might happen and coming up with a plan to address each risk when and if it occurs.
9. The procurement management plan focuses on dealing with vendors outside of your company.

There are three baselines in the project management plan.

1. The scope baseline is a snapshot of the scope, which helps you keep track of changes to the work that you’ll be doing and the planned deliverables you’ll be building.
2. The schedule baseline does the same for the project schedule, and
3. The cost performance baseline does the same for the budget.


The Monitor and Control Phase of a Project - Up Close

1. You start with information about how the work is being performed.
2. Next you figure out any changes that have to be made to the plans, and repairs that have to be made to the deliverables. Here, you let stakeholders know about the changes, and make sure everyone is in the loop with what you’re doing.
3. Once the changes and repairs are approved by the CCB, you send them back to the team to put them in place.

A change control board (CCB) is a group of people—usually including the sponsor—that approves or rejects changes. Any time a change goes through Integrated Change Control, the CCB decides whether or not it should be made. When they approve the change, you send it on to the team to implement.


Points to Remember - Other Topics:

Introduction to Projects & Project Management
Relationship Between Knowledge Areas & Process Groups
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Human Resource Management
Project Communication Management
Project Risk Management
Project Procurement Management
Ethics & Professional Responsibility