PMBOK Overview

ENCE 662
Introduction to Project Management

PMBOK Guide 2004 John H. Cable, R.A., PMP
Copyright 2006, All rights reserved.
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Isnt this a great day to study Project Management!

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PMBOK Guide
A guide to the
Project Management Body of Knowledge

Fourth Edition, 2004
PMBOK Discussion Groups

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1.
Context

Project Life Cycles Stakeholders Organizational Influences General Management Styles Socioeconomic Influences
2.
Processes
Initiating Planning Executing Controlling Closing Integration Scope, Time, Cost, Quality, Human Resources, Communications, Risk, & Procurement
3.
Knowledge Areas
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1. Context

1. 2. 3.
Context Processes Knowledge Areas
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Project Life Cycles

Define technical work + who should be involved Share common characteristics

Staff level profile Probability profile Ability to influence profile

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Staffing Level Profile

Low at the start Build to highest in the 50% 90% complete stages Drop rapidly toward the close
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Probability Profile

Beginning

Successful competition lowest Uncertainty highest
Risk diminishes as completion % goes up

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Project Life Cycles

1. Initiation (Feasibility) 2. Definition (Planning & Design) 3. Execution (Production /Construction) 4. Closeout / Operate
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Process Overlaps
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Generic Life Cycle
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Ability to Influence

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Life Cycle

Tool for measuring project completion as a function of schedule or budget (time or resources) Must understand projects life cycle

PMs focus shifts at different stages Could make wrong decisions if not understood (resource allocation, potential schedule delays) Understand WIP (work-in-place)
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Typical S Shape
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C Shape (Software)
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Project Life Cycle

Maximize ability to influence project Tool for measuring progress Framework for in-progress decisions Road map for focus
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Who are the Stakeholders?
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Stakeholders

Individuals and organizations whose interests may be affected as a result of project execution. Often have competing interests or objectives Differences should be resolved in favor of CUSTOMER
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Organizational Influences

Systems

Management systems support / dont support project management Shared values, norms, beliefs, and expectations Functional, matrix, to projectized
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Cultures & Styles

Structures

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General Management Skills

Provide foundation for developing project management skills Highly likely to affect most projects:

Leading Communicating Negotiating Problem solving Influencing the organization

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Leading

Leading and managing both essential Managing ~ consistently producing key results expected by stakeholders Leading:

Establishing direction Aligning people Motivating & inspiring

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Communicating

Involves exchange of information Sender: responsible for making clear, unambiguous, and complete Receiver: responsible for making sure information received in its entirety and understood correctly
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Negotiating

Conferring with others in order to come to terms or reach agreement Negotiate directly or with assistance

Mediation Arbitration
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Problem Solving Combines

Problem definition

Distinguish between cause & symptom Internal or external Technical, managerial, interpersonal Identify viable solutions Make choice Implement
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Decision making

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Influencing the Organization

Ability to get things done Understand formal and informal structures Understand mechanics of power and politics
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Socioeconomic Influences

Wide range of elements Understand current conditions / trends Some include:

Standards & Regulations International events Cultural influences
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Summary - 1. Context

1. 2. 3.
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1. Context 2. Processes 3. Knowledge Areas
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2. Project Management Processes

A process is any activity that receives inputs and converts them into outputs. ISO 9000:2000 A series of actions bringing about a result PMBOK
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1. 2. 3.
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Key Understanding

1. 2. 3.
Context Processes

Knowledge Areas
Project management is an integrative endeavor. Action, or failure to take action, in one area usually affects other areas. PM as a number of interlinked processes ~ a system!
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2 Major Categories

Project Management Processes

Concerned with describing / organizing the work of the project. Concerned with specifying and creating the project product.
Product-oriented Processes

Overlap and interact throughout the project closely intertwined.

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PM Process Groups

1. 2. 3.
Initiating Planning Executing Controlling, and Closing

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Links Among Processes

Initiating Planning
1. 2. 3.
Controlling
Executing
Closing
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Process Overlaps
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Initiating Processes
Committing the organization to do, and begin, the project or phase. The Initiating Process Group includes:
.1 Develop Project Charter .2 Develop Preliminary Project Scope Statement
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Initiating Planning Executing Controlling Closing
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Planning Processes
Devising and maintaining a workable scheme to accomplish the business need that the project was undertaken to address.
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Planning Processes 1
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Develop Project Management Plan Scope Planning Scope Definition Create Work Breakdown Structure Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Cost Estimating
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Planning Processes 2
11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.
Cost Budgeting Quality Planning Human Resource Planning Communication Planning Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Plan Purchases and Acquisitions Plan Contrtacting
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Facilitating Processes


Organizational planning Quality planning Staff acquisition Communications planning Risk identification, quantification, and response development Procurement planning Solicitation planning
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Executing Processes
Coordinating people and other resources to carry out the project plan.
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Executing Processes
1. 2. 3. 4. 5. 6. 7.
Direct & Manage Project Execution Perform Quality Assurance Acquire Project Team Develop Project Team Information Distribution Request Seller Responses Select Sellers
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Controlling Processes
Ensuring that project objectives are met by monitoring and measuring progress and taking corrective action when necessary.
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Controlling Processes
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Monitor & Control Project Work Integrated Change Control Scope Verification Scope control Schedule control Cost Control Perform Quality Control Manage Project Team Performance reporting Manage Stakeholders Risk Monitoring & Control Contract Administration
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Closing Processes
Formalizing acceptance and bringing the project to an orderly end.
1. 2.
Close Project (Administrative closure) Contract close-out

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Summary 2. Processes

1. 2. 3.

A series of actions bringing about a result PMBOK PM is about integrating systems and subsystems 5 typical process phases
Initiating, Planning, Executing, Controlling, and Closing
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3. Knowledge Areas
1. 2. 3. 4. 5. Integration Scope, Time, Cost, Quality, 6. Human Resources, 7. Communications, 8. Risk, & 9. Procurement
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1. Project Integration Management

Includes the processes required to ensure that the various elements of the project are properly coordinated.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Time, Cost, Quality, Human Resources, Communications, Risk, & Procurement
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1. Project Integration Management

1. 2. 3. 4. 5. 6. 7.
Develop Project Charter Develop Preliminary Project Scope Statement Develop Project Management plan Direct & Manage Project Execution Monitor & Control Project Work Integrated Change Control Close Project
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2. Project Scope Management

Includes processes to ensure project includes all the work required, and only the work required, to complete the project successfully.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Scope, Time, Cost, Quality, Human Resources, Communications, Risk, & Procurement
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2. Project Scope Management

1. 2. 3. 4. 5. Scope Planning Scope Definition Create WBS Scope Verification Scope Control
1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Scope, Time, Cost, Quality, Human Resources, Communications, Risk, & Procurement
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Scope Statement
Provides documented basis for making future decisions + developing common understanding among stakeholders
1. 2. 3. 4. 5. 6. 7. 8. 9.
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Scope Statement Includes

1. 2. 3. 4. 5. 6. 7. 8. 9.

Project justification business need project was undertaken to address Product summary description Deliverables summary level subproducts Objectives quantifiable criteria that must be met for successful project Supporting detail
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3. Project Time Management

1. 2. 3. 4. 5. 6.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Schedule Control
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Time Mgt. Tools

1. 2. 3. 4. 5. 6. 7. 8. 9.

Precedence diagramming method (PDM) Arrow method (ADM) Conditional method (GERT)
Graphical Evaluation Review Technique
Network method
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Schedule Development

1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Time, Time, Cost, Quality, Human Resources, Communications, Risk, & Procurement
Critical Path Method (CPM) focus is float, scheduling flexibility Graphical Evaluation and Review Technique (GERT) allows for probabilistic analysis of logic and duration Program Evaluation and Review Technique (PERT) uses sequential network logic and weighted average duration estimates to calculate duration
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Schedule Displays

1. 2. 3. 4. 5. 6. 7. 8. 9.
Network diagrams Bar charts ~Gantt charts Milestone charts Time-scaled network diagrams
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Schedule Control

1. 2. 3. 4. 5. 6. 7. 8. 9.
Does anyone control a schedule? The very best is:

advance planning, anticipation, contingency planning, risk management experience

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4. Project Cost Management

Includes processes required to ensure project completion within approved budget. 1. Cost Estimating 2. Cost Budgeting 3. Cost Control
1. 2. 3. 4. 5. 6. 7. 8. 9.
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Cost Estimating

1. 2. 3. 4. 5. 6. 7. 8. 9.

Involves developing an approximation of the costs of the needed resources. Order of magnitude Conceptual Preliminary Definitive Control
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Cost ~ Price

1. 2. 3. 4. 5. 6. 7. 8. 9.
Cost estimating ~ quantitative assessment of likely cost Pricing ~ a business decision. How much to charge!
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Cost Budgeting
Involves allocating the overall cost to individual work items to establish a cost baseline for measuring performance.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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Cost Control

1. 2. 3. 4. 5. 6. 7. 8. 9.
Influencing factors which create change Determining that the cost baseline has changed Managing the actual changes Monitoring cost performance Ensuring accurate recording Prevent including incorrect charges
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Cash Flow / Cost Baseline
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5. Project Quality Management

Processes required to ensure project will satisfy its intended purpose. Includes: 1. Quality Planning 2. Perform Quality Assurance 3. Perform Quality Control
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Time, Cost, Quality, Quality, Human Resources, Communications, Risk, & Procurement
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Quality Planning
Quality is planned in, not inspected in. Quality is the way you perform

1. 2. 3. 4. 5. 6. 7. 8. 9.
Customer satisfaction includes conformance to specifications and fitness for use Prevention over inspection cost of avoiding < cost of correcting
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Quality Assurance
All the planned and systematic activities implemented within the quality system. May be provided to: Project team Performing organization Customer
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1. 2. 3. 4. 5. 6. 7. 8. 9.

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Quality Control
Involves monitoring specific results to determine compliance. Includes: Inspection Control charts Pareto diagrams Statistical sampling Flowcharting Trend analysis
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1. 2. 3. 4. 5. 6. 7. 8. 9.

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6. Project Human Resource Management

Processes required to make the most effective use of people involved with the project including stakeholders. Human Resource Planning Acquire Project Team Develop Project Team Manage Project Team
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Time, Cost, Quality, Human Resources, Resources Communications, Risk, & Procurement
1. 2. 3. 4.
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1. Human Resource Planning

Involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships. Outputs: Roles & responsibility assignments Staffing plan Organization chart
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1. 2. 3. 4. 5. 6. 7. 8. 9.

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2. Acquire Project Team

Involves obtaining the needed human resources.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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3. Develop Project Team

1. 2. 3. 4. 5. 6. 7. 8. 9.

Foundation of a successful project Provide opportunity for growth Complicated when members are responsible to both the team and functional managers.
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4. Manage Project Team

1. 2. 3. 4. 5. 6. 7. 8. 9.
Tracking member performance Providing immediate feedback Resolving conflicts and issues Reward and recognition system that reinforces the desired behavior
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Project Communications Mgt.

Processes to ensure timely and appropriate generation, collection, dissemination of project information. Includes: Communications Planning Information Distribution Performance Reporting Manage Stakeholders
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1. 2. 3. 4. 5. 6. 7. 8. 9.
1. 2. 3. 4.
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1. Communications Planning
Determining information needs of the stakeholders; who needs what, when, and how it will be delivered.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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2. Information Distribution
Making needed information available in a timely manner. Includes implementing the communications plan and responding to unexpected requests.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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3. Performance Reporting
Collecting and disseminating project performance information to provide the team and stakeholders status, progress, and forecast information.
Tools include; performance reviews, variance and trend analysis, and earned value analysis.
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1. 2. 3. 4. 5. 6. 7. 8. 9.
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4. Manage Stakeholders
Involves managing communications at all levels to satisfy the requirements of and resolve issues with project stakeholders. Information flow should be integral with business processes.
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1. 2. 3. 4. 5. 6. 7. 8. 9.
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Project Risk Management

Processes concerned with identifying, analyzing, and responding to project risk. Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring & Control
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Integration Scope, Time, Cost, Quality, Human Resources, Communications, Risk, Risk & Procurement
1. 2. 3. 4. 5. 6.
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1. Risk Management Planning

Deciding how to approach, plan, and execute the risk management activities for a project.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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2. Risk Identification
Determining which risks might affect the project and documenting their characteristics
1. 2. 3. 4. 5. 6. 7. 8. 9.
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3. Qualitative Risk Analysis

Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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4. Quantitative Risk Analysis

Numerically analyzing the effect on overall project objectives of identified risks.
1. 2. 3. 4. 5. 6. 7. 8. 9.
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5. Risk Response Planning

Developing options and actions to enhance opportunities, and to reduce threats to project objectives
1. 2. 3. 4. 5. 6. 7. 8. 9.
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6. Risk Monitoring & Control

Tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and evaluating their effectiveness throughout the project life cycle.
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1. 2. 3. 4. 5. 6. 7. 8. 9.
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Common Sources of Risk

1. 2. 3. 4. 5. 6. 7. 8. 9.

Changes in requirements Design errors and omissions Misunderstandings Poorly defined/understood roles and responsibilities Poor estimates Insufficiently skilled staff
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Project Procurement Management

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1. 2. 3. 4. 5. 6. 7. 8. 9.
1. 2. 3. 4. 5. 6.
Processes required to acquire goods and services. Plan Purchases & Acquisitions Plan Contracting Request Seller Responses Select Sellers Contract Administration Contract Closure
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1. Plan Purchases & Acquisitions

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1. 2. 3. 4. 5. 6. 7. 8. 9.
Determining what to purchase or acquire and determining when and how.
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2. Plan Contracting
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Documenting products, services, and results requirements and identifying potential sellers.
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3. Request Seller Responses

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1. 2. 3. 4. 5. 6. 7. 8. 9.
Obtaining information, quotations, bids, offers, or proposals, as appropriate.
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4. Select Sellers
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Reviewing offers, choosing among potential sellers, and negotiating a written contract with each seller.
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5. Contract Administration
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Managing the contracts and relationships between buyer and sellers.
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6. Contract Closure
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1. 2. 3. 4. 5. 6. 7. 8. 9.
Completing and settling each contract, including resolution of any open items, and closing each contract applicable to the project or phase.
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1. Context

1. 2. 3.
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2. PM Process Groups

1. 2. 3.
Initiating Planning Executing Controlling, and Closing

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3. Knowledge Areas
1. 2. 3. 4. 5. Integration Scope, Time, Cost, Quality, 6. Human Resources, 7. Communications, 8. Risk, & 9. Procurement
1. 2. 3.
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Questions?
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ENCE 662

Introduction to Project Management

Isnt this a great day to study Project Management!

Project Management Body of Knowledge

PMBOK Discussion Groups

Context Processes Knowledge Areas

Project Life Cycles

Define technical work + who should be involved Share common characteristics

Staff level profile Probability profile Ability to influence profile

Staffing Level Profile

Successful competition lowest Uncertainty highest

Risk diminishes as completion % goes up

Project Life Cycles

Generic Life Cycle

Project Life Cycle

Who are the Stakeholders?

Cultures & Styles

General Management Skills

Leading Communicating Negotiating Problem solving Influencing the organization

Establishing direction Aligning people Motivating & inspiring

Problem Solving Combines

Influencing the Organization

Wide range of elements Understand current conditions / trends Some include:

Standards & Regulations International events Cultural influences

Context Processes Knowledge Areas

PMBOK Discussion Groups

2. Project Management Processes

Context Processes Knowledge Areas

Project Management Processes

Overlap and interact throughout the project closely intertwined.

Context Processes Knowledge Areas

Initiating Planning Executing Controlling, and Closing

Links Among Processes

Context Processes Knowledge Areas

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Initiating Planning Executing Controlling Closing

Close Project (Administrative closure) Contract close-out

Context Processes Knowledge Areas

PMBOK Discussion Groups

1. Project Integration Management

1. Project Integration Management

2. Project Scope Management

2. Project Scope Management

Scope Statement Includes

3. Project Time Management

Time Mgt. Tools

Does anyone control a schedule? The very best is:

advance planning, anticipation, contingency planning, risk management experience

4. Project Cost Management

Cash Flow / Cost Baseline

5. Project Quality Management

6. Project Human Resource Management

1. Human Resource Planning

2. Acquire Project Team