1-2 & 3 Introduction 6th Edition Chapter PMBOOK
1-2 & 3 Introduction 6th Edition Chapter PMBOOK
1-2 & 3 Introduction 6th Edition Chapter PMBOOK
PMPEXAMPREPARATION
®
BasedonPMBOK 6thEdition
• Parking
• Refreshment
• No-Smoking
• Copyrighted Slides
• KeyContact Details
• Trainer:Bala, PMP,PMI-RMP,PMI-CAPM,KCP
• Support: balammti@gmail.com
• Suggestions &Complaints:+91 8608323103
3
• Name
• Job orEquivalent
• Project ManagementExperience
4
• Building Professionalism in Project Management
• Project ManagementInstitute
• Not for Profit Professional Association
• Established in 1969 by5volunteers
• Global Organization headquartered in Pennsylvania, USA
• With morethan 650,000 membersworldwide
• 280 Charted Chapters
• Local Chapter – http://www.pmi-ksa.org
• Kingdom of Saudi Arabia Chapter
5
• Project ManagementInstitute
• 11 Globally Recognized Standards
• 8 Specialized Certifications
• Registration of Training Providers (REPs)
J. Gordon Davis, PhD E. A. “Ned” Engman Susan Gallagher Eric Jenett James R. Snyder
6
7
TheProject Management Bodyof Knowledge
(PMBOK)Guide provides andpromotes a
commonlexicon for discussing, writing, and
applying project management.
ThePMBOKGuide is developed byPMI,and
uses this document as a foundational project
management reference for its professional
development programs.
8
Certified Associates in Project Management(CAPM)®
Project Management Professionals (PMP)®
Program Management Professionals (PgMP)®
Portfolio Management Professionals (PfMP)®
PMI®Risk Management Professional (PMI-RMP)®
PMI®Scheduling Professional (PMI-SP)®
PMI-Agile Certified Practitioner (PMI-ACP)®
PMI Professional in Business Analysis (PMI-PBA®)
9
®
PMPCertification
Introduced in 1984
Requirements:
DemonstratedExperience
DemonstratedEducation
Pass theExamination
Agreeto Abide bythe Codeof ProfessionalConduct
10
®
Eligibility forPMP®
Category1 Category2
Baccalaureate degree High school diploma
4,500 hours in five process groups 7,500 hours in five processgroups
within 8 years prior to application within 8 years prior to application
Minimum36 unique months of Minimum60 unique months of
project management/project project management/project
experience within 8 years prior to experience within 8 years prior to
application application
35 hours projectmanagement 35 hours projectmanagement
education education
11
®
PMP®Credential ProcessTimeline
12
®
Planning 24% 48
Execution 31% 62
13
®
TheProject ManagementFramework
•
•
TheProject ManagementFramework
CHAPTER 1 - INTRODUCTION
®
17
®
Aproject:
Has a uniquepurpose
Istemporary
Theproject sponsor usually provides the direction andfunding for the project
Involvesuncertainty
18
®
Projects Operations
• Toattain its objectives andterminate • Tosustain thebusiness
• Create owncharter, organization, and goals • Semi permanentcharter, organization, and goals
• Catalyst forchange • Maintain status quo
• Unique product orservices • Standard product orservices
• Heterogeneousteams • Homogeneousteams
• Ongoing
• Start andenddate
Examples Examples
• Producing a News letter • Responding to customersrequests
• Writing andpublishing abook • Writing a letter to aProspect
• Implementing a LAN • Hooking upa Printer to a computer
• Hiring a sales man • Meeting with anemployee
• Arrange for aconference • Attending aconference
• Openingfor a new shop • Openingthe shop
• Producing the annualreport • Writing a progress updatememo
19
®
1.Scope
2. Time
3.Budget
4.Quality
5.Risk
6.Resources
®
• Portfolio Management
• ProgramManagement
• Projects andStrategic Planning Program
• Project ManagementOffice
Subproject Project
25
Aportfolio is a collection of projects, programs, sub-portfolio and
operations that are grouped/managed together to facilitate effective
managementof that work to meet strategic business objectives.
ADVANTAGES
Decreasedrisk
Economies of Scale
ImprovedManagement
• Projects are meansof organizing activities that cannot be addressed within the
organizations normal operational limits.
All projects are divided into phases, andall projects, large or small, have a
similar life cycle structure.: Starting the project , organizing andpreparing ,
carrying out the project work andclosing the project
At a minimum,project will have a beginning or initiation phase, an
intermediate phase or phases, andanendingphase.
100%
Installation
Substantially
complete
Major
Percentage Complete
Contracts
Let
Project
“GO”
decision
ExampleProcess:ITTO’s
PROCESS
TOOLS&
INPUTX OUTPUTX
TECHNIQUESX
Project Management Business Documents
Project Management Business Documents
Benefit-cost Netpresent
ratio(BCR) value(NPV)
Payback Return on
period investment
(PBP) (ROI)
Internalrate
of return
(IRR)
Project Selectionmethods
Benefit measurementmethods
A.Scoring Models
B.Benefit/Cost ratios
C.Paybackperiod
D.Discounted cash flow
E. Net Present Value
F. Internal rate of return.
Project Selectionmethods
A) Scoring Models or
weighted scoring
models
Weighted Scoring
ModelExample
Project Selectionmethods
B)Benefit CostRatio
• If BCRof project Ais 5.3 andthe BCRof Project Bis 2.6, then
which project would you select?
• Project A,with higherBCR
Project Selectionmethods
C)PaybackPeriod
Payback period is the length of time it takes the companyto get back
the initial cost of producing the product orservice.
PaybackExample
• Theinitial investment onour project is BD200,000 with expected
cash inflows of BD25,000 per quarter every quarter for the first
two years, andBD50,000 per quarter from thereon. What is the
payback period of the project.
Calculation:
Cash Inflows = BD25,000 x4 (quarters in a year) = BD100,000/Year
Year1 inflows = BD100,000
Year 2inflows = BD100,000
Total= BD200,000, Payback is reached in2years.
Project Selectionmethods
Payback Example -2
• Project Apayback period =10months
•Project Bpayback period = 20 months.
Which project would youchoose? Project A
PaybackLimitations
Ignoresthe
Ignorescash time valueof
flows after money.
the payback
period.
Project Selectionmethods
Calculate the project’s cash flow for time unit. (Typically quarters or years)
70
• Based onPlan-do-check-act cycle
(as defined byShewhart andmodified byDeming)
Theapplication of the project managementprocesses
to a project is iterative andmanyprocesses are
repeated andrevised during the Project.
• Initiating
• Planning
• Executing
• Monitoring & Controlling
• Closing
Theprocesses frequently overlap during the life of theproject.
Single PhaseProject
Multi PhaseProject
Multi Phase Project(Overlapping)
Mapping the Process Groups to the KnowledgeAreas
Youcan mapthe mainactivities of each PM process groupinto
the Tenknowledge areas using the PMBOK®Guide 2017
1.Project IntegrationManagement
2.Project ScopeManagement
3.Project ScheduleManagement
4.Project CostManagement
5.Project QualityManagement
6.Project ResourcesManagement
7.Project CommunicationsManagement
8.Project RiskManagement
9.Project ProcurementManagement
10.Project StakeholdersManagement.
Project Management Data And Information
Throughout the project life cycle, a significant amountof data andinformation is collected, analyzed,
documented andtransformed in to various format to the Project team andstakeholders. These data’s are
continuously collected, analyzed during project execution. Thebelow 3 types will provide a clear guidelines and
avoid miscommunication to project team.
Theyare,
WorkPerformance Data: Theraw observations andmeasurements identified during activities
performed to carry out the project work. (e.g. start dates andfinish dates)
Organizational Influences on
Project Management & Project LifeCycle.
Project and Project Management takes in broader environment than the project itself.
• Organizational Systems
• Organizational Process Assets
• Enterprise EnvironmentFactors
There are three main ways in which organizational factors influence projectmanagement:
• This model is a mix of functional andprojectized andhas three variants – weak matrix, balanced
matrix, andstrong matrix.
• All resources havetwo managers– functional andproject.
• Project manager’sauthority increases fromweak to strong matrix while functional manager’s
authority decreases fromweak to strong matrix. Authority is equally shared in balanced matrix.
Composite:
• This is mixof abovemodels with different parts of organization structured differently as perbusiness
needs.
• Project Expediter: Acts as project staff and communications coordinator. Aproject expediter cannot
makeorenforce decisions – typically found in functional orweak matrix wherethere is someproject
structure butfunctional manageris morepowerful.
• Project Coordinator: Similar to project expeditor with some limited power to makedecisions. Typically
reportsto ahighermanager– typically foundin weakmatrix organizations.
• Managerof projectmanagersis typically seenin strongmatrixorcomposite organizations.
FunctionalOrganization
Functional Organization – KeyPoints
• Theorganization is grouped byareas of specialization within different functionalareas.
• Projects generally occur within a single department.
• Information required from other department will be routed through departmental heads.
• Teammemberscomplete project work in addition to normal departmentwork.
ADVANTAGES DISADVANTAGES
Easier Management of specialists People place moreemphasis ontheir functional
specialty to the detriment of theproject
Teammembersreport to only onesupervisor
Nocareer path in project management
Similar resources are centralized, the companyis
groupedbyspecialists Project managerhas little or noauthority
ADVANTAGES DISADVANTAGES
Efficient projectorganization No“home”whenproject is completed
Loyalty to theproject Lack of professionalism indisciplines
Moreeffective communications than functional Duplication of facilities andjobfunctions
Less efficient use odresources
WeakMatrix Organization
WeakMatrix Organization – KeyPoints
• Teammembersreports to FunctionalManager
• Teammembersdo project work in addition to normal departmental work
• Power rests with functionalmanager
• Project Manager plays a role of:
• Project Expediter: Cannot take decision.
Staff assistant andCommunicationcoordinator.
• Project Coordinator: Similar to Project Expeditor
except has some power to take decision.
Balanced MatrixOrganization
Balanced Matrix Organization – KeyPoints
• TwoBosses
• Teammembersreports to Project Manager andFunctional Manager
• Teammembersdo project work in addition to normal departmental work
• Power is shared between the functional andproject manager
Strong Matrix Organization
Composite MatrixOrganization
• Project Manager is havingfull power.
Strong Matrix Organization – KeyPoints
Organizational Process Assets includes Polices, Procedures, guidelines andvarious corporate
knowledge data base bythe performingorganization.
A.Processes andProcedures.
1.Guidelines andcriteria for tailoring the organization standard processes andprocedures.
2.Polices (health polices, safetypolices)
3.Templates (Risk register, WBS)
Completed Schedules ,
Processes and Procedures
risk data , & earned value data
98
Enterprise environmentfactors are so important that they can enhance or reduce the project management
options andpositively or negatively impact the project success. These are veryimportant inputs in case of
project planning. Youmust know the organizational culture, norms,andpolicies for yourproject success. Below
are some examples of the enterprise environmentalfactors:
Nowproject managerjob is morestrategic, howeverapplying skills, knowledge andtools for effective project
managementwill not be sufficient andheshould possess the following competencies
Knowledge
Performance
Personnel
Project Manager’s
Sphere of Influence
Project Manager accomplishes work through project team and other stakeholders. He needs to
balance his different skill sets. The most important skill should be project manager’s
interpersonal skills such as,
1. Leadership
2. Team Building
3. Motivation
4. Conflict Resolutions
5. Problem Solving
6. Motivation
7. Mentoring
8. Negotiation
9. Communication
10. Presentation Skills
11. Decision Making
12. Coaching
Technical project management. PMI Talent Triangle®
Theknowledge, skills, andbehaviors related focuses on three key skill sets:
to specific domains of project, program,
andportfolio management. The
technical aspects of performing one’srole.
Leadership.
Theknowledge, skills, andbehaviors needed
to guide, motivate, anddirect a
team, to help an organization achieve its
businessgoals.
Strategic and business management.
Theknowledge of andexpertise in the
industry andorganization that enhanced
performance andbetter delivers business
outcomes.