PMBOK 6th Edition - ITTO

4.
1 Develop Project Charter
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4.2 Develop Project Management Plan
4.3 Direct and Manage Project Work
4.4 Manage Project Knowledge
4.5 Monitor and Control Project Work
4.6 Perform Integrated Change Control
4.7 Close Project or Phase
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013, Figure
4-12, Page 100.
5.1 Plan Scope Management
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5.2 Collect Requirements
Project Management Institute, A Guide to the Project Management Body of Knowledge, PMBOK(® Guide) – Fifth Edition, Project Management Institute, Inc.,
2013, Figure 5-4, Page 111.
5.3 Define Scope
5.4 Create WBS
5.5 Validate Scope
5.6 Control Scope
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Durations
7.1 Plan Cost Management
7.2 Estimate Costs
Project Funding Requirements
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22
7.3 Determine Budget
7.3 Determine Budget
7.4 Control Costs
Interpretation of EVM
Schedule
Performance
Measures
SV>0 & SVI>1.0 SV=0 & SVI=1.0 SV<0 & SVI<1.0
Ahead Of Schedule
CV >0 & On Schedule Under Behind Schedule
Under Budget
CPI > 1.0 Budget Under Budget
Ahead Of Schedule
CV = 0 & Behind Schedule On
Cost On Budget On Schedule On
CPI = 1.0 Budget
Budget
Ahead Of Schedule
CV < 0 & On Schedule Over Behind Schedule
Over Budget
CPI < 1.0 Budget Over Budget
Project Management Institute, Practice Standard for Earned Value Management , Second Edition , Project Management Institute, Inc. 2011,
Figure 9-2, Page 63.
Cost of Quality :
28
8.1 Plan Quality Management
8.2 Manage Quality
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute,
Inc., 2013, Figure 8-8, Page 243.
8.3 Control Quality
Keywords
• Prevention & Inspection
• Accuracy : Within Quality Management systems , an assessment of correctness.
• Precision : Within Quality Management systems , a measure of exactness.
• Special and Common Cause :
• Common causes of variance are the usual quantifiable and historical variations in a system that are natural. Though a problem, they are
an inherent part of a process.
• Special Cause of Variance, refers to unexpected glitches that affect a process. The term Special Cause of Variance was coined by W
Edwards Deming and is also known as an ‘Assignable Cause'. These are variations that were not observed previously and are unusual,
non-quantifiable variations.
• They usually relate to some defect in the system or method. However, this failure can be corrected by making changes in a certain
method, component or process.
• Standard deviation and Sigma Values :

• 1 Sigma : 68.25%
• 2 sigma : 95.46%
• 3 sigma : 99.73%
• 6 sigma : 99.99%
Organizational Theories
• Maslow's Hierarchy of Needs
• Herzberg's Hygiene Theory
• Theory X and Theory Y
• Expectancy theory: You need to give people an expectation of a reward in order to

motivate them The rewards or awards should be achievable , if they are impossible to
achieve , they will de-motivate them People are motivated by achievements People
“expect “ to be rewarded for achievements
• Mc lelland’s Achievement Theory: People need achievement, power and affiliation to be

motivated. Achievement is when someone performs well and is recognized for it Power
means he or she has a lot of control or influence in the company Affiliation, a strong from
being a part of a working team and having good relationships with coworkers.
Herzberg's Hygiene Theory
Motivator
Freedom to take
decision
Interesting work
Hygiene
Salary
Working
Condition
Having their hygiene factors met does not motivate people , but the absence
of it demotivates and reduces performance.
9.1 Plan Resource Management
9.2 Estimate Activity Resources
9.3 Acquire Resources
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013, Figure 9-7,
Page 267.
Team Building Stages
Team Leadership
Characteristic
Stages
•Members are
uncomfortable with each
•Set Direction
Other Forming •Establish Ground
•Not Expressing their ideas
Rules
•Management brought them
•Build Trust
together
•Members stars expressing Storming •Build Trust

their ideas
•High Conflicts •Manage Conflicts
•Low Trust •Enforce Ground Rules
•Trust Starts Building in Norming

•Sense of Community •Remain Involved and
•Co-operation facilitate interactions
•Most Productive •Delegate since

•Strong Sense of
Performing team is self
Belongingness managed
•Strong Trust
•Document Lesson
Learned
•Disbanding the team Adjourning
9.4 Develop Team
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013, Figure 9-9,
Page 273.
9.5 Manage Team
Sources of Conflict
50%+ of project conflicts
Technical Human
Personality Cost Procedure Priorities Schedules
Opinions Resources
Less common More common

sources of sources of
conflict conflict
Conflict Resolution Methods
Methods When to apply?
Withdraw / Avoid You want to take some time to collect facts and
build your case/ Don’t care as long as it gets
done.
Smooth/Accommodate Focuses at similarities between the parties ,

rather than on their differences.
Compromise/Reconcile When relation is important and matter is not of

high importance, just a little give and take here.
Force/Direct You know you are right, time is less, relation is

not important, stakes are high
Collaborate/Problem Solve/Confront Stakes are high, and both party trust each other,
collaborate to find best option for project
9.6 Control Resources
Few Terms w.r.t. Project Team
• Halo effect :
• Beware of the
halo effect! E.g. Production Assistant to Supervisor
• That’s when you put someone in
a position they can’t handle, just because
they’re good at another job.
• Multicriteria decision analysis :
means looking at a bunch of factors when
deciding on who should be part of your
project team. Sometimes teams will use
tools that help them weigh factors like cost,
skills, knowledge, and availability when
deciding on project team needs.
Expected Output - Communications Management Plan
• Stakeholder communication requirements
• Information to be communicated, including format, content, and level
• The person responsible for communicating the information
• The person or group who will receive the information
• Methods or technologies used to convey the information, such emails, press releases
• Frequency of the communication, such as weekly
• Escalation process
• Resources allocated for communication activities
• Process of Updating Communication Management plan
• Glossary of Communication Terminology
• Flow Charts, Workflows of the information flow
• Constraints derived
10.1 Plan Communication Management
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition, Project Management
Institute, Inc., 2013, Figure 10-2, Page 289.
10.2 Manage Communications
10.3 Monitor Communications
11.1 Plan Risk Management
11.2 Identify Risk
11.3 Perform Qualitative Risk Analysis
Comparison Of Qualitative and Quantitative Approaches
Quantitative Risk Analysis
Qualitative Risk Analysis •Predicts likely project outcomes based on

combined effects of risks
•Addresses individual risks •Uses probability distributions to
descriptively characterize the risk’s probability and
•Assesses the discreet probability of impact
occurrence and impact on objective •Uses project model (e.g. Schedule, cost
if it does occur estimate)
•Prioritizes individual risks for •Uses a quantitative method, require
subsequent treatment specialized tools
•Adds to risk register •Estimates the likelihood of meeting targets
•Leads to quantitative risk analysis and contingency needed to achieve
desired level of comfort
•Identifies risks with greatest effects on
overall project risk
Qualitative Risk analysis is always required, Quantitative May not be and is

performed only on higher risk categories.
Project Management Institute, Practice Standard for Project Risk Management , Project Management Institute, Inc., 2009, Figure 7-1 Page 38.
11.4 Perform Quantitative Risk Analysis
Risk Analysis Modeling Techniques
• Sensitivity analysis
• Sensitivity Analysis: Sensitivity analysis is used to analyze project and determine how sensitive it
is to risk. In other words, It is analyzed whether the occurrence of a particular negative risk event
would ruin the project, or merely be an inconvenience
Tornado Diagrams:
Tornado diagrams, named for the funnel shape of their bars, are one way to analyze project sensitivity
to cost or other factors. It shows how sensitive each analyzed are of the project is to risk. It ranks the
bars from greatest to list on the project so that the chart takes on a tornado like shape.
• Expected monetary value analysis

Expected monetary value analysis takes uncertain events and assigns a most likely monetary value (i.e.
dollar amount). It is typically calculated by using decision trees
• Decision tree analysis

Decision trees are used to show probability and arrive at a dollar amount associated with each risk.
11.5 Plan Risk Responses
11.6 Implement Risk Responses :
11.7 Monitor Risks
Project Risk Management Process Flow :
Eliminate Risks
List Critical
Risks
Reduce
Add Additional Update
Plan for Identify Probability / Impact
Risks Project Plan
Risks Risks of the Risks
to the Watch-List
Keep
Noncritical Identify Develop
Risks Accept Risks Residual Contingency
on the Watch-List Risks Plans
Types of Fixed Price Contracts :
1. Firm Fixed Price (FFP) :
• Commonly used
• The fee is fixed for the Product or Service
• No Incentives
• Change increases the costs to the buyer
2. Firm Fixed Incentive Fee (FFIP) :
• Incentives and Bonus to the sellers based on performance targets

• Motivates sellers for better performance
• It is the Firm Fixed Price Contract with Incentive attached.
3. Fixed Price with Economic Price Adjustment (FP –EPA) :
• Price can be adjusted based on some agreed parameters like

• Inflation rate
• Currency rate
• Oil
59
• Metal Index
• Best suited for projects where period spans of number of years.
Expected Output - Procurement Management Plan
• Types of contracts to be used

• Risk management issues
• When to use independent estimates
• Procurement Related RACI matrix
• Standardized procurement documents
• Recommendations for Scheduling and performance reporting;
• Level of Details needed in Contracts
• When to use performance bonds or insurance
• List of prequalified sellers
• Procurement metrics to be used to manage contracts and evaluate sellers.60
12.1 Plan Procurement Management :
61
12.2 Conduct Procurements
62
Control Procurements – Project Procurement Team Composition
Supplier Project Team
Performance Change Request Claim / Invoice

Deliverable Report
Buyer Project Team
Accepting / Approve /
Rejecting Performance Raise Change Payment
Reject Change
deliverable Report Request
Request
63
12.3 Control Procurements :
Salience Model
A. Core
Power
B. Dependent
C. Dominant
D. Dangerous
F E. Discretionary
F. Latent
G. Demanding
D C
A
G E
B
Urgency Legitimacy
65
13.1 Identify Stakeholders
66
13. 2 Plan Stakeholder Engagement :
67
13.3 Manage Stakeholder Engagement
68
13.4 Monitor Stakeholder Engagement
69

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4.

1 Develop Project Charter

• Special and Common Cause :

• Standard deviation and Sigma Values :

• Maslow's Hierarchy of Needs

• Herzberg's Hygiene Theory

• Theory X and Theory Y

• Expectancy theory: You need to give people an expectation of a reward in order to

• Mc lelland’s Achievement Theory: People need achievement, power and affiliation to be

•Members stars expressing Storming •Build Trust

•Trust Starts Building in Norming

•Most Productive •Delegate since

50%+ of project conflicts

Less common More common

Smooth/Accommodate Focuses at similarities between the parties ,

Compromise/Reconcile When relation is important and matter is not of

Force/Direct You know you are right, time is less, relation is

Quantitative Risk Analysis

Qualitative Risk Analysis •Predicts likely project outcomes based on

Qualitative Risk analysis is always required, Quantitative May not be and is

• Expected monetary value analysis

• Decision tree analysis

2. Firm Fixed Incentive Fee (FFIP) :

• Incentives and Bonus to the sellers based on performance targets

3. Fixed Price with Economic Price Adjustment (FP –EPA) :

• Price can be adjusted based on some agreed parameters like

• Types of contracts to be used

Supplier Project Team

Performance Change Request Claim / Invoice

Buyer Project Team

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