Pmppresentationchapter1to7 160420043909

Engosoft
PMP
Presentation
Saad Merie,
PMP
Planning Engineer
PMP Preparation Course Engosoft Saad Merie
Introduction
The Exam
PMBOK
Why I need PMP

Introduction
Why I need PMP

PMP Non-PMP
Holder Holder
+71400
Globally
Accredited
More Salary
(10-15%
more)
0
Nothing of
More Job that
Ofers
Introduction
The Exam: Duration
72 Sec
200
Questio 4 Hours Per
n Questio
n
Introduction
The Exam: Requirements
Trainin
Fees Experience
g
4500 h 7500 h
35 PDUs 555$ (bachelor (High
4 years) School)
Introduction
The Exam: Fees
275$
150$ 405$
Re-
Register Exam
Exam
in PMI Fees
Fees
Introduction
The Exam: Passing Score
Moderately Below
Proficient
Proficient Proficient
61
Introduction
PMBOK
Organizations
& Framework Knowledge Areas
Organization
General Integration Scope Time Cost Quality
s
Human
Framework Communication Risk Procurement Stakeholder
Resources
1.2
1. Introduction: General
temporary endeavor undertaken to create
Project? a unique product, service, or result.
Considered Finished in three cases:
Complete all objectives (from Owner Side).

Terminated when Can't Complete its objectives.
Terminated when there is no need for it anymore.
1.2
Temporary: Has Start and End Dates
Creates a unique product
Project
Progressively Elaborated
Over the Product Life Cycle

Enhancements with production
Operation
Enhancements may be small projects
1.2
Project
Running
Building an an
Watering assembly
Organizing
Extension
Plants on line
a large
Twice aa
Baking
Shelving a wedding
books cake
at the library
in conference
a toy
house factory
week
Operation
1.2.
1. Introduction: General 1
Portfolio
Subportfoli
o Program
Programs Subprogram
Project
Phase 1 Phase 2
Projects
Projects
1.4
Progra Portfoli
Project
m o
Coordination
Manage
between
Programs and
Result of projects to
Projects
Companys obtain
together to
Strategic benefits not
achieve
Consideration available by
Companys
s managing
Strategic
projects
Objectives
individually
1.4.
Why we make a Project?
Market Social Customer Legal

Legal
Demand Needs request Requirement
Requirement
Business Environment
Environment Technological
Technological
Need al Needs
al Needs advance
advance
1.4.
Project Management Office PMO
Supportiv Controllin
Directive
e g
Act like Consultant Force Projects to follow
PMO rules Act like project
manager
Templates, best
practices, Training Rules may be
management
framework and
Projects May not follow methodologies
PMO instructions
High Control
Moderate Control
Low Control
When a project gets started,
AProvides
When
thiscentralized
you sit
group down
makes group
to do
sure ofyour
that 1.4.
the process
project
risk team
documents managers
the planninghasfor your
followed
and whoallare
project,
templates of
3
you go to them
theassigned
initiating to find a and
processes
to manage good
for
example your
of project.
a risk
have theprojects.
right plan thats
approvals to
Project Management Office PMO been useful start
on other projects.
working.
Supportiv Controllin
Directive
e g
1.3
What is Project management? 5 Process Groups
47
Planning Processes
Initiatin Closin
g g
Monitorin
g and
Executing
Controllin
g
2.1
2.1 Organizational Influences
Organizations are systematic
Organization arrangements of entities (persons and/or
?
departments) aimed at accomplishing a
purpose, which may involve undertaking
projects.
Culture and Communication
Structure
Style s
Functional Values Distance Efect
Matrix Reward System
Technology
Projectized Policies Usage
2.1.3
Organizations Structure Types
Functional Organization
Each Employee has
one boss (The
Functional Manager)
Employees are stafed

by department
(Production, Marketing,
Finance ..)
Each Department do its part
in the project
interdependent from other
departments
Coordination on
Functional
Managers Level
2.1.3
Weak Matrix
Project Manager Organization
is assigned as
coordinator
Project
Manager has
some
Authorities
Each Department do its
part in the project in
Coordination with Other
Departments
Coordination
on Lowest
Level
2.1.3
Balanced Matrix
Project Organization
Manager
work full
time
Project
Manager has
more
Authorities
Project Manager is
under Functional
Manager
Department
2.1.3
Strong Matrix
Project Organization
Manager
work full
time
Project
Manager has
wide but not
full
Authorities
Project Manager
is under
Projects
Management
Department
2.1.3
Projectized Organization
Project Team
work in
same place
Project
Manager has
full
Authorities
All Companys
Resources
located in the
projects
2.1.3
Organizational Structure Efect
2.1.4
Organizational Process Assets (OPA)
The plans, processes, policies, procedures,
OPA
and Knowledge bases specific to and used
by the performing organization.
The Project Team can follow OPA when

needed.
2.1.4
Organizational Process Assets (OPA)
Internal Guidelines and Policies

Internal Forms and Templates
OPA
Change Procedures
Financial controls procedures
Risk control procedures
Historical information and lessons
learned
2.1.5
Enterprise Environmental Factors (EEF)
Refer to conditions, not under the control
EEF
of the project team, that influence,
constrain, or direct the project.
2.1.5
Enterprise Environmental Factors (EEF)
Organizational culture and structure

Government or industry standards
EEF
Existing human resources
Personnel administration
Marketplace conditions
Political climate
Project management information system
2.2.1
2.2 Project Stakeholders
All interested entities that may afect on

Stakeholders the project in Positive or Negative way.
?
Project Team
Project Manager
The Owner
The Consultant
Competitor
2.2.3
2.2.3 Project Success
Will be measured in terms
of completing the project
within the constraints of: Resource
Quality s and
Risk
Cost
Time
As Approved
Scope
2.4
2.4 Project Life Cycle
A project life cycle is the series of phases
Project
that a project passes through from its
Life
Cycle initiation to its closure.
Construction Maintenance
Design Phase
Phase Phase
2.4
Construction Maintenance
Design Phase
Phase Phase
Initiating Initiating Initiating

Planning Planning Planning
Executing Executing Executing
Controlling Controlling Controlling
Closing Closing Closing
THE PROJECT
2.4
Types
Predictiv
Iterative Adaptive
e
Repetitive iterations or
Plan Driven / Waterfall phases to develop the Change Driven / Agile
product
Product Concept Submitted

Scope, Time and Cost Each iteration include
in short period and
Determined early and activities from process
enhance with next
everything is planned groups
submission
Construction Projects Design Projects Software Projects

2.4
3.1
3. Project Management Processes
What is Project management?
Project Management Process Groups T 3-
Knowledge Initiating Executin Monitoring and 1Closing
Areas Planning Process
Process g Process Controlling Process
Group
Group Group Process Group Group
4.4 Monitor and Control
4.3 Direct and
4. Project 4.1 Develop 4.6 Close
4.2 Develop Project Manage
Integration Project Project Work Project
Management Plan Project
Management Charter 4.5 Perform Integrated or Phase
Work
Change Control
5.1 Plan Scope Management
5. Project Scope 5.2 Collect Requirements 5.5 Validate Scope
Management 5.3 Define Scope 5.6 Control Scope
5.4 Create WBS
6.1 Plan Schedule Management
6.2 Define Activities
6. Project Time 6.3 Sequence Activities
6.7 Control Schedule
Management 6.4 Estimate Activity Resources
6.5 Estimate Activity Durations
6.6 Develop Schedule
Monitoring 1
Knowledge Initiatin
and Closing
Areas g Planning Process Executing Process
Controlling Process
Process Group Group
Process Group
Group
Group
7.1 Plan Cost Management

7. Project Cost
7.2 Estimate Costs 7.4 Control Costs
Management
7.3 Determine Budget
8. Project Quality 8.1 Plan Quality 8.2 Perform Quality 8.3 Control
Management Management Assurance Quality
9.2 Acquire Project Team

9. Project HR 9.1 Plan Human Resource
9.3 Develop Project Team
Management Management
9.4 Manage Project Team
10. Project 10.3 Control

10.1 Plan Communications 10.2 Manage
Communication
Management Communications
Management Communications
Knowledge Initiating Executing Monitoring and 1Closing
Areas Planning Process
Process Process Controlling Process
Group
Group Group Process Group Group
11.1 Plan Risk
Management
11.2 Identify Risks
11. Project Risk 11.3 Perform Qualitative
11.6 Control Risks
Management Risk Analysis
11.4 Perform Quantitative
Risk Analysis
11.5 Plan Risk Responses
12. Project
12.1 Plan Procurement 12.2 Conduct 12.3 Control 12.4 Close
Procurement
Management Procurements Procurements Procurements
Management
13. Project 13.3 Manage 13.4 Control
13.1 Identify 13.2 Plan Stakeholder
Stakeholder Stakeholder Stakeholder
Stakeholders Management
Management Engagement Engagement
3.1
3. Project Management Processes
Project Information
Work Work Work
Performance Performance Performance
Data Information Reports
Raw Data Analyzing raw Reports about

Activity Progress data Data
Quality Measures Deliverables Dashboards
Start and End Status KPI
Dates Change Requests Graphs
Number of Status Suggestions
Defects Estimated Finish
554
Common Terms in PMBOK
Deliverabl
Process WBS
e
Any Unique
and Verifiable
Series of
result Work
activates to
required to Breakdown
get an
be produced Structure
output(s)
to complete
the project
554
Change
Baseline EEF
Request
Conditions, not
Approved
under the
Version of a A formal
immediate
work product proposal to
control of the
that can be modify any
team, that
changed only document,
influence,
through formal deliverable, or
constrain, or
Change baseline.
direct the
Request
project
554
Expert
Milestone Product
Judgment
An artifact
that is
Judgment produced, is
provided quantifiable,
A significant
based upon and can be
point or event
expertise in an either an end
in a project
application item in itself
area or a
component
item
554
Requireme
PMIS Resource
nt
A condition or
capability
Project that is Manpower
Management required to
Equipment
Information be present in
System a product, to And Materials
satisfy the
contract
554
Work Authorization
System
Formal Document define
who is authorized to do
what, and which are the
procedures for the work to
be done
Q
Exam Questions
A project is handled by departments of an organization and expedited
by a project coordinator. Which of the following statements is most
likely to be true?
a) The performing organization is a weak matrix

b) The performing organization is doing "management by projects"
c) The performing organization is a strong matrix
d) The performing organization is Projectized.
Q
Exam Questions
Which of the following is NOT a type of project management
office?
A. Directive
B. Value-driven
C. Supportive
D. Controlling
Q
Exam Questions
Which of the following is NOT a characteristic of a project?
A. Temporary
B. Strategic
C. Specific result
D. Progressively elaborated
Q
Exam Questions
Which of the following is NOT true about portfolio
management?
A. The portfolio manager judges the success of the portfolio by

combining data from all of its programs and projects.
B. A portfolio can contain projects and programs.
C. A portfolio is organized around a business goal.
D. A portfolio is always a group of programs.
Q
Exam Questions
A project coordinator is having trouble securing programmers
for her project. Every time she asks her boss to give a resource
to the project he says that they are too busy to help out with
her project. Which type of organization is she working in?
A. Functional
B. Weak Matrix
C. Strong Matrix
D. Projectized
Q
Exam Questions
Youre a project manager working on a software engineering
project. The programmers have started building the software,
and the testers have started to create the test environment.
Which process group includes these activities?
A. Initiating
B. Planning
C. Executing
D. Closing
Q
Exam Questions
Which of the following is NOT true about overlapping phases?
A. Each phase is typically done by a separate team.

B. Theres an increased risk of delays when a later phase cant start
until an earlier one ends.
C. Theres an increased risk to the project due to potential for rework.
D. Every phase must go through all five process groups.

4
4. Project Integration
Management
includes the processes and activities to
Integration identify, define, combine, unify, and
? coordinate the various processes and
project management activities within the
Project Management Process Groups
Monitoring
Knowledg Initiatin
Executing and Closing
e Areas g Planning
Process Controlling Process
Process Process Group
Group Process Group
Group
Group
4.4 Monitor and
4.1 Control Project
4. Project 4.3 Direct and 4.6 Close
Develop 4.2 Develop Project Work
Integration Manage Project Project
project Management Plan 4.5 Perform
4.1
Management
document that formally authorizes the
4.1
Project existence of a project and provides the
Charter
project manager with the authority to
apply organizational resources to project
activities.
4.1
Management
Formally Authorize the project
Define Start and End
4.1
Project Create official record for the project
Charter
Guarantee that the project align with companys
strategic goals
It is not a contract
Approved and Changed by the sponsor
should be general so we dont change it
Scope Changes subject to what is written in Charter
Without Charter, Project Cannot begin
4.1
Management
4.1 Develop Project Charter
Tools &
Inputs Outputs
Techniques
.1 Project statement of
work
.1 Expert judgment
.2 Business case
.3 Agreements .1 Project charter
.4 Enterprise
environmental factors .2 Facilitation techniques
.5 Organizational process
assets
4.1
Management
4.1.1 Develop Project Charter: Inputs
4.1.1.1 Project Statement of work
Description of the product that the project create

Part of the Tender or the Contract
Refer to:
Business need (same as following business case)
Companys Strategic Plan and where the project fit in
it.
4.1
Management
4.1.1.2 Business Case
Describe from business point of view if the project worth

investment.
Determine Project Boarder
Business Case define why we created the project (same
reasons mentioned before here)
4.1
Management
4.1.1.3 Agreements
Can be Contract, Letter of Agreement, Letter of Intent,

Email, or any other formal document
4.1
Management
4.1.2 Develop Project Charter: Tools and Techniques
4.1.2.1 Expert Judgment
Consultants
Stakeholders
Technical Advisors
Industry Experts
Subject Matter Experts (SME)
Project Management Office (PMO)
4.1
Management
4.1.2 Develop Project Charter: Tools and Techniques
4.1.2.2 Facilitation Techniques
Brainstorming
Conflict Resolution
Problem Solving
Meeting Management
4.1
Management
4.1.3 Develop Project Charter: Outputs
4.1.3.1 Project Charter
Project Assumptions
Project Project
Manager and
Purpose Objectives
Authority Constraints
High Level Summary

Customer High Level
Requirement Milestone
Needs Risks
s Schedule
Project
Summary Stakeholder Who Approve
Success
Budget List the Charter
Criteria
4.2
Management
the process of defining, preparing, and
4.2 Project
Management coordinating all subsidiary plans and
Plan
integrating them into a comprehensive
project management plan. The key benefit
of this process is a central document that
defines the basis of all project work
4.2
Management
Define how to Execute, Monitor and Close
4.2 Project Project.
Management
Plan It is Progressively Elaborated and prepared
over the project life cycle until project close.
It is controlled and approved through Perform
Integrated Change Control Process.
When it is baselined, it can be changed Only
with Change Request.
4.2
Management
4.2 Develop Project Management Plan
Tools &
Inputs Outputs
Techniques
.1 Project charter
.1 Expert judgment
.2 Outputs from other
processes
.1 Project
.3 Enterprise management plan
environmental
factors .2 Facilitation
.4 Organizational techniques
process assets
4.2
Management
4.2 Develop Project Management Plan
4.2.3 Develop Project Management: Outputs
4.2.3.1 Project Management Plan
All other management plans

Scope Baseline, Schedule Baseline, Cost baseline
Selected Project life cycle
Selected processes for this project
Description of the Tools and Techniques for those processes
Description how we maintain the integrity of the baselines
Open Issues and cases
4.2
Management
4.3
Management
the process of leading and performing the
4.3 Direct and
Manage work defined in the project management
Project Work
plan and implementing approved changes
to achieve the projects objectives.
The key benefit of this process is that it
provides overall management of the
project work.
4.3
Management
4.3 Direct and Manage Project Work
Tools &
Inputs Outputs
Techniques
.1 Project management .1 Deliverables
plan .1 Expert judgment
.2 Work performance data

.2 Approved change
requests
.2 Project management
.3 Change requests
information system
.3 Enterprise
environmental factors .4 Project management
plan updates
.4 Organizational process .3 Meetings .5 Project documents
assets updates
4.3
Management
Perform Project Activities

Create Deliverables
Acquire, Train and manage project team
Get and manage resources
Apply method of Statements
Create and manage communication tunnels
Issue Change Requests
Manage Risks, Procurement and stakeholders
Collect and manage lessons learned
Apply process enhancements
4.3
Management
4.3.1 Direct and Manage Project Work: Inputs
4.3.1.2 Approved Change Requests
Outcome from 4.5 Perform Integrated Change Control

CRs which approved by CCB (Change Control Board)
Approve Implement Follow up
CR 4.5 Perform
Integrated
Change Control
Approved
4.3 Direct and
CR Manage Project
Work
Validated
4.4 Monitor and
CR Control Project
Work
4.3
Management
4.3.2 Direct and Manage Project Work: Tools and Techniques
4.3.2.2 Project Management Information System (PMIS)
Part of EEF that Contain:

Scheduling Tool
Work Authorization System
Configuration Management System
Information Collection and Distribution System
Interface to Online Automated System
Automated Gathering and Reporting on KPIs
4.3
Management
4.3.2 Direct and Manage Project Work: Tools and Techniques
4.3.2.3 Meetings
Three Types:
1. Information Exchange.
2. Brainstorming and Options Evaluation.
3. Decision Making.
The Best Practice is to make each type in separate meeting.
Each meeting should have specific Agenda, Purpose and Time.
Should Documented through MOM and Action Items.
MOM to be saved in PMIS as planned.
Preferably FACE to FACE meeting.
4.3
Management
4.3.3 Direct and Manage Project Work: Outputs
4.3.3.1 Deliverables
Any Unique and Verifiable result required to be produced to

complete the project.
4.3
Management
4.3.3.2 Work Performance Data
Work Work Work

Performance Performance Performance
Data Information Reports
Raw Data Analyzing raw Reports about

Activity Progress data Data
Quality Measures Deliverables Dashboards
Start and End Status KPI
Dates Change Requests Graphs
Number of Status Suggestions
Defects Estimated Finish
4.3
Management
4.3.3.3 Change Requests
CR: A formal proposal to modify any document, Deliverable, or

baseline.
CRs are implemented in this process only.
Corrective Preventive
Defect Repair Updates
Action Action
Insure that future Modify the
Realign Project Update plans and
performance is product or part of
Performance with documents to
aligned with it as per
Project match new idea
Project requirements and
Management Plan or content
Management Plan standards
4.3
Management
Final Project Cost
Change
Costs areWall
Honeycomb at
over
4.3.3 Direct and Manage Project Work: Outputs may exceed
Colors
Columns
budget
4.3.3.3 Change Requests Budget
Corrective Preventiv Defect

Updates
Action e Action Repair
4.4
Management the process of tracking, reviewing, and
4.4 Monitor reporting the progress to meet the
and Control
Project Work performance objectives defined in the project
management plan.
The key benefit of this process is that it allows
stakeholders to understand the current state
of the project, the steps taken, and budget,
Schedule, and scope forecasts.
4.4
Management
Compare Actual vs Planned Performance
4.4 Monitor Determine if Change Request is needed
and Control
Project Work Identify new Risks and follow up current ones
Monitor Product Status
Analyze project information
Prepare Cost and Schedule Estimates
Follow up Implemented Change Requests
4.4
Management
4.4 Monitor and Control Project Work
Tools &
Inputs Outputs
Techniques
.1 Project management plan
..1 Expert judgment .1 Change requests
.2 Schedule forecasts
.3 Cost forecasts .2 Analytical techniques .2 Work performance reports
.4 Validated changes
.3 Project management .3 Project management plan
.5 Work performance information information system updates
.6 Enterprise environmental
factors
.4 Meetings .4 Project documents updates
.7 Organizational process assets
4.4
Management
4.4.1 Monitor and Control Project Work: Inputs
4.4.1.2 Schedule Forecasts
Comes from Control Schedule Process
4.4.1.3 Cost Forecasts
Comes from Control Costs Process

4.4
Management
4.4.1.4 Validated Changes
CR 4.5 Perform
Integrated
Change Control
Approved
4.3 Direct and
CR Manage Project
Work
Validated
4.4 Monitor and
CR Control Project
Work
4.4
Management
4.4.1.5 Work Performance Information
Performance
Data Performance Performance
From Information Reports
4.3
4.4
Management
4.4.2 Monitor and Control Project Work: tools and Techniques
4.4.2.2 Analytical Techniques
Regression Grouping Casual Root Cause

Analysis Methods Analysis Analysis
Failure Mode
and Efect Fault Tree Reserve Trend
Analysis Analysis FTA Analysis Analysis
FMEA
Earned Value Variance

Management Analysis
4.4
Management
4.4.3 Monitor and Control Project Work: Outputs
Comparing Performance Results with Plan may require CR
4.4.3.2 Work Performance Reports
Reports is the way to show information in useful

interface to make it easy for decision makers, or to
highlight problems.
It is part of Project Documents
Contain: Project Status, Memos, Reasons of Delay, Notes,
Recommendations, Updates.
4.5
Management
4.5
the process of reviewing all change requests;
Perform approving changes and managing changes to
Integrated deliverables, organizational process assets, project
Change
Control documents, and the project management plan; and
communicating their disposition.
The key benefit of this process is that it allows for documented
changes within the project to be considered in an integrated fashion
while reducing project risk, which often arises from changes made
without consideration to the overall project objectives or plans.
4.5
Management
4.5
It is Project Manager Responsibility Entirely
Perform It started from first inspection in the project till close
Integrated CRs may be requested by a stakeholder
Change
Control All CRs should be documented officially
Estimate the impact of CR on time and cost
Approval through Change Control Board (CCB)
CCB can be one person and can include the sponsor
Approved and Rejected CRs to be distributed
Approved CRs will be implemented through 4.3
4.5
Management
4.5
Configuration Management Control Keep:
Perform 1. Deliverables Specs
Integrated 2. Processes Specs
Change
Control
Change Management Control:

1. Manage Changes on Deliverables
2. Manage Changes on Documents
3. Manage Changes on Baselines and Plans
4.5
Management
4.5 Perform Integrated Change Control
Tools &
Inputs Outputs
Techniques
.1 Project management .1 Approved change
plan .1 Expert judgment requests
.2 Work performance
reports
.2 Change log
.3 Change requests .2 Meetings

.4 Enterprise plan updates
environmental factors
.5 Organizational process .3 Change control tools .4 Project documents

assets updates
4.5
Management
4.5.1 Perform Integrated Change Control: Inputs
CR 4.5 Perform
Integrated
Change Control
Approved
4.3 Direct and
CR Manage Project
Work
Validated
4.4 Monitor and
CR Control Project
Work
Project Manager Main Priority is to resist unnecessary

changes
4.5
Management
4.5.3 Perform Integrated Change Control: Outputs
4.5.3.2 Change Log
Approved and Rejected CRs to be documented in Change

Log
to be updated and distributed Regularly to entities and
stakeholders
Change Log is part of Project Documents
4.6
Management the process of finalizing all activities across all
4.6 Close of the Project Management Process Groups to
Project or
Phase formally complete the project or phase.
The key benefit of this process is that it
provides lessons learned, the formal ending of
project work, and the release of organization
resources to pursue new endeavors.
4.6
Management
4.6 Close Project or Phase
Tools &
Inputs Outputs
Techniques
.1 Project .1 Expert .1 Final product,
management plan judgment service, or result
transition
.2 Accepted .2 Analytical
deliverables techniques
.2 Organizational
.3 Meetings updates
process assets
4.6
Management
4.6.1 Close Project or Phase: Inputs
4.6.1.2 Accepted Deliverables
Deliverabl Verified Validate Close

Control Accepted
e Quality
Deliverable Scope DeliverableProject /
Phase
4.6
Management
4.6.3 Close Project or Phase: Outputs
4.6.3.2 Organizational Process Assets Updates
OPA to be update:
Project file in Companys Archive
Lessons learned
If the owner has no more money to pay for the project

Then We have to close it
Q
Exam Questions
A team member approaches you with a change that could cut
your schedule down by a month. What is the first thing you
should do?
A. Write up a change request and see if you can get it approved.
B. Make the change; its going to save time and nobody will want the
project to take longer than it should.
C. Figure out the impact on the scope of the work and the cost before
you write up the change request.
D. Tell the team member that youve already communicated the
deadline for the project, so you cant make any changes now.
Q
Exam Questions
Brandi is a project manager on a software project. About
halfway through development, her team found that they had
not estimated enough time for some of the technical work they
needed to do. She requested that the new work be added to
the scope statement and that the time to do the work be
added to the schedule. The change control board approved her
change. Whats her next step?
A. Update the scope and schedule baselines to reflect the approved

change.
B. Start doing the work.
C. Gather performance metrics on the teams work so far.
D. Perform Quality Assurance.
Q
Exam Questions
You have just delivered a product to your client for acceptance
when you get a call that some features they were expecting
are missing. Whats the first thing you should do?
A. Get your team together and reprimand them for building a product
that doesnt meet user expectations.
B. Tell the client that the product passed all of your internal quality
inspections and scope verification processes, so it must be fine.
C. Tell the team to start building the missing features into the product
right away.
D. Call a meeting with the client to understand exactly what is
unacceptable in the product and try to figure out what went wrong
along the way.
Q
Exam Questions
Which of the following BEST describes the main purpose of the
project charter?
A. It authorizes the project manager to work on the project.

B. It identifies the sponsor and describes his or her role on the project.
C. It contains a list of all activities to be performed.
D. It describes the initial scope of the work.
Q
Exam Questions
Which of the following is NOT a characteristic of the Project
Management plan?
A. Collection of subsidiary plans
B. Formal, written communication
C. A bar chart that shows the order of tasks and their resource
assignments
D. Must be approved by project sponsor
Q
Exam Questions
You are a project manager for a software project. Your team buys a
component for a web page, but they run into defects when they use it.
Those defects slow your progress down considerably. Fixing the bugs in
the component will double your development schedule, and building
your own component will take even longer. You work with your team to
evaluate the cost and impact of all of your options and recommend
hiring developers at the company that built the component to help you
address problems in it. That will cost more, but it will reduce your delay
by a month. What is your next step?
A. Fix the component.
B. Write up the change request and take it to the change control board.
C. Start Plan Procurements so you can get the contract ready for the
vendor.
D. Change the scope baseline to include your recommendation.
Q
Exam Questions
The terms of union contracts are considered ______________ in
your project plan.
A. Assumptions
B. Constraints
C. Requirements
D. Collective bargaining agreements
5
5. Project Scope Management
includes the processes required to ensure
Scope that the project includes all the work
Management required, and only the work required, to
complete the project successfully.

Monitoring
Knowledg Initiatin
e Areas g Planning
Process Process Group
Group Process Group
Group
Group
5.1 Plan Scope
Management
5. Project 5.5 Validate Scope
5.2 Collect
Scope
Requirements
5
Product
Project Scope
Scope
Specs and Properties of It is the work required
the required Product to get the product
Final Product Should be Final Result should be

Compared with Product compared with Project
Requirements (5.2) Management Plan
5
Controlled
Scope Change (Gold Plating)
Uncontrolled
(Scope Creep)
5
Tools &
Inputs Outputs
Techniques
.1 Project
management plan .1 Scope
.1 Expert judgment
management plan
.2 Project charter
.3 Enterprise
environmental
factors .2 Requirements
.2 Meetings
.4 Organizational management plan
process assets
5
5.1.3 Plan Scope Management: Outputs
5.1.3.1 Scope Management Plan
A plan to define how the Scope will be defined, Managed,

Controlled and Checked.
5.1.3.2 Requirements Management Plan
A plan to define how the requirements will be analyzed,

documented and managed.
5
The Process of collect, document and

5.2 Collect
Requirement manage stakeholders requirements to
s
achieve project objectives.
Project Success Depend on how much

stakeholder involve in collect and
document requirements process
5
5.2 Collect Requirements
Tools &
Inputs Outputs
Techniques
.1 Interviews
.1 Scope management plan
.2 Focus groups
.3 Facilitated workshops .1 Requirements documentation
.2 Requirements management plan .4 Group creativity techniques
.5 Group decision-making techniques
.3 Stakeholder management plan .6 Questionnaires and surveys
.7 Observations
.4 Project charter .8 Prototypes

.9 Benchmarking .2 Requirements traceability matrix
.10 Context diagrams

.5 Stakeholder register
.11 Document analysis
5
Business Stakeholder Solution

Requirement Requirement Requirement
s s s
Transition
Requirement Project Quality
s Requirement Requirement
s s
(Training)
5
5.2.2 Collect Requirements: Tools and Techniques
5.2.2.2 Focus Groups
Arranged meetings between the prequalified stakeholders

and subject matter experts to get their ideas about the
required product.
5
5.2.2.3 Facilitated Workshops
Workshop between The Key Stakeholders

It increases trust between Stakeholders
One example is Joint Application Design (JAD) in software field
Other example is Quality Function Development QFD in industries
QFD Start with collecting customer need which known as Voice of
Customer VOC.
The requirements get arranged and prioritized.
5
5.2.2.4 Group Creativity Techniques
Brainstorming
Nominal Group Technique: same as brainstorming but with vote
Idea/Mind Mapping: put all the ideas in one map
Affinity Diagram: put similar ideas in groups
Multi criteria Decision Analysis: add several criteria to ideas
5
5.2.2.5 Group Decision Making Techniques
Unanimity (All)
Majority (More than 50%)
Plurality (Most of, Less than 50%)
Dictatorship
5.2.2.6 Questionnaires and Surveys
When trying to get requirements from wild audience, or several

places.
5
5.2.2.7 Observations
Known as Job Shadowing

Check how experts do the work
Used when it is hard to get the requirements
5.2.2.8 Prototypes
To get early feedback on requirements and Model of the product.

Type of Risk Avoidance
5
5.2.2.9 Benchmarking
Compare current practice with Best Practice
5.2.2.10 Context Diagrams
Chart that show the whole process
5.2.2.11 Document Analysis
We can get requirements by analyzing some documents like

business plans, market conditions, agreements, request for
5
5.2.3 Collect Requirements: Outputs
5.2.3.1 Requirements Documentation
Requirements Have to be:

1. Unambiguous (measurable and testable)
2. Traceable
3. Complete
4. Consistent
5. Acceptable to key stakeholders
5
5.2.3 Collect Requirements: Outputs
5.2.3.2 Requirements Traceability Matrix
It link Requirements with Deliverables, and Reduce Gold plating

The benefit of it is to insure that each requirement add business
value
It is the basis of Requirement Management
5
the process of developing a detailed

5.3 Define description of the project and product.
Scope
Not all requirements will be in the scope

of works, here we define which
requirements should be included.
5
5.3 Define Scope
Tools &
Inputs Outputs
Techniques
.1 Scope
.1 Expert judgment
management plan .1 Project scope
statement
.2 Project charter .2 Product analysis
.3 Requirements .3 Alternatives
documentation generation
.2 Project
.4 Organizational .4 Facilitated documents updates
process assets workshops
5
5.3 Define Scope
5.3.2 Define Scope: Tools and Techniques
5.3.2.2 Product Analysis
It is used when the project is created to make a product only

To get the product, there are several ways, analyzing the product
help to define them
5.3.2.3 Alternatives Generation
Analyze all possible methods to accomplish the project

5
5.3 Define Scope
5.3.3 Define Scope: Outputs
5.3.3.1 Project Scope Statement
It is progressively elaborated, and contains:

Product Scope Description
Acceptance Criteria
Deliverables list
Project Exclusion (what is excluded)
Constraints
Assumptions (Assumed in Charter, Detailed in Define Scope)
5
the process of subdividing project

5.4 Create deliverables and project work into
WBS
smaller, more manageable
components.
The project decomposed into work packages, each one

represent the lowest level that work can be managed,
estimate, and controlled.
5
5.4 Create WBS
Tools &
Inputs Outputs
Techniques
.1 Scope management plan
.1 Decomposition .1 Scope baseline

.2 Project scope statement
.3 Requirements
documentation
.4 Enterprise
environmental factors .2 Project documents
.2 Expert judgment
updates
.5 Organizational process
assets
5
5.4 Create WBS
5.4.2 Create WBS: Tools and Techniques
5.4.2.1 Decomposition
Subdividing Scope intro smaller components

It is progressively elaborated, and this known as Rolling
Wave Planning
Level of decomposition depend on the project complexity
Decomposition can be by Stage or Deliverable
Extra Decomposition make work hard to follow up
5
5.4 Create WBS
5.4.3 Create WBS: Outputs
5.4.3.1 Scope Baseline
Scope Scope
WBS
Dictionary WBS Statemen
t Baseline
5
5.4 Create WBS
5.4.3 Create WBS: Outputs
5.4.3.1 Scope Baseline
WBS Dictionary includes details about each WBS like:

WBS Accounts Code
Work Description
Constraints and Assumptions
Entity in charge
Internal Activities
Cost, time, resources estimates
5
the process of formalizing acceptance

5.5
Validate of the completed project deliverables.
Scope
5
5.5 Validate Scope
Tools &
Inputs Outputs
Techniques
plan .1 Accepted deliverables
.2 Requirements .1 Inspection
documentation
.2 Change requests
.3 Requirements
traceability matrix
.3 Work performance
information
.4 Verified deliverables .2 Group decision-making
techniques
.4 Project documents
.5 Work performance data updates
5
5.5 Validate Scope
5.5.3 Validate Scope: Outputs
5.5.3.1 Accepted Deliverables
Deliverabl Verified Validate Close

Control Accepted
e Quality
Deliverable Scope DeliverableProject /
Phase
5
the process of monitoring the status of

5.6 Control the project and product scope and
Scope
managing changes to the scope
baseline.
Scope Creep: the additional work added to scope

without consideration for time or cost or resources.
5
5.6 Control Scope
Tools &
Inputs Outputs
Techniques
.1 Project management .1 Work performance
plan information
.2 Requirements
.2 Change requests
documentation
.3 Requirements .3 Project management

.1 Variance analysis
traceability matrix plan updates
.4 Project documents
.4 Work performance data
updates
.5 Organizational process .5 Organizational process

assets assets updates
Q
Exam Questions
Which of the following best describes decomposition?
A. Waiting for a task to expire so that it can break down into smaller
tasks
B. Taking a deliverable and breaking it down into the smaller work
Packages so that it can be organized and planned
C. Categorizing work packages
D. Dividing work packages into deliverables that can be planned for
Q
Exam Questions
Tom is the project manager of an accounting project. He has
just finished defining the scope for the project and is creating
the WBS. He goes to his organizational process asset library
and finds a WBS from a past project to use as a jumping-off
point. Which of the following describes the asset that Tom is
using?
A. Decomposition
B. Delphi technique
C. Brainstorming
D. Templates
Q
Exam Questions
Which of the following is the correct order of the Monitoring
and Controlling processes for Scope Management?
A. First Validate Scope, then Control Scope.

B. First Control Scope, then Validate Scope.
C. Both happen simultaneously.
D. There is not enough information to decide.
Q
Exam Questions
You are managing a software project. During a walkthrough of
newly implemented functionality, your team shows you a new
feature that they have added to help make the workflow in the
product easier for your client. The client didnt ask for the
feature, but it does look like it will make the product easier to
use. The team developed it on their own time because they
wanted to make the client happy. You know this change would
never have made it through change control. What is this an
example of?
A. Gold plating
B. Scope creep
C. Alternatives analysis
D. Schedule variance
Q
Exam Questions
You are developing the project scope statement for a new
project. Which of the following is NOT part of creating a
project scope statement?
A. Validate Scope
B. Using the project charter
C. Alternatives identification
D. Obtaining plan approval
Q
Exam Questions
The scope baseline consists of:
A. The Scope Management plan, the project scope statement, and the
WBS
B. The Scope Management plan, requirements documents, and the
WBS
C. The Scope Management plan, the WBS, and the WBS dictionary
D. The project scope statement, the WBS, and the WBS dictionary
Q
Exam Questions
You are the project manager on a construction project. As
youre planning out the work your team will do, you divide up
all of the work into work packages and create a WBS that
shows how they fit into categories. For each one of the work
packages, you write down details such as initial estimates and
information about what account it should be billed against.
Where do you store all of that information?
A. Scope Management plan

B. WBS
C. WBS dictionary
D. Project scope statement
6
6. Project Time Management
includes the processes required to
Time
Management manage the timely completion of the
project.

Monitoring
Knowledg Initiati Executin
and Closing
e Areas ng Planning Process g
Controlling Process
Process Group Process
Process Group
Group Group
Group
6. Project Time 6.3 Sequence Activities 6.7 Control
Management 6.4 Estimate Activity Resources Schedule
6
Tools &
Inputs Outputs
Techniques
.1 Project
management plan .1 Expert judgment
.2 Project charter
.2 Analytical .1 Schedule
.3 Enterprise techniques management plan
environmental
factors
.4 Organizational .3 Meetings
process assets
6
6.1.3 Plan Schedule Management: Outputs
6.1.3.1 Schedule Management Plan
Methodology and tool of developing project schedule

Accuracy level of estimating
Units (days, months?) and Calendars
Updating Schedule procedures
Control Thresholds
Performance measurement rules (like EVM)
Reports samples
6
Tools &
Inputs Outputs
Techniques
.1 Schedule
management plan .1 Decomposition .1 Activity list
.2 Scope baseline
.2 Rolling wave
.2 Activity attributes
.3 Enterprise planning
environmental
factors
.4 Organizational .3 Expert judgment .3 Milestone list
process assets
6
6.2.2 Define Activities: Tools and Techniques
6.2.2.2 Rolling Wave Planning
Iterative planning technique in which the work to be

accomplished in the near term is planned in detail, while
the work in the future is planned at a higher level.
It is a form of progressive elaboration.

6
6.2.3 Define Activities: Outputs
6.2.3.2 Activity Attributes
Other attributes to be added to activity list like:

Activity ID
WBS ID
Activity Start and End Dates
Successor and Predecessor
Resources requirements
6
6.3 Sequence Activities
Tools &
Inputs Outputs
Techniques
.1 Schedule management plan
.1 Precedence diagramming
method (PDM) .1 Project schedule network
.2 Activity list
diagrams
.3 Activity attributes
.4 Milestone list .2 Dependency determination
.6 Enterprise environmental .2 Project documents updates

factors
.3 Leads and lags
6
6.3.2 Sequence Activities: Tools and Techniques
6.3.2.1 Precedence Diagramming Method (PDM)
One way to show it is AON (Activity on Node)

The Activity on node, and the relationship on Arrow
It has 4 types of relationships:
FS,FF,SS,SF
A B
6
6.3.2.2 Dependency Determination
Mandatory Discretionary External Internal

Dependencies Dependencies Dependencies Dependencies
Hard Logic
Soft Logic
Contractually or legally
required
Inherent in the nature Out of Project team Under project team

Best Practice
of work control control
Has Physical limits
Documented
It is not Constraints
6
6.3.2.3 Leads and Lags
6
6.3.3 Sequence Activities: Outputs
6.3.3.1 Project Schedule Network Diagrams
Workflow shows logical relationships between activities,

and explanation for strange ones.
6
6.4 Estimate Activity Resources
Tools &
Inputs Outputs
Techniques
.1 Expert judgment
.1 Activity resource requirements
.2 Activity list
.3 Activity attributes .2 Alternative analysis
.4 Resource calendars
.3 Published estimating data .2 Resource breakdown structure
.5 Risk register
.6 Activity cost estimates .4 Bottom-up estimating

factors .3 Project documents updates
.5 Project management software
6
6.4.2 Estimate Activity Resources: Tools and Techniques
6.4.2.2 Alternative Analysis
Manual vs Automatic
Buy vs Build vs Rent
6
6.4.3 Estimate Activity Resources: Outputs
6.4.3.1 Activity Resource Requirements
Quantity and Type

Assumptions and Basis of Estimate
Availability
6
Tools &
Inputs Outputs
Techniques
.1 Expert judgment
.2 Activity list
.3 Activity attributes .2 Analogous estimating .1 Activity duration estimates

.3 Parametric estimating
.4 Three-point estimating
.7 Risk register
.8 Resource breakdown structure .5 Group decision-making
techniques .2 Project documents updates
factors
.6 Reserve analysis
6
6.5.2 Estimate Activity Duration: Tools and Techniques
6.5.2.2 Analogous Estimating
Use date from old project for same activity

Activity should be same quantity
Used when we dont have a lot of information
Pros: Low cost and Time
Cons: Lack of Accuracy
6
6.5.2.3 Parametric Estimating
Depends on unit estimate

Like square meter cost in construction
More Accuracy
6
6.5.2.4 Three-Point Estimating

Depend on Pert Technique:
tO: Optimistic tP: Pessimistic tM: Most
Likely
6
6.5.2.5 Group Decision-Making Techniques
Brainstorming , Delphi Technique , Nominal group

Used to enhance estimates
People who participate in estimates tend to keep their
words.
6
6.5.2.6 Reserve Analysis
Contingency Management
Reserves Reserves
Known-unknowns
Unknown-Unknowns
Accepted Identified Risks which have response
Strategies
Unseen work inside scope
Can be % or fixed number
Calculated by Monte-Carlo Simulation

Not part of Schedule Baseline
Visited while executing
Part of Overall Project Duration Requirements

Documented
6
6.6 The process of analyzing activity sequences,
Develop
Schedule durations, resource requirements, and
schedule constraints to create the project
schedule model.
6
Tools &
Inputs Outputs
Techniques
.1 Schedule management plan .1 Schedule network analysis .1 Schedule baseline
.2 Activity list
.3 Activity attributes .2 Critical path method
.2 Project schedule
.4 Project schedule network diagrams
.3 Critical chain method
.6 Resource calendars .3 Schedule data
.4 Resource optimization techniques
.7 Activity duration estimates
.8 Project scope statement .5 Modeling techniques .4 Project calendars
.9 Risk register
.6 Leads and lags
.10 Project staf assignments
.5 Project management plan updates
.11 Resource breakdown structure .7 Schedule compression
.12 Enterprise environmental factors
.8 Scheduling tool .6 Project documents updates
6
6.6.2 Develop Schedule: Tools and Techniques
6.6.2.2 Critical Path Method (CPM)
Float
A
Time
6
Free
A
Float
Total
B Float
Time
6
Critical path is the longest path represent minimum project duration

Calculate ES,LS,EF,LF for all activities using forward pass and backward
pass
It doesnt consider Resources Limitation
It is used to Calculate float for each path in the Scheduling model
Total float: amount of time the activity can be late without making project
late
Free float: amount of time the activity can be late without making next ES
late
6
6.6.2.3 Critical Chain Method
Bufer
Path 1
CP
Path 2
Bufer
6
6.6.2.3 Critical Chain Method
We add Bufer for each path to consider Resources Limitation and

Uncertainty
It developed from CPM
It consider resource levelling and optimization
Critical Chain is Critical Path constrained by resources
Instead of Float Management, we have Bufer Management
We add Feeding Bufer on non-critical paths
6
6.6.2.4 Resource Optimization Techniques
Resource
Resource Levelling
Smoothing
Adjust Actives Start and Finish to get Adjust Activities Start and Finish in Free
balanced resource requirements / Total Float
Used when we have same Resources

Put fixed limit for resources
for same period
Done on Critical Path Not on Critical path
It may extend the project No project extension

6
6.6.2.5 Modelling Techniques
What-if Scenario Analysis

Study each scenario and its impact on the project
What would happen in Scenario X?
It help with contingency plans
Simulation
Check project duration with diferent estimates (like three point estimates)
Most famous one is Monte Carlo Simulation
We choose several input values randomly and check possible project
duration
6
6.6.2.5 Modelling Techniques
6
6.6.2.7 Schedule Compression
Crashing Fast Tracking

Add Resources Make Activities Overlapping
Add Overtime Modify Leads and Lags
Applied on Critical Path May cause re-work
May increase Risk and Cost May increase Risk

6
6.6.3 Develop Schedule: Outputs
6.6.3.1 Schedule Baseline
It is the Approved version of Schedule Model, and used as basis of comparison
6.6.3.2 Project Schedule
In the beginning of project it is same as schedule baseline, then it get updates

Bar Chart or Gantt Chart
Milestone Chart
AON
6
6.6.3 Develop Schedule: Outputs
6.6.3.3 Schedule Data
Resources Histogram
Alternative Schedules in Best case or Worst Case
Contingency Reserves
Cash-Flow (later)
Procurement Schedule
Submittals Schedule
Assumptions and Constraints
Attributes
6
Tools &
Inputs Outputs
Techniques
.1 Project management plan .1 Performance reviews .1 Work performance information

.2 Project schedule .2 Schedule forecasts
.3 Resource optimization techniques

.3 Work performance data .3 Change requests
.4 Modeling techniques
.4 Project calendars .4 Project management plan updates
.5 Leads and lags
.5 Schedule data .5 Project documents updates

.6 Schedule compression

.6 Organizational process assets .7 Scheduling tool updates
6
6.7.2 Control Schedule: Tools and Techniques
6.7.2.1 Performance Reviews
To compare and measure time performance like:

Trend Analysis
Critical Path Method Float Management
Critical Chain Method Bufer Management
Earned Value Management
7
7. Project Cost Management
the process that establishes the policies,
Cost
Management procedures, and documentation for planning,
managing, expending, and controlling project costs.

Monitoring
Knowledg Initiati
e Areas ng Planning Process
Process Group
Group Process Group
Group
Group
7. Project Cost
7.2 Estimate Costs 7.4 Control Costs
Management
7
Tools &
Inputs Outputs
Techniques
.1 Project
management plan .1 Expert judgment
.2 Project charter
.2 Analytical .1 Cost
.3 Enterprise techniques management plan
environmental
factors
.4 Organizational .3 Meetings
process assets
7
7.1.2 Plan Cost Management: Tools and Techniques
7.1.2.2 Analytical Techniques
Used to calculate funding and revenue for the project
payback period
return on investment
internal rate of return
discounted cash flow
net present value
7
7.1.3 Plan Cost Management: Outputs
7.1.3.1 Cost Management Plan
Units and currency

Level of Precision (0.00)
Level of Accuracy (10%)
Organizational procedures links
Control Thresholds
Performance measurements rules (like EVM)
7
7.2 Estimate Costs
Rough Order of Magnitude ROM -25% to +75%

Definitive Estimate: -5% to +10%
Can Cut Costs

Fixed
Mobilization
Set-up Costs Variable
Material Costs
Direct
Salaries Indirect
Materials Taxes
Zakat
7
7.2 Estimate Costs
Tools &
Inputs Outputs
Techniques
.1 Cost management plan .1 Expert judgment
.2 Analogous estimating .1 Activity cost estimates

.2 Human resource management
plan .3 Parametric estimating
.3 Scope baseline .4 Bottom-up estimating
.5 Three-point estimating
.4 Project schedule .2 Basis of estimates
.6 Reserve analysis
.5 Risk register .7 Cost of quality

.6 Enterprise environmental factors
.9 Vendor bid analysis .3 Project documents updates
.7 Organizational process assets .10 Group decision-making
techniques
7
7.2 Estimate Costs
7.2.2 Estimate Costs: Tools and Techniques
7.2.2.2 Analogous Estimating
Use date from old project for same activity

Activity should be same quantity
Used when we dont have a lot of information
Pros: Low cost and Time
Cons: Lack of Accuracy
7
7.2 Estimate Costs
7.2.2.3 Parametric Estimating
Depends on unit estimate

Like square meter cost in construction
More Accuracy
7
7.2 Estimate Costs
7.2.2.5 Three-Point Estimating

Depend on Pert Technique:
cO: Optimistic cP: Pessimistic cM: Most
Likely
7
7.2 Estimate Costs
7.2.2.6 Reserve Analysis
Contingency Management
Reserves Reserves
Known-unknowns Unknown-Unknowns
Accepted Identified Risks which have response

Strategies Unseen work inside scope
Can be % or fixed number

Not part of Cost Baseline
Included in Cost Baseline
Part of Overall Project Cost Requirements

Visited while executing
Documented When used it moves to Cost baseline through CR

7
7.2 Estimate Costs
7.2.2.7 Cost of Quality (COQ)
Cutting of this
costs may
increase Risks
7
7.2 Estimate Costs
7.2.2.9 Vendor Bid Analysis
By ofer the job or part of it to vendors
7.2.2.10 Group Decision-Making Techniques
Brainstorming
Nominal Group Techniques
Delphi Technique
7
7.2 Estimate Costs
7.2.3 Estimate Costs: Outputs
7.2.3.1 Activity Cost Estimates
Direct and Indirect Costs

Inflation influence
Contingency Reserves
7.2.3.2 Basis of Estimates
How estimate done

Assumptions and Constraints
Level of Accuracy
7
Tools &
Inputs Outputs
Techniques
.1 Cost management plan
.1 Cost aggregation
.2 Scope baseline .1 Cost baseline
.3 Activity cost estimates .2 Reserve analysis

.4 Basis of estimates
.2 Project funding
.5 Project schedule .3 Expert judgment
requirements
.7 Risk register .4 Historical relationships
.8 Agreements .3 Project documents updates

.9 Organizational process .5 Funding limit reconciliation
assets
7
7.3.2 Determine Budget: Tools and Techniques
7.3.2.4 Historical Relationships
Parametric Estimates
Analogous Estimates
7.3.2.5 Funding Limit Reconciliation
Reconcile Funding limits

Funding may efect budget on time
Funding may require re-scheduling
7
7.3.3 Determine budget: Outputs
7.3.3.1 Cost Baseline
It is the Approved version of (Time Phased Project Budget)

Used as basis of comparison
Project Budget
Cost Baseline
Management
Reserves
Contingency
Work Package Cost Estimate
Reserves Activity Contingency
Activity Cost Estimate
Reserves
7
7.3.3 Determine budget: Outputs
7.3.3.2 Project Funding Requirements
7
7.4 Check influences on Cost Baseline
Control Manage Changes when happened
Costs
Monitor expenses and compare it to funds
Control cost performance and variance
7
7.4 Control Costs
Tools &
Inputs Outputs
Techniques
.1 Earned value management .1 Work performance information
.2 Forecasting .2 Cost forecasts
.2 Project funding requirements .3 To-complete performance index

.3 Change requests
(TCPI)

.4 Performance reviews
.3 Work performance data updates
.5 Project management software .5 Project documents updates
.4 Organizational process assets .6 Organizational process assets

.6 Reserve analysis
updates
7
7.4 Control Costs
7.4.2 Control Costs: Tools and Techniques
7.4.2.1 Earned Value Management
Term Definition Term Definition
EV Earned Value SV Schedule Variance
AC Actual Cost CV Cost Variance
PV Planned Value Schedule Performance

SPI
Index
BAC = Budget Budget At Completion
CPI Cost Performance Index
EAC Estimate At Completion
Budget of Remaining
ETC Estimate to Complete BAC EV
Work
VAC Variance at completion Remaining Funds BAC - AC

7
7.4 Control Costs
EV
SPI = SV = EV PV
PV
EV
CPI CV = EV AC
AC
=
7
7.4 Control Costs
SPI
Over Budget Under Budget
Ahead of Schedule Ahead of Schedule
0 1
CPI
Behind Schedule Behind Schedule
0
7
7.4 Control Costs
+
SV
Ahead of Schedule Ahead of Schedule
- 0 +
CV
Behind Schedule Behind Schedule
-
7
7.4 Control Costs
Activity: Cutting the Grass

Budget Cost: 1000 SAR
Duration: 10 Days
After 5 Days:
We spent 600 SAR 40
We Finished 40% of the Field
%
What is SPI,CPI,CV,SV for this activity?
7
7.4 Control Costs
Actual Cost = 600 SAR

Planned Value= 5 Days x 100 SAR= 500
SAR Cost=
Earned Value= 40% x 1000 SAR= 400
600
SAR
SPI = EV / PV = 400 / 500 = 0.8
CPI = EV / AC = 400 / 600 = 0.67
40
SV = EV PV = 400 500 = -100 %
Value=
CV = EV AC = 400 600 = -200 400
7
7.4 Control Costs
Over Budget
Behind Schedule
7
7.4 Control Costs
7
7.4 Control Costs
7.4.2.2 Forecasting
1st Scenario: Continue as Planned
Budget of Remaining Works =
BAC - EV EAC
ETC = (BAC EV) (/CPI=1) SPI

,
PI =1 BAC
C
EAC = ETC + AC =1
0.67
=
CPI
VAC = BAC - EAC

7
7.4 Control Costs
7.4.2.2 Forecasting
2nd Scenario: Consider Prev. CPI
EAC
BAC - EV
ETC = (BAC EV) / CPI SPI =

,
0.67 BAC
=
EAC = ETC + AC CPI
1
0.67
=
CPI
VAC = BAC - EAC

7
7.4 Control Costs
7.4.2.2 Forecasting
3rd Scenario: Consider Prev. CPI and SPI
EAC
BAC - EV
ETC = (BAC EV) / CPI x SPI

SPI=
, BAC
EAC = ETC + AC 0 .67
=
CPI
0.8
0. 67
=
CPI
VAC = BAC - EAC
7
7.4 Control Costs
7.4.2.2 Forecasting
CPI and SPI =

CPI = 1 CPI = Current
Current
)
7
7.4 Control Costs
7.4.2.2 Forecasting
ETC = BAC EV = 600

EAC = ETC + AC = 1200
VAC = BAC EAC = -200
1 AC = 600
EV = 400
ETC = (BAC EV) / 0.67 = 900
BAC = 1000
EAC = ETC + AC = 1500
2 40
SPI = 0.8
ETC = (BAC EV) / 0.67*0.8 = 1125 % CPI = 0.67
EAC = ETC + AC = 1725
3
7
7.4 Control Costs
7.4.2.3 To-Complete Performance Index (TCPI)
EAC = BAC
EAC
ETC = BAC AC BAC
TCPI
=
CPI
= 0.67
CPI
VAC = 0
7
7.4 Control Costs
TCPI: The required CPI to finish the project on the original budget
It is the most index to tell us what is the performance of the project
7
7.4 Control Costs
EAC = BAC = 1000
ETC = EAC - AC = 400

VAC = BAC EAC = 0
TCPI AC = 600
EV = 400
BAC = 1000
40
SPI = 0.8
% CPI = 0.67
7
7.4 Control Costs
7.4.2.4 Performance Reviews
Variance Analysis
SV
CV
VAC
The Accepted Variance get decrease with project progress
Trend Analysis
Earned Value Management
Q
Exam Questions
You are the project manager for a railroad construction
project. Your sponsor has asked you for a forecast for the cost
of project completion. The project has a total budget of
$80,000 and CPI of .95. The project has spent $25,000 of its
budget so far. How much more money do you plan to spend on
the project?
A. $59,210
B. $80,000
C. $84,210
D. $109,210
Q
Exam Questions
You are managing a project with a total budget of $450,000.
According to the schedule, your team should have completed
45% of the work by now. But at the latest status meeting, the
team reported that only 40% of the work has actually been
completed. The team has spent $165,000 so far on the project.
How would you BEST describe this project?
A. The project is ahead of schedule and within its budget.
B. The project is behind schedule and within its budget.
C. The project is ahead of schedule and over its budget.
D. The project is behind schedule and over its budget.
Q
Exam Questions
You are managing a construction project that is currently
being initiated. You met with the sponsors, and have started to
work on identifying stakeholders. Youve documented several
key stakeholders and identified their needs. Before you can
finish initiating the project, your company guidelines require
that you make a rough order of magnitude estimate of both
time and cost, so that the sponsor can allocate the final
budget.
Whats the range of a rough order of magnitude (ROM)
estimate?
A. 10% to +10%
B. 25% to +75%
C. 50% to +100%
D. 100% to +200%
Q
Exam Questions
You are managing a construction project to install new door
frames in an office building. You planned on spending $12,500
on the project, but your costs are higher than expected, and
now youre afraid that your project is spending too much
money. What number tells you the difference between the
amount of money you planned on spending and what youve
actually spent so far on the project?
A. AC
B. SV
C. CV
Q
Exam Questions
Youre managing a construction project to install several
hundred air conditioner panels in a new office building. You
have completed 350 panels out of a total of 900 planned
panels, but according to your schedule you should have
completed 400 of them. Your companys contract states that
youll be paid a fixed price of $75 per panel. Youve spent
$45,000 so far on the project. Which of the following BEST
describes your situation?
A. The CPI is .813, which means your project is currently over your
budget.
B. The CV is $4,350, which means your project is currently over your
budget.
C. The TCPI is 1.833, which is the minumum CPI you need to stay
within budget.

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Why I need PMP

Why I need PMP

The Exam: Duration

The Exam: Requirements

The Exam: Fees

The Exam: Passing Score

Project? a unique product, service, or result.

Considered Finished in three cases:

Complete all objectives (from Owner Side).

Over the Product Life Cycle

Why we make a Project?

Market Social Customer Legal

Project Management Office PMO

Employees are stafed

The plans, processes, policies, procedures,

The Project Team can follow OPA when

Internal Guidelines and Policies

Refer to conditions, not under the control

Organizational culture and structure

All interested entities that may afect on

Initiating Initiating Initiating

Product Concept Submitted

Construction Projects Design Projects Software Projects

7.1 Plan Cost Management

9.2 Acquire Project Team

10. Project 10.3 Control

Raw Data Analyzing raw Reports about

a) The performing organization is a weak matrix

A. The portfolio manager judges the success of the portfolio by

A. Each phase is typically done by a separate team.

C. Theres an increased risk to the project due to potential for rework.

D. Every phase must go through all five process groups.

.3 Agreements .1 Project charter

Description of the product that the project create

Describe from business point of view if the project worth

Can be Contract, Letter of Agreement, Letter of Intent,

High Level Summary

All other management plans

.2 Work performance data

Perform Project Activities

Outcome from 4.5 Perform Integrated Change Control

Approve Implement Follow up

Part of EEF that Contain:

Any Unique and Verifiable result required to be produced to

Work Work Work

Raw Data Analyzing raw Reports about

CR: A formal proposal to modify any document, Deliverable, or

Corrective Preventiv Defect

.3 Cost forecasts .2 Analytical techniques .2 Work performance reports

Comes from Control Schedule Process

4.4.1.3 Cost Forecasts

Comes from Control Costs Process

Approve Implement Follow up

Regression Grouping Casual Root Cause

Earned Value Variance

Comparing Performance Results with Plan may require CR

4.4.3.2 Work Performance Reports

Reports is the way to show information in useful

Change Management Control:

.3 Change requests .2 Meetings

.5 Organizational process .3 Change control tools .4 Project documents

Approve Implement Follow up