#PMP – Rapidex Pass @ First Attempt - An Easy Reference Guide for PMP Exam by SN Panigrahi

SN Panigrahi,
Essenpee Business Solutions, India
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SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler.
He is an International Consultant - Corporate Trainer, Mentor & Author
He has diverse experience and expertise in Project Management, Lean Six
Sigma; Contract Management, Supply Chain Management, Procurement,
Strategic Sourcing, Global Sourcing, Logistics, Exports & Imports,
Indirect Taxes – GST etc.
He had done more than 150 Workshops Globally on above
Published more than 500 Articles; More than 90 Youtube Presentations &
90 SlideShares
He is an Engineer + MBA +PGD ISO 9000 / TQM with around 29 Yrs of
Experience
He is a certified PMP® from PMI (USA) and PMI India Champion in 2016
Also a Certified Lean Six Sigma Black Belt from Exemplar Global & KPMG
Have been Trained in COD for 31/2 Yrs. on Strategy & Leadership
GST Certified – MSME – Tech. Dev. Centre (Govt of India)
ZED Consultant – Certified by QCI – MSME (Govt of India)
Member Board of Studies, IIMM
Committee Member Indirect Tax; International Trade, FTCCI
Empanelled Faculty in NI MSME
He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and
international public forums and received a number of awards for his writings and contribution to business thoughts.
SN Panigrahi 9652571117
snpanigrahi1963@gmail.com
Hyderabad

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SN Panigrahi, Essenpee Business Solutions, India

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Project is a temporary endeavor to achieve defined objectives by creating a unique product,
service, result or outcome with a definite start and end date.
It is - Performed by people - Constrained by limited resources - Planned, executed and controlled
What is Project
Project
Features
Temporary
Endeavour
Unique
Product,
Service, Result
or Outcome
Achieve
Defined
Objectives
As per PMBOK 6th Edition
Temporary doesn’t mean shorter duration of the project it refers to the
project’s engagement having a definite beginning and end
The duration of a project is finite - Limited Time Frame - a Definite Start and
End Date
Projects are undertaken to Fulfill Objectives by producing deliverables
Projects Drive Positive Change
Projects Enable Business Value Creation
Projects involve doing something that has not been done before in the same
environment – Outcome May be Tangible or Intangible – Not Repetitive
The project may require some innovation to be completed.

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As per PMBOK 6th Edition
Project Management is the Application of
Knowledge, Skills, Tools and Techniques to meet
the Project Requirements*
Project Management is the Planning, Organizing,
Monitoring and Controlling of all aspects of a project
in a continuous process to achieve its objectives, both
internal and external
Accomplished through appropriate application and
integration of project management processes identified
for the project
*Project requirements are stakeholders need and
expectations from the project
Set of Skills
Application
of Tools &
Techniques
A Series of
Processes

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Portfolio
Sub-
Portfolio’s
Programs Projects Operations
Portfolio
Related
Or
un-related
Projects, Programs, Sub-portfolios,
and Operations
Portfolio Management
➢ Corporate Top Level Strategies
➢ Decision Making,
➢ Prioritization, Review,
➢ Realignment, and
➢ Reprioritization of a firm’s projects.
Programs
Program
Only Related
Projects
Program Management
❖ Focuses on Interdependencies between
Projects to determine optimal approach
for managing them.
❖ Managing groups of projects in a
coordinated way
Projects
Only Related
Activities
Project Management
Focus on to achieve the project objectives :
Project Completion as per Scope, within
Budget & Timelines
Sub-Programs
Projects Projects

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Portfolio
Oil & Gas Power
Power Project
- 1
Power Project
- 2
Power Project
- 3
Road
Projects
Rail
Projects
Water
Projects
Water
Project - 1
Water
Project - 2
Operations
Related Projects
Programs
Projects
Programs
Related Projects

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Portfolio Management
Aligns with organizational strategies by
selecting the right programs or projects,
prioritizing the work, providing resources
etc
Program Management
Project Management
Harmonizes its projects and program
components and controls interdependencies.
Focusses on Optimal Approach for Managing
them
develops and implements plans to achieve
specific scope driven by objectives of the
program or portfolio
Organizational
Project
Management
(OPM)
Aligning
Organizational
Strategieswith
OPM : Aligning Portfolios – Programs - Projects
OPM
The Framework used to align
project, program, and portfolio
management practices with
organizational strategy and
objectives, and customizing or
fitting these practices within the
organization’s context, situation, or
structure.

Directive
Controlling
Supportive
•Directive PMOs take control of the projects by directly managing the
projects. This injects a great deal of professionalism into the
projects, and, since each of the project managers originates
and reports back to the directive PMO, it guarantees a high
level of consistency of practice across all projects
•Controlling PMOs provide Support and Require Compliance through
various means. Requirements might include adoption of
specific methodologies, templates, forms, conformance to
governance, and application of other PMO controlled sets of
Rules. The degree of control provided by the PMO is moderate
Supportive PMOs provide support in the form of on-demand
expertise, consultative role to projects by supplying templates, best
practices, training, access to information and lessons learned from
other projects. The degree of control provided by the PMO is low.
Project Management Office (PMO)
A project management office (PMO) is a management structure that standardizes the project-related
governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.
There are several types of PMO structures in organizations, each varying in the degree of control and
influence they have on projects within the organization, such as:

SN Panigrahi, Essenpee Business Solutions, India 10
The three most significant project constraints -- schedule, cost and scope -- are sometimes known as the triple
constraint or the project management triangle. Additionally Three more Constraints are Added : Quality, Risk
& Resources.
If any one of these factors changes,
then at least one of the other factors
also will change.
Competing Project Constraints

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When scope, time, and cost are defined within the early phases of the project.
Any changes must then be carefully managed through Change Control
Mechanism. Also known as waterfall life cycles
The deliverable is produced through a series of iterations that successively add
functionality within a predetermined time frame - getting feedback on a regular
basis. The deliverable are completed only after the final iteration.
Small Incremental Deliveries Frequently. Each increment includes Analyse, Design, Build
&Test, Deliver. Each increment integrates additional parts of the solution until the final increment,
where the remaining parts of the solution are integrated.
A project life cycle is the phases that a project passes through from its start to its completion. It
provides the basic framework for managing the project. PMBOK® ed 6
Within a project lifecycle, there is typically at least one phase related to developing the product,
service or result; also known as a development life cycle, of which there are several types:
Adaptive Life Cycle is also called a flexible or change-focused method (or agile or change-
driven methods) and it Combines both Incremental & Iterative Life Cycles to Deliver
Incremental Small Packages & Repeated take Iterations (Feedback) for Continuous
Improvements.

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➢ If we need any feedback for any Change or Improvement,
it comes from the successor phase to the previous one,
we make Iteration.
➢ Requirements dynamic, repeated until correct, single delivery
➢ Develop the product through a series of repeated cycles,
➢ Allows feedback on partial completed or unfinished work to
improve and modify deliverable.
➢ Works well when uncertainty is high, when project incurs
frequent changes and stakeholders have different view of
desired
Analyze Design
Build
Test
Deliver
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 1
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 2
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 3
Analyze Design
Build
Test
Deliver
Incremental
Delivery - n
❖ Requirements dynamic, performed once
for a given increment, frequent small
deliveries
❖ Provide finished deliverables which
customer can use immediately
Feedback for
Improvement
Feedback for
Improvement
Feedback for
Improvement
Final
Delivery

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Conception
Initiation
Analysis
Design
Construction
Testing
Deployment
Conception
Initiation
Analysis
Design
Construction
Testing
Deployment
Conception
Initiation
Analysis
Design
Construction
Testing
Deployment
Conception
Initiation
Analysis
Design
Construction
Testing
Deployment

Progressive
Elaboration
Rolling Wave
Planning
Prototyping
Progressive elaboration involves continuously improving and detailing a plan
as more detailed and specific information and more accurate estimates become
available. Progressive elaboration allows a project management team to define
work and manage it to a greater level of detail as the project evolves.
The technique of rolling wave planning is a form of progressive elaboration. The
earliest parts of the project are planned in sufficient detail for work to begin.
Later phases of project work are planned at a high level. As the project
progresses, and more information impacting the work becomes available, plans are
elaborated in sufficient detail to accomplish the work.
Prototyping is a method of obtaining early feedback on requirements by providing a “tangible” working
model or a mock-up of the expected product before actually building it. Prototypes help to identify
problems early in the project and reduce project risks.
Let’s take an example again. Your company wants to build a commercially viable model of a Hydrogen-
powered car. Initially, your researchers build several working models (prototypes) of the car, maybe of a
smaller size, to conduct experiments and check the feasibility of the project.
Based upon the results of the feasibility studies, your company decides whether to move forward with or kill
the project.
SNPanigrahi,EssenpeeBusinessSolutions,India

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Time Line
The earliest parts of the project
are planned in sufficient detail
for work to begin.
Later phases of project work
are planned at a high level.
As the project progresses,
and more information
impacting the work
becomes available, plans
are elaborated in sufficient
detail to accomplish the
work.

Software Project - Phases
Design BuildAnalyze Test Deliver
Civil Infrastructure Project - Phases
Design ProcurementPlanning Construction Inspection
Handover /
Deliver
Project Life cycle - is a sequence of project
phases from project initiation to closure, generally
phased in a sequential order.
A Project Life Cycle is the Phases that a Project
Passes through from its start to its completion.
The term project phase refers to a collection of
activities within a project. Each project
phase is goal-oriented and ends at a milestone.
Process Groups are logical groupings
of Project Management Processes.
There are Five Process Groups :
Initiation, Planning, Execution,
Monitoring & Control, Closure.
These are Structured into Each
Phase & are Common for All Types
of Projects.

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A project phase is a “collection of logically related project activities that culminates in the
completion of one or more deliverables” PMBOK® Guide. These phases are often identified by
the work to be completed within them (e.g. concept, design, build, or test)
A Phase Gate is a review that is held at the end of a phase. It is undertaken to establish that the
project has both completed the activities within the phase and to ensure the project remains
justified from a business/strategic point of view.
Phase gates may also be known as phase reviews, stage gates, go/no go decision points, or
kill points
It is the point in time during the execution phase of the project where the stakeholders or the
sponsor review the progress and decide on whether to continue or kill the project.

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Though the project
management processes are
presented as discrete
elements, they are seldom
either discrete or onetime
events;
they are overlapping
activities that occur
throughout the project with
well-defined interfaces.
If the project is divided into phases, the Process Groups interact within each phase. In multi-phase
projects, processes are repeated within each phase until the criteria for phase completion have been
satisfied
Sixth

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➢ Each stage in the project life cycle has
different characteristics in terms of cost and
staffing levels, level of uncertainty, and the cost
of changes
➢ Cost and staffing – levels are low at the
start, peaks in the middle and fall off, and
drop rapidly as the project draws to a
conclusion.
Sixth

•Cost of changes is lower at the start and higher
as the project continues.
•Completion – The probability of successful
completion generally gets progressively higher as
the project continues.
•Level of uncertainty and Risk is greater at the
start , chance of successful completion grows
higher as the project continuous
Sixth

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A stakeholder is an individual, group, or organization or an Entity who may affect, be affected by, or perceive itself to be affected
by a decision, activity, or outcome of a project. Stakeholders may be actively involved in the project or have interests that may be
positively or negatively affected by the performance or completion of the project. Different stakeholders may have competing
expectations that might create conflicts within the project. Stakeholders may also exert influence over the project, its deliverables, and
the project team in order to achieve a set of outcomes that satisfy strategic business objectives or other needs“
Stakeholders may be internal or external; positive or negative; performing or advising.
Sixth
External stakeholders:
❖ Customers,
❖ End users,
❖ Suppliers,
❖ Shareholders
❖ Regulatory bodies, and
❖ Affected Local
Community
Internal stakeholders:
❖ Sponsor,
❖ Project Mgr & Project Team
❖ Resource Manager,
❖ Project management office
(PMO),
❖ Portfolio Steering Committee,
❖ Program Manager,
❖ Project Managers of other
Projects,
Stakeholders have different levels of authority and Stakeholder Influence is highest at the start and
gets progressively lower as the project continues.
Stakeholder identification is a continuous process throughout the life cycle of the project.

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Process Groups
Total
49
Processes
10
Knowledge
Areas
The Inputs, Tools, Techniques and Outputs (ITTOs) of each
Process is laid out

INITIATING
Develop Project Charter
with Defined Objectives
Also Identify Stakeholders
PLANNING
Develop Detailed Project Plan
EXECUTING
Directing and Managing
Project Execution
MONITORING &
CONTROLLING
Measuring – Feedback &
Taking Corrective
Measures
CLOSING
Complete Formalities,
Contract Closure,
Archive Documents
SN Panigrahi
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Undertake Business Study, Benefit Analysis, Develop Charter - Start a New Project by Defining
its Objectives, Purpose and Deliverables to be Produced - Broad Scope, Milestones, Budget,
High Level Risks, Appoint Project Manager & Authorize to use Resources; Identify
Stakeholders, & Determine their Influence.
.
Create a Comprehensive Project Plan - Refine the High-level Tasks - Determine How you will Plan the
Planning, Executing, and Monitoring and controlling of Subsidiary Plans; Develop the Final Project
Management Plan, Project Documents, and Performance Measurement Baseline - Gain formal approval
of the Project Management Plan from the Sponsor; Hold a Kickoff Meeting with Key Stakeholders
Execute as per Plan; Implement the Most up-to-date Version of the Project Management Plan – including
Approved Change Requests by Following Organization Policy, Practices & Procedures; Select Overview
Team; Overview Work Performance of Vendors; Measure & Reports on Project Performance; Implement
Risk Responses (Strategies); Rise Change Requests if Required.
Compare, Analyze & Evaluate Project Performance against Management Plans & Baselines; -
Determine Variances; Recommend Changes; Perform Quality Inspections of Deliverables -
Get Acceptance of Deliverables from Customers.
Confirm that all Project Requirements have been Met. Obtain Formal (legal) Sign-off and Final
Acceptance of the Product of the Project from the Customer. Obtain Financial, Legal & Administrative
Closure; Transfer the Product / Service / Result to the Next Phase or to the Operations; Celebrate Project
Success! Release Resources

(No. of Processes)
Project Knowledge Areas As per PMBOK
6th Edition,
there are
5 Process
Groups
&
10 Knowledge
Areas
= Total 49
Processes
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Knowledge Areas
Initiating Process Group
Planning Process Group Executing Process Group
Monitoring & Controlling
Process Group
Closing Process Group
4. Project Integration
Management
4.1 Develop Project
Charter
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
5. Project Scope
Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
5.5 Validate Scope
5.6 Control Scope
6. Project Schedule
Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Durations
6.5 Develop Schedule
6.6 Control Schedule
7. Project Cost
Management
7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project Quality
Management
8.1 Plan Quality Management 8.2 Perform Quality Assurance 8.3 Control Quality
9. Project Resource
Management
9.1 Plan Resource Management
9.2 Estimate Activity Resources
9.3 Acquire Resources
9.4 Develop Team
9.5 Manage Team
9.6 Control Resources
10. Project
Communications
Management
10.1 Plan Communications
Management
10.2 Manage Communications 10.3 Monitor Communications
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk
Analysis
11.4 Perform Quantitative Risk
Analysis
11.5 Plan Risk Responses
11.6 Implement Risk Responses
11.7 Monitor Risks
12. Project Procurement
Management 12.1 Plan Procurement Management
12.2 Conduct Procurements 12.3 Control Procurements
13. Project Stakeholder
Management
13.1 Identify Stakeholders 13.2 Plan Stakeholder Management 13.3 Manage Stakeholder
Engagement
13.4 Monitor Stakeholder
Engagement
Project Management Frame Work

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A Project can be viewed as a Total System which
Transforms Input into Output, and has a
Feedback Mechanism to assure that the output
meets the goals and objectives set for the project.
System - a set of things working together as parts of
a mechanism or an interconnecting network.
Output of one Process may become Input to Other Processes
Input
• All that is Required
to Carryout a
Process
Process
Tools & Techniques
• ….. Which are Applied on the
Inputs. This is where Project
Manager’s Skills are Put to Use
Output
• What is Produced out of this
Process – Project
Deliverables
PMBOK® describes the fundamentals of project
management in terms of processes. Each Project
Management Activity is Accomplished as a
Process. A process has some Inputs. A Set of
Tools and Techniques are then applied on these
inputs. As a Result some outputs are produced.
These outputs may further become inputs to some
other processes.
Feedback
Each process is characterized by its Input, Tools
& Techniques & output (ITTO)
SNPanigrahi

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The project manager is the person assigned by the performing organization to lead the team
responsible for achieving the project objectives. The project manager’s reporting relationships are
based on the organizational structure and project governance.
In addition to any specific technical skills and general management proficiencies required for the project,
project managers should have at least the following attributes:
Knowledge
Skills
Abilities
Other Attributes
Knowledge about project management, the business environment,
technical aspects, and other information needed to manage the project
effectively;
Skills needed to effectively lead the project team, coordinate the work,
collaborate with stakeholders, solve problems, and make decisions
Abilities to develop and manage scope, schedules, budgets,
resources, risks, plans, presentations, and reports
Other attributes required to successfully manage the project, such as
personality, attitude, ethics, and leadership

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The ideal skill set – the Talent Triangle – is a combination of technical, leadership and
strategic and business management expertise.
Technical Project
Management
Domain Specific
Examples:
•Requirements gathering
techniques
•Project scheduling and
Costing
•Risk Management
•Scope Management
•Project Planning
•Project Control
Leadership
knowledge, skills and
behaviors specific to
leadership-oriented skills
examples:
•Negotiation; Conflict
management
•Motivation; Communication
•Giving/receiving feedback
•Influencing
•Problem solving
•Team building
•Leading groups and teams
Strategic & Business
Management
examples:
• Strategic planning/alignment; Mission Business
and environmental analysis; Goals and objectives
•Finance
•Operational functions – e.g. marketing, legal
•Contract management
•Complexity management
•Innovation

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PM
Interpersonal
Skills
Leadership
Team building
Motivating
Communicating
Influencing
Decision MakingCoaching
Political and Cultural
Awareness
Negotiating
Facilitating
Managing Conflict

PMBOK® Guide) – Sixth edition, Project Management Institute, Inc., 2017,
The Project Manager
• Fulfills numerous roles within their sphere of influence
• Role reflect project manager’s capabilities and are representative
of the value and contributions of the project management
profession
• Works to balance the competing constraints on the project with
the resources available
• Performs communication between sponsor, team members, and
other stakeholders
• Uses soft skills to balance the conflicts and competing goals of
the stakeholders, in order to achieve consensus
PPP = Project, Program, Portfolio
5SN Panigrahi, Essenpee Business Solutions, India

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Interpersonal
Role
➢ Work with a
Diverse Range
of
Professionals
➢ Solve Team
Disputes /
Conflicts
➢ Build Positive
Relationships
➢ Motivate
Team
Members
Informational
Role
❖ Communicate
with all
stakeholders
effectively
❖ Keep people up-
to-date
❖ Organize Team
Meetings
Frequently
❖ Provide
Performance
Feedback
Decisional
Role
➢ Make a Range of
Decisions at
Each Stage
➢ Stay Clear and
Focused
➢ Balance the
Competing
Constraints
➢ Scope, Time,
Cost and
Resource etc.
➢ Prevent Scope
Creep and
Budget Slippage
Management
Role
❖ Responsible for
Accomplishing
Project
Objectives
❖ Recruit and
Manage Team
❖ Manage finances
❖ Respond well to
ambiguity
❖ Adhere to
business
priorities

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Initiating
Process Group
Develop
Project
Charter
Identify
Stakeholders
The Initiating Process Group consists of those processes
performed to define a new project or a new phase of an
existing project by obtaining authorization to start the project or
phase.
The purpose of the Initiating Process Group is to align the
stakeholders’ expectations and the project purpose, inform
stakeholders of the scope and objectives, and discuss how
their participation in the project and its associated phases can
help to ensure their expectations are met.
Within the Initiating processes, the initial scope is defined and initial financial resources are committed.
Stakeholders who will interact and influence the overall outcome of the project are identified. If not
already assigned, the project manager is appointed. This information is captured in the project charter and
stakeholder register. When the project charter is approved, the project is officially authorized, and the
project manager is authorized to apply organizational resources to project activities.

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Undertake Bussiness Study –
Problems & Opportunities; Make
sure the Business Case
Supports the Organizations
Strategic Objectives.
Use the Benefits Management
Plan to understand the Benefits
that the Project is Expected to
Deliver to the Business
Sponsor(s) Selects the
Project Manager.
Sponsor(s) Determines
the Authority of the
Project Manager &
Assigns him to Use
Resources
Identify Stakeholders, &
Determine their Influence,
Expectations, & Impact. Do
Stakeholder Mapping &
Stakeholder Register.
Collect Historical Information.
Collect and use any Relevant,
Existing Agreements (including
contracts) that might be
Generating the Project or that will
be Required during the Project.
Determine High-level
Requirements,
Constraints, Assumptions,
and Risks.
Fit high-level
stakeholder needs,
wants, and expectations
into Requirements
Ensure the High-level
Product Scope is
Documented.
Perform High-Level
Estimating for the
Project Schedule and
Budget
Find Existing Processes,
Standards, and Compliance
Requirements that Affect the
Project.
Determine Success
Criteria and
Measurable Project and
Product Objectives
Work with the customer
and others to determine
High-Level Acceptance
Criteria
Define the Exit Criteria
for the project (when
and why the project or
phase should be closed).
Determine the
initial project
organization
Obtain Formal Approval
of the Project
Charter.

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Develop Project Charter
Develop Project Charter is the process of developing a document that formally
authorizes the existence of a project and provides the project manager with the
authority to apply organizational resources to project activities.
The key benefits of this process are that it provides a direct link between the
project and the strategic objectives of the organization, creates a formal record
of the project, and shows the organizational commitment to the project.
This process is performed once, or at predefined points in the project.

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➢ Benefit Measurement Methods : Numerical & Non-Numerical
❖ Numerical Methods : Benefit/Cost Ratio; Payback Period; NPV; IRR; PI; ROI; Scoring Model (Multi Criteria
Decision Making)
❖ Non-Numerical Methods : Sacred Cow; Murder Board; Operational Necessity; Competitive Necessity
➢ Constrained Optimization Methods
Project Selection
Methods
How are potential projects
selected from all possible
projects?
The Business Case provides the Reasoning (Justification) for Initiating a Particular Task or Project –
Feasibility Study - Determining if the project is Worth the Investment: Provides Information about
Background of the Project, Expected Strategic / Commercial Benefits, Gap Analysis, Risks and
Expected Cost.
Business Case
Development
What is the business need or
justification for the project?
Strategic : Business Growth; Diversification; New Market Entry; Process Improvement; Competitive
Advantage; Profitability; etc……
Financial : Profits; Returns on Investment; Working Capital; Capital Budget etc……
Non-Financial – Operational : Operational Necessity – Convenience, Flexibility;
Project Selection
Criteria
Does the project meet the
required strategic, financial, and
non-financial criteria?
Who are Our Stakeholders – What Influence they have?
What is the Primary Role of the Project Sponsor?
The project sponsor is an internal stakeholder who provides initial idea, opportunity, or issue that needs to be addressed by the
project; Provides Financial and Resource support for the project and has ultimate accountability for its success. The project
manager reports directly to the project sponsor, and it is important that the two have a good working relationship.
Who are our Customers? – Internal & External
Project Stake Holders
Sponsor / Customer
The Project Statement of Work (SOW) contains a high-level narrative description
of the product, service, or result delivered by a project – Before the Project
Provided by the Project Initiator or Customer or Sponsor
Project SOW
Project Initiation : Business Case & Project Selection

The Six Sigma Project Charter – Elements :
➢ The Business Case, which sets out why a project is important to an organization – the
Need; Why Taken up – Justification; If Taken up what will be the Outcome & if Not
Taken up What will be the Consequences.
➢ The Problem Statement / Opportunity Statement, which defines an issue and how it is
affecting the organization – Covers : What is the Problem (CTQ – Current) – Since When
the Problem Existing – Where is the Problem – How did you Come to Know – What is the
Impact
➢ The Goal Statement, which should be in line with the problem you seek to solve, and
which should be SMART – Specific, Measurable, Attainable, Relevant and Time-bound.
➢ The Scope Statement, which defines the limits of the project and shows both what
should be included and what should be excluded.
➢ The Project Milestones, outlining the key activities that need to be completed and the
projected dates of completion.
➢ The Project Budget, provides broad estimate of all costs that are likely to be incurred
➢ A list of the Team Members that will be working on the project, which will depend on the
problem that needs solving and project scope.
➢ Sign-Off with Date – Project Sponsor must Sign-off with Date in-order to Formally Lunch
the Project

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Project Design
Deliverable -2
Financing
Deliverable -3
Placing
Contracts
Deliverable -4
Project
Execution
Deliverable - 5
Milestone -2
Project
Design
Ready by
30th Sep
Milestone - 3
Availability of
Funds
By
2nd Oct
Time Lines
Total Project Schedule
Example:
Common Facility Center (CFC) Project
Project
Handover
Deliverable -6
Project Planning
Deliverable - 1
Milestone - 4
Contract
Finalization
By 1st Nov
Milestone - 5
Project Work
Completion
15th Jan
Milestone - 6
Project
Handover to
Customer
By 26th Jan
Milestone - 1
Overall Project
Milestones,
Timelines,
Budgets etc
Finalized
By 15th Sep
SN Panigrahi
Starting of
the Project
15th Aug
End of the
Project
26th Jan
A project milestone is a task of zero duration that shows Significant Achievement along a
project timeline.

41
A deliverable is a Quantifiable tangible or intangible good or service produced as a result of a
project or part of a project that is intended to be delivered to a customer (either internal or
external).
A deliverable could be a Product, a Part, a Report, a Document, a Software Product, a Server
upgrade or any other building block of an overall project.
A work breakdown structure is based on these Deliverables.
Deliverable
Deliverable
Quantifiable
Results
Tangible
or
Intangible
To be
Delivered
To a
Customer

42
Project Selection Methods
Financial Analysis
Strategic Alignment
Solving Problems
Taking Advantage of Opportunities
Fulfilling Requirements
Time Frame
Weighted Scoring Model

43
Benefit Cost Ratio
Payback Period
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
Return on Investment (RoI)
Non Numerical Models
Sacred Cow
Operating
Necessity
Murder board
Competitive
Necessity
Numeric (Financial)
Models

DepreciationSunk costOpportunity Cost
Purchase Value
•The initial cost to purchase the
resources (or equipment)
Salvage Value
•The scrap value of the resources (or
equipment) at the end of the project
Depreciation
•Large assets purchased by the
company lose value over time
(Purchase Value –Salvage Value).
➢ A Reduction in the value of an
asset over time, due in
particular to wear and tear.
Depreciation =
(Purchase Value –Salvage Value) /
Useful Life
"Sunk cost is a loss which
should not play any part in
determining the future of the
project."
Unfortunately, project sponsors
and other senior executives (and
even project managers) often
value completion over
usefulness and it does take
courage to suggest to your
sponsor that you stop a project
that has already seen significant
investment
These costs are often forgotten
in business cases, but they are
essential to know about.
Opportunity Cost is the Loss of
Potential Future Return from
the Best Alternative (which is Not
Selected) Project when a choice is
required for several mutually
exclusive projects.
It can also be defined as “the
opportunity (potential return) that
will NOT be realized for the
second best project not selected”.
Since there are limited resources
such as human, time, money, etc.,
we cannot work on infinite
number of projects at the same
time. Opportunity cost is a
concept to help you judge which
project(s) to take and which
project(s) NOT to take based on
the relative potential returns of
the project(s).

45
Identify Stakeholders
The process of identifying project stakeholders regularly and analyzing and documenting relevant
information regarding their interests, involvement, interdependencies, influence, and potential impact
on project success.
The key benefit of this process is that it enables the project team to identify the appropriate focus for
engagement of each stakeholder or group of stakeholders. This process is performed periodically
throughout the project
as needed.
A stakeholder analysis is a process of identifying these people before the project begins; grouping them
according to their levels of participation, interest, and influence in the project; and determining how
best to involve and communicate each of these stakeholder groups throughout.

46
Planning Process
Group
The Planning Process Group consists of those
processes that establish the total scope of the effort,
define and refine the objectives, and develop the course
of action required to attain those objectives.
The processes in the Planning Process Group develop
the components of the project management plan and
the project documents used to carry out the project.

49
Planning Process Group : Activities
Determine How you
will Plan the Planning,
Executing, and
Monitoring and
controlling of
Subsidiary Plans
Refine the High-level
Requirements /
Assumptions &
Constraints from
Project Initiating
Create a Description
of the Project
Deliverables, the Work
Required to Do, and
their Acceptance
Criteria (Project Scope
Statement).
Break Down the
Deliverables into
Smaller, More
Manageable Pieces
(WBS) & Create
Scope Baseline.
Create Descriptions of
Each Work Package in
a WBS Dictionary so
that the work can be
understood and produced
without gold plating.
Break down the Work
Packages from the
WBS into Lists of
Activities to
Produce them.
Sequence Activities &
Find Duration of
Activities & Find Critical
Path; Develop a
Schedule & Evaluate
Schedule Constraints,
Resource Optimization
Develop a Preliminary
Budget & Compare it to
the Budget Constraint in
the Project Charter &
then Determine Cost
Baseline.
Determine Quality
Policies, Practices,
and Standards, and
then Determine
Metrics to Measure
Quality Performance.
Estimate Resource
Requirements, Plan for
Acquisition, Team
Building, Training,
Assessment, and
Release of Team
Members.
Clearly Determine all
Roles and
Responsibilities on the
Project and what work
they will need to do.
Develop a Team Charter
Plan what will be
communicated on
the project, to whom,
by whom, when, and
how.
Identify Risks &
Analyse & Come out
with Strategies for
Negative & Positive
Risks.
Finalize the
Procurement
Statement of Work
and other Bid
Documents & Select
Contracting Methods
Plan How to Involve
Stakeholders and
Manage their
Expectations during
the project.
Develop the Final
Project Management
Plan, project
documents, and
Performance
Measurement Baseline
Gain formal
approval of the
Project Management
Plan from the
Sponsor, Team, &
Managers of
Resources.
Hold a Kickoff
Meeting with
Key
Stakeholders
Project planning is
iterative. Each
planning process may
use the results of
the previous
processes & Update
Throughout the
project, return to the
planning processes to
do Rolling Wave
Planning

50
Project Management Plan
A Project management plan is a formal, approved
document that defines how the project is executed,
monitored, and controlled. It may be a summary or a
detailed document and may include baselines, subsidiary
management plans, and other planning documents.
Subsidiary
Management
Plans
Base Lines
Scope Baseline,
Schedule Baseline,
Cost BaselineProject Documents
Project Documents covers documents created during and
for the project itself. The list of project documents is
extensive, and basically includes all other documents
used on the project that are not part of the Project
management Plan

51
Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
Schedule Management
6.5 Develop Schedule (*Check
resource availability before Publish)
Cost Management
7.2 Estimate Cost
Quality Management
8.1 Plan Quality Management
Resource Management
Communication
Management
10.1 Plan Communication
Management
Risk Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Analysis
11.4 Perform Quantitative Analysis
Procurement
Management
12.1 Plan Procurement
Management
Stakeholder Management
13.2 Plan Stakeholder
Engagement
Project Management Plan – Subsidiary Plan Processes
Develop Project
Management Plan is an
Integrated Plan. It has
Subsidiary Plan Processes.
A Project Management Plan -
the output of Develop Project
Management Plan is a formal
document that defines how
a project is going to be
carried out. It outlines the
scope, goals, budget, timeline,
and deliverables of a project,
and it's essential for keeping
a project on track.
The ongoing refinement of the
project Management plan is
called progressive
elaboration, indicating that
planning and documentation
are iterative
or ongoing activities.

52
4.2 Develop Project Management plan Integration Management
Sub-Plans
Scope Management
5.2 Collect requirements
5.3 Define Scope
5.4 Create WBS
Schedule Management
6.5 Develop Schedule (*Check resource availability before Publish)
Cost Management7.2 Estimate Cost
8.1 Plan Quality Management Quality Management
Resource Management
10.1 Plan Communication Management Communication Management
11.1 Plan Risk Management Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Analysis
11.4 Perform Quantitative Analysis
12.1 Plan Procurement Management Procurement Management
13.2 Plan Stakeholder Engagement Stakeholder Management

53
A baseline in project management is a
clearly defined starting point for your
project plan.
It is a fixed reference point to measure
and compare your project’s progress
against.
This allows you to assess the performance
of your project over time.
A project baseline typically has three
components: schedule, cost, and scope.
Often, these three baselines are
separately monitored, controlled, and
reported to ensure each is on track.
When fully integrated, it may be
referred to as a Performance
Measurement Baseline (PMB).
Develop
Schedule
Scope
Baseline
Determine
Budget
Schedule
Baseline
Create WBS
Cost
Baseline

54
Base Lines
Scope Baseline,
Schedule Baseline,
Cost Baseline
Execution
Execute as per Plan
Implement the most up-to-
date version of the project
management plan,
Monitor & Control
How the Project is Conforming
to the Plan and Taking Action
to Address Variances.
Comparing Plan & Execution
Perform Integrated
Change Control
Change Requests
Approved Change Requests
Validate Scope
Getting Acceptance
from Customers
Verified
Deliverables
Accepted
Deliverables Close
Project or
Phase

55
Change Management Plan.
Performance Measurement
Baseline
Management Reviews
Configuration Management
Plan
Project Life Cycle
Development Approach
Describes how the change requests throughout the project will be formally authorized and
incorporated.
Describes how the information about the items of the project (and which items) will be
recorded and updated so that the product, service, or result of the project remains consistent
and/or operative.
An integrated scope-schedule-cost plan for the project work against which project execution
is compared to measure and manage performance.
Describes the series of phases that a project passes through from its initiation to its closure.
Describes the product, service, or result development approach, such as predictive,
iterative, agile, or a hybrid model.
Identifies the points in the project when the project manager and relevant stakeholders will
review the project progress to determine if performance is as expected, or if preventive or
corrective actions are necessary.
Most components of the project management plan are produced as outputs from other processes, though some are produced during this
process. Those components developed as part of this process will be dependent on the project; however, they often include but are not
limited to:

Project Documents
1. Activity attributes 19. Quality control measurements
2. Activity list 20. Quality metrics
3. Assumption log 21. Quality report
4. Basis of estimates 22. Requirements documentation
5. Change log 23. Requirements traceability matrix
6. Cost estimates 24. Resource breakdown structure
7. Cost forecasts 25. Resource calendars
8. Duration estimates 26. Resource requirements
9. Issue log 27. Risk register
10. Lessons learned register 28. Risk report
11. Milestone list 29. Schedule data
12. Physical resource assignments 30. Schedule forecasts
13. Project calendars 31. Stakeholder register
14. Project Communications 32. Team charter
15. Project Schedule 33. Test and evaluation documents
16. Project schedule network diagram 34. Work Performance Data
17. Project scope statement 35. Work Performance Information
18. Project team assignments 36. Work Performance Report

57
Project Execution Group
The Executing Process Group consists of those processes performed to
complete the work defined in the project management plan to satisfy the project
requirements.
This Process Group involves coordinating resources, managing stakeholder
engagement, and integrating and performing the activities of the project in
accordance with the project management plan.
The key benefit of this Process Group is that the work needed to meet the project requirements and
objectives is performed according to plan.
A large portion of the project budget, resources, and time is expended in performing the Executing Process
Group processes. The processes in the Executing Process Group may generate change requests.
If approved, the change requests may trigger one or more planning processes that result in a modified
management plan, project documents, and possibly new baselines

59
Implement the Most up-
to-date Version of the
– including Approved
Change Requests
Execute & Complete
Work Packages; Achieve
Work Results that Meet
Requirements.
Recommend Changes to
be evaluated in the Perform
Integrated Change Control
process. Make Updates
Follow Organization
Policy, Practices &
Procedures; Guidelines;
Standards
Establish and Manage
Communication
Channels; Exchange
Information & Feedback
Select the Team; Hold
Team-Building Activities;
Provide Training to the
Team Members; Evaluate
Team Performance
Use the Team Charter for
Guidance on Team
Interactions – Follow
Ground Rules
Facilitate Conflict
Resolution using conflict
Resolution Techniques.
Guide, Assist,
Communicate, Lead,
Negotiate, Facilitate, and
Coach.
Hold Meetings to Identify
and Address Issues,
Assess Risks, and keep
the Project Work Moving
Forward; Remove
Roadblocks.
Use an issue log to
record project issues and
details about their
resolution, including who is
responsible for resolving
each issue with Timeline.
Implement Risk
Responses (Strategies) &
use Contingency Plans in
case of Occurrence of Risk
Invite Tenders & Receive
Seller Responses to Bids
- Review Proposals,
Negotiate Contract Terms
with Prospective Sellers &
Select Vendors
Overview Work
Performance of Vendors
& manage any seller-
related conflicts or
challenges.
Gather Initial
Measurements and details
about activities of project
work (work performance
data).
Produce and Distribute
Reports on Project
Performance
Assess Individual Team
Member Performance.
Recognize and Reward
the Team and individuals
for their work
Involve & Manage
Stakeholder Engagement
and Expectations, Increase
Project Support, and
Prevent Possible Problems.
Execution Process Group : Activities

60
9. Project Resource
Management
4. Project Integration
Management
8. Project Quality
Management
10. Project Communications
Management
13. Project Stakeholder
Management
11. Project Risk
Management
12. Project Procurement
Management
9.3 Acquire Resources
4.3 Direct and Manage
Project Work
8.2 Manage Quality
10.2 Manage
Communications
13.3 Manage Stakeholder
Engagement
11.6 Implement Risk
Responses
12.2 Conduct
Procurements
4.4 Manage Project
Knowledge
9.4 Develop Team 9.5 Manage Team
SN Panigrahi,
Essenpee Business Solutions, India

61
Project Monitoring &
Control Process Group
The Monitoring and Controlling Process Group consists of those processes required to track, review, and
regulate the progress and performance of the project; identify any areas in which changes to the plan are
required; and initiate the corresponding changes.
Monitoring is collecting project performance data, producing performance measures, and reporting
and disseminating performance information.
Controlling is comparing actual performance with planned performance, analyzing variances,
assessing trends to effect process improvements, evaluating possible alternatives, and
recommending appropriate corrective action as needed.
The key benefit of this Process Group is that project performance is measured and analyzed at regular
intervals, appropriate events, or when exception conditions occur in order to identify and correct
variances from the project management plan

62
Project Monitoring &
Control Process Group
The Monitoring and Controlling Process Group also involves:
➢ Evaluating change requests and deciding on the appropriate response;
➢ Recommending corrective or preventive action in anticipation of possible problems;
➢ Monitoring the ongoing project activities against the project management plan and project baselines; and
➢ Influencing the factors that could circumvent the change control process so only approved changes are
implemented.
The Monitoring and Controlling Process Group monitors and controls the work being done within
each Knowledge Area, each Process Group, each life cycle phase, and the project as a whole.

63
Monitoring is the collection, recording, and reporting of project
information that is of importance to the project manager and other
relevant stakeholders.
Monitoring Requires the project manager to focus their attention on how
the project is progressing. The project manager will need to assess how
stakeholders are participating, communicating, and feeling about the
project, the work, and the uncertainties that have been identified.
Monitoring
(to watch over)
Control uses the monitored data and information to bring
actual performance into agreement with the plan.
Control Involves Comparing Actual Performance with Planned
Performance and taking appropriate Corrective Action &
Preventive Actions.
Controlling
(to exercise
influence over)

64
4. Project Integration Management
5. Project Scope Management
6. Project Schedule Management
7. Project Cost Management
8. Project Quality Management
9. Project Resource Management
10. Project Communications Management
11. Project Risk Management
12. Project Procurement Management
13. Project Stakeholder Management
4.5 Monitor and Control Project Work
4.6 Perform Integrated Change Control
5.5 Validate Scope
5.6 Control Scope
6.6 Control Schedule
7.4 Control Costs
8.3 Control Quality
9.6 Control Resources
10.3 Monitor Communications
11.7 Monitor Risks
12.3 Control Procurements
13.4 Monitor Stakeholder Engagement

66
Compare Project
Performance against
Management Plans &
Performance
Measurement Baselines.
Analyze & Evaluate Work
Performance Data.
Prepare Work Performance
Reports from the Analyzed
Data and Measurements.
Determine Variances;
Recommend Changes,
Including Defect Repair and
Preventive and Corrective
Actions. Evaluate the
Effectiveness of Implemented
Corrective Actions.
Identify the Root Causes of
Problems; Analyze Impact
of Changes; Submit Change
Request to CCB & Obtain
Approval or Rejection or
Deferment
Track and Evaluate Naming
Conventions, Version
Control Processes, the
Storage & Retrieval System
(Configuration
Management), & the use of
the PMIS.
Control Scope,
Schedule, and Cost to
their Baselines &
Generate Change
Requests
Perform Quality Inspections
of Deliverables; Make
Decisions to Accept or Reject
Completed Deliverables.
Try to Improve Quality
Data Gathering to Confirm
that Communications &
Stakeholder Engagement
Efforts are Effective and
working as Planned
Evaluate the
Effectiveness of Risk
Responses.
Look for Newly Arising
Risks.
Reanalyse Identified Risks.
Perform Procurement
Inspections & Reviews
of Seller Performance to
the Contract.
Control Procurements
through Actions such as
Reviewing, Approving &
Paying Invoices,
Administering Claims, &
Performing Inspections &
Audits.
Close Procurements
after final Deliverables
are Accepted.
Assess the
Effectiveness of Project
Control Systems;
Identify the Need for
Replanning; Refine
Control Limits as Needed
Use and interpret
earned value
calculations;
Recalculate how much
the Project will Cost and
How Long it will take,
Create Forecasts.
Obtain; Calculate
Estimate to Complete
Additional Funding if
Needed
Evaluate Stakeholder
Relationships &
Involvement to Determine if
they Require Improvement.
Evaluate Stakeholder
Satisfaction.
Arrange Customer Meets
& Get Acceptance of
Deliverables from
Customers
Monitor & Control Process Group : Activities

67
Project Closing Process
Group
The Closing Process Group consists of the process(es) performed to formally complete or close a project,
phase, or contract.
This Process Group verifies that the defined processes are completed within all of the Process
Groups to close the project or phase, as appropriate, and formally establishes that the project or
project phase is complete.
The key benefit of this Process Group is that phases, projects, and contracts are closed out
appropriately. While there is only one process in this Process Group, organizations may have their own
processes associated with project, phase, or contract closure.
Therefore, the term Process Group is maintained.
This Process Group may also address the early closure of the project, for example, aborted projects or
cancelled projects..

69
Confirm that all Project
Requirements have
been Met.
Verify and Document that
the Project, or Project
Phase, Meets Completion
or Exit Criteria set in Place
During Project Planning
Obtain Formal (legal)
Sign-off and Final
Acceptance of the
Product of the Project
from the Customer.
If any issues prevent final
acceptance by the
customer, negotiate a
settlement or other
resolution.
If the project was
terminated before
completion, document the
reasons for termination and
the status of the project
and deliverables.
Confirm all Contracts
have been Formally
Closed; update and
Archive Records.
Make Final Payments
or Account all
Payables & Complete
Cost Records
Obtain Financial, Legal &
Administrative Closure &
Ensure Transfer of Liability.
Update Project Records,
Create the Final Project
Report
Check the Issue Log and
ensure there are no open
issues. Obtain Feedback
from Relevant Stakeholders
to Evaluate their
Satisfaction
Analyze & Document the
Success & Failure and
Effectiveness of the
Project. Gather Final
Lessons Learned &
Archive.
Transition / Transfer
the Product / Service /
Result to the Next
Phase or to the
Operations
Hand off the completed
project deliverables to the
appropriate stakeholders
(the customer, operations
and maintenance, etc.).
Validate that the Exit
Criteria have been Met.
Complete Project (or
phase) Closure
Celebrate Project
Success!
Release Resources
Project / Phase Closure Process Group : Activities

70
➢ Confirm the Formal Acceptance of the Deliverable / Legal Closure
➢ Transfer the product / service/ result to the next phase or to the operations
➢ Obtain Financial, Legal and Administrative Closure and ensure Transfer of Liability
➢ Obtain Feedback from relevant stakeholders to evaluate their satisfaction
➢ Create the Final Project Report
➢ Update Lessons Learned
➢ Archive Project Documents
➢ Release Resources
➢ Celebrate the Project Success.
Activities Involved in Closure of Project?

Project
Charter
Assumption
Log
Work
Performance
Reports
Change
Requests
Approved
Change
Requests
Project
Management
Plan
- Sub-plans
- Baselines
Lessons
Learned
Register
Project document
updates
Lessons
Learned Register
Final product,
service or result
transition
Final report
Deliverables
Work
Performance
Data
Issue Log
Change
Requests
Business
Case
Benefits Mgt,
Plan
Agreements
SOW
EEF & OPA
Project Mgt,.
Plan;
Project
Documents;
Work
Performance
Information
Agreements
EEF & OPA
Project Mgt,.
Plan;
Project
Documents;
Work Performance
Reports
Change Requests
EEF & OPA
Project
Charter
Outputs from
other
Processes
EEF & OPA
Project Mgt,.
Plan;
Project
Documents;
Deliverables
EEF & OPA
Project Mgt,. Plan;
Project Documents;
Accepted
Deliverables
Business Documents
Agreements
Procurement
Documentation
OPA
Project Mgt,.
Plan;
- Baselines
Project
Documents;
Approved
Change
Requests
EEF & OPA
Project Integration Management
Initiation
Group
Planning
Group
Execution Group
Monitoring & Control
Group
Close Project
or Phase
Input
Process
Output
Develop
Project
Charter
Monitor and
Control
Project Work
Perform
Integrated
Change
Control
Develop
Project
Management
Plan
Manage
Project
Knowledge
Close
Project or
Phase
Direct and
Manage
Project Work
Develop
Project
Charter
Develop
Project
Management
Plan
Direct and
Manage
Project Work
Manage
Project
Knowledge
Monitor and
Control
Project Work
Perform
Integrated
Change
Control
Close
Project or
Phase

73
➢ Project Selection Methods
➢ Project Business Case – Goal Statement
➢ Project Scope Statement - Statement of Work (SOW)
➢ SOW Vs Business case
➢ Project Charter
➢ Project Business Documents
➢ Project Benefits Management Plan
➢ Assumption Log
➢ Project Kick-off Meeting
➢ Project Management Plan & its Components
➢ Performance Measurement Baselines
➢ Project Documents
➢ Knowledge Management – Knowledge Types
➢ Output, Outcome, Benefit
➢ Perform Integrated Change Control (PICC)
➢ Change Control Board (CCB)
➢ Change Request Types
➢ Corrective Vs Preventive Action Vs Defect
Repair
➢ Work Authorization System
➢ Opportunity Cost; Sunk Costs
➢ ‘Project Closure
➢ Enterprise Environmental Factors
➢ Organizational Process Assets (OPAs)
➢ Lessons Learned

74
Expert Judgement
Data Gathering
➢ Brainstorming
➢ Focus Groups
➢ Checklists
➢ Interviews
Interpersonal & Team Skills
➢ Conflict Management
➢ Facilitation
➢ Meeting Management
➢ Leadership
➢ Networking
➢ Political awareness
Project management information system (PMIS)
Data Analysis
➢ Alternative Analysis
➢ Cost-Benefit Analysis
➢ Earned Value Analysis
➢ Root Cause Analysis
➢ Trend Analysis
➢ Variance Analysis
➢ Document Analysis
➢ Regression Analysis
Decision Making
➢ Voting
➢ Autocratic decision making
➢ Multi-criteria decision analysis

75
➢ Ensuring that the deliverable due dates of the product, service, or result; project life cycle; and the benefits
management plan are aligned;
❖ Providing a project management plan to achieve the project objectives;
➢ Ensuring the creation and the use of the appropriate knowledge to and from the project as necessary;
❖ Managing the performance and changes of the activities in the project management plan;
➢ Making integrated decisions regarding key changes impacting the project;
❖Measuring and monitoring the project’s progress and taking appropriate action to meet project objectives;
➢ Collecting data on the results achieved, analyzing the data to obtain information, and communicating this
information to relevant stakeholders;
❖Completing all the work of the project and formally closing each phase, contract, and the project as a whole;
and
➢Managing phase transitions when necessary.

76
Develop Project
Charter
Develop Project
Management Plan
Direct and Manage
Project Work
Manage Project
Knowledge
Monitor and
Control Project
Work
Perform
Integrated Change
Control
Close Project or
Phase
The process of developing a document that formally authorizes the existence of a project and provides the
project manager with the authority to apply organizational resources to project activities.
The process of defining, preparing, and coordinating all plan components and consolidating them into an
integrated project management plan.
The process of leading and performing the work defined in the project management plan and implementing
approved changes to achieve the project’s objectives.
The process of using existing knowledge and creating new knowledge to achieve the project’s objectives and
contribute to organizational learning.
The process of tracking, reviewing, and reporting overall progress to meet the performance objectives defined
in the project management plan
The process of reviewing all change requests; approving changes and managing changes to deliverables,
organizational process assets, project documents, and the project management plan; and communicating the
decisions.
The process of finalizing all activities for the project, phase, or contract.

77
A change request is a formal proposal to modify any document, deliverable, or baseline. When issues
are found while project work is being performed, change requests can be submitted, which may
modify project policies or procedures, project or product scope, project cost or budget, project
schedule, or quality of the project or product results
Other change requests cover the needed preventive or corrective actions to forestall negative impact later
in the project.
Any project stakeholder may request a change. Change requests are processed for review and
disposition through the Perform Integrated Change Control process.
Change requests can be initiated from inside or outside the project and they can be optional or legally /
contractually mandated.
Change Requests May Include:
Corrective Action
An intentional activity that
realigns the performance of
the project work with the
project management plan.
Preventive Action
An intentional activity that
ensures the future
performance of the project
work is aligned with
the project management
plan.
Defect Repair
An intentional activity to
modify a nonconforming
product or product
component.
Updates
Changes to formally
controlled project documents,
plans, etc., to reflect modified
or additional ideas
or content.

78
Process
Perform
Integrated
Change
Control
(PICC)
is the process
of Reviewing all
Change
Requests &
Deciding on
Change.
Process Group
Monitor & Control
Knowledge Area
Integration Management
Input
Change Requests
Executing
Processes
Monitor &
Control
Processes
Output
Direct & Manage
Project Work
Change Log
Approved
Change
Requests
Many Processes
Produce Change
Requests as an Output. Control
Quality
Control
Procurement
If the Customer /
Client is not
involved in the
Process, their
Consent is Required
to Implement the
Change Request.

Whether Change
is Required?
Changes Requested by Many
Stakeholders
Changes may be Required
from Various Process
Reject Change
Yes
No
Formally Document &
Raise Change Request
Record Change Request in
Change Log
Analyse Impact
of Change Request
Submit Change Request
with the Proposal to CCB
CCB has
Authority
to Accept
or Reject
the
Change
Request
Change Request
Accepted by
CCB?
Update Change Log;
Update Project Mgt. Plan;
- Update Baselines
Update Project Documents
Communicate to Concerned
Stakeholders
Approved Change Request
Yes
Update Change Log;
Communicate to
Initiator
After Updates
Implement Changes
as per the Revised Project
Management Plan &
Project Documents
Direct & Manage Project
Work
Control
Quality
No
Control
Procurement
Execute

81
Plan Scope
Management
Collect
Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
The process of creating a scope management plan that documents how the project
and product scope will be defined, validated, and controlled
The process of determining, documenting, and managing stakeholder needs and
requirements to meet project objectives.
The process of developing a detailed description of the project and product.
The process of subdividing project deliverables and project work into smaller, more
manageable components.
The process of Formalizing Acceptance of the Completed Project Deliverables.
The process of Monitoring the Status of the Project and Product Scope and
Managing Changes to the Scope Baseline.
Project Scope Management includes the processes required to ensure that the project includes all the work
required, and only the work required, to complete the project successfully. Managing the project scope is primarily
concerned with defining and controlling what is and is not included in the project.

82
Project Mgt. Plan
Scope Baseline
Project
Documents;
Work
Performance
Data; OPA
Project Mgt. plan
Project; Scope
Mgt Plan; Scope
Baseline
Agreements
Verified
Deliverables
EEF & OPA
Project Mgt. Plan
Scope Mgt, Plan;
Project Scope
Statement
Requirements
Documentation
EEF & OPA
Project charter
Project Mgt.
plan;
Scope Mgt. plan;
Requirements
documentation;
EEF & OPA
Project charter
Project Mgt. plan
Scope Mgt. Plan
Requirements
Mgt. Plan;
Business Case
Agreements;
EEF & OPA
Project Charter
Project
Management
plan; Quality
Mgt. Plan;
EEF & OPA
Output
Scope Mgt.
Plan;
Requirements
Mgt Plan
Requirements
Documentation;
Réquipements
Traceability
Matrix (RTM)
Project
scope
statement
Scope
Baseline
-Scope
Statement; WBS;
WBS Dictionery
Accepted
Deliverables
Work
Performance
Information;
Change
Requests
Project Planning Process Group Monitor & Control Group
Control
Scope
Validate
Scope
Create
WBS
Define
Scope
Collect
Require
ments
Plan
Scope
Mgt.
Plan
Scope
Mgt.
Collect
Require
ments
Define
Scope
Create
WBS
Validate
Scope
Control
Scope

83
Scope Vs Requirements
Project Scope Vs Product Scope
Requirements Traceability Matrix (RTM)
Context Diagram Vs Affinity Diagram
Product Analysis
Project Scope Statement
Work Breakdown Structure (WBS)
Scope Management Plan
Requirements Management Plan
Scope Baseline
Verification VS Validation
Validate Scope Vs Control Quality
Validate Scope Vs Control Scope
Accepted Deliverable Vs Verified Deliverable Vs
Validated Deliverable

84
Expert Judgement
Data Gathering
➢ Brainstorming
➢ Focus Groups
➢ Interviews
➢ Questionnaire & surveys
➢ Benchmarking
Interpersonal & Team Skills
➢ Nominal Group Technique
➢ Facilitation
➢ Observation/conversation
Context Diagram
Prototyping
Data Analysis
➢ Alternative Analysis
➢ Trend Analysis
➢ Variance Analysis
➢ Document Analysis
Data Representation
➢ Affinity Diagram
➢ Mind mappingProduct Analysis
Inspection
Decision Making
➢ Voting
➢ Multi-criteria decision analysis
Decomposition

85
Product Scope Project Scope
Product Scope is about the product details; what the
product will look like, how will it work, its features,
and more. Product Scope defines all the
Specifications, Features & Functionalities of a
product from the User point of view.
The Project Scope includes all the work or
activities required to Develop & Deliver the
Product or Service or Deliverables. The work
performed to deliver a product, service, or result with
the designated features and functions.
For example, if the product is a bridge, the product
scope might be its length, width, and load strength.
If the product is a cell phone, its product scope will
be its screen size, battery backup, processor speed,
camera type, and memory.
To develop a product features, you establish a
project which has a schedule, budget, and
resource allocation. In other words, the work you
do to construct your product is the Project Scope.
Example : Lets say you have a plot of land and you want to build a house on it. Product: House
Product Scope :
House should have 3 storey's, 1000 sq. m of built up area, 4
bedrooms with attached baths, 2 living room, a kitchen,
basement and a garage. Exteriors should be white.
Project Scope :
Getting Required Approvals / Legal Permits, Hiring a Building
Contractor, an Architect and an Interior Designer, Estimating
the Cost, Taking Bank Loan, Construction etc.

86
Scope Statement
Work Breakdown
Structure (WBS)
WBS Dictionary
The Scope Baseline is the approved version of a scope statement, work
breakdown structure (WBS), and its associated WBS dictionary. Scope
baseline can be changed only through formal control procedures and is used
as a basis for comparison. Scope baseline is a component of the project
management plan. A project's results and progress are measured against
that baseline. Stakeholders have input but the actual scope baseline is
created by the project team.

87

88
Drawing
5.1
Marking of
Layout
5.2
Ground
Levelling
5.3
Foundation
5.4
Column
Casting
5.5
Construction
of Walls
5.6
Roofing
5.7
M & E Works
Miscellaneous
Works
5.8
Compacting the
Ground
5.4.1
PCC
5.4,2
Footing
Reinforcement
5.4.3
Shuttering
5.4.4
Footing
Concrete
5.4.5
Conceptualization
of Project
1.0
Design
2.0
Bidding &
Contracting
3.0
Procurement
4.0
Construction
5.0
Closure
6.0
Common Facility Centre (CFC) Level 0
Broad Project
Level 1
Control Account
Level 2
Major Planning
Packages
Level 3
Work Packages

89
Control Account
A Management Control Point
where scope, budget (resource
plans), actual cost, and
schedule are integrated and
compared to earned value for
performance measurement
Planning Package
A work breakdown structure
component below the control
account with known work
content but without detailed
schedule activities. It is
larger and more general than
a work package in terms of
time, scope, and budget.
Work Package
A Deliverable or Project work
component at the Lowest
Level of each Branch of the
Work Breakdown Structure
for which Cost & Duration
can be Estimated &
Managed.
Individual work packages are the building
blocks of all project deliverables and form
the basis by which the project is
monitored, measured, and assessed
Work Breakdown Structure (WBS)
A Hierarchical Decomposition of Total Scope of Work to be Carried out
by the Project Team to Accomplish the Project Objectives and Create the
Required Deliverables. Each Descending Level of the WBS Represents
an Increasingly Detailed Definition of the Project Work.

90
WBS Dictionary Contains Following
❖ Code of account identifier
❖ Description of work
❖ Assumptions and constraints
❖ Responsible organization
❖ Schedule milestones
❖ Associated schedule activities
❖ Resources required
❖ Cost estimates
❖ Quality requirements
❖ Acceptance criteria
❖ Technical references
❖ Agreement information
WBS Dictionary
A WBS dictionary is a document that provides detailed information about
each element in the WBS, including work packages and control
accounts.

91
Input
Deliverables
Process
Quality Control
Output
Verified Deliverables
Input
Verified
Deliverables
Process
Validate Scope
Output
Accepted Deliverable
checked for correctness
Internal Inspection
Formal Sign-off is obtained
Process
Direct & Manage Project Work
Output
Deliverables
Acceptance by Customer
Verified
Deliverables - have
been completed and
checked for
correctness by
the Quality Control
Process - Internal
Inspection.
Accepted
Deliverables -
Acceptance by
Customer -
have been Accepted
through
the Validate Scope
process.

Plan Schedule
Management
Define
Activities
Sequence
Activities
Estimate Activity
Durations
Develop
Schedule
Control
Schedule
The process of establishing the policies, procedures, and documentation for
planning, developing, managing, executing, and controlling the project schedule.
The process of identifying and documenting the specific actions to be performed to
produce the project deliverables.
The process of identifying and documenting relationships among the project
activities..
The process of estimating the number of work periods needed to complete
individual activities with the estimated resources.
The process of analyzing activity sequences, durations, resource requirements, and
schedule constraints to create the project schedule model for project execution and monitoring
and controlling..
The process of monitoring the status of the project to update the project schedule
and manage changes to the schedule baseline.
Project Schedule Management includes the processes required to manage the timely completion of the
project.

93
Project Mgt. plan
Project
Documents
Schedule
Baseline
Work
Performance
Data; OPA
Project Mgt.
Plan; Schedule
Mgt. Plan;
Scope Baseline;
Project
Documents
Agreements
EEF & OPA
Project Mgt.
plan;
Schedule Mgt.
Plan;
Scope
Baseline;
Project
Documents
EEF & OPA
Project Mgt. plan;
Schedule Mgt.
Plan;
Scope Baseline;
Project
Documents;
Activity list
Activity;
Attributes
EEF & OPA
Project Mgt.
plan
Schedule Mgt.
Plan;
Scope Baseline
WBS
EEF & OPA
Project
Charter
Project Mgt.
plan;
Scope Mgt.
Plan
EEF & OPA
Output Schedule
Mgt. Plan
Activity list
Activity
Attributes;
Milestone
List
Project
Schedule
Network
Diagrams
Duration
Estimates;
Basis of
Estimates
Schedule
Baseline;
Project
Schedule;
Schedule Data;
Project
Calendars
Work
Performance
Information
Schedule
Forecasts
Change requests
Project Planning Process Group
Monitor &
Control Group
Control
Schedule
Develop
Schedule
Estimate
Activity
Duration
Sequence
Activities
Define
Activities
Plan
Schedule
Mgt.
Control
Schedule
Develop
Schedule
Estimate
Activity
Duration
Sequence
Activities
Define
Activities
Plan
Schedule
Mgt.

94
Estimating Techniques
Analogous, Parametric, Three-Point, Bottom-up
Control Account
Gantt Chart
Summary Activity or Hammock Activity
Activity Vs Work Package
Work Package Vs Planning Package
Network Diagrams - PDM Technique
FS,FF,SS,SF Dependencies
Dependencies – Hard logic Vs Soft Logic
Float Types – Free, Total, Project
Forward Pass & Backward Pass
Lead Vs Lag
Project Evaluation & Review Technique (PERT)
Critical Path Method (CPM)
Critical Chain Method (CCM)
Fast Tracking Vs Crashing
Resource Leveling Vs Resource Smoothing
ROM Estimate Vs Definitive Estimate
Contingency Reserve Vs Management Reserve
Schedule Baseline

95
Decomposition
Rolling Wave Planning
Estimates
➢ Expert Judgement
➢ Analogous estimating
➢ Parametric estimating
➢ Three Point estimating
➢ Bottom-up estimating
➢ Data Analysis
➢ Decision marking
Data Analysis
Data Representation
Network Diagraming
➢ Precedence diagramming methods
➢ Dependency determination & integration
➢ Leads and Lags
➢ Schedule network analysis
➢ Critical path method
➢ Resource optimization techniques
➢ Schedule compression
➢ Agile release planning

96
A project is defined as a combination of inter
related activities that must be executed in a
certain order before the entire task can be
completed.
An important part of project planning is to
Decompose the Total Project Scope to Break
Down into small enough manageable
components to be considered as a Work
Package.
The Work Packages are then further
decomposed into distinct Activities.
These Activities are latter put in to inter related
logical sequence for more accurate time
estimation.
Project
Scope
WBS
-Work Packages
Activities

97
Finish-to-Start (most commonly used~95%) :
B can't start before A is finished, or in another words Activity A must be
completed before Activity B can begin.
Ex: 1.Relay Race
2.Plastering can’t start unless brick wall is completed
Start-to-Start : B can't start before A starts or in another words Activity B can start
after Activity A has started
Ex: Level concrete (successor) cannot begin until pour foundation (predecessor)
begins.
Finish-to-Finish : B can't finish before A is finished or in another words Activity A
must be complete before Activity B can finish
Ex : Shooting the film (predecessor) required to finish before editing film (successor)
to finish
Start-to-Finish (very rarely used)
B can't finish before A starts
Ex: Start of the new shift of the security guard signal the finish shift of the current
security guard.
PDM has Four Types of Dependencies or logical relationships :

Critical Path
Method (CPM)
The critical path method (CPM) is a project modeling technique that's used
by project managers to find the important deadlines and deliver a project on
time.
CPM is that technique of project management which is used to manage only
certain (i.e., time is known) activities of any project.
Critical Path
A Critical Path is determined by identifying the longest stretch of dependent activities
and measuring the time required to complete them from start to finish.
Critical Activity
An activity that has total float equal to zero. An activity with zero float is not necessarily
on the critical path since its path may not be the longest. The Critical Activity by
definition has no float.
PERT
Project Evaluation and Review Technique (PERT) is a method of analyzing the
tasks involved in completing a given project, especially the time needed to complete
each task, and to identify the minimum time needed to complete the total project.
PERT is that technique of project management which is used to manage uncertain
(i.e., time is not known) activities of any project.

99
Program Evaluation and Review Technique (PERT) - is a method to analyze the
involved tasks in completing a given project, especially the time needed to complete
each task, and to identify the minimum time needed to complete the total project.
It is commonly used in conjunction with the Critical Path Method (CPM).
AEF : 6+5+4 = 15
BCEF : 4+6+5+4 = 19
BDG : 4+7+4 = 15

Lead Time
Lag Time
Lag is a delay in the successor activity and can be found on all activity relationship types.
A
B
2 Days
FS – 2 Days
A
B
14
Days
FS + 14 Days
Used only on finish-to-start activity relationships. It is
overlap between tasks that have a dependency. For
example : FS-2 days, means successor can start 2 days
before predecessor finishes.
The amount of time whereby a successor activity can be advanced with respect to
a predecessor activity. In schedule compression (fast tracking), successor activity
begins before completion of predecessor. A lead is generally represented as a
negative value.
Waiting Time Between Two Activities - the amount of
time whereby a successor activity will be delayed with
respect to a predecessor activity - imposed delay to
successor activity. A lag is generally represented as a
positive value.
For example, wait 14 days for concrete to cure (FS +14 days)

Expert Judgment
Expert judgment can be used by using historical information to give duration estimates
from similar projects. It can also be used to reconcile different estimating methods.
Analogous
Estimating
Based on previous activity (historic data) from similar activity or project with similar
nature (a form of expert judgment) - used when little is known on very similar scope
- works well when project is small – rough estimation – generally less costly and less
time consuming, but less accurate. Analogous is a TOP DOWN estimating method.
Parametric
Estimating
It is an estimation technique which utilizes the statistical relationship that exists between a
series of historical data and a particular delineated list of other variables.
Examples : square footage in a contraction project, the number of lines or code that exist in a
software application, and other similar variables.
This information is them implemented for the purposes of calculating and demonstrating an
estimate for the entity of activity parameters.
Parametric is More Accurate. Bottom up is Accurate than Analogous Estimate
Three-Point
Estimating
The three-point estimate is a simple yet useful approach to estimating the time or
cost of work items. Three point estimating is a technique which utilizes an
Optimistic, Most Likely and Pessimistic Estimate to determine the
ideal estimate value for a project task. Bottom-Up Estimation & More Accurate than
others

Float or Slack
Float or Slack is a measure of the excess time and resources available to complete a task.
Free float is the amount of time an activity can be delayed without delaying the early start of any
immediate successor activity.
Free Float = (ES of Successors) – (EF of Activity in Question)
Total Float also called float or slack is the amount of time an activity can be delayed without delaying the overall (whole)
project duration. Total float is shared between activities in a sequence.
Float = Late Start (LS) – Early Start (ES)
Or
Float = Late Finish (LF) – Early Finish (EF)
Positive slack would indicate ahead of schedule; negative slack would indicate behind
schedule; and zero slack would indicate on schedule.
Negative Float or Negative Slack, is the amount of time beyond a project's scheduled completion that a task
within the project requires.
Negative total float is caused when a constraint on the late dates is violated by duration and logic.
Negative Float means that activity is or will be behind schedule.

103
Resource Optimization
Resource Leveling & Resource Smoothing
Resource leveling is sometimes called Resource Constrained Scheduling (RCS). If Resources are Limited,
Leveling Lengthens the schedule and Increases the Cost and other constraints – Impacts the Critical
Path. We can use Resource Levelling both for human and material resources.
Resource Smoothing tries to Smoothen the Inequality of Work Distribution. It will not change the Critical
Path - and the completion date may not be delayed; it tries to make the best use of slack.
We apply resource smoothing after doing resource-leveling.
Resource Leveling Resource Smoothing
It applies the resource constraints
to the project and may result in
change in project duration.
We apply resource smoothing after
doing resource leveling and we
make use of slack, and will not
result in change of project duration.
Resource Leveling is primarily
driven by resource constraints, like
you do not have more than 45
hours of the given resource for a
week.
Resource smoothing is more to do
with desired limits, like we do have
45 hours available for given
resource but we wish that we
allocate 38 hours per week so we
have some breathing space.

Fast Tracking
•Fast Tracking : activities are done in parallel (mainly critical path activities) or
allowed overlapping of activities to shorten the project duration. Fast tracking, look at
discretionary dependencies Fast tracking may result in Rework and Increases
Risk.
Crashing
•Crashing : shorten the activities by Adding Resources to critical path activities to
decrease their duration, may result in team burnout. Crashing always may not bring
out a viable alternative but may Increase the Risk and / or Cost.
Schedule Compression
•Schedule Compression may also can be achieved through Reducing Scope and / or cutting Quality, however not
accepted to compromise on scope and quality unless change request is accepted

Plan Cost
Management
Estimate Costs
Determine
Budget
Control Costs
The process of defining how the project costs will be estimated, budgeted, managed,
monitored, and controlled.
The process of developing an approximation of the monetary resources needed to
complete project work.
The process of aggregating the estimated costs of individual activities or work packages
to establish an authorized cost baseline
The process of monitoring the status of the project to update the project costs and
manage changes to the cost baseline.
Project Cost Management includes the processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so that the project can be completed within
the approved budget.

106
Project Charter
Project Management
Plan;
-Schedule Mgt. Plan;
-Risk Mgt. Plan
EEF & OPA
Project Mgt Plan;
-Cost Mgt. Plan;
-Quality Mgt. Plan; -
Scope Baseline
Project Documents
-Project Schedule,
-Resource Requirement
-Risk Register
EEF & OPA
Project Management Plan;
-Cost Mgt. Plan;
-Scope Baseline;
Project Documents
-Project Schedule,
-Cost Estimates
-Risk Register
- Business Case
Agreements
EEF & OPA
Project Mgt plan;
-Cost Mgt. Plan;
-Cost Baseline
Project Documents
Work performance Data
OPA
Work Performance
Information
Cost Forecasts
Change Requests
Cost Management
Plan
Cost Estimates
Basis of Estimates
Cost Baseline
Project Funding
Requirements
Process
Input
Output
Project Planning Process Group
Monitor & Control
Group
Plan Cost
Management
Estimate Costs
Determine
Budget
Control Costs
Plan Cost
Management
Estimate Costs
Determine
Budget
Control Costs

107
Types of Costs : Direct & Indirect; Fixed & Variable
Sunk Cost, Depreciation, Opportunity Cost
Cost Estimates
Reserve Analysis – Contingency Reserve & Management Reserve
Budget Vs Cost Baseline
Earned Value Management (EVM)
Schedule Variance Vs Cost Variance Vs Variance at Completion
Schedule Performance Index (SPI) Vs Cost Performance Index (CPI)
Budget at Completion (BAC)
Estimate at Completion (EAC) Vs Estimate to Complete (ETC)
To-Complete Performance Index (TCPI)
S- Curve
Funding Requirements

108
Expert judgment
Data Analysis
Meetings
Estimates
➢ Expert Judgement
➢ Analogous estimating
➢ Parametric estimating
➢ Three Point estimating
➢ Bottom-up estimating
➢ Data Analysis
➢ Decision marking
Data Analysis
Data Representation
Cost Aggregation
Reserve Analysis
Historical information review
Funding limit Reconciliation
Financing
Earned Value Methods (EVM)

109
Direct costs are those directly linked to doing the work of the
project. For example, this could include hiring specialized
contractors, buying software licences or commissioning your new
building.
Direct Costs
These costs are not specifically linked to your project but are the
cost of doing business overall. Examples are heating, lighting, office
space rental (unless your project gets its own offices hired
specially), stocking the communal coffee machine and so on.
Indirect
Costs
Fixed costs are everything that is a one-off charge. These fees are not linked
to how long your project goes on for. So if you need to pay for one-time
advertising to secure a specialist software engineer, or you are paying for a
day of Agile consultancy to help you start the project up the best way, those
are fixed costs.
Fixed Costs
These are the opposite of fixed costs - charges that change with the
length of your project. It's more expensive to pay staff salaries over
a 12 month project than a 6 month one. Machine hire over 8 weeks is
more than for 3 weeks. You get the picture.
Variable
Costs

110
The cost estimates are simply the costs associated with the work packages or activities within the project
schedule. Depending on the work package or activity, the cost estimate may be determined using Expert
Judgment, Analogous Estimate, Parametric, Three-point Estimating techniques.
Expert Judgment
Expert Judgment is a
technique in
which judgment is
provided by Subject
matter experts (SME)
based upon a specific
set of criteria and / or
expertise that has been
acquired in a specific
knowledge area,
application area, or
product area, a
particular discipline, an
industry, etc.
Analogous
Analogous Estimating
uses a Historical Data
from Similar Past
Projects to estimate
the duration or cost of
your current project
Analogous Estimating
is used early in the
project where there are
only limited amounts of
information available –
It is Very Rough
Estimation – Top
Down Approach.
Parametric
Parametric Estimate is
determined by
identifying the per unit
cost or duration and
the number of units
required for the
project or activity
from Previous or
Historical Data and
then Re-Calculated for
the Current Project.
This is more accurate
technique than
Analogous Estimate.
Bottom-Up Estimate
Three-point
Three Point
Estimating is a
technique which
utilizes an Optimistic
Most Likely and
Pessimistic estimate
to determine the
ideal estimate value for
a project task.
Triangular Method:
Te = (To+Tm+Tp) / 3
Beta / PERT Method
(Most Accurate) :
Te = (To+4*Tm+Tp) / 3
Bottom-Up Estimate

111
ROM Estimates are used very early in the project when there is a lack of detailed
information.
The Differences between Estimates and Actual Figures may be within the Range
of -25% to + 75%
Rough Order of
Magnitude (ROM)
Estimate
Definitive Estimates occur when there are accurate estimates at the work
package or activity level are available.
The Differences between Estimates and Actual Figures may be within the Range
of -5% to + 10%
Definitive Estimate
In addition to the ROM Estimate and Definitive Estimate, there are some more estimation ranges:
➢ Preliminary estimate: within the range of -15% to +50%
➢ Budget estimate: within the range of -10% to +25%
➢ Final estimate: 100% accurate
The degree of accuracy of the estimations will become more accurate as the project proceed as many unknowns at the
beginning of the project will become known later on.

112
Cost aggregation is simply summing the costs for each work package to the control account up to the
project level. You can aggregate this information by time period to see the scheduled spending per time
period
Cost Aggregation
A technique that compares the funding available in each time period (say a month) to the planned
expenditure in that time period to ensure that the planned expenditure is within the
available funding. It is used in the Determine Budget process.
Work may have to be rescheduled in case limits of funding commitments do not suffice the
planned expenditures
Funding Limit
Reconciliation
There are several ways to secure project finance, such as investor, loans, private finance, equity, funds,
grants, etc. The repayment is managed from the cash-flow generated off the project. It is a secured form
of lending, accepting the project's rights, assets, and interests as collateral.
Project Finance
Project Funding Requirement specify when funds need to be pumped into the project. They are
derived from the cost baseline. These are usually in incremental amounts that are supplied at
different points in time as per Scheduled Requirement of Works to be Performed.
Project Funding
Requirement

Cost Baseline, Expenditures, and Funding
Requirements
Project Budget Component
113
(PMBOK® Guide) – Sixth edition,
An approved version of time-phased project budget, excluding management reserve, can
only be changed through formal change control procedures. Used as a basis for
comparison to actual results.

114
Activity Cost
Estimates
Activity Contingency
Reserves
Work Package Cost
Estimates
Work Package Cost
Estimates
Contingency
Reserves
Control Account
Costs
Aggregate of Control
Account Costs
Cost Baseline
Cost Baseline
Management
Reserves
Project Budget

115
•Contingency Reserve is used to manage Known-
UnKnowns (known= identified, Unknowns=risks) or Identified
risks that have active risk response strategies available.
•PMBOK defines Contingency Reserve as Time or Money
allocated in the schedule or cost baseline for known risks with
active response strategies.
•Contingency reserves are part of Performance Measurement
Baseline (PMB). Here it is important to understand that,
Contingency Reserves for Schedule risks are part of Schedule
Baseline, while Contingency Reserves for Cost risks are part of
Cost Baseline.
•Contingency Reserves are not Fixed Randomly. These
reserves are Properly Calculated with various techniques such
as Decision Tree analysis, Monte Carlo simulation, Expected
Monetary value (EMV).
•Project Manager has full authority over the contingency
reserves, however, he can delegate this power to the risk owner if
he wishes.
•Contingency reserves can be allocated at the Activity level.
•Management reserves are used to manage Unknown-
Unknowns (Unknown=Unidentified, Unknowns=risks)
or Unidentified Risks (Active risk response strategies are not
available for this type of risks.)
•PMBOK defines a Management reserve as an amount of project
budget or project schedule held outside the Performance
Measurement Baseline (PMB) for management control purposes,
that is reserved for unforeseen work that is with in the scope of
the project.
•Management reserves are not part of the Performance
Measurement Baseline.
•These reserves are not estimated using a technique, but
are allocated based on organizational norms.
•Management reserves are under the control of the higher
management, and project manager do not have authority on
these reserves. Use of these reserves, cannot be done at Project
managers discretion. A formal request should be raised and it
should be approved for using these reserve.
•Management Reserves are allocated at the Project level only.
Contingency Reserve Management Reserves

116
Cost Baseline
Management
Reserves
Project Budget
Unknown –
Unknown
Risks
Change
Request
To CCB
Approved By
CCB
Update
Baseline Project Budget
Remains the Same
PMBOK Page 254, 7.3.3.1
Management reserves are added to the cost baseline to produce the project budget.
As changes warranting the use of management reserves arise, the change control process is used to
obtain approval to move the applicable management reserve funds into the cost baseline.
Transfer

S - Curve
An s-curve is a mathematical graph that depicts relevant cumulative data for a project—such as cost or
man-hours—plotted against time. An S-curve is a project management tool that tracks progress over time
and allows for a quick visual to determine project status. As the project continues and the S-curve grows, the
graph will turn into a historical representation and allow for quick comparison to actual data.
CumulativeCost

AC EVBAC PV
EAC
VAC CV SV
TCPI
ETC
CPI SPI
Budget at Completion (BAC)
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)
Estimate at Completion (EAC)
Estimate to Completion (ETC)
Variance at Completion (VAC)
To Complete Performance Index (TCPI)
Scheduled Variance (SV)
Cost Variance (CV)
Schedule Performance Index (SPI)
Cost Performance Index (CPI)

119
Budget at Completion
(BAC)
The Total Budget for the Project - Baseline
Planned Value (PV) How much worth of work was Scheduled (Planned) to Date
Earned Value (EV) How much worth of Work was Completed to Date % Work Completed * BAC
Actual Cost (AC) The Amount of Money Spent so far
Scheduled Variance (SV) The difference between the cost of work performed and the
cost of work scheduled
SV = EV - PV
Cost Variance (CV) The difference of the actual cost and the expected cost. CV = EV - AC
Schedule Performance
Index (SPI)
Ratio between EV and PV, to reflect whether the project work
is ahead of / on / behind schedule in relative terms
SPI = EV / PV
If a project has a Schedule Performance Index (SPI) of 0.90, this means that:90%
of the work planned to date has been completed
Cost Performance Index
(CPI)
Ratio between EV and AC, to reflect whether the project work
is under / on / over budget in relative terms
CPI = EV / AC
Cost Performance Index (CPI) of 0.90, this means, 111% (1/CPI) of the budget
planned to date has been spent
Estimate at Completion
(EAC)
The estimated total amount of money needed to be put into
the project based on the information available as today
(Revised Estimation)
3 Assumptions
1. EAC = BAC/CPI - If You will continue in the same Rate of Spending.
2. EAC = AC + (BAC – EV) - If the remaining work is expected to be
completed (Future work) at the planned rate
3. EAC = AC + (BAC – EV)/(CPI*SPI) – If both CPI & SPI influence remaining
work.
4. EAC = AC + Bottom up Estimate to Complete
if initial cost estimate was fundamentally flawed,
Estimate to Completion
(ETC)
How much more do we need to put into the project to
complete Balance Work.
ETC = EAC - AC
Variance at Completion
(VAC)
The difference between the Estimated total cost and the
original budget
VAC = BAC – EAC
To Complete
Performance Index
(TCPI)
The efficiency needed to finish the project on budget, it is the
ratio between budgeted cost of work remaining and money
remaining
TCPI = Remaining Work / Remaining Funds
= (BAC- EV) / (BAC – AC) – As per Original Budget
= (BAC- EV) / (EAC – AC) – As per Re-Estimate
EVM Method
Summary

#PMP – Rapidex Pass @ First Attempt - An Easy Reference Guide for PMP Exam by SN Panigrahi

#PMP – Rapidex Pass @ First Attempt - An Easy Reference Guide for PMP Exam by SN Panigrahi

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