Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet

Chapter 1 – Introduction – Key Points

• “Good practice” does not mean that the knowledge described should always be applied uniformly on all projects; the project management team is responsible for
determining what is appropriate for any given project (PMI Bold)
• A project is a temporary endeavor undertaken to create a unique product, service or result
• Progressive elaboration is a characteristic of projects, meaning that it is developed in steps, and continues by increments. For example, items might be described in broad
terms at the start of the project but be defined in detailed terms by the conclusion of the project – from the preliminary project scope statement to the verified project scope
statement supported by a detailed WBS
• Projects are different than operations; projects are supposed to complete their objective and then cease to exist; operations continue indefinitely and sustain the business
• Projects are often conducted to support the organizations’ strategic plan, and to support one or more strategic element:
o Market demand
o Organizational need
o A customer request
o A technological advance
o A legal requirement
• Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements
• Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring &
controlling, and closing
• Managing a project includes 1) identifying requirements 2) establishing objectives 3) balancing scope, timing and cost 4) adapting the plan to different concerns of
stakeholders
• The five areas of expertise in the project management team include
o The project management body of knowledge (PMBOK)
o Application area knowledge, standards and regulations
o Understanding the project environment
o General management knowledge and skills
o Interpersonal skills
• Application area knowledge, standards and regulations are usually defined in terms of 1) functional departments (i.e. legal, marketing) 2) technical elements (i.e. software
development) 3) management specializations (i.e. government contracting) 4) industry groups (i.e. energy, financial services)
• Standards are guidelines or a preferred approach (i.e. ISO) and regulations are government-imposed requirements such as laws (i.e. EPA, contract law)
• The project environment includes cultural and social environment (people demographic, education, organizational accountability), the international and political
environment (time zones, different countries) and physical environment (is the team co-located?)
• General Management Knowledge and Skills including planning, executing and controlling to support the company. Supporting areas include 1) accounting 2) purchasing
3) sales 4) contracting 5) manufacturing & distribution 6) planning 7) HR 8) health and safety 9) IT
• The management of interpersonal relationships includes 1) communication 2) influence 3) leadership 4) motivation 5) negotiation 6) problem solving
• Programs vs. Project management – a program is a group of related projects that need to be managed in a coordinated fashion, such as the development of a new product
that contains multiple assemblies and includes related activities such as marketing plans
• A portfolio is a group of projects or programs that are managed together to meet company objectives, such as those to support a line of business or internal process
improvement
• Projects may be broken into subprojects, such as skilled labor (construction) on a larger project

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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
• A Project Management Office is an organization to manage and coordinate projects that are under its domain. A PMO can oversee programs or projects. PMO’s are of
varying forms depending on the organization, where they can coordinate, manage or even execute projects
• Key PMO features may include 1) coordination of resources 2) run PM Methodology 3) document repository 4) monitoring of project managers 5) coordination of overall
project standards
• PMO’s are different from project managers in that the project manager works on their specific project, while the PMO manages resources across multiple projects. The
project manager manages scope, schedule, cost and quality while the PMO manages overall risk, opportunity and interdependencies across projects. The project manager
reports on one project, while the PMO provides consolidated project reporting

Chapter 2 – Project Life Cycle and Organization – Key Points

• The project life cycle includes the phases necessary to work a project from beginning to end. The transition from one phase to another is generally recognized by some
kind of a deliverable or handoff. These phases generally define 1) work to be done that phase 2) when deliverables are generated 3) resources used in each phase 4)
control of each phase
• Costs generally are low at the start, are highest during middle phases, and drop off as the project is being completed
• Uncertainty and risk is highest at the start of the project and likelihood of project completion increases as it moves toward the concluding phases
• Stakeholders can more easily make changes at the start of the project early on; later the cost of changes grows very high as the project moves towards completion
• The completion and approval of one or more deliverables characterizes a project phase. A deliverable is a work product that can be viewed and assessed
• A project phase generally concludes with a review of the deliverable and to determine whether the deliverables are accepted or if more work needs to be done
• After each phase is completed authorization is generally needed to begin the next phase of the project (i.e. “kill point”)
• A typical project has the following phases:
o Initial – inputs include 1) ideas 2) project management team; outputs include 1) charter 2) scope statement
o Intermediate – outputs include 1) plan 2) baseline 3) progress 4) acceptance
o Final – outputs include approval, handover and the ultimate project deliverable, the product
• The reason that projects are initiated are to resolve business problems or to take advantage of opportunities
• The PRODUCT life cycle is “above” the project life cycle – it includes operations & development (which occur after the project has been completed) and include the
business plan, which starts before the project begins
• Project stakeholders are people involved in the project or impacted by the project. Stakeholders can be defined widely (i.e. the community who is impacted by pollution
and congested after the project to build a plant is completed) or narrowly (those working on the project). Negative stakeholders don’t want the project to be completed
(i.e. environmentalists). Positive stakeholders want the project to succeed
• Every project includes the following stakeholders
o Project manager – manages the project
o Customer / user – the people who use the end product generated by the project
o Performing organization – the company that the project team works for
o Project team members – doing the work
o Project management team – the managers running the project
o Sponsor – the group that provides the money and authorizes the project
o Influencers – not directly related to the project, but can impact the outcome
o Project Management Organization (PMO) 0 if it exists, may have some responsibility for completion
• Note that stakeholders may have differing objectives – finance may want it done for the lowest price, marketing may want the most features, IT may want the newest
technology, and environmentalists may want it to fail outright

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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
• There are 2 major types of project-based organizations
o Organizations that make money by completing projects for other companies, such as consultants, architects, companies that make products for the US Military,
etc…
o Organizations that chose to adopt “management by projects” and have systems and processes in place to facilitate projects
• Non project based organizations often lack tools and systems for project management, making a successful completion less likely
• Organizational cultures impact projects – entrepreneurial companies may accept high risk projects, and rigid hierarchy companies may challenge project managers who
seek authority
• There are 3 major types of organizations – 1) functional 2) matrix (with weak, balanced or strong types) and 3) projectized
• Functional organizations are traditional organizations with work “silos” like HR, accounting, production, marketing, etc… In these organizations the project manager has
little (formal) authority, finds it hard to obtain resources, reports to a functional manager, and is part time w/part time admin staff
• The projectized organization has most employees engaged in project work, and project managers have high authority and visilibity
• The “matrix” organization has elements of project and functional organization, where the project manager may report to 2 bosses (functional and project), and the weak
vs. strong shows the degree of autonomy and resources that the manager has available
• A PMO can exist in any organization type. The role may vary from advisor to having project managers report to the PMO
• The Project Management System consists of the tools, techniques, methodologies, resources, and procedures used to manage a project

Chapter 3 – Project Management Processes for a Project – Key Points

• In order for a project to be successful, the team must

o Select correct processes
o Use a defined approach to meet requirements
o Comply with requirements to meet stakeholder needs
o Balance 1) scope 2) time 3) cost 4) quality 5) resources 6) risk to complete the project
• The project manager is always responsible for determining what processes are appropriate for that project. This is known as “tailoring” the project
• Project team processes generally fall into one of the following categories:
o Project processes generally initiate, plan, execute, monitor, control and close a project
o Product-oriented processes create the product and vary by area
• The five process groups are 1) initiating 2) planning 3) executing 4) monitoring & controlling 5) closing
• Plan – Do – Check – Act is another way to accomplish this
• The Process Groups are not Project Phases!
• Initiating group for formal authorization of a project or a project phase. The basic scope, duration, deliverables and resources for the project are determined at this time.
The relationship of the project to the organization’s strategic initiatives is also identified. The project manager is also assigned during this phase. The project charter is
written, and when the charter is approved, the project becomes officially authorized. It is critical to involve stakeholders during the initiation phase
• The planning process group is used to plan and manage the project. These processes identify, define and mature the project scope, cost and schedule. Significant changes
during the life of the project will trigger the need to revisit planning process items. Key deliverables of the planning process include the project management plan, scope
planning, the WBS, activities, sequencing and scheduling, cost estimating & budgeting, and planning for risk, HR, communications and quality
• The executing process group contains the steps necessary to perform the work laid out in the project plan to meet the project’s objectives. The vast majority of the
project’s budget will be spent in this phase

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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
• The monitoring and controlling process group contains steps and processes needed to watch project execution to identify potential problems and corrective action can be
taken to keep the project on track. This group also influences the factors that could thwart change control to ensure only approved changes get made (i.e. stop scope
creep)
• The closing process group includes the processes needed to formally conclude the project and hand off the completed product to the end customer
• All of the steps below (44) are mapped into the five groups listed above

Project Integration Management – Processes & activities required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations.
Area Process Inputs
4.1 Develop Project Charter ♦ Contract
which formally authorizes a ♦ SOW (includes
project business need, scope
description, strategic
plan)
♦ EEF
♦ OPA (templates,
procedures)
4.2 Develop Preliminary ♦ Project charter
Project Scope Statement ♦ SOW
which provides a high level ♦ EEF
scope description
♦ OPA
4.3 Develop Project ♦ Preliminary project
Management Plan that scope statement
documents what is needed to ♦ Project management
define, prepare, integrate & processes
coordinate all subsidiary ♦ EEF
plans
♦ OPA
Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ Project selection ♦ Project Charter Initiating Sponsor initiates the charter; charter
methods includes 1) requirements to satisfy needs
♦ Project mgmt (“what”) 2) business needs that the project
methodology addresses (“why”) 3) justification 4)
♦ PMIS named project manager 5) milestones 6)
assumptions 7) constraints (“fixed dates”)
♦ Expert judgment
8) business case 9) summary budget
♦ Project mgmt ♦ Preliminary project Initiating Scope includes 1) objectives 2) product
methodology scope statement requirements 3) acceptance criteria 4)
♦ PMIS project deliverables 5) constraints &
♦ Expert judgment assumptions 6) project organization 7)
initial risks 8) milestones 9) initial WBS
10) high level cost estimate 11) project
configuration mgmt requirements 12)
approval requirements
♦ Project mgmt ♦ Project management Planning Plan includes 1) processes selected 2) level
methodology plan of implementation 3) tools to be used 4)
♦ PMIS includes config interactions 5) how to execute work 6)
mgmt system to how to control changes 7) how to do
identify changes to configuration mgmt 8) baselines use 9)
product and control communication needs 10) project phases
changes 11) key mgmt issues
♦ Expert judgment

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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Integration Management – Processes & activities required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations.
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
4.4 Direct & Manage Project ♦ Project management ♦ Project mgmt ♦ Deliverables Executing Actions include 1) perform activities 2)
Execution by executing the plan methodology ♦ Requested changes spend money 3) train staff 4) manage
work defined in the project ♦ Approved corrective ♦ PMIS ♦ Implemented change vendors 5) implement standards 6) create,
management plan to meet actions requests control & validate deliverables 7) manage
requirements defined in the ♦ Approved preventive risk & risk response activities 8) adapt
♦ Implemented
scope statement actions scope changes as needed 9) manage
corrective actions
communications 10) collect project data
♦ Approved change ♦ Implemented including cost & milestones 11) collect &
requests preventative actions document lessons learned and process
♦ Approved defect ♦ Implemented defect improvement actions
repair repair
♦ Validated defect report ♦ Work performance
♦ Administrative closure information (status,
procedure budget, % complete)
4.5 Monitor & Control ♦ Project management ♦ Project mgmt ♦ Recommended Monitor & Actions include 1) compare actual vs. plan
Project Work through the plan methodology corrective actions Control 2) determine corrective actions needed 3)
processes required to initiate, ♦ Work performance ♦ PMIS ♦ Recommended analyze risks & ensure corrective actions
plan, execute & close a information ♦ Earned Value preventative actions taken 4) maintain information base 5)
project to meet performance ♦ Rejected change technique ♦ Forecasts status reporting 6) forecasting
objectives defined in the requests ♦ Expert judgment ♦ Recommended defect
project management plan
repair
♦ Requested changes

5

Project Integration Management – Processes & activities required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations.
Area Process
4.6 Integrated Change
Control by reviewing all
change requests, approving
changes & controlling
changes to the deliverables
& organizational process
documents
4.7 Close Project by
finalizing all activities across
all of the project process
groups to formally close the
project
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ Project management ♦ Project mgmt ♦ Approved change Monitor & Change control is needed because projects
plan methodology requests Control seldom run according to plan. Changes
♦ Requested changes ♦ PMIS ♦ Rejected change must be managed; also includes
♦ Work performance ♦ Expert judgment requests documenting changes and only releasing
information ♦ Project management approved changes. Defect repair must be
validated and quality controlled.
♦ Recommended plan (updates)
preventative actions ♦ Project scope
Configuration management also occurs –
♦ Recommended management
identify changes, determine if changes
corrective actions (updates)
have been implemented, and verify
♦ Recommended defect ♦ Approved corrective changes after complete.
repair actions
♦ Deliverables ♦ Approved Every documented change must either be
preventative actions accepted or rejected by some authority.
♦ Approved defect
repair
♦ Validated defect
repair
♦ Deliverables
♦ Project management ♦ Project mgmt ♦ Administrative Closing Updates after project completion include
plan methodology closure procedure 1) formal acceptance documentation
♦ Contract ♦ PMIS ♦ Contract closure (written) 2) project files updated 3) project
documentation ♦ Expert judgment procedure closure documents prepared (even for
♦ EEF ♦ Final product, service projects halted before completion) 4)
historical information is used to update the
♦ OPA or result
“lessons learned” database
♦ Work performance ♦ OPA (updates)
information
♦ Deliverables
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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Scope Management – Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully; focus
on what is and what is not included in the project
Area Process Inputs
5.1 Scope Planning by ♦ EEF
creating a project scope ♦ OPA
management plan which ♦ Project charter
includes how the WBS will
♦ Preliminary project
be created & defined
scope statement
♦ Project management
plan
5.2 Scope Definition by ♦ OPA
developing a detailed ♦ Project charter
project scope statement ♦ Preliminary project
scope statement
♦ Project scope
management plan
♦ Approved change
requests
5.3 Create Work Breakdown ♦ OPA
Structure (WBS) by ♦ Project scope
subdividing the deliverables statement
& work into smaller, more ♦ Project scope
manageable components
management plan
♦ Approved change
requests
5.4 Scope Verification ♦ Project scope
through formal acceptance statement
of the completed project ♦ WBS dictionary
deliverables ♦ Project scope
management plan
♦ Deliverables
Tools and Techniques
♦ Expert judgment
♦ Templates, forms,
standards
♦ Product analysis
♦ Alternatives
identification
♦ Expert judgment
♦ Stakeholder analysis
♦ WBS templates
♦ Decomposition
♦ Inspection
7
Outputs / Deliverables
♦ Project scope
management plan
♦ Project scope
statement
♦ Requested changes
♦ Project scope
management plan
(updates)
♦ Project scope
statement (updates)
♦ WBS
♦ WBS dictionary
♦ Scope baseline
♦ Project scope
management plan
(updates)
♦ Requested changes
♦ Accepted Monitor & Scope verification is primarily concerned
deliverables
♦ Requested changes
♦ Recommended
corrective actions
Process Other Notes
Group
Planning Project scope management plan includes
1) process to prepare detailed scope based
on preliminary scope 2) process to create
WBS from scope 3) process to specify
verification of deliverables 4) process to
control scope changes
Planning Preparation of a detailed scope statement is
critical to the project success. Includes 1)
objectives 2) scope description 3)
requirements 4) boundaries (excluded
items) 5) deliverables 6) acceptance
criteria 7) constraints 8) assumptions 9)
organization 10) risks 11) milestones 12)
funding 13) cost estimate 14)
configuration management requirements
15) project specifications 16) approval
requirements
Planning Decomposition divides work into smaller
elements by 1) identify deliverables 2)
structure and organize WBS 3)
decomposing upper WBS into lower level
detailed components 4) assign ID codes to
WBS components 5) verifying that degree
of decomposition is sufficient.
Each component must be assigned, and
defined in terms of how the project will
actually be executed and controlled.
Control with acceptance of the scope by
stakeholders
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Scope Management – Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully; focus
on what is and what is not included in the project
5.5 Scope Control by ♦ Project scope ♦ Change control system ♦ Project scope Monitor & Uncontrolled changes called “scope
controlling changes to the statement ♦ Variance analysis statement (updates) Control creep”. Change is inevitable, thus this
project scope ♦ WBS ♦ Replanning ♦ WBS (updates) process is needed
♦ WBS dictionary ♦ Configuration ♦ WBS dictionary
♦ Project scope management system (updates)
management plan ♦ Scope baseline
♦ Performance reports (updates)
♦ Approved change ♦ Requested changes
requests ♦ Recommended
♦ Work performance corrective action
information ♦ OPA (updates)
♦ Project Management
Plan (updates)

8

Project Time Management - Processes required to ensure timely completion of the project
Area Process
6.1 Activity Definition by
identifying the specific
activities that must be
performed to produce the
various project deliverables
6.2 Activity Sequencing by
identifying and documenting
dependencies among
schedule activities
6.3 Activity Resource
Estimating through
estimating the type &
quantity of resources needed
to complete each activity
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques
♦ EEF ♦ Decomposition
♦ OPA ♦ Templates
♦ Project scope ♦ Rolling Wave
statement planning
♦ WBS ♦ Expert judgment
♦ WBS dictionary ♦ Planning component
♦ Project management (control account,
plan planning package)
♦ Project scope ♦ Precedence
statement diagramming method
♦ Activity list (PDM)
♦ Activity attributes ♦ Arrow diagramming
method (ADM)
♦ Milestone list
♦ Schedule network
♦ Approved change
templates
requests
♦ Dependency
determination
♦ Applying leads and
lags
♦ EEF ♦ Expert judgment
♦ OPA ♦ Alternatives analysis
♦ Activity list ♦ Published estimating
♦ Activity attributes data
♦ Resource availability ♦ Project management
♦ Project management software
plan ♦ Bottom-up estimating
9
Outputs / Deliverables Process Other Notes
Group
♦ Activity list Planning The activity list does not include any
♦ Activity attributes schedule activities that are not required as
♦ Milestone list part of the project scope.
♦ Requested changes
♦ Project schedule Planning PDM (a.k.a Activity on Node) uses 4
network diagrams types of dependencies (F-S, F-F, S-S, S-F).
♦ Activity list (updates)
♦ Activity attributes ADM (a.k.a. Activity on Arrow) uses only
F-S dependencies. Allows dummy
(updates)
activities to show logical relationships.
♦ Requested changes
(Usually shown as a dashed line.)
3 types of dependencies - mandatory,
discretionary (best practices) and external.
♦ Activity resource Planning
requirements
♦ Activity attributes
(updates)
♦ Resource breakdown
structure
♦ Resource calendars
(updates)
♦ Requested changes

Project Time Management - Processes required to ensure timely completion of the project
Area Process
6.4 Activity Duration
Estimating by estimating the
number of work periods
which will be needed to
complete individual
activities
6.5 Schedule Development
by analyzing activity
sequences, activity
durations, and resource
requirements to create the
project schedule
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs
♦ EEF
♦ OPA
♦ Project scope
statement
♦ Activity list
♦ Activity attributes
♦ Activity resource
requirements
♦ Resource calendars
♦ Project management
plan (risk register,
activity cost estimates)
♦ OPA
♦ Project scope
statement
♦ Activity list
♦ Activity attributes
♦ Project schedule
network diagrams
♦ Activity resource
requirements
♦ Resource calendars
♦ Activity duration
estimates
♦ Project management
plan (risk register)
Tools and Techniques
♦ Expert judgment
♦ Analogous estimating
(use actual duration of
similar activity from
past)
♦ Parametric estimating
(hours per meter)
♦ Three-point estimates
(average of most
likely, optimistic &
pessimistic)
♦ Reserve analysis
♦ Schedule network
analysis
♦ Critical path method
♦ Schedule compression
♦ What-if scenario
analysis
♦ Resource leveling
♦ Critical chain method
♦ Project management
software
♦ Applying calendars
♦ Adjusting leads and
lags
♦ Schedule model
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Outputs / Deliverables Process Other Notes
Group
♦ Activity duration Planning
estimates
♦ Activity attributes
(updates)
♦ Project schedule Planning Critical Path is the longest path through a
♦ Schedule model data network diagram and shows earliest
♦ Schedule baseline completion of a project.
♦ Resource
CPM uses the most likely estimate to
requirements
calculate the float to determine project
(updates)
duration and scheduling flexibility.
♦ Activity attributes
(updates) Critical chain modifies schedule to account
♦ Project calendar for limited resources. Define critical path,
(updates) then apply resources – often path changes.
♦ Requested changes
♦ Project management Schedule can be showed as a network
plan (updates, diagram, bar chart (gantt), or milestone
including schedule chart.
management plan)

Project Time Management - Processes required to ensure timely completion of the project
Area Process
6.6 Schedule Control –
controlling changes to the
project schedule including
1) determining current status
of project schedule 2)
influencing factors that
cause changes 3)
determining that the
schedule has changed 4)
managing changes as they
occur
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques
♦ Schedule management ♦ Progress reporting
plan ♦ Schedule change
♦ Schedule baseline control system
♦ Performance reports ♦ Performance
♦ Approved change measurement
requests ♦ Project management
software
♦ Variance analysis
♦ Schedule comparison
bar charts
11
Outputs / Deliverables
♦ Schedule model data
(updates)
♦ Schedule baseline
(updates)
♦ Performance
measurements
♦ Requested changes
♦ Recommended
corrective actions
♦ OPA
♦ Activity list (updates)
♦ Activity attributes
(updates)
♦ Project management
plan (updates)
Process Other Notes
Group
Monitor & Key measures include Schedule Variance
Control (SV) and Schedule Performance Index
(SPI).
Progress reporting includes actual start and
finished dates, and remaining durations for
unfinished activities..
Schedule revisions are a special category
of schedule updates – generally
incorporated in response to approved
change requests. The original schedule
baseline and model are saved to prevent
loss of data.
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet

Project Cost Management – processes in planning and controlling costs so that the project can be completed within budget
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
7.1 Cost Estimating through ♦ EEF ♦ Analogous estimating ♦ Activity cost Planning Top down / analogous estimating is
approximating the costs of ♦ OPA ♦ Determine resource estimates generally less costly and less accurate than
the resources needed to ♦ Project scope cost rates ♦ Activity cost estimate other techniques.
complete project activities statement ♦ Bottom-up estimating supporting detail Bottom-up estimating accuracy is driven
(description, basis of by size of work items being estimated.
♦ WBS ♦ Parametric estimating
estimate, Reserve analysis includes “known
♦ WBS dictionary ♦ Project management unknowns”.
assumptions,
♦ Project management software Project in initiation phase as rough order
constraints, ROM)
plan (schedule & ♦ Vendor bid analysis of Magnitude (ROM) of –50/+100%, later
♦ Requested changes
staffing mgmt plan, ♦ Reserve analysis could go to –10%/+15%
risk register) ♦ Cost management
♦ Cost of quality
plan (updates)
7.2 Cost Budgeting by ♦ Project scope ♦ Cost aggregation ♦ Cost baseline Planning Cost baseline is a time-phased budget to
aggregating estimated costs statement ♦ Reserve analysis ♦ Project funding measure and monitor cost performance.
of individual activities or ♦ WBS ♦ Parametric estimating requirements
work packages to establish a ♦ WBS dictionary ♦ Cost management Reserve are budgeted for unplanned, but
♦ Funding limit
cost baseline potentially required, changes to project
♦ Activity cost estimates reconciliation plan (updates)
scope and cost – not part of the project
♦ Activity cost estimate ♦ Requested changes
cost baseline or earned value.
supporting detail
♦ Project schedule Project funding requirements are derived
♦ Resource calendars from the cost baseline.
♦ Contract
♦ Cost management plan

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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Cost Management – processes in planning and controlling costs so that the project can be completed within budget
Area Process Inputs
7.3 Cost Control by ♦ Cost baseline
influencing factors that ♦ Project funding
create cost variances & requirements
controlling changes to the ♦ Performance reports
project budget
♦ Approved change
requests
♦ Project management
plan
Tools and Techniques
♦ Cost change control
system
♦ Performance
measurement analysis
♦ Forecasting
♦ Project management
reviews
♦ Project management
software
♦ Variance management ♦ Recommended
13
Outputs / Deliverables Process Other Notes
Group
♦ Cost estimate Monitor & ♦ PV - Planned Value (also Budget at
(updates) Control Completion BAC)
♦ Cost baseline ♦ EV - Earned Value
(updates) ♦ AC - Actual Cost
♦ Performance
♦ ETC – Estimate to Complete
measurements ♦ EAC – Estimate at Completion
♦ Forecasted Formulas to remember:
completion ♦ Schedule Variance = EV-PV
♦ Requested changes ♦ Cost Variance = EV-AC
♦ Schedule Performance Index = EV/PV
corrective actions ♦ Cost Performance Index = EV/AC
♦ Organizational (<1.0 overrun, 1.0 on budget, > 1.0
process assets underrun)
(updates) ♦ SPI, CPI used to forecast completion
♦ Project management date and project cost projection
plan (updates)

Project Quality Management – processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system
Area Process
8.1 Quality Planning by
identifying which quality
standards are relevant to the ♦ Project scope
project and determining how
to satisfy them
8.2 Perform Quality
Assurance by employing
activities to ensure the
project employs all
processes needed to meet
requirements
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ EEF ♦ Cost-benefit analysis ♦ Quality management Planning Quality is “the degree to which a set of
♦ OPA ♦ Benchmarking plan inherent characteristics fulfill
♦ Design of experiments ♦ Quality metrics requirements”
♦ Quality checklists
statement ♦ Cost of quality (COQ) Customer Satisfaction: Conformance to
♦ Project management ♦ Additional quality ♦ Process improvement requirements, specifications, and fitness
plan planning tools plan (steps to analyze for use.
processes to identify
Quality is planned in, not inspected in.
waste & non-value
added items Cost of quality is total cost of all efforts
♦ Quality baseline related to quality. Project may not reap
♦ Project management benefits since they are later in product
plan (updates) lifecycle (i.e. lower returns)
♦ Quality management ♦ Quality planning tools ♦ Requested changes Executing Deming: Plan, Do, Check, Act
plan and techniques ♦ Recommended Kaizen (Continuous Improvement): Small
♦ Quality metrics ♦ Quality audits corrective actions improvements in products or processes to
♦ Process improvement ♦ Process analysis ♦ Process analysis reduce costs and ensure consistency of
plan ♦ Quality control tools ♦ Quality control tools products or services.
♦ Work performance and techniques and techniques
ISO 9000: An international standard that
information
describes a recommended quality system.
♦ Approved change
Does not include quality procedures or
requests forms.
♦ Quality control
measurements Heuristic is a rule of thumb (e.g. Rule of
♦ Implemented change Seven)
requests
♦ Implemented
corrective actions
♦ Implemented defect
repair
♦ Implemented
preventative actions
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 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Quality Management – processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
8.3 Perform Quality Control ♦ Quality management ♦ Cause and effect ♦ Quality control Monitor & ♦ +/- 1 sigma = 68.26%
by monitoring specific plan diagram measurements Control ♦ +/- 2 sigma = 95.46%
project results to determine ♦ Quality metrics ♦ Control charts ♦ Validated defect ♦ +/- 3 sigma = 99.73%
if they comply with relevant ♦ Quality checklists ♦ Flowcharting repair ♦ +/- 6 sigma = 99.99 %
quality standards and ♦ Quality baseline
♦ OPA ♦ Histogram
identifying ways to (updates) Variable: Characteristic to be measured
eliminate causes of ♦ Work performance ♦ Pareto chart
♦ Recommended (e.g. size, shape)
unsatisfactory performance information ♦ Run chart Attribute: The measurement (e.g. inches,
♦ Approved change ♦ Scatter diagram corrective actions
pounds)
requests ♦ Statistical sampling ♦ Recommended
Statistical Independence: The probability
♦ Deliverables preventative actions
♦ Inspection of 1 event occurring does not affect the
♦ Requested changes probability of another event occurring.
♦ Defect repair review
♦ Recommended defect
repair
♦ OPA
♦ Validated
deliverables
♦ Project management
plan (updates)

15

Project Human Resource Management – process the organize & manage the project team
Area Process
9.1 Human Resources
Planning by identifying,
documenting project roles,
responsibilities & reporting
relationships as well as
creating the staffing
management plan
9.2 Acquire Project Team by
getting the human resources
needed to complete the
project
9.3 Develop Project Team
by improving competencies
& interactions to enhance
project performance
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ EEF (organizational, ♦ Organization charts ♦ Roles and Planning
Staff management plan includes 1) staff
technical, and position responsibilities (role, acquisition 2) timetable 3) release criteria
interpersonal, descriptions authority, 4) training needs 5) recognition & rewards
logistical & political) (hierarchical charts, responsibility, 6) compliance 7) safety
♦ OPA (templates, matrix charts, text competencies
checklists) formats) – required)
♦ Project management responsibility ♦ Project organization
plan (activity resource assignment matrix charts
requirements) (RAM) ♦ Staffing management
♦ Networking plan
♦ Organizational theory
♦ EEF ♦ Pre-assignment ♦ Project staff Executing Conflict Resolution Techniques:
♦ OPA ♦ Negotiation assignments ♦ Problem Solving (Address interests)
♦ Roles and ♦ Acquisition ♦ Resource availability ♦ Compromising (Middle ground)
♦ Staffing management ♦ Forcing (Impose judgement)
responsibilities ♦ Virtual teams
♦ Project organization plan (updates) ♦ Withdrawal (Avoidance)
charts ♦ Smoothing (Peace keeping)
♦ Staffing management
PMI recommends Problem Solving as best
plan
choice followed by compromising.
Forcing is last.
♦ Project staff ♦ General management ♦ Team performance Executing Maslow’s Hierarchy of Needs (in order):
assignments skills assessment includes ♦ Physiological (Lowest)
♦ Staffing management ♦ Training 1) improvements in ♦ Safety
plan ♦ Team-building skills for individuals ♦ Social
♦ Resource availability activities 2) improvements in ♦ Esteem
♦ Ground rules competencies for the
♦ Self-Actualization (Highest)
group as a whole 3)
♦ Co-location
reduce staff turnover MacGregor’s Theory X – People must be
♦ Recognition and rate constantly watched. They are incapable,
rewards avoid responsibility, and avoid work.
MacGregor’s Theory Y – People are
willing to work without supervision and
want to achieve.
Ouchi's Theory Z - People work
effectively when secure, consulted and
held collectively responsible.
16

Project Human Resource Management – process the organize & manage the project team
Area Process
9.4 Manage Project Team by
tracking member
performance, providing
feedback, resolving issues
and coordinating changes to
enhance project
performance
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ OPA ♦ Observation and ♦ Requested changes Monitor & Lessons learned documentation can
♦ Project staff conversation ♦ Recommended Control include 1) org charts as templates 2) rules
assignments ♦ Project performance corrective actions or techniques that were particularly
♦ Roles and appraisals ♦ Recommended successful 3) virtual teams, location items
responsibilities ♦ Conflict management preventative actions that were successful 4) special skills
discovered during the project
♦ Project organizational ♦ Issue log ♦ OPA (updates)
charts ♦ Project management
♦ Staffing management plan (updates)
plan
♦ Team performance
assessment
♦ Work performance
information
♦ Performance reports
17
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet

Project Communications Management – Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project
information; provide the critical links among people & information that are needed for successful communications
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
10.1 Communication ♦ EEF ♦ Communications ♦ Communications Planning Communication Methods:
Planning by determining the ♦ OPA requirements analysis management plan ♦ Formal Written – Project
information and ♦ Project scope ♦ Communications (provides 1) Plans/Charters
communications needs of statement technology stakeholder ♦ Formal Verbal – Presentations,
the stakeholders requirements 2) info Speeches
♦ Project management
plan (constraints, to be communicated ♦ Informal Written – Memos, e-mail
assumptions) 3) responsibility 4) ♦ Informal Verbal – Meetings,
methods & frequency Conversations
5) escalation 6)
updating ) Comm. Channels: N(N-1)/2 where N is
equal to the number of people.
♦
10.2 Information ♦ Communications ♦ Communications skills ♦ OPA Executing
PM should spend 70 - 90% of their time
Distribution through making management plan ♦ Information gathering ♦ Requested changes communicating.
needed information and retrieval systems
available to project ♦ Information Basic elements of communication:
stakeholders in a timely distribution methods ♦ Sender (or encoder)
manner ♦ Message.
♦ Lessons learned
process ♦ Receiver (or decoder)
10.3 Performance Reporting ♦ Work performance ♦ Information ♦ Performance reports Monitor & Performance Reporting Tools:
by collecting and information presentation tools ♦ Forecasts Control ♦ Status Report
disseminating performance ♦ Performance ♦ Performance ♦ Requested changes ♦ Progress Report
information including status measurements information gathering ♦ Trend Report
♦ Recommended
reporting, progress ♦ Forecasted completion and compilation corrective actions ♦ Forecasting Report
measurement & forecasting ♦ Status review
♦ Quality control ♦ OPA ♦ Variance Report
measurements meetings ♦ Earned Value**
♦ Project management ♦ Time reporting
plan (performance systems
measurement baseline) ♦ Cost reporting systems
♦ Approved change
requests
♦ Deliverables

18
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Communications Management – Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project
information; provide the critical links among people & information that are needed for successful communications
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
10.4 Manage Stakeholders ♦ Communications ♦ Communications ♦ Resolved issues Monitor &
by managing management plan methods ♦ Approved change Control
communications to satisfy ♦ OPA ♦ Issue logs requests
he requirements of, and ♦ Approved corrective
resolve issues with, project actions
stakeholders
♦ OPA
♦ Project management
plans (updates)

19
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Risk Management – processes concerned with planning, identifying, analyzing and responding to project risk; objective is to increase the probability & impact of
positive events and to decrease the probability and impact of adverse events
Area Process Inputs
11.1 Risk Management ♦ EEF
Planning by deciding how to ♦ OPA
approach, plan & execute ♦ Project scope
the risk management statement
activities for a project
♦ Project management
plan
11.2 Risk Identification by ♦ EEF
determining which risks ♦ OPA
might affect the project and ♦ Project scope
documenting their statement
characteristics
♦ Risk management plan
♦ Project management
plan
11.3 Qualitative Risk ♦ OPA
Analysis by prioritizing ♦ Project scope
risks for further analysis or statement
action by assessing & ♦ Risk management plan
combining their probability
♦ Risk register
of occurrence & impact
Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ Planning Meetings ♦ Risk Management Planning Risk management plan includes
and analysis Plan methodology, roles, responsibilities,
budget, timing, scoring / interpretation,
thresholds, reporting, tracking, etc.
Risk Categories:
♦ Technical
♦ Project management
♦ Organizational
♦ External
♦ Documentation ♦ Risk register Planning Risk Components:
reviews (includes list of risks, ♦ Risk event
♦ Information gathering potential responses, ♦ Risk event probability
techniques root causes, and ♦ Risk event consequence
♦ Checklist analysis updated risk
♦ Risk event status
♦ Assumptions analysis categories)
♦ Diagramming
techniques
♦ Risk probability and ♦ Risk register Planning Use of low precision data may lead to
impact assessment (updates) faulty analysis.
♦ Probability and impact Risks calculated as high or moderate
matrix would be prime candidates for further
♦ Risk data quality
analysis.
assessment
♦ Risk categorization
♦ Risk urgency
assessment
20

Project Risk Management – processes concerned with planning, identifying, analyzing and responding to project risk; objective is to increase the probability & impact of
positive events and to decrease the probability and impact of adverse events
Area Process
11.4 Quantitative Risk
Analysis through
numerically analyzing the
effect on overall project
objectives of identified risks
11.5 Risk Response
Planning by developing
options & actions to
enhance opportunities &
reduce threats to project
objectives
11.6 Risk Monitoring and
Control by keeping track of
identified risks, monitoring
residual risks and
identifying new risks,
executing risk response
plans and evaluating their
effectiveness throughout the ♦ Performance reports
project life cycle
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ OPA ♦ Data gathering and ♦ Risk register Planning Quantitative analysis follows qualitative
♦ Project scope representation (updates) including analysis.
statement techniques 1) probabilistic Objectives include:
♦ Risk management plan ♦ Quantitative risk analysis of the
♦ Determine probability of reaching
♦ Risk register analysis and modeling project for schedule
project objectives
techniques (sensitivity & cost outcomes 2)
♦ Project management ♦ Determine size of contingency needed
analysis, expected prioritized list of
plan (schedule ♦ Identify risks requiring most attention
monetary value quantified risks 3)
management plan, cost based on their priority
analysis, and decision trends in quantitative
management plan) ♦ Identify realistic cost and scope
tree analysis, risk results)
modeling & targets
simulation)
♦ Risk management plan ♦ Strategies for negative ♦ Risk register Planning Contingency Plan is a management plan
♦ Risk register risk or threats (avoid, (updates) that identifies alternative strategies to be
transfer or mitigate) ♦ Project management used to ensure project success if specified
♦ Strategies for positive plan (updates) risk events occur.
risks or opportunities ♦ Risk-related Fallback plan is a management plan that
(exploit, share or contractual identifies alternative project approaches if
enhance) agreements the risk has high impact, or if the strategy
♦ Strategy for both risks might not be fully effective.
and opportunities
(acceptance) Contingency Reserve accounts for known
♦ Contingency response risks that have been accepted.
strategy Secondary risks arise from implementing
the contingency plan.
♦ Risk management plan ♦ Risk reassessment ♦ Risk register Monitor & Purpose of Risk Monitoring is to
♦ Risk register ♦ Risk audits (updates) Control determine if:
♦ Approved change ♦ Variance and trend ♦ Requested changes ♦ Risk responses implemented as
requests analysis ♦ Recommended planned
♦ Risk response actions were as
♦ Work performance ♦ Technical performance corrective actions
effective as planned
information measurement ♦ Recommended
♦ Project assumptions are still valid
♦ Reserve analysis preventative actions
♦ Status meetings ♦ OPA ♦ Risk trigger has occurred
♦ Project management ♦ Risk exposure has changed
plan (updates)
21

Project Procurement Management – processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the
project team by the contract
Area Process
12.1 Plan Purchases and
Acquisitions by determining ♦ OPA
what to purchase or acquire
and when to do it
12.2 Plan Contracting by
documenting products,
services & results
requirements and identifying
potential sellers
12.3 Request Seller
Responses by obtaining
information, quotations, bids
offers or proposals
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ EEF ♦ Make or buy analysis ♦ Procurement Planning Contract Type:
♦ Expert judgment management plan ♦ FP – Fixed Price or Lump sum.
♦ Project scope ♦ Contract types ♦ Contract statement of (Simplest form is PO) – risk on seller
statement work – needs to be ♦ CR – Cost Reimbursable (cost plus
♦ WBS clear, complete and fee, cost plus fixed fee or cost plus
♦ WBS dictionary concise incentive fee) – place risk on buyer
♦ Project management ♦ Make or buy ♦ T&M – Time and Materials (aspects
plan (risk register, decisions of FP and CR contracts) - Moderate
risk-related ♦ Requested changes cost risk to buyer.)
contractual
agreements, resource
requirements, project
schedule, activity cost
estimates, cost
baseline)
♦ Procurement ♦ Standard forms ♦ Procurement Planning
Procurement management plan can include
management plan ♦ Expert judgment documents 1) type of contract 2) independent
♦ Contract statement of ♦ Evaluation criteria estimates 3) standardized procurement
work (can include cost, documents 4) constraints & assumptions 5)
♦ Make or buy decisions technical capability, lead times for contracting coordination 6)
♦ Project management financial capacity, make-or-buy documentation 7) scheduled
plan (risk register, business type, dates in contracts 8) performance metrics
risk-related references, etc…) for managing contracts
contractual ♦ Contract statement of
agreements, resource work (updates)
requirements, project
schedule, activity cost
estimates, cost
baseline)
♦ OPA ♦ Bidder conferences ♦ Qualified sellers list Executing All bidders conference Q&A should be put
♦ Procurement ♦ Advertising ♦ Procurement in writing and issued to all potential sellers
management plan ♦ Develop qualified document package as an addendum to the procurement docs.
♦ Procurement sellers list ♦ Proposals
documents
22

Project Procurement Management – processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the
project team by the contract
Area Process
12.4 Select Sellers by
reviewing offers, choosing
among potential sellers, and
negotiating a written
contract
12.5 Contract
Administration by managing ♦ Contract management
contract & relationship
between the buyer & seller;
documenting performance to
establish corrective actions,
and manage contract change ♦ Approved change
Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
♦ OPA ♦ Weighting system ♦ Selected sellers Executing Objectives of Negotiation:
♦ Procurement ♦ Independent estimates ♦ Contract ♦ Obtain a fair and reasonable price
management plan ♦ Screening system ♦ Contract ♦ Develop a good relationship with the
♦ Evaluation criteria seller (should be a win-win situation)
♦ Contract negotiation management plan
♦ Procurement ♦ Seller rating systems ♦ Resource availability Items to negotiate include:
document package ♦ Expert judgment ♦ Procurement Responsibilities, authority, applicable law,
♦ Proposals ♦ Proposal evaluation management plan technical and business mgmt approaches,
♦ Qualified sellers list techniques (updates) contract financing, and price.
♦ Project management ♦ Requested changes
plan (risk register,
risk-related
contractual
agreements, resource
requirements, project
schedule, activity cost
estimates, cost
baseline)
♦ Contract ♦ Contract change ♦ Contract Monitor & Contracts are often managed by a contract
control system documentation Control department who have authority and
plan ♦ Buyer-conducted ♦ Requested changes responsibility for contracts. The PM must
♦ Selected sellers performance review ♦ Recommended work closely with this group to ensure that
♦ Inspections and audits project objectives are met.
♦ Performance reports corrective actions
♦ Performance reporting ♦ OPA
requests ♦ Payment system ♦ Project management
♦ Work performance ♦ Claims administration plan (updates)
information ♦ Records management
system
♦ Information
technology
23
 Project Management Institute (PMBOK 2004 3rd Edition) – PMP Preparation Worksheet
Project Procurement Management – processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the
project team by the contract
Area Process Inputs Tools and Techniques Outputs / Deliverables Process Other Notes
Group
12.6 Contract Closure ♦ Procurement ♦ Procurement audits ♦ Closed contracts Closing Centralized Contracting – A separate
through completing and management plan ♦ Records management ♦ OPA (update contract contracting office handles contracts for all
settling each contract, ♦ Contract management system file, deliverable projects.
including resolution of any plan acceptance, and Decentralized Contracting – A contract
open items ♦ Contract lessons learned administrator is assigned to each project.
documentation documentation)
♦ Contract closure
procedure

24