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PMP Study Guide

Chapter 2: Creating the Project Charter

Chapter 2 Creating the Project Charter


Project Management Knowledge Areas How Projects Come About Kicking Off the Project Charter Using Tools and Techniques for Charter Development Formalizing and Publishing the Project Charter

Project Integration Management


The Project Management process groups are linked by the objectives they produce. The output of one process generally becomes input to another process or is a deliverable of the project. When a project is divided into phases, the Process Groups are normally repeated within each phase throughout the projects life to effectively drive the project to completion .

The Triple Constraint


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t/R es

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Scope/Quality
A framework for evaluating competing demands A key focus of project management is keeping the three competing aspects aligned A change to any of these components will likely have an impact on the other aspects

Program Management Plan


Program Management Plan (PMP Example) Defines how the project is executed, monitored and controlled, and closed. Program Management Plan Contents Program Summary Scope Management Plan Program Organization Schedule Management Plan Cost Management Plan Quality Management Plan Communications Management Plan Risk Management Plan Procurement Plan

The Project Management Knowledge Areas


Integration Scope Time Cost Quality Human Resources Communications Risk Procurement

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management

Project Procurement Management

How Projects Come About


Needs and demands
Market demand Strategic opportunity/Business need Customer request Technological advance Legal requirement Ecological impacts Social need

Feasibility studies

Chapter 2 Creating the Project Charter


How Projects Come About Kicking Off the Project Charter Using Tools and Techniques for Charter Development Formalizing and Publishing the Project Charter

Using Project Selection Methods


Project Selection Methods include mathematical models and benefit measurement methods Benefit measurement methods are analysis and comparative approaches including:
Cost-benefit analysis Scoring models Payback Period Discounted Cash Flows Net Present Value Internal Rate of Return

Chapter 2 Creating the Project Charter


How Projects Come About Kicking Off the Project Charter Using Tools and Techniques for Charter Development Formalizing and Publishing the Project Charter Developing a Preliminary Project Scope Statement

Kicking Off the Project Charter


Project charter inputs
Project statement of work Business case Contract Enterprise environmental factors Organizational process assets

Enterprise Environmental Factors


Organizational culture, structure, and processes Governmental or industry standards Infrastructure Human resources Personnel administration Organizations work authorization system Marketplace conditions Stakeholder risk tolerances Political climate Communication channels Commercial databases

Project Statement of Work Contains the following:


Business need Product scope description Strategic plan

Chapter 2 Creating the Project Charter


Project Management Knowledge Areas How Projects Come About Kicking Off the Project Charter Using Tools and Techniques for Charter Development Formalizing and Publishing the Project Charter

Using Tools and Techniques for Charter Development Expert judgment


Individuals or groups of people, who have training, specialized knowledge, or skills Helpful in assessing the inputs, environmental factors, organizational process assets, and analyzing historical information

Chapter 2 Creating the Project Charter


Project Management Knowledge Areas How Projects Come About Kicking Off the Project Charter Using Tools and Techniques for Charter Development Formalizing and Publishing the Project Charter

Formalizing and Publishing the Project Charter Key stakeholders


Project manager Project sponsor

Pulling the project charter together Project charter sign-off

Pulling the Project Charter Together


Key Elements:
Purpose or justification Business need High level list of requirements High level description of project and product High level list of risks Summary milestone schedule Summary budget Criteria for project approval Name of project manager Name of the project sponsor

Project Charter Sign-Off Project charter sign-off is buy-in for the project Project sponsor, senior management, and key stakeholders should sign charter

Chapter 2 Summary
Project management Knowledge Areas Need and demands that bring about projects Project selection methods Project charterpurpose and content Importance of project charter sign off