1. Introduction - PMBOK Guide 6th Edition

Project management is accomplished through the appropriate application and technique of logically grouped project management processes. While there are different ways of grouping processes, the PMBOK Guide groups the processes into five categories called ___.

Process Groups

A ___ is a logical grouping of project management processes to achieve specific project objectives. Process Groups are independent of project phases.

Project Management Process Group

Project objective

Project ___ is defined as an outcome toward which work is to be directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed.

Project deliverable

Project ___ is defined as any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. They may be tangible or intangible.

___ is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. ___ is accomplished through the appropriate application and integration of the project management processes identified for the project. ___ enables organizations to execute projects effectively and efficiently.

Project management

___ are undertaken to fulfill objectives by producing deliverables.

Projects

A business case may include but is not limited to documenting the following: Evaluation:

Statement describing the plan for measuring benefits the project will deliver.

End of a project

The ___ is reached when one or more of the following is true: • The project's objectives have been achieved; • The objectives will not or cannot be met; • Funding is exhausted or no longer available for allocation to the project; • The need for the project no longer exists (e.g., the customer no longer wants the project completed, a change in strategy or priority ends the project, the organizational management provides direction to end the project); • The human or physical resources are no longer available; or • The project is terminated for legal cause or convenience.

Project benefits management plan

The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project.

The ___ provides the bases to measure success and progress throughout the project life cycle by comparing the results with the objectives and the identified success criteria.

business case document

Projects enable ___ creation.

business value

Project Stakeholder Management

Includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

Project Schedule Management

Includes the processes required to manage the timely completion of the project.

Project Resource Management

Includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project.

Project Communications Management

Includes: the processes required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and ultimate disposition of project information.

In addition to Process Groups, processes are also categorized by ___. A ___ is an identified area of project management defined by its knowledge requirements and described in terms of its comp.anent processes, practices, inputs, outputs, tools, and techniques.

Knowledge Areas; Knowledge Area

A business case may include but is not limited to documenting the following: Recommendation:

• A statement of the recommended option to pursue in the project; • Items to include in the statement may include but are no limited to: * Analysis results for the potential option; Constraints, assumptions, risks, and dependencies for the potential options; and * Success measures. • An implementation approach that may include but is not limited to: * Milestones; * Dependencies, and * Roles and responsibilities.

At phase gate, the projects performance and progress are compared to project and business documents including but not limited to:

• Project business case • Project charter • Project management plan • Benefits management plan A decision (e.g. go/no-go decision) is made as a result of this comparison to: • Continue to the next phase, • Continue to the next phase with modification, • End the project, • Remain in the phase, or • Repeat the phase or elements of it.

Effective and efficient project management should be considered a strategic competency within organizations. It enables organizations to:

• Tie project results to business goals; • Compete more effectively in their markets; • Sustain the organization; and • Respond to the impact of business environment changes on projects by appropriately adjusting project management plans.

Projects drive ___ in organizations.

change

A ___ is a combination of a predictive and an adaptive life cycle. Those elements of the project that are well known or have fixed requirements follow a predictive development life cycle, and those elements that are still evolving follow an adaptive development life cycle.

hybrid life cycle

Program management is defined as the application of knowledge, skills, and principles to a program to achieve the program objectives and to obtain benefits and control not available by managing ___ individually.

program components A program component refers to projects and other programs within a program. Project management focuses on interdependencies within a project to determine the optimal approach for managing the project.

Project managers interact with portfolio and program managers when a project is within a ___. For example, multiple projects may be needed to accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into a program.

program or portfolio

A ___ is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. ___ are not large projects.

program; Programs

The ___ is the document that describes how and when the benefits of the project will be delivered, and describes the mechanisms that should be in place to measure those benefits.

project benefits management plan

A ___ is the series of phases that a project passes through from its start to its completion. It provides the basic framework for managing the project. This basic framework applies regardless of the specific project work involved. The phases may be sequential, iterative, or overlapping. All projects can be mapped to a generic life cycle.

project life cycle

The project life cycle is managed by executing a series of project management activities known as ____.

project management processes

Every project management process produces one or more outputs from one or more inputs by using appropriate ___. The output can be a deliverable or an outcome. Outcomes are an end result of a process.

project management tools and techniques

A ___ is a collection of logically related project activities that culminates in the completion of one or more deliverables. The phases in a life cycle can be described by a variety of attributes. Attributes may be measurable and unique to a specific phase.

project phase

Some organizations may employ the use of a ___ to effectively manage multiple programs and projects that are underway at any given time.

project portfolio

Maximizing the value of the portfolio requires careful examination of the components that comprise the portfolio. Components are prioritized so that those contributing the most to the organization's strategic objectives have the ___.

required financial, team, and physical resources

The needs assessment involves ___. The results of the needs assessment may be summarized in the business case document.

understanding business goals and objectives, issues, and opportunities and recommending proposals to address them

Project Quality Management

Includes the processes for incorporating the organization's quality policy regarding planning, managing, and controlling project and product quality requirements, in order to meet stakeholders' expectations.

Project Cost Management

Includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so the project can be completed within the approved budget.

Fulfillment of project objectives may produce one or more of the following deliverables:

1. A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself (e.g., the correction of a defect in an end item); 2. A unique service or a capability to perform a service (e.g., a business function that supports production or distribution); 3. A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society); and 4. A unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services).

Project Procurement Management

Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Project business case

A documented economic feasibility study used to establish validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.

Project

A temporary endeavor undertaken to create a unique product, service, or result.

___ are agile, iterative, or incremental. The detailed scope is defined and approved before the start of an iteration. Adaptive life cycles are also referred to as agile or change-driven life cycles.

Adaptive life cycles

Project Risk Management

Includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.

Project Scope Management

Includes the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully.

Example of intangible elements include:

Goodwill, brand recognition, public benefit, trademarks, strategic alignment, and reputation.

Project Integration Management

Includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

Organizational leaders initiate projects in response to factors acting upon their organizations. There are four fundamental categories for these factors, which illustrate the context of a project. These factors influence an organization's ongoing operations and business strategies. Leaders respond to these factors in order to keep the organization viable. Projects provide the means to successfully make the changes necessary to deal with these factors. The factors ultimately should link to strategic objectives of the organization and the business value of each project.

Meet regulatory, legal, or social requirements; Satisfy stakeholder requests or needs; Implement or change business or technological strategies; and Create, improve, or fix products, processes, or services.

Examples of tangible elements include:

Monetary assets, stockholder equity, utility, fixtures, tools, and market share.

A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. ___ is defined as the centralized management of one or more portfolios to achieve strategic objectives. The programs or projects of the portfolio may not necessarily be interdependent or directly related.

Portfolio management

Work performance information

The performance data collected from various controlling processes, analyzed in context and integrated based on on relationships across areas. Examples of performance information are status of deliverables, implementation status for change requests, and forecast estimates to complete.

Work Performance Reports

The physical or electronic representation of work performance information compiled in project documents, which is intended to generate decisions or raise issues, actions, or awareness. Example include, status reports, memos, justifications, information notes, electronic dashboards, recommendations, and updates.

Work performance

The raw observations and measurements identified during activities performed to carry out project work. Examples include reported percent of work physically completed, quality and technical performance measurements, start and finish dates of schedule activities, number of change requests, number of defects, actual costs, actual durations, etc.

Temporary endeavor

The temporary nature of projects indicates that a project has a definite beginning and end. Temporary does not necessarily mean a project has a short duration.

PMI Code of Ethics

The values that the global project management community defined as most important were responsibility, respect, fairness, and honesty.

Executing Process Group

Those processes performed to complete the work defined in the project management plan to satisfy the project requirements.

Initiating Process Group

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.

Closing Process Group

Those processes performed to formally complete or close the project, phase, or contract.

Planning Process Group

Those processes required to establish the scope of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve.

Monitoring and Controlling Process Group

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.

Organizational project management aka OPM is defined as ___.

a framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives

Before the project begins, the organization is commonly referred to as being in the __ state. The desired result of the change driven by the project is described as the __ state.

current; future

A very large project may be referred to as a ___. As a guideline, ___ cost US$1 billion or more, affect 1 million or more people, and run for years.

megaproject; megaprojects

The successful completion of a project results in the organization moving to the ___ state and achieving the specific ___.

future; objective

In an ___, the deliverable is produced through a series of iterations that successively add functionality within a predetermined time frame. The deliverable contains the necessary and sufficient capability to be considered complete only after the final iteration.

incremental life cycle

In an ___, the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified as the project team's understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product.

iterative life cycle

Program management and portfolio management differ from project management in their ___. However, portfolios, programs, projects, and operations often engage with the same stakeholders and may need to use the same resources, which may result in a conflict in the organization. This type of a situation increases the need for coordination within the organization through the use of ___ to achieve a workable balance in the organization.

life cycles, activities, objectives, focus, and benefits; portfolio, program, and project management

A ___ often precedes the business case.

needs assessment

The project business case lists the ___. It helps measure the project success at the end of the project against the project objectives. The business case is a project business document that is used throughout the project life cycle. The business case may be used before the project initiation and may result in a go/no-go decision for the project.

objectives and reasons for project initiation

From a business perspective, a project is aimed at moving an organization from ____.

one state to another state in order to achieve a specific objective

Projects are a key way to create value and benefits in organizations. In today's business environment, ___ need to be able to manage with tighter budgets, shorter timelines, scarcity of resources, and rapidly changing technology. The business environment is dynamic with an accelerating rate of change. To remain competitive in the world economy, companies are embracing project management to consistently deliver business value.

organizational leaders

Alignment with the organization's strategic business goals can be achieve through the systematic management of portfolios, programs, and projects through the application of ___.

organizational project management (OPM)

Changes in business or organizational operations may be the focus of a project-especially when there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are ___ of the scope of a project; however, there are intersecting points where the two areas cross.

outside

Examples of ___ names include but are not limited to: • Concept development, • Feasibility study, • Customer requirements, • Solution development, • Design, • Prototype, • Build, • Test, • Transition, • Commissioning, • Milestone review, and • Lessons learned.

phase

A ___ is held at the end of a phase.

phase gate

Using multiple phases may provide better insight to managing the project. It also provides an opportunity to asses the project performance and take necessary corrective or preventative actions in subsequent phases. A key component used with project phases is the ___.

phase review

Projects may be separated into distinct ___. These ___ are generally given names that indicate the type of work done in that phase.

phases or subcomponents

A ___ is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.

portfolio

Portfolio management also confirms that the ___ is consistent with and aligned with organizational strategies.

portfolio

In a ___, the project scope, time, and cost are determined in the early phases of the life cycle. Any changes to the scope are carefully managed. Predictive life cycles may also be referred to as waterfall life cycles.

predictive life cycle

Project life cycles can be ___. Within a project life cycle, there are generally one or more phases that are associated with the development of the product, service, or result. These are called a development life cycle.

predictive or adaptive

Project life cycles are independent of ___, which may be produced by a project. A ___ is the series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement.

product life cycles; product life cycle

Business value in projects refers to the benefit that the results of a specific project provide to its ___. The benefit may be tangible, intangible, or both.

stakeholders

Projects are ___, but their ___ may exist beyond the end of the project. Projects may produce deliverables of a social, economic, material, or environmental nature. For example, a project to build a national monument will create a deliverable expected to last for centuries.

temporary; deliverables

PMI defines business value as ___.

the net quantifiable benefit derived from a business endeavor

Operations management is an area that is outside the scope of formal project management as described in this guide. Operations management is concerned with ___.

the ongoing production of goods and/or services It ensures that business operations continue efficiently by using the optimal resources needed to meet customer demands. It is concerned with managing processes that transform inputs (e.g., materials, components, energy, and labor) into outputs (e.g., products, goods, and/or services).

Program management focuses on the interdependencies between projects and between projects and the program level to determine the optimal approach for managing them. Actions related to these program and project-level interdependencies may include:

• Aligning with the organizational or strategic direction that affects program and project goals and objectives; • Allocating the program scope into program components; • Managing interdependencies among the components of the program to best serve the program; • Managing program risks that may impact multiple projects in the program; • Resolving constraints and conflicts that affect multiple projects within the program; • Resolving issues between component projects and the program level; • Managing change requests within a shared governance framework; • Allocating budgets across multiple projects within the program; and • Assuring benefits realization from the program and component projects.

Project management processes apply globally across industries. Project management processed are logically linked by the outputs they produce. Processes may contain overlapping activities that occur throughout the project. The output of one process generally results in either:

• An input to another process, or • A deliverable of the project or project phase

A business case may include but is not limited to documenting the following: Business needs:

• Determination of what is prompting the need for action; • Situational statement documenting the business problem or opportunity to be addressed including the value to be delivered to the organization; • Identification of stakeholders affected; and • Identification of the scope.

The aim of portfolio management is to:

• Guide organizational investment decisions. • Select the optimal mix of programs and projects to meet strategic objectives. • Provide decision-making transparency. • Prioritize team and physical resource allocation. • Increase the likelihood of realizing the desired return on investment. • Centralize the management of the aggregate risk profile of all components.

A business case may include but is not limited to documenting the following: Analysis of the situation:

• Identification of organizational strategies, goals, and objectives; • Identification of root cause(s) of the problem or main contributors of an opportunity; • Gap analysis of capabilities needed for the project versus existing capabilities of the organization; • Identification of known risks; • Identification of critical success factors; • Identification of decision criteria by which the various courses of action may be addressed (Required, Desired, or Optional); or • Identification of a set of options to be considered for addressing the business problem or opportunity (Do Nothing, Do the minimum work possible to address the problem or opportunity, or Do more than the minimum to address the problem or opportunity).

It is up to the project management team to determine the best life cycle for each project. The project life cycle needs to be flexible enough to deal with the variety of factors included in the project. Life cycle flexibility may be accomplished by:

• Identifying the process or processes needed to be performed in each phase, • Performing the process or processes identified in the appropriate phase, • Adjusting the various attributes of a phase (e.g., name, duration, exit criteria, and entrance criteria).

Project management processes are grouped into the following five Project Management Process Groups:

• Initiating Process Group. • Planning Process Group. • Executing Process Group. • Monitoring and Controlling Process Group. • Closing Process Group.

Project phases may be established based on various factors including: but not limited to:

• Management needs; • Nature of the project; • Unique characteristics of the organization, industry, or technology; • Project elements including, but not limited to, technology, engineering, business, process, or legal; and • Decision points (e.g. funding, project go/no-go, and milestone review).

Effective project management helps individuals, groups, and public and private organizations to:

• Meet business objectives; • Satisfy stakeholder expectations; • Be more predictable; • Increase chances of success; • Deliver the right products at the right time; • Resolve problems and issues; • Respond to risks in a timely manner; • Optimize the use of organizational resources; • Identify, recover, or terminate failing projects; • Manage constraints (e.g., scope, quality, schedule, costs, resources); • Balance the influence of constraints on the project (e.g., increased scope may increase cost or schedule); and • Manage change in a better manner.

Poorly managed projects or the absence of project management may result in:

• Missed deadlines; • Cost overruns; • Poor quality; • Rework; • Uncontrolled expansion of the project; • Loss of reputation for the organization; • Unsatisfied stakeholders; and • Failure in achieving the objectives for which the project was undertaken.

Portfolios, programs, and projects are aligned with or driven by organizational strategies and differ in the way each contributes to the achievement of strategic goals:

• Portfolio management aligns portfolios with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources. • Program management harmonizes its program components and controls interdependencies in order to realize specified benefits. • Project management enables the achievement of organizational goals and objectives.

Development life cycles can be predictive, iterative, incremental, adaptive, or a hybrid model:

• Predictive life cycle • Iterative life cycle • Incremental life cycle • Adaptive life cycle • A hybrid life cycle

Looking at project, program, and portfolio management from an organizational perspective:

• Program and project management focus on doing programs and projects the "right" way; and • Portfolio management focuses on doing the "right" programs and projects.

Although the Knowledge Areas are interrelated, they are defined separately from the project management perspective. The ten Knowledge Areas identified in this guide are used in most projects most of the time. The ten Knowledge areas described in this guide are:

• Project Integration Management • Project Scope Management • Project Schedule Management • Project Cost Management • Project Quality Management • Project Resource Management • Project Communications Management • Project Risk Management • Project Procurement Management • Project Stakeholder Management

Project Management Business Documets

• Project business case • Project benefits management plan

Projects can intersect with operations at various points during the product life cycle, such as:

• When developing a new product, upgrading a product, or expanding outputs; • While improving operations or the product development process; • At the end of the product life cycle; and • At each closeout phase. At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources or knowledge to operations or through a transfer of operational resources to the project.

A project may be managed in three separate scenarios:

• as a stand-alone project - outside of a portfolio or program, • within a program, or • within a portfolio.

Depending on the organization, industry, or type of work, phase gates may be referred to by other terms such as:

• phase review, • stage gate, • kill point, • phase entrance, or • phase exit.