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Project Management
Professional
PMP®
Ahmad H. Maharma
Master Of Engineering Management
PMP®,RMP®
Ahmad Maharma PMBOK 5th Edition 2
Getting Acquainted
• Name
• Title
• Why are you here?
• What do you want to learn from this course?
• A little known fact
...
Ground Rules
• Material & Book(s)
• Time & Breaks
• Smoking
• Mobile Phones
• Side Talks
• Respect
• Ask, ask, ask
Ahmad M...
How This Training is Delivered
• Lectures
• Exercises
• Group Work
• Discussions
• Quizzes
Ahmad Maharma PMBOK 5th Edition...
Basic definitions
• Non-for-profit Professional Association
• Started in 1969
• Over 400,000 members worldwide
• In more t...
PMI’s Membership
Ahmad Maharma PMBOK 5th Edition 7
PMPs Certified
Ahmad Maharma PMBOK 5th Edition 8
What is PMP®?
• A Credential initiated by PMI in 1984 “Project
Management Professional”
• Demonstrate to employers, client...
Getting Certified
Title PMP®
Full Name Project Management Professional
Project Role Leads and directs project teams
Eligib...
PMP Exam
• 4 Hours Web-Based
• 200 Questions
• 175 Questions Counted
• Passing Score: 107
Ahmad Maharma PMBOK 5th Edition ...
PMP Exam Structure
Area No. of Questions %
Initiation 26 13
Planning 48 24
Execution 60 30
Monitoring & Controlling 50 25
...
PMP Exam
• Exam tests:
• 1- Theoretical Knowledge (PMBOK)
• 2- Personal Skills
• 3- Practical Experience
• 4- Ethics & pro...
Project Management Body
of Knowledge (PMBOK)
• Identifies that subset of the PMBOK that is generally recognized as a good
...
Project Management
Professional
PMP®
Project Management Fundamentals
What is a Project?
“A Temporary endeavor undertaken to create a unique Product,
service, or result”
Ahmad Maharma PMBOK 5t...
1- Temporary
• Definite Beginning (T-1)& End (T4)
• End reached when:
• Objectives reached
• Objectives cannot be met
• Ne...
2- Unique
• Products
• Capability
• Results
• Repetitiveness does not change the fundamental
uniqueness of the project
Ahm...
3- Progressively Elaborative
• Developing in steps, and continuing by increments.
• Plans get improved and clearer as more...
Projects Vs. Operation
20
Operation Project
Repeating process One of a kind, temporary
process
No clear beginning or endin...
What is Project Management?
• Project management is the application of
knowledge, skills, tools and techniques to project
...
What Project Management is Not?
• Managing or buying a software.
• Preparing a schedule or a bar chart
• Preparing progres...
Project Management Context
• Programs & Program Management
• Portfolios & Portfolio Management
• Project Management Office...
Program Management
• A program is a group of related projects managed in a coordinated way to obtain
benefits and control ...
Program Management
Project
D
Project
C
Project
B
Project
A
Objective
(s)
Ahmad Maharma PMBOK 5th Edition 25
Portfolio management
• A portfolio represents a collection of active programs, projects and other that are
grouped togethe...
Portfolio Management
Project
(E)
Program A
Project
(F)
Operations
Ahmad Maharma PMBOK 5th Edition 27
Ahmad Maharma PMBOK 5th Edition 28
Ahmad Maharma PMBOK 5th Edition 29
Project Management Offices
(PMOs)
• An organizational unit to centralize and coordinate the management of projects under i...
PMO Types
• There are Three types of PMOs that may exist in an organization:
 Supportive PMO
 Controlling PMO
 Directiv...
Supportive PMO
• The most common type of PMO
• Its purpose is to empower project managers and teams to
deliver their proje...
Controlling PMO
• Offers controlling services (such as project reviews, audits,
assessments and governance), in addition t...
Directive PMO
• This is the least common, but sometimes most effective type of
PMO
• It offers directive services, where i...
Project Management Offices
(PMOs)
• The PMO may:
 Manage the interdependencies between projects
 Help provide resources
...
PMOs-Requirements for Success
1. Role should be clearly defined
2. Only one role, don’t try to do it all
3. Commitment and...
The Role of Project Manager
Ahmad Maharma PMBOK 5th Edition 37
Knowledge
 What the Project Manager knows about Project
Management.
Ahmad Maharma PMBOK 5th Edition 38
Performance
 What the Project Manager is able to do or
accomplish while applying his/ her project
management knowledge
Ah...
Personal
 How the Project Manager behaves when
performing the project or related work.
 Encompasses:
 Attitude
 Core p...
Project Manager Interpersonal
Skills
Project
Manager
Interpersonal
Skills
Leadership
Team
Building
Motivation
Com-
municat...
PMBOK Reading
 Chapter 1
Ahmad Maharma PMBOK 5th Edition 42
Project Management
Professional
PMP®
Project Management Framework
Project Lifecycle
 A collection of generally sequential and sometimes overlapping project phases
 Phases name and number...
Project Lifecycle Vs. Product
Lifecycle
Product lifecycle outlives project lifecycle
Project lifecycle is part of produc...
Cost & Staffing Level
Ahmad Maharma PMBOK 5th Edition 46
The project through its lifecycle
Ahmad Maharma PMBOK 5th Edition 47
Project Phases
• Divisions within a project where extra control is needed to
effectively manage the completion of a major ...
Project Lifecycle- Sequential
Phases
Ahmad Maharma PMBOK 5th Edition 49
Project Lifecycle- Overlapping
Phases
Ahmad Maharma PMBOK 5th Edition 50
Project Lifecycle-
The Spiral Model
Ahmad Maharma PMBOK 5th Edition 51
TTM deliverables
• Marketing Deliverables
• Customer Journey Deliverables
• Financial & regulatory Deliverables
• ITN Deli...
Stakeholders
• Persons or organizations who are actively involved in the
project, or whose interests maybe positively or n...
Stakeholders
Ahmad Maharma PMBOK 5th Edition 54
5 Steps to Managing Stakeholders
• Identify ALL of them
• Determine ALL their requirements
• Determine their expectations
...
Organizational influence
Projects don’t operate in vacuum, they are influenced
by organizational:
• Culture
• Style
• Stru...
Functional Organization
 Also known as “Silo” organization
 Functional managers control resources
 Communication happen...
Functional Organization
Ahmad Maharma PMBOK 5th Edition 58
Advantages & Disadvantages
Advantages
• Clear Authority
• Career
Development
• Controlled
Disadvantages
• Poor
Coordinatio...
Projectized Organization
 Also known as “No home”
 Systematic approach to project management
 Well defined project mana...
Projectized Organization
Ahmad Maharma PMBOK 5th Edition 61
Advantages & Disadvantages
Advantages
• Effective
Communication
• Project Driven
Coordination
• More focused
Disadvantages...
Matrix organization
 Also known as “Two Bosses”
 Has three types:
 Weak matrix
 Balanced matrix
 Strong matrix
Ahmad ...
Weak Matrix
Ahmad Maharma PMBOK 5th Edition 64
Balanced Matrix
Ahmad Maharma PMBOK 5th Edition 65
Strong Matrix
Ahmad Maharma PMBOK 5th Edition 66
Advantages & Disadvantages
Advantages
• Project Manager
Assigned.
• Communication and
Coordination
• Visible Project
Objec...
Organizational Influences on Project Management
PMBOK 5th Edition 68Ahmad Maharma
Project Management Process
Groups
Monitoring &
Controlling Processes
Closing
Processes
Initiation
Processes
Planning
Proce...
Project Management Process
Groups
 A version of Deming’s Cycle
 Plan – Do – Check- Act (PDCA)
Ahmad Maharma PMBOK 5th Ed...
Interaction Between Process
Groups
Level of
Process
Interaction
Initiation
Process
Group
Planning
Process
Group
Execution
...
72
Project Phases
• All projects are divided into phases
• All phases together are known as the Project Life Cycle
• Each ...
Ahmad Maharma 73PMBOK 5th Edition
Ahmad Maharma 74PMBOK 5th Edition
Ahmad Maharma 75PMBOK 5th Edition
Project Management Framework
• The PMBOK’s 10 Knowledge areas
Time
Management
Cost
Management
Scope
Management
Quality
Man...
PM Knowledge Areas & Process Groups 47 processes
PM Process Groups
Knowledge Area
Processes
Initiating Process
Group
Plann...
Project Scope Management
Knowledge
Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Scope
Plan scop...
Project Time Management
Knowledge
Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Time
Plan schedu...
Project Cost Management
Knowledge
Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Cost
Plan Cost m...
Project Quality Management
Knowledge
Area
Process
Initiating Planning Executing Monitoring & Contol Closing
Cost Plan Qual...
Project Human Resource Management
Knowledge Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Human
...
Project Communication Management
Knowledge Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Communi...
Project Risk Management
Knowledge
Area
Process
Initiating Planning Executing Monitoring & Control Closing
Risk
Plan Risk M...
Project Procurement Management
Knowledge Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Procureme...
Project Integration Management
Knowledge
Area
Process
Initiating Planning Executing Monitoring & Control Closing
Scope
• D...
Project Stakeholder Management
Knowledge
Area
Process
Initiating Planning Executing Monitoring & Control Closing
Scope
Ide...
The Project Life Cycle
Ahmad Maharma PMBOK 5th Edition 88
How do we define success?
 On time
 Within budget
 Scope integrity
 Achieving quality
Scope
Ahmad Maharma PMBOK 5th Ed...
Chaos Report
 31.1% of projects will be cancelled before they ever get
completed
 52.7% of projects will cost 189% of th...
Why Projects Fail?
 A subject for discussion
Ahmad Maharma PMBOK 5th Edition 91
The Opera House Project-
Sydney
 Original cost estimate (in 1957) was US$ 7 million.
 The original completion date was 2...
The Three Main Ones
 Among the following factors, which is the most important
contributor to project failure??!!
Lack of
...
Reason 1
 Lack of User Involvement
– Correctly identify proper user
– Develop and Maintain a quality relationship with th...
Reason 2
 No Executive Management Support
– Have a simple vision
– Get clear commitment
– Make fast decisions
– Have a de...
Reason 3
 Absence of clear business objectives
– Make sure everyone understands the project's
objectives
– Elevator pitch...
Enterprise Environmental Factors
 The Internal and External environmental factors surrounding
and/or influencing the proj...
Enterprise Environmental Factors
 Culture & structure
 Regulations & Standards
 Infrastructure
 Existing human resourc...
Organizational Process Assets
 Include all process related assets in addition to the
organization’s knowledge bases
 Inp...
Processes and Procedures
 Standard Processes.
 Templates.
 Communication Requirements.
 Financial Controls Procedures....
Corporate Knowledge
 Process Measurement Database.
 Project Files.
 Historical Information and Lessons Learned.
 Issue...
PMBOK Reading
 Chapters 2 & 3
Ahmad Maharma PMBOK 5th Edition 102
Project Management
Professional
PMP®
Phase #1: PROJECT INITIATION
Why projects start?
 A market demand,
 An Organizational need,
 A customer request,
 A technological advance,
 A lega...
Project Management
Professional
PMP®
Phase #1 : INITIATION
Chapter 4: Integration / 4.1 Develop Project Charter
Initiation Processes
Develop
Project
Charter
Integration
Identify
Stakeholders
Communication
Ahmad Maharma PMBOK 5th Editi...
Develop Project Charter
 The process of developing a document that formally
authorizes a project or a phase and documenti...
What is a Project Charter?
 A document that formally authorizes a project or a phase and
documents initial requirements t...
Why a charter is needed?
 Defines the reason of the project
 Assigns the project manager and his/ her authority level
 ...
Facts about the project charter
 A must for all projects and/ or phases
 Communicate the project purpose or justificatio...
Develop Project Charter
Project Statement
of Work (SOW)
Business Case
Agreements
Enterprise
Environmental
Factors
Org...
Project Statement of Work
 A narrative description of products or services to be supplied
by the project.
 References:
...
Business Case
 A document that provides necessary information from a
business perspective on whether or not the project i...
Agreements
 MoUs
 SLAs
 Letters of Agreement
 Letters of Intent
Ahmad Maharma PMBOK 5th Edition 114
Expert Judgment
 Stakeholders.
 Consultants.
 Industrial groups.
 Professional and technical associations.
 Other uni...
Facilitation Techniques
 Brainstorming
 Conflict Resolution
 Problem Solving
 Meetings
Ahmad Maharma PMBOK 5th Edition...
Contents of project Charter
Purpose or justification
Project Description
Project and Product Requirements
Acceptance C...
Project Management
Professional
PMP®
Phase #1: PROJECT INITIATION
Chapter 13: Stakeholders / 13.1 Identify Stakeholders
Identify Stakeholders
Develop
Project
Charter
Integration
Identify
Stakeholders
Communication
Ahmad Maharma PMBOK 5th Edit...
Identify Stakeholders
Project Charter
Procurement
Documents
Enterprise
Environmental
Factors
Organizational
Process As...
Stakeholder Analysis
 The process of systematically gathering and analyzing
quantitative and qualitative information to d...
3 Steps to Managing Stakeholders
1. Identify Your Stakeholders
2. Prioritize Your Stakeholders
3. Manage Your Stakeholders...
Step1- Identify Stakeholders
 Identifying all stakeholders impacted by the project and
documenting relevant Information r...
Identify Stakeholders Purpose
 Enables the project manager to focus on the relationships
necessary to ensure the success ...
Stakeholder Register
 The Stakeholder Register is used to identify those people and
organizations impacted by the project...
Step2- Prioritize Your
Stakeholders
 Identify the potential impact or support each stakeholder
could generate
 Classify ...
Power/ Interest Grid
Keep
Informed
Monitor
(Minimum
Effort)
Manage
Closely
Keep
Satisfied
High
Low
Low High
Power
Interest...
Step3: Assess Your Stakeholders
 Anticipate how key stakeholders react in different
situations, in order to plan how to i...
PMBOK Reading
 Chapter 4
- Section 4.1
 Chapter 13
- Section13.1
Ahmad Maharma PMBOK 5th Edition 129
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 4: Scope / 4.2 Develop Project Management Plan
Develop Project Management
Plan
 Documenting the actions necessary to define, prepare,
integrate, & coordinate all subsid...
Develop Project Management
Plan
Project Charter
Outputs from
Planning
Processes
Enterprise
Environmental
Factors
Organ...
Project Management Plan
 Integrates and consolidates all of the subsidiary management
plans and baselines from the planni...
Project Management Plan
contents
 Subsidiary Plans
 Project Scope Management Plan
 Requirements Management Plan
 Sched...
Project Management Plan Vs. Project
Documents
Project Management Plan Project Documents
Change Management Plan Activity At...
PMBOK Reading
 Chapter 4
- Section 4.2
Ahmad Maharma PMBOK 5th Edition 137
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 5: Scope / 5.1 Plan Scope Management
Scope Planning
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Ahmad Maharma PMBOK 5th Edition 139
Project Scope Vs. Product Scope
 Project Scope: The work that needs to be accomplished to
deliver a product, service, or ...
Plan Scope Management
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Ahmad Maharma PMBOK 5th Edition 1...
Plan Scope management
 The process of creating a scope management plan that
documents how the project scope will be defin...
Plan Scope Management
Project
Management Plan
Project Charter
Enterprise
environmental
factors
Organizational
Process ...
Project Scope Management
Plan
 Part of Develop Project Management Plan
 The outcome of a planning effort that precedes p...
It Includes:
 Processes for:
– Detailing the project scope statement.
– WBS creation, maintenance, and approval.
– Formal...
Requirements Management Plan
(RQM)
 A Plan that documents how requirements will be analyzed,
document and managed (tracke...
Requirements Management Plan
(RQM) Components
 How Requirement activities will be planned, tracked and
reported
 Configu...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 5: Scope / 5.2 Collect Requirements
Collect Requirements
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Ahmad Maharma PMBOK 5th Edition 149
Collect Requirements
 The process of defining and documenting stakeholders’ needs
to meet project objectives.
 Requireme...
Collect Requirements
 Project Requirements include business requirements, project
management requirements, delivery requi...
Collect Requirements
Scope
Management Plan
Requirements
Management Plan
Stakeholder
Management Plan
Project Charter
S...
Interviews
 Talking to stakeholders directly.
 Asking questions and recording answers
 “One-on-one”, or multiple interv...
Focus Groups
 Bring together prequalified stakeholders and subject matter
experts.
 Trained moderator guides the group t...
Facilitated Workshops
 Focused sessions that bring key cross-functional stakeholders
together to define product requireme...
Group Creativity Techniques
• Brainstorming. A technique used to generate and collect multiple ideas related to project an...
Mind Map Example
Ahmad Maharma PMBOK 5th Edition 157
Group decision Making
Techniques
Group decision making is an assessment process of multiple alternatives with an expected ...
Questionnaires & Surveys
 Written sets of questions.
 Aim to quickly accumulate information from a broad group of
respon...
Observations
 Viewing user performance
 Also called “Job shadowing”
 Helpful for detailed processes when people that us...
Prototypes
 Provide a working model of the expected product before
actually building it.
 Support the concept of progres...
Benchmarking
 Involves comparing actual or planned practices, such as
processes and operations, to those of comparable
or...
Context Diagrams
 Visually depict the product scope by showing a business
system (process, equipment, computer system…etc...
Context Diagrams
Ahmad Maharma PMBOK 5th Edition 164
Requirements Documentation
 The document including the stakeholders’ requirements to
meet the business need for the proje...
Requirements Documentation
Elements
 Business need or opportunity
 Functional requirements and non functional requiremen...
Requirements Traceability Matrix
 A tool that links project objectives to requirements to
deliverables to product feature...
Requirements Traceability Matrix
Contents
 Business needs, opportunities, goals, and objectives
 Project objectives
 Pr...
Example of Requirements
Traceability Matrix
Ahmad Maharma PMBOK 5th Edition 169
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 5: Scope / 5.3 Define Scope
Define Scope
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Ahmad Maharma PMBOK 5th Edition 171
Define Scope
 The process of developing a detailed description of the
project and the product
 Critical to project succe...
Define Scope
Scope
Management Plan
Project Charter
Requirements
Documentation
Organizational
Process Assets
Expert Ju...
Product Analysis
 Translating high-level product description into tangible
deliverables
 Includes techniques such as:
 ...
Alternatives Identification
 A technique to generate different approaches to execute and
perform the work of the project....
Project Scope Statement
 The project scope statement describes in details the project
deliverables, and the work required...
Project Scope Statement
Contents
 Product scope description
 Product acceptance criteria
 Project deliverables
 Projec...
Constraints
 Applicable restrictions that will affect the performance of
the project.
 Factors that affect a scheduled a...
Assumptions
 Are factors that, for planning purposes, are considered to be
true, real, or certain.
 Affect all aspects o...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 5: Scope / 5.4 Create WBS
Create WBS
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Ahmad Maharma PMBOK 5th Edition 181
Create WBS
 The process of subdividing project deliverables and project
work into smaller, more manageable components.
 ...
Ahmad Maharma PMBOK 5th Edition 183
Ahmad Maharma PMBOK 5th Edition 184
WBS Types
 Phases- Deliverables
 Deliverables-Phases
 Combination of both
Ahmad Maharma PMBOK 5th Edition 185
Example: WBS (Phases –
Deliverables)
Ahmad Maharma PMBOK 5th Edition 186
Example: WBS (Deliverables–
Phases)
Ahmad Maharma PMBOK 5th Edition 187
Create WBS
Scope
Management Plan
Project Scope
Statement
Requirements
Documentation
Enterprise
Environmental
Factors
...
Decomposition
 Subdivision of project deliverables into smaller, more
manageable components until the work and deliverabl...
Work Package
 The “Work Package” level is the lowest level in the WBS.
 Work Package is the point at which the cost and ...
Decomposition Involves
 Identifying deliverables and related work.
 Structuring and organizing the WBS.
 Decomposing up...
WBS Dictionary Contents
 Code of account identifier
 Statement of work
 Responsible organization
 Schedule milestones
...
Scope Baseline
 Scope statement
 WBS
 WBS dictionary
Ahmad Maharma PMBOK 5th Edition 193
WBS Dictionary
 A document generated by the “Create WBS” process that
supports the WBS.
 Provides more detailed descript...
WBS is not
 Organizational Breakdown Structure (OBS)
 Bill Of Materials (BOM)
 Risk Breakdown Structure (RBS)
 Resourc...
PMBOK Reading
 Chapter 5
- Sections 5.1-5.4
Ahmad Maharma PMBOK 5th Edition 196
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.1 Plan Schedule Management
PM Knowledge Areas & Process Groups 47 processes
PM Process Groups
Knowledge Area
Processes
Initiating Process
Group
Plann...
Project Time Management
Knowledge
Area
Process
Initiating Planning Executing
Monitoring &
Control
Closing
Time
Plan schedu...
Project Time Planning
Estimate
Activity
Durations
Develop
Schedule
Sequence
Activities
Estimate
Activity
Resources
Define
...
Plan Schedule Management
Estimate
Activity
Durations
Develop
Schedule
Sequence
Activities
Estimate
Activity
Resources
Defi...
Plan Schedule Management
 The process of establishing policies, procedures, and
documentation for planning, developing, m...
Plan Schedule Management
Project
Management
Plan
Project
Charter
Enterprise
Environment
al factors
Org. Process
Assets...
Analytical Techniques
 Scheduling Methodology
 Scheduling Tools & Techniques
 Estimating Approaches
 Formats
 Project...
Schedule Management Plans
 A component of the project management plan.
 Establishes the criteria and activities for deve...
Schedule Management Plans
 Can include the following:
 Project schedule model development
 Level of accuracy
 Units of...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.2 Define Activities
Define Activities
Estimate
Activity
Durations
Develop
Schedule
Sequence
Activities
Estimate
Activity
Resources
Define
Acti...
Define Activities
 The process of identifying the specific actions to be performed to produce the project
deliverables.
...
Define Activities
Schedule
Managemen
t Plan
Scope
Baseline
Enterprise
Environmen
tal factors
Org. Process
Assets
 Dec...
Rolling Wave Planning
 Progressive detailing of the project management plan
Ahmad Maharma PMBOK 5th Edition 211
Activity List
 A comprehensive list including all schedule activities
required for the project.
 Includes:
 Activity id...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.3 Sequence Activities
Sequence Activities
Estimate
Activity
Durations
Develop
Schedule
Sequence
Activities
Estimate
Activity
Resources
Define
Ac...
Sequencing Activities
 Schedule
Management
Plan
 Activity List
 Activity
Attributes
 Milestone List
 Enterprise
Envir...
Sequence Activities
 Identifying & documenting dependencies among schedule
activities
 Can be done using software or man...
Precedence Diagramming Method
(PDM)
 Also known as Activity-On-Node
 Activities are represented in boxes (Nodes),
and ar...
Dependencies Relationships
 Finish-to-Start
 Finish-to-Finish
 Start-to-Start
 Start-to-Finish
A
B
A
B
A
B
A
B
Ahmad M...
Dependencies Relationships
 Use the following Rule of Thumb to understand the
relationships better:
 Activity A should _...
Types of Dependencies
 Mandatory
 Discretionary
 External
 Internal
Ahmad Maharma PMBOK 5th Edition 220
Applying Leads & Lags
 Lead: The overlapping time
 Lag: The waiting time
 Float/ Slack: The time an activity can be del...
Applying Leads & Lags
• Leads.
– May be added to start an activity before the predecessor activity is complete.
• Lags
– I...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.4 Estimate Activity Resources
Estimate Activity Resources
Estimate
Activity
Durations
Develop
Schedule
Sequence
Activities
Estimate
Activity
Resources
D...
Estimate Activity Resources
 Estimating the type and quantities of resources required to
perform each schedule activity
A...
Types of Resources
 Material
 People
 Equipment
Ahmad Maharma PMBOK 5th Edition 226
Estimate Activity Resources
Schedule
Management
Plan
Activity List
Activity
Attributes
Resource
Calendars
Risk Regist...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.4 Estimate Activity Duration
Estimate Activity Durations
Estimate
Activity
Resources
Develop
Schedule
Sequence
Activities
Estimate
Activity
Durations
D...
Estimate Activity Durations
 Approximating the number of work periods needed to
complete individual activities with estim...
Estimate Activity Durations
 Schedule
Management Plan
 Activity List
 Activity Attributes
 Activity Resource
Requireme...
Estimate Activity Durations: Tools and Techniques
Expert Judgment
Expert judgment, guided by historical information, can p...
Parametric Estimating
Parametric estimating uses a statistical relationship between historical data and other variables
(e...
Three-Point Estimating
The accuracy of activity duration estimates can be improved by considering
estimation uncertainty a...
Three Point (PERT) Estimates
 Time Expected (te)= (to+4xtm+tp)/6
 to: Optimistic Estimate
 tm= Average Estimate
 tp= P...
Beta Distribution
Ahmad Maharma PMBOK 5th Edition 236
Activity Optimistic Duration
 The total number of work periods in calendar units
assigned to perform the schedule activit...
Activity Pessimistic Duration
 The total number of work periods in calendar units
assigned to perform the schedule activi...
Activity Most Likely Duration
 The total number of work periods in calendar units
assigned to perform the schedule activi...
Standard Deviation & variance
 Activity Std. Deviation (σactivity) = P – O
6
 Variance = (P – O)2
6
 Project Std Deviat...
Estimates Certainty
 Confidence level in the value is approximately 50%
 Confidence level in the value + SD is approxima...
3-Points Estimate (PERT)
Expected
6
Ο4ΜP 
Standard
Deviation
6
ΟP
Variance





 
6
ΟP 2
 varianceSD
Ahmad Mah...
3-Points Estimate (PERT)
Ahmad Maharma PMBOK 5th Edition 243
3-Points Estimate (PERT)
Ahmad Maharma PMBOK 5th Edition 244
3-Points Estimate (PERT)
Ahmad Maharma PMBOK 5th Edition 245
Exercise: Tree-point estimates (PERT)
Activity
Duration Expected
Duration
(PERT)
Activity
Standard
Deviation
Variance
rang...
Exercise: PERT - Most tricky question (Answer)
• See that the question says that Duration Uncertainty is Pessimistic minus...
Schedule Uncertainty & Risk
Analysis Process
 Schedule risk analysis uses information about the
uncertainty of activity d...
Schedule Uncertainty & Risk
Analysis Process
 If estimating activity duration involves a great deal of
uncertainty, a com...
Critical Path
 The longest path from the beginning to the end of the project.
Activities on the critical path cannot be d...
Network Diagram
A
2
B
3
C
1
D
4
E
3
F
2
G
4
H
2
Ahmad Maharma PMBOK 5th Edition 251
Calculating Critical Path
 Specify the individual activities.
 Determine the sequence of activities.
 Draw the network ...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 6: Time / 6.6 Develop Schedule
Develop Schedule
Estimate
Activity
Resources
Develop
Schedule
Sequence
Activities
Estimate
Activity
Durations
Define
Activ...
Develop Schedule
 The process of analyzing activity sequences, durations,
resource requirements, and schedule constraints...
Develop Schedule
 Schedule
Management Plan
 Activity List
 Activity Attributes
 Project Schedule
Network Diagrams
 Ac...
Resource Optimization
Techniques
 Resource Leveling
 Resource Smoothing
Ahmad Maharma PMBOK 5th Edition 257
Resource leveling
 Used when shared or critical resources are only available at certain times, or in limited
quantities, ...
Ahmad Maharma PMBOK 5th Edition 259
Resource leveling
Modeling Techniques
 What-If Scenario Analysis
 Simulation
Ahmad Maharma PMBOK 5th Edition 260
6.6.2 Develop Schedule: Tools and
Techniques
Ahmad Maharma PMBOK 5th Edition 261
Resource Smoothing. A technique that adju...
What-If Scenario Analysis
 An analysis of the question “what if the situation represented by
scenario ‘X’ happens”.
 Can...
Schedule Compression
 Fast Tracking
 Crashing
Ahmad Maharma PMBOK 5th Edition 263
Fast Tracking
 A schedule compression technique in which phases or
activities normally performed in sequence are performe...
Crashing
 A schedule compression technique in which cost and
schedule tradeoffs are analyzed to determine how to obtain
t...
Ahmad Maharma PMBOK 5th Edition 266
Crashing
Ahmad Maharma PMBOK 5th Edition 267
Crashing
Ahmad Maharma PMBOK 5th Edition 268
Crashing
Ahmad Maharma PMBOK 5th Edition 269
Crashing
Critical Chain Method
 A schedule network analysis technique that modifies the project schedule to account for
limited re...
Project schedule
 Milestone Chart
 Bar Chart
 Project schedule network chart
Ahmad Maharma PMBOK 5th Edition 271
Schedule Baseline
 Project schedule with baseline start dates and baseline finish
dates.
Ahmad Maharma PMBOK 5th Edition ...
Start & Finish Dates
 ES: Earliest start time.
 EF: Earliest finish time.
 LF: Latest finish time.
 LS: Latest start t...
Critical Path Method Basic
Ahmad Maharma PMBOK 5th Edition 274
275
Figure 6-9. Calculating Early and Late
Start and Finish Dates
Ahmad Maharma PMBOK 5th Edition
Critical Path Method Basic
Ahmad Maharma PMBOK 5th Edition 276
Forward Pass
 Schedule Calculations That Identify The Early Start and Finish
Dates of Tasks and The Project.
 ES = EF of...
Backward Pass
 Schedule Calculations That Identify The Late Start and
Finish Dates of Tasks and The Project.
 LF = LS of...
Float
 Float or slack is the amount of time that a task in a project
network can be delayed without causing a delay to:
...
Critical Path
Ahmad Maharma PMBOK 5th Edition 280
Critical Path
Ahmad Maharma PMBOK 5th Edition 281
Critical Path
Ahmad Maharma PMBOK 5th Edition 282
Critical Path
Ahmad Maharma PMBOK 5th Edition 283
Critical Path
A
2
B
3
C
1
D
4
E
3
F
2
G
4
H
2
Ahmad Maharma PMBOK 5th Edition 284
A
2
1 2
21
B
3
3 5
53
E
3
3 5
97
C
1
6 6
1515
D
4
6 9
96
F
2
10 11
1110
G
4
12 15
1512
H
2
16 17
1716
Critical Path
Ahmad ...
286
Figure 6-8. Determining the Critical Path
for Project X
Ahmad Maharma PMBOK 5th Edition
287
Using Critical Path Analysis to Make
Schedule Trade-offs
• Free slack or free float is the amount of time an activity
...
Exercise
Ahmad Maharma PMBOK 5th Edition 288
289
Exercise
Ahmad Maharma PMBOK 5th Edition
290
Answer
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291
Answer
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292
Answer
Ahmad Maharma PMBOK 5th Edition
293
Answer
Ahmad Maharma PMBOK 5th Edition
294
Exercise
Ahmad Maharma PMBOK 5th Edition
295
Exercise
Ahmad Maharma PMBOK 5th Edition
296
Answer
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297
Answer
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298
Answer
Ahmad Maharma PMBOK 5th Edition
299
Answer
Ahmad Maharma PMBOK 5th Edition
300
Answer
Ahmad Maharma PMBOK 5th Edition
301
GERT
Ahmad Maharma PMBOK 5th Edition
Gantt Chart
• Graph or bar chart with a bar for each project
activity that shows passage of time
• Provides visual display...
| | | | |
Activity
Design house
and obtain
financing
Lay foundation
Order and
receive
materials
Build house
Select paint
S...
Project Network
• Activity-on-node (AON)
• nodes represent activities, and arrows
show precedence relationships
• Activity...
PMBOK Reading
 Chapter 6
- Sections 6.1 – 6.6
Ahmad Maharma PMBOK 5th Edition 305
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 7: Cost / 7.1 Plan Cost management
Project Cost Management
Plan Cost
Management
Estimate
Costs
Determine
Budget
Ahmad Maharma PMBOK 5th Edition 307
Project Cost management
 On smaller projects, cost estimating and cost budgeting are so
tightly linked that they can be d...
Life-Cycle Costing
 A decision making tool that involves tradeoffs between short
term project costs and long term product...
Plan Cost Management
Plan Cost
Management
Estimate
Costs
Determine
Budget
Ahmad Maharma PMBOK 5th Edition 310
Plan Cost Management
 The process of establishing policies, procedures, and
documentation for planning, managing, expendi...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 7: Cost / 7.2 Estimate Cost
Estimate Costs
 Project
Management
Plan
 Project Charter
 Enterprise
Environmental
Factors
 Org. Process
Assets
 Expe...
Cost Management Plan
 Part of Develop Project Management Plan
 The outcome of a planning effort that precedes performing...
Cost Management Plan
Establishes
 Level of accuracy
 Level of precision
 Units of measure
 Organizational procedures l...
Estimate Costs
Plan Cost
Management
Estimate
Costs
Determine
Budget
Ahmad Maharma PMBOK 5th Edition 316
Cost Estimating Vs. Cost
Budgeting
 Cost Estimating: Developing an approximation of the costs of
the resources needed to ...
Estimate Costs
 Cost
Management
Plan
 Scope Baseline
 Project Schedule
 Human Resource
Plan
 Risk Register
 Enterpri...
Analogous Estimating
 Using cost of previous similar projects as basis for estimating.
 Less Costly BUT less accurate.
...
Parametric Estimating
 Uses relationship between historical data and certain
parameters (cost per square meter, cost per ...
Bottom-Up Estimating
 A method for estimating a component of work.
 The cost is estimated for individual work packages o...
Vendor Bid analysis
 Includes analysis of what the project should cost, based on
responsive bids from qualified vendors.
...
Activity Cost Estimates
 A quantitative assessment of the likely costs of the resources
required to complete project acti...
Basis of Estimates
 Documentation of basis of estimates (how it was developed).
 Documentation of assumptions made.
 Do...
Cost Elements
 Human Resources – Labor
 Hour rate, fringe benefits, overtime, overhead, per diem
 Equipment & Software
...
Types of Cost
• Variable Costs
– Change with the amount of production/work
– e.g. material, supplies, wages
• Fixed Costs
...
Project Management
Professional
PMP®
Phase #2: PROJECT PLANNING
Chapter 7: Cost / 7.3 Determine Budget
Determine Budget
Plan Cost
Management
Estimate
Costs
Determine
Budget
Ahmad Maharma PMBOK 5th Edition 328
Determine Budget
 The process of aggregating the estimated costs to individual
activities or work packages to establish a...
Determine Budget
Cost
Management
Plan
Scope Baseline
Activity Cost
Estimates
Basis of Cost
Estimates
Project
Schedule...
Funding Limit Reconciliation
 The expenditure of funds should be reconciled with any
funding limits on the commitment of ...
Cost Performance Baseline
 Time-phased budget at completion (BAC) used as basis
against which to measure, monitor, and co...
Cost Performance Baseline
Ahmad Maharma PMBOK 5th Edition 333
Cost Aggregation
• Reserves & risk management are important
while estimating!
– Contingency reserves:  Cost Baseline
the ...
Contingency Reserves
 Contingency reserves is usually percentage of total estimate
or based on risk analysis, to account ...
Management Reserves
 Budgets reserved for unplanned, but potentially required
changes to project scope. These are the ris...
Cost Budgeting
1. Activities
$75
$25 $25$25
$100 $100
$275
$400
$675
$225
$900
$140
$1040
2. Work
packages
3. Control
Acco...
Project Selection Methods
System Description
Benefit Measurement
Models (Economic
Models)
Analyze the predicted value of t...
Benefit Measurement Models (Economic Models)
Accounting Concept Description Keys for Project Selection Notes
Present value...
Present Value (PV) and (NPV)
• Present Value (PV) – Present Value of future Cash flows. Higher the better.
• NOTE: present...
Net Present Value
 The present value of total benefits (income or revenue) minus
the cost over many time periods.
 Allow...
Net Present Value
 NPV=  (FV/ (1+i)n)
 Where FV= Future Value
 i= Interest Rate
 n= Number of period intervals
Ahmad ...
Net Present Value Example
Note that
totals are
equal, but
NPVs are
not because
of the time
value of
money
Ahmad Maharma PM...
Internal Rate of Return (IRR)
• This is just another way of interpreting the benefit from the project.
• It looks at the c...
Internal Rate of return (IRR)
Is the interest rate at which the costs of the
investment lead to the benefits of the inves...
Payback Period
 The period of time required for the return on an investment
to "repay" the sum of the original investment...
Payback Period
• The payback period is the length of time required to recover the initial cash outlay on the project.
• Fo...
Benefit Cost Ratio
• This is the value obtained by dividing the benefit by the cost.
• The greater the value, the more att...
Charting the Payback Period
Ahmad Maharma PMBOK 5th Edition 349
Economic Value Added (EVA)
• Economic Value Added (EVA) – Value added to organization by the project
• Economic value shou...
Opportunity Cost.
• Opportunity cost (opportunity lost) is the NPV of the next best project, you are not doing,
because yo...
Sunk Cost
• Sunk Cost – Cost already incurred. This should not be taken into account while taking
decision.
• Are expended...
Law of Diminishing return
• Law of Diminishing return – After a point, adding more
resources will not have proportional be...
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Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
Project Management Professional (PMP)
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