PMP® in Depth (eBook)

Dr. Paul Sanghera is a leading expert in project management. He is a scientist, engineer, teacher, manager, and an author. He has years of diverse hands-on project management experience both in academic research labs from Cornell to CERN and in the high-tech computer industry from Novell to Netscape to MP3. Having worked in various roles including project manager, director of project management, director of software development, software developer, teacher and trainer, and scientist, Dr. Sanghera has developed a broad and deep comprehension of the global principles of project management applicable to all areas. In addition to authoring or coauthoring more than 150 science research papers published in American, Canadian, European, and international research journals, Dr. Sanghera has authored several books in science, technology, and project management.

Contents 5
About the Author 7
Introduction 8
Part I: Initiating the Project 14
Chapter 1: Project Management Framework 15
Basic Concepts in Project Management 16
Understanding Projects 18
What Is a Project? 18
Distinguishing Projects from Operations 19
Origins of Projects: Where Do Projects Come From? 21
Understanding Project Management 23
Understanding Progressive Elaboration 24
Understanding a Process 25
Understanding the Project Lifecycle 27
Understanding Project Management Knowledge Areas 32
Triangular Relationship: Project, Program, and Portfolio 39
Triangular Relationship: Project, Program, and Portfolio 41
Some Common Concepts 44
Probability-Related Concepts 44
Global Project Variables 46
Baseline 47
Big Picture of Project Management 47
Summary 49
Exam’s Eye View 51
Review Questions 52
Chapter 2: Project Environment 56
Project Environment: Big Picture 57
Identifying Environmental Factors and Process Assets and Their Influence on Process 59
Enterprise Environmental Factors 59
Organizational Process Assets 61
Understanding the Organizational Culture and Its Influence on Projects 64
Understanding the Organizational Structures and Their Influence on Projects 65
Functional Organizations 66
Project-oriented Organizations 67
Matrix Organizations 68
Hybrid Organization 69
Multi-Divisional, Organic, and Virtual Organizations 71
Project Management Office (PMO) 71
Introducing the Project Stakeholders 72
Identifying Project Stakeholders 72
Identifying the Stakeholder Within: Project Manager 76
Technical Project Management Skills 78
Strategic and Business Management Skills 79
Leadership Skills 80
Three Skills: Negotiation, Influencing, and Problem Solving 81
Project Management Business Documents and Project Selection 84
Project Business Case 84
Project Benefit Management Plan 86
Project Success Measures 86
Project Authorization 89
Opportunity Cost 90
Expert Judgment 90
Summary 91
Exam’s Eye View 92
Review Questions 94
Chapter 3: Initiating the Project 97
Initiating a Project: Big Picture 98
Developing a Project Charter 100
Tools and Techniques to Develop Project Charter 103
Output of Develop Project Charter 104
Identifying the Project Stakeholders 107
Gathering Data 109
Stakeholder Data Analysis 110
Data Presentation 111
Output of Identifying Stakeholders 113
Welcome Aboard 115
Summary of Project Initiation 116
Exam’s Eye View 117
Review Questions 118
Part II: Planning the Project 122
Chapter 4: Planning Project and Scope 123
Planning the Project: Big Picture 124
Elements of Project Planning 125
Planning Scope: Big Picture 127
Developing the Project Management Plan 130
Developing the Project Scope Management Plan 133
Requirement Management Plan and Scope Management Plan 134
Collecting Requirements for the Project 135
Tools and Techniques for Collecting Requirements 137
Data-Gathering Techniques 138
Data-Presentation and Analysis Techniques 139
Prototyping 140
Context Diagrams 140
Decision-making Techniques 141
Interpersonal and Team Skills 141
Output of Collecting Requirements 141
Requirements Documentation 141
Defining the Project Scope 143
Input to Scope Definition 144
Tools and Techniques for Scope Definition 145
Output of Scope Definition 146
Project Scope Statement 146
Project Document Updates 148
Creating a Work Breakdown Structure (WBS) 149
Decomposition 150
Output of Creating WBS 152
Scope Baseline 152
Project Management Common Sense 155
Summary 156
Exam’s Eye View 157
Review Questions 158
Chapter 5: Planning for Project Schedule Management 162
Project Schedule Management: Big Picture 163
Planning Schedule Management 166
Schedule Management Plan 168
Defining Activities 169
Raw Data for Defining Activities 170
Generating the Output of Defining Activities 172
Sequencing Activities 173
From Activities to Project Schedule Network Diagrams 174
Tools and Techniques for Generating Project Schedule Network Diagrams 175
Determining and Integrating Dependencies 175
Precedence Diagramming Method (PDM) 176
Estimating Activity Duration 179
Activity and Resources Information for Duration Estimation 181
Tools and Techniques for Activity Duration Estimating 182
Output of Activity Duration Estimating 185
Developing the Project Schedule 186
Collecting Information for Schedule Development 187
Applying Tools and Techniques for Schedule Development 188
Schedule Network Analysis 189
Critical Path Method 189
Resource Optimization 191
Simulations and “What if” Scenario Analysis 192
Applying Leads and Lags 193
Schedule Compression 193
Agile Release Planning and PMIS 194
Output of the Schedule Development Process 194
Summary 198
Exam’s Eye View 199
Review Questions 200
Chapter 6: Planning for Project Resources, Cost, and Procurement 205
Planning for Resources: Big Picture 207
Developing the Resource Management Plan 208
Generating Resource Management Plan 210
Tools and Techniques for Resource Management Planning 210
The Resource Management Plan 214
Resource Management Plan 214
Team Charter 216
Estimating Activity Resources 217
Raw Data for Estimating Activity Resource Requirements 218
Tools and Techniques for Activity Resource Estimating 219
Output of Activity Resource Estimating 220
Estimating Costs and Determining Budget 221
Developing the Cost Management Plan 223
Performing the Plan Cost Management Process 223
Cost Management Plan 224
Estimating Project Costs 225
Estimating Project Costs 226
Collect Basic Work Information: Scope Baseline 226
Collect Resource Information 227
Collect Information to Facilitate the Process 228
Convert Cost-related Information into Cost Estimates 228
Output of the Estimate Costs Process 231
Determining Project Budget 232
Procuring Project Resources or Components 234
Planning for Procurement 236
Core of Performing Plan Procurement Management 237
Determining Contract Types 238
Tools and Techniques for Planning Procurement Management 242
Output of Planning Procurement Management 244
Make-or-Buy Decision and Source Selection Criteria 245
Procurement Strategy 245
Bidding Documents 246
Independent Cost Estimates 247
Procurement Management Plan 248
Summary 250
Exam’s Eye View 250
Review Questions 252
Chapter 7: Planning Quality and Risk Management 257
Managing Quality: Big Picture 259
Some Concepts in Quality 261
Planning Quality 263
Core of Planning Quality Management 264
Tools and Techniques Used for Quality Planning 266
Data-Gathering Techniques. 266
Data Analysis 266
Data Presentation 267
Output of Quality Planning 269
Managing Risks: The Big Picture 271
Planning Risk Management 273
Developing the Risk Management Plan 274
Risk Management Plan 275
Identifying Risks 279
Performing Risk Identification 280
Data-Gathering Techniques 280
Data-Analysis Techniques 281
The Output of Risk Identification 282
Risk Register 282
Risk Report 283
Analyzing Risks 284
Qualitative Risk Analysis 284
Performing Qualitative Risk Analysis 285
Tools and Techniques for Qualitative Risk Analysis 286
Output of the Qualitative Risk Analysis 289
Updated Risk Register 289
Updated Risk Report 290
Performing Quantitative Analysis 291
Nutshell of Performing Quantitative Analysis 292
Tools and Techniques for Quantitative Analysis 293
Output of the Quantitative Risk Analysis: Updated Risk Report 299
Planning the Risk Response 300
Core of Risk Response Planning 301
Tools and Techniques for Risk Response Planning 302
Response Strategies for Threats 303
Response Strategies for Opportunities 305
Response Strategies for Overall Project Risk 306
Contingency 306
Data Analysis and Decision Making 306
Output of Risk Response Planning 308
Summary 310
Exam’s Eye View 311
Review Questions 312
Chapter 8: Planning for Communication and Stakeholder Management 318
Project Stakeholder Management: Big Picture 320
Planning Stakeholder Engagement 321
Raw Data for Stakeholder Engagement Plan 322
Tools and Techniques to Develop Stakeholder Engagement Plan 323
Managing Project Communication: Big Picture 326
Planning Project Communication 328
Performing the Plan Communication Management Process 330
Tools and Techniques for Communication Planning 331
Communication Requirements Analysis 331
Communication Technology Determination 333
Communication Models and Methods Determination 334
Project Communication Plan 339
Updates to Project Documents 340
Summary 342
Exam’s Eye View 343
Review Questions 344
Part III: Executing the Project 347
Chapter 9: Managing Execution of Project Work 348
Executing a Project: Big Picture 350
Directing and Managing Project Work 352
Input to Directing and Managing Project Work 353
Tools and Techniques for Directing and Managing Project Work 355
Output of Directing and Managing Project Work 356
Managing Project Knowledge 359
Input to Manage Project Knowledge 360
Tools and Techniques for Managing Project Knowledge 361
Output of Managing Project Knowledge 362
Managing Quality 363
Core of Performing Quality Management 364
Tools and Techniques for Performing Quality Management 366
Data Gathering and Data Analysis 366
Data Presentation 367
Decision Making: Multicriteria Decision Analysis 367
Quality Audit 367
Other Tools 368
Output of Performing Quality Management 368
Outline Placeholder 369
Outline Placeholder 369
Implementing Risk Responses 370
Conducting Procurements 372
Core of Conducting Procurements 374
Tools and Techniques for Conducting Procurements 375
Output of Conducting Procurements 377
Summary 378
Exam’s Eye View 379
Review Questions 380
Chapter 10: Managing Project Resources 383
Resource Management: Big Picture 384
Acquiring Project Resources 387
Selecting and Assigning Resources 388
Tools and Techniques for Acquiring and Selecting Project Resources 389
Outline Placeholder 391
Developing the Project Team 392
Tools and Techniques for the Develop Team Process 393
Output of Team Development Process 400
Managing the Project Team 401
Getting Information about the Team and Means for Managing It 402
How to Manage the Team? 402
Knowing the Team 402
Means to Facilitate Team Management 403
Tools and Techniques for Managing the Project Team 404
Outline Placeholder 408
Output of Managing the Project Team 408
Motivating Your Team 411
Summary 415
Exam’s Eye View 416
Review Questions 417
Chapter 11: Managing Communication and Stakeholder Engagement 420
Communication and Stakeholder Management: Big Picture 421
Manage Communication 422
What Information to Distribute and in What Form? 423
Tools and Techniques for Managing Communication 424
Communication Technology and Information Management Systems (PMIS) 424
Communication Skills 425
Interpersonal and Team Skills 425
Tools for Effective Communication Management 426
Techniques for Effective Communication 426
Mechanisms of Communication and Dimensions of Communication Activities 428
Output of Manage Communication 429
Project Communications 429
Organizational Process Assets Update 429
Project Document Update 429
Managing Stakeholder Engagement 430
Summary 434
Exam’s Eye View 435
Review Questions 436
Part IV: Monitoring and Controlling the Project 438
Chapter 12: Monitoring and Controlling the Project Work 439
Monitoring and Controlling the Project: Big Picture 441
Monitoring and Controlling Project Work 443
Input to Monitor and Control Project Work 445
Tools and Techniques for Monitor and Control Project Work 445
Output of Monitor and Control Project Work 447
Performing Integrated Change Control 448
Input to Integrated Change Control 449
Tools and Techniques for Integrated Change Control 451
Output from Integrated Change Control 451
Controlling Quality 453
Core of Performing Quality Control 454
Tools and Techniques for Quality Control 455
Data Gathering 455
Data Analysis 456
Data Presentation 456
Other Quality Control Tools 460
Output of Quality Control 461
Monitoring Risks 463
Control Procurements 468
Core of Controlling Procurements 470
Manage Information about the Procurement 470
Analyses of Sellers’ Data 470
Perform Audits and Inspections 471
Create Work Performance Information 471
Generate Change Requests 471
Summary 472
Exam’s Eye View 473
Review Questions 474
Chapter 13: Monitoring and Controlling the Scope, Schedule, and Resources 479
Controlling Scope, Schedule, and Resources: Big Picture 481
Controlling Scope 481
Validating the Scope of Project Deliverables 484
Controlling the Schedule 487
Performing the Control Schedule Process 488
Getting the Needed Information 488
Generating the Work Performance Information: Measuring Variance 488
Generating Schedule Forecast 489
Bringing Project Back on Track: Generating Change Requests and Updates 490
Controlling Project Resources 491
Controlling Cost 495
Performance Measurement Analysis for Cost Control 498
Cost Performance 500
Schedule Performance in Terms of Cost 501
Forecasting Techniques 504
Scope, Schedule, and Cost: The Triple Constraint 508
Summary 511
Exam’s Eye View 512
Review Questions 513
Chapter 14: Monitoring Stakeholder Engagement and Communication 518
Outline Placeholder 519
Monitoring Stakeholder Engagement and Communication: Big Picture 520
Monitoring Stakeholder Engagement 521
Performing the Monitor Stakeholder Management Process 522
Monitor Communication 524
Performing the Monitor Communication Process 525
Summary 530
Exam’s Eye View 530
Review Questions 531
Part V: Closing 533
Chapter 15: Closing the Project 534
Closing the Project: Big Picture 535
Performing Project Closure 536
Input to the Close Project Process 537
Tools and Techniques for the Close Project Process 539
Output of the Close Project or Phase Process 540
Summary 542
Exam’s Eye View 543
Review Questions 543
Appendix A: Answers to Study Checkpoint Exercises 546
Chapter 1 546
Chapter 2 550
Chapter 3 552
Chapter 4 554
Chapter 5 556
Chapter 6 560
Chapter 7 563
Chapter 8 566
Chapter 9 568
Chapter 10 569
Chapter 11 573
Chapter 12 574
Chapter 13 577
Chapter 14 581
Chapter 15 582
Appendix B: Answers and Explanations for Chapter Review Questions 584
Chapter 1 584
Chapter 2 587
Chapter 3 590
Chapter 4 594
Chapter 5 597
Chapter 6 601
Chapter 7 605
Chapter 8 610
Chapter 9 612
Chapter 10 615
Chapter 11 617
Chapter 12 619
Chapter 13 624
Chapter 14 629
Chapter 15 631
Glossary 633
Index 647