P R O F E S S I O N A L P R OJ E C T M A N A G E ME N T

PROJECTS in the center of PMI +50 years heading PMBOK applies to any PROJECT PROFESSIONALS
Enterprise Management Professional Project Management Project (predictive or agile) use common TERMINOLOGY

▶ Turn ideas into reality ▶ Certification ▶ 5 Process Groups ▶ Project Management: create a product,
▶ "Change the Business" ▶ Project Management ▶ Initiating service or result (and get it transitioned)
more appreciated than Professional (PMP®) ▶ Planning ▶ Program Mgt.: Benefit realization
“Run the Business" ▶ Executing ▶ Portfolio Mgt.: Do the right thing
▶ Knowledge ▶ Controlling ▶ Stakeholders: those who affect or are
▶ Managers know how to ▶ Project Management Body ▶ Closing affected by the project
manage operations, but of Knowledge (PMBOK®) ▶ Constraint: “I’m not free to manage my
they need professionals: ▶ 10 Knowledge Areas way, so I’m constrained”
o Who manage projects 4. Integration ▶ Assumption: “I don’t know that yet, but
o Who are accountable 5. Scope I can take assumptions”
6. Schedule ▶ Good practice: Progressive Elaboration
▶ Everything a project 7. Cost = Rolling Wave Planning
professional should know 8. Quality ▶ PMO: Project Management Office
is already invented 9. Resources ▶ PMIS: Project Mgt. Information System
10. Communications ▶ OPA: Organizational Process Assets
11. Risk ▶ EEF: Enterprise Environmental Factors
12. Procurement ▶ Lifecycle: Predictive (req. clear) vs. Agile
13. Stakeholders (discover requirements from feedback)
▶ Types of organizations:
▶ 49 Processes o Functional
▶ Inputs o Weak Matrix
▶ Tools & Techniques o Balanced Matrix
▶ Outputs o Strong Matrix
▶ Document templates o Projectized
 S C OP E M A N A G E ME N T

PROFESSIONAL
PLANNING MONITORING / CONTROL TERMINOLOGY
PROJECT MANAGERS

▶ They manage the Product Scope ▶ 5.1 Plan Scope Management ▶ 5.5 Validate Scope ▶ Scope creep
▶ to satisfy needs ▶ Scope Management Plan ▶ Verified Deliverables → ▶ Product = Σ requirements
▶ from collecting requirements ▶ Requirement Mgt. Plan Validated Deliverables ▶ Project = Σ work
▶ until customer accepts ▶ Data: “The door delivered ▶ Verified = as designed
deliverables ▶ 5.2 Collect Requirements is painted red” ▶ Validated = as required
▶ Requirements ▶ Info: “The client wants the ▶ Scope Baseline:
▶ and the Project Scope Documentation door painted brown” o Project Scope
▶ What work to do? Statement
▶ This work is “in” or “out”? ▶ 5.3 Define Scope ▶ 5.6 Control Scope o Work Breakdown
▶ 100% work complete: ▶ Scope Statement ▶ No “scope creep” Structure
o deliverables o Work approach ▶ No work out of scope o WBS Dictionary
o other work o Exclusions ▶ Facilitate positive changes ▶ Work Packages
▶ Communicate on WBS ▶ Planning Packages
▶ 5.4 Create WBS ▶ Data: “Team is working on ▶ Good practice:
▶ 100% rule: product XYZ” Progressive Elaboration =
o WBS = Σ work packages ▶ Info: “Product XYZ is not Rolling Wave Planning
o WBS = Σ control accounts included in any work
▶ WBS Dictionary package, so this is a scope
▶ Scope Baseline variance”
 S C H E D U L E M A N A G E ME N T

PROFESSIONAL
MANAGE ACTIVITIES MANAGE BASELINE TERMINOLOGY
PROJECT MANAGERS
▶ They visualize what to do ▶ 6.1 Plan Schedule Management ▶ 6.6 Develop Schedule ▶ Activity Attributes
▶ Today? This week? This ▶ Schedule Management Plan ▶ Model Schedule: ▶ Milestones
month? At the end? o Critical Path Method ▶ Dependencies: Hard/Soft Logic
▶ 6.2 Define Activities o Critical Chain Method ▶ Project Network Diagram
▶ to finish on time ▶ Activity = Start-Finish ▶ Meet Constraints: ▶ Duration Estimates
▶ Decompose into ACTIVITIES o Fast-tracking (risk) ▶ 3-point dates: Optimistic
▶ Set a schedule baseline ▶ 6.3 Sequence Activities o Crashing (cost) /Pessimistic/Most Likely
▶ 3 couple of dates: ▶ Logical dependencies: FS, SS, FF o Levelling (time) ▶ Committed dates: Baseline
o Baseline Start-Finish o Hard logic (mandatory) ▶ Set Schedule Baseline Start/Finish
o Start-Finish o Soft logic (preferred) ▶ Represent Gantt Chart ▶ Real dates: Actual Start/Finish
o Actual Start-Finish ▶ Project Network Diagram ▶ My best estimate: Start/Finish
▶ %Complete = ▶ 6.6 Control Schedule ▶ Critical/Near-Critical Path
Actual Duration / Duration ▶ 6.4 Estimate Activity Durations ▶ Status Dates ▶ Free/Total Slack, Float
▶ On each project review: ▶ Estimation techniques: ▶ Status Reports ▶ Schedule Constraint
o Measure & Adjust o Analogous: order of ▶ Measure & Adjust ▶ Project/Resource Calendars
o Ask Steering Committee: magnitude ▶ Data: “Activity completion ▶ Scheduling Methods: CPM /
What do we do? o Parametric: formula date April the 3rd” Critical Chain / PERT
o 3-point estimate: quantify risk ▶ Info: “2-week delay ▶ Schedule
o Bottom up: knowledge forecast” ▶ Gantt Chart
 CO S T MA N A G E M E N T

PROFESSIONAL
ACTIVITY MANAGEMENT BASELINE MANAGEMENT TERMINOLOGY
PROJECT MANAGERS
▶ They are accountable on ▶ 7.1 Plan Cost Management ▶ 7.3 Determine Budget ▶ BAC: Budget At Completion
▶ Cost Variance ▶ Cost Management Plan ▶ Basis of Estimates ▶ Project Budget
actual vs. forecast ▶ EV Measurement Methods: ▶ Cost aggregation ▶ Contingency Reserve
▶ Financial Benefit o Percent Complete ▶ Funding limit reconciliation ▶ Management Reserve
actual vs. forecast o Fixed Formula (0/100-25/75- ▶ Contingency Reserve ▶ PV: Planned Value = BCWS
▶ Financial WIP 50/50) ▶ Management Reserve ▶ EV: Earned Value = BCWP
actual vs. forecast o Weighted Milestones ▶ Cost Baseline ▶ AC: Actual Cost = ACWP
o Physical Measurement ▶ Funding Requirements ▶ CV: Cost Variance
▶ to finish on budget o Apportioned Effort ▶ CPI: Cost Performance Index
▶ Control work packages o Level Of Effort ▶ 7.4 Control Costs ▶ ETC: Estimate To Complete
performance: ▶ Earned Value Management ▶ EAC: Estimate At Completion
o Budget ▶ 7.2 Estimate Cost ▶ Earned Schedule ▶ VAC: Variance At Completion
o Cost Baseline ▶ Uncertainty Cone ▶ TCPI: To-Complete ▶ TCPI: To Complete Performance Index
o PV, EV, AC ▶ People: Direct vs. indirect costs Performance Index ▶ WIP: Work In Progress
o Funding, expenses, ▶ Physical: equipment, materials, ▶ Cash Flow / Financial Margin ▶ SV: Schedule Variance
reserves, costs installations, infrastructure ▶ WIP: Work In Progress ▶ SPI: Schedule Performance Index
▶ On each review: ▶ Estimation techniques: ▶ Status Dates, Status Reports ▶ TEAC: Time Estimate At Completion
o Measure & Adjust o Analogous: expert judgement ▶ Measure & Adjust ▶ ES: Earned Schedule
o Ask Steering o Parametric: historical data ▶ Data: “submitted hours” ▶ SV(t): Schedule Variance time
Committee: What o 3-point estimate: quantify risk ▶ Info: “bad news: variance at ▶ SPI(t): Schedule Performance Index time
do we do? o Bottom up: detailed knowledge completion & positive WIP” ▶ DSO: Days Sales Outstanding
 Q U A L I T Y A N D P RO CU RE M E N T MA N A G E M E N T

PLANNING EXECUTION CONTROL TERMINOLOGY

▶ 8.1 Plan Quality ▶ 8.2 Manage Quality ▶ 8.3 Control Quality ▶ Quality ≠ Grade
▶ Quality as user perceives ▶ Audit Processes ▶ Inspect Products (sampling) ▶ Precise ≠ Accurate
▶ Planning over Inspection ▶ Continuous Improvement ▶ Verified deliverables ▶ Standard ≠ Regulation
▶ Cost Benefit analysis ▶ Find root causes (Ishikawa, ▶ Control Charts ▶ Control Chart
▶ Cost of Quality 5 Whys) o Track Special Causes o UCL: Upper Control Limit
o Conformance: (outliers, rule of 7, etc.) o LCL: Lower Control Limit
Prevention + Appraisal ▶ 8.2 Conduct Procurement o Not Common Causes o Special (assignable) cause
o Non-Conformance: ▶ Proposal evaluations ▶ Pareto (identify major causes) o Common cause
Internal + External ▶ Bidder conferences ▶ Data: High number of escaped ▶ Process is under control if:
▶ Seven Basic Tools of Quality ▶ Contracts (⊂ agreements) defects o 99% outcomes within limits
o Cause & Effect Diagram o FP, FPEPA, FPIF ▶ Info: Trend chart shows low o 𝐿𝐶𝐿, 𝑈𝐶𝐿 ⊂
o Flowchart o T&M performance of Testing Team o 𝜇 − 3𝜎, 𝜇 + 3𝜎
o Check Sheet o CPFF, CPAF, CPIF
o Pareto Diagram ▶ FPIF ▶ 13.4 Control Procurement ▶ SOW: Statement Of Work
o Histogram o Target Cost, Target Fee, ▶ Accept deliverables ▶ RFP: Request for Proposal
o Control Chart Sharing Ratio, Ceiling Price, ▶ Inspections, audits ▶ RFQ: Request for Quotation
o Scatter Diagram PTA ▶ Procurement documentation ▶ RFI: Request for Information
o Actual Cost, Actual Fee, ▶ Claims and contract ▶ IFB: Invitation for Bid
▶ 12.1 Plan Procurement Actual Price administration ▶ FFP: Firm Fixed Price
▶ Make or buy decisions ▶ CPIF ▶ Directed vs. constructive ▶ FPIF: Fixed Price Plus Incentive
▶ Procurement SOWs o Target Cost, Target-Min- changes Fee
▶ Procurement documents Max Fee, Sharing Ratio ▶ Contract Terminations ▶ PTA: Point of Total Assumption
(RFP, RFQ, RFI, IFB) o Actual Cost, Actual Fee, o Mutual Agreement ▶ T&M: Time and Material
▶ Is scope clear? Actual Price o Cause or Defect ▶ CPFF: Cost Reimbursable Plus
o Yes: Fixed Price contract ▶ Agile Contracts o Convenience Fixed Fee
o No: Cost Reimbursable o Small Proc. SOWs ▶ Dispute resolutions ▶ CPAF: Cost Reimbursable Plus
▶ Is performance measurable? o Alistair Cockburn o Negotiated agreement Award Fee
o Yes: Incentive Fee contract o Money for Nothing & o Escalation, Mediation, ▶ CPIF: Cost Reimbursable Plus
o No: Fixed Fee contract Change for Free Arbitration, Litigation Incentive Fee
 R ES OU RC E M A N A G E ME N T

PROFESSIONAL
PLANNING EXECUTION TERMINOLOGY
PROJECT MANAGERS

▶ They manage People ▶ 9.1 Plan Resource ▶ 9.3 Acquire Resources ▶ Interpersonal Skills
▶ Recruit team members Management ▶ Expert Judgement ▶ Resource Management Plan
▶ Leading & Team Building ▶ Project needs ▶ Assignations ▶ Team Charter
▶ Performance Appraisals ▶ Availability ▶ Resource Calendars ▶ RBS (Resource Breakdown
▶ Motivation Theories Structure)
▶ and Physical Resources ▶ Staffing Management ▶ 9.4 Develop Team (~ ”carrot”) ▶ RAM (Responsibility
▶ Equipment Plan ▶ Individual Performance Assignation Matrix):
▶ Materials ▶ Training o RACI (Responsible,
▶ Installations ▶ 9.2 Estimate Activity ▶ Virtual / Remote Accountable, Consulted,
▶ Infrastructure Resources ▶ Team building (Tuckman ladder) Informed)
▶ Work Packages / ▶ Situational Adapted Leadership ▶ OBS (Organizational
Activities / Assignments Breakdown Structure)
▶ Resource Constraints ▶ 9.5 Manage Team (~ “stick”) ▶ PMIS (Project Management
▶ Resource Requirements: ▶ Performance Reports Information System)
o 2 plumbers at 50% ▶ Change Requests ▶ FTE (Full Time Equivalent)
o 3 electricians full-time ▶ Team Performance
o 250 programmer
hours
o 3 software licenses CONTROL
o 4 laptops
o 100 meters of wire ▶ 9.6 Control Resources
o 4 train tickets ▶ Problem solving
▶ Change Requests
▶ Data: “didn’t attend the meeting”
▶ Info: “no longer works as a team”
 CO M MU N I C ATI O N S A N D S TA K E H O LD E R M A N A G E M EN T

INITIATING / PLANNING EXECUTION MONITORING TERMINOLOGY

▶ 13.1 Identify Stakeholders ▶ 10.2 Manage ▶ 10.3 Monitor ▶ Interpersonal skills

▶ Who to engage? Communications Communications ▶ Communication model
▶ Meet their expectations ▶ Elaborate documents, ▶ Is communication (sender, receiver, message)
present, inform, report, effective? ▶ Communication method
▶ 10.1 Plan Communications receive feedback ▶ Corrective / preventive (pull, push, interactive)
▶ Communication actions ▶ Communication channels
requirements ▶ 13.3 Manage Stakeholder ▶ Data: “She hasn’t read ▶ Communications Plan
Engagement this report”
▶ 13.2 Plan Stakeholder ▶ Manage expectations, ▶ Info: “She ignores the ▶ Stakeholder
Engagement conflicts, issues project status” ▶ Power/Interest grid
▶ Engagement Levels: ▶ Win-win negotiation ▶ Stakeholder Engagement
o Unaware ▶ 13.4 Monitor Stakeholder Assessment Matrix
o Resistant Engagement ▶ Stakeholder Engagement
o Neutral ▶ Is engagement effective? Plan
o Supportive ▶ Corrective / preventive ▶ Stakeholder register
o Leading actions ▶ Issue log
▶ Data: “She no longer
answers emails”
▶ Info: “She has moved
from leading to neutral”
 R ISKS , IS SUE S, AS SUM PT IO NS

PROFESSIONAL
PLANNING EXECUTION / CONTROL TERMINOLOGY
PROJECT MANAGERS

▶ Do I have the right to believe? ▶ 11.1 Plan Risk Management ▶ 11.6 Implement Risk ▶ Uncertainty
▶ Yes → Estimate ▶ Risk Management Plan Responses o Threat/Opportunity
▶ No → Manage Uncertainty ▶ Risk Breakdown Structure ▶ Update Issue log o Business/Pure Risk
▶ Attitude of a Project ▶ Update Risk Register o Secondary/Residual
Professional ▶ 11.2 Identify Risks o Update status: ▶ Project Documents
▶ Create Risk Register o Watch list o Risk register
▶ Issue ≠ Risk o OPA & Expert Judgement o Open o Assumption log
▶ Risk = Materialized Issue o Causal analysis o Closed o Issue log
▶ Manage with Issue Log o Risk Owners o Update: ▶ Qualitative Risk Analysis
o Fix when it happens o Dates o Severity
o Definitive solution ▶ 11.3 Qualitative Analysis o Comments o Probability and Impact
o Temporary solution ▶ Prioritize Risk Register o Conclusions Matrix
(workaround) o Qualify = high, medium, low ▶ Quantitative Risk Analysis
o Severity = Importance = ▶ 11.7 Monitor Risks o Contingency Reserve
▶ Assumption ≠ Risk o Probability x Impact ▶ Update Assumption log o Management Reserve
▶ Not under control of PM ▶ Update Risk Register o Probability Function
▶ Manage with Assumption Log ▶ 11.4 Quantitative Analysis o New threats and o Monte Carlo Simulation
o If they don’t know then ▶ Size of uncertainty window opportunities o Expected Monetary Value
take assumptions ▶ Probability and reserves o Residual risks o Decision Tree
o Are they still valid? o Secondary risks ▶ Respond Threats: Accept,
▶ 11.5 Plan Risk Responses o Update: Avoid, Contain, Mitigate,
▶ Manage Risks ▶ Threats: Accept, Avoid, Contain, o Responses Transfer, Escalate
▶ Obliged to respond to them Mitigate, Transfer o Mitigation actions ▶ Respond Opportunities:
▶ Manage with Risk Register ▶ Opportunities: Accept, Exploit, o Contingency Accept, Exploit, Enhance,
o Threats and Opportunities Enhance, Share actions Share, Escalate