OVERVIEW AND PURPOSE OF THIS

GUIDE

 PMI defines the project management body of knowledge (PMBOK) as a term

that describes the knowledge within the profession of project management. The
project management body of knowledge includes proven traditional practices
that are widely applied as well as innovative practices that are emerging in the
profession.
 OVERVIEW AND PURPOSE OF THIS
GUIDE

 ThisPMBOK® Guide identifies a subset of the project management body of

knowledge that is generally recognized as good practice.
 Generally recognized means the knowledge and practices described are
applicable to most projects most of the time, and there is consensus about their
value and usefulness.
 Good practice means there is general agreement that the application of the
knowledge, skills, tools, and techniques to project management processes can
enhance the chance of success over many projects in delivering the expected
business values and results.
 THE STANDARD FOR PROJECT MANAGEMENT

 the standard identifies the processes that are considered good practices on most
projects, most of the time. The standard also identifies the inputs and outputs
that are usually associated with those processes.
 The Standard for Project Management is a foundational reference for PMI’s
project management professional development programs and the practice of
project management
 CODE OF ETHICS AND PROFESSIONAL CONDUCT

 Thevalues that the global project management community defined as most

important were responsibility, respect, fairness, and honesty. The Code of Ethics
and Professional Conduct affirms these four values as its foundation.
 Project

 A project is a temporary endeavor undertaken to create a unique product,

service, or result.
 Unique product, service, or result. Projects are undertaken to fulfill objectives
by producing deliverables. An objecti+ve 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
 Project

 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);
 A unique service or a capability to perform a service (e.g., a business function that
supports production or distribution);
 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
 A unique combination of one or more products, services, or results (e.g., a software
 Project

 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. The end of the project 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 un The project is terminated for legal cause or
convenience.
 Project

 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. The end of the project 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 un The project is terminated for legal cause or
convenience.
 Project

 Projects drive change.

Projects drive change in organizations. 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 (see Figure 1-1). Before the project begins, the
organization is commonly referred to as being in the current state. The desired
result of the change driven by the project is described as the future state
 Project - Business value

 Projects enable business value creation. PMI defines business value as the net
quantifiable benefit derived from a business endeavor. The benefit may be
tangible, intangible, or both. In business analysis, business value is considered
the return, in the form of elements such as time, money, goods, or intangibles in
return for something
 Project - Business value in projects

 Examples of tangible elements include:

o Monetary assets,
o Stockholder equity,
o Utility,
o Fixtures,
o Tools, and
o Market share.
 Examples of intangible elements include:
o Goodwill,
o Brand recognition,
o Public benefit,
o Trademarks,
o Strategic alignment, and
 Project Initiation Context

 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
1. Meet regulatory, legal, or social requirements;
2. Satisfy stakeholder requests or needs;
3. Implement or change business or technological strategies; and
4. Create, improve, or fix products, processes, or services
 Project management

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

 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
 Project management

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
 Project management

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
 Comparative Overview of Portfolios, Programs, and
Projects
 A project is a temporary endeavor undertaken to create a unique product,
service, or result.
 A program is a group of related projects, subsidiary programs, and program
activities that are managed in a coordinated manner to obtain benefits not
available from managing them individually.
 A portfolio is a collection of projects, programs, subsidiary portfolios, and
operations managed as a group to achieve strategic objectives
 Program management

 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 program components individually.
 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.
 Program management focuses on the interdependencies between projects and
between projects and the program level to determine the optimal approach for
managing them.
 Program management

Actions related to these program and project-level interdependencies may include:

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

 PORTFOLIO MANAGEMENT A portfolio is defined as projects, programs, subsidiary portfolios, and

operations managed as a group to achieve strategic objectives.
 Portfolio management 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.
The aim of portfolio management is to:
1. Guide organizational investment decisions.
2. Select the optimal mix of programs and projects to meet strategic objectives.
3. Provide decision-making transparency.
4. Prioritize team and physical resource allocation.
5. Increase the likelihood of realizing the desired return on investment.
 Operations management

 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)
 Operations management

 Projects can intersect with operations at various points during the product life
cycle, such as;
1. When developing a new product, upgrading a product, or expanding outputs;
2. While improving operations or the product development process;
3. At the end of the product life cycle; and
4. At each closeout phase
 ORGANIZATIONAL PROJECT MANAGEMENT (OPM)
AND STRATEGIES
 OPM is defined as a framework in which portfolio, program, and project management
are integrated with organizational enablers in order to achieve strategic objectives.
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.
 PROJECT AND DEVELOPMENT LIFE CYCLES

 A project life cycle 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 the generic life
cycle
 Project life cycles can be predictive or adaptive. 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. Development
life cycles can be predictive, iterative, incremental, adaptive, or a hybrid model:
 PROJECT AND DEVELOPMENT LIFE CYCLES

 In a predictive life cycle, 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.
 In an iterative life cycle, 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.
 In an incremental life cycle, 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.
 Adaptive life cycles 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. See Appendix X3.
 A hybrid life cycle 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.
 project phase

 A project phase 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.
Attributes may include but are not limited to:
1. Name (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal phase),
2. Number (e.g., three phases in the project, five phases in the project),
3. Duration (e.g., 1 week, 1 month, 1 quarter),
4. Resource requirements (e.g., people, buildings, equipment),
5. Entrance criteria for a project to move into that phase (e.g., specified approvals documented, specified
documents completed), and
6. Exit criteria for a project to complete a phase (e.g., documented approvals, completed documents,
 project phase

 The project phases may be established based on various factors including, but
not limited to:
1. Management needs;
2. Nature of the project;
3. Unique characteristics of the organization, industry, or technology;
4. Project elements including, but not limited to, technology, engineering,
business, process, or legal; and
5. Decision points (e.g., funding, project go/no-go, and milestone review).
 project phase

 The project phases may be established based on various factors including, but
not limited to:
1. Management needs;
2. Nature of the project;
3. Unique characteristics of the organization, industry, or technology;
4. Project elements including, but not limited to, technology, engineering,
business, process, or legal; and
5. Decision points (e.g., funding, project go/no-go, and milestone review).
 phase gate

A phase gate, is held at the end of a phase.

The project’s performance and progress are compared to project and business
documents including but not limited to:
1. Project business case (see Section 1.2.6.1),
2. Project charter (see Section 4.1),
3. Project management plan (see Section 4.2), and
4. Benefits management plan (see Section 1.2.6.2).
 phase gate

A decision (e.g., go/no-go decision) is made as a result of this comparison to:

1. Continue to the next phase,
2. Continue to the next phase with modification,
3. End the project,
4. Remain in the phase, or phase gate Repeat the phase or elements of it
 project management processes

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 project management tools and techniques.
 The output can be a deliverable or an outcome. Outcomes are an end result of a process.
Project management processes apply globally across industries.
 Project management processes 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:
1. An input to another process, or
 project management processes

The number of process iterations and interactions between processes varies based on the
needs of the project. Processes generally fall into one of three categories:
1. Processes used once or at predefined points in the project. The processes Develop
Project Charter and Close Project or Phase are examples.
2. Processes that are performed periodically as needed. The process Acquire Resources is
performed as resources are needed. The process Conduct Procurements is performed
prior to needing the procured item.
3. Processes that are performed continuously throughout the project. The process Define
Activities may occur throughout the project life cycle, especially if the project uses
rolling wave planning or an adaptive development approach. Many of the monitoring
and control processes are ongoing from the start of the project, until it is closed out.
 project management processes

The number of process iterations and interactions between processes varies based on the
needs of the project. Processes generally fall into one of three categories:
1. Processes used once or at predefined points in the project. The processes Develop
Project Charter and Close Project or Phase are examples.
2. Processes that are performed periodically as needed. The process Acquire Resources is
performed as resources are needed. The process Conduct Procurements is performed
prior to needing the procured item.
3. Processes that are performed continuously throughout the project. The process Define
Activities may occur throughout the project life cycle, especially if the project uses
rolling wave planning or an adaptive development approach. Many of the monitoring
and control processes are ongoing from the start of the project, until it is closed out.
 project management processes Group

A Project Management Process Group is a logical grouping of project management processes to achieve specific
project objectives. Process Groups are independent of project phases.
Project management processes are grouped into the following five Project Management Process Groups:
 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.
 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.
 Executing Process Group. Those processes performed to complete the work defined in the project
management plan to satisfy the project requirements.
 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.
 Closing Process Group. Those processes performed to formally complete or close the project, phase, or contract.
 PROJECT MANAGEMENT KNOWLEDGE AREAS

A Knowledge Area is an identified area of project management defined by its

knowledge requirements and described in terms of its component processes,
practices, inputs, outputs, tools, and techniques.
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.
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.
 PROJECT MANAGEMENT KNOWLEDGE AREAS

 Project Schedule Management. Includes the processes required to manage the

timely completion of the project.
 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.
 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 Resource Management. Includes the processes to identify, acquire, and
manage the resources needed for the successful completion of the project.
 PROJECT MANAGEMENT KNOWLEDGE AREAS

 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.
 Project Risk Management. Includes the processes of conducting risk management planning,
identification, analysis, response planning, response implementation, and monitoring risk on
a project.
 Project Procurement Management. Includes the processes necessary to purchase or acquire
products, services, or results needed from outside the project team.
 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 MANAGEMENT KNOWLEDGE AREAS
 PROJECT MANAGEMENT DATA AND INFORMATION

 PROJECT MANAGEMENT DATA AND INFORMATION Throughout the life cycle of a project, a significant amount of data is
collected, analyzed, and transformed. Project data are collected as a result of various processes and are shared within the project
team. The collected data are analyzed in context, aggregated, and transformed to become project information during various
processes. Information is communicated verbally or stored and distributed in various formats as reports. See Section 4.3 for more
detail on this topic. Project data are regularly collected and analyzed throughout the project life cycle. The following definitions
identify key terminology regarding project data and information :
 Work performance data. The raw observations and measurements identified during activities performed to carry out the
project work. Examples include reported percent of work physically completed, quality and technical performance measures, start
and finish dates of schedule activities, number of change requests, number of defects, actual costs, actual durations, etc. Project
data are usually recorded in a Project Management Information System (PMIS) (see Section 4.3.2.2) and in project documents.
 Work performance information. The performance data collected from various controlling processes, analyzed in context and
integrated based 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. Examples include status reports,
memos, justifications, information notes, electronic dashboards, recommendations, and updates.
 TAILORING

 TAILORING Usually, project managers apply a project management

methodology to their work. A methodology is a system of practices, techniques,
procedures, and rules used by those who work in a discipline. This definition
makes it clear that this guide itself is not a methodology.
 The appropriate project management processes, inputs, tools, techniques,
outputs, and life cycle phases should be selected to manage a project. This
selection activity is known as tailoring project management to the project
 PROJECT MANAGEMENT BUSINESS DOCUMENTS

1. project business case is a documented economic feasibility study used to

establish the 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.
2. project benefits management plan 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.
 Needs assessment

Business needs:
1. Determination of what is prompting the need for action;
2. Situational statement documenting the business problem or opportunity to be
addressed including the value to be delivered to the organization;
3. Identification of stakeholders affected; and
4. Identification of the scope.
 Needs assessment

Analysis of the situation:

1. Identification of organizational strategies, goals, and objectives;
2. Identification of root cause(s) of the problem or main contributors of an opportunity;
3. Gap analysis of capabilities needed for the project versus existing capabilities of the
organization;
4. Identification of known risks;
5. Identification of critical success factors;
6. Identification of decision criteria by which the various courses of action may be
assessed;
 Needs assessment

Recommendation:
1. A statement of the recommended option to pursue in the project;
2. Items to include in the statement may include but are not limited to:
• Analysis results for the potential option;
• Constraints, assumptions, risks, and dependencies for the potential options; and
• Success measures (see Section 1.2.6.4).
1. An implementation approach that may include but is not limited to:
• Milestones,
• Dependencies, and
• Roles and responsibilitie
 Needs assessment

Evaluation:
Statement describing the plan for measuring benefits the project will deliver.
This should include any ongoing operational aspects of the recommended option
beyond initial implementation.
 benefits management plan

The benefits management plan describes key elements of the benefits and may include but is not limited to
documenting the following:
1. Target benefits (e.g., the expected tangible and intangible value to be gained by the implementation of the
project; financial value is expressed as net present value);
2. Strategic alignment (e.g., how well the project benefits align to the business strategies of the organization);
3. Timeframe for realizing benefits (e.g., benefits by phase, short-term, long-term, and ongoing);
4. Benefits owner (e.g., the accountable person to monitor, record, and report realized benefits throughout the
timeframe established in the plan);
5. Metrics (e.g., the measures to be used to show benefits realized, direct measures, and indirect measures);
6. Assumptions (e.g., factors expected to be in place or to be in evidence); and
7. Risks (e.g., risks for realization of benefits).
 PROJECT CHARTER AND PROJECT
MANAGEMENT PLAN

 Theproject charter is defined as a document issued by the project sponsor that

formally authorizes the existence of a project and provides the project manager
with the authority to apply organizational resources to project activities.
 The project management plan is defined as the document that describes how
the project will be executed, monitored, and controlled.
 PROJECT CHARTER AND PROJECT
MANAGEMENT PLAN

 Theproject charter is defined as a document issued by the project sponsor that

formally authorizes the existence of a project and provides the project manager
with the authority to apply organizational resources to project activities.
 The project management plan is defined as the document that describes how
the project will be executed, monitored, and controlled.
Project success may include additional criteria linked to the organizational strategy and to
the delivery of business results. These project objectives may include but are not limited to:
 Completing the project benefits management plan;
 Meeting the agreed-upon financial measures documented in the business case. These
financial measures may include but are not limited to:
1. Net present value (NPV),
2. Return on investment (ROI),
3. Internal rate of return (IRR),
4. Payback period (PBP), and
Project success may include additional criteria linked to the organizational strategy and to
the delivery of business results. These project objectives may include but are not limited to:
 Completing the project benefits management plan;
 Meeting the agreed-upon financial measures documented in the business case. These
financial measures may include but are not limited to:
1. Net present value (NPV),
2. Return on investment (ROI),
3. Internal rate of return (IRR),
4. Payback period (PBP), and