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CHAPTER ONE

INTRODUCTION
SOURCE: PMBOK GUIDE

Dr. Raymond Fraig 002-0100-3989-333

PMP, PMI-RMP, PhD raymond_fraig@hotmail.com
 Contents
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 Overview

 PMBOK Guide

 What is a Project ?

 Business Value of a Project

 Project Management

 Project, Program, Portfolio and Operations Management

 Organizational Project Management

 Project Life Cycles

 Contents
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 Project Management Processes

 Project Management Process Groups

 Project Management Knowledge Areas

 Project Management Data and Information

 Tailoring Concept

 Project Business Documents

 Project Charter / Project Management Plan

 Sample Questions
 Overview
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 Project Management is NOT new, it has been in use for many years

 Examples : Giza pyramids , Great wall of China , Jet airplanes, Book

publication, Software applications, medication development and others
 Overview
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 The outcomes of these projects were the results of leaders and

managers applying project management practices, principles,
processes, tools and techniques.

 By the mid -20th century, PMs began to seek recognition for project
management as a profession.

 The Project Management Institute was initiated and produced a

body of knowledge (BOK) with a baseline of charts and glossaries.

 Project managers realized soon that NO single book could contain

the entire PM knowledge . Therefore , PMI published “ A Guide to
Project Management Body of knowledge (PMBOK®)
 PMBOK® guide
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 PMBOK ® describes the knowledge within the Project Management

profession with proven traditional and innovative practices.

 It is generally recognized ; knowledge and practices are applicable to

most projects most of the time , there is a general agreement on its
value and usefulness for enhancing the chance of project success.

 It is not a methodology , but project managers

may use one or more methodologies to tailor this

standard to the specific needs of their project (s).

 What is a PROJECT ?
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A project is a temporary endeavor undertaken to create a unique

product , service or result.

Temporary
 Has a definite beginning and end , not an ongoing effort

 Temporary does not mean a short duration

 The end is reached when the project objectives have been achieved or the
project is terminated

 Termination reasons: objectives can not be met, no available resources ,

the project is no longer needed, financial problem or for legal cause
 What is a PROJECT ?
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Unique
 Projects produces deliverables to fulfill objectives

 A deliverable : any unique and verifiable product, result or capability to

perform service.

 Even in repetitive elements ; the fundamental and unique characteristic of a

project are not changed

 A product can be a component of another item or an end item itself; ( a

processor / a computer, Steel works / a building)

 A service (business function supports production / logistics / technical

support)

 A result ( research document that contains a developed knowledge )

 A combination ( production of new medication)

 Business Value of a Project
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 Business value is the net quantifiable benefit (tangible or intangible)

derived from a business endeavor.

 In projects, it refers to the benefits that the results of a project provide

to its stakeholders and/or changes they drive to an organization.
 Project Management
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The application of knowledge, skills, tools and techniques

to project activities to meet the project requirements

Benefits of Project Management

•Meet business objectives / satisfy stakeholders / increase success
•More predictable projects / early response to risks / resolve problems
•Balance the project constraints ( Scope, schedule, cost , quality ... Etc)

Consequences of Poor Project Management

•Missed deadlines (delay) / cost overruns / poor quality / rework
•Unsatisfied stakeholders / loss of reputation / organizational failure
 Project, Program, Portfolio and
Operations Management
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 A PROGRAM :is a group of related projects, subsidiary programs and

program activities managed in a coordinated manner to obtain
benefits not available from managing them individually

 A PORTFOLIO : is projects, programs , subsidiary portfolios and

operations managed as a group to achieve strategic business
objectives

 Program and Project management focus on doing programs and

projects in the right way , while Portfolio management focuses on
doing the right programs and projects
 Project, Program, Portfolio and
Operations Management
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 Operations Management
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 Operations Management is an area that is outside the scope of Project

Management , it concerns with ongoing production of services and goods.

 Changes in business or organizational operations may be the focus of a

project.

 Projects can intersect with operation at:

 Developing a new product

 upgrading existing product

 Improving operation processes

 At the end of product life cycle

 At each closeout phase

 Organizational Project Management
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 The purpose of OPM is to ensure that the organization undertakes the

right projects ,allocates resources appropriately and ensure that all
levels in the organization understand and support the strategic vision
and objectives.
 Project Life Cycles
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 A Project Life Cycle : is a series of phases that a project passes

through from its start to completion

 It provides the basic framework for managing the project regardless

of the specific work involved

 A Project Phase : is a collection of logically related project activities

that culminates in the completion of one or more project deliverables

 Project phases are established based on ; management needs ,

project nature , project elements ( technical, business , legal ....etc)

 A Phase Gate : is held at the end of a phase to check the project

progress and performance (exit criteria)
 Project Life Cycles
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• Project scope, time and cost are determined in

Predictive the early project phases
• Waterfall life cycles

• The project scope is generally determined

early
Iterative • Time and cost estimates are routinely
elaborated throughout the project

• The deliverable is produced through a series

of iterations
Incremental • Each iteration adds functionality to the
deliverable

Adaptive • Iterative and incremental (change driven )

• Hybrid when mixed with another lifecycle (OS)
(Agile)
 Project Management Processes
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 The project life cycle is managed by executing a series of PM

activities known as “ Project Management Processes”

 Every PM process produces one or more outputs from one or more

inputs using tools and techniques

 PM processes are linked by the outputs (outcomes/ deliverables) they

produce; an output may be an input to another process or a
deliverable

 PM processes may be iterative (Progressively Elaborated)

 They are tailored based on the project needs.

 PM Process Groups
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 A Process Group : is a logical grouping of PM processes to achieve

specific project objectives

• To define a new project / phase by obtaining

Initiating authorization

• To establish scope, define objectives and the

Planning course of action to attain them

• To complete the work defined in the project

Executing management plan to satisfy requirements

Monitoring & • To track, review and regulate the progress and

Controlling performance and to initiate the required changes

Closing • To formally complete a project, phase or contract

 PM Knowledge Areas
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 A Knowledge Area : is an ➢ Integration management

identified area of project ➢ Scope management
management defined by its
➢ Schedule management
knowledge requirements and
➢ Cost management
described it terms of
processes and ITTOs ➢ Quality management

➢ Resource management

➢ Communications management

➢ Risk management

➢ Procurement management

➢ Stakeholder management
 PM Data & Information
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WP WP WP
Data Information Reports
• Execution • Controlling • Overall Control
• Raw observations • Performance data, • Physical or
• Raw collected, analyzed electronic
measurements (CPI / SPI ...) representation of
• Quality • Deliverable status WPI
measurements (completed, • Status reports
• Start/ finish dates verified, validated) • Dashboards
• Actual costs/ • Change status ( • Updates
durations accepted, rejected) • Recommendations
• Recorded in PMIS • Forecasts
 PM Data & Information
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 Tailoring Concept
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 The PMBOK® guide is a recommended reference for TAILORING

 The knowledge should not be applied uniformly to all projects

 Specific methodology are outside the scope of the guide, it may be;
 Developed by organization , purchased from vendors

 obtained from professional associations or governmental agencies

 The appropriate project management processes , ITTOs and life cycle

phases should be selected to manage the project ; this selection is
known as TAILORING PM to the project
 PM Business Documents
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 The project sponsor is accountable for the development of business

case documents ; The project manager is responsible for providing
means to keep the project business case , charter and management
plan along with goals and objectives

1. Business case

2. Benefits Management Plan

3. Project charter

4. Project management plan

 PM Business Documents
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Business Case
 A documented economic
feasibility study used to
establish the validity of the
benefits of a selected
component to obtain
authorization for further
project management activities
✓ Business needs ( business
problem, scope , value)
✓ Situation analysis ( strategies ,
RCA, risks, success factors )
✓ Recommendations (how , when ,
who ...)
Benefits Management Plan
 A documented explanation
defining the processes for
creating, maximizing and
sustaining the benefits
provided by the project
✓ Target benefits ( NPV, timeframe)
✓ Strategic alignment
✓ Benefits owner
✓ Metrics
✓ Assumptions
✓ Risks
 Charter/ Project Management Plan
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Project Charter
 A document issued by the
project sponsor to formally
authorizes the existence of a
project and provides the PM
the authority to apply
resources to project activities
✓ Initial scope
✓ Initial budget / schedule
✓ Main stakeholders
✓ Sponsor approval
Project Management Plan
 The document that describes
how the project will be
executed , monitored ,
controlled and closed.
✓ 12 Subsidiary plans ( scope,
schedule, cost , risk ...)
✓ 3 Baselines (scope , schedule
and cost )
✓ Progressively detailed
 Q&A
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A project is:

A. A set of sequential activities performed in a process or system.

B. A revenue-generating activity that needs to be accomplished while

achieving customer satisfaction.

C. An ongoing endeavor undertaken to meet customer or market

requirements.

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

result.

Answer: D
 Q&A
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Project management is:

A. The integration of the critical path method and the Earned Value
Management system.

B. The application of knowledge, skills, tools, and techniques to project

activities to meet the project requirements.

C. The application of knowledge, skills, wisdom, science, and art to

organizational activities to achieve operational excellence.

D. A subset of most engineering and other technical disciplines.

Answer: B
 Q&A
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Portfolio management refers to:

A. Managing various contents of the project file.

B. Managing the levels of financial authority to facilitate project completion

C. project decision making

D. The centralized management of one or more portfolios to achieve strategic

objectives.

Answer: D
 Q&A
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All of the following are questions that the key stakeholders and project
managers should answer to develop the project success measures
EXCEPT:

A. What does success look like for the project?

B. How will success be measured?

C. What are the communication requirements?

D. What factors may impact success?

Answer: C
 Q&A
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A program is a:

A. Group of related tasks lasting one year or less.

B. Group of related projects, subsidiary programs, and program activities

managed in a coordinated manner.

C. Large projects with significant cost and resource requirements.

D. Sequence of activities constituting a major project.

Answer: B
 Q&A
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All of the following are true about projects and operations EXCEPT:
A. Operations are ongoing endeavors that produce repetitive outputs, with
resources assigned to do basically the same set of tasks according to the
standards of a product life cycle, whereas projects are temporary endeavors.
B. Projects require project management activities and skill sets, whereas
operations require business operations management activities and skill sets.
C. Projects can intersect with operations at various points during the product life
cycle. At each point, deliverables and knowledge are transferred between the
project and operations for implementation of the delivered work.
D. Because of their temporary nature, projects cannot help achieve an
organization’s long-term goals. Therefore, strategic activities in the
organization can be generally addressed within the organization's normal
operations.

Answer: D
 Q&A
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Your job responsibility is to align components (projects, programs, or

related operations) to the organizational strategy, organized into
portfolios or subsidiary portfolios to optimize project or program
objectives, dependencies, costs, timelines, benefits, resources, and
risks. This is known as:
A. Components management.

B. Process management.

C. Program management.

D. Portfolio management.

Answer: D
 Q&A
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The PMBOK® Guide is the standard for:

A. Managing all projects all of the time.

B. Managing all projects most of the time.

C. Managing most projects most of the time.

D. Managing some projects some of the time.

Answer: C
 Q&A
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The collection of generally sequential and sometimes overlapping project

phases, whose name and number are determined by the management
and control needs of the organization or organizations involved in the
project, is known as the:
A. Project waterfall.

B. Project life cycle.

C. Project life stages.

D. Project Management Process Groups .

Answer: B
 Q&A
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All of the following are true about project phases and the project life cycle
EXCEPT:
A. Stakeholder influences, risk, and uncertainty are greatest at the start of the
project. These factors decrease over the life of the project.

B. The ability to influence the final characteristics of the project's product, without
significantly impacting cost, is highest at the start of the project and
decreases as the project progresses toward completion.

C. The cost of changes and correcting errors typically increases substantially as

the project approaches completion.

D. Cost and staffing levels are generally steady throughout the project life cycle .

Answer: D
 Q&A
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All of the following statements about the project life cycle and the product
life cycle are true EXCEPT:
A. In the project predictive life cycle, the project scope ,time and cost are
determined as early in the project life cycle as practically possible.

B. In the project iterative and incremental life cycles, project phases intentionally
repeat one or more project activities as the project team’s understanding of
the product increases.

C. The product life cycle is the series of phases that represent the evolution of a
product, from concept through delivery, growth, maturity, and to retirement

D. The product life cycle is contained within the project life cycle.

Answer: D
 Q&A
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You are managing a project in which you intend to respond to high levels
of change and ongoing stakeholder involvement. The most suitable
project life cycle for your project is the:
A. Predictive life cycle.

B. Adaptive life cycle.

C. Waterfall life cycle.

D. Configuration management life cycle.

Answer: B
 Q&A
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The five Project Management Process Groups are:

A. Planning, Checking, Directing, Monitoring, and Recording.

B. Initiating, Planning, Executing, Monitoring and Controlling, and Closing.

C. Planning, Executing, Directing, Closing, and Commissioning.

D. Initiating, Executing, Monitoring, Evaluating, and Closing.

Answer: B
 Q&A
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Project Management Processes:

A. May be overlapping activities that occur throughout the project.

B. May be overlapping activities that generally occur at the same level of

intensity within each phase of the project.

C. Are generally discrete, one-time events.

D. Are discrete, repetitive events that occur generally at the same level of
intensity throughout each phase of the project.

Answer: A
 Q&A
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The linkages between project management processes are best described

by the following

A. The work breakdown structure links processes.

B. Processes are linked by their planned objectives; the summary objective of

one often becomes the detailed action plan for another within the project.

C. Processes are linked by the outputs that are produced ,the output of one
process generally becomes an input to another process or a deliverable.

D. There are no significant links between discrete processes.

Answer: C
 Q&A
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For a project to be successful, the project should generally achieve all of

the following EXCEPT:

A. Achieving stakeholder satisfaction.

B. Striving to obtain acceptable customer/end-user adoption.

C. Appling knowledge, skills, and processes within the Project Management

Process Groups uniformly to meet the project objectives.

D. Fulfilling other agreed-upon success measures or criteria.

Answer: C
 Q&A
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The project business case is all of the following EXCEPT:

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.

B. A document that lists the objectives and reasons for project initiation.

C. A document that serves as an important input to the project initiation and is

seldom used after the project is approved.

D. An important document that may result in a go/no- go decision for the project.

Answer: C
 Q&A
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The key elements of the benefits management plan are all of the following
EXCEPT:

A. Work Breakdown Structure.

B. Benefits owner.

C. Assumptions.

D. Strategic alignment .

Answer: A
 Q&A
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A significant amount of data is collected and analyzed throughout the

project. All of the following are examples of project data and information
EXCEPT:

A. Work performance data.

B. Work performance analysis.

C. Work performance information.

D. Work performance reports.

Answer: B
 Q&A
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Project tailoring is an important consideration for most projects. Which of

the following is the least likely project consideration?

A. Project manager’s skills and competency.

B. Each project is unique.

C. Addressing competing constraints.

D. Level of project governance varies.

Answer: A
 Questions ?
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