Define the project scope: Clearly define the goals, objectives, and deliverables of the project. Identify the specific activities that will be involved in the event, the timeline, and the budget.

You have been tasked with organizing a community event to raise awareness for a social cause. The event will involve various activities, such as a fundraising walk/run, a charity auction, and a concert featuring local performers. You are in charge of developing a project charter for this event. The project charter will serve as a guide for the entire event, providing direction and clarity on the goals, scope, and expectations of the project. To develop the project charter, you should follow these steps:

Identify the project stakeholders: Identify all stakeholders who will be involved in the project, such as volunteers, sponsors, participants, and attendees. Determine their roles and responsibilities and how they will be involved in the project.

Set project milestones: Define the key milestones and deliverables for the project. Establish checkpoints to assess progress and ensure that the project stays on track.

Determine the project budget: Develop a detailed budget that includes all costs associated with the project, such as venue rental, equipment, marketing, and other expenses. Identify potential sources of funding, such as grants and donations.

Define the project risks: Identify potential risks and develop a risk management plan. Determine the likelihood and impact of each risk and define mitigation strategies.

The material will assist you in writing your paper ( a whole book and the info about project charter are atached. you could read the content related to this essay )

FYI, the content we have covered so far: core project management concepts/project management fundamentals/project environments, the difference between deliverables/delivery cadence/development approach/project life cycles, impact on other project factors, Integration Management, Initialing/planning/executing/monitoring project, stakeholder (stakeholder management, identify stakeholder, plan/manage/monitor stakeholder engagement, project scope, project schedule)

You may include some external books and materials for the essay and write in reference.

Notes: This paper must be formatted in APA Style 7th edition (attached rubric)

Not For Distribution, Sale or Reproduction.ISBN: 978-1-62825-382-5

Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Not Distribution, For Distribution, Not For Not Not For Distribution, Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, For Distribution, For For Distribution, Sale Sale Reproduction.Reproduction.or or Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Sale Sale Sale Sale Sale Distribution, Sale Sale Sale Distribution, Sale Distribution, Sale Sale Distribution, Distribution, Sale Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Sale Distribution, Sale Distribution, Sale Sale Sale Sale Sale Sale Distribution, Sale Distribution, Distribution, Sale Sale Sale Distribution, Sale Distribution, Sale Sale Sale Distribution, Sale Distribution, Distribution, Sale Sale Sale Distribution, Sale Distribution, Distribution, Sale Sale Sale Distribution, Sale Distribution, Distribution, Sale Sale Distribution, Distribution, Distribution, Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.or or or or or Sale or or or or or Reproduction.or Reproduction.Reproduction.or or Reproduction.or Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.INCLUDES: THE STANDARD FOR PROJECT MANAGEMENTANSI/PMI 99-001-2017

A Guide to the PROJECT MANAGEMENT BODY OF KNOWLEDGE(PMBOK® GUIDE)Sixth Edition

ISBN: 978-1-62825-184-5 Published by:Project Management Institute, Inc.14 Campus BoulevardNewtown Square, Pennsylvania 19073-3299 USAPhone: +1 610-356-4600Fax: +1 610-356-4647Email: [email protected]: www.PMI.org©2017 Project Management Institute, Inc. All rights reserved.Project Management Institute, Inc. content is copyright protected by U.S. intellectual property law that is recognized by most countries. To republish or reproduce PMI’s content, you must obtain our permission. Please go to http://www.pmi.org/permissions for details.To place a Trade Order or for pricing information, please contact Independent Publishers Group:Independent Publishers GroupOrder Department814 North Franklin StreetChicago, IL 60610 USAPhone: +1 800-888-4741Fax: +1 312- 337-5985Email: [email protected] (For orders only)For all other inquiries, please contact the PMI Book Service Center.PMI Book Service CenterP.O. Box 932683, Atlanta, GA 31193-2683 USAPhone: 1-866-276-4764 (within the U.S. or Canada) or +1-770-280-4129 (globally)Fax: +1-770-280-4113Email: [email protected] in the United States of America. No part of this work may be reproduced or transmitted in any form or by any means, electronic, manual, photocopying, recording, or by any information storage and retrieval system, without prior written permission of the publisher.The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48—1984).PMI, the PMI logo, PMBOK, OPM3, PMP, CAPM, PgMP, PfMP, PMI-RMP, PMI-SP, PMI-ACP, PMI-PBA, PROJECT MANAGEMENT JOURNAL, PM NETWORK, PMI TODAY, PULSE OF THE PROFESSION and the slogan MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS. are all marks of Project Management Institute, Inc. For a comprehensive list of PMI trademarks, contact the PMI Legal Department. All other trademarks, service marks, trade names, trade dress, product names and logos appearing herein are the property of their respective owners. Any rights not expressly granted herein are reserved.Library of Congress Cataloging-in-Publication DataNames: Project Management Institute, publisher.Title: A guide to the project management body of knowledge (PMBOK guide) / Project Management Institute.Other titles: PMBOK guideDescription: Sixth edition. | Newtown Square, PA: Project Management Institute, 2017. | Series: PMBOK guide | Includes bibliographical references and index. Identiﬁers: LCCN 2017032505 (print) | LCCN 2017035597 (ebook) | ISBN 9781628253900 (ePUP) | ISBN 9781628253917 (kindle) | ISBN 9781628253924 ( Web PDF) | ISBN 9781628251845 (paperback)Subjects: LCSH: Project management. | BISAC: BUSINESS & ECONOMICS / Project Management.Classiﬁcation: LCC HD69.P75 (ebook) | LCC HD69.P75 G845 2017 (print) | DDC 658.4/04–dc23LC record available at https://lccn.loc.gov/201703250510 9 8 7 6 5 4 3 2 1

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��ITABLE OF CONTENTSPART 1. A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide)1. INTRODUCTION ……………………………………………………………………………………………………………11.1 Overview and Purpose of this Guide ……………………………………………………………………..11.1.1 The Standard for Project Management ………………………………………………………21.1.2 Common Vocabulary ………………………………………………………………………………..31.1.3 Code of Ethics and Professional Conduct …………………………………………………..31.2 Foundational Elements ………………………………………………………………………………………..41.2.1 Projects …………………………………………………………………………………………………..41.2.2 The Importance of Project Management …………………………………………………..101.2.3 Relationship of Project, Program, Portfolio, and Operations Management …………………………………………………………………..111.2.4 Components of the Guide ………………………………………………………………………..171.2.5 Tailoring ………………………………………………………………………………………………..281.2.6 Project Management Business Documents ………………………………………………292. THE ENVIRONMENT IN WHICH PROJECTS OPERATE ……………………………………………………….372.1 Overview ………………………………………………………………………………………………………….372.2 Enterprise Environmental Factors……………………………………………………………………….382.2.1 EEFs Internal to the Organization …………………………………………………………….382.2.2 EEFs External to the Organization ……………………………………………………………39

II Table of Contents2.3 Organizational Process Assets …………………………………………………………………………..392.3.1 Processes, Policies, and Procedures ………………………………………………………..402.3.2 Organizational Knowledge Repositories …………………………………………………..412.4 Organizational Systems …………………………………………………………………………………….422.4.1 Overview ……………………………………………………………………………………………….422.4.2 Organizational Governance Frameworks ………………………………………………….432.4.3 Management Elements …………………………………………………………………………..442.4.4 Organizational Structure Types ……………………………………………………………….453. THE ROLE OF THE PROJECT MANAGER…………………………………………………………………………513.1 Overview ………………………………………………………………………………………………………….513.2 Definition of a Project Manager ………………………………………………………………………….523.3 The Project Manager’s Sphere of Influence …………………………………………………………523.3.1 Overview ……………………………………………………………………………………………….523.3.2 The Project…………………………………………………………………………………………….533.3.3 The Organization ……………………………………………………………………………………543.3.4 The Industry ………………………………………………………………………………………….553.3.5 Professional Discipline …………………………………………………………………………..563.3.6 Across Disciplines ………………………………………………………………………………….563.4 Project Manager Competences …………………………………………………………………………..563.4.1 Overview ……………………………………………………………………………………………….563.4.2 Technical Project Management Skills ………………………………………………………583.4.3 Strategic and Business Management Skills ……………………………………………..583.4.4 Leadership Skills ……………………………………………………………………………………603.4.5 Comparison of Leadership and Management ……………………………………………643.5 Performing Integration ………………………………………………………………………………………663.5.1 Performing Integration at the Process Level……………………………………………..673.5.2 Integration at the Cognitive Level …………………………………………………………….673.5.3 Integration at the Context Level ………………………………………………………………673.5.4 Integration and Complexity……………………………………………………………………..68

III4. PROJECT INTEGRATION MANAGEMENT ………………………………………………………………………..694.1 Develop Project Charter …………………………………………………………………………………….754.1.1 Develop Project Charter: Inputs ……………………………………………………………….774.1.2 Develop Project Charter: Tools and Techniques …………………………………………794.1.3 Develop Project Charter: Outputs …………………………………………………………….814.2 Develop Project Management Plan ……………………………………………………………………..824.2.1 Develop Project Management Plan: Inputs ……………………………………………….834.2.2 Develop Project Management Plan: Tools and Techniques …………………………854.2.3 Develop Project Management Plan: Outputs ……………………………………………..864.3 Direct and Manage Project Work ………………………………………………………………………..904.3.1 Direct and Manage Project Work: Inputs ………………………………………………….924.3.2 Direct and Manage Project Work: Tools and Techniques ……………………………944.3.3 Direct and Manage Project Work: Outputs ………………………………………………..954.4 Manage Project Knowledge ……………………………………………………………………………….984.4.1 Manage Project Knowledge: Inputs ………………………………………………………..1004.4.2 Manage Project Knowledge: Tools and Techniques ………………………………….1024.4.3 Manage Project Knowledge: Outputs ……………………………………………………..1044.5 Monitor and Control Project Work …………………………………………………………………….1054.5.1 Monitor and Control Project Work: Inputs ……………………………………………….1074.5.2 Monitor and Control Project Work: Tools and Techniques …………………………1104.5.3 Monitor and Control Project Work: Outputs …………………………………………….1124.6 Perform Integrated Change Control …………………………………………………………………..1134.6.1 Perform Integrated Change Control: Inputs …………………………………………….1164.6.2 Perform Integrated Change Control: Tools and Techniques ………………………1184.6.3 Perform Integrated Change Control: Outputs …………………………………………..1204.7 Close Project or Phase …………………………………………………………………………………….1214.7.1 Close Project or Phase: Inputs ……………………………………………………………….1244.7.2 Close Project or Phase: Tools and Techniques …………………………………………1264.7.3 Close Project or Phase: Outputs …………………………………………………………….127

IV Table of Contents5. PROJECT SCOPE MANAGEMENT ………………………………………………………………………………..1295.1 Plan Scope Management ………………………………………………………………………………….1345.1.1 Plan Scope Management: Inputs ……………………………………………………………1355.1.2 Plan Scope Management: Tools and Techniques ……………………………………..1365.1.3 Plan Scope Management: Outputs …………………………………………………………1375.2 Collect Requirements ………………………………………………………………………………………1385.2.1 Collect Requirements: Inputs ………………………………………………………………..1405.2.2 Collect Requirements: Tools and Techniques ………………………………………….1425.2.3 Collect Requirements: Outputs ………………………………………………………………1475.3 Define Scope …………………………………………………………………………………………………..1505.3.1 Define Scope: Inputs …………………………………………………………………………….1525.3.2 Define Scope: Tools and Techniques ………………………………………………………1535.3.3 Define Scope: Outputs …………………………………………………………………………..1545.4 Create WBS …………………………………………………………………………………………………….1565.4.1 Create WBS: Inputs ………………………………………………………………………………1575.4.2 Create WBS: Tools and Techniques ………………………………………………………..1585.4.3 Create WBS: Outputs …………………………………………………………………………….1615.5 Validate Scope ………………………………………………………………………………………………..1635.5.1 Validate Scope: Inputs ………………………………………………………………………….1655.5.2 Validate Scope: Tools and Techniques ……………………………………………………1665.5.3 Validate Scope: Outputs ………………………………………………………………………..1665.6 Control Scope …………………………………………………………………………………………………1675.6.1 Control Scope: Inputs ……………………………………………………………………………1695.6.2 Control Scope: Tools and Techniques ……………………………………………………..1705.6.3 Control Scope: Outputs …………………………………………………………………………1706. PROJECT SCHEDULE MANAGEMENT…………………………………………………………………………..1736.1 Plan Schedule Management …………………………………………………………………………….1796.1.1 Plan Schedule Management: Inputs ……………………………………………………….1806.1.2 Plan Schedule Management: Tools and Techniques …………………………………1816.1.3 Plan Schedule Management: Outputs …………………………………………………….1816.2 Define Activities ………………………………………………………………………………………………1836.2.1 Define Activities: Inputs ………………………………………………………………………..184

V6.2.2 Define Activities: Tools and Techniques ………………………………………………….1846.2.3 Define Activities: Outputs ……………………………………………………………………..1856.3 Sequence Activities …………………………………………………………………………………………1876.3.1 Sequence Activities: Inputs …………………………………………………………………..1886.3.2 Sequence Activities: Tools and Techniques …………………………………………….1896.3.3 Sequence Activities: Outputs …………………………………………………………………1946.4 Estimate Activity Durations ………………………………………………………………………………1956.4.1 Estimate Activity Durations: Inputs ………………………………………………………..1986.4.2 Estimate Activity Durations: Tools and Techniques ………………………………….2006.4.3 Estimate Activity Durations: Outputs ……………………………………………………..2036.5 Develop Schedule ……………………………………………………………………………………………2056.5.1 Develop Schedule: Inputs ……………………………………………………………………..2076.5.2 Develop Schedule: Tools and Techniques ……………………………………………….2096.5.3 Develop Schedule: Outputs ……………………………………………………………………2176.6 Control Schedule …………………………………………………………………………………………….2226.6.1 Control Schedule: Inputs ……………………………………………………………………….2246.6.2 Control Schedule: Tools and Techniques …………………………………………………2266.6.3 Control Schedule: Outputs …………………………………………………………………….2287. PROJECT COST MANAGEMENT ………………………………………………………………………………….2317.1 Plan Cost Management ……………………………………………………………………………………2357.1.1 Plan Cost Management: Inputs ………………………………………………………………2367.1.2 Plan Cost Management: Tools and Techniques ………………………………………..2377.1.3 Plan Cost Management: Outputs ……………………………………………………………2387.2 Estimate Costs ………………………………………………………………………………………………..2407.2.1 Estimate Costs: Inputs ………………………………………………………………………….2417.2.2 Estimate Costs: Tools and Techniques ……………………………………………………2437.2.3 Estimate Costs: Outputs ………………………………………………………………………..2467.3 Determine Budget ……………………………………………………………………………………………2487.3.1 Determine Budget: Inputs ……………………………………………………………………..2507.3.2 Determine Budget: Tools and Techniques ……………………………………………….2527.3.3 Determine Budget: Outputs……………………………………………………………………254

VI Table of Contents7.4 Control Costs ………………………………………………………………………………………………….2577.4.1 Control Costs: Inputs …………………………………………………………………………….2597.4.2 Control Costs: Tools and Techniques ………………………………………………………2607.4.3 Control Costs: Outputs ………………………………………………………………………….2688. PROJECT QUALITY MANAGEMENT ……………………………………………………………………………..2718.1 Plan Quality Management ………………………………………………………………………………..2778.1.1 Plan Quality Management: Inputs ………………………………………………………….2798.1.2 Plan Quality Management: Tools and Techniques ……………………………………2818.1.3 Plan Quality Management: Outputs ………………………………………………………..2868.2 Manage Quality ……………………………………………………………………………………………….2888.2.1 Manage Quality: Inputs …………………………………………………………………………2908.2.2 Manage Quality: Tools and Techniques …………………………………………………..2928.2.3 Manage Quality: Outputs ……………………………………………………………………….2968.3 Control Quality ………………………………………………………………………………………………..2988.3.1 Control Quality: Inputs ………………………………………………………………………….3008.3.2 Control Quality: Tools and Techniques ……………………………………………………3028.3.3 Control Quality: Outputs ………………………………………………………………………..3059. PROJECT RESOURCE MANAGEMENT ………………………………………………………………………….3079.1 Plan Resource Management …………………………………………………………………………….3129.1.1 Plan Resource Management: Inputs……………………………………………………….3149.1.2 Plan Resource Management: Tools and Techniques …………………………………3159.1.3 Plan Resource Management: Outputs …………………………………………………….3189.2 Estimate Activity Resources …………………………………………………………………………….3209.2.1 Estimate Activity Resources: Inputs ……………………………………………………….3229.2.2 Estimate Activity Resources: Tools and Techniques …………………………………3249.2.3 Estimate Activity Resources: Outputs …………………………………………………….3259.3 Acquire Resources ………………………………………………………………………………………….3289.3.1 Acquire Resources: Inputs …………………………………………………………………….3309.3.2 Acquire Resources: Tools and Techniques ………………………………………………3329.3.3 Acquire Resources: Outputs ………………………………………………………………….333

VII9.4 Develop Team………………………………………………………………………………………………….3369.4.1 Develop Team: Inputs ……………………………………………………………………………3399.4.2 Develop Team: Tools and Techniques ……………………………………………………..3409.4.3 Develop Team: Outputs …………………………………………………………………………3439.5 Manage Team………………………………………………………………………………………………….3459.5.1 Manage Team: Inputs ……………………………………………………………………………3479.5.2 Manage Team: Tools and Techniques ……………………………………………………..3489.5.3 Manage Team: Outputs …………………………………………………………………………3509.6 Control Resources …………………………………………………………………………………………..3529.6.1 Control Resources: Inputs ……………………………………………………………………..3549.6.2 Control Resources: Tools and Techniques ……………………………………………….3569.6.3 Control Resources: Outputs …………………………………………………………………..35710. PROJECT COMMUNICATIONS MANAGEMENT …………………………………………………………….35910.1 Plan Communications Management ………………………………………………………………..36610.1.1 Plan Communications Management: Inputs ………………………………………….36810.1.2 Plan Communications Management: Tools and Techniques ……………………36910.1.3 Plan Communications Management: Outputs ………………………………………..37710.2 Manage Communications ………………………………………………………………………………37910.2.1 Manage Communications: Inputs …………………………………………………………38110.2.2 Manage Communications: Tools and Techniques …………………………………..38310.2.3 Manage Communications: Outputs ………………………………………………………38710.3 Monitor Communications ……………………………………………………………………………….38810.3.1 Monitor Communications: Inputs …………………………………………………………39010.3.2 Monitor Communications: Tools and Techniques …………………………………..39110.3.3 Monitor Communications: Outputs ……………………………………………………….39211. PROJECT RISK MANAGEMENT …………………………………………………………………………………39511.1 Plan Risk Management ………………………………………………………………………………….40111.1.1 Plan Risk Management: Inputs …………………………………………………………….40211.1.2 Plan Risk Management: Tools and Techniques ………………………………………40411.1.3 Plan Risk Management: Outputs ………………………………………………………….405

VIII Table of Contents11.2 Identify Risks ………………………………………………………………………………………………..40911.2.1 Identify Risks: Inputs ………………………………………………………………………….41111.2.2 Identify Risks: Tools and Techniques ……………………………………………………41411.2.3 Identify Risks: Outputs ………………………………………………………………………..41711.3 Perform Qualitative Risk Analysis …………………………………………………………………..41911.3.1 Perform Qualitative Risk Analysis: Inputs ……………………………………………..42111.3.2 Perform Qualitative Risk Analysis: Tools and Techniques ……………………….42211.3.3 Perform Qualitative Risk Analysis: Outputs …………………………………………..42711.4 Perform Quantitative Risk Analysis …………………………………………………………………42811.4.1 Perform Quantitative Risk Analysis: Inputs …………………………………………..43011.4.2 Perform Quantitative Risk Analysis: Tools and Techniques …………………….43111.4.3 Perform Quantitative Risk Analysis: Outputs …………………………………………43611.5 Plan Risk Responses ……………………………………………………………………………………..43711.5.1 Plan Risk Responses: Inputs ……………………………………………………………….43911.5.2 Plan Risk Responses: Tools and Techniques …………………………………………44111.5.3 Plan Risk Responses: Outputs ……………………………………………………………..44711.6 Implement Risk Responses …………………………………………………………………………….44911.6.1 Implement Risk Responses: Inputs ………………………………………………………45011.6.2 Implement Risk Responses: Tools and Techniques ………………………………..45111.6.3 Implement Risk Responses: Outputs…………………………………………………….45111.7 Monitor Risks ………………………………………………………………………………………………..45311.7.1 Monitor Risks: Inputs ………………………………………………………………………….45511.7.2 Monitor Risks: Tools and Techniques ……………………………………………………45611.7.3 Monitor Risks: Outputs ……………………………………………………………………….45712. PROJECT PROCUREMENT MANAGEMENT ………………………………………………………………….45912.1 Plan Procurement Management ……………………………………………………………………..46612.1.1 Plan Procurement Management: Inputs ………………………………………………..46812.1.2 Plan Procurement Management: Tools and Techniques ………………………….47212.1.3 Plan Procurement Management: Outputs ……………………………………………..475

IX12.2 Conduct Procurements …………………………………………………………………………………..48212.2.1 Conduct Procurements: Inputs …………………………………………………………….48412.2.2 Conduct Procurements: Tools and Techniques ………………………………………48712.2.3 Conduct Procurements: Outputs…………………………………………………………..48812.3 Control Procurements ……………………………………………………………………………………49212.3.1 Control Procurements: Inputs ………………………………………………………………49512.3.2 Control Procurements: Tools and Techniques ………………………………………..49712.3.3 Control Procurements: Outputs ……………………………………………………………49913. PROJECT STAKEHOLDER MANAGEMENT …………………………………………………………………..50313.1 Identify Stakeholders …………………………………………………………………………………….50713.1.1 Identify Stakeholders: Inputs ……………………………………………………………….50913.1.2 Identify Stakeholders: Tools and Techniques …………………………………………51113.1.3 Identify Stakeholders: Outputs …………………………………………………………….51413.2 Plan Stakeholder Engagement ………………………………………………………………………..51613.2.1 Plan Stakeholder Engagement: Inputs ………………………………………………….51813.2.2 Plan Stakeholder Engagement: Tools and Techniques ……………………………52013.2.3 Plan Stakeholder Engagement: Outputs ………………………………………………..52213.3 Manage Stakeholder Engagement …………………………………………………………………..52313.3.1 Manage Stakeholder Engagement: Inputs …………………………………………….52513.3.2 Manage Stakeholder Engagement: Tools and Techniques ………………………52613.3.3 Manage Stakeholder Engagement: Outputs …………………………………………..52813.4 Monitor Stakeholder Engagement …………………………………………………………………..53013.4.1 Monitor Stakeholder Engagement: Inputs……………………………………………..53213.4.2 Monitor Stakeholder Engagement: Tools and Techniques ……………………….53313.4.3 Monitor Stakeholder Engagement: Outputs …………………………………………..535REFERENCES ………………………………………………………………………………………………………………537

X Table of ContentsPART 2. THE STANDARD FOR PROJECT MANAGEMENT1. INTRODUCTION ………………………………………………………………………………………………………..5411.1 Projects and Project Management …………………………………………………………………….5421.2 Relationships Among Portfolios, Programs, and Projects ……………………………………5431.3 Linking Organizational Governance and Project Governance ………………………………5451.4 Project Success and Benefits Management ……………………………………………………….5461.5 The Project Life Cycle ………………………………………………………………………………………5471.6 Project Stakeholders ……………………………………………………………………………………….5501.7 Role of the Project Manager ……………………………………………………………………………..5521.8 Project Management Knowledge Areas …………………………………………………………….5531.9 Project Management Process Groups ……………………………………………………………….5541.10 Enterprise Environmental Factors and Organizational Process Assets ……………….5571.11 Tailoring the Project Artifacts …………………………………………………………………………5582. INITIATING PROCESS GROUP …………………………………………………………………………………….5612.1 Develop Project Charter …………………………………………………………………………………..5632.2 Identify Stakeholders ………………………………………………………………………………………5632.2.1 Project Management Plan Components ………………………………………………….5642.2.2 Project Documents Examples ………………………………………………………………..5642.2.3 Project Management Plan Updates ………………………………………………………..5642.2.4 Project Documents Updates ………………………………………………………………….5643. PLANNING PROCESS GROUP ……………………………………………………………………………………..5653.1 Develop Project Management Plan ……………………………………………………………………5673.2 Plan Scope Management ………………………………………………………………………………….5673.2.1 Project Management Plan Components ………………………………………………….5683.3 Collect Requirements ………………………………………………………………………………………5683.3.1 Project Management Plan Components ………………………………………………….5683.3.2 Project Documents Examples ………………………………………………………………..569

XI3.4 Define Scope …………………………………………………………………………………………………..5693.4.1 Project Management Plan Components ………………………………………………….5693.4.2 Project Documents Examples ………………………………………………………………..5693.4.3 Project Documents Updates ………………………………………………………………….5703.5 Create WBS …………………………………………………………………………………………………….5703.5.1 Project Management Plan Components ………………………………………………….5703.5.2 Project Documents Examples ………………………………………………………………..5713.5.3 Project Documents Updates ………………………………………………………………….5713.6 Plan Schedule Management …………………………………………………………………………….5713.6.1 Project Management Plan Components ………………………………………………….5723.7 Define Activities ………………………………………………………………………………………………5723.7.1 Project Management Plan Components ………………………………………………….5723.7.2 Project Management Plan Updates ………………………………………………………..5723.8 Sequence Activities …………………………………………………………………………………………5733.8.1 Project Management Plan Components ………………………………………………….5733.8.2 Project Documents Examples ………………………………………………………………..5733.8.3 Project Documents Updates ………………………………………………………………….5733.9 Estimate Activity Durations ………………………………………………………………………………5743.9.1 Project Management Plan Components ………………………………………………….5743.9.2 Project Documents Examples ………………………………………………………………..5743.9.3 Project Documents Updates ………………………………………………………………….5753.10 Develop Schedule ………………………………………………………………………………………….5753.10.1 Project Management Plan Components ………………………………………………..5753.10.2 Project Documents Examples ………………………………………………………………5763.10.3 Project Management Plan Updates ………………………………………………………5763.10.4 Project Documents Updates ………………………………………………………………..5763.11 Plan Cost Management ………………………………………………………………………………….5773.11.1 Project Management Plan Components ………………………………………………..577

XII Table of Contents3.12 Estimate Costs ………………………………………………………………………………………………5773.12.1 Project Management Plan Components ………………………………………………..5783.12.2 Project Documents Examples ………………………………………………………………5783.12.3 Project Documents Updates ………………………………………………………………..5783.13 Determine Budget ………………………………………………………………………………………….5783.13.1 Project Management Plan Components ………………………………………………..5793.13.2 Project Documents Examples ………………………………………………………………5793.13.3 Project Documents Updates ………………………………………………………………..5793.14 Plan Quality Management ………………………………………………………………………………5803.14.1 Project Management Plan Components ………………………………………………..5803.14.2 Project Documents Examples ………………………………………………………………5803.14.3 Project Management Plan Updates ………………………………………………………5813.14.4 Project Documents Updates ………………………………………………………………..5813.15 Plan Resource Management …………………………………………………………………………..5813.15.1 Project Management Plan Components ………………………………………………..5823.15.2 Project Documents ……………………………………………………………………………..5823.15.3 Project Documents Updates ………………………………………………………………..5823.16 Estimate Activity Resources …………………………………………………………………………..5823.16.1 Project Management Plan Components ………………………………………………..5833.16.2 Project Documents Examples ………………………………………………………………5833.16.3 Project Documents Updates ………………………………………………………………..5833.17 Plan Communications Management ………………………………………………………………..5843.17.1 Project Management Plan Components ………………………………………………..5843.17.2 Project Documents Examples ………………………………………………………………5843.17.3 Project Management Plan Updates ………………………………………………………5843.17.4 Project Documents Updates ………………………………………………………………..5853.18 Plan Risk Management ………………………………………………………………………………….5853.18.1 Project Management Plan Components ………………………………………………..5853.18.2 Project Documents Examples ………………………………………………………………585

XIII3.19 Identify Risks ………………………………………………………………………………………………..5863.19.1 Project Management Plan Components ………………………………………………..5863.19.2 Project Documents Examples ………………………………………………………………5873.19.3 Project Documents Updates ………………………………………………………………..5873.20 Perform Qualitative Risk Analysis …………………………………………………………………..5883.20.1 Project Management Plan Components ………………………………………………..5883.20.2 Project Documents Examples ………………………………………………………………5883.20.3 Project Documents Updates ………………………………………………………………..5893.21 Perform Quantitative Risk Analysis …………………………………………………………………5893.21.1 Project Management Plan Components ………………………………………………..5893.21.2 Project Documents Examples ………………………………………………………………5903.21.3 Project Documents Updates ………………………………………………………………..5903.22 Plan Risk Responses ……………………………………………………………………………………..5903.22.1 Project Management Plan Components ………………………………………………..5913.22.2 Project Documents Examples ………………………………………………………………5913.22.3 Project Management Plan Updates ………………………………………………………5913.22.4 Project Documents Updates ………………………………………………………………..5923.23 Plan Procurement Management ……………………………………………………………………..5923.23.1 Project Management Plan Components ………………………………………………..5933.23.2 Project Documents Examples ………………………………………………………………5933.23.3 Project Documents Updates ………………………………………………………………..5933.24 Plan Stakeholder Engagement ………………………………………………………………………..5943.24.1 Project Management Plan Components ………………………………………………..5943.24.2 Project Documents Examples ………………………………………………………………5944. EXECUTING PROCESS GROUP ……………………………………………………………………………………5954.1 Direct and Manage Project Work ………………………………………………………………………5974.1.1 Project Management Plan Components ………………………………………………….5974.1.2 Project Documents Examples ………………………………………………………………..5974.1.3 Project Management Plan Updates ………………………………………………………..5984.1.4 Project Documents Updates ………………………………………………………………….598

XIV Table of Contents4.2 Manage Project Knowledge ……………………………………………………………………………..5984.2.1 Project Management Plan Components ………………………………………………….5994.2.2 Project Documents ……………………………………………………………………………….5994.2.3 Project Management Plan Updates ………………………………………………………..5994.3 Manage Quality ……………………………………………………………………………………………….5994.3.1 Project Management Plan Components ………………………………………………….6004.3.2 Project Documents Examples ………………………………………………………………..6004.3.3 Project Management Plan Updates ………………………………………………………..6004.3.4 Project Documents Updates ………………………………………………………………….6004.4 Acquire Resources ………………………………………………………………………………………….6014.4.1 Project Management Plan Components ………………………………………………….6014.4.2 Project Documents Examples ………………………………………………………………..6014.4.3 Project Management Plan Updates ………………………………………………………..6024.4.4 Project Documents Updates ………………………………………………………………….6024.5 Develop Team………………………………………………………………………………………………….6024.5.1 Project Management Plan Components ………………………………………………….6034.5.2 Project Documents Examples ………………………………………………………………..6034.5.3 Project Management Plan Updates ………………………………………………………..6034.5.4 Project Documents Updates ………………………………………………………………….6034.6 Manage Team………………………………………………………………………………………………….6044.6.1 Project Management Plan Components ………………………………………………….6044.6.2 Project Documents Examples ………………………………………………………………..6044.6.3 Project Management Plan Updates ………………………………………………………..6054.6.4 Project Documents Updates ………………………………………………………………….6054.7 Manage Communications ………………………………………………………………………………..6054.7.1 Project Management Plan Components ………………………………………………….6064.7.2 Project Documents Example ………………………………………………………………….6064.7.3 Project Management Plan Updates ………………………………………………………..6064.7.4 Project Documents Updates ………………………………………………………………….606

XV4.8 Implement Risk Responses ………………………………………………………………………………6074.8.1 Project Management Plan Components ………………………………………………….6074.8.2 Project Documents Examples ………………………………………………………………..6074.8.3 Project Documents Updates ………………………………………………………………….6074.9 Conduct Procurements …………………………………………………………………………………….6084.9.1 Project Management Plan Components ………………………………………………….6084.9.2 Project Documents Examples ………………………………………………………………..6094.9.3 Project Management Plan Updates ………………………………………………………..6094.9.4 Project Documents Updates ………………………………………………………………….6094.10 Manage Stakeholder Engagement …………………………………………………………………..6104.10.1 Project Management Plan Components ………………………………………………..6104.10.2 Project Documents Examples ………………………………………………………………6104.10.3 Project Management Plan Updates ………………………………………………………6114.10.4 Project Documents Updates ………………………………………………………………..6115. MONITORING AND CONTROLLING PROCESS GROUP ……………………………………………………6135.1 Monitor and Control Project Work …………………………………………………………………….6155.1.1 Project Management Plan Components ………………………………………………….6155.1.2 Project Documents Examples ………………………………………………………………..6155.1.3 Project Management Plan Updates ………………………………………………………..6165.1.4 Project Documents Updates ………………………………………………………………….6165.2 Perform Integrated Change Control …………………………………………………………………..6165.2.1 Project Management Plan Components ………………………………………………….6175.2.2 Project Documents Examples ………………………………………………………………..6175.2.3 Project Management Plan Updates ………………………………………………………..6175.2.4 Project Documents Updates ………………………………………………………………….6175.3 Validate Scope ………………………………………………………………………………………………..6185.3.1 Project Management Plan Components ………………………………………………….6185.3.2 Project Documents Examples ………………………………………………………………..6185.3.3 Project Documents Updates ………………………………………………………………….619

XVI Table of Contents5.4 Control Scope …………………………………………………………………………………………………6195.4.1 Project Management Plan Components ………………………………………………….6195.4.2 Project Documents Examples ………………………………………………………………..6205.4.3 Project Management Plan Updates ………………………………………………………..6205.4.4 Project Documents Updates ………………………………………………………………….6205.5 Control Schedule …………………………………………………………………………………………….6215.5.1 Project Management Plan Components ………………………………………………….6215.5.2 Project Documents Examples ………………………………………………………………..6215.5.3 Project Management Plan Updates ………………………………………………………..6225.5.4 Project Documents Updates ………………………………………………………………….6225.6 Control Costs ………………………………………………………………………………………………….6225.6.1 Project Management Plan Components ………………………………………………….6235.6.2 Project Documents Examples ………………………………………………………………..6235.6.3 Project Management Plan Updates ………………………………………………………..6235.6.4 Project Documents Updates ………………………………………………………………….6235.7 Control Quality ………………………………………………………………………………………………..6245.7.1 Project Management Plan Components ………………………………………………….6245.7.2 Project Documents Examples ………………………………………………………………..6245.7.3 Project Management Plan Updates ………………………………………………………..6255.7.4 Project Documents Updates ………………………………………………………………….6255.8 Control Resources …………………………………………………………………………………………..6255.8.1 Project Management Plan Components ………………………………………………….6265.8.2 Project Documents Examples ………………………………………………………………..6265.8.3 Project Management Plan Updates ………………………………………………………..6265.8.4 Project Documents Updates ………………………………………………………………….6265.9 Monitor Communications …………………………………………………………………………………6275.9.1 Project Management Plan Components ………………………………………………….6275.9.2 Project Documents Examples ………………………………………………………………..6275.9.3 Project Management Plan Updates ………………………………………………………..6285.9.4 Project Documents Updates ………………………………………………………………….628

XVII5.10 Monitor Risks ………………………………………………………………………………………………..6285.10.1 Project Management Plan Components ………………………………………………..6295.10.2 Project Documents Examples ………………………………………………………………6295.10.3 Project Management Plan Updates ………………………………………………………6295.10.4 Project Documents Updates ………………………………………………………………..6295.11 Control Procurements ……………………………………………………………………………………6295.11.1 Project Management Plan Components ………………………………………………..6305.11.2 Project Documents Examples ………………………………………………………………6305.11.3 Project Management Plan Updates ………………………………………………………6315.11.4 Project Documents Updates ………………………………………………………………..6315.12 Monitor Stakeholder Engagement …………………………………………………………………..6315.12.1 Project Management Plan Components ………………………………………………..6325.12.2 Project Documents Examples ………………………………………………………………6325.12.3 Project Management Plan Updates ………………………………………………………6325.12.4 Project Documents Updates ………………………………………………………………..6326. CLOSING PROCESS GROUP ………………………………………………………………………………………..6336.1 Close Project or Phase …………………………………………………………………………………….6346.1.1 Project Management Plan Components ………………………………………………….6346.1.2 Project Documents Examples ………………………………………………………………..6356.1.3 Project Documents Updates ………………………………………………………………….635

XVIII Table of ContentsPART 3. APPENDICES, GLOSSARY, AND INDEXAPPENDIX X1 SIXTH EDITION CHANGES …………………………………………………………………………………………….639APPENDIX X2 CONTRIBUTORS AND REVIEWERS OF THE PMBOK® GUIDE—SIXTH EDITION ……………………..651APPENDIX X3 AGILE, ITERATIVE, ADAPTIVE, AND HYBRID PROJECT ENVIRONMENTS …………………………….665APPENDIX X4 SUMMARY OF KEY CONCEPTS FOR KNOWLEDGE AREAS …………………………………………………673APPENDIX X5 SUMMARY OF TAILORING CONSIDERATIONS FOR KNOWLEDGE AREAS …………………………….679APPENDIX X6 TOOLS AND TECHNIQUES …………………………………………………………………………………………….685GLOSSARY …………………………………………………………………………………………………………………695

�� XIXLIST OF TABLES AND FIGURESPART 1. A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide)Figure 1-1. Organizational State Transition via a Project ……………………………………………..6Figure 1-2. Project Initiation Context ………………………………………………………………………….8Figure 1-3. Portfolio, Programs, Projects, and Operations…………………………………………..12Figure 1-4. Organizational Project Management ……………………………………………………….17Figure 1-5. Interrelationship of PMBOK® Guide Key Components in Projects ……………….18Figure 1-6. Example Process: Inputs, Tools & Techniques, and Outputs……………………….22Figure 1-7. Project Data, Information, and Report Flow ……………………………………………..27Figure 1-8. Interrelationship of Needs Assessment and Critical Business/ Project Documents ………………………………………………………………………………..30Figure 2-1. Project Influences ………………………………………………………………………………….37Figure 3-1. Example of Project Manager’s Sphere of Influence …………………………………..53Figure 3-2. The PMI Talent Triangle® ………………………………………………………………………..57Figure 4-1. Project Integration Management Overview ………………………………………………71Figure 4-2. Develop Project Charter: Inputs, Tools & Techniques, and Outputs ……………..75Figure 4-3. Develop Project Charter: Data Flow Diagram ……………………………………………76Figure 4-4. Develop Project Management Plan: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………..82

XX List of Tables and FiguresFigure 4-5. Develop Project Management Plan: Data Flow Diagram ……………………………82Figure 4-6. Direct and Manage Project Work: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………..90Figure 4-7. Direct and Manage Project Work: Data Flow Diagram ……………………………….91Figure 4-8. Manage Project Knowledge: Inputs, Tools & Techniques, and Outputs ………..98Figure 4-9. Manage Project Knowledge: Data Flow Diagram ………………………………………99Figure 4-10. Monitor and Control Project Work: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………105Figure 4-11. Monitor and Control Project Work: Data Flow Diagram ……………………………106Figure 4-12. Perform Integrated Change Control: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………113Figure 4-13. Perform Integrated Change Control: Data Flow Diagram …………………………114Figure 4-14. Close Project or Phase: Inputs, Tools & Techniques, and Outputs ……………..121Figure 4-15. Close Project or Phase: Data Flow Diagram ……………………………………………122Figure 5-1. Project Scope Management Overview ……………………………………………………130Figure 5-2. Plan Scope Management: Inputs, Tools & Techniques, and Outputs ………….134Figure 5-3. Plan Scope Management: Data Flow Diagram ………………………………………..134Figure 5-4. Collect Requirements: Inputs, Tools & Techniques, and Outputs ………………138Figure 5-5. Collect Requirements: Data Flow Diagram ……………………………………………..139Figure 5-6. Context Diagram ………………………………………………………………………………….146Figure 5-7. Example of a Requirements Traceability Matrix ……………………………………..149Figure 5-8. Define Scope: Inputs, Tools & Techniques, and Outputs …………………………..150Figure 5-9. Define Scope: Data Flow Diagram …………………………………………………………151Figure 5-10. Create WBS: Inputs, Tools & Techniques, and Outputs …………………………….156Figure 5-11. Create WBS: Data Flow Diagram ……………………………………………………………156Figure 5-12. Sample WBS Decomposed Down Through Work Packages ………………………158Figure 5-13. Sample WBS Organized by Phase ………………………………………………………….159

XXIFigure 5-14. Sample WBS with Major Deliverables…………………………………………………….160Figure 5-15. Validate Scope: Inputs, Tools & Techniques, and Outputs ………………………..163Figure 5-16. Validate Scope: Data Flow Diagram ……………………………………………………….164Figure 5-17. Control Scope: Inputs, Tools & Techniques, and Outputs ………………………….167Figure 5-18. Control Scope: Data Flow Diagram ………………………………………………………..168Figure 6-1. Project Schedule Management Overview ……………………………………………….174Figure 6-2. Scheduling Overview ……………………………………………………………………………176Figure 6-3. Plan Schedule Management: Inputs, Tools & Techniques, and Outputs ……..179Figure 6-4. Plan Schedule Management: Data Flow Diagram ……………………………………179Figure 6-5. Define Activities: Inputs, Tools & Techniques, and Outputs ………………………183Figure 6-6. Define Activities: Data Flow Diagram …………………………………………………….183Figure 6-7. Sequence Activities: Inputs, Tools & Techniques, and Outputs …………………187Figure 6-8. Sequence Activities: Data Flow Diagram ………………………………………………..187Figure 6-9. Precedence Diagramming Method (PDM) Relationship Types ………………….190Figure 6-10. Examples of Lead and Lag ……………………………………………………………………192Figure 6-11. Project Schedule Network Diagram ……………………………………………………….193Figure 6-12. Estimate Activity Durations: Inputs, Tools & Techniques, and Outputs ………195Figure 6-13. Estimate Activity Durations: Data Flow Diagram …………………………………….196Figure 6-14. Develop Schedule: Inputs, Tools & Techniques, and Outputs ……………………205Figure 6-15. Develop Schedule: Data Flow Diagram …………………………………………………..206Figure 6-16. Example of Critical Path Method ……………………………………………………………211Figure 6-17. Resource Leveling ……………………………………………………………………………….212Figure 6-18. Example Probability Distribution of a Target Milestone ……………………………214Figure 6-19. Schedule Compression Comparison ………………………………………………………215Figure 6-20. Relationship Between Product Vision, Release Planning, and Iteration Planning ………………………………………………………………………….216

��XXII List of Tables and FiguresFigure 6-21. Project Schedule Presentations—Examples …………………………………………..219Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and Outputs ……………………..222Figure 6-23. Control Schedule: Data Flow Diagram ……………………………………………………223Figure 6-24. Iteration Burndown Chart ……………………………………………………………………..226Figure 7-1. Project Cost Management Overview ………………………………………………………232Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques, and Outputs …………….235Figure 7-3. Plan Cost Management: Data Flow Diagram …………………………………………..235Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and Outputs ………………………..240Figure 7-5. Estimate Costs: Data Flow Diagram ………………………………………………………240Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and Outputs ……………………248Figure 7-7. Determine Budget: Data Flow Diagram ………………………………………………….249Figure 7-8. Project Budget Components ………………………………………………………………….255Figure 7-9. Cost Baseline, Expenditures, and Funding Requirements ………………………..255Figure 7-10. Control Costs: Inputs, Tools & Techniques, and Outputs …………………………..257Figure 7-11. Control Costs: Data Flow Diagram …………………………………………………………258Figure 7-12. Earned Value, Planned Value, and Actual Costs ………………………………………264Figure 7-13. To-Complete Performance Index (TCPI) ………………………………………………….268Figure 8-1. Project Quality Management Overview …………………………………………………..272Figure 8-2. Major Project Quality Management Process Interrelations ………………………273Figure 8-3. Plan Quality Management: Inputs, Tools & Techniques, and Outputs ………..277Figure 8-4. Plan Quality Management: Data Flow Diagram ……………………………………….278Figure 8-5. Cost of Quality……………………………………………………………………………………..283Figure 8-6. The SIPOC Model………………………………………………………………………………….285Figure 8-7. Manage Quality: Inputs, Tools & Techniques, and Outputs ……………………….288Figure 8-8. Manage Quality: Data Flow Diagram ……………………………………………………..289Figure 8-9. Cause-and-Effect Diagram ……………………………………………………………………294

XXIIIFigure 8-10. Control Quality: Inputs, Tools & Techniques, and Outputs ………………………..298Figure 8-11. Control Quality: Data Flow Diagram ……………………………………………………….299Figure 8-12. Check Sheets ………………………………………………………………………………………302Figure 9-1. Project Resource Management Overview ……………………………………………….308Figure 9-2. Plan Resource Management: Inputs, Tools & Techniques, and Outputs …….312Figure 9-3. Plan Resource Management: Data Flow Diagram ……………………………………313Figure 9-4. Sample RACI Chart ………………………………………………………………………………317Figure 9-5. Estimate Activity Resources: Inputs, Tools & Techniques, and Outputs ……..321Figure 9-6. Estimate Activity Resources: Data Flow Diagram ……………………………………321Figure 9-7. Sample Resource Breakdown Structure …………………………………………………327Figure 9-8. Acquire Resources: Inputs, Tools & Techniques, and Outputs …………………..328Figure 9-9. Acquire Resources: Data Flow Diagram …………………………………………………329Figure 9-10. Develop Team: Inputs, Tools & Techniques, and Outputs ………………………….336Figure 9-11. Develop Team: Data Flow Diagram ………………………………………………………..337Figure 9-12. Manage Team: Inputs, Tools & Techniques, and Outputs ………………………….345Figure 9-13. Manage Team: Data Flow Diagram ………………………………………………………..346Figure 9-14. Control Resources: Inputs, Tools & Techniques, and Outputs……………………352Figure 9-15. Control Resources: Data Flow Diagram ………………………………………………….353Figure 10-1. Project Communications Overview ………………………………………………………..360Figure 10-2. Plan Communications Management: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………366Figure 10-3. Plan Communications Management: Data Flow Diagram ………………………..367Figure 10-4. Communication Model for Cross-Cultural Communication ………………………373Figure 10-5. Manage Communications: Inputs, Tools & Techniques, and Outputs …………379Figure 10-6. Manage Communications: Data Flow Diagram ……………………………………….380Figure 10-7. Monitor Communications: Inputs, Tools & Techniques, and Outputs …………388

XXIV List of Tables and FiguresFigure 10-8. Monitor Communications: Data Flow Diagram ……………………………………….389Figure 11-1. Project Risk Management Overview ………………………………………………………396Figure 11-2. Plan Risk Management: Inputs, Tools & Techniques, and Outputs …………….401Figure 11-3. Plan Risk Management: Data Flow Diagram …………………………………………..402Figure 11-4. Extract from Sample Risk Breakdown Structure (RBS) ……………………………406Figure 11-5. Example Probability and Impact Matrix with Scoring Scheme …………………408Figure 11-6. Identify Risks: Inputs, Tools & Techniques, and Outputs ………………………….409Figure 11-7. Identify Risks: Data Flow Diagram ………………………………………………………..410Figure 11-8. Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………419Figure 11-9. Perform Qualitative Risk Analysis: Data Flow Diagram ……………………………420Figure 11-10. Example Bubble Chart Showing Detectability, Proximity, and Impact Value …………………………………………………………………………………426Figure 11-11. Perform Quantitative Risk Analysis: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………428Figure 11-12. Perform Quantitative Risk Analysis: Data Flow Diagram ………………………….429Figure 11-13. Example S-Curve from Quantitative Cost Risk Analysis …………………………..433Figure 11-14. Example Tornado Diagram ……………………………………………………………………434Figure 11-15. Example Decision Tree …………………………………………………………………………435Figure 11-16. Plan Risk Responses: Inputs, Tools & Techniques, and Outputs ……………….437Figure 11-17. Plan Risk Responses: Data Flow Diagram ………………………………………………438Figure 11-18. Implement Risk Responses: Inputs, Tools & Techniques, and Outputs ………449Figure 11-19. Implement Risk Responses: Data Flow Diagram …………………………………….449Figure 11-20. Monitor Risks: Inputs, Tools & Techniques, and Outputs ………………………….453Figure 11-21. Monitor Risks: Data Flow Diagram ………………………………………………………..454Figure 12-1. Project Procurement Management Overview ………………………………………….460

XXVFigure 12-2. Plan Procurement Management: Inputs, Tools & Techniques, and Outputs ….466Figure 12-3. Plan Procurement Management: Data Flow Diagram ………………………………467Figure 12-4. Conduct Procurements: Inputs, Tools & Techniques, and Outputs …………….482Figure 12-5. Conduct Procurements: Data Flow Diagram …………………………………………..483Figure 12-6. Control Procurements: Inputs, Tools & Techniques, and Outputs ………………492Figure 12-7. Control Procurements: Data Flow Diagram …………………………………………….493Figure 13-1. Project Stakeholder Management Overview …………………………………………..504Figure 13-2. Identify Stakeholders: Inputs, Tools & Techniques, and Outputs……………….507Figure 13-3. Identify Stakeholders: Data Flow Diagram ……………………………………………..508Figure 13-4. Plan Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs ….516Figure 13-5. Plan Stakeholder Engagement: Data Flow Diagram ………………………………..517Figure 13-6. Stakeholder Engagement Assessment Matrix ………………………………………..522Figure 13-7. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………523Figure 13-8. Manage Stakeholder Engagement: Data Flow Diagram …………………………..524Figure 13-9. Monitor Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs…………………………………………………………………………………………530Figure 13-10. Monitor Stakeholder Engagement: Data Flow Diagram ……………………………531Table 1-1. Examples of Factors that Lead to the Creation of a Project …………………………9Table 1-2. Comparative Overview of Portfolios, Programs, and Projects …………………….13Table 1-3. Description of PMBOK® Guide Key Components ……………………………………….18Table 1-4. Project Management Process Group and Knowledge Area Mapping …………..25Table 1-5. Project Business Documents ………………………………………………………………….29Table 2-1. Influences of Organizational Structures on Projects …………………………………47Table 3-1. Team Management and Team Leadership Compared ………………………………..64

XXVI List of Tables and FiguresTable 4-1. Project Management Plan and Project Documents ……………………………………89Table 5-1. Elements of the Project Charter and Project Scope Statement …………………155Table 7-1. Earned Value Calculations Summary Table …………………………………………….267Table 11-1. Example of Definitions for Probability and Impacts ………………………………..407Table 12-1. Comparison of Procurement Documentation ………………………………………….481PART 2. The Standard For Project ManagementFigure 1-1. Example of Portfolio, Program, and Project Management Interfaces ………..544Figure 1-2. Generic Depiction of a Project Life Cycle………………………………………………..548Figure 1-3. Impact of Variables Over Time ………………………………………………………………549Figure 1-4. Examples of Project Stakeholders …………………………………………………………551Figure 1-5. Example of Process Group Interactions Within a Project or Phase ……………555Figure 2-1. Project Boundaries ………………………………………………………………………………562Figure 2-2. Initiating Process Group ……………………………………………………………………….562Figure 2-3. Develop Project Charter: Inputs and Outputs ………………………………………….563Figure 2-4. Identify Stakeholders: Inputs and Outputs ……………………………………………..563Figure 3-1. Planning Process Group ……………………………………………………………………….566Figure 3-2. Develop Project Management Plan: Inputs and Outputs ………………………….567Figure 3-3. Plan Scope Management: Inputs and Outputs ………………………………………..567Figure 3-4. Collect Requirements: Inputs and Outputs ……………………………………………..568Figure 3-5. Define Scope: Inputs and Outputs …………………………………………………………569Figure 3-6. Create WBS: Inputs and Outputs ……………………………………………………………570Figure 3-7. Plan Schedule Management: Inputs and Outputs ……………………………………571Figure 3-8. Define Activities: Inputs and Outputs …………………………………………………….572

�� XXVIIFigure 3-9. Sequence Activities: Inputs and Outputs ………………………………………………..573Figure 3-10. Estimate Activity Durations: Inputs and Outputs …………………………………….574Figure 3-11. Develop Schedule: Inputs and Outputs …………………………………………………..575Figure 3-12. Plan Cost Management: Inputs and Outputs …………………………………………..577Figure 3-13. Estimate Costs: Inputs and Outputs……………………………………………………….577Figure 3-14. Determine Budget: Inputs and Outputs ………………………………………………….579Figure 3-15. Plan Quality Management: Inputs and Outputs ……………………………………….580Figure 3-16. Plan Resource Management: Inputs and Outputs ……………………………………581Figure 3-17. Estimate Activity Resources: Inputs and Outputs ……………………………………583Figure 3-18. Plan Communications Management: Inputs and Outputs ………………………..584Figure 3-19. Plan Risk Management: Inputs and Outputs …………………………………………..585Figure 3-20. Identify Risks: Inputs and Outputs…………………………………………………………586Figure 3-21. Perform Qualitative Risk Analysis: Inputs and Outputs ……………………………588Figure 3-22. Perform Quantitative Risk Analysis: Inputs and Outputs ………………………….589Figure 3-23. Plan Risk Responses: Inputs and Outputs ………………………………………………590Figure 3-24. Plan Procurement Management: Inputs and Outputs ………………………………592Figure 3-25. Plan Stakeholder Engagement: Inputs and Outputs ………………………………..594Figure 4-1. Executing Process Group ……………………………………………………………………..596Figure 4-2. Direct and Manage Project Work: Inputs and Outputs ……………………………..597Figure 4-3. Manage Project Knowledge: Inputs and Outputs …………………………………….598Figure 4-4. Manage Quality: Inputs and Outputs ……………………………………………………..599Figure 4-5. Acquire Resources: Inputs and Outputs …………………………………………………601Figure 4-6. Develop Team: Inputs and Outputs ………………………………………………………..602Figure 4-7. Manage Team: Inputs and Outputs ………………………………………………………..604Figure 4-8. Manage Communications: Inputs and Outputs ……………………………………….605Figure 4-9. Implement Risk Responses: Inputs and Outputs …………………………………….607

XXVIII List of Tables and FiguresFigure 4-10. Conduct Procurements: Inputs and Outputs …………………………………………..608Figure 4-11. Manage Stakeholder Engagement: Inputs and Outputs …………………………..610Figure 5-1. Monitoring and Controlling Process Group …………………………………………….614Figure 5-2. Monitor and Control Project Work: Inputs and Outputs ……………………………615Figure 5-3. Perform Integrated Change Control: Inputs and Outputs ………………………….616Figure 5-4. Validate Scope: Inputs and Outputs ……………………………………………………….618Figure 5-5. Control Scope: Inputs and Outputs ………………………………………………………..619Figure 5-6. Control Schedule: Inputs and Outputs ……………………………………………………621Figure 5-7. Control Costs: Inputs and Outputs …………………………………………………………622Figure 5-8. Control Quality: Inputs and Outputs ……………………………………………………….624Figure 5-9. Control Resources: Inputs and Outputs ………………………………………………….625Figure 5-10. Monitor Communications: Inputs and Outputs ……………………………………….627Figure 5-11. Monitor Risks: Inputs and Outputs ………………………………………………………..628Figure 5-12. Control Procurements: Inputs and Outputs …………………………………………….630Figure 5-13. Monitor Stakeholder Engagement: Inputs and Outputs ……………………………631Figure 6-1. Closing Process Group …………………………………………………………………………633Figure 6-2. Close Project or Phase: Inputs and Outputs ……………………………………………634Table 1-1. Project Management Process Group and Knowledge Area Mapping …………556Table 1-2. Project Management Plan and Project Documents ………………………………….559

XXIXPART 3. APPENDICES, GLOSSARY, AND INDEXFigure X3-1. The Continuum of Project Life Cycles …………………………………………………….666Figure X3-2. Level of Effort for Process Groups across Iteration Cycles ………………………667Figure X3-3. Relationship of Process Groups in Continuous Phases ……………………………668Table X1-1. Section 4 Changes ……………………………………………………………………………….645Table X1-2. Section 6 Changes ……………………………………………………………………………….646Table X1-3. Section 8 Changes ……………………………………………………………………………….646Table X1-4. Section 9 Changes ……………………………………………………………………………….647Table X1-5. Section 10 Changes ……………………………………………………………………………..648Table X1-6. Section 11 Changes ……………………………………………………………………………..648Table X1-7. Section 12 Changes ……………………………………………………………………………..649Table X1-8. Section 13 Changes ……………………………………………………………………………..650Table X6-1. Categorization and Index of Tools and Techniques ………………………………….686

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Reproduction.Sale Distribution, Sale Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Distribution, Not For Distribution, For Distribution, Not For For Not Distribution, Distribution, Not For Distribution, Sale Distribution, Sale Distribution, Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.or Sale Sale or Sale Sale Sale Distribution, Sale Sale Sale Sale Distribution, Reproduction.Reproduction.Reproduction.or Sale Sale Reproduction.Reproduction.Reproduction.Reproduction.or Sale or or or Sale or or Sale Reproduction.Reproduction.Reproduction.or Reproduction.Reproduction.or Sale or Reproduction.Reproduction.Reproduction.or Reproduction.Reproduction.Reproduction.Sale Distribution, Distribution, Sale Sale Reproduction.Reproduction.Sale Distribution, Distribution, Sale Sale Reproduction.Sale Distribution, Distribution, Distribution, Sale Sale Reproduction.Sale Distribution, Distribution, Reproduction.Distribution, Sale Sale Reproduction.Reproduction.Sale Distribution, Distribution, Sale Sale Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Reproduction.Part 1A Guide to the Project Management Body of Knowledge (PMBOK® GUIDE)The information contained in this part is not an American National Standard (ANS) and has not been processed in accordance with ANSI’s requirements for an ANS. As such, the information in this part may contain material that has not been subjected to public review or a consensus process. In addition, it does not contain requirements necessary for conformance to an ANS standard.

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��11INTRODUCTION1.1 OVERVIEW AND PURPOSE OF THIS GUIDEProject management is not new. It has been in use for hundreds of years. Examples of project outcomes include:uuPyramids of Giza,uuOlympic games,uuGreat Wall of China,uuTaj Mahal,uuPublication of a children’s book,uuPanama Canal,uuDevelopment of commercial jet airplanes,uuPolio vaccine,uuHuman beings landing on the moon,uuCommercial software applications,uuPortable devices to use the global positioning system (GPS), anduuPlacement of the International Space Station into Earth’s orbit.The outcomes of these projects were the result of leaders and managers applying project management practices, principles, processes, tools, and techniques to their work. The managers of these projects used a set of key skills and applied knowledge to satisfy their customers and other people involved in and affected by the project. By the mid-20th century, project managers began the work of seeking recognition for project management as a profession. One aspect of this work involved obtaining agreement on the content of the body of knowledge (BOK) called project management. This BOK became known as the Project Management Body of Knowledge (PMBOK). The Project Management Institute (PMI) produced a baseline of charts and glossaries for the PMBOK. Project managers soon realized that no single book could contain the entire PMBOK. Therefore, PMI developed and published A Guide to the Project Management Body of Knowledge (PMBOK® 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.

2 Part 1 – GuideThe body of knowledge (BOK) includes both published and unpublished materials. This body of knowledge is constantly evolving. This PMBOK® Guide identiﬁes a subset of the project management body of knowledge that is generally recognized as good practice.uuGenerally 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.uuGood 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 project manager works with the project team and other stakeholders to determine and use the appropriate generally recognized good practices for each project. Determining the appropriate combination of processes, inputs, tools, techniques, outputs and life cycle phases to manage a project is referred to as “tailoring” the application of the knowledge described in this guide.This PMBOK® Guide is different from a methodology. A methodology is a system of practices, techniques, procedures, and rules used by those who work in a discipline. This PMBOK® Guide is a foundation upon which organizations can build methodologies, policies, procedures, rules, tools and techniques, and life cycle phases needed to practice project management.1.1.1 THE STANDARD FOR PROJECT MANAGEMENTThis guide is based on The Standard for Project Management [1]. A standard is a document established by an authority, custom, or general consent as a model or example. As an American National Standards Institute (ANSI) standard, The Standard for Project Management was developed using a process based on the concepts of consensus, openness, due process, and balance. The Standard for Project Management is a foundational reference for PMI’s project management professional development programs and the practice of project management. Because project management needs to be tailored to ﬁt the needs of the project, the standard and the guide are both based on descriptive practices, rather than prescriptive practices. Therefore, 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 does not require that any particular process or practice be performed. The Standard for Project Management is included as Part II of A Guide to the Project Management Body of Knowledge (PMBOK® Guide).The PMBOK® Guide provides more detail about key concepts, emerging trends, considerations for tailoring the project management processes, and information on how tools and techniques are applied to projects. Project managers may use one or more methodologies to implement the project management processes outlined in the standard.

3The scope of this guide is limited to the discipline of project management, rather than the full spectrum of portfolios, programs, and projects. Portfolios and programs will be addressed only to the degree they interact with projects. PMI publishes two other standards that address the management of portfolios and programs:uuThe Standard for Portfolio Management [2], anduuThe Standard for Program Management [3].1.1.2 COMMON VOCABULARYA common vocabulary is an essential element of a professional discipline. The PMI Lexicon of Project Management Terms [4] provides the foundational professional vocabulary that can be consistently used by organizations, portfolio, program, and project managers and other project stakeholders. The Lexicon will continue to evolve over time. The glossary to this guide includes the vocabulary in the Lexicon along with additional deﬁnitions. There may be other industry-speciﬁc terms used in projects that are deﬁned by that industry’s literature.1.1.3 CODE OF ETHICS AND PROFESSIONAL CONDUCTPMI publishes the Code of Ethics and Professional Conduct [5] to instill conﬁdence in the project management profession and to help an individual in making wise decisions, particularly when faced with difﬁcult situations where the individual may be asked to compromise his or her integrity or values. The values 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.The Code of Ethics and Professional Conduct includes both aspirational standards and mandatory standards. The aspirational standards describe the conduct that practitioners, who are also PMI members, certiﬁcation holders, or volunteers, strive to uphold. Although adherence to the aspirational standards is not easily measured, conduct in accordance with these is an expectation for those who consider themselves to be professionals—it is not optional. The mandatory standards establish ﬁrm requirements and, in some cases, limit or prohibit practitioner behavior. Practitioners who are also PMI members, certiﬁcation holders, or volunteers and who do not conduct themselves in accordance with these standards will be subject to disciplinary procedures before PMI’s Ethics Review Committee.

4 Part 1 – Guide1.2 FOUNDATIONAL ELEMENTSThis section describes foundational elements necessary for working in and understanding the discipline of project management.1.2.1 PROJECTSA project is a temporary endeavor undertaken to create a unique product, service, or result.uuUnique product, service, or result. Projects are undertaken to fulﬁll objectives by producing deliverables. An objective 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, or a service to be performed. A deliverable is deﬁned as any unique and veriﬁable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables may be tangible or intangible.Fulﬁllment of project objectives may produce one or more of the following deliverables:unA 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);unA unique service or a capability to perform a service (e.g., a business function that supports production or distribution);unA 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); andunA unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services).Repetitive elements may be present in some project deliverables and activities. This repetition does not change the fundamental and unique characteristics of the project work. For example, ofﬁce buildings can be constructed with the same or similar materials and by the same or different teams. However, each building project remains unique in key characteristics (e.g., location, design, environment, situation, people involved).Projects are undertaken at all organizational levels. A project can involve a single individual or a group. A project can involve a single organizational unit or multiple organizational units from multiple organizations.

��5Examples of projects include but are not limited to:unDeveloping a new pharmaceutical compound for market,unExpanding a tour guide service,unMerging two organizations,unImproving a business process within an organization,unAcquiring and installing a new computer hardware system for use in an organization,unExploring for oil in a region,unModifying a computer software program used in an organization,unConducting research to develop a new manufacturing process, andunConstructing a building.uuTemporary 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:unThe project’s objectives have been achieved;unThe objectives will not or cannot be met;unFunding is exhausted or no longer available for allocation to the project;unThe 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); unThe human or physical resources are no longer available; orunThe project is terminated for legal cause or convenience.Projects are temporary, but their deliverables may exist beyond the end of the project. Projects may produce deliverables of a social, economic, material, or environmental nature. For example, a project to build a national monument will create a deliverable expected to last for centuries.

6 Part 1 – GuideuuProjects 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.For some projects, this may involve creating a transition state where multiple steps are made along a continuum to achieve the future state. The successful completion of a project results in the organization moving to the future state and achieving the speciﬁc objective. For more information on project management and change, see Managing Change in Organizations: A Practice Guide [6].Figure 1-1. Organizational State Transition via a ProjectOrganizationBusinessValueTimeProject Activities• Activity A• Activity B• Activity C• Etc.Future StateCurrent StateProject

7uuProjects 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 exchanged (see Business Analysis for Practitioners: A Practice Guide, p. 185 [7]).Business value in projects refers to the beneﬁt that the results of a speciﬁc project provide to its stakeholders. The beneﬁt from projects may be tangible, intangible, or both.Examples of tangible elements include:unMonetary assets,unStockholder equity,unUtility,unFixtures,unTools, andunMarket share.Examples of intangible elements include:unGoodwill,unBrand recognition,unPublic beneﬁt,unTrademarks,unStrategic alignment, andunReputation.uuProject 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 (see Figure 1-2):unMeet regulatory, legal, or social requirements;unSatisfy stakeholder requests or needs;unImplement or change business or technological strategies; andunCreate, improve, or ﬁx products, processes, or services.

8 Part 1 – GuideFigure 1-2. Project Initiation ContextThese factors inﬂuence an organization’s ongoing operations and business strategies. Leaders respond to these factors in order to keep the organization viable. Projects provide the means for organizations to successfully make the changes necessary to deal with these factors. These factors ultimately should link to the strategic objectives of the organization and the business value of each project.Table 1-1 illustrates how example factors could align with one or more of the fundamental factor categories.Satisfy StakeholderRequests or NeedsImplement orChange Businessor TechnologicalStrategiesMeet Regulatory,Legal, or SocialRequirementsCreate, Improve,or Fix Products,Processes, orServicesProject

��9XXXXXXXXXXXXXXXXXXXX Examples of Specific FactorsMeet Regulatory, Legal, or Social RequirementsSatisfy StakeholderRequests or NeedsCreate, Improve, or Fix Products,Processes, or ServicesImplement or Change Businessor Technological StrategiesAn electronics firm authorizes a new project to develop a faster, cheaper, and smaller laptop based on advances in computer memory and electronics technologyLower pricing on products by a competitor results in the need to lower production costs to remain competitiveA municipal bridge developed cracks in some support members resulting in a project to fix the problemsA newly elected official instigating project funding changes to a current projectA car company authorizes a project to build more fuel-efficient cars in response to gasoline shortagesAn economic downturn results in a change in the priorities for a current projectAn electric utility authorizes a project to build a substation to serve a new industrial parkA stakeholder requires that a new output be produced by the organizationA chemical manufacturer authorizes a project to establish guidelines for the proper handling of a new toxic materialAn organization implements a project resulting from a Lean Six Sigma value stream mapping exerciseA training company authorizes a project to create a new course to increase its revenuesA nongovernmental organization in a developing country authorizes a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of infectious diseasesA public company authorizes a project to create a new service for electric car sharing to reduce pollutionNew technologyCompetitive forcesMaterial issuesPolitical changesMarket demandEconomic changesCustomer requestStakeholder demandsLegal requirementBusiness process improvementsStrategic opportunity or business needSocial needEnvironmental considerationsSpecific FactorTable 1-1. Examples of Factors that Lead to the Creation of a Project

��10 Part 1 – Guide1.2.2 THE IMPORTANCE OF PROJECT MANAGEMENTProject 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:uuMeet business objectives;uuSatisfy stakeholder expectations;uuBe more predictable;uuIncrease chances of success;uuDeliver the right products at the right time;uuResolve problems and issues;uuRespond to risks in a timely manner;uuOptimize the use of organizational resources;uuIdentify, recover, or terminate failing projects;uuManage constraints (e.g., scope, quality, schedule, costs, resources);uuBalance the inﬂuence of constraints on the project (e.g., increased scope may increase cost or schedule); anduuManage change in a better manner.Poorly managed projects or the absence of project management may result in:uuMissed deadlines,uuCost overruns,uuPoor quality,uuRework,uuUncontrolled expansion of the project,uuLoss of reputation for the organization,uuUnsatisﬁed stakeholders, anduuFailure in achieving the objectives for which the project was undertaken.Projects are a key way to create value and beneﬁts in organizations. In today’s business environment, organizational leaders need to be able to manage with tighter budgets, shorter timelines, scarcity of resources, and rapidly changing technology. The business environment is dynamic with an accelerating rate of change. To remain competitive in the world economy, companies are embracing project management to consistently deliver business value.

��11Effective and efﬁcient project management should be considered a strategic competency within organizations. It enables organizations to:uuTie project results to business goals,uuCompete more effectively in their markets,uuSustain the organization, anduuRespond to the impact of business environment changes on projects by appropriately adjusting project management plans (see Section 4.2).1.2.3 RELATIONSHIP OF PROJECT, PROGRAM, PORTFOLIO, AND OPERATIONS MANAGEMENT1.2.3.1 OVERVIEWUsing project management processes, tools, and techniques puts in place a sound foundation for organizations to achieve their goals and objectives. A project may be managed in three separate scenarios: as a stand-alone project (outside of a portfolio or program), within a program, or within a portfolio. Project managers interact with portfolio and program managers when a project is within a program or portfolio. For example, multiple projects may be needed to accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into a program. A program is deﬁned as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain beneﬁts not available from managing them individually. Programs are not large projects. A very large project may be referred to as a megaproject. As a guideline, megaprojects cost US$1billion or more, affect 1 million or more people, and run for years.Some organizations may employ the use of a project portfolio to effectively manage multiple programs and projects that are underway at any given time. A portfolio is deﬁned as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Figure 1-3 illustrates an example of how portfolios, programs, projects, and operations are related in a speciﬁc situation.Program management and portfolio management differ from project management in their life cycles, activities, objectives, focus, and beneﬁts. However, portfolios, programs, projects, and operations often engage with the same stakeholders and may need to use the same resources (see Figure 1-3), which may result in a conﬂict in the organization. This type of a situation increases the need for coordination within the organization through the use of portfolio, program, and project management to achieve a workable balance in the organization.

12 Part 1 – GuideFigure 1-3 illustrates a sample portfolio structure indicating relationships between the programs, projects, shared resources, and stakeholders. The portfolio components are grouped together in order to facilitate the effective governance and management of the work that helps to achieve organizational strategies and priorities. Organizational and portfolio planning impact the components by means of prioritization based on risk, funding, and other considerations. The portfolio view allows organizations to see how the strategic goals are reﬂected in the portfolio. This portfolio view also enables the implementation and coordination of appropriate portfolio, program, and project governance. This coordinated governance allows authorized allocation of human, ﬁnancial, and physical resources based on expected performance and beneﬁts.Figure 1-3. Portfolio, Programs, Projects, and OperationsLooking at project, program, and portfolio management from an organizational perspective:uuProgram and project management focus on doing programs and projects the “right” way; anduuPortfolio management focuses on doing the “right” programs and projects.Table 1-2 gives a comparative overview of portfolios, programs, and projects.Organizational StrategySample PortfolioProject1Project2Project3Project4Project5Project6Project7Project8Project9OperationsShared Resources and StakeholdersProgramCProgramB1ProgramAProgramBPortfolioA

��13Table 1-2. Comparative Overview of Portfolios, Programs, and Projects Organizational Project ManagementProjectsProgramsPortfoliosA project is a temporary endeavor undertaken to create a unique product, service, or result.Projects have defined objectives. Scope is progressively elaborated throughout the project life cycle.Project managers expect change and implement processes to keep change managed and controlled.Project managers progressively elaborate high-level information into detailed plans throughout the project life cycle.Project managers manage the project team to meet the project objectives.Project managers monitor and control the work of producing the products, services, or results that the project was undertaken to produce.Success is measured by product and project quality, timeliness, budget compliance, and degree of customer satisfaction.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.Programs have a scope that encompasses the scopes of its program components. Programs produce benefits to an organization by ensuring that the outputs and outcomes of program components are delivered in a coordinated and complementary manner.Programs are managed in a manner that accepts and adapts to change as necessary to optimize the delivery of benefits as the program’s components deliver outcomes and/or outputs.Programs are managed using high-level plans that track the interdependencies and progress of program components. Program plans are also used to guide planning at the component level.Programs are managed by program managers who ensure that program benefits are delivered as expected, by coordinating the activities of a program’s components.Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, and benefits of the program will be met.A program’s success is measured by the program’s ability to deliver its intended benefits to an organization, and by the program’s efficiency and effectiveness in delivering those benefits.A portfolio is a collection of projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.Portfolios have an organizational scope that changes with the strategic objectives of the organization.Portfolio managers continuously monitor changes in the broader internal and external environments.Portfolio managers create and maintain necessary processes and communication relative to the aggregate portfolio.Portfolio managers may manage or coordinate portfolio management staff, or program and project staff that may have reporting responsibilities into the aggregate portfolio.Portfolio managers monitor strategic changes and aggregate resource allocation, performance results, and risk of the portfolio.Success is measured in terms of the aggregate investment performance and benefit realization of the portfolio.DefinitionScopeChangePlanningManagementMonitoringSuccess

��14 Part 1 – Guide1.2.3.2 PROGRAM MANAGEMENTProgram 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. Actions related to these program and project-level interdependencies may include:uuAligning with the organizational or strategic direction that affects program and project goals and objectives;uuAllocating the program scope into program components;uuManaging interdependencies among the components of the program to best serve the program;uuManaging program risks that may impact multiple projects in the program;uuResolving constraints and conﬂicts that affect multiple projects within the program;uuResolving issues between component projects and the program level;uuManaging change requests within a shared governance framework;uuAllocating budgets across multiple projects within the program; anduuAssuring beneﬁts realization from the program and component projects.An example of a program is a new communications satellite system with projects for the design and construction of the satellite and the ground stations, the launch of the satellite, and the integration of the system.For more information on program management, see The Standard for Program Management [3].

��151.2.3.3 PORTFOLIO MANAGEMENTA 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:uuGuide organizational investment decisions.uuSelect the optimal mix of programs and projects to meet strategic objectives.uuProvide decision-making transparency.uuPrioritize team and physical resource allocation.uuIncrease the likelihood of realizing the desired return on investment.uuCentralize the management of the aggregate risk proﬁle of all components.Portfolio management also conﬁrms that the portfolio is consistent with and aligned with organizational strategies.Maximizing the value of the portfolio requires careful examination of the components that comprise the portfolio. Components are prioritized so that those contributing the most to the organization’s strategic objectives have the required ﬁnancial, team, and physical resources.For example, an infrastructure organization that has the strategic objective of maximizing the return on its investments may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the organization may choose to manage related projects as one portfolio. All of the power projects may be grouped together as a power portfolio. Similarly, all of the water projects may be grouped together as a water portfolio. However, when the organization has projects in designing and constructing a power plant and then operates the power plant to generate energy, those related projects can be grouped in one program. Thus, the power program and similar water program become integral components of the portfolio of the infrastructure organization.For more information on portfolio management, see The Standard for Portfolio Management [2].

16 Part 1 – Guide1.2.3.4 OPERATIONS MANAGEMENTOperations 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).1.2.3.5 OPERATIONS AND PROJECT MANAGEMENTChanges in business or organizational operations may be the focus of a project—especially when there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross.Projects can intersect with operations at various points during the product life cycle, such as;uuWhen developing a new product, upgrading a product, or expanding outputs;uuWhile improving operations or the product development process;uuAt the end of the product life cycle; anduuAt each closeout phase.At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources or knowledge to operations or through a transfer of operational resources to the project.1.2.3.6 ORGANIZATIONAL PROJECT MANAGEMENT (OPM) AND STRATEGIESPortfolios, programs, and projects are aligned with or driven by organizational strategies and differ in the way each contributes to the achievement of strategic goals:uuPortfolio management aligns portfolios with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources.uuProgram management harmonizes its program components and controls interdependencies in order to realize speciﬁed beneﬁts.uuProject management enables the achievement of organizational goals and objectives.

��17Within portfolios or programs, projects are a means of achieving organizational goals and objectives. This is often accomplished in the context of a strategic plan that is the primary factor guiding investments in projects. Alignment with the organization’s strategic business goals can be achieved through the systematic management of portfolios, programs, and projects through the application of organizational project management (OPM). OPM is deﬁned as a framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives.The purpose of OPM is to ensure that the organization undertakes the right projects and allocates critical resources appropriately. OPM also helps to ensure that all levels in the organization understand the strategic vision, the initiatives that support the vision, the objectives, and the deliverables. Figure 1-4 shows the organizational environment where strategy, portfolio, programs, projects, and operations interact.For more information on OPM, refer to Implementing Organizational Project Management: A Practice Guide [8].Figure 1-4. Organizational Project Management1.2.4 COMPONENTS OF THE GUIDEProjects comprise several key components that, when effectively managed, result in their successful completion. This guide identiﬁes and explains these components. The various components interrelate to one another during the management of a project.The key components are described brieﬂy in Table 1-3. These components are more fully explained in the sections that follow the table.StrategyPortfolio:ValueDecisionsPortfolio Review and AdjustmentsOrganizational EnvironmentBusiness Impact AnalysisValue Performance AnalysisProgramsand Projects:ResultsDeliveryOperations:Business ValueRealization

18 Part 1 – GuidePMBOK® Guide Key ComponentBrief DescriptionThe series of phases that a project passes through from its start to its completion.A collection of logically related project activities that culminates in the completion of one or more deliverables.A review at the end of a phase in which a decision is made to continue to the next phase, to continue with modification, or to end a program or project.A systematic series of activities directed toward causing an end result where one or more inputs will be acted upon to create one or more outputs.A logical grouping of project management inputs, tools and techniques, and outputs. The Project Management Process Groups include Initiating, Planning, Executing, Monitoring and Controlling, and Closing. Project Management Process Groups are not project phases.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 life cycle (Section 1.2.4.1)Project phase (Section 1.2.4.2)Phase gate (Section 1.2.4.3)Project management processes(Section 1.2.4.4)Project Management Process Group(Section 1.2.4.5)Project Management Knowledge Area (Section 1.2.4.6)Project Life CycleStartingthe ProjectKEY:PhaseGateProjectPhasePotentialUseTimelineOrganizingand PreparingCarrying Outthe WorkEnding theProjectProcess Groups10 Knowledge AreasInitiatingProcessesPlanningProcessesExecutingProcessesMonitoringandControllingProcessesClosingProcessesFigure 1-5. Interrelationship of PMBOK® Guide Key Components in ProjectsTable 1-3. Description of PMBOK® Guide Key Components

191.2.4.1 PROJECT AND DEVELOPMENT LIFE CYCLESA 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 shown in Figure 1-5.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:uuIn 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.uuIn 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.uuIn 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.uuAdaptive 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.uuA 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.It is up to the project management team to determine the best life cycle for each project. The project life cycle needs to be ﬂexible enough to deal with the variety of factors included in the project. Life cycle ﬂexibility may be accomplished by:uuIdentifying the process or processes needed to be performed in each phase,uuPerforming the process or processes identiﬁed in the appropriate phase,uuAdjusting the various attributes of a phase (e.g., name, duration, exit criteria, and entrance criteria).Project life cycles are independent of product life cycles, which may be produced by a project. A product life cycle is the series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement.

20 Part 1 – Guide1.2.4.2 PROJECT PHASEA 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:uuName (e.g., Phase A, Phase B, Phase 1, Phase 2, proposal phase),uuNumber (e.g., three phases in the project, ﬁve phases in the project),uuDuration (e.g., 1 week, 1 month, 1 quarter),uuResource requirements (e.g., people, buildings, equipment),uuEntrance criteria for a project to move into that phase (e.g., speciﬁed approvals documented, speciﬁed documents completed), anduuExit criteria for a project to complete a phase (e.g., documented approvals, completed documents, completed deliverables).Projects may be separated into distinct phases or subcomponents. These phases or subcomponents are generally given names that indicate the type of work done in that phase. Examples of phase names include but are not limited to:uuConcept development,uuFeasibility study,uuCustomer requirements,uuSolution development,uuDesign,uuPrototype,uuBuild,uuTest,uuTransition,uuCommissioning,uuMilestone review, anduuLessons learned.

21The project phases may be established based on various factors including, but not limited to:uuManagement needs;uuNature of the project;uuUnique characteristics of the organization, industry, or technology;uuProject elements including, but not limited to, technology, engineering, business, process, or legal; anduuDecision points (e.g., funding, project go/no-go, and milestone review).Using multiple phases may provide better insight to managing the project. It also provides an opportunity to assess the project performance and take necessary corrective or preventive actions in subsequent phases. A key component used with project phases is the phase review (see Section 1.2.4.3).1.2.4.3 PHASE GATEA 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:uuProject business case (see Section 1.2.6.1),uuProject charter (see Section 4.1),uuProject management plan (see Section 4.2), anduuBeneﬁts management plan (see Section 1.2.6.2).A decision (e.g., go/no-go decision) is made as a result of this comparison to:uuContinue to the next phase,uuContinue to the next phase with modiﬁcation,uuEnd the project,uuRemain in the phase, oruuRepeat the phase or elements of it.Depending on the organization, industry, or type of work, phase gates may be referred to by other terms such as, phase review, stage gate, kill point, and phase entrance or phase exit. Organizations may use these reviews to examine other pertinent items which are beyond the scope of this guide, such as product-related documents or models.

22 Part 1 – Guide1.2.4.4 PROJECT MANAGEMENT PROCESSESThe 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:uuAn input to another process, oruuA deliverable of the project or project phase.Figure 1-6 shows an example of how inputs, tools and techniques, and outputs relate to each other within a process, and with other processes. Figure 1-6. Example Process: Inputs, Tools & Techniques, and OutputsThe number of process iterations and interactions between processes varies based on the needs of the project. Processes generally fall into one of three categories:uuProcesses used once or at predefined points in the project. The processes Develop Project Charter and Close Project or Phase are examples.uuProcesses 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.uuProcesses 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 is accomplished through the appropriate application and integration of logically grouped project management processes. While there are different ways of grouping processes, the PMBOK® Guide groups processes into ﬁve categories called Process Groups.InputsTools & TechniquesOutputs.1 Technique A.2 Tool C.1 Project Output A.2 Project Output B.1 Input H.2 Input J

��231.2.4.5 PROJECT MANAGEMENT PROCESS GROUPSA 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:uuInitiating 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.uuPlanning 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.uuExecuting Process Group. Those processes performed to complete the work deﬁned in the project management plan to satisfy the project requirements.uuMonitoring 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.uuClosing Process Group. Those processes performed to formally complete or close the project, phase, or contract.Process flow diagrams are used throughout this guide. The project management processes are linked by specific inputs and outputs where the result or outcome of one process may become the input to another process that is not necessarily in the same Process Group. Note that Process Groups are not the same as project phases (see Section 1.2.4.2).1.2.4.6 PROJECT MANAGEMENT KNOWLEDGE AREASIn addition to Process Groups, processes are also categorized by 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.Although the Knowledge Areas are interrelated, they are deﬁned separately from the project management perspective. The ten Knowledge Areas identiﬁed in this guide are used in most projects most of the time. The ten Knowledge Areas described in this guide are:uuProject 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.uuProject 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.

24 Part 1 – GuideuuProject Schedule Management. Includes the processes required to manage the timely completion of the project.uuProject 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.uuProject 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.uuProject Resource Management. Includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project.uuProject 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.uuProject Risk Management. Includes the processes of conducting risk management planning, identiﬁcation, analysis, response planning, response implementation, and monitoring risk on a project.uuProject Procurement Management. Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.uuProject 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.The needs of a speciﬁc project may require one or more additional Knowledge Areas, for example, construction may require ﬁnancial management or safety and health management. Table 1-4 maps the Project Management Process Groups and Knowledge Areas. Sections 4 through 13 provide more detail about each Knowledge Area. This table is an overview of the basic processes described in Sections 4 through 13.

��25Table 1-4. Project Management Process Group and Knowledge Area Mapping4.1 Develop Project Charter4.2 Develop Project Management Plan4.3 Direct and Manage Project Work4.4 Manage Project Knowledge4.5 Monitor and Control Project Work4.6 Perform Integrated Change Control4.7 Close Project or PhaseKnowledgeAreas Project Management Process Groups PlanningProcessGroup ExecutingProcessGroup InitiatingProcessGroup Monitoringand ControllingProcess Group ClosingProcessGroup Project Integration Management Project Scope Management Project Schedule Management Project Cost Management Project Quality Management Project Resource Management Project Communications Management Project Risk Management Project Procurement Management Project Stakeholder Management 4.5.6.7.8.9.10.11.12.13.13.1 Identify Stakeholders13.2 Plan Stakeholder Engagement13.3 Manage Stakeholder Engagement13.4 MonitorStakeholder Engagement12.1 Plan Procurement Management12.2 Conduct Procurements12.3 Control Procurements11.1 Plan Risk Management11.2 Identify Risks11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Responses11.6 Implement Risk Responses11.7 Monitor Risks10.1 Plan Communications Management10.2 Manage Communications10.3 Monitor Communications9.1 Plan Resource Management9.2 Estimate Activity Resources9.3 Acquire Resources9.4 Develop Team9.5 Manage Team9.6 Control Resources8.1 Plan Quality Management8.2 Manage Quality8.3 Control Quality7.1 Plan Cost Management7.2 Estimate Costs7.3 Determine Budget7.4 Control Costs6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activity Durations6.5 Develop Schedule6.6 Control Schedule5.1 Plan Scope Management5.2 Collect Requirements5.3 Define Scope5.4 Create WBS5.5 Validate Scope5.6 Control Scope

26 Part 1 – Guide1.2.4.7 PROJECT MANAGEMENT DATA AND INFORMATIONThroughout 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:uuWork 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.uuWork 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.uuWork 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.Figure 1-7 shows the ﬂow of project information across the various processes used in managing the project.

��27Project ChangeControlVarious ProjectProcessesOverallProject ControlControlingProcessesExecutingProcessesProjectCommunications• Approvedchangerequests• Work performance reports• Work performance information• Project management planand project documents updates• Work performance data• Project team members• Project stakeholdersFigure 1-7. Project Data, Information, and Report Flow

��28 Part 1 – Guide1.2.5 TAILORINGUsually, 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.This guide and The Standard for Project Management [1] are recommended references for tailoring, because these standard documents identify the subset of the project management body of knowledge that is generally recognized as good practice. “Good practice” does not mean that the knowledge described should always be applied uniformly to all projects. Speciﬁc methodology recommendations are outside the scope of this guide.Project management methodologies may be:uuDeveloped by experts within the organization,uuPurchased from vendors,uuObtained from professional associations, oruuAcquired from government agencies.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. The project manager collaborates with the project team, sponsor, organizational management, or some combination thereof, in the tailoring. In some cases, the organization may require speciﬁc project management methodologies be used.Tailoring is necessary because each project is unique; not every process, tool, technique, input, or output identiﬁed in the PMBOK® Guide is required on every project. Tailoring should address the competing constraints of scope, schedule, cost, resources, quality, and risk. The importance of each constraint is different for each project, and the project manager tailors the approach for managing these constraints based on the project environment, organizational culture, stakeholder needs, and other variables.In tailoring project management, the project manager should also consider the varying levels of governance that may be required and within which the project will operate, as well as considering the culture of the organization. In addition, consideration of whether the customer of the project is internal or external to the organization may affect project management tailoring decisions.Sound project management methodologies take into account the unique nature of projects and allow tailoring, to some extent, by the project manager. However, the tailoring that is included in the methodology may still require additional tailoring for a given project.

��291.2.6 PROJECT MANAGEMENT BUSINESS DOCUMENTSThe project manager needs to ensure that the project management approach captures the intent of business documents. These documents are deﬁned in Table 1-5. These two documents are interdependent and iteratively developed and maintained throughout the life cycle of the project.Table 1-5. Project Business DocumentsThe project sponsor is generally accountable for the development and maintenance of the project business case document. The project manager is responsible for providing recommendations and oversight to keep the project business case, project management plan, project charter, and project beneﬁts management plan success measures in alignment with one another and with the goals and objectives of the organization.Project managers should appropriately tailor the noted project management documents for their projects. In some organizations, the business case and beneﬁts management plan are maintained at the program level. Project managers should work with the appropriate program managers to ensure the project management documents are aligned with the program documents. Figure 1-8 illustrates the interrelationship of these critical project management business documents and the needs assessment. Figure 1-8 shows an approximation of the life cycle of these various documents against the project life cycle.Project Business DocumentsDefinitionA 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.The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project.Project business caseProject benefits management plan

30 Part 1 – GuideFigure 1-8. Interrelationship of Needs Assessment and Critical Business/Project Documents1.2.6.1 PROJECT BUSINESS CASEThe 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. The business case lists the objectives and reasons for project initiation. It helps measure the project success at the end of the project against the project objectives. The business case is a project business document that is used throughout the project life cycle. The business case may be used before the project initiation and may result in a go/no-go decision for the project.A needs assessment often precedes the business case. The needs assessment involves understanding business goals and objectives, issues, and opportunities and recommending proposals to address them. The results of the needs assessment may be summarized in the business case document.Project Life CycleTimelineGeneric PhasesPre-ProjectWorkStartingthe ProjectOrganizingand PreparingCarrying Outthe WorkCompletingthe ProjectPhaseGateNeedsAssessmentBusinessCaseProjectCharterProjectManagementPlanBenefitsManagementPlan

31The process of deﬁning the business need, analyzing the situation, making recommendations, and deﬁning evaluation criteria is applicable to any organization’s projects. A business case may include but is not limited to documenting the following:uuBusiness needs:unDetermination of what is prompting the need for action;unSituational statement documenting the business problem or opportunity to be addressed including the value to be delivered to the organization;unIdentiﬁcation of stakeholders affected; andunIdentiﬁcation of the scope.uuAnalysis of the situation:unIdentiﬁcation of organizational strategies, goals, and objectives;unIdentiﬁcation of root cause(s) of the problem or main contributors of an opportunity;unGap analysis of capabilities needed for the project versus existing capabilities of the organization;unIdentiﬁcation of known risks;unIdentiﬁcation of critical success factors; unIdentiﬁcation of decision criteria by which the various courses of action may be assessed;Examples of criteria categories used for analysis of a situation are:umRequired. This is a criterion that is “required” to be fulﬁlled to address the problem or opportunity.umDesired. This is a criterion that is “desired” to be fulﬁlled to address the problem or opportunity.umOptional. This is a criterion that is not essential. Fulﬁllment of this criterion may become a differentiator between alternative courses of action.unIdentiﬁcation of a set of options to be considered for addressing the business problem or opportunity. Options are alternative courses of action that may be taken by the organization. Options may also be described as business scenarios. For example, a business case could present the following three options:umDo nothing. This is also referred to as the “business as usual” option. Selection of this option results in the project not being authorized.umDo the minimum work possible to address the problem or opportunity. The minimum may be established by identifying the set of documented criteria that are key in addressing the problem or opportunity.umDo more than the minimum work possible to address the problem or opportunity. This option meets the minimum set of criteria and some or all of the other documented criteria. There may be more than one of these options documented in the business case.

32 Part 1 – GuideuuRecommendation:unA statement of the recommended option to pursue in the project;unItems to include in the statement may include but are not limited to:umAnalysis results for the potential option;umConstraints, assumptions, risks, and dependencies for the potential options; andumSuccess measures (see Section 1.2.6.4).unAn implementation approach that may include but is not limited to:umMilestones,umDependencies, andumRoles and responsibilities.uuEvaluation:unStatement describing the plan for measuring beneﬁts the project will deliver. This should include any ongoing operational aspects of the recommended option beyond initial implementation.The business case document provides the basis to measure success and progress throughout the project life cycle by comparing the results with the objectives and the identiﬁed success criteria. See Business Analysis for Practitioners: A Practice Guide [7].

��331.2.6.2 PROJECT BENEFITS MANAGEMENT PLANThe 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. A project beneﬁt is deﬁned as an outcome of actions, behaviors, products, services, or results that provide value to the sponsoring organization as well as to the project’s intended beneﬁciaries. Development of the beneﬁts management plan begins early in the project life cycle with the deﬁnition of the target beneﬁts to be realized. The beneﬁts management plan describes key elements of the beneﬁts and may include but is not limited to documenting the following:uuTarget 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);uuStrategic alignment (e.g., how well the project beneﬁts align to the business strategies of the organization);uuTimeframe for realizing benefits (e.g., beneﬁts by phase, short-term, long-term, and ongoing);uuBenefits owner (e.g., the accountable person to monitor, record, and report realized beneﬁts throughout the timeframe established in the plan);uuMetrics (e.g., the measures to be used to show beneﬁts realized, direct measures, and indirect measures); uuAssumptions (e.g., factors expected to be in place or to be in evidence); anduuRisks (e.g., risks for realization of beneﬁts).Developing the beneﬁts management plan makes use of the data and information documented in the business case and needs assessment. For example, the cost-beneﬁt analyses recorded in the documents illustrate the estimate of costs compared to the value of the beneﬁts realized by the project. The beneﬁts management plan and the project management plan include a description of how the business value resulting from the project becomes part of the organization’s ongoing operations, including the metrics to be used. The metrics provide veriﬁcation of the business value and validation of the project’s success.Development and maintenance of the project beneﬁts management plan is an iterative activity. This document complements the business case, project charter, and project management plan. The project manager works with the sponsor to ensure that the project charter, project management plan, and the beneﬁts management plan remain in alignment throughout the life cycle of the project. See Business Analysis for Practitioners: A Practice Guide [7], The Standard for Program Management [3], and The Standard for Portfolio Management [2].

34 Part 1 – Guide1.2.6.3 PROJECT CHARTER AND PROJECT MANAGEMENT PLANThe project 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.See Section 4 on Project Integration Management for more information on the project charter and the project management plan.1.2.6.4 PROJECT SUCCESS MEASURESOne of the most common challenges in project management is determining whether or not a project is successful.Traditionally, the project management metrics of time, cost, scope, and quality have been the most important factors in deﬁning the success of a project. More recently, practitioners and scholars have determined that project success should also be measured with consideration toward achievement of the project objectives.Project stakeholders may have different ideas as to what the successful completion of a project will look like and which factors are the most important. It is critical to clearly document the project objectives and to select objectives that are measurable. Three questions that the key stakeholders and the project manager should answer are:uuWhat does success look like for this project?uuHow will success be measured?uuWhat factors may impact success?The answer to these questions should be documented and agreed upon by the key stakeholders and the project manager.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:uuCompleting the project beneﬁts management plan;uuMeeting the agreed-upon ﬁnancial measures documented in the business case. These ﬁnancial measures may include but are not limited to:unNet present value (NPV),unReturn on investment (ROI),unInternal rate of return (IRR),unPayback period (PBP), andunBeneﬁt-cost ratio (BCR).

��35uuMeeting business case nonﬁnancial objectives;uuCompleting movement of an organization from its current state to the desired future state;uuFulﬁlling contract terms and conditions;uuMeeting organizational strategy, goals, and objectives;uuAchieving stakeholder satisfaction;uuAcceptable customer/end-user adoption;uuIntegration of deliverables into the organization’s operating environment;uuAchieving agreed-upon quality of delivery;uuMeeting governance criteria; anduuAchieving other agreed-upon success measures or criteria (e.g., process throughput).The project team needs to be able to assess the project situation, balance the demands, and maintain proactive communication with stakeholders in order to deliver a successful project.When the business alignment for a project is constant, the chance for project success greatly increases because the project remains aligned with the strategic direction of the organization.It is possible for a project to be successful from a scope/schedule/budget viewpoint, and to be unsuccessful from a business viewpoint. This can occur when there is a change in the business needs or the market environment before the project is completed.

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��372THE ENVIRONMENT IN WHICH PROJECTS OPERATE2.1 OVERVIEWProjects exist and operate in environments that may have an inﬂuence on them. These inﬂuences can have a favorable or unfavorable impact on the project. Two major categories of inﬂuences are enterprise environmental factors (EEFs) and organizational process assets (OPAs).EEFs originate from the environment outside of the project and often outside of the enterprise. EEFs may have an impact at the organizational, portfolio, program, or project level. See Section 2.2 for additional information on EEFs.OPAs are internal to the organization. These may arise from the organization itself, a portfolio, a program, another project, or a combination of these. Figure 2-1 shows the breakdown of project inﬂuences into EEFs and OPAs. See Section 2.3 for additional information on OPAs.Figure 2-1. Project InfluencesIn addition to EEFs and OPAs, organizational systems play a signiﬁcant role in the life cycle of the project. System factors that impact the power, inﬂuence, interests, competencies, and political capabilities of the people to act within the organizational system are discussed further in the section on organizational systems (see Section 2.4).CorporateKnowledgeBaseProcesses,Policies, andProceduresInternalExternalEEFsInternalOPAsInfluences

38 Part 1 – Guide2.2 ENTERPRISE ENVIRONMENTAL FACTORSEnterprise environmental factors (EEFs) refer to conditions, not under the control of the project team, that inﬂuence, constrain, or direct the project. These conditions can be internal and/or external to the organization. EEFs are considered as inputs to many project management processes, speciﬁcally for most planning processes. These factors may enhance or constrain project management options. In addition, these factors may have a positive or negative inﬂuence on the outcome.EEFs vary widely in type or nature. These factors need to be considered if the project is to be effective. EEFs include but are not limited to the factors described in Sections 2.2.1 and 2.2.2.2.2.1 EEFS INTERNAL TO THE ORGANIZATIONThe following EEFs are internal to the organization:uuOrganizational culture, structure, and governance. Examples include vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct.uuGeographic distribution of facilities and resources. Examples include factory locations, virtual teams, shared systems, and cloud computing.uuInfrastructure. Examples include existing facilities, equipment, organizational telecommunications channels, information technology hardware, availability, and capacity.uuInformation technology software. Examples include scheduling software tools, conﬁguration management systems, web interfaces to other online automated systems, and work authorization systems.uuResource availability. Examples include contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements.uuEmployee capability. Examples include existing human resources expertise, skills, competencies, and specialized knowledge.

��392.2.2 EEFS EXTERNAL TO THE ORGANIZATIONThe following EEFs are external to the organization.uuMarketplace conditions. Examples include competitors, market share brand recognition, and trademarks.uuSocial and cultural influences and issues. Examples include political climate, codes of conduct, ethics, and perceptions.uuLegal restrictions. Examples include country or local laws and regulations related to security, data protection, business conduct, employment, and procurement.uuCommercial databases. Examples include benchmarking results, standardized cost estimating data, industry risk study information, and risk databases.uuAcademic research. Examples include industry studies, publications, and benchmarking results.uuGovernment or industry standards. Examples include regulatory agency regulations and standards related to products, production, environment, quality, and workmanship.uuFinancial considerations. Examples include currency exchange rates, interest rates, inﬂation rates, tariffs, and geographic location.uuPhysical environmental elements. Examples include working conditions, weather, and constraints.2.3 ORGANIZATIONAL PROCESS ASSETSOrganizational process assets (OPAs) are the plans, processes, policies, procedures, and knowledge bases speciﬁc to and used by the performing organization. These assets inﬂuence the management of the project.OPAs include any artifact, practice, or knowledge from any or all of the performing organizations involved in the project that can be used to execute or govern the project. The OPAs also include the organization’s lessons learned from previous projects and historical information. OPAs may include completed schedules, risk data, and earned value data. OPAs are inputs to many project management processes. Since OPAs are internal to the organization, the project team members may be able to update and add to the organizational process assets as necessary throughout the project. They may be grouped into two categories:uuProcesses, policies, and procedures; anduuOrganizational knowledge bases.

40 Part 1 – GuideGenerally, the assets in the ﬁrst category are not updated as part of the project work. Processes, policies, and procedures are usually established by the project management ofﬁce (PMO) or another function outside of the project. These can be updated only by following the appropriate organizational policies associated with updating processes, policies, or procedures. Some organizations encourage the team to tailor templates, life cycles, and checklists for the project. In these instances, the project management team should tailor those assets to meet the needs of the project.The assets in the second category are updated throughout the project with project information. For example, information on ﬁnancial performance, lessons learned, performance metrics and issues, and defects are continually updated throughout the project.2.3.1 PROCESSES, POLICIES, AND PROCEDURESThe organization’s processes and procedures for conducting project work include but are not limited to:uuInitiating and Planning:unGuidelines and criteria for tailoring the organization’s set of standard processes and procedures to satisfy the speciﬁc needs of the project;unSpeciﬁc organizational standards such as policies (e.g., human resources policies, health and safety policies, security and conﬁdentiality policies, quality policies, procurement policies, and environmental policies);unProduct and project life cycles, and methods and procedures (e.g., project management methods, estimation metrics, process audits, improvement targets, checklists, and standardized process deﬁnitions for use in the organization); unTemplates (e.g., project management plans, project documents, project registers, report formats, contract templates, risk categories, risk statement templates, probability and impact deﬁnitions, probability and impact matrices, and stakeholder register templates); andunPreapproved supplier lists and various types of contractual agreements (e.g., ﬁxed-price, cost-reimbursable, and time and material contracts).uuExecuting, Monitoring, and Controlling:unChange control procedures, including the steps by which performing organization standards, policies, plans, and procedures or any project documents will be modiﬁed, and how any changes will be approved and validated;unTraceability matrices;unFinancial controls procedures (e.g., time reporting, required expenditure and disbursement reviews, accounting codes, and standard contract provisions);

��41unIssue and defect management procedures (e.g., deﬁning issue and defect controls, identifying and resolving issues and defects, and tracking action items);unResource availability control and assignment management;unOrganizational communication requirements (e.g., speciﬁc communication technology available, authorized communication media, record retention policies, videoconferencing, collaborative tools, and security requirements);unProcedures for prioritizing, approving, and issuing work authorizations;unTemplates (e.g., risk register, issue log, and change log);unStandardized guidelines, work instructions, proposal evaluation criteria, and performance measurement criteria; andunProduct, service, or result veriﬁcation and validation procedures.uuClosing. Project closure guidelines or requirements (e.g., ﬁnal project audits, project evaluations, deliverable acceptance, contract closure, resource reassignment, and knowledge transfer to production and/or operations).2.3.2 ORGANIZATIONAL KNOWLEDGE REPOSITORIESThe organizational knowledge repositories for storing and retrieving information include but are not limited to:uuConﬁguration management knowledge repositories containing the versions of software and hardware components and baselines of all performing organization standards, policies, procedures, and any project documents;uuFinancial data repositories containing information such as labor hours, incurred costs, budgets, and any project cost overruns;uuHistorical information and lessons learned knowledge repositories (e.g., project records and documents, all project closure information and documentation, information regarding both the results of previous project selection decisions and previous project performance information, and information from risk management activities);uuIssue and defect management data repositories containing issue and defect status, control information, issue and defect resolution, and action item results;uuData repositories for metrics used to collect and make available measurement data on processes and products; anduuProject ﬁles from previous projects (e.g., scope, cost, schedule, and performance measurement baselines, project calendars, project schedule network diagrams, risk registers, risk reports, and stakeholder registers).

42 Part 1 – Guide2.4 ORGANIZATIONAL SYSTEMS2.4.1 OVERVIEWProjects operate within the constraints imposed by the organization through their structure and governance framework. To operate effectively and efﬁciently, the project manager needs to understand where responsibility, accountability, and authority reside within the organization. This understanding will help the project manager effectively use his or her power, inﬂuence, competence, leadership, and political capabilities to successfully complete the project.The interaction of multiple factors within an individual organization creates a unique system that impacts the project operating in that system. The resulting organizational system determines the power, inﬂuence, interests, competence, and political capabilities of the people who are able to act within the system. The system factors include but are not limited to:uuManagement elements,uuGovernance frameworks, anduuOrganizational structure types.The complete information and explanation of the organizational system factors and how the combination of these factors impacts a project are beyond the scope of this guide. There are disciplines with associated literature, methodologies, and practices that address these factors in more depth than is possible within this guide. This section provides an overview of these factors and their interrelationship.This overview begins by discussing systems in general. A system is a collection of various components that together can produce results not obtainable by the individual components alone. A component is an identiﬁable element within the project or organization that provides a particular function or group of related functions. The interaction of the various system components creates the organizational culture and capabilities. There are several principles regarding systems:uuSystems are dynamic,uuSystems can be optimized,uuSystem components can be optimized,uuSystems and their components cannot be optimized at the same time, anduuSystems are nonlinear in responsiveness (a change in the input does not produce a predictable change in the output).

43Multiple changes may occur within the system and between the system and its environment. When these changes take place, adaptive behavior occurs within the components that in turn add to the system’s dynamics. The system’s dynamics are deﬁned by the interaction between the components based on the relationships and dependencies that exist between the components.Systems are typically the responsibility of an organization’s management. The organization’s management examines the optimization trade-offs between the components and the system in order to take the appropriate action to achieve the best outcomes for the organization. The results of this examination will impact the project under consideration. Therefore, it is important that the project manager take these results into account when determining how to fulﬁll the project’s objectives. In addition, the project manager should take into account the organization’s governance framework.2.4.2 ORGANIZATIONAL GOVERNANCE FRAMEWORKSRecent PMI research reveals that governance refers to organizational or structural arrangements at all levels of an organization designed to determine and inﬂuence the behavior of the organization’s members [9]. This research suggests that the concept of governance is multidimensional and:uuIncludes consideration of people, roles, structures, and policies; anduuRequires providing direction and oversight through data and feedback.2.4.2.1 GOVERNANCE FRAMEWORKGovernance is the framework within which authority is exercised in organizations. This framework includes but is not limited to:uuRules,uuPolicies,uuProcedures,uuNorms,uuRelationships,uuSystems, anduuProcesses.This framework inﬂuences how:uuObjectives of the organization are set and achieved,uuRisk is monitored and assessed, anduuPerformance is optimized.

44 Part 1 – Guide2.4.2.2 GOVERNANCE OF PORTFOLIOS, PROGRAMS, AND PROJECTSThe Governance of Portfolios, Programs, and Projects: A Practice Guide [10] describes a common governance framework aligning organizational project management (OPM) and portfolio, program, and project management. The practice guide describes four governance domains of alignment, risk, performance, and communications. Each domain has the following functions: oversight, control, integration, and decision making. Each function has governance supporting processes and activities for stand-alone projects, or projects operating within the portfolio or program environments. Project governance refers to the framework, functions, and processes that guide project management activities in order to create a unique product, service, or result to meet organizational, strategic, and operational goals. There is no one governance framework that is effective in all organizations. A governance framework should be tailored to the organizational culture, types of projects, and the needs of the organization in order to be effective.For more information regarding project governance, including its implementation, see Governance of Portfolios, Programs, and Projects: A Practice Guide [10].2.4.3 MANAGEMENT ELEMENTSManagement elements are the components that comprise the key functions or principles of general management in the organization. The general management elements are allocated within the organization according to its governance framework and the organizational structure type selected.The key functions or principles of management include but are not limited to:uuDivision of work using specialized skills and availability to perform work;uuAuthority given to perform work;uuResponsibility to perform work appropriately assigned based on such attributes as skill and experience;uuDiscipline of action (e.g., respect for authority, people, and rules);uuUnity of command (e.g., only one person gives orders for any action or activity to an individual);uuUnity of direction (e.g., one plan and one head for a group of activities with the same objective);uuGeneral goals of the organization take precedence over individual goals;uuPaid fairly for work performed;

45uuOptimal use of resources;uuClear communication channels;uuRight materials to the right person for the right job at the right time;uuFair and equal treatment of people in the workplace;uuClear security of work positions;uuSafety of people in the workplace;uuOpen contribution to planning and execution by each person; anduuOptimal morale.Performance of these management elements are assigned to selected individuals within the organization. These individuals may perform the noted functions within various organizational structures. For example, in a hierarchical structure, there are horizontal and vertical levels within the organization. These hierarchical levels range from the line management level through to the executive management level. The responsibility, accountability, and authority assigned to the hierarchical level indicate how the individual may perform the noted function within that organizational structure.2.4.4 ORGANIZATIONAL STRUCTURE TYPESDetermination of the appropriate organizational structure type is a result of the study of tradeoffs between two key variables. The variables are the organizational structure types available for use and how to optimize them for a given organization. There is not a one-size-ﬁts-all structure for any given organization. The ﬁnal structure for a given organization is unique due to the numerous variables to be considered. Sections 2.4.4.1 and 2.4.4.2 give examples of some of the factors to be included when considering the two variables given. Section 2.4.4.3 discusses one organizational structure that is prevalent in project management.2.4.4.1 ORGANIZATIONAL STRUCTURE TYPESOrganizational structures take many forms or types. Table 2-1 compares several types of organizational structures and their inﬂuence on projects.

��46 Part 1 – Guide2.4.4.2 FACTORS IN ORGANIZATION STRUCTURE SELECTIONEach organization considers numerous factors for inclusion in its organizational structure. Each factor may carry a different level of importance in the ﬁnal analysis. The combination of the factor, its value, and relative importance provides the organization’s decision makers with the right information for inclusion in the analysis.Factors to consider in selecting an organizational structure include but are not limited to:uuDegree of alignment with organizational objectives,uuSpecialization capabilities,uuSpan of control, efﬁciency, and effectiveness,uuClear path for escalation of decisions,uuClear line and scope of authority,uuDelegation capabilities,uuAccountability assignment,uuResponsibility assignment,uuAdaptability of design,uuSimplicity of design,uuEfﬁciency of performance,uuCost considerations,uuPhysical locations (e.g., colocated, regional, and virtual), anduuClear communication (e.g., policies, status of work, and organization’s vision).

��47Table 2-1. Influences of Organizational Structures on Projects Who Managesthe ProjectBudget?ResourceAvailabilityProjectManager’sRoleProjectManager’sAuthorityWork GroupsArranged by: Flexible; people working side-by-sideJob being done(e.g., engineering, manufacturing)One of: product; production processes; portfolio; program; geographic region; customer typeBy job function, with project manager as a functionJob functionJob functionProjectNetwork structure with nodes at points of contact with other peopleMix of other typesMix of other typesLittle or noneLittle or noneLittle or noneModerate to highLowLow to moderateHigh to almost totalLow to moderateMixedHigh to almost totalOrganic or SimpleFunctional(centralized)Multi-divisional(may replicate functions for each division with little centralization)Matrix – strongMatrix – weakMatrix – balancedProject-oriented(composite, hybrid)VirtualHybridPMO*Part-time; may or may not be a designated job role like coordinatorPart-time; may or may not be a designated job role like coordinator Part-time; may or may not be a designated job role like coordinatorFull-time designated job rolePart-time; done as part of another job and not a designated job role like coordinatorPart-time; embedded in the functions as a skill and may not be a designated job role like coordinatorFull-time designated job roleFull-time or part-timeMixedFull-time designated job roleLittle or noneLittle or noneLittle or noneModerate to highLowLow to moderateHigh to almost totalLow to moderateMixedHigh to almost totalOwner or operatorFunctional managerFunctional managerProject managerFunctional managerMixedProject managerMixedMixedProject managerProject ManagementAdministrativeStaffLittle or nonePart-timePart-timeFull-timePart-timePart-timeFull-timeCould be full-time or part-timeMixedFull-timeOrganizationalStructure TypeProject Characteristics *PMO refers to a portfolio, program, or project management office or organization.

48 Part 1 – Guide2.4.4.3 PROJECT MANAGEMENT OFFICEA project management ofﬁce (PMO) is an organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO can range from providing project management support functions to the direct management of one or more projects.There are several types of PMOs in organizations. Each type varies in the degree of control and inﬂuence it has on projects within the organization, such as:uuSupportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information, and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.uuControlling. Controlling PMOs provide support and require compliance through various means. The degree of control provided by the PMO is moderate. Compliance may involve:unAdoption of project management frameworks or methodologies;unUse of speciﬁc templates, forms, and tools; andunConformance to governance frameworks.uuDirective. Directive PMOs take control of the projects by directly managing the projects. Project managers are assigned by and report to the PMO. The degree of control provided by the PMO is high.The project management ofﬁce may have organization-wide responsibility. It may play a role in supporting strategic alignment and delivering organizational value. The PMO integrates data and information from organizational strategic projects and evaluates how higher-level strategic objectives are being fulﬁlled. The PMO is the natural liaison between the organization’s portfolios, programs, projects, and the organizational measurement systems (e.g., balanced scorecard).The projects supported or administered by the PMO may not be related other than by being managed together. The speciﬁc form, function, and structure of a PMO are dependent upon the needs of the organization that it supports.

��49A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life of each project in order to keep it aligned with the business objectives. The PMO may:uuMake recommendations,uuLead knowledge transfer,uuTerminate projects, anduuTake other actions, as required.A primary function of a PMO is to support project managers in a variety of ways, which may include but are not limited to:uuManaging shared resources across all projects administered by the PMO;uuIdentifying and developing project management methodology, best practices, and standards;uuCoaching, mentoring, training, and oversight;uuMonitoring compliance with project management standards, policies, procedures, and templates by means of project audits;uuDeveloping and managing project policies, procedures, templates, and other shared documentation (organizational process assets); anduuCoordinating communication across projects.

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��513THE ROLE OF THE PROJECT MANAGER3.1 OVERVIEWThe project manager plays a critical role in the leadership of a project team in order to achieve the project’s objectives. This role is clearly visible throughout the project. Many project managers become involved in a project from its initiation through closing. However, in some organizations, a project manager may be involved in evaluation and analysis activities prior to project initiation. These activities may include consulting with executive and business unit leaders on ideas for advancing strategic objectives, improving organizational performance, or meeting customer needs. In some organizational settings, the project manager may also be called upon to manage or assist in business analysis, business case development, and aspects of portfolio management for a project. A project manager may also be involved in follow-on activities related to realizing business beneﬁts from the project. The role of a project manager may vary from organization to organization. Ultimately, the project management role is tailored to ﬁt the organization in the same way that the project management processes are tailored to ﬁt the project.A simple analogy may help in understanding the roles of a project manager for a large project by comparing them to the roles of a conductor for a large orchestra:uuMembership and roles. A large project and an orchestra each comprise many members, each playing a different role. A large orchestra may have more than 100 musicians who are led by a conductor. These musicians may play 25 different kinds of instruments placed into major sections, such as strings, woodwinds, brass, and percussion. Similarly, a large project may have more than 100 project members led by a project manager. Team members may fulﬁll many different roles, such as design, manufacturing, and facilities management. Like the major sections of the orchestra, they represent multiple business units or groups within an organization. The musicians and the project members make up each leader’s team.uuResponsibility for team. The project manager and conductor are both responsible for what their teams produce—the project outcome or the orchestra concert, respectively. The two leaders need to take a holistic view of their team’s products in order to plan, coordinate, and complete them. The two leaders begin by reviewing the vision, mission, and objectives of their respective organizations to ensure alignment with their products. The two leaders establish their interpretation of the vision, mission, and objectives involved in successfully completing their products. The leaders use their interpretation to communicate and motivate their teams toward the successful completion of their objectives.

52 Part 1 – GuideuuKnowledge and skills:unThe conductor is not expected to be able to play every instrument in the orchestra, but should possess musical knowledge, understanding, and experience. The conductor provides the orchestra with leadership, planning, and coordination through communications. The conductor provides written communication in the form of musical scores and practice schedules. The conductor also communicates in real time with the team by using a baton and other body movements.unThe project manager is not expected to perform every role on the project, but should possess project management knowledge, technical knowledge, understanding, and experience. The project manager provides the project team with leadership, planning, and coordination through communications. The project manager provides written communications (e.g., documented plans and schedules) and communicates in real time with the team using meetings and verbal or nonverbal cues.The remainder of this section covers the key aspects of the role of the project manager. While there are thousands of books and articles available on the subject, this section is not intended to cover the entire spectrum of information available. Rather, it is designed to present an overview that will provide the practitioner with a basic understanding of the subject in preparation for a more concentrated study on the various aspects discussed.3.2 DEFINITION OF A PROJECT MANAGERThe role of a project manager is distinct from that of a functional manager or operations manager. Typically, the functional manager focuses on providing management oversight for a functional or business unit. Operations managers are responsible for ensuring that business operations are efﬁcient. The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.3.3 THE PROJECT MANAGER’S SPHERE OF INFLUENCE3.3.1 OVERVIEWProject managers fulﬁll numerous roles within their sphere of inﬂuence. These roles reﬂect the project manager’s capabilities and are representative of the value and contributions of the project management profession. This section highlights the roles of the project manager in the various spheres of inﬂuence shown in Figure 3-1.

��53ProjectManagerProject TeamPPP ManagersResource ManagersSponsorsGoverning BodiesSteering CommitteesPMOsStakeholdersSuppliersCustomersEnd UsersFigure 3-1. Example of Project Manager’s Sphere of Influence3.3.2 THE PROJECTThe project manager leads the project team to meet the project’s objectives and stakeholders’ expectations. The project manager works to balance the competing constraints on the project with the resources available.The project manager also performs communication roles between the project sponsor, team members, and other stakeholders. This includes providing direction and presenting the vision of success for the project. The project manager uses soft skills (e.g., interpersonal skills and the ability to manage people) to balance the conﬂicting and competing goals of the project stakeholders in order to achieve consensus. In this context, consensus means that the relevant stakeholders support the project decisions and actions even when there is not 100% agreement.Research shows that successful project managers consistently and effectively use certain essential skills. Research reveals that the top 2% of project managers as designated by their bosses and team members distinguish themselves by demonstrating superior relationship and communication skills while displaying a positive attitude [12].

54 Part 1 – GuideThe ability to communicate with stakeholders, including the team and sponsors applies across multiple aspects of the project including, but not limited to, the following:uuDeveloping ﬁnely tuned skills using multiple methods (e.g., verbal, written, and nonverbal);uuCreating, maintaining, and adhering to communications plans and schedules;uuCommunicating predictably and consistently;uuSeeking to understand the project stakeholders’ communication needs (communication may be the only deliverable that some stakeholders received until the project’s end product or service is completed);uuMaking communications concise, clear, complete, simple, relevant, and tailored;uuIncluding important positive and negative news;uuIncorporating feedback channels; anduuRelationship skills involving the development of extensive networks of people throughout the project manager’s spheres of inﬂuence. These networks include formal networks such as organizational reporting structures. However, the informal networks that project managers develop, maintain, and nurture are more important. Informal networks include the use of established relationships with individuals such as subject matter experts and inﬂuential leaders. Use of these formal and informal networks allows the project manager to engage multiple people in solving problems and navigating the bureaucracies encountered in a project.3.3.3 THE ORGANIZATIONThe project manager proactively interacts with other project managers. Other independent projects or projects that are part of the same program may impact a project due to but not limited to the following:uuDemands on the same resources,uuPriorities of funding,uuReceipt or distribution of deliverables, anduuAlignment of project goals and objectives with those of the organization.Interacting with other project managers helps to create a positive inﬂuence for fulﬁlling the various needs of the project. These needs may be in the form of human, technical, or ﬁnancial resources and deliverables required by the team for project completion. The project manager seeks ways to develop relationships that assist the team in achieving the goals and objectives of the project.

55In addition, the project manager maintains a strong advocacy role within the organization. The project manager proactively interacts with managers within the organization during the course of the project. The project manager also works with the project sponsor to address internal political and strategic issues that may impact the team or the viability or quality of the project.The project manager may work toward increasing the project management competency and capability within the organization as a whole and is involved in both tacit and explicit knowledge transfer or integration initiatives (see Section 4.4 on Manage Project Knowledge). The project manager also works to:uuDemonstrate the value of project management,uuIncrease acceptance of project management in the organization, anduuAdvance the efﬁcacy of the PMO when one exists in the organization.Depending on the organizational structure, a project manager may report to a functional manager. In other cases, a project manager may be one of several project managers who report to a PMO or a portfolio or program manager who is ultimately responsible for one or more organization-wide projects. The project manager works closely with all relevant managers to achieve the project objectives and to ensure the project management plan aligns with the portfolio or program plan. The project manager also works closely and in collaboration with other roles, such as organizational managers, subject matter experts, and those involved with business analysis. In some situations, the project manager may be an external consultant placed in a temporary management role.3.3.4 THE INDUSTRYThe project manager stays informed about current industry trends. The project manager takes this information and sees how it may impact or apply to the current projects. These trends include but are not limited to:uuProduct and technology development;uuNew and changing market niches;uuStandards (e.g., project management, quality management, information security management);uuTechnical support tools;uuEconomic forces that impact the immediate project;uuInﬂuences affecting the project management discipline; anduuProcess improvement and sustainability strategies.

56 Part 1 – Guide3.3.5 PROFESSIONAL DISCIPLINEContinuing knowledge transfer and integration is very important for the project manager. This professional development is ongoing in the project management profession and in other areas where the project manager maintains subject matter expertise. This knowledge transfer and integration includes but is not limited to:uuContribution of knowledge and expertise to others within the profession at the local, national, and global levels (e.g., communities of practice, international organizations); anduuParticipation in training, continuing education, and development:unIn the project management profession (e.g., universities, PMI);unIn a related profession (e.g., systems engineering, conﬁguration management); andunIn other professions (e.g., information technology, aerospace).3.3.6 ACROSS DISCIPLINESA professional project manager may choose to orient and educate other professionals regarding the value of a project management approach to the organization. The project manager may serve as an informal ambassador by educating the organization as to the advantages of project management with regard to timeliness, quality, innovation, and resource management.3.4 PROJECT MANAGER COMPETENCES3.4.1 OVERVIEWRecent PMI studies applied the Project Manager Competency Development (PMCD) Framework to the skills needed by project managers through the use of The PMI Talent Triangle® shown in Figure 3-2. The talent triangle focuses on three key skill sets:uuTechnical project management. The knowledge, skills, and behaviors related to speciﬁc domains of project, program, and portfolio management. The technical aspects of performing one’s role.uuLeadership. The knowledge, skills, and behaviors needed to guide, motivate, and direct a team, to help an organization achieve its business goals.uuStrategic and business management. The knowledge of and expertise in the industry and organization that enhanced performance and better delivers business outcomes.

��57TMTechnical ProjectManagementLeadership©Project Management Institute. All rights reserved.Strategic andBusiness ManagementThe PMI Talent Triangle®Figure 3-2. The PMI Talent Triangle®While technical project management skills are core to program and project management, PMI research indicates that they are not enough in today’s increasingly complicated and competitive global marketplace. Organizations are seeking added skills in leadership and business intelligence. Members of various organizations state their belief that these competencies can support longer-range strategic objectives that contribute to the bottom line. To be the most effective, project managers need to have a balance of these three skill sets.

58 Part 1 – Guide3.4.2 TECHNICAL PROJECT MANAGEMENT SKILLSTechnical project management skills are deﬁned as the skills to effectively apply project management knowledge to deliver the desired outcomes for programs or projects. There are numerous technical project management skills. The Knowledge Areas in this guide describe many of these necessary project management skills. Project managers frequently rely on expert judgment to perform well. Being aware of personal expertise and where to ﬁnd others with the needed expertise are important for success as a project manager.According to research. the top project managers consistently demonstrated several key skills including, but not limited to, the ability to:uuFocus on the critical technical project management elements for each project they manage. This focus is as simple as having the right artifacts readily available. At the top of the list were the following:unCritical success factors for the project,unSchedule,unSelected ﬁnancial reports, andunIssue log.uuTailor both traditional and agile tools, techniques, and methods for each project.uuMake time to plan thoroughly and prioritize diligently.uuManage project elements, including, but not limited to, schedule, cost, resources, and risks.3.4.3 STRATEGIC AND BUSINESS MANAGEMENT SKILLSStrategic and business management skills involve the ability to see the high-level overview of the organization and effectively negotiate and implement decisions and actions that support strategic alignment and innovation. This ability may include a working knowledge of other functions such as ﬁnance, marketing, and operations. Strategic and business management skills may also include developing and applying pertinent product and industry expertise. This business knowledge is also known as domain knowledge. Project managers should be knowledgeable enough about the business to be able to:uuExplain to others the essential business aspects of a project;uuWork with the project sponsor, team, and subject matter experts to develop an appropriate project delivery strategy; anduuImplement that strategy in a way that maximizes the business value of the project.

��59In order to make the best decisions regarding the successful delivery of their projects, project managers should seek out and consider the expertise of the operational managers who run the business in their organization. These managers should know the work performed in their organization and how project plans will affect that work. The more the project manager is able to know about the project’s subject matter, the better. At a minimum, the project manager should be knowledgeable enough to explain to others the following aspects of the organization:uuStrategy;uuMission;uuGoals and objectives;uuProducts and services;uuOperations (e.g., location, type, technology);uuThe market and the market condition, such as customers, state of the market (i.e., growing or shrinking), and time-to-market factors, etc.; anduuCompetition (e.g., what, who, position in the market place).The project manager should apply the following knowledge and information about the organization to the project to ensure alignment:uuStrategy,uuMission,uuGoals and objectives,uuPriority,uuTactics, anduuProducts or services (e.g., deliverables).

60 Part 1 – GuideStrategic and business skills help the project manager to determine which business factors should be considered for their project. The project manager determines how these business and strategic factors could affect the project while understanding the interrelationship between the project and the organization. These factors include but are not limited to:uuRisks and issues,uuFinancial implications,uuCost versus beneﬁts analysis (e.g., net present value, return on investment), including the various options considered,uuBusiness value,uuBeneﬁts realization expectations and strategies, anduuScope, budget, schedule, and quality.Through the application of this business knowledge, a project manager has the ability to make the appropriate decisions and recommendations for a project. As conditions change, the project manager should be continuously working with the project sponsor to keep the business and the project strategies aligned.3.4.4 LEADERSHIP SKILLSLeadership skills involve the ability to guide, motivate, and direct a team. These skills may include demonstrating essential capabilities such as negotiation, resilience, communication, problem solving, critical thinking, and interpersonal skills. Projects are becoming increasingly more complicated with more and more businesses executing their strategy through projects. Project management is more than just working with numbers, templates, charts, graphs, and computing systems. A common denominator in all projects is people. People can be counted, but they are not numbers.3.4.4.1 DEALING WITH PEOPLEA large part of the project manager’s role involves dealing with people. The project manager should study people’s behaviors and motivations. The project manager should strive to be a good leader, because leadership is crucial to the success of projects in organizations. A project manager applies leadership skills and qualities when working with all project stakeholders, including the project team, the steering team, and project sponsors.

��613.4.4.2 QUALITIES AND SKILLS OF A LEADERResearch shows that the qualities and skills of a leader include but are not limited to:uuBeing a visionary (e.g., help to describe the products, goals, and objectives of the project; able to dream and translate those dreams for others);uuBeing optimistic and positive;uuBeing collaborative;uuManaging relationships and conﬂict by:unBuilding trust;unSatisfying concerns;unSeeking consensus;unBalancing competing and opposing goals;unApplying persuasion, negotiation, compromise, and conﬂict resolution skills;unDeveloping and nurturing personal and professional networks;unTaking a long-term view that relationships are just as important as the project; andunContinuously developing and applying political acumen.uuCommunicating by:unSpending sufﬁcient time communicating (research shows that top project managers spend about 90% of their time on a project in communicating);unManaging expectations;unAccepting feedback graciously; unGiving feedback constructively; andunAsking and listening.uuBeing respectful (helping others retain their autonomy), courteous, friendly, kind, honest, trustworthy, loyal, and ethical;uuExhibiting integrity and being culturally sensitive, courageous, a problem solver, and decisive;uuGiving credit to others where due;uuBeing a life-long learner who is results- and action-oriented;

62 Part 1 – GuideuuFocusing on the important things, including:unContinuously prioritizing work by reviewing and adjusting as necessary;unFinding and using a prioritization method that works for them and the project;unDifferentiating high-level strategic priorities, especially those related to critical success factors for the project;unMaintaining vigilance on primary project constraints;unRemaining ﬂexible on tactical priorities; andunBeing able to sift through massive amounts of information to obtain the most important information.uuHaving a holistic and systemic view of the project, taking into account internal and external factors equally;uuBeing able to apply critical thinking (e.g., application of analytical methods to reach decisions) and identify him or herself as a change agent.uuBeing able to build effective teams, be service-oriented, and have fun and share humor effectively with team members.3.4.4.3 POLITICS, POWER, AND GETTING THINGS DONELeadership and management are ultimately about being able to get things done. The skills and qualities noted help the project manager to achieve the project goals and objectives. At the root of many of these skills and qualities is the ability to deal with politics. Politics involves inﬂuence, negotiation, autonomy, and power.Politics and its associated elements are not “good” or “bad,” “positive” or “negative” alone. The better the project manager understands how the organization works, the more likely he or she will be successful. The project manager observes and collects data about the project and organizational landscapes. The data then needs to be reviewed in the context of the project, the people involved, the organization, and the environment as a whole. This review yields the information and knowledge necessary for the project manager to plan and implement the most appropriate action. The project manager’s action is a result of selecting the right kind of power to inﬂuence and negotiate with others. Exercise of power also carries with it the responsibility of being sensitive to and respectful of other people. The effective action of the project manager maintains the autonomy of those involved. The project manager’s action results in the right people performing the activities necessary to fulﬁll the project’s objectives.

��63Power can originate with traits exhibited by the individual or the organization. Power is often supported by other people’s perception of the leader. It is essential for project managers to be aware of their relationships with other people. Relationships enable project managers to get things done on the project. There are numerous forms of power at the disposal of project managers. Power and its use can be complex given its nature and the various factors at play in a project. Various forms of power include but are not limited to:uuPositional (sometimes called formal, authoritative, legitimate) (e.g., formal position granted in the organization or team);uuInformational (e.g., control of gathering or distribution);uuReferent (e.g., respect or admiration others hold for the individual, credibility gained);uuSituational (e.g., gained due to unique situation such as a speciﬁc crisis);uuPersonal or charismatic (e.g., charm, attraction);uuRelational (e.g., participates in networking, connections, and alliances);uuExpert (e.g., skill, information possessed; experience, training, education, certiﬁcation);uuReward-oriented (e.g., ability to give praise, monetary or other desired items);uuPunitive or coercive (e.g., ability to invoke discipline or negative consequences);uuIngratiating (e.g., application of ﬂattery or other common ground to win favor or cooperation);uuPressure-based (e.g., limit freedom of choice or movement for the purpose of gaining compliance to desired action);uuGuilt-based (e.g., imposition of obligation or sense of duty);uuPersuasive (e.g., ability to provide arguments that move people to a desired course of action); anduuAvoiding (e.g., refusing to participate).Top project managers are proactive and intentional when it comes to power. These project managers will work to acquire the power and authority they need within the boundaries of organizational policies, protocols, and procedures rather than wait for it to be granted.

64 Part 1 – Guide3.4.5 COMPARISON OF LEADERSHIP AND MANAGEMENTThe words leadership and management are often used interchangeably. However, they are not synonymous. The word management is more closely associated with directing another person to get from one point to another using a known set of expected behaviors. In contrast, leadership involves working with others through discussion or debate in order to guide them from one point to another.The method that a project manager chooses to employ reveals a distinct difference in behavior, self-perception, and project role. Table 3-1 compares management and leadership on several important levels.Project managers need to employ both leadership and management in order to be successful. The skill is in ﬁnding the right balance for each situation. The way in which management and leadership are employed often shows up in the project manager’s leadership style.Table 3-1. Team Management and Team Leadership ComparedManagementLeadershipGuide, influence, and collaborate using relational powerDevelopInnovateFocus on relationships with peopleInspire trustFocus on long-range visionAsk what and whyFocus on the horizonChallenge status quoDo the right thingsFocus on vision, alignment, motivation, and inspirationDirect using positional powerMaintainAdministrateFocus on systems and structureRely on controlFocus on near-term goalsAsk how and whenFocus on bottom lineAccept status quoDo things rightFocus on operational issues and problem solving

��653.4.5.1 LEADERSHIP STYLESProject managers may lead their teams in many ways. The style a project manager selects may be a personal preference, or the result of the combination of multiple factors associated with the project. The style a project manager uses may change over time based on the factors in play. Major factors to consider include but are not limited to:uuLeader characteristics (e.g., attitudes, moods, needs, values, ethics);uuTeam member characteristics (e.g., attitudes, moods, needs, values, ethics);uuOrganizational characteristics (e.g., its purpose, structure, and type of work performed); anduuEnvironmental characteristics (e.g., social situation, economic state, and political elements).Research describes numerous leadership styles that a project manager can adopt. Some of the most common examples of these styles include but are not limited to:uuLaissez-faire (e.g., allowing the team to make their own decisions and establish their own goals, also referred to as taking a hands-off style);uuTransactional (e.g., focus on goals, feedback, and accomplishment to determine rewards; management by exception);uuServant leader (e.g., demonstrates commitment to serve and put other people ﬁrst; focuses on other people’s growth, learning, development, autonomy, and well-being; concentrates on relationships, community and collaboration; leadership is secondary and emerges after service);uuTransformational (e.g., empowering followers through idealized attributes and behaviors, inspirational motivation, encouragement for innovation and creativity, and individual consideration);uuCharismatic (e.g., able to inspire; is high-energy, enthusiastic, self-conﬁdent; holds strong convictions); anduuInteractional (e.g., a combination of transactional, transformational, and charismatic).

66 Part 1 – Guide3.4.5.2 PERSONALITYPersonality refers to the individual differences in characteristic patterns of thinking, feeling, and behaving. Personality characteristics or traits include but are not limited to:uuAuthentic (e.g., accepts others for what and who they are, show open concern);uuCourteous (e.g., ability to apply appropriate behavior and etiquette);uuCreative (e.g., ability to think abstractly, to see things differently, to innovate);uuCultural (e.g., measure of sensitivity to other cultures including values, norms, and beliefs);uuEmotional (e.g., ability to perceive emotions and the information they present and to manage them; measure of interpersonal skills);uuIntellectual (e.g., measure of human intelligence over multiple aptitudes);uuManagerial (e.g., measure of management practice and potential);uuPolitical (e.g., measure of political intelligence and making things happen);uuService-oriented (e.g., evidence of willingness to serve other people);uuSocial (e.g., ability to understand and manage people); anduuSystemic (e.g., drive to understand and build systems).An effective project manager will have some level of ability with each of these characteristics in order to be successful. Each project, organization, and situation requires that the project manager emphasize different aspects of personality.3.5 PERFORMING INTEGRATIONThe role of the project manager is twofold when performing integration on the project:uuProject managers play a key role in working with the project sponsor to understand the strategic objectives and ensure the alignment of the project objectives and results with those of the portfolio, program, and business areas. In this way, project managers contribute to the integration and execution of the strategy.uuProject managers are responsible for guiding the team to work together to focus on what is really essential at the project level. This is achieved through the integration of processes, knowledge, and people.Integration is a critical skill for project managers. Integration is covered more in depth in the Project Integration Management Knowledge Area of this guide. Sections 3.5.1 through 3.5.4 focus on integration that takes place at three different levels: the process, cognitive, and context levels. Section 3.5.4 concludes by addressing complexity and integration.

673.5.1 PERFORMING INTEGRATION AT THE PROCESS LEVELProject management may be seen as a set of processes and activities that are undertaken to achieve the project objectives. Some of these processes may take place once (e.g., the initial creation of the project charter), but many others overlap and occur several times throughout the project. One example of this process overlap and multiple occurrences is a change in a requirement that impacts scope, schedule, or budget and requires a change request. Several project management processes such as the Control Scope process and the Perform Integrated Change Control process may involve a change request. The Perform Integrated Change Control process occurs throughout the project for integrating change requests.Although there is no stated deﬁnition on how to integrate the project processes, it is clear that a project has a small chance of meeting its objective when the project manager fails to integrate the project processes where they interact.3.5.2 INTEGRATION AT THE COGNITIVE LEVELThere are many different ways to manage a project, and the method selected typically depends on the speciﬁc characteristics of the project including its size, how complicated the project or organization may be, and the culture of the performing organization. It is clear that the personal skills and abilities of the project manager are closely related to the way in which the project is managed.The project manager should strive to become proﬁcient in all of the Project Management Knowledge Areas. In concert with proﬁciency in these Knowledge Areas, the project manager applies experience, insight, leadership, and technical and business management skills to the project. Finally, it is through the project manager’s ability to integrate the processes in these Knowledge Areas that makes it possible to achieve the desired project results.3.5.3 INTEGRATION AT THE CONTEXT LEVELThere have been many changes in the context in which business and projects take place today compared to a few decades ago. New technologies have been introduced. Social networks, multicultural aspects, virtual teams, and new values are part of the new reality of projects. An example is knowledge and people integration in the context of a large cross-functional project implementation involving multiple organizations. The project manager considers the implications of this context in communications planning and knowledge management for guiding the project team.Project managers need to be cognizant of the project context and these new aspects when managing the integration. Then project managers can decide how to best use these new elements of the environment in their projects to achieve success.

68 Part 1 – Guide3.5.4 INTEGRATION AND COMPLEXITYSome projects may be referred to as complex and considered difﬁcult to manage. In simple terms, complex and complicated are concepts often used to describe what is considered to be intricate or complicated.Complexity within projects is a result of the organization’s system behavior, human behavior, and the uncertainty at work in the organization or its environment. In Navigating Complexity: A Practice Guide [13], these three dimensions of complexity are deﬁned as:uuSystem behavior. The interdependencies of components and systems.uuHuman behavior. The interplay between diverse individuals and groups.uuAmbiguity. Uncertainty of emerging issues and lack of understanding or confusion.Complexity itself is a perception of an individual based on personal experience, observation, and skill. Rather than being complex, a project is more accurately described as containing complexity. Portfolios, programs, and projects may contain elements of complexity.When approaching the integration of a project, the project manager should consider elements that are both inside and outside of the project. The project manager should examine the characteristics or properties of the project. Complexity as a characteristic or property of a project is typically deﬁned as:uuContaining multiple parts,uuPossessing a number of connections between the parts,uuExhibiting dynamic interactions between the parts, anduuExhibiting behavior produced as a result of those interactions that cannot be explained as the simple sum of the parts (e.g., emergent behavior).Examining these various items that appear to make the project complex should help the project manager identify key areas when planning, managing, and controlling the project to ensure integration.

��694PROJECT INTEGRATION MANAGEMENTProject 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. In the project management context, integration includes characteristics of uniﬁcation, consolidation, communication, and interrelationship. These actions should be applied from the start of the project through completion. Project Integration Management includes making choices about:uuResource allocation,uuBalancing competing demands,uuExamining any alternative approaches,uuTailoring the processes to meet the project objectives, anduuManaging the interdependencies among the Project Management Knowledge Areas.

��70 Part 1 – GuideThe Project Integration Management processes are:4.1 Develop Project Charter—The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.4.2 Develop Project Management Plan—The process of deﬁning, preparing, and coordinating all plan components and consolidating them into an integrated project management plan.4.3 Direct and Manage Project Work—The process of leading and performing the work deﬁned in the project management plan and implementing approved changes to achieve the project’s objectives.4.4 Manage Project Knowledge—The process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning.4.5 Monitor and Control Project Work—The process of tracking, reviewing, and reporting overall progress to meet the performance objectives deﬁned in the project management plan.4.6 Perform Integrated Change Control—The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating the decisions.4.7 Close Project or Phase—The process of ﬁnalizing all activities for the project, phase, or contract.Figure 4-1 provides an overview of the Project Integration Management processes. The Project Integration Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

��71.1 Inputs .1 Business documents .2 Agreements .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Interpersonal and team skills .4 Meetings.3 Outputs .1 Project charter .2 Assumption logProject IntegrationManagement Overview4.1 DevelopProject Charter.1 Inputs .1 Project charter .2 Outputs from other processes .3 Enterprise environmental factors .4 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Interpersonal and team skills .4 Meetings.3 Outputs .1 Project management plan4.2 Develop ProjectManagement Plan.1 Inputs .1 Project management plan .2 Project documents .3 Approved change requests .4 Enterprise environmental factors .5 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Project management information system .3 Meetings.3 Outputs .1 Deliverables .2 Work performance data .3 Issue log .4 Change requests .5 Project management plan updates .6 Project documents updates .7 Organizational process assets updates4.3 Direct and ManageProject Work.1 Inputs .1 Project management plan .2 Project documents .3 Work performance information .4 Agreements .5 Enterprise environmental factors .6 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Decision making .4 Meetings.3 Outputs .1 Work performance reports .2 Change requests .3 Project management plan updates .4 Project documents updates4.5 Monitor andControl Project Work.1 Inputs .1 Project management plan .2 Project documents .3 Work performance reports .4 Change requests .5 Enterprise environmental factors .6 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Change control tools .3 Data analysis .4 Decision making .5 Meetings.3 Outputs .1 Approved change requests .2 Project management plan updates .3 Project documents updates4.6 Perform IntegratedChange Control.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Accepted deliverables .5 Business documents .6 Agreements .7 Procurement documentation .8 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Meetings.3 Outputs .1 Project documents updates .2 Final product, service, or result transition .3 Final report .4 Organizational process assets updates 4.7 Close Projector Phase.1 Inputs .1 Project management plan .2 Project documents .3 Deliverables .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Knowledge management .3 Information management .4 Interpersonal and team skills.3 Outputs .1 Lessons learned register .2 Project management plan updates .3 Organizational process assets updates 4.4 ManageProject KnowledgeFigure 4-1. Project Integration Management Overview

72 Part 1 – GuideKEY CONCEPTS FOR PROJECT INTEGRATION MANAGEMENTProject Integration Management is speciﬁc to project managers. Whereas other Knowledge Areas may be managed by specialists (e.g., cost analysis, scheduling specialists, risk management experts), the accountability of Project Integration Management cannot be delegated or transferred. The project manager is the one who combines the results in all the other Knowledge Areas and has the overall view of the project. The project manager is ultimately responsible for the project as a whole.Projects and project management are integrative by nature. For example, a cost estimate needed for a contingency plan involves integrating the processes in the Project Cost Management, Project Schedule Management, and Project Risk Management Knowledge Areas. When additional risks associated with various stafﬁng alternatives are identiﬁed, then one or more of those processes may be revisited.The links among the processes in the Project Management Process Groups are often iterative. For example, the Planning Process Group provides the Executing Process Group with a documented project management plan early in the project and then updates the project management plan if changes occur as the project progresses.Project Integration Management is about:uuEnsuring that the deliverable due dates of the product, service, or result; project life cycle; and the beneﬁts management plan are aligned;uuProviding a project management plan to achieve the project objectives;uuEnsuring the creation and the use of the appropriate knowledge to and from the project as necessary;uuManaging the performance and changes of the activities in the project management plan;uuMaking integrated decisions regarding key changes impacting the project;uuMeasuring and monitoring the project’s progress and taking appropriate action to meet project objectives;uuCollecting data on the results achieved, analyzing the data to obtain information, and communicating this information to relevant stakeholders; uuCompleting all the work of the project and formally closing each phase, contract, and the project as a whole; anduuManaging phase transitions when necessary.The more complex the project and the more varied the expectations of the stakeholders, the more a sophisticated approach to integration is needed.

73TRENDS AND EMERGING PRACTICES IN PROJECT INTEGRATION MANAGEMENTThe Project Integration Management Knowledge Area requires combining the results from all the other Knowledge Areas. Evolving trends in integration processes include but are not limited to: uuUse of automated tools. The volume of data and information that project managers need to integrate makes it necessary to use a project management information system (PMIS) and automated tools to collect, analyze, and use information to meet project objectives and realize project beneﬁts.uuUse of visual management tools. Some project teams use visual management tools, rather than written plans and other documents, to capture and oversee critical project elements. Making key project elements visible to the entire team provides a real-time overview of the project status, facilitates knowledge transfer, and empowers team members and other stakeholders to help identify and solve issues.uuProject knowledge management. The increasingly mobile and transitory work force requires a more rigorous process of identifying knowledge throughout the project life cycle and transferring it to the target audience so that the knowledge is not lost.uuExpanding the project manager’s responsibilities. Project managers are being called on to initiate and ﬁnalize the project, such as project business case development and beneﬁts management. Historically, these activities have been the responsibility of management and the project management ofﬁce, but project managers are more frequently collaborating with them to better meet project objectives and deliver beneﬁts. Project managers are also engaging in more comprehensive identiﬁcation and engagement of stakeholders. This includes managing the interfaces with various functional and operational departments and senior management personnel.uuHybrid methodologies. Some project management methodologies are evolving to incorporate successfully applied new practices. Examples include the use of agile and other iterative practices; business analysis techniques for requirements management; tools for identifying complex elements in projects; and organizational change management methods to prepare for transitioning the project outputs into the organization.

74 Part 1 – GuideTAILORING CONSIDERATIONSBecause each project is unique, the project manager may need to tailor the way that Project Integration Management processes are applied. Considerations for tailoring include but are not limited to:uuProject life cycle. What is an appropriate project life cycle? What phases should comprise the project life cycle?uuDevelopment life cycle. What development life cycle and approach are appropriate for the product, service, or result? Is a predictive or adaptive approach appropriate? If adaptive, should the product be developed incrementally or iteratively? Is a hybrid approach best?uuManagement approaches. What management processes are most effective based on the organizational culture and the complexity of the project?uuKnowledge management. How will knowledge be managed in the project to foster a collaborative working environment?uuChange. How will change be managed in the project?uuGovernance. What control boards, committees, and other stakeholders are part of the project? What are the project status reporting requirements?uuLessons learned. What information should be collected throughout and at the end of the project? How will historical information and lessons learned be made available to future projects?uuBenefits. When and how should beneﬁts be reported: at the end of the project or at the end of each iteration or phase?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSIterative and agile approaches promote the engagement of team members as local domain experts in integration management. The team members determine how plans and components should integrate.The expectations of the project manager as noted in the Key Concepts for Integration Management do not change in an adaptive environment, but control of the detailed product planning and delivery is delegated to the team. The project manager’s focus is on building a collaborative decision-making environment and ensuring the team has the ability to respond to changes. This collaborative approach can be further enhanced when team members possess a broad skill base rather than a narrow specialization.

��754.1 DEVELOP PROJECT CHARTERDevelop Project Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. The key beneﬁts of this process are that it provides a direct link between the project and the strategic objectives of the organization, creates a formal record of the project, and shows the organizational commitment to the project. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-2. Figure 4-3 depicts the data ﬂow diagram for the process.Figure 4-2. Develop Project Charter: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDevelop Project Charter.1 Expert judgment .2 Data gathering• Brainstorming• Focus groups• Interviews.3 Interpersonal and team skills• Conflict management• Facilitation• Meeting management.4 Meetings.1 Business documents• Business case• Benefits management plan.2 Agreements.3 Enterprise environmental factors.4 Organizational process assets.1 Project charter.2 Assumption log

76 Part 1 – Guide• Enterprise environmental factors• Organizational process assetsBusiness documents• Business case• Benefits management plan• Assumption log•Agreements•Project charterBusinessDocuments5.1Plan ScopeManagement5.2 CollectRequirements5.3Define Scope6.1 Plan ScheduleManagement7.1Plan CostManagement8.1Plan QualityManagement9.1Plan ResourceManagement10.1PlanCommunicationsManagement11.1Plan RiskManagement12.1 Plan ProcurementManagement13.1IdentifyStakeholders13.2PlanStakeholderEngagement4.7Close Projector Phase4.2Develop ProjectManagementPlanEnterprise/OrganizationProjectDocuments4.1Develop ProjectCharterFigure 4-3. Develop Project Charter: Data Flow Diagram

��77The project charter establishes a partnership between the performing and requesting organizations. In the case of external projects, a formal contract is typically the preferred way to establish an agreement. A project charter may still be used to establish internal agreements within an organization to ensure proper delivery under the contract. The approved project charter formally initiates the project. A project manager is identiﬁed and assigned as early in the project as is feasible, preferably while the project charter is being developed and always prior to the start of planning. The project charter can be developed by the sponsor or the project manager in collaboration with the initiating entity. This collaboration allows the project manager to have a better understanding of the project purpose, objectives, and expected beneﬁts. This understanding will better allow for efﬁcient resource allocation to project activities. The project charter provides the project manager with the authority to plan, execute, and control the project.Projects are initiated by an entity external to the project such as a sponsor, program, or project management ofﬁce (PMO), or a portfolio governing body chairperson or authorized representative. The project initiator or sponsor should be at a level that is appropriate to procure funding and commit resources to the project. Projects are initiated due to internal business needs or external inﬂuences. These needs or inﬂuences often trigger the creation of a needs analysis, feasibility study, business case, or description of the situation that the project will address. Chartering a project validates alignment of the project to the strategy and ongoing work of the organization. A project charter is not considered to be a contract because there is no consideration or money promised or exchanged in its creation.4.1.1 DEVELOP PROJECT CHARTER: INPUTS4.1.1.1 BUSINESS DOCUMENTSThe business case (described in Section 1.2.6.1) and the beneﬁts management plan (described in Section 1.2.6.2) are sources of information about the project´s objectives and how the project will contribute to the business goals. Although the business documents are developed prior to the project, they are reviewed periodically.uuBusiness case. The approved business case, or similar, is the business document most commonly used to create the project charter. The business case describes the necessary information from a business standpoint to determine whether the expected outcomes of the project justify the required investment. It is commonly used for decision making by managers or executives above the project level. Typically, the business need and the cost-beneﬁt analysis are contained in the business case to justify and establish boundaries for the project. For more information on the business case, see Section 1.2.6.1. The business case is created as a result of one or more of the following:

78 Part 1 – GuideunMarket demand (e.g., an automobile manufacturer authorizing a project to build more fuel-efﬁcient cars in response to gasoline shortages),unOrganizational need (e.g., due to high overhead costs, a company may combine staff functions and streamline processes to reduce costs),unCustomer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park),unTechnological advance (e.g., an airline authorizing a new project to develop electronic tickets instead of paper tickets based on technological advances),unLegal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials),unEcological impacts (e.g., a company authorizing a project to lessen its environmental impact), orunSocial need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera).The project charter incorporates the appropriate information for the project from the business documents. The project manager does not update or modify the business documents since they are not project documents; however, the project manager may make recommendations.4.1.1.2 AGREEMENTSDescribed in Section 12.2.3.2. Agreements are used to deﬁne initial intentions for a project. Agreements may take the form of contracts, memorandums of understanding (MOUs), service level agreements (SLA), letters of agreement, letters of intent, verbal agreements, email, or other written agreements. Typically, a contract is used when a project is being performed for an external customer.4.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Develop Project Charter process include but are not limited to:uuGovernment or industry standards (e.g., product standards, quality standards, safety standards, and workmanship standards),uuLegal and regulatory requirements and/or constraints,uuMarketplace conditions,uuOrganizational culture and political climate,uuOrganizational governance framework (a structured way to provide control, direction, and coordination through people, policies, and processes to meet organizational strategic and operational goals), anduuStakeholders’ expectations and risk thresholds.

��794.1.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Develop Project Charter process include but are not limited to:uuOrganizational standard policies, processes, and procedures;uuPortfolio, program, and project governance framework (governance functions and processes to provide guidance and decision making);uuMonitoring and reporting methods;uuTemplates (e.g., project charter template); anduuHistorical information and lessons learned repository (e.g., project records and documents, information about the results of previous project selection decisions, and information about previous project performance).4.1.2 DEVELOP PROJECT CHARTER: TOOLS AND TECHNIQUES4.1.2.1 EXPERT JUDGMENTExpert judgment is deﬁned as judgment provided based upon expertise in an application area, Knowledge Area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.For this process, expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics:uuOrganizational strategy,uuBeneﬁts management,uuTechnical knowledge of the industry and focus area of the project,uuDuration and budget estimation, anduuRisk identiﬁcation.

80 Part 1 – Guide4.1.2.2 DATA GATHERINGData-gathering techniques that can be used for this process include but are not limited to:uuBrainstorming. This technique is used to identify a list of ideas in a short period of time. It is conducted in a group environment and is led by a facilitator. Brainstorming comprises two parts: idea generation and analysis. Brainstorming can be used to gather data and solutions or ideas from stakeholders, subject matter experts, and team members when developing the project charter.uuFocus groups. Described in Section 5.2.2.2. Focus groups bring together stakeholders and subject matter experts to learn about the perceived project risk, success criteria, and other topics in a more conversational way than a one-on-one interview.uuInterviews. Described in Section 5.2.2.2. Interviews are used to obtain information on high-level requirements, assumptions or constraints, approval criteria, and other information from stakeholders by talking directly to them.4.1.2.3 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to:uuConflict management. Described in Section 9.5.2.1. Conﬂict management can be used to help bring stakeholders into alignment on the objectives, success criteria, high-level requirements, project description, summary milestones, and other elements of the charter.uuFacilitation. Facilitation is the ability to effectively guide a group event to a successful decision, solution, or conclusion. A facilitator ensures that there is effective participation, that participants achieve a mutual understanding, that all contributions are considered, that conclusions or results have full buy-in according to the decision process established for the project, and that the actions and agreements achieved are appropriately dealt with afterward.uuMeeting management. Described in Section 10.2.2.6. Meeting management includes preparing the agenda, ensuring that a representative for each key stakeholder group is invited, and preparing and sending the follow-up minutes and actions.4.1.2.4 MEETINGSFor this process, meetings are held with key stakeholders to identify the project objectives, success criteria, key deliverables, high-level requirements, summary milestones, and other summary information.

��814.1.3 DEVELOP PROJECT CHARTER: OUTPUTS4.1.3.1 PROJECT CHARTERThe project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. It documents the high-level information on the project and on the product, service, or result the project is intended to satisfy, such as:uuProject purpose;uuMeasurable project objectives and related success criteria;uuHigh-level requirements;uuHigh-level project description, boundaries, and key deliverables;uuOverall project risk;uuSummary milestone schedule;uuPreapproved ﬁnancial resources;uuKey stakeholder list;uuProject approval requirements (i.e., what constitutes project success, who decides the project is successful, and who signs off on the project);uuProject exit criteria (i.e., what are the conditions to be met in order to close or to cancel the project or phase);uuAssigned project manager, responsibility, and authority level; anduuName and authority of the sponsor or other person(s) authorizing the project charter.At a high level, the project charter ensures a common understanding by the stakeholders of the key deliverables, milestones, and the roles and responsibilities of everyone involved in the project.4.1.3.2 ASSUMPTION LOGHigh-level strategic and operational assumptions and constraints are normally identiﬁed in the business case before the project is initiated and will ﬂow into the project charter. Lower-level activity and task assumptions are generated throughout the project such as deﬁning technical speciﬁcations, estimates, the schedule, risks, etc. The assumption log is used to record all assumptions and constraints throughout the project life cycle.

82 Part 1 – Guide4.2 DEVELOP PROJECT MANAGEMENT PLANDevelop Project Management Plan is the process of deﬁning, preparing, and coordinating all plan components and consolidating them into an integrated project management plan. The key beneﬁt of this process is the production of a comprehensive document that deﬁnes the basis of all project work and how the work will be performed. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-4. Figure 4-5 depicts the data ﬂow diagram for the process.Figure 4-4. Develop Project Management Plan: Inputs, Tools & Techniques, and OutputsFigure 4-5. Develop Project Management Plan: Data Flow DiagramTools & TechniquesInputsOutputsDevelop Project Management Plan.1 Expert judgment.2 Data gathering• Brainstorming• Checklists• Focus groups• Interviews.3 Interpersonal and team skills• Conflict management• Facilitation• Meeting management.4 Meetings.1 Project charter.2 Outputs from other processes.3 Enterprise environmental factors.4 Organizational process assets.1 Project management plan• Project charter4.2Develop ProjectManagementPlanEnterprise/Organization4.1Develop ProjectCharterOutputs fromOther Processes• Project management plan• Project charter• Any baseline orcomponent plan• Enterprise environmental factors• Organizational process assetsProjectManagementPlan

��83The project management plan deﬁnes how the project is executed, monitored and controlled, and closed. The project management plan’s content varies depending on the application area and complexity of the project.The project management plan may be either summary level or detailed. Each component plan is described to the extent required by the speciﬁc project. The project management plan should be robust enough to respond to an ever-changing project environment. This agility may result in more accurate information as the project progresses.The project management plan should be baselined; that is, it is necessary to deﬁne at least the project references for scope, time, and cost, so that the project execution can be measured and compared to those references and performance can be managed. Before the baselines are deﬁned, the project management plan may be updated as many times as necessary. No formal process is required at that time. But, once it is baselined, it may only be changed through the Perform Integrated Change Control process. Consequently, change requests will be generated and decided upon whenever a change is requested. This results in a project management plan that is progressively elaborated by controlled and approved updates extending through project closure.Projects that exist in the context of a program or portfolio should develop a project management plan that is consistent with the program or portfolio management plan. For example, if the program management plan indicates all changes exceeding a speciﬁed cost need to be reviewed by the change control board (CCB), then this process and cost threshold need to be deﬁned in the project management plan.4.2.1 DEVELOP PROJECT MANAGEMENT PLAN: INPUTS4.2.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project team uses the project charter as a starting point for initial project planning. The type and amount of information in the project charter varies depending on the complexity of the project and the information known at the time of its creation. At a minimum, the project charter should deﬁne the high-level information about the project that will be elaborated in the various components of the project management plan.4.2.1.2 OUTPUTS FROM OTHER PROCESSESOutputs from many of the other processes described in Sections 5 through 13 are integrated to create the project management plan. Subsidiary plans and baselines that are an output from other planning processes are inputs to this process. In addition, changes to these documents may necessitate updates to the project management plan.

84 Part 1 – Guide4.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Develop Project Management Plan process include but are not limited to:uuGovernment or industry standards (e.g., product standards, quality standards, safety standards, and workmanship standards);uuLegal and regulatory requirements and/or constraints;uuProject management body of knowledge for vertical market (e.g., construction) and/or focus area (e.g., environmental, safety, risk, or agile software development);uuOrganizational structure, culture, management practices, and sustainability;uuOrganizational governance framework (a structured way to provide control, direction, and coordination through people, policies, and processes to meet organizational strategic and operational goals); anduuInfrastructure (e.g., existing facilities and capital equipment).4.2.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Develop Project Management Plan process include but are not limited to:uuOrganizational standard policies, processes, and procedures;uuProject management plan template, including:unGuidelines and criteria for tailoring the organization’s set of standard processes to satisfy the speciﬁc needs of the project, andunProject closure guidelines or requirements such as the product validation and acceptance criteria.uuChange control procedures, including the steps by which ofﬁcial organizational standards, policies, plans, procedures, or any project documents will be modiﬁed and how any changes will be approved and validated;uuMonitoring and reporting methods, risk control procedures, and communication requirements;uuProject information from previous similar projects (e.g., scope, cost, schedule and performance measurement baselines, project calendars, project schedule network diagrams, and risk registers); anduuHistorical information and lessons learned repository.

��854.2.2 DEVELOP PROJECT MANAGEMENT PLAN: TOOLS AND TECHNIQUES4.2.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics:uuTailoring the project management process to meet the project needs, including the dependencies and interactions among those processes and the essential inputs and outputs;uuDeveloping additional components of the project management plan if needed;uuDetermining the tools and techniques to be used for accomplishing those processes;uuDeveloping technical and management details to be included in the project management plan;uuDetermining resources and skill levels needed to perform project work;uuDeﬁning the level of conﬁguration management to apply on the project;uuDetermining which project documents will be subject to the formal change control process; anduuPrioritizing the work on the project to ensure the project resources are allocated to the appropriate work at the appropriate time.4.2.2.2 DATA GATHERINGData-gathering techniques that can be used for this process include but are not limited to:uuBrainstorming. Described in Section 4.1.2.2. Brainstorming is frequently used when developing the project management plan to gather ideas and solutions about the project approach. Attendees include the project team members although other subject matter experts (SMEs) or stakeholders may also participate.uuChecklists. Described in Section 11.2.2.2. Many organizations have standardized checklists available based in their own experience or use checklists from the industry. A checklist may guide the project manager to develop the plan or may help to verify that all the required information is included in the project management plan.uuFocus groups. Described in Section 5.2.2.2. Focus groups bring together stakeholders to discuss the project management approach and the integration of the different components of the project management plan.uuInterviews. Described in Section 5.2.2.2. Interviews are used to obtain speciﬁc information from stakeholders to develop the project management plan or any component plan or project document.

86 Part 1 – Guide4.2.2.3 INTERPERSONAL AND TEAM SKILLSThe interpersonal and team skills used when developing the project management plan include:uuConflict management. Described in Section 9.5.2.1. Conﬂict management may be necessary to bring diverse stakeholders into alignment on all aspects of the project management plan.uuFacilitation. Described in Section 4.1.2.3. Facilitation ensures that there is effective participation, that participants achieve a mutual understanding, that all contributions are considered, and that conclusions or results have full buy-in according to the decision process established for the project.uuMeeting management. Described in Section 10.2.2.6. Meeting management is necessary to ensure that the numerous meetings that are necessary to develop, unify, and agree on the project management plan are well run.4.2.2.4 MEETINGSFor this process, meetings are used to discuss the project approach, determine how work will be executed to accomplish the project objectives, and establish the way the project will be monitored and controlled.The project kick-off meeting is usually associated with the end of planning and the start of executing. Its purpose is to communicate the objectives of the project, gain the commitment of the team for the project, and explain the roles and responsibilities of each stakeholder. The kick-off may occur at different points in time depending on the characteristics of the project:uuFor small projects, there is usually only one team that performs the planning and the execution. In this case, the kick-off occurs shortly after initiation, in the Planning Process Group, because the team is involved in planning.uuIn large projects, a project management team normally does the majority of the planning, and the remainder of the project team is brought on when the initial planning is complete, at the start of the development/implementation. In this instance, the kick-off meeting takes place with processes in the Executing Process Group.Multiphase projects will typically include a kick-off meeting at the beginning of each phase.4.2.3 DEVELOP PROJECT MANAGEMENT PLAN: OUTPUTS4.2.3.1 PROJECT MANAGEMENT PLANThe project management plan is the document that describes how the project will be executed, monitored and controlled, and closed. It integrates and consolidates all of the subsidiary management plans and baselines, and other information necessary to manage the project. The needs of the project determine which components of the project management plan are needed.

��87Project management plan components include but are not limited to:uuSubsidiary management plans:unScope management plan. Described in Section 5.1.3.1. Establishes how the scope will be deﬁned, developed, monitored, controlled, and validated.unRequirements management plan. Described in Section 5.1.3.2. Establishes how the requirements will be analyzed, documented, and managed.unSchedule management plan. Described in Section 6.1.3.1. Establishes the criteria and the activities for developing, monitoring, and controlling the schedule.unCost management plan. Described in Section 7.1.3.1. Establishes how the costs will be planned, structured, and controlled.unQuality management plan. Described in Section 8.1.3.1. Establishes how an organization´s quality policies, methodologies, and standards will be implemented in the project.unResource management plan. Described in Section 9.1.3.1 Provides guidance on how project resources should be categorized, allocated, managed, and released.unCommunications management plan. Described in Section 10.1.3.1. Establishes how, when, and by whom information about the project will be administered and disseminated.unRisk management plan. Described in Section 11.1.3.1. Establishes how the risk management activities will be structured and performed.unProcurement management plan. Described in Section 12.1.3.1. Establishes how the project team will acquire goods and services from outside of the performing organization.unStakeholder engagement plan. Described in Section 13.2.3.1. Establishes how stakeholders will be engaged in project decisions and execution, according to their needs, interests, and impact.uuBaselines:unScope baseline. Described in Section 5.4.3.1. The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, which is used as a basis for comparison.unSchedule baseline. Described in Section 6.5.3.1. The approved version of the schedule model that is used as a basis for comparison to the actual results.unCost baseline. Described in Section 7.3.3.1. The approved version of the time-phased project budget that is used as a basis for comparison to the actual results.

88 Part 1 – GuideuuAdditional components. Most components of the project management plan are produced as outputs from other processes, though some are produced during this process. Those components developed as part of this process will be dependent on the project; however, they often include but are not limited to:unChange management plan. Describes how the change requests throughout the project will be formally authorized and incorporated.unConﬁguration management plan. Describes how the information about the items of the project (and which items) will be recorded and updated so that the product, service, or result of the project remains consistent and/or operative.unPerformance measurement baseline. An integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance.unProject life cycle. Describes the series of phases that a project passes through from its initiation to its closure.unDevelopment approach. Describes the product, service, or result development approach, such as predictive, iterative, agile, or a hybrid model.unManagement reviews. Identiﬁes the points in the project when the project manager and relevant stakeholders will review the project progress to determine if performance is as expected, or if preventive or corrective actions are necessary.While the project management plan is one of the primary documents used to manage the project, other project documents are also used. These other documents are not part of the project management plan; however, they are necessary to manage the project effectively. Table 4-1 is a representative list of the project management plan components and project documents.

��89Table 4-1. Project Management Plan and Project Documents1. Scope management plan2. Requirements management plan3. Schedule management plan4. Cost management plan5. Quality management plan6. Resource management plan7. Communications management plan8. Risk management plan9. Procurement management plan 10. Stakeholder engagement plan 11. Change management plan 12. Configuration management plan 13. Scope baseline 14. Schedule baseline 15. Cost baseline 16. Performance measurement baseline 17. Project life cycle description 18. Development approach1. Activity attributes2. Activity list3. Assumption log4. Basis of estimates5. Change log6. Cost estimates7. Cost forecasts8. Duration estimates9. Issue log 10. Lessons learned register 11. Milestone list 12. Physical resource assignments 13. Project calendars 14. Project communications 15. Project schedule 16. Project schedule network diagram 17. Project scope statement 18. Project team assignments 19. Quality control measurements 20. Quality metrics 21. Quality report 22. Requirements documentation 23. Requirements traceability matrix 24. Resource breakdown structure 25. Resource calendars 26. Resource requirements 27. Risk register 28. Risk report 29. Schedule data 30. Schedule forecasts 31. Stakeholder register 32. Team charter 33. Test and evaluation documentsProject DocumentsProject Management Plan

90 Part 1 – Guide4.3 DIRECT AND MANAGE PROJECT WORKDirect and Manage Project Work is the process of leading and performing the work deﬁned in the project management plan and implementing approved changes to achieve the project’s objectives. The key beneﬁt of this process is that it provides overall management of the project work and deliverables, thus improving the probability of project success. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-6. Figure 4-7 depicts the data ﬂow diagram for the process.Figure 4-6. Direct and Manage Project Work: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDirect and Manage Project Work.1 Expert judgment.2 Project management information system.3 Meetings.1 Project management plan• Any component.2 Project documents• Change log• Lessons learned register• Milestone list• Project communications• Project schedule• Requirements traceability matrix• Risk register• Risk report.3 Approved change requests.4 Enterprise environmental factors.5 Organizational process assets.1 Deliverables.2 Work performance data.3 Issue log.4 Change requests.5 Project management plan updates• Any component.6 Project documents updates• Activity list• Assumption log• Lessons learned register• Requirements documentation• Risk register• Stakeholder register.7 Organizational process assets updates

��91• Enterprise environmental factors• Organizational process assets• Approved change requests• Work performance dataProject management plan updates• Any component• Issue log• Deliverables• Change requests• Deliverables• Deliverables• Organizational process assets updatesProject documents• Change log• Lessons learned register• Milestone list• Project communications• Project schedule• Requirements traceabilitymatrix• Risk register• Risk report Project management plan• Any componentProjectManagementPlan4.4 Manage ProjectKnowledge4.6 Perform IntegratedChange Control8.3 ControlQuality4.3Direct andManageProject WorkProjectDocuments4.6PerformIntegratedChange ControlEnterprise/Organization13.4MonitorStakeholderEngagementt12.3ControlProcurements11.7 MonitorRisks10.3 MonitorCommunications9.6 ControlResources8.3ControlQuality7.4ControlCosts6.6 ControlScehdule5.6ControlScope5.5. ValidateScopeEnterprise/OrganizationProjectDocumentsProjectManagementPlanProject documents updates• Activity list• Assumption log• Lessons learned register• Requirements documentation• Risk register• Stakeholder registerFigure 4-7. Direct and Manage Project Work: Data Flow Diagram

92 Part 1 – GuideDirect and Manage Project Work involves executing the planned project activities to complete project deliverables and accomplish established objectives. Available resources are allocated, their efﬁcient use is managed, and changes in project plans stemming from analyzing work performance data and information are carried out. The Direct and Manage Project Work process is directly affected by the project application area. Deliverables are produced as outputs from processes performed to accomplish the project work as planned and scheduled in the project management plan.The project manager, along with the project management team, directs the performance of the planned project activities and manages the various technical and organizational interfaces that exist in the project. Direct and Manage Project Work also requires review of the impact of all project changes and the implementation of approved changes: corrective action, preventive action, and/or defect repair.During project execution, the work performance data is collected and communicated to the applicable controlling processes for analysis. Work performance data analysis provides information about the completion status of deliverables and other relevant details about project performance. The work performance data will also be used as an input to the Monitoring and Controlling Process Group, and can be used as feedback into lessons learned to improve the performance of future work packages.4.3.1 DIRECT AND MANAGE PROJECT WORK: INPUTS4.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Any component of the project management plan may be an input to this process.4.3.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuChange log. Described in Section 4.6.3.3. The change log contains the status of all change requests.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned are used to improve the performance of the project and to avoid repeating mistakes. The register helps identify where to set rules or guidelines so the team’s actions are aligned.uuMilestone list. Described in Section 6.2.3.3. The milestone list shows the scheduled dates for speciﬁc milestones.uuProject communications. Described in Section 10.2.3.1. Project communications include performance reports, deliverable status, and other information generated by the project.

��93uuProject schedule. Described in Section 6.5.3.2. The schedule includes at least the list of work activities, their durations, resources, and planned start and ﬁnish dates.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links product requirements to the deliverables that satisfy them and helps to focus on the ﬁnal outcomes.uuRisk register. Described in Section 11.2.3.1. The risk register provides information on threats and opportunities that may impact project execution.uuRisk report. Described in Section 11.2.3.2. The risk report provides information on sources of overall project risk along with summary information on identiﬁed individual project risks.4.3.1.3 APPROVED CHANGE REQUESTSDescribed in Section 4.6.3.1. Approved change requests are an output of the Perform Integrated Change Control process, and include those requests reviewed and approved for implementation by the project manager or by the change control board (CCB) when applicable. The approved change request may be a corrective action, a preventive action, or a defect repair. Approved change requests are scheduled and implemented by the project team and can impact any area of the project or project management plan. The approved change requests can also modify the formally controlled project management plan components or project documents.4.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Direct and Manage Project Work process include but are not limited to:uuOrganizational structure, culture, management practices, and sustainability;uuInfrastructure (e.g., existing facilities and capital equipment); anduuStakeholder risk thresholds (e.g., allowable cost overrun percentage).

94 Part 1 – Guide4.3.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Direct and Manage Project Work process include but are not limited to:uuOrganizational standard policies, processes, and procedures;uuIssue and defect management procedures deﬁning issue and defect controls, issue and defect identiﬁcation and resolution, and action item tracking;uuIssue and defect management database(s) containing historical issue and defect status, issue and defect resolution, and action item results;uuPerformance measurement database used to collect and make available measurement data on processes and products;uuChange control and risk control procedures; anduuProject information from previous projects (e.g., scope, cost, schedule, performance measurement baselines, project calendars, project schedule network diagrams, risk registers, risk reports, and lessons learned repository).4.3.2 DIRECT AND MANAGE PROJECT WORK: TOOLS AND TECHNIQUES4.3.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuTechnical knowledge on the industry and focus area of the project,uuCost and budget management,uuLegal and procurement,uuLegislation and regulations, anduuOrganizational governance.

954.3.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)The PMIS provides access to information technology (IT) software tools, such as scheduling software tools, work authorization systems, conﬁguration management systems, information collection and distribution systems, as well as interfaces to other online automated systems such as corporate knowledge base repositories. Automated gathering and reporting on key performance indicators (KPI) can be part of this system.4.3.2.3 MEETINGSMeetings are used to discuss and address pertinent topics of the project when directing and managing project work. Attendees may include the project manager, the project team, and appropriate stakeholders involved or affected by the topics addressed. Each attendee should have a deﬁned role to ensure appropriate participation. Types of meetings include but are not limited to: kick-off, technical, sprint or iteration planning, Scrum daily standups, steering group, problem solving, progress update, and retrospective meetings.4.3.3 DIRECT AND MANAGE PROJECT WORK: OUTPUTS4.3.3.1 DELIVERABLESA deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables are typically the outcomes of the project and can include components of the project management plan.Change control should be applied once the ﬁrst version of a deliverable has been completed. The control of the multiple versions or editions of a deliverable (e.g., documents, software, and building blocks) is supported by conﬁguration management tools and procedures.4.3.3.2 WORK PERFORMANCE DATAWork performance data are the raw observations and measurements identiﬁed during activities being performed to carry out the project work. Data are often viewed as the lowest level of detail from which information is derived by other processes. Data is gathered through work execution and passed to the controlling processes for further analysis.Examples of work performance data include work completed, key performance indicators (KPIs), technical performance measures, actual start and ﬁnish dates of schedule activities, story points completed, deliverables status, schedule progress, number of change requests, number of defects, actual costs incurred, actual durations, etc.

96 Part 1 – Guide4.3.3.3 ISSUE LOGThroughout the life cycle of a project, the project manager will normally face problems, gaps, inconsistencies, or conﬂicts that occur unexpectedly and that require some action so they do not impact the project performance. The issue log is a project document where all the issues are recorded and tracked. Data on issues may include:uuIssue type,uuWho raised the issue and when,uuDescription,uuPriority,uuWho is assigned to the issue,uuTarget resolution date,uuStatus, anduuFinal solution.The issue log will help the project manager effectively track and manage issues, ensuring that they are investigated and resolved. The issue log is created for the ﬁrst time as an output of this process, although issues may happen at any time during the project. The issue log is updated as a result of the monitoring and control activities throughout the project’s life cycle.4.3.3.4 CHANGE REQUESTSA change request is a formal proposal to modify any document, deliverable, or baseline. When issues are found while project work is being performed, change requests can be submitted, which may modify project policies or procedures, project or product scope, project cost or budget, project schedule, or quality of the project or product results. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Any project stakeholder may request a change. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6). Change requests can be initiated from inside or outside the project and they can be optional or legally/contractually mandated. Change requests may include:uuCorrective action. An intentional activity that realigns the performance of the project work with the project management plan.uuPreventive action. An intentional activity that ensures the future performance of the project work is aligned with the project management plan.uuDefect repair. An intentional activity to modify a nonconforming product or product component.uuUpdates. Changes to formally controlled project documents, plans, etc., to reﬂect modiﬁed or additional ideas or content.

974.3.3.5 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Any component of the project management plan may require a change request as a result of this process.4.3.3.6 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuActivity list. Described in Section 6.2.3.1. The activity list may be updated with additional or modiﬁed activities to be performed to complete project work.uuAssumption log. Described in Section 4.1.3.2. New assumptions and constraints may be added, and the status of existing assumptions and constraints may be updated or closed out.uuLessons learned register. Described in Section 4.4.3.1. Any lessons learned that will improve performance for current or future projects is recorded as it is learned.uuRequirements documentation. Described in Section 5.2.3.1. New requirements may be identiﬁed during this process. Progress on meeting requirements can also be updated.uuRisk register. Described in Section 11.2.3.1. New risks may be identiﬁed and existing risks may be updated during this process. Risks are recorded in the risk register via risk management processes.uuStakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new stakeholders is gathered as a result of this process, it is recorded in the stakeholder register.4.3.3.7 ORGANIZATIONAL PROCESS ASSETS UPDATESAny organizational process asset can be updated as a result of this process.

98 Part 1 – Guide4.4 MANAGE PROJECT KNOWLEDGEManage Project Knowledge is the process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. The key beneﬁts of this process are that prior organizational knowledge is leveraged to produce or improve the project outcomes, and knowledge created by the project is available to support organizational operations and future projects or phases. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-8. Figure 4-9 depicts the data ﬂow diagram for the process.Figure 4-8. Manage Project Knowledge: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsManage Project Knowledge.1 Expert judgment.2 Knowledge management.3 Information management.4 Interpersonal and team skills• Active listening• Facilitation• Leadership• Networking• Political awareness.1 Project management plan• All components.2 Project documents• Lessons learned register• Project team assignments• Resource breakdown structure• Source selection criteria• Stakeholder register.3 Deliverables.4 Enterprise environmental factors.5 Organizational process assets.1 Lessons learned register.2 Project management plan updates• Any component.3 Organizational process assets updates

��99• Project charter4.4 ManageProjectKnowledgeEnterprise/Organization4.3Direct andManageProject Work• Organizational processassets updates• Lessons learnedregister• DeliverablesProject managementplan updates• Any component Project management plan• All components Project documents• Lessons learned register• Project team assignments• Resource breakdown structure• Source selection criteria• Stakeholder register • Enterprise environmental factors• Organizational process assetsProjectManagementPlanProjectManagementPlanProjectDocumentsEnterprise/OrganizationProjectDocumentsFigure 4-9. Manage Project Knowledge: Data Flow Diagram

100 Part 1 – GuideKnowledge is commonly split into “explicit” (knowledge that can be readily codiﬁed using words, pictures, and numbers) and “tacit” (knowledge that is personal and difﬁcult to express, such as beliefs, insights, experience, and “know-how”). Knowledge management is concerned with managing both tacit and explicit knowledge for two purposes: reusing existing knowledge and creating new knowledge. The key activities that underpin both purposes are knowledge sharing and knowledge integration (of knowledge from different domains, contextual knowledge, and project management knowledge).It is a common misconception that managing knowledge involves just documenting it so it can be shared. Another common misconception is that managing knowledge involves just obtaining lessons learned at the end of the project, in order to use it in the future projects. Only codiﬁed explicit knowledge can be shared in this way. But codiﬁed explicit knowledge lacks context and is open to different interpretations, so even though it can easily be shared, it isn’t always understood or applied in the right way. Tacit knowledge has context built in but is very difﬁcult to codify. It resides in the minds of individual experts or in social groups and situations, and is normally shared through conversations and interactions between people.From an organizational perspective, knowledge management is about making sure the skills, experience, and expertise of the project team and other stakeholders are used before, during, and after the project. Because knowledge resides in the minds of people and people cannot be forced to share what they know (or to pay attention to others’ knowledge), the most important part of knowledge management is creating an atmosphere of trust so that people are motivated to share their knowledge. Even the best knowledge management tools and techniques will not work if people are not motivated to share what they know or to pay attention to what others know. In practice, knowledge is shared using a mixture of knowledge management tools and techniques (interactions between people) and information management tools and techniques (in which people codify part of their explicit knowledge by documenting it so it can be shared).4.4.1 MANAGE PROJECT KNOWLEDGE: INPUTS4.4.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. All components of the project management plan are inputs.

��1014.4.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register provides information on effective practices in knowledge management.uuProject team assignments. Described in Section 9.3.3.1. Project team assignments provide information on the type of competencies and experience available in the project and the knowledge that may be missing.uuResource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure includes information on the composition of the team and may help to understand what knowledge is available as a group and what knowledge is missing.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register contains details about the identiﬁed stakeholders to help understand the knowledge they may have.4.4.1.3 DELIVERABLESA deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables are typically tangible components completed to meet the project objectives and can include components of the project management plan. 4.4.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Manage Project Knowledge process include but are not limited to:uuOrganizational, stakeholder, and customer culture. The existence of trusting working relationships and a no-blame culture is particularly important in managing knowledge. Other factors include the value placed on learning and social behavioral norms.uuGeographic distribution of facilities and resources. The location of team members helps determine methods for gaining and sharing knowledge.uuOrganizational knowledge experts. Some organizations have a team or individual that specializes in knowledge management.uuLegal and regulatory requirements and/or constraints. These include conﬁdentiality of project information.

102 Part 1 – Guide4.4.1.5 ORGANIZATIONAL PROCESS ASSETSKnowledge about project management is often embedded in processes and routines. The organizational process assets that can inﬂuence the Manage Project Knowledge process include but are not limited to:uuOrganizational standard policies, processes, and procedures. These may include: conﬁdentiality and access to information; security and data protection; record retention policies; use of copyrighted information; destruction of classiﬁed information; format and maximum size of ﬁles; registry data and metadata; authorized technology and social media; etc.uuPersonnel administration. These include, for example, employee development and training records, and competency frameworks that refer to knowledge-sharing behaviors.uuOrganizational communication requirements. Formal, rigid communication requirements are good for sharing information. Informal communication is more effective for creating new knowledge and integrating knowledge across diverse stakeholder groups.uuFormal knowledge-sharing and information-sharing procedures. These include learning reviews before, during, and after projects and project phases; for example, identifying, capturing, and sharing lessons learned from the current project and other projects.4.4.2 MANAGE PROJECT KNOWLEDGE: TOOLS AND TECHNIQUES4.4.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuKnowledge management,uuInformation management,uuOrganizational learning,uuKnowledge and information management tools, anduuRelevant information from other projects.4.4.2.2 KNOWLEDGE MANAGEMENTKnowledge management tools and techniques connect people so they can work together to create new knowledge, share tacit knowledge, and integrate the knowledge of diverse team members. The tools and techniques appropriate in a project depend on the nature of the project, especially the degree of innovation involved, the project complexity, and the level of diversity (including diversity of disciplines) among team members.

103Tools and techniques include but are not limited to:uuNetworking, including informal social interaction and online social networking. Online forums where people can ask open questions (“What does anyone know about…?”) are useful for starting knowledge-sharing conversations with specialists;uuCommunities of practice (sometimes called communities of interest or just communities) and special interest groups;uuMeetings, including virtual meetings where participants can interact using communications technology;uuWork shadowing and reverse shadowing;uuDiscussion forums such as focus groups;uuKnowledge-sharing events such as seminars and conferences;uuWorkshops, including problem-solving sessions and learning reviews designed to identify lessons learned;uuStorytelling;uuCreativity and ideas management techniques;uuKnowledge fairs and cafés; anduuTraining that involves interaction between learners.All of these tools and techniques can be applied face-to-face or virtually, or both. Face-to-face interaction is usually the most effective way to build the trusting relationships that are needed to manage knowledge. Once relationships are established, virtual interaction can be used to maintain the relationship.4.4.2.3 INFORMATION MANAGEMENTInformation management tools and techniques are used to create and connect people to information. They are effective for sharing simple, unambiguous, codiﬁed explicit knowledge. They include but are not limited to:uuMethods for codifying explicit knowledge; for example, for producing lessons to be learned entries for the lessons learned register;uuLessons learned register;uuLibrary services;uuInformation gathering, for example, web searches and reading published articles; anduuProject management information system (PMIS). Described in Section 4.3.2.2. Project management information systems often include document management systems.Tools and techniques that connect people to information can be enhanced by adding an element of interaction, for example, include a “contact me” function so users can get in touch with the originators of the lessons and ask for advice speciﬁc to their project and context.

104 Part 1 – GuideInteraction and support also helps people ﬁnd relevant information. Asking for help is generally quicker and easier than trying to identify search terms. Search terms are often difﬁcult to select because people may not know which keywords or key phrases to use to access the information they need.Knowledge and information management tools and techniques should be connected to project processes and process owners. Communities of practice and subject matter experts (SMEs), for example, may generate insights that lead to improved control processes; having an internal sponsor can ensure improvements are implemented. Lessons learned register entries may be analyzed to identify common issues that can be addressed by changes to project procedures.4.4.2.4 INTERPERSONAL AND TEAM SKILLSThe interpersonal and team skills used include but are not limited to:uuActive listening. Described in Section 10.2.2.6. Active listening helps reduce misunderstandings and improves communication and knowledge sharing.uuFacilitation. Described in Section 4.1.2.3. Facilitation helps effectively guide a group to a successful decision, solution, or conclusion.uuLeadership. Described in Section 3.4.4. Leadership is used to communicate the vision and inspire the project team to focus on the appropriate knowledge and knowledge objectives.uuNetworking. Described in Section 10.2.2.6. Networking allows informal connections and relations among project stakeholders to be established and creates the conditions to share tacit and explicit knowledge.uuPolitical awareness. Described in Section 10.1.2.6. Political awareness helps the project manager to plan communications based on the project environment as well as the organization’s political environment.4.4.3 MANAGE PROJECT KNOWLEDGE: OUTPUTS4.4.3.1 LESSONS LEARNED REGISTERThe lessons learned register can include the category and description of the situation. The lessons learned register may also include the impact, recommendations, and proposed actions associated with the situation. The lessons learned register may record challenges, problems, realized risks and opportunities, or other content as appropriate.The lessons learned register is created as an output of this process early in the project. Thereafter it is used as an input and updated as an output in many processes throughout the project. The persons or teams involved in the work are also involved in capturing the lessons learned. Knowledge can be documented using videos, pictures, audios, or other suitable means that ensure the efﬁciency of the lessons captured.At the end of a project or phase, the information is transferred to an organizational process asset called a lessons learned repository.

1054.4.3.2 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Any component of the project management plan may be updated as a result of this process.4.4.3.3 ORGANIZATIONAL PROCESS ASSETS UPDATESAll projects create new knowledge. Some of this knowledge is codiﬁed, embedded in deliverables, or embedded in improvements to processes and procedures as a result of the Manage Project Knowledge process. Existing knowledge can also be codiﬁed or embedded for the ﬁrst time as a result of this process; for example, if an existing idea for a new procedure is piloted in the project and found to be successful.Any organizational process asset can be updated as a result of this process.4.5 MONITOR AND CONTROL PROJECT WORKMonitor and Control Project Work is the process of tracking, reviewing, and reporting the overall progress to meet the performance objectives deﬁned in the project management plan. The key beneﬁts of this process are that it allows stakeholders to understand the current state of the project, to recognize the actions taken to address any performance issues, and to have visibility into the future project status with cost and schedule forecasts. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-10. Figure 4-11 depicts the data ﬂow diagram for the process.Figure 4-10. Monitor and Control Project Work: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsMonitor and Control Project Work.1 Expert judgment.2 Data analysis• Alternatives analysis• Cost-benefit analysis• Earned value analysis• Root cause analysis• Trend analysis• Variance analysis.3 Decision making.4 Meetings.1 Project management plan• Any component.2 Project documents• Assumption log• Basis of estimates• Cost forecasts• Issue log• Lessons learned register• Milestone list• Quality reports• Risk register• Risk report• Schedule forecasts.3 Work performance information.4 Agreements .5 Enterprise environmental factors.6 Organizational process assets.1 Work performance reports.2 Change requests.3 Project management plan updates• Any component.4 Project documents updates• Cost forecasts• Issue log• Lessons learned register• Risk register• Schedule forecasts

106 Part 1 – Guide11.7MonitorRisks10.2 ManageCommunications9.5 ManageTeam4.6PerformIntegratedChange Control5.6.ControlScope5.5 ValidateScope9.6 ControlResources8.3ControlQuality7.4ControlCosts6.6 ControlSchedule13.4MonitorStakeholderEngagement12.3ControlProcurements11.7 MonitorRisks 10.3 MonitorCommunications• Project charter12.2 ConductProcurementsProjectManagementPlanProjectDocumentsProjectDocuments4.5 Monitor andControlProject Work• Agreements• Change requests• Work performance reports• Work performance reports• Work performance reports• Work performance information• Work performance reportsProject documents updates• Cost forecasts• Issue log• Lessons learned register• Risk register• Schedule forecastsProject management plan updates• Any componentProject management plan• Any componentProject documents• Assumption log• Basis of estimates• Cost forecasts• Issue log• Lessons learned register• Milestone list• Quality reports• Risk register • Risk report• Schedule forecasts ProjectManagementPlan• Enterprise environmental factors• Organizational process assetsEnterprise/OrganizationFigure 4-11. Monitor and Control Project Work: Data Flow Diagram

��107Monitoring is an aspect of project management performed throughout the project. Monitoring includes collecting, measuring, and assessing measurements and trends to effect process improvements. Continuous monitoring gives the project management team insight into the health of the project and identiﬁes any areas that may require special attention. Control includes determining corrective or preventive actions or replanning and following up on action plans to determine whether the actions taken resolved the performance issue. The Monitor and Control Project Work process is concerned with:uuComparing actual project performance against the project management plan;uuAssessing performance periodically to determine whether any corrective or preventive actions are indicated, and then recommending those actions as necessary;uuChecking the status of individual project risks;uuMaintaining an accurate, timely information base concerning the project’s product(s) and their associated documentation through project completion;uuProviding information to support status reporting, progress measurement, and forecasting;uuProviding forecasts to update current cost and current schedule information;uuMonitoring implementation of approved changes as they occur;uuProviding appropriate reporting on project progress and status to program management when the project is part of an overall program; anduuEnsuring that the project stays aligned with the business needs.4.5.1 MONITOR AND CONTROL PROJECT WORK: INPUTS4.5.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Monitoring and controlling project work involves looking at all aspects of the project. Any component of the project management plan may be an input for this process.

108 Part 1 – Guide4.5.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log contains information about assumptions and constraints identiﬁed as affecting the project.uuBasis of estimates. Described in Sections 6.4.3.2 and 7.2.3.2. Basis of estimates indicates how the various estimates were derived and can be used to make a decision on how to respond to variances.uuCost forecasts. Described in Section 7.4.3.2. Based on the project’s past performance, the cost forecasts are used to determine if the project is within deﬁned tolerance ranges for budget and to identify any necessary change requests.uuIssue log. Described in Section 4.3.3.3. The issue log is used to document and monitor who is responsible for resolving speciﬁc issues by a target date.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register may have information on effective responses for variances, and corrective and preventive actions.uuMilestone list. Described in Section 6.2.3.3. The milestone list shows the scheduled dates for speciﬁc milestones and is used to check if the planned milestones have been met.uuQuality reports. Described in Section 8.2.3.1. The quality report includes quality management issues; recommendations for process, project, and product improvements; corrective actions recommendations (includes rework, defect/bugs repair, 100% inspection, and more); and the summary of ﬁndings from the Control Quality process.uuRisk register. Described in Section 11.2.3.1. The risk register provides information on threats and opportunities that have occurred during project execution.uuRisk report. Described in Section 11.2.3.2. The risk report provides information on the overall project risks as well as information on speciﬁed individual risks.uuSchedule forecasts. Described in Section 6.6.3.2. Based on the project’s past performance, the schedule forecasts are used to determine if the project is within deﬁned tolerance ranges for schedule and to identify any necessary change requests.

1094.5.1.3 WORK PERFORMANCE INFORMATIONWork performance data is gathered through work execution and passed to the controlling processes. To become work performance information, the work performance data are compared with the project management plan components, project documents, and other project variables. This comparison indicates how the project is performing.Speciﬁc work performance metrics for scope, schedule, budget, and quality are deﬁned at the start of the project as part of the project management plan. Performance data are collected during the project through the controlling processes and compared to the plan and other variables to provide a context for work performance.For example, work performance data on cost may include funds that have been expended. However, to be useful, that data has to be compared to the budget, the work that was performed, the resources used to accomplish the work, and the funding schedule. This additional information provides the context to determine if the project is on budget or if there is a variance. It also indicates the degree of variance from the plan, and by comparing it to the variance thresholds in the project management plan it can indicate if preventive or corrective action is required. Interpreting work performance data and the additional information as a whole provides a context that provides a sound foundation for project decisions.4.5.1.4 AGREEMENTSDescribed in Section 12.2.3.2. A procurement agreement includes terms and conditions, and may incorporate other items that the buyer speciﬁes regarding what the seller is to perform or provide. If the project is outsourcing part of the work, the project manager needs to oversee the contractor’s work to make certain that all the agreements meet the speciﬁc needs of the project while adhering to organizational procurement policies.4.5.1.5 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Monitor and Control Project Work process include but are not limited to:uuProject management information systems such as scheduling, cost, resourcing tools, performance indicators, databases, project records, and ﬁnancials;uuInfrastructure (e.g., existing facilities and equipment, organization´s telecommunications channels);uuStakeholders’ expectations and risk thresholds; anduuGovernment or industry standards (e.g., regulatory agency regulations, product standards, quality standards, and workmanship standards).

110 Part 1 – Guide4.5.1.6 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Monitor and Control Project Work process include but are not limited to:uuOrganizational standard policies, processes, and procedures;uuFinancial controls procedures (e.g., required expenditure and disbursement reviews, accounting codes, and standard contract provisions);uuMonitoring and reporting methods;uuIssue management procedures deﬁning issue controls, issue identiﬁcation, and resolution and action item tracking;uuDefect management procedures deﬁning defect controls, defect identiﬁcation, and resolution and action item tracking; anduuOrganizational knowledge base, in particular process measurement and the lessons learned repository.4.5.2 MONITOR AND CONTROL PROJECT WORK: TOOLS AND TECHNIQUES4.5.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuEarned value analysis,uuInterpretation and contextualization of data,uuTechniques to estimate duration and costs,uuTrend analysis,uuTechnical knowledge on the industry and focus area of the project,uuRisk management, anduuContract management.

��1114.5.2.2 DATA ANALYSISData analysis techniques that can be used include but are not limited to:uuAlternatives analysis. Alternatives analysis is used to select the corrective actions or a combination of corrective and preventive actions to implement when a deviation occurs.uuCost-benefit analysis. Described in Section 8.1.2.3. Cost-beneﬁt analysis helps to determine the best corrective action in terms of cost in case of project deviations.uuEarned value analysis. Described in Section 7.4.2.2. Earned value provides an integrated perspective on scope, schedule, and cost performance.uuRoot cause analysis. Described in Section 8.2.2.2. Root cause analysis focuses on identifying the main reasons of a problem. It can be used to identify the reasons for a deviation and the areas the project manager should focus on in order to achieve the objectives of the project.uuTrend analysis. Trend analysis is used to forecast future performance based on past results. It looks ahead in the project for expected slippages and warns the project manager ahead of time that there may be problems later in the schedule if established trends persist. This information is made available early enough in the project timeline to give the project team time to analyze and correct any anomalies. The results of trend analysis can be used to recommend preventive actions if necessary.uuVariance analysis. Variance analysis reviews the differences (or variance) between planned and actual performance. This can include duration estimates, cost estimates, resources utilization, resources rates, technical performance, and other metrics. Variance analysis may be conducted in each Knowledge Area based on its particular variables. In Monitor and Control Project Work, the variance analysis reviews the variances from an integrated perspective considering cost, time, technical, and resource variances in relation to each other to get an overall view of variance on the project. This allows for the appropriate preventive or corrective actions to be initiated.4.5.2.3 DECISION MAKINGA decision-making technique that can be used includes but is not limited to voting. Described in Section 5.2.2.4. Voting can include making decisions based on unanimity, majority, or plurality.4.5.2.4 MEETINGSMeetings may be face-to-face, virtual, formal, or informal. They may include project team members and other project stakeholders when appropriate. Types of meetings include but are not limited to user groups and review meetings.

112 Part 1 – Guide4.5.3 MONITOR AND CONTROL PROJECT WORK: OUTPUTS4.5.3.1 WORK PERFORMANCE REPORTSWork performance information is combined, recorded, and distributed in a physical or electronic form in order to create awareness and generate decisions or actions. Work performance reports are the physical or electronic representation of work performance information intended to generate decisions, actions, or awareness. They are circulated to the project stakeholders through the communication processes as deﬁned in the project communications management plan.Examples of work performance reports include status reports and progress reports. Work performance reports can contain earned value graphs and information, trend lines and forecasts, reserve burndown charts, defect histograms, contract performance information, and risk summaries. They can be presented as dashboards, heat reports, stop light charts, or other representations useful for creating awareness and generating decisions and actions.4.5.3.2 CHANGE REQUESTSDescribed in Section 4.3.3.4. As a result of comparing planned results to actual results, change requests may be issued to expand, adjust, or reduce project scope, product scope, or quality requirements and schedule or cost baselines. Change requests may necessitate the collection and documentation of new requirements. Changes can impact the project management plan, project documents, or product deliverables. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6). Changes may include but are not limited to:uuCorrective action. An intentional activity that realigns the performance of the project work with the project management plan.uuPreventive action. An intentional activity that ensures the future performance of the project work is aligned with the project management plan.uuDefect repair. An intentional activity that modiﬁes a nonconforming product or product component.4.5.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Changes identiﬁed during the Monitor and Control Project Work process may affect the overall project management plan.

��1134.5.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuCost forecasts. Described in Section 7.4.3.2. Changes in cost forecasts resulting from this process are recorded using cost management processes.uuIssue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the issue log.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with effective responses for variances and corrective and preventive actions.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.uuSchedule forecasts. Described in Section 6.6.3.2. Changes in schedule forecasts resulting from this process are recorded using schedule management processes.4.6 PERFORM INTEGRATED CHANGE CONTROLPerform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, project documents, and the project management plan; and communicating the decisions. This process reviews all requests for changes to project documents, deliverables, or the project management plan and determines the resolution of the change requests. The key beneﬁt of this process is that it allows for documented changes within the project to be considered in an integrated manner while addressing overall project risk, which often arises from changes made without consideration of the overall project objectives or plans. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-12. Figure 4-13 depicts the data ﬂow diagram for the process.Figure 4-12. Perform Integrated Change Control: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsPerform Integrated Change Control.1 Expert judgment.2 Change control tools.3 Data analysis• Alternatives analysis• Cost-benefit analysis.4 Decision making• Voting• Autocratic decision making• Multicriteria decision analysis.5 Meetings.1 Project management plan• Change management plan• Configuration management plan• Scope baseline• Schedule baseline• Cost baseline.2 Project documents• Basis of estimates• Requirements traceability matrix• Risk report.3 Work performance reports.4 Change requests.5 Enterprise environmental factors.6 Organizational process assets.1 Approved change requests.2 Project management plan updates• Any component.3 Project documents updates• Change log

114 Part 1 – Guide12.3 Control Procurements8.3 ControlQuality4.3Direct and Manage Project Work13.4MonitorStakeholderEngagement12.1 Plan ProcurementManagement10.3MonitorCommunications9.3 AcquireResources4.3Direct andManageProject Work12.2 ConductProcurements11.5Plan RiskResponses9.4 DevelopTeam5.5 ValidateScope12.3 Control Procurements11.6Implement RiskResponses9.5 Manage Team 5.6.ControlScope13.1 IdentifyStakeholders11.7MonitorRisks9.6ControlResources6.6ControlSchedule13.3 ManageStakeholderEngagement8.3 ControlQuality8.2ManageQuality7.4. ControlCosts• Project charter4.5Monitor andControlProject WorkProjectManagementPlanProjectDocumentsProjectDocuments4.6PerformIntegratedChange Control• Work performance reports• Change requests• Approved change requests• Approved change requests• Change requests• Approved change requestsProject documents updates• Change logProject management plan updates• Any componentProject management plan• Change management plan• Configuration management plan• Scope baseline• Schedule baseline• Cost baselineProject documents• Basis of estimates· • Requirements traceability matrix• Risk reportProjectManagementPlanEnterprise/Organization• Enterprise environmental factors• Organizational process assetsFigure 4-13. Perform Integrated Change Control: Data Flow Diagram

��115The Perform Integrated Change Control process is conducted from project start through completion and is the ultimate responsibility of the project manager. Change requests can impact the project scope and the product scope, as well as any project management plan component or any project document. Changes may be requested by any stakeholder involved with the project and may occur at any time throughout the project life cycle. The applied level of change control is dependent upon the application area, complexity of the speciﬁc project, contract requirements, and the context and environment in which the project is performed.Before the baselines are established, changes are not required to be formally controlled by the Perform Integrated Change Control process. Once the project is baselined, change requests go through this process. As a general rule, each project’s conﬁguration management plan should deﬁne which project artifacts need to be placed under conﬁguration control. Any change in a conﬁguration element should be formally controlled and will require a change request.Although changes may be initiated verbally, they should be recorded in written form and entered into the change management and/or conﬁguration management system. Change requests may require information on estimated schedule impacts and estimated cost impacts prior to approval. Whenever a change request may impact any of the project baselines, a formal integrated change control process is always required. Every documented change request needs to be either approved, deferred, or rejected by a responsible individual, usually the project sponsor or project manager. The responsible individual will be identiﬁed in the project management plan or by organizational procedures. When required, the Perform Integrated Change Control process includes a change control board (CCB), which is a formally chartered group responsible for reviewing, evaluating, approving, deferring, or rejecting changes to the project and for recording and communicating such decisions.Approved change requests can require new or revised cost estimates, activity sequences, schedule dates, resource requirements, and/or analysis of risk response alternatives. These changes can require adjustments to the project management plan and other project documents. Customer or sponsor approval may be required for certain change requests after CCB approval, unless they are part of the CCB.

116 Part 1 – Guide4.6.1 PERFORM INTEGRATED CHANGE CONTROL: INPUTS4.6.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuChange management plan. Described in Section 4.2.3.1. The change management plan provides the direction for managing the change control process and documents the roles and responsibilities of the change control board (CCB).uuConfiguration management plan. Described in Section 4.2.3.1. The conﬁguration management plan describes the conﬁgurable items of the project and identiﬁes the items that will be recorded and updated so that the product of the project remains consistent and operable.uuScope baseline. Described in Section 5.4.3.1. The scope baseline provides the project and product deﬁnition.uuSchedule baseline. Described in Section 6.5.3.1. The schedule baseline is used to assess the impact of the changes in the project schedule.uuCost baseline. Described in Section 7.3.3.1. The cost baseline is used to assess the impact of the changes to the project cost.4.6.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuBasis of estimates. Described in Section 6.4.3.2. Basis of estimates indicate how the duration, cost, and resources estimates were derived and can be used to calculate the impact of the change in time, budget, and resources.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix helps assess the impact of the change on the project scope.uuRisk report. Described in Section 11.2.3.2. The risk report presents information on sources of overall and individual project risks involved by the change requested.4.6.1.3 WORK PERFORMANCE REPORTSDescribed in Section 4.5.3.1. Work performance reports of particular interest to the Perform Integrated Change Control process include resource availability, schedule and cost data, earned value reports, and burnup or burndown charts.

1174.6.1.4 CHANGE REQUESTSMany processes produce change requests as an output. Change requests (described in Section 4.3.3.4) may include corrective action, preventive action, defect repairs, as well as updates to formally controlled documents or deliverables to reﬂect modiﬁed or additional ideas or content. Changes may or may not impact the project baselines—sometimes only the performance against the baseline is affected. Decisions on those changes are usually made by the project manager.Change requests that have an impact on the project baselines should normally include information about the cost of implementing the change, modiﬁcations in the scheduled dates, resource requirements, and risks. These changes should be approved by the CCB (if it exists) and by the customer or sponsor, unless they are part of the CCB. Only approved changes should be incorporated into a revised baseline.4.6.1.5 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Perform Integrated Change Control process include but are not limited to:uuLegal restrictions, such as country or local regulations;uuGovernment or industry standards (e.g., product standards, quality standards, safety standards, and workmanship standards);uuLegal and regulatory requirements and/or constraints;uuOrganizational governance framework (a structured way to provide control, direction, and coordination through people, policies, and processes to meet organizational strategic and operational goals); anduuContracting and purchasing constraints.4.6.1.6 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Perform Integrated Change Control process include but are not limited to:uuChange control procedures, including the steps by which organizational standards, policies, plans, procedures, or any project documents will be modiﬁed, and how any changes will be approved and validated;uuProcedures for approving and issuing change authorizations; anduuConﬁguration management knowledge base containing the versions and baselines of all ofﬁcial organizational standards, policies, procedures, and any project documents.

118 Part 1 – Guide4.6.2 PERFORM INTEGRATED CHANGE CONTROL: TOOLS AND TECHNIQUES4.6.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge of or training in the following topics:uuTechnical knowledge of the industry and focus area of the project,uuLegislation and regulations,uuLegal and procurement,uuConﬁguration management, anduuRisk management.4.6.2.2 CHANGE CONTROL TOOLSIn order to facilitate conﬁguration and change management, manual or automated tools may be used. Conﬁguration control is focused on the speciﬁcation of both the deliverables and the processes, while change control is focused on identifying, documenting, and approving or rejecting changes to the project documents, deliverables, or baselines.Tool selection should be based on the needs of the project stakeholders including organizational and environmental considerations and/or constraints. Tools should support the following conﬁguration management activities:uuIdentify configuration item. Identiﬁcation and selection of a conﬁguration item to provide the basis for which the product conﬁguration is deﬁned and veriﬁed, products and documents are labeled, changes are managed, and accountability is maintained.uuRecord and report configuration item status. Information recording and reporting about each conﬁguration item.uuPerform configuration item verification and audit. Conﬁguration veriﬁcation and conﬁguration audits ensure that the composition of a project’s conﬁguration items is correct and that corresponding changes are registered, assessed, approved, tracked, and correctly implemented. This ensures that the functional requirements deﬁned in the conﬁguration documentation are met.

��119Tools should support the following change management activities as well:uuIdentify changes. Identifying and selecting a change item for processes or project documents.uuDocument changes. Documenting the change into a proper change request.uuDecide on changes. Reviewing the changes; approving, rejecting, deferring, or making any other decision about changes to the project documents, deliverables, or baselines.uuTrack changes. Verifying that the changes are registered, assessed, approved, and tracked and communicating ﬁnal results to stakeholders.Tools are also used to manage the change requests and the resulting decisions. Additional considerations should be made for communications to assist the change control board (CCB) members in their duties, as well as to distribute the decisions to the appropriate stakeholders.4.6.2.3 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuAlternatives analysis. Described in Section 9.2.2.5. This technique is used to assess the requested changes and decide which are accepted, rejected, or need to be modiﬁed to be ﬁnally accepted.uuCost-benefit analysis. Described in Section 8.1.2.3. This analysis helps to determine if the requested change is worth its associated cost.4.6.2.4 DECISION MAKINGDecision-making techniques that can be used for this process include but are not limited to:uuVoting. Described in Section 5.2.2.4. Voting can take the form of unanimity, majority, or plurality to decide on whether to accept, defer, or reject change requests.uuAutocratic decision making. In this decision-making technique, one individual takes the responsibility for making the decision for the entire group.uuMulticriteria decision analysis. Described in Section 8.1.2.4. This technique uses a decision matrix to provide a systematic analytical approach to evaluate the requested changes according to a set of predeﬁned criteria.

120 Part 1 – Guide4.6.2.5 MEETINGSChange control meetings are held with a change control board (CCB) that is responsible for meeting and reviewing the change requests and approving, rejecting, or deferring change requests. Most changes will have some sort of impact on time, cost, resources, or risks. Assessing the impact of the changes is an essential part of the meeting. Alternatives to the requested changes may also be discussed and proposed. Finally, the decision is communicated to the request owner or group.The CCB may also review conﬁguration management activities. The roles and responsibilities of these boards are clearly deﬁned and agreed upon by the appropriate stakeholders and are documented in the change management plan. CCB decisions are documented and communicated to the stakeholders for information and follow-up actions.4.6.3 PERFORM INTEGRATED CHANGE CONTROL: OUTPUTS4.6.3.1 APPROVED CHANGE REQUESTSChange requests (described in Section 4.3.3.4) are processed according to the change management plan by the project manager, CCB, or an assigned team member. As a result, changes may be approved, deferred, or rejected. Approved change requests will be implemented through the Direct and Manage Project Work process. Deferred or rejected change requests are communicated to the person or group requesting the change.The disposition of all change requests are recorded in the change log as a project document update.4.6.3.2 PROJECT MANAGEMENT PLAN UPDATESAny formally controlled component of the project management plan may be changed as a result of this process. Changes to baselines are only made from the last baseline forward. Past performance is not changed. This protects the integrity of the baselines and the historical data of past performance.4.6.3.3 PROJECT DOCUMENTS UPDATESAny formally controlled project document may be changed as a result of this process. A project document that is normally updated as a result of this process is the change log. The change log is used to document changes that occur during a project.

��1214.7 CLOSE PROJECT OR PHASEClose Project or Phase is the process of ﬁnalizing all activities for the project, phase, or contract. The key beneﬁts of this process are the project or phase information is archived, the planned work is completed, and organizational team resources are released to pursue new endeavors. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 4-14. Figure 4-15 depicts the data ﬂow diagram for the process.Figure 4-14. Close Project or Phase: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsClose Project or Phase.1 Expert judgment.2 Data analysis• Document analysis• Regression analysis• Trend analysis• Variance analysis.3 Meetings.1 Project charter.2 Project management plan• All components.3 Project documents• Assumption log• Basis of estimates• Change log• Issue log• Lessons learned register• Milestone list• Project communications• Quality control measurements• Quality reports• Requirements documentation• Risk register• Risk report.4 Accepted deliverables.5 Business documents• Business case• Benefits management plan.6 Agreements.7 Procurement documentation.8 Organizational process assets.1 Project documents updates• Lessons learned register.2 Final product, service, or result transition.3 Final report.4 Organizational process assets updates

122 Part 1 – GuideFigure 4-15. Close Project or Phase: Data Flow Diagram• Project charter5.5ValidateScope12.1 PlanProcurementManagement4.1DevelopProject CharterProjectManagementPlanProjectDocumentsProjectDocuments4.7CloseProject orPhaseEnterprise/OrganizationEnterprise/OrganizationCustomer• Accepted deliverables• Project Charter• Procurement documentation12.2 ConductProcurements• Organizational process assets • Final product, service, or result transitionProject documents updates• Lessons learned register• Final report• Organizational process assets updatesProject management plan• All components Project documents• Assumption log• Basis of estimates• Change log• Issue log• Lessons learned register• Milestone list• Project communications• Quality control measurements• Quality reports• Requirements documentation• Risk register• Risk reportProjectDocuments• Agreements• Business case• Benefits management plan

��123When closing the project, the project manager reviews the project management plan to ensure that all project work is completed and that the project has met its objectives. The activities necessary for the administrative closure of the project or phase include but are not limited to:uuActions and activities necessary to satisfy completion or exit criteria for the phase or project such as:unMaking certain that all documents and deliverables are up-to-date and that all issues are resolved;unConﬁrming the delivery and formal acceptance of deliverables by the customer;unEnsuring that all costs are charged to the project;unClosing project accounts;unReassigning personnel;unDealing with excess project material;unReallocating project facilities, equipment, and other resources; andunElaborating the ﬁnal project reports as required by organizational policies.uuActivities related to the completion of the contractual agreements applicable to the project or project phase such as:unConﬁrming the formal acceptance of the seller’s work,unFinalizing open claims,unUpdating records to reﬂect ﬁnal results, andunArchiving such information for future use.uuActivities needed to:unCollect project or phase records,unAudit project success or failure,unManage knowledge sharing and transfer,unIdentify lessons learned, andunArchive project information for future use by the organization.uuActions and activities necessary to transfer the project’s products, services, or results to the next phase or to production and/or operations.uuCollecting any suggestions for improving or updating the policies and procedures of the organization, and sending them to the appropriate organizational unit.uuMeasuring stakeholder satisfaction.The Close Project or Phase process also establishes the procedures to investigate and document the reasons for actions taken if a project is terminated before completion. In order to successfully achieve this, the project manager needs to engage all the proper stakeholders in the process.

124 Part 1 – Guide4.7.1 CLOSE PROJECT OR PHASE: INPUTS4.7.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter documents the project success criteria, the approval requirements, and who will sign off on the project.4.7.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. All components of the project management plan are an input to this process.4.7.1.3 PROJECT DOCUMENTSProject documents that may be inputs for this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log has a record of all the assumptions and constraints that guided the technical speciﬁcations, estimates, schedule, risks, etc.uuBasis of estimates. Described in Sections 6.4.3.2 and 7.2.3.2. The basis of estimates is used to evaluate how the estimation of durations, cost, resources, and cost control compared to the actual results.uuChange log. Described in Section 4.6.3.3. The change log contains the status of all change requests throughout the project or phase.uuIssue log. Described in Section 4.3.3.3. The issue log is used to check that there is no open issue.uuLessons learned register. Described in Section 4.3.3.1. The lessons learned in the phase or project will be ﬁnalized before being entered into the lessons learned repository.uuMilestone list. Described in Section 6.2.3.3. The milestone list shows the ﬁnal dates on which the project milestones have been accomplished.uuProject communications. Described in Section 10.2.3.1. Project communications include any and all communications that have been created throughout the project.uuQuality control measurements. Described in Section 8.3.3.1. The quality control measurements document the results of Control Quality activities and demonstrate compliance with the quality requirements.uuQuality reports. Described in Section 8.2.3.1. The information presented in the quality report may include all quality assurance issues managed or escalated by the team, recommendations for improvement, and the summary of ﬁndings from the Control Quality process.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation is used to demonstrate compliance with the project scope.

��125uuRisk register. Described in Section 11.2.3.1. The risk register provides information on risks that have occurred throughout the project.uuRisk report. Described in Section 11.2.3.2. The risk report provides information on the risk status and is used to check that there are no open risks at the end of the project.4.7.1.4 ACCEPTED DELIVERABLESDescribed in Section 5.5.3.1. Accepted deliverables may include approved product speciﬁcations, delivery receipts, and work performance documents. Partial or interim deliverables may also be included for phased or cancelled projects.4.7.1.5 BUSINESS DOCUMENTSDescribed in Section 1.2.6. Business documents include but are not limited to:uuBusiness case. The business case documents the business need and the cost beneﬁt analysis that justify the project.uuBenefits management plan. The beneﬁts management plan outlines the target beneﬁts of the project.The business case is used to determine if the expected outcomes from the economic feasibility study used to justify the project occurred. The beneﬁts management plan is used to measure whether the beneﬁts of the project were achieved as planned.4.7.1.6 AGREEMENTSDescribed in Section 12.2.3.2. The requirements for formal procurement closure are usually deﬁned in the terms and conditions of the contract and are included in the procurement management plan. A complex project may involve managing multiple contracts simultaneously or in sequence.4.7.1.7 PROCUREMENT DOCUMENTATIONDescribed in Section 12.3.1.4. To close the contract, all procurement documentation is collected, indexed, and ﬁled. Information on contract schedule, scope, quality, and cost performance along with all contract change documentation, payment records, and inspection results are cataloged. “As-built” plans/drawing or “as-developed” documents, manuals, troubleshooting, and other technical documentation should also be considered as part of the procurement documents when closing a project. This information can be used for lessons learned information and as a basis for evaluating contractors for future contracts.

126 Part 1 – Guide4.7.1.8 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Close Project or Phase process include but are not limited to:uuProject or phase closure guidelines or requirements (e.g., lessons learned, ﬁnal project audits, project evaluations, product validations, acceptance criteria, contract closure, resource reassignment, team performance appraisals, and knowledge transfer).uuConﬁguration management knowledge base containing the versions and baselines of all ofﬁcial organizational standards, policies, procedures, and any project documents. 4.7.2 CLOSE PROJECT OR PHASE: TOOLS AND TECHNIQUES4.7.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuManagement control,uuAudit,uuLegal and procurement, anduuLegislation and regulations.4.7.2.2 DATA ANALYSISData analysis techniques that can be used in project closeout include but are not limited to:uuDocument analysis. Described in Section 5.2.2.3. Assessing available documentation will allow identifying lessons learned and knowledge sharing for future projects and organizational assets improvement.uuRegression analysis. This technique analyzes the interrelationships between different project variables that contributed to the project outcomes to improve performance on future projects.uuTrend analysis. Described in Section 4.5.2.2. Trend analysis can be used to validate the models used in the organization and to implement adjustments for future projects.uuVariance analysis. Described in Section 4.5.2.2. Variance analysis can be used to improve the metrics of the organization by comparing what was initially planned and the end result.

��1274.7.2.3 MEETINGSMeetings are used to conﬁrm that the deliverables have been accepted, to validate that the exit criteria have been met, to formalize the completion of the contracts, to evaluate the satisfaction of the stakeholders, to gather lessons learned, to transfer knowledge and information from the project, and to celebrate success. Attendees may include project team members and other stakeholders involved in or affected by the project. Meetings may be face-to-face, virtual, formal, or informal. Types of meetings include but are not limited to close-out reporting meetings, customer wrap-up meetings, lessons learned meetings, and celebration meetings.4.7.3 CLOSE PROJECT OR PHASE: OUTPUTS4.7.3.1 PROJECT DOCUMENTS UPDATESAll project documents may be updated and marked as ﬁnal versions as a result of project closure. Of particular interest is the lessons learned register, which is ﬁnalized to include ﬁnal information on phase or project closure. The ﬁnal lessons learned register may include information on beneﬁts management, accuracy of the business case, project and development life cycles, risk and issue management, stakeholder engagement, and other project management processes.4.7.3.2 FINAL PRODUCT, SERVICE, OR RESULT TRANSITIONA product, service, or result, once delivered by the project, may be handed over to a different group or organization that will operate, maintain, and support it throughout its life cycle.This output refers to this transition of the ﬁnal product, service, or result that the project was authorized to produce (or in the case of phase closure, the intermediate product, service, or result of that phase) from one team to another.4.7.3.3 FINAL REPORTThe ﬁnal report provides a summary of the project performance. It can include information such as:uuSummary level description of the project or phase.uuScope objectives, the criteria used to evaluate the scope, and evidence that the completion criteria were met.uuQuality objectives, the criteria used to evaluate the project and product quality, the veriﬁcation and actual milestone delivery dates, and reasons for variances.uuCost objectives, including the acceptable cost range, actual costs, and reasons for any variances.uuSummary of the validation information for the ﬁnal product, service, or result.

128 Part 1 – GuideuuSchedule objectives including whether results achieved the beneﬁts that the project was undertaken to address. If the beneﬁts are not met at the close of the project, indicate the degree to which they were achieved and estimate for future beneﬁts realization.uuSummary of how the ﬁnal product, service, or result achieved the business needs identiﬁed in the business plan. If the business needs are not met at the close of the project, indicate the degree to which they were achieved and estimate for when the business needs will be met in the future. uuSummary of any risks or issues encountered on the project and how they were addressed.4.7.3.4 ORGANIZATIONAL PROCESS ASSET UPDATESOrganizational process assets that are updated include but are not limited to:uuProject documents. Documentation resulting from the project’s activities; for example, project management plan; scope, cost, schedule, and project calendars; and change management documentation.uuOperational and support documents. Documents required for an organization to maintain, operate, and support the product or service delivered by the project. These may be new documents or updates to existing documents.uuProject or phase closure documents. Project or phase closure documents, consisting of formal documentation that indicates completion of the project or phase and the transfer of the completed project or phase deliverables to others, such as an operations group or to the next phase. During project closure, the project manager reviews prior phase documentation, customer acceptance documentation from the Validate Scope process (Section 5.5), and the agreement (if applicable) to ensure that all project requirements are completed prior to ﬁnalizing the closure of the project. If the project was terminated prior to completion, the formal documentation indicates why the project was terminated and formalizes the procedures for the transfer of the ﬁnished and unﬁnished deliverables of the cancelled project to others.uuLessons learned repository. Lessons learned and knowledge gained throughout the project are transferred to the lessons learned repository for use by future projects.

��1295PROJECT SCOPE MANAGEMENTProject Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with deﬁning and controlling what is and is not included in the project.The Project Scope Management processes are:5.1 Plan Scope Management—The process of creating a scope management plan that documents how the project and product scope will be deﬁned, validated, and controlled.5.2 Collect Requirements—The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives.5.3 Define Scope—The process of developing a detailed description of the project and product.5.4 Create WBS—The process of subdividing project deliverables and project work into smaller, more manageable components.5.5 Validate Scope—The process of formalizing acceptance of the completed project deliverables.5.6 Control Scope—The process of monitoring the status of the project and product scope and managing changes to the scope baseline.Figure 5-1 provides an overview of the Project Scope Management processes. The Project Scope Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

130 Part 1 – Guide.1 Inputs .1 Project charter .2 Project management plan .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Meetings .3 Outputs .1 Scope management plan .2 Requirements management plan.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Business documents .5 Agreements .6 Enterprise environmental factors .7 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Data analysis .4 Decision making .5 Data representation .6 Interpersonal and team skills .7 Context diagram .8 Prototypes .3 Outputs .1 Requirements documentation .2 Requirements traceability matrix.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Enterprise environmental factors .5 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Decision making .4 Interpersonal and team skills .5 Product analysis.3 Outputs .1 Project scope statement .2 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Decomposition.3 Outputs .1 Scope baseline .2 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Verified deliverables .4 Work performance data.2 Tools & Techniques .1 Inspection .2 Decision making.3 Outputs .1 Accepted deliverables .2 Work performance information .3 Change requests .4 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Work performance data .4 Organizational process assets.2 Tools & Techniques .1 Data analysis.3 Outputs .1 Work performance information .2 Change requests .3 Project management plan updates .4 Project documents updatesProject Scope ManagementOverview5.2 Collect Requirements5.1 Plan ScopeManagement5.3 Define Scope5.4 Create WBS5.5 Validate Scope5.6 Control ScopeFigure 5-1. Project Scope Management Overview

��131KEY CONCEPTS FOR PROJECT SCOPE MANAGEMENTIn the project context, the term “scope” can refer to:uuProduct scope. The features and functions that characterize a product, service, or result.uuProject scope. The work performed to deliver a product, service, or result with the speciﬁed features and functions. The term “project scope” is sometimes viewed as including product scope.Project life cycles can range along a continuum from predictive approaches at one end to adaptive or agile approaches at the other. In a predictive life cycle, the project deliverables are deﬁned at the beginning of the project and any changes to the scope are progressively managed. In an adaptive or agile life cycle, the deliverables are developed over multiple iterations where a detailed scope is deﬁned and approved for each iteration when it begins.Projects with adaptive life cycles are intended to respond to high levels of change and require ongoing stakeholder engagement. The overall scope of an adaptive project will be decomposed into a set of requirements and work to be performed, sometimes referred to as a product backlog. At the beginning of an iteration, the team will work to determine how many of the highest-priority items on the backlog list can be delivered within the next iteration. Three processes (Collect Requirements, Deﬁne Scope, and Create WBS) are repeated for each iteration. On the contrary, in a predictive project, these processes are performed toward the beginning of the project and updated as necessary, using the integrated change control process.In an adaptive or agile life cycle, the sponsor and customer representatives should be continuously engaged with the project to provide feedback on deliverables as they are created and to ensure that the product backlog reﬂects their current needs. Two processes (Validate Scope and Control Scope) are repeated for each iteration. On the contrary, in a predictive project, Validate Scope occurs with each deliverable or phase review and Control Scope is an ongoing process.In predictive projects, the scope baseline for the project is the approved version of the project scope statement, work breakdown structure (WBS), and its associated WBS dictionary. A baseline can be changed only through formal change control procedures and is used as a basis for comparison while performing Validate Scope and Control Scope processes as well as other controlling processes. Projects with adaptive life cycles use backlogs (including product requirements and user stories) to reﬂect their current needs.Completion of the project scope is measured against the project management plan, while completion of the product scope is measured against the product requirements. The term “requirement” is deﬁned as a condition or capability that is required to be present in a product, service, or result to satisfy an agreement or other formally imposed speciﬁcation.Validate Scope is the process of formalizing acceptance of the completed project deliverables. The veriﬁed deliverables obtained from the Control Quality process are an input to the Validate Scope process. One of the outputs of Validate Scope is accepted deliverables that are formally signed off and approved by the authorized stakeholder. Therefore, the stakeholder needs to get involved early on during planning (sometimes initiating as well) and to provide inputs about quality of deliverables so that Control Quality can assess the performance and recommend necessary changes.

��132 Part 1 – GuideTRENDS AND EMERGING PRACTICES IN PROJECT SCOPE MANAGEMENTRequirements have always been a concern in project management and have continued to gain more attention in the profession. As the global environment becomes more complex, organizations are starting to recognize how to use business analysis to their competitive advantage by deﬁning, managing, and controlling requirements activities. Activities of business analysis may start before a project is initiated and a project manager is assigned. According to Requirements Management: A Practice Guide [14], the requirements management process starts with a needs assessment, which may begin in portfolio planning, in program planning, or within a discrete project. Eliciting, documenting, and managing stakeholder requirements takes place within the Project Scope Management processes. Trends and emerging practices for Project Scope Management include but are not limited to a focus on collaborating with business analysis professionals to:uuDetermine problems and identify business needs;uuIdentify and recommend viable solutions for meeting those needs;uuElicit, document, and manage stakeholder requirements in order to meet business and project objectives; anduuFacilitate the successful implementation of the product, service, or end result of the program or project [7].The process ends with the requirements closure, which transitions the product, service, or result to the recipient in order to measure, monitor, realize, and sustain beneﬁts over time.The role with responsibility to conduct business analysis should be assigned to resources with sufﬁcient business analysis skills and expertise. If a business analyst is assigned to a project, requirement-related activities are the responsibility of that role. The project manager is responsible for ensuring that requirements-related work is accounted for in the project management plan and that requirements-related activities are performed on time and within budget and deliver value.The relationship between a project manager and a business analyst should be a collaborative partnership. A project will have a higher likelihood of being successful if project managers and business analysts fully understand each other’s roles and responsibilities to successfully achieve project objectives.

133TAILORING CONSIDERATIONSBecause each project is unique, the project manager will need to tailor the way Project Scope Management processes are applied. Considerations for tailoring include but are not limited to:uuKnowledge and requirements management. Does the organization have formal or informal knowledge and requirements management systems? What guidelines should the project manager establish for requirements to be reused in the future?uuValidation and control. Does the organization have existing formal or informal validation and control-related policies, procedures, and guidelines?uuDevelopment approach. Does the organization use agile approaches in managing projects? Is the development approach iterative or incremental? Is a predictive approach used? Will a hybrid approach be productive?uuStability of requirements. Are there areas of the project with unstable requirements? Do unstable requirements necessitate the use of lean, agile, or other adaptive techniques until they are stable and well deﬁned?uuGovernance. Does the organization have formal or informal audit and governance policies, procedures, and guidelines?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSIn projects with evolving requirements, high risk, or signiﬁcant uncertainty, the scope is often not understood at the beginning of the project or it evolves during the project. Agile methods deliberately spend less time trying to deﬁne and agree on scope in the early stage of the project and spend more time establishing the process for its ongoing discovery and reﬁnement. Many environments with emerging requirements ﬁnd that there is often a gap between the real business requirements and the business requirements that were originally stated. Therefore, agile methods purposefully build and review prototypes and release versions in order to reﬁne the requirements. As a result, scope is deﬁned and redeﬁned throughout the project. In agile approaches, the requirements constitute the backlog.

134 Part 1 – Guide5.1 PLAN SCOPE MANAGEMENTPlan Scope Management is the process of creating a scope management plan that documents how the project and product scope will be deﬁned, validated, and controlled. The key beneﬁt of this process is that it provides guidance and direction on how scope will be managed throughout the project. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-2. Figure 5-3 depicts the data ﬂow diagram of the process.Figure 5-2. Plan Scope Management: Inputs, Tools & Techniques, and OutputsFigure 5-3. Plan Scope Management: Data Flow DiagramTools & TechniquesInputsOutputsPlan Scope Management.1 Expert judgment.2 Data analysis• Alternatives analysis.3 Meetings.1 Project charter.2 Project management plan• Quality management plan• Project life cycle description• Development approach.3 Enterprise environmental factors.4 Organizational process assets.1 Scope management plan.2 Requirements management plan• Project charter5.1Plan ScopeManagementEnterprise/Organization4.1Develop ProjectCharter• Scope management plan• Requirements management plan• Project charter• Quality management plan• Project life cycle description• Development approach• Enterprise environmental factors• Organizational process assetsProjectManagementPlanProjectManagementPlan

��135The scope management plan is a component of the project or program management plan that describes how the scope will be deﬁned, developed, monitored, controlled, and validated. The development of the scope management plan and the detailing of the project scope begin with the analysis of information contained in the project charter (Section 4.1.3.1), the latest approved subsidiary plans of the project management plan (Section 4.2.3.1), historical information contained in the organizational process assets (Section 2.3), and any other relevant enterprise environmental factors (Section 2.2).5.1.1 PLAN SCOPE MANAGEMENT: INPUTS5.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter documents the project purpose, high-level project description, assumptions, constraints, and high-level requirements that the project is intended to satisfy.5.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuQuality management plan. Described in Section 8.1.3.1. The way the project and product scope will be managed can be inﬂuenced by how the organization’s quality policy, methodologies, and standards are implemented on the project.uuProject life cycle description. The project life cycle determines the series of phases that a project passes through from its inception to the end of the project. uuDevelopment approach. The development approach deﬁnes whether waterfall, iterative, adaptive, agile, or a hybrid development approach will be used.5.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Scope Management process include but are not limited to:uuOrganization’s culture,uuInfrastructure,uuPersonnel administration, anduuMarketplace conditions.

136 Part 1 – Guide5.1.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Scope Management process include but are not limited to:uuPolicies and procedures, anduuHistorical information and lessons learned repositories.5.1.2 PLAN SCOPE MANAGEMENT: TOOLS AND TECHNIQUES5.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuPrevious similar projects, anduuInformation in the industry, discipline, and application area.5.1.2.2 DATA ANALYSISA data analysis technique that can be used for this process includes but is not limited to alternatives analysis. Various ways of collecting requirements, elaborating the project and product scope, creating the product, validating the scope, and controlling the scope are evaluated.5.1.2.3 MEETINGSProject teams may attend project meetings to develop the scope management plan. Attendees may include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for any of the scope management processes, and others as needed.

��1375.1.3 PLAN SCOPE MANAGEMENT: OUTPUTS5.1.3.1 SCOPE MANAGEMENT PLANThe scope management plan is a component of the project management plan that describes how the scope will be deﬁned, developed, monitored, controlled, and validated. The components of a scope management plan include:uuProcess for preparing a project scope statement;uuProcess that enables the creation of the WBS from the detailed project scope statement;uuProcess that establishes how the scope baseline will be approved and maintained; anduuProcess that speciﬁes how formal acceptance of the completed project deliverables will be obtained.The scope management plan can be formal or informal, broadly framed or highly detailed, based on the needs of the project.5.1.3.2 REQUIREMENTS MANAGEMENT PLANThe requirements management plan is a component of the project management plan that describes how project and product requirements will be analyzed, documented, and managed. According to Business Analysis for Practitioners: A Practice Guide [7], some organizations refer to it as a business analysis plan. Components of the requirements management plan can include but are not limited to:uuHow requirements activities will be planned, tracked, and reported;uuConﬁguration management activities such as: how changes will be initiated; how impacts will be analyzed; how they will be traced, tracked, and reported; as well as the authorization levels required to approve these changes;uuRequirements prioritization process;uuMetrics that will be used and the rationale for using them; anduuTraceability structure that reﬂects the requirement attributes captured on the traceability matrix.

138 Part 1 – Guide5.2 COLLECT REQUIREMENTSCollect Requirements is the process of determining, documenting, and managing stakeholder needs and requirements to meet objectives. The key beneﬁt of this process is that it provides the basis for deﬁning the product scope and project scope. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-4. Figure 5-5 depicts the data ﬂow diagram of the process.Figure 5-4. Collect Requirements: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsCollect Requirements.1 Expert judgment.2 Data gathering• Brainstorming• Interviews• Focus groups• Questionnaires and surveys• Benchmarking.3 Data analysis• Document analysis.4 Decision making• Voting• Multicriteria decision analysis.5 Data representation• Affinity diagrams• Mind mapping.6 Interpersonal and team skills• Nominal group technique• Observation/conversation• Facilitation.7 Context diagram.8 Prototypes.1 Project charter.2 Project management plan• Scope management plan• Requirements management plan• Stakeholder engagement plan.3 Project documents• Assumption log• Lessons learned register• Stakeholder register.4 Business documents• Business case.5 Agreements.6 Enterprise environmental factors.7 Organizational process assets.1 Requirements documentation.2 Requirements traceability matrix

��139• Project charter5.2CollectRequirementsEnterprise/Organization12.2ConductProcurements4.1DevelopProject Charter• Requirementsdocumentation• Requirementstraceability matrix• Agreements• Project charterProject documents• Assumption log• Lessons learned register• Stakeholder registerBusiness documents• Business caseProject management plan• Requirements management plan• Scope management plan• Stakeholder engagement plan• Enterprise environmental factors• Organizational process assetsProjectManagementPlanProjectDocumentsProjectDocumentsBusinessDocumentsFigure 5-5. Collect Requirements: Data Flow Diagram

140 Part 1 – GuideThe PMBOK® Guide does not speciﬁcally address product requirements since those are industry speciﬁc. Note that Business Analysis for Practitioners: A Practice Guide [7] provides more in-depth information about product requirements. The project’s success is directly inﬂuenced by active stakeholder involvement in the discovery and decomposition of needs into project and product requirements and by the care taken in determining, documenting, and managing the requirements of the product, service, or result of the project. Requirements include conditions or capabilities that are required to be present in a product, service, or result to satisfy an agreement or other formally imposed speciﬁcation. Requirements include the quantiﬁed and documented needs and expectations of the sponsor, customer, and other stakeholders. These requirements need to be elicited, analyzed, and recorded in enough detail to be included in the scope baseline and to be measured once project execution begins. Requirements become the foundation of the WBS. Cost, schedule, quality planning, and procurement are all based on these requirements.5.2.1 COLLECT REQUIREMENTS: INPUTS5.2.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter documents the high-level project description and high-level requirements that will be used to develop detailed requirements.5.2.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuScope management plan. Described in Section 5.1.3.1. The scope management plan contains information on how the project scope will be deﬁned and developed.uuRequirements management plan. Described in Section 5.1.3.2. The requirements management plan has information on how project requirements will be collected, analyzed, and documented.uuStakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan is used to understand stakeholder communication requirements and the level of stakeholder engagement in order to assess and adapt to the level of stakeholder participation in requirements activities.

��1415.2.1.3 PROJECT DOCUMENTSExamples of project documents that can be considered as inputs for this process include but are not limited to:uuAssumption Log. Described in Section 4.1.3.2. The assumption log identiﬁed assumptions about the product, project, environment, stakeholders, and other factors that can inﬂuence requirements.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is used to provide information on effective requirements collection techniques, especially for projects that are using an iterative or adaptive product development methodology.uuStakeholder Register. Described in Section 13.1.3.1. The stakeholder register is used to identify stakeholders who can provide information on the requirements. It also captures requirements and expectations that stakeholders have for the project.5.2.1.4 BUSINESS DOCUMENTSDescribed in Section 1.2.6. A business document that can inﬂuence the Collect Requirements process is the business case, which can describe required, desired, and optional criteria for meeting the business needs.5.2.1.5 AGREEMENTSDescribed in Section 12.2.3.2. Agreements can contain project and product requirements.5.2.1.6 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Collect Requirements process include but are not limited to:uuOrganization’s culture,uuInfrastructure,uuPersonnel administration, anduuMarketplace conditions.5.2.1.7 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Collect Requirements process include but are not limited to:uuPolicies and procedures, anduuHistorical information and lessons learned repository with information from previous projects.

142 Part 1 – Guide5.2.2 COLLECT REQUIREMENTS: TOOLS AND TECHNIQUES5.2.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuBusiness analysis,uuRequirements elicitation,uuRequirements analysis,uuRequirements documentation,uuProject requirements in previous similar projects,uuDiagramming techniques,uuFacilitation, anduuConﬂict management.5.2.2.2 DATA GATHERINGData-gathering techniques that can be used for this process include but are not limited to:uuBrainstorming. Described in Section 4.1.2.2. Brainstorming is a technique used to generate and collect multiple ideas related to project and product requirements.uuInterviews. An interview is a formal or informal approach to elicit information from stakeholders by talking to them directly. It is typically performed by asking prepared and spontaneous questions and recording the responses. Interviews are often conducted on an individual basis between an interviewer and an interviewee, but may involve multiple interviewers and/or multiple interviewees. Interviewing experienced project participants, sponsors, other executives, and subject matter experts can aid in identifying and deﬁning the features and functions of the desired product deliverables. Interviews are also useful for obtaining conﬁdential information.uuFocus groups. Focus groups bring together prequaliﬁed stakeholders and subject matter experts to learn about their expectations and attitudes about a proposed product, service, or result. A trained moderator guides the group through an interactive discussion designed to be more conversational than a one-on-one interview.

143uuQuestionnaires and surveys. Questionnaires and surveys are written sets of questions designed to quickly accumulate information from a large number of respondents. Questionnaires and/or surveys are most appropriate with varied audiences, when a quick turnaround is needed, when respondents are geographically dispersed, and where statistical analysis could be appropriate.uuBenchmarking. Described in Section 8.1.2.2. Benchmarking involves comparing actual or planned products, processes, and practices to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance. The organizations compared during benchmarking can be internal or external.5.2.2.3 DATA ANALYSISDescribed in Section 4.5.2.2. Data analysis techniques that can be used for this process include but are not limited to document analysis. Document analysis consists of reviewing and assessing any relevant documented information. In this process, document analysis is used to elicit requirements by analyzing existing documentation and identifying information relevant to the requirements. There is a wide range of documents that may be analyzed to help elicit relevant requirements. Examples of documents that may be analyzed include but are not limited to:uuAgreements;uuBusiness plans;uuBusiness process or interface documentation;uuBusiness rules repositories;uuCurrent process ﬂows;uuMarketing literature;uuProblem/issue logs;uuPolicies and procedures;uuRegulatory documentation such as laws, codes, or ordinances, etc.;uuRequests for proposal; anduuUse cases.

144 Part 1 – Guide5.2.2.4 DECISION MAKINGDecision-making techniques that can be used in the Collect Requirements process include but are not limited to:uuVoting. Voting is a collective decision-making technique and an assessment process having multiple alternatives with an expected outcome in the form of future actions. These techniques can be used to generate, classify, and prioritize product requirements. Examples of voting techniques include:unUnanimity. A decision that is reached whereby everyone agrees on a single course of action.unMajority. A decision that is reached with support obtained from more than 50% of the members of the group. Having a group size with an uneven number of participants can ensure that a decision will be reached, rather than resulting in a tie.unPlurality. A decision that is reached whereby the largest block in a group decides, even if a majority is not achieved. This method is generally used when the number of options nominated is more than two. uuAutocratic decision making. In this method, one individual takes responsibility for making the decision for the group.uuMulticriteria decision analysis. A technique that uses a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas.5.2.2.5 DATA REPRESENTATIONData representation techniques that can be used for this process include but are not limited to:uuAffinity diagrams. Afﬁnity diagrams allow large numbers of ideas to be classiﬁed into groups for review and analysis.uuMind mapping. Mind mapping consolidates ideas created through individual brainstorming sessions into a single map to reﬂect commonality and differences in understanding and to generate new ideas.5.2.2.6 INTERPERSONAL AND TEAM SKILLSDescribed in Section 4.1.2.3. The interpersonal and team skills that can be used in this process include but are not limited to:uuNominal group technique. The nominal group technique enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or for prioritization. The nominal group technique is a structured form of brainstorming consisting of four steps:

145unA question or problem is posed to the group. Each person silently generates and writes down their ideas.unThe moderator writes down the ideas on a ﬂip chart until all ideas are recorded.unEach recorded idea is discussed until all group members have a clear understanding.unIndividuals vote privately to prioritize the ideas, usually using a scale of 1 – 5, with 1 being the lowest and 5 being the highest. Voting may take place in many rounds to reduce and focus in on ideas. After each round, the votes are tallied and the highest scoring ideas are selected.uuObservation/conversation. Observation and conversation provide a direct way of viewing individuals in their environment and how they perform their jobs or tasks and carry out processes. It is particularly helpful for detailed processes when the people who use the product have difﬁculty or are reluctant to articulate their requirements. Observation is also known as “job shadowing.” It is usually done externally by an observer viewing a business expert performing a job. It can also be done by a “participant observer” who actually performs a process or procedure to experience how it is done to uncover hidden requirements.uuFacilitation. Described in Section 4.1.2.3. Facilitation is used with focused sessions that bring key stakeholders together to deﬁne product requirements. Workshops can be used to quickly deﬁne cross-functional requirements and reconcile stakeholder differences. Because of their interactive group nature, well-facilitated sessions can build trust, foster relationships, and improve communication among the participants, which can lead to increased stakeholder consensus. In addition, issues can be discovered earlier and resolved more quickly than in individual sessions.Facilitation skills are used in the following situations, but are not limited to:unJoint application design/development (JAD). JAD sessions are used in the software development industry. These facilitated sessions focus on bringing business subject matter experts and the development team together to gather requirements and improve the software development process.unQuality function deployment (QFD). In the manufacturing industry, QFD is another facilitation technique that helps determine critical characteristics for new product development. QFD starts by collecting customer needs, also known as voice of the customer (VOC). These needs are then objectively sorted and prioritized, and goals are set for achieving them.unUser stories. User stories, which are short, textual descriptions of required functionality, are often developed during a requirements workshop. User stories describe the stakeholder role, who beneﬁts from the feature (role), what the stakeholder needs to accomplish (goal), and the beneﬁt to the stakeholder (motivation).

146 Part 1 – Guide5.2.2.7 CONTEXT DIAGRAMThe context diagram is an example of a scope model. Context diagrams visually depict the product scope by showing a business system (process, equipment, computer system, etc.), and how people and other systems (actors) interact with it (see Figure 5-6). Context diagrams show inputs to the business system, the actor(s) providing the input, the outputs from the business system, and the actor(s) receiving the output.Figure 5-6. Context DiagramHiringManagersInternalAssociatesInternalFull-Time andPart-TimeContractorsRecruitingAgenciesJobSeekersHR Talent Management Systems of ABC CompanyExternalJobsWebsitesExternal UsersInternal UsersExternal UsersInternal UsersInternal UsersInternal Data FlowExternal UsersLEGENDExternal Data FlowExternalJobsPostingsExternalUserProfilesInternalJobsPostingsInternalUserProfiles

��1475.2.2.8 PROTOTYPESPrototyping is a method of obtaining early feedback on requirements by providing a model of the expected product before actually building it. Examples of prototypes are small-scale products, computer generated 2D and 3D models, mock-ups, or simulations. Prototypes allow stakeholders to experiment with a model of the ﬁnal product rather than being limited to discussing abstract representations of their requirements. Prototypes support the concept of progressive elaboration in iterative cycles of mock-up creation, user experimentation, feedback generation, and prototype revision. When enough feedback cycles have been performed, the requirements obtained from the prototype are sufﬁciently complete to move to a design or build phase.Storyboarding is a prototyping technique showing sequence or navigation through a series of images or illustrations. Storyboards are used on a variety of projects in a variety of industries, such as ﬁlm, advertising, instructional design, and on agile and other software development projects. In software development, storyboards use mock-ups to show navigation paths through web pages, screens, or other user interfaces.5.2.3 COLLECT REQUIREMENTS: OUTPUTS5.2.3.1 REQUIREMENTS DOCUMENTATIONRequirements documentation describes how individual requirements meet the business need for the project. Requirements may start out at a high level and become progressively more detailed as more information about the requirements is known. Before being baselined, requirements need to be unambiguous (measurable and testable), traceable, complete, consistent, and acceptable to key stakeholders. The format of the requirements document may range from a simple document listing all the requirements categorized by stakeholder and priority, to more elaborate forms containing an executive summary, detailed descriptions, and attachments.

148 Part 1 – GuideMany organizations categorize requirements into different types, such as business and technical solutions, the former referring to stakeholder needs and the latter as to how those needs will be implemented. Requirements can be grouped into classiﬁcations allowing for further reﬁnement and detail as the requirements are elaborated. These classiﬁcations include:uuBusiness requirements. These describe the higher-level needs of the organization as a whole, such as the business issues or opportunities, and reasons why a project has been undertaken.uuStakeholder requirements. These describe needs of a stakeholder or stakeholder group.uuSolution requirements. These describe features, functions, and characteristics of the product, service, or result that will meet the business and stakeholder requirements. Solution requirements are further grouped into functional and nonfunctional requirements:unFunctional requirements. Functional requirements describe the behaviors of the product. Examples include actions, processes, data, and interactions that the product should execute.unNonfunctional requirements. Nonfunctional requirements supplement functional requirements and describe the environmental conditions or qualities required for the product to be effective. Examples include: reliability, security, performance, safety, level of service, supportability, retention/purge, etc.uuTransition and readiness requirements. These describe temporary capabilities, such as data conversion and training requirements, needed to transition from the current as-is state to the desired future state.uuProject requirements. These describe the actions, processes, or other conditions the project needs to meet. Examples include milestone dates, contractual obligations, constraints, etc.uuQuality requirements. These capture any condition or criteria needed to validate the successful completion of a project deliverable or fulﬁllment of other project requirements. Examples include tests, certiﬁcations, validations, etc.5.2.3.2 REQUIREMENTS TRACEABILITY MATRIXThe requirements traceability matrix is a grid that links product requirements from their origin to the deliverables that satisfy them. The implementation of a requirements traceability matrix helps ensure that each requirement adds business value by linking it to the business and project objectives. It provides a means to track requirements throughout the project life cycle, helping to ensure that requirements approved in the requirements documentation are delivered at the end of the project. Finally, it provides a structure for managing changes to the product scope.

��149Tracing requirements includes but is not limited to:uuBusiness needs, opportunities, goals, and objectives;uuProject objectives;uuProject scope and WBS deliverables;uuProduct design;uuProduct development;uuTest strategy and test scenarios; anduuHigh-level requirements to more detailed requirements.Attributes associated with each requirement can be recorded in the requirements traceability matrix. These attributes help to deﬁne key information about the requirement. Typical attributes used in the requirements traceability matrix may include: a unique identiﬁer, a textual description of the requirement, the rationale for inclusion, owner, source, priority, version, current status (such as active, cancelled, deferred, added, approved, assigned, completed), and status date. Additional attributes to ensure that the requirement has met stakeholders’ satisfaction may include stability, complexity, and acceptance criteria. Figure 5-7 provides an example of a requirements traceability matrix with its associated attributes.Figure 5-7. Example of a Requirements Traceability MatrixRequirements Traceability MatrixRequirements DescriptionIDBusiness Needs,Opportunities,Goals, ObjectivesProjectObjectivesAssociateIDWBSDeliverablesProductDesignProductDevelopmentTestCasesProgramsPortfoliosProject Name: Cost Center: Project Description:1.01.11.21.2.12.02.12.1.13.03.13.24.05.0001002003004005

150 Part 1 – Guide5.3 DEFINE SCOPEDefine Scope is the process of developing a detailed description of the project and product. The key benefit of this process is that it describes the product, service, or result boundaries and acceptance criteria. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-8. Figure 5-9 depicts the data flow diagram of the process.Figure 5-8. Define Scope: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDefine Scope.1 Expert judgment.2 Data analysis• Alternatives analysis.3 Decision making• Multicriteria decision analysis.4 Interpersonal and team skills• Facilitation.5 Product analysis.1 Project charter.2 Project management plan• Scope management plan.3 Project documents• Assumption log• Requirements documentation• Risk register.4 Enterprise environmental factors.5 Organizational process assets.1 Project scope statement.2 Project documents updates• Assumption log• Requirements documentation• Requirements traceability matrix• Stakeholder register

��151• Project charter5.3DefineScopeEnterprise/Organization4.1Develop ProjectCharter• Project scope statement• Project charterProject documents• Assumption log• Requirements documentation• Risk register• Enterprise environmental factors• Organizational process assetsProjectDocumentsProject management plan• Scope management planProjectManagementPlanProjectDocumentsProject document updates• Assumption log• Requirements documentation• Requirements traceability matrix• Stakeholder registerFigure 5-9. Define Scope: Data Flow DiagramSince all the requirements identiﬁed in Collect Requirements may not be included in the project, the Deﬁne Scope process selects the ﬁnal project requirements from the requirements documentation developed during the Collect Requirements process. It then develops a detailed description of the project and product, service, or result.The preparation of a detailed project scope statement builds upon the major deliverables, assumptions, and constraints that are documented during project initiation. During project planning, the project scope is deﬁned and described with greater speciﬁcity as more information about the project is known. Existing risks, assumptions, and constraints are analyzed for completeness and added or updated as necessary. The Deﬁne Scope process can be highly iterative. In iterative life cycle projects, a high-level vision will be developed for the overall project, but the detailed scope is determined one iteration at a time, and the detailed planning for the next iteration is carried out as work progresses on the current project scope and deliverables.

152 Part 1 – Guide5.3.1 DEFINE SCOPE: INPUTS5.3.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter provides the high-level project description, product characteristics, and approval requirements.5.3.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. A project management plan component includes but is not limited to the scope management plan as described in Section 5.1.3.1, which documents how the project scope will be deﬁned, validated, and controlled.5.3.1.3 PROJECT DOCUMENTSExamples of project documents that can be considered as inputs for this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log identiﬁes assumptions and constraints about the product, project, environment, stakeholders, and other factors that can inﬂuence the project and product scope.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation identiﬁes requirements that will be incorporated into the scope.uuRisk register. Described in Section 11.2.3.1. The risk register contains response strategies that may affect the project scope, such as reducing or changing project and product scope to avoid or mitigate a risk.5.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Deﬁne Scope process include but are not limited to:uuOrganization’s culture,uuInfrastructure,uuPersonnel administration, anduuMarketplace conditions.5.3.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Deﬁne Scope process include but are not limited to:uuPolicies, procedures, and templates for a project scope statement;uuProject ﬁles from previous projects; anduuLessons learned from previous phases or projects.

��1535.3.2 DEFINE SCOPE: TOOLS AND TECHNIQUES5.3.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with knowledge of or experience with similar projects.5.3.2.2 DATA ANALYSISAn example of a data analysis technique that can be used in this process includes but is not limited to alternatives analysis. Alternatives analysis can be used to evaluate ways to meet the requirements and the objectives identiﬁed in the charter.5.3.2.3 DECISION MAKINGDescribed in Section 5.1.2.2. A decision-making technique that can be used in this process includes but is not limited to multicriteria decision analysis. Described in Section 8.1.2.4, multicriteria decision analysis is a technique that uses a decision matrix to provide a systematic analytical approach for establishing criteria, such as requirements, schedule, budget, and resources, in order to reﬁne the project and product scope for the project.5.3.2.4 INTERPERSONAL AND TEAM SKILLSDescribed in Section 4.1.2.3. An example of an interpersonal and team skills technique is facilitation. Facilitation is used in workshops and working sessions with key stakeholders who have a variety of expectations or ﬁelds of expertise. The goal is to reach a cross-functional and common understanding of the project deliverables and project and product boundaries.5.3.2.5 PRODUCT ANALYSISProduct analysis can be used to deﬁne products and services. It includes asking questions about a product or service and forming answers to describe the use, characteristics, and other relevant aspects of what is going to be delivered.Each application area has one or more generally accepted methods for translating high-level product or service descriptions into meaningful deliverables. Requirements are captured at a high level and decomposed to the level of detail needed to design the ﬁnal product. Examples of product analysis techniques include but are not limited to:uuProduct breakdown,uuRequirements analysis,uuSystems analysis,uuSystems engineering,uuValue analysis, anduuValue engineering.

154 Part 1 – Guide5.3.3 DEFINE SCOPE: OUTPUTS5.3.3.1 PROJECT SCOPE STATEMENTThe project scope statement is the description of the project scope, major deliverables, assumptions, and constraints. The project scope statement documents the entire scope, including project and product scope. It describes the project’s deliverables in detail. It also provides a common understanding of the project scope among project stakeholders. It may contain explicit scope exclusions that can assist in managing stakeholder expectations. It enables the project team to perform more detailed planning, guides the project team’s work during execution, and provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the project’s boundaries.The degree and level of detail to which the project scope statement deﬁnes the work that will be performed and the work that is excluded can help determine how well the project management team can control the overall project scope. The detailed project scope statement, either directly or by reference to other documents, includes the following:uuProduct scope description. Progressively elaborates the characteristics of the product, service, or result described in the project charter and requirements documentation.uuDeliverables. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables also include ancillary results, such as project management reports and documentation. These deliverables may be described at a summary level or in great detail.uuAcceptance criteria. A set of conditions that is required to be met before deliverables are accepted.uuProject exclusions. Identiﬁes what is excluded from the project. Explicitly stating what is out of scope for the project helps manage stakeholders’ expectations and can reduce scope creep.Although the project charter and the project scope statement are sometimes perceived as containing a certain degree of redundancy, they are different in the level of detail contained in each. The project charter contains high-level information, while the project scope statement contains a detailed description of the scope components. These components are progressively elaborated throughout the project. Table 5-1 describes some of the key elements for each document.

��155Project CharterProject purpose Measurable project objectives and related success criteriaHigh-level requirementsHigh-level project description, boundaries, and key deliverablesOverall project riskSummary milestone schedulePreapproved financial resourcesKey stakeholder listProject approval requirements (i.e., what constitutes success, who decides the project is successful, who signs off on the project)Project exit criteria (i.e., what are the conditions to be met in order to close or to cancel the project or phaseAssigned project manager, responsibility, and authority levelName and authority of the sponsor or other person(s) authorizing the project charterProject Scope StatementProject scope description (progressivelyelaborated)Project deliverablesAcceptance criteriaProject exclusionsTable 5-1. Elements of the Project Charter and Project Scope Statement5.3.3.2 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log is updated with additional assumptions or constraints that were identiﬁed during this process.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated with additional or changed requirements.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix may be updated to reﬂect updates in requirement documentation.uuStakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new stakeholders is gathered as a result of this process, it is recorded in the stakeholder register.

156 Part 1 – Guide5.4 CREATE WBSCreate WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. The key beneﬁt of this process is that it provides a framework of what has to be delivered. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-10. Figure 5-11 depicts the data ﬂow diagram of the process.Figure 5-10. Create WBS: Inputs, Tools & Techniques, and OutputsFigure 5-11. Create WBS: Data Flow DiagramTools & TechniquesInputsOutputsCreate WBS.1 Expert judgment.2 Decomposition.1 Project management plan• Scope management plan.2 Project documents• Project scope statement• Requirements documentation.3 Enterprise environmental factors.4 Organizational process assets.1 Scope baseline.2 Project documents updates• Assumption log• Requirements documentation• Project charter5.4CreateWBSEnterprise/Organization• Scope baselineProject management plan• Scope management planProject documents• Project scope statement• Requirements documentation• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectManagementPlanProjectDocumentsProject document updates• Assumption log• Requirements documentationProjectManagementPlan

��157The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. The WBS organizes and deﬁnes the total scope of the project and represents the work speciﬁed in the current approved project scope statement.The planned work is contained within the lowest level of WBS components, which are called work packages. A work package can be used to group the activities where work is scheduled and estimated, monitored, and controlled. In the context of the WBS, work refers to work products or deliverables that are the result of activity and not to the activity itself.5.4.1 CREATE WBS: INPUTS5.4.1.1 PROJECT MANAGEMENT PLANA project management plan component includes but is not limited to the scope management plan. Described in Section 5.1.3.1, the scope management plan documents how the WBS will be created from the project scope statement.5.4.1.2 PROJECT DOCUMENTSExamples of project documents that can be considered as inputs for this process include but are not limited to:uuProject scope statement. Described in Section 5.3.3.1. The project scope statement describes the work that will be performed and the work that is excluded.uuRequirements documentation. Described in Section 5.2.3.1. Detailed requirements describe how individual requirements meet the business need for the project.5.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Create WBS process include but are not limited to industry-speciﬁc WBS standards that are relevant to the nature of the project. These industry-speciﬁc standards may serve as external reference sources for creating the WBS.5.4.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Create WBS process include but are not limited to:uuPolicies, procedures, and templates for the WBS;uuProject ﬁles from previous projects; anduuLessons learned from previous projects.

158 Part 1 – Guide5.4.2 CREATE WBS: TOOLS AND TECHNIQUES5.4.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with knowledge of or experience with similar projects.5.4.2.2 DECOMPOSITIONDecomposition is a technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts. The work package is the work deﬁned at the lowest level of the WBS for which cost and duration can be estimated and managed. The level of decomposition is often guided by the degree of control needed to effectively manage the project. The level of detail for work packages will vary with the size and complexity of the project. Decomposition of the total project work into work packages generally involves the following activities:uuIdentifying and analyzing the deliverables and related work,uuStructuring and organizing the WBS,uuDecomposing the upper WBS levels into lower-level detailed components,uuDeveloping and assigning identiﬁcation codes to the WBS components, anduuVerifying that the degree of decomposition of the deliverables is appropriate.A portion of a WBS with some branches of the WBS decomposed down through the work package level is shown in Figure 5-12.Figure 5-12. Sample WBS Decomposed Down Through Work Packages1.0Value ManagementSystem Project1.1NeedsAssessment1.2StandardsDevelopment1.3SystemsEngineering 1.4ProjectManagementThe WBS is illustrative only. It is not intended to represent the full project scope of any specific project, nor to imply that this is the only way to organize a WBS on this type of project.1.1.1.1ComponentsIdentification1.1.2.1GapAssessment1.1.3.1AlternativesIdentification1.1.4System RequirementsDevelopment1.1.3AlternativesDevelopment1.1.2RequirementsDetermination1.1.1Current SystemAudit1.1.1.2ComponentsAnalysis1.1.2.2RequirementsChanges Identification1.1.3.2AlternativesAnalysis

��159A WBS structure may be created through various approaches. Some of the popular methods include the top-down approach, the use of organization-speciﬁc guidelines, and the use of WBS templates. A bottom-up approach can be used to group subcomponents. The WBS structure can be represented in a number of forms, such as:uuUsing phases of the project life cycle as the second level of decomposition, with the product and project deliverables inserted at the third level, as shown in Figure 5-13;uuUsing major deliverables as the second level of decomposition, as shown in Figure 5-14; anduuIncorporating subcomponents that may be developed by organizations outside the project team, such as contracted work. The seller then develops the supporting contract WBS as part of the contracted work.Figure 5-13. Sample WBS Organized by PhasePlanningSoftware Product Release 5.0Detail DesignConstructIntegration and TestProject ManagementProduct RequirementsSoftwareSoftwareSoftwareSoftwareMeetingsUser Documentation User Documentation User Documentation User Documentation AdministrationTraining Program MaterialsTraining Program MaterialsTraining Program MaterialsTraining Program MaterialsThe WBS is illustrative only. It is not intended to represent the full project scope of any specific project, nor to imply that this is the only way to organize a WBS on this type of project.

160 Part 1 – GuideSystem Engineering Management Supporting PM Activities Aircraft System Project ManagementEquipment TrainingFacilities Training Services Training TrainingTechnical Orders Engineering Data Management Data DataAir VehicleOrganizational Level SE Intermediate Level SE Depot Level SE Support EquipmentAirframeEngineCommunication System Navigation System Fire Control System Base Buildings Maintenance Facility FacilitiesMock-upsOperational TestDevelopmental TestTestTest and EvaluationThe WBS is illustrative only. It is not intended to represent the full project scope of any specific project, nor to imply that this is the only way to organize a WBS on this type of project.Figure 5-14. Sample WBS with Major DeliverablesDecomposition of the upper-level WBS components requires subdividing the work for each of the deliverables or subcomponents into its most fundamental components, where the WBS components represent veriﬁable products, services, or results. If an agile approach is used, epics can be decomposed into user stories. The WBS may be structured as an outline, an organizational chart, or other method that identiﬁes a hierarchical breakdown. Verifying the correctness of the decomposition requires determining that the lower-level WBS components are those that are necessary and sufﬁcient for completion of the corresponding higher-level deliverables. Different deliverables can have different levels of decomposition. To arrive at a work package, the work for some deliverables needs to be decomposed only to the next level, while others need additional levels of decomposition. As the work is decomposed to greater levels of detail, the ability to plan, manage, and control the work is enhanced. However, excessive decomposition can lead to nonproductive management effort, inefﬁcient use of resources, decreased efﬁciency in performing the work, and difﬁculty aggregating data over different levels of the WBS.Decomposition may not be possible for a deliverable or subcomponent that will be accomplished far into the future. The project management team usually waits until the deliverable or subcomponent is agreed on, so the details of the WBS can be developed. This technique is sometimes referred to as rolling wave planning.

��161The WBS represents all product and project work, including the project management work. The total of the work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This is sometimes called the 100 percent rule.For speciﬁc information regarding the WBS, refer to the Practice Standard for Work Breakdown Structures – Second Edition [15]. This standard contains industry-speciﬁc examples of WBS templates that can be tailored to speciﬁc projects in a particular application area.5.4.3 CREATE WBS: OUTPUTS5.4.3.1 SCOPE BASELINEThe scope baseline is the approved version of a scope statement, WBS, and its associated WBS dictionary, which can be changed only through formal change control procedures and is used as a basis for comparison. It is a component of the project management plan. Components of the scope baseline include:uuProject scope statement. The project scope statement includes the description of the project scope, major deliverables, assumptions, and constraints (Section 5.3.3.1).uuWBS. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed deﬁnition of the project work.uuWork package. The lowest level of the WBS is a work package with a unique identiﬁer. These identiﬁers provide a structure for hierarchical summation of costs, schedule, and resource information and form a code of accounts. Each work package is part of a control account. A control account is a management control point where scope, budget, and schedule are integrated and compared to the earned value for performance measurement. A control account has two or more work packages, though each work package is associated with a single control account.uuPlanning package. A control account may include one or more planning packages. A planning package is a work breakdown structure component below the control account and above the work package with known work content but without detailed schedule activities.

162 Part 1 – GuideuuWBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Most of the information included in the WBS dictionary is created by other processes and added to this document at a later stage. Information in the WBS dictionary may include but is not limited to:unCode of account identiﬁer,unDescription of work,unAssumptions and constraints,unResponsible organization,unSchedule milestones,unAssociated schedule activities,unResources required,unCost estimates,unQuality requirements,unAcceptance criteria,unTechnical references, andunAgreement information.5.4.3.2 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:unAssumption log. Described in Section 4.1.3.2. The assumption log is updated with additional assumptions or constraints that were identiﬁed during the Create WBS process.unRequirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated to include approved changes resulting from the Create WBS process.

��1635.5 VALIDATE SCOPEValidate Scope is the process of formalizing acceptance of the completed project deliverables. The key beneﬁt of this process is that it brings objectivity to the acceptance process and increases the probability of ﬁnal product, service, or result acceptance by validating each deliverable. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-15. Figure 5-16 depicts the data ﬂow diagram of the process.Figure 5-15. Validate Scope: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsValidate Scope.1 Inspection.2 Decision making• Voting.1 Project management plan• Scope management plan• Requirements management plan• Scope baseline.2 Project documents• Lessons learned register• Quality reports• Requirements documentation• Requirements traceability matrix.3 Verified deliverables.4 Work performance data.1 Accepted deliverables.2 Work performance information.3 Change requests.4 Project document updates• Lessons learned register• Requirements documentation• Requirements traceability matrix

164 Part 1 – Guide• Project charter8.3 ControlQuality4.3Direct andManageProject Execution• Work performance data• Verified deliverables• Accepted deliverables• Changerequests• Work performance informationProject documents updates• Lessons learned register• Requirementsdocumentation• Requirements traceability matrixProject management plan• Scope management plan • Requirements management plan• Scope baselineProject documents• Lessons learned register• Quality report• Requirements documentation• Requirements traceability matrixProjectManagementPlanProjectDocumentsProjectDocuments4.5Monitor andControlProject Work4.6PerformIntegratedChange Control4.7Close Projector Phase5.5ValidateScopeFigure 5-16. Validate Scope: Data Flow DiagramThe veriﬁed deliverables obtained from the Control Quality process are reviewed with the customer or sponsor to ensure they are completed satisfactorily and have received formal acceptance of the deliverables by the customer or sponsor. In this process, the outputs obtained as a result of the Planning processes in the Project Scope Management Knowledge Area, such as the requirements documentation or the scope baseline, as well as the work performance data obtained from the Execution processes in other Knowledge Areas, are the basis for performing the validation and for ﬁnal acceptance.The Validate Scope process differs from the Control Quality process in that the former is primarily concerned with acceptance of the deliverables, while the latter is primarily concerned with correctness of the deliverables and meeting the quality requirements speciﬁed for the deliverables. Control Quality is generally performed before Validate Scope, although the two processes may be performed in parallel.

��1655.5.1 VALIDATE SCOPE: INPUTS5.5.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuScope management plan. Described in Section 5.1.3.1. The project management plan speciﬁes how formal acceptance of the completed project deliverables will be obtained.uuRequirements management plan. Described in Section 5.1.3.2. The requirements management plan describes how the project requirements are validated.uuScope baseline. Described in Section 5.4.3.1. The scope baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary.5.5.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register: Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve the efﬁciency and effectiveness of validating deliverables.uuQuality reports. Described in Section 8.2.3.1. The information presented in the quality report may include all quality assurance issues managed or escalated by the team, recommendations for improvement, and the summary of ﬁndings from the Control Quality process. This information is reviewed prior to product acceptance.uuRequirements documentation. Described in Section 5.2.3.1. Requirements are compared to the actual results to determine if a change, corrective action, or preventive action is necessary.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix contains information about requirements, including how they will be validated.5.5.1.3 VERIFIED DELIVERABLESVeriﬁed deliverables are project deliverables that are completed and checked for correctness through the Control Quality process.5.5.1.4 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data can include the degree of compliance with requirements, number of nonconformities, severity of the nonconformities, or the number of validation cycles performed in a period of time.

166 Part 1 – Guide5.5.2 VALIDATE SCOPE: TOOLS AND TECHNIQUES5.5.2.1 INSPECTIONDescribed in Section 8.3.2.3. Inspection includes activities such as measuring, examining, and validating to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called reviews, product reviews, and walkthroughs. In some application areas, these different terms have unique and speciﬁc meanings.5.5.2.2 DECISION MAKINGDescribed in Section 5.2.2.4. An example of decision making that may be used in this process includes but is not limited to voting. Voting is used to reach a conclusion when the validation is performed by the project team and other stakeholders.5.5.3 VALIDATE SCOPE: OUTPUTS5.5.3.1 ACCEPTED DELIVERABLESDeliverables that meet the acceptance criteria are formally signed off and approved by the customer or sponsor. Formal documentation received from the customer or sponsor acknowledging formal stakeholder acceptance of the project’s deliverables is forwarded to the Close Project or Phase process (Section 4.7).5.5.3.2 WORK PERFORMANCE INFORMATIONWork performance information includes information about project progress, such as which deliverables have been accepted and which have not been accepted and the reasons why. This information is documented as described in Section 10.3.3.1 and communicated to stakeholders.5.5.3.3 CHANGE REQUESTSThe completed deliverables that have not been formally accepted are documented, along with the reasons for non-acceptance of those deliverables. Those deliverables may require a change request for defect repair. The change requests (described in Section 4.3.3.4) are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

1675.5.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well for validating deliverables.uuRequirements documentation. Described in Section 5.2.3.1. The requirements documentation may be updated with the actual results of validation activity. Of particular interest is when the actual results are better than the requirement or where a requirement was waived.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix is updated with the results of the validation, including the method used and the outcome.5.6 CONTROL SCOPEControl Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline. The key beneﬁt of this process is that the scope baseline is maintained throughout the project. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 5-17. Figure 5-18 depicts the data ﬂow diagram of the process.Figure 5-17. Control Scope: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsControl Scope.1 Data analysis• Variance analysis• Trend analysis.1 Project management plan• Scope management plan• Requirements management plan• Change management plan• Configuration management plan• Scope baseline• Performance measurement baseline.2 Project documents• Lessons learned register• Requirements documentation• Requirements traceability matrix.3 Work performance data.4 Organizational process assets.1 Work performance information.2 Change requests.3 Project management plan updates• Scope management plan• Scope baseline• Schedule baseline• Cost baseline• Performance measurement baseline.4 Project documents updates• Lessons learned register• Requirements documentation• Requirements traceability matrix

168 Part 1 – Guide• Project charter4.3Direct andManageProject Work• Work performance dataProject management plan• Scope management plan • Requirements management plan• Change management plan• Configuration management plan• Scope baseline• Performance measurement baselineProject documents• Lessons learned register• Requirements documentation• Requirements traceability matrixProjectManagementPlanProjectDocumentsProjectDocuments4.6PerformIntegratedChange Control4.5Monitor andControlProject Work5.6ControlScopeEnterprise/Organization• Organizational process assets• Work performance information• Change requestsProjectManagementPlanProject management plan updates• Scope management plan• Scope baseline• Schedule baseline• Cost baseline• Performance measurementbaselineProject documentsupdates• Lessons learned register• Requirements documentation• Requirements traceability matrixFigure 5-18. Control Scope: Data Flow DiagramControlling the project scope ensures all requested changes and recommended corrective or preventive actions are processed through the Perform Integrated Change Control process (see Section 4.6). Control Scope is also used to manage the actual changes when they occur and is integrated with the other control processes. The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources is referred to as scope creep. Change is inevitable; therefore, some type of change control process is mandatory for every project.

��1695.6.1 CONTROL SCOPE: INPUTS5.6.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuScope management plan. Described in Section 5.1.3.1. The scope management plan documents how the project and product scope will be controlled.uuRequirements management plan. Described in Section 5.1.3.2. The requirements management plan describes how the project requirements will be managed.uuChange management plan. Described in Section 4.2.3.1. The change management plan deﬁnes the process for managing change on the project.uuConfiguration management plan. Described in Section 4.2.3.1. The conﬁguration management plan deﬁnes those items that are conﬁgurable, those items that require formal change control, and the process for controlling changes to such items.uuScope baseline. Described in Section 5.4.3.1. The scope baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary.uuPerformance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis, the performance measurement baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary.5.6.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve scope control.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation is used to detect any deviation in the agreed-upon scope for the project or product.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix helps to detect the impact of any change or deviation from the scope baseline on the project objectives. It may also provide status of requirements being controlled.5.6.1.3 WORK PERFORMANCE DATAWork performance data can include the number of change requests received, the number of requests accepted, and the number of deliverables veriﬁed, validated, and completed.

170 Part 1 – Guide5.6.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Control Scope process include but are not limited to:uuExisting formal and informal scope, control-related policies, procedures, guidelines; anduuMonitoring and reporting methods and templates to be used.5.6.2 CONTROL SCOPE: TOOLS AND TECHNIQUES5.6.2.1 DATA ANALYSISData analysis techniques that can be used in the Control Scope process include but are not limited to:uuVariance analysis. Described in Section 4.5.2.2. Variance analysis is used to compare the baseline to the actual results and determine if the variance is within the threshold amount or if corrective or preventive action is appropriate.uuTrend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to determine if performance is improving or deteriorating.Important aspects of project scope control include determining the cause and degree of variance relative to the scope baseline (Section 5.4.3.1) and deciding whether corrective or preventive action is required.5.6.3 CONTROL SCOPE: OUTPUTS5.6.3.1 WORK PERFORMANCE INFORMATIONWork performance information produced includes correlated and contextualized information on how the project and product scope are performing compared to the scope baseline. It can include the categories of the changes received, the identiﬁed scope variances and their causes, how they impact schedule or cost, and the forecast of the future scope performance.5.6.3.2 CHANGE REQUESTSDescribed in Section 4.3.3.4. Analysis of project performance may result in a change request to the scope and schedule baselines or other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

��1715.6.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuScope management plan. Described in Section 5.1.3.1. The scope management plan may be updated to reﬂect a change in how the scope is managed.uuScope baseline. Described in Section 5.4.3.1. Changes to the scope baseline are incorporated in response to approved changes in scope, scope statement, the WBS, or the WBS dictionary. In some cases, scope variances can be so severe that a revised scope baseline is needed to provide a realistic basis for performance measurement.uuSchedule baseline. Described in Section 6.5.3.1. Changes to the schedule baseline are incorporated in response to approved changes in scope, resources, or schedule estimates. In some cases, schedule variances can be so severe that a revised schedule baseline is needed to provide a realistic basis for performance measurement.uuCost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a revised cost baseline is needed to provide a realistic basis for performance measurement.uuPerformance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates. In some cases, the performance variances can be so severe that a change request is put forth to revise the performance measurement baseline to provide a realistic basis for performance measurement. 5.6.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that are efﬁcient and effective in controlling scope, including causes of variances and corrective actions chosen.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation may be updated with additional or changed requirements.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix may be updated to reﬂect updates in requirement documentation.

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��1736PROJECT SCHEDULE MANAGEMENTProject Schedule Management includes the processes required to manage the timely completion of the project. The Project Schedule Management processes are:6.1 Plan Schedule Management—The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.6.2 Define Activities—The process of identifying and documenting the speciﬁc actions to be performed to produce the project deliverables.6.3 Sequence Activities—The process of identifying and documenting relationships among the project activities.6.4 Estimate Activity Durations—The process of estimating the number of work periods needed to complete individual activities with the estimated resources.6.5 Develop Schedule—The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model for project execution and monitoring and controlling.6.6 Control Schedule—The process of monitoring the status of the project to update the project schedule and manage changes to the schedule baseline.Figure 6-1 provides an overview of the Project Schedule Management processes. The Project Schedule Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

174 Part 1 – Guide.1 Inputs .1 Project charter .2 Project management plan .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Meetings.3 Outputs .1 Schedule management plan.1 Inputs .1 Project management plan .2 Enterprise environmental factors .3 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Decomposition .3 Rolling wave planning .4 Meetings.3 Outputs .1 Activity list .2 Activity attributes .3 Milestone list .4 Change requests .5 Project management plan updates.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Precedence diagramming method .2 Dependency determination and integration .3 Leads and lags .4 Project management information system .3 Outputs .1 Project schedule network diagrams .2 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Analogous estimating .3 Parametric estimating .4 Three-point estimating .5 Bottom-up estimating .6 Data analysis .7 Decision making .8 Meetings.3 Outputs .1 Duration estimates .2 Basis of estimates .3 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Agreements .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Schedule network analysis .2 Critical path method .3 Resource optimization .4 Data analysis .5 Leads and lags .6 Schedule compression .7 Project management information system .8 Agile release planning.3 Outputs .1 Schedule baseline .2 Project schedule .3 Schedule data .4 Project calendars .5 Change requests .6 Project management plan updates .7 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Work performance data .4 Organizational process assets.2 Tools & Techniques .1 Data analysis .2 Critical path method .3 Project management information system .4 Resource optimization .5 Leads and lags .6 Schedule compression.3 Outputs .1 Work performance information .2 Schedule forecasts .3 Change requests .4 Project management plan updates .5 Project documents updatesProject ScheduleManagement Overview6.2 Define Activities6.1 Plan ScheduleManagement6.3 Sequence Activities6.4 EstimateActivity Durations6.5 Develop Schedule6.6 Control ScheduleFigure 6-1. Project Schedule Management Overview

��175KEY CONCEPTS FOR PROJECT SCHEDULE MANAGEMENTProject scheduling provides a detailed plan that represents how and when the project will deliver the products, services, and results deﬁned in the project scope and serves as a tool for communication, managing stakeholders’ expectations, and as a basis for performance reporting.The project management team selects a scheduling method, such as critical path or an agile approach. Then, the project-speciﬁc data, such as the activities, planned dates, durations, resources, dependencies, and constraints, are entered into a scheduling tool to create a schedule model for the project. The result is a project schedule. Figure 6-2 provides a scheduling overview that shows how the scheduling method, scheduling tool, and outputs from the Project Schedule Management processes interact to create a schedule model.For smaller projects, deﬁning activities, sequencing activities, estimating activity durations, and developing the schedule model are so tightly linked that they are viewed as a single process that can be performed by a person over a relatively short period of time. These processes are presented here as distinct elements because the tools and techniques for each process are different. Some of these processes are presented more fully in the Practice Standard for Scheduling [2].When possible, the detailed project schedule should remain ﬂexible throughout the project to adjust for knowledge gained, increased understanding of the risk, and value-added activities.

176 Part 1 – GuideExamples of Project Schedule PresentationsNetwork DiagramBar ChartActivity ListProjectScheduleScheduleModelProjectInformationSchedulingMethodSchedulingToolOutputGeneratesProject Specific Data(e.g., WBS, activities,resources, durations, dependencies, constraints,calendars, milestoneslags, etc.)For example,CPMFigure 6-2. Scheduling Overview

177TRENDS AND EMERGING PRACTICES IN PROJECT SCHEDULE MANAGEMENTWith high levels of uncertainty and unpredictability in a fast-paced, highly competitive global marketplace where long term scope is difﬁcult to deﬁne, it is becoming even more important to have a contextual framework for effective adoption and tailoring of development practices to respond to the changing needs of the environment. Adaptive planning deﬁnes a plan but acknowledges that once work starts, the priorities may change and the plan needs to reﬂect this new knowledge.Some of the emerging practices for project scheduling methods include but are not limited to:uuIterative scheduling with a backlog. This is a form of rolling wave planning based on adaptive life cycles, such as the agile approach for product development. The requirements are documented in user stories that are then prioritized and reﬁned just prior to construction, and the product features are developed using time-boxed periods of work. This approach is often used to deliver incremental value to the customer or when multiple teams can concurrently develop a large number of features that have few interconnected dependencies. This scheduling method is appropriate for many projects as indicated by the widespread and growing use of adaptive life cycles for product development. The beneﬁt of this approach is that it welcomes changes throughout the development life cycle.uuOn-demand scheduling. This approach, typically used in a Kanban system, is based on the theory-of-constraints and pull-based scheduling concepts from lean manufacturing to limit a team’s work in progress in order to balance demand against the team’s delivery throughput. On-demand scheduling does not rely on a schedule that was developed previously for the development of the product or product increments, but rather pulls work from a backlog or intermediate queue of work to be done immediately as resources become available. On-demand scheduling is often used for projects that evolve the product incrementally in operational or sustainment environments, and where tasks may be made relatively similar in size and scope or can be bundled by size and scope.

178 Part 1 – GuideTAILORING CONSIDERATIONSBecause each project is unique, the project manager may need to tailor the way Project Schedule Management processes are applied. Considerations for tailoring include but are not limited to:uuLife cycle approach. What is the most appropriate life cycle approach that allows for a more detailed schedule?uuResource availability. What are the factors inﬂuencing durations (such as the correlation between available resources and their productivity)?uuProject dimensions. How will the presence of project complexity, technological uncertainty, product novelty, pace, or progress tracking (such as earned value, percentage complete, red-yellow-green (stop light) indicators) impact the desired level of control?uuTechnology support. Is technology used to develop, record, transmit, receive, and store project schedule model information and is it readily accessible?For more speciﬁc information regarding scheduling, refer to the Practice Standard for Scheduling [16].CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSAdaptive approaches use short cycles to undertake work, review the results, and adapt as necessary. These cycles provide rapid feedback on the approaches and suitability of deliverables, and generally manifest as iterative scheduling and on-demand, pull-based scheduling, as discussed in the section on Key Trends and Emerging Practices in Project Schedule Management. In large organizations, there may be a mixture of small projects and large initiatives requiring long-term roadmaps to manage the development of these programs using scaling factors (e.g., team size, geographical distribution, regulatory compliance, organizational complexity, and technical complexity). To address the full delivery life cycle for larger, enterprise-wide systems, a range of techniques utilizing a predictive approach, adaptive approach, or a hybrid of both, may need to be adopted. The organization may need to combine practices from several core methods, or adopt a method that has already done so, and adopt a few principles and practices of more traditional techniques.The role of the project manager does not change based on managing projects using a predictive development life cycle or managing projects in adaptive environments. However, to be successful in using adaptive approaches, the project manager will need to be familiar with the tools and techniques to understand how to apply them effectively.

��1796.1 PLAN SCHEDULE MANAGEMENTPlan Schedule Management is the process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. The key beneﬁt of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 6-3. Figure 6-4 depicts the data ﬂow diagram for the process.Figure 6-3. Plan Schedule Management: Inputs, Tools & Techniques, and OutputsFigure 6-4. Plan Schedule Management: Data Flow DiagramTools & TechniquesInputsOutputsPlan Schedule Management.1 Expert judgment.2 Data analysis.3 Meetings.1 Project charter.2 Project management plan• Scope management plan• Development approach.3 Enterprise environmental factors.4 Organizational process assets.1 Schedule management plan • Project charter6.1Plan ScheduleManagementEnterprise/Organization4.1Develop ProjectCharter• Schedule management plan• Project charterProject management plan• Scope management plan• Development approach• Enterprise environmental factors• Organizational process assetsProjectManagementPlanProjectManagementPlan

180 Part 1 – Guide6.1.1 PLAN SCHEDULE MANAGEMENT: INPUTS6.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter deﬁnes the summary milestone schedule that will inﬂuence the management of the project schedule.6.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.3.2.1. Project management plan components include but are not limited to:uuScope management plan. Described in Section 5.1.3.1. The scope management plan describes how the scope will be deﬁned and developed, which will provide information on how the schedule will be developed.uuDevelopment approach. Described in Section 4.2.3.1. The product development approach will help deﬁne the scheduling approach, estimating techniques, scheduling tools, and techniques for controlling the schedule.6.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Schedule Management process include but are not limited to:uuOrganizational culture and structure,uuTeam resource availability and skills and physical resource availability,uuScheduling software,uuGuidelines and criteria for tailoring the organization’s set of standard processes and procedures to satisfy the speciﬁc needs of the project, anduuCommercial databases, such as standardized estimating data.6.1.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Schedule Management process include but are not limited to:uuHistorical information and lessons learned repositories;uuExisting formal and informal schedule development, management- and control-related policies, procedures, and guidelines;uuTemplates and forms; anduuMonitoring and reporting tools.

��1816.1.2 PLAN SCHEDULE MANAGEMENT: TOOLS AND TECHNIQUES6.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in previous, similar projects:uuSchedule development, management, and control;uuScheduling methodologies (e.g., predictive or adaptive life cycle);uuScheduling software; anduuThe speciﬁc industry for which the project is developed.6.1.2.2 DATA ANALYSISA data analysis technique that can be used for this process includes but is not limited to alternatives analysis. Alternatives analysis can include determining which schedule methodology to use, or how to combine various methods on the project. It can also include determining how detailed the schedule needs to be, the duration of waves for rolling wave planning, and how often it should be reviewed and updated. An appropriate balance between the level of detail needed to manage the schedule and the amount of time it takes to keep it up to date needs to be reached for each project.6.1.2.3 MEETINGSProject teams may hold planning meetings to develop the schedule management plan. Participants at these meetings may include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for schedule planning or execution, and others as needed.6.1.3 PLAN SCHEDULE MANAGEMENT: OUTPUTS6.1.3.1 SCHEDULE MANAGEMENT PLANThe schedule management plan is a component of the project management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management plan may be formal or informal, highly detailed, or broadly framed based on the needs of the project, and includes appropriate control thresholds.

182 Part 1 – GuideThe schedule management plan can establish the following:uuProject schedule model development. The scheduling methodology and the scheduling tool to be used in the development of the project schedule model are speciﬁed.uuRelease and iteration length. When using an adaptive life cycle, the time-boxed periods for releases, waves, and iterations are speciﬁed. Time-boxed periods are durations during which the team works steadily toward completion of a goal. Time-boxing helps to minimize scope creep as it forces the teams to process essential features ﬁrst, then other features when time permits.uuLevel of accuracy. The level of accuracy speciﬁes the acceptable range used in determining realistic activity duration estimates and may include an amount for contingencies.uuUnits of measure. Each unit of measurement (such as staff hours, staff days, or weeks for time measures, or meters, liters, tons, kilometers, or cubic yards for quantity measures) is deﬁned for each of the resources.uuOrganizational procedures links. The work breakdown structure (WBS) (Section 5.4) provides the framework for the schedule management plan, allowing for consistency with the estimates and resulting schedules.uuProject schedule model maintenance. The process used to update the status and record progress of the project in the schedule model during the execution of the project is deﬁned.uuControl thresholds. Variance thresholds for monitoring schedule performance may be speciﬁed to indicate an agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically expressed as percentage deviations from the parameters established in the baseline plan.uuRules of performance measurement. Earned value management (EVM) rules or other physical measurement rules of performance measurement are set. For example, the schedule management plan may specify:unRules for establishing percent complete,unEVM techniques (e.g., baselines, ﬁxed-formula, percent complete, etc.) to be employed (for more speciﬁc information, refer to the Practice Standard for Earned Value Management [17]), andunSchedule performance measurements such as schedule variance (SV) and schedule performance index (SPI) used to assess the magnitude of variation to the original schedule baseline.uuReporting formats. The formats and frequency for the various schedule reports are deﬁned.

��1836.2 DEFINE ACTIVITIESDeﬁne Activities is the process of identifying and documenting the speciﬁc actions to be performed to produce the project deliverables. The key beneﬁt of this process is that it decomposes work packages into schedule activities that provide a basis for estimating, scheduling, executing, monitoring, and controlling the project work. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 6-5. Figure 6-6 depicts the data ﬂow diagram of the process.Figure 6-5. Define Activities: Inputs, Tools & Techniques, and OutputsFigure 6-6. Define Activities: Data Flow DiagramTools & TechniquesInputsOutputsDefine Activities.1 Expert judgment.2 Decomposition.3 Rolling wave planning.4 Meetings.1 Project management plan• Schedule management plan• Scope baseline.2 Enterprise environmental factors.3 Organizational process assets.1 Activity list.2 Activity attributes.3 Milestone list.4 Change requests.5 Project management plan updates• Schedule baseline• Cost baseline• Project charter6.2DefineActivitiesEnterprise/Organization• Activity list• Activity attributes• Milestone list• Change requestsProject management plan• Scope management plan• Scope baseline• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectManagementPlanProject managementplan updates• Schedule baseline• Cost baselineProjectManagementPlan4.6 Perform IntegratedChange Control

184 Part 1 – Guide6.2.1 DEFINE ACTIVITIES: INPUTS6.2.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the schedule methodology, the duration of waves for rolling wave planning, and the level of detail necessary to manage the work.uuScope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions documented in the scope baseline are considered explicitly while deﬁning activities.6.2.1.2 ENTERPRISE ENVIRONMENTAL FACTORSEnterprise environmental factors that inﬂuence the Deﬁne Activities process include but are not limited to:uuOrganizational cultures and structure,uuPublished commercial information from commercial databases, anduuProject management information system (PMIS).6.2.1.3 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Deﬁne Activities process include but are not limited to:uuLessons learned repository containing historical information regarding activity lists used by previous similar projects,uuStandardized processes,uuTemplates that contain a standard activity list or a portion of an activity list from a previous project, anduuExisting formal and informal activity planning-related policies, procedures, and guidelines, such as the scheduling methodology, that are considered in developing the activity deﬁnitions.6.2.2 DEFINE ACTIVITIES: TOOLS AND TECHNIQUES6.2.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge of similar past projects and the work being performed.

1856.2.2.2 DECOMPOSITIONDescribed in Section 5.4.2.2. Decomposition is a technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts. Activities represent the effort needed to complete a work package. The Deﬁne Activities process deﬁnes the ﬁnal outputs as activities rather than deliverables, as done in the Create WBS process (Section 5.4).The activity list, WBS, and WBS dictionary can be developed either sequentially or concurrently, with the WBS and WBS dictionary used as the basis for development of the ﬁnal activity list. Each work package within the WBS is decomposed into the activities required to produce the work package deliverables. Involving team members in the decomposition can lead to better and more accurate results.6.2.2.3 ROLLING WAVE PLANNINGRolling wave planning is an iterative planning technique in which the work to be accomplished in the near term is planned in detail, while work further in the future is planned at a higher level. It is a form of progressive elaboration applicable to work packages, planning packages, and release planning when using an agile or waterfall approach. Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. During early strategic planning when information is less deﬁned, work packages may be decomposed to the known level of detail. As more is known about the upcoming events in the near term, work packages can be decomposed into activities.6.2.2.4 MEETINGSMeetings may be face-to-face, virtual, formal, or informal. Meetings may be held with team members or subject matter experts to deﬁne the activities needed to complete the work.6.2.3 DEFINE ACTIVITIES: OUTPUTS6.2.3.1 ACTIVITY LISTThe activity list includes the schedule activities required on the project. For projects that use rolling wave planning or agile techniques, the activity list will be updated periodically as the project progresses. The activity list includes an activity identiﬁer and a scope of work description for each activity in sufﬁcient detail to ensure that project team members understand what work is required to be completed.

186 Part 1 – Guide6.2.3.2 ACTIVITY ATTRIBUTESActivity attributes extend the description of the activity by identifying multiple components associated with each activity. The components for each activity evolve over time. During the initial stages of the project, they include the unique activity identiﬁer (ID), WBS ID, and activity label or name. When completed, they may include activity descriptions, predecessor activities, successor activities, logical relationships, leads and lags (Section 6.3.2.3), resource requirements, imposed dates, constraints, and assumptions. Activity attributes can be used to identify the place where the work has to be performed, the project calendar the activity is assigned to, and the type of effort involved. Activity attributes are used for schedule development and for selecting, ordering, and sorting the planned schedule activities in various ways within reports6.2.3.3 MILESTONE LISTA milestone is a signiﬁcant point or event in a project. A milestone list identiﬁes all project milestones and indicates whether the milestone is mandatory, such as those required by contract, or optional, such as those based on historical information. Milestones have zero duration because they represent a signiﬁcant point or event.6.2.3.4 CHANGE REQUESTSDescribed in Section 4.3.3.4. Once the project has been baselined, the progressive elaboration of deliverables into activities may reveal work that was not initially part of the project baselines. This may result in a change request. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).6.2.3.5 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuSchedule baseline. Described in Section 6.5.3.1. Throughout the project, work packages are progressively elaborated into activities. This process may reveal work that was not part of the initial schedule baseline, necessitating a change to delivery dates or other significant schedule milestones that are part of the schedule baseline.uuCost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to approved changes in schedule activities.

��1876.3 SEQUENCE ACTIVITIESSequence Activities is the process of identifying and documenting relationships among the project activities. The key beneﬁt of this process is that it deﬁnes the logical sequence of work to obtain the greatest efﬁciency given all project constraints. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 6-7. Figure 6-8 depicts the data ﬂow diagram of the process.Figure 6-7. Sequence Activities: Inputs, Tools & Techniques, and OutputsFigure 6-8. Sequence Activities: Data Flow DiagramTools & TechniquesInputsOutputsSequence Activities.1 Precedence diagramming method.2 Dependency determination and integration.3 Leads and lags.4 Project management information system.1 Project management plan• Schedule management plan• Scope baseline.2 Project documents• Activity attributes• Activity list• Assumption log• Milestone list.3 Enterprise environmental factors.4 Organizational process assets.1 Project schedule network diagrams.2 Project documents updates• Activity attributes• Activity list• Assumption log• Milestone list6.3SequenceActivitiesEnterprise/OrganizationProject documents updates• Activity attributes• Activity list• Assumption log• Milestone list• Project schedule network diagramsProject management plan• Schedule management plan• Scope baselineProject documents• Activity attributes• Activity list• Assumption log• Milestone list• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectDocumentsProjectManagementPlan

188 Part 1 – GuideEvery activity except the ﬁrst and last should be connected to at least one predecessor and at least one successor activity with an appropriate logical relationship. Logical relationships should be designed to create a realistic project schedule. It may be necessary to use lead or lag time between activities to support a realistic and achievable project schedule. Sequencing can be performed by using project management software or by using manual or automated techniques. The Sequence Activities process concentrates on converting the project activities from a list to a diagram to act as a ﬁrst step to publish the schedule baseline.6.3.1 SEQUENCE ACTIVITIES: INPUTS6.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the method used and the level of accuracy along with other criteria required to sequence activities.uuScope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions documented in the scope baseline are considered explicitly while sequencing activities.6.3.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity attributes may describe a necessary sequence of events or deﬁned predecessor or successor relationships, as well as deﬁned lead and lag and logical relationships between the activities.uuActivity list. Described in Section 6.2.3.1. The activity list contains all schedule activities required on the project that are to be sequenced. Dependencies and other constraints for these activities can inﬂuence the sequencing of the activities.uuAssumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may inﬂuence the way activities are sequenced, the relationship between activities, and the need for leads and lags, and may give rise to individual project risks that may impact the project schedule.uuMilestone list. Described in Section 6.2.3.3. The milestone list may have scheduled dates for speciﬁc milestones, which may inﬂuence the way activities are sequenced.

1896.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Sequence Activities process include but are not limited to:uuGovernment or industry standards,uuProject management information system (PMIS),uuScheduling tools, anduuOrganization work authorization systems.6.3.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Sequence Activities process include but are not limited to:uuPortfolio and program plans and project dependencies and relationships;uuExisting formal and informal activity planning-related policies, procedures, and guidelines, such as the scheduling methodology that is considered in developing logical relationships;uuTemplates that can be used to expedite the preparation of networks for project activities. Related activity attributes information in templates can also contain additional descriptive information useful in sequencing activities; anduuLessons learned repository containing historical information that can help optimize the sequencing process.6.3.2 SEQUENCE ACTIVITIES: TOOLS AND TECHNIQUES6.3.2.1 PRECEDENCE DIAGRAMMING METHODThe precedence diagramming method (PDM) is a technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed.PDM includes four types of dependencies or logical relationships. A predecessor activity is an activity that logically comes before a dependent activity in a schedule. A successor activity is a dependent activity that logically comes after another activity in a schedule. These relationships are deﬁned below and are illustrated in Figure 6-9:

190 Part 1 – GuideuuFinish-to-start (FS). A logical relationship in which a successor activity cannot start until a predecessor activity has ﬁnished. For example, installing the operating system on a PC (successor) cannot start until the PC hardware is assembled (predecessor).uuFinish-to-finish (FF). A logical relationship in which a successor activity cannot ﬁnish until a predecessor activity has ﬁnished. For example, writing a document (predecessor) is required to ﬁnish before editing the document (successor) can ﬁnish.uuStart-to-start (SS). A logical relationship in which a successor activity cannot start until a predecessor activity has started. For example, level concrete (successor) cannot begin until pour foundation (predecessor) begins.uuStart-to-finish (SF). A logical relationship in which a successor activity cannot ﬁnish until a predecessor activity has started. For example, a new accounts payable system (successor) has to start before the old accounts payable system can be shut down (predecessor).In PDM, FS is the most commonly used type of precedence relationship. The SF relationship is very rarely used, but is included to present a complete list of the PDM relationship types.Two activities can have two logical relationships at the same time (for example, SS and FF). Multiple relationships between the same activities are not recommended, so a decision has to be made to select the relationship with the highest impact. Closed loops are also not recommended in logical relationships.Figure 6-9. Precedence Diagramming Method (PDM) Relationship TypesActivity AActivity BActivity AActivity AActivity BActivity BActivity AActivity BFinish to Start (FS)Start to Finish (SF)Start to Start (SS)Finish to Finish (FF)

1916.3.2.2 DEPENDENCY DETERMINATION AND INTEGRATIONDependencies may be characterized by the following attributes: mandatory or discretionary, internal or external (as described below). Dependency has four attributes, but two can be applicable at the same time in the following ways: mandatory external dependencies, mandatory internal dependencies, discretionary external dependencies, or discretionary internal dependencies.uuMandatory dependencies. Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work. Mandatory dependencies often involve physical limitations, such as on a construction project, where it is impossible to erect the superstructure until after the foundation has been built, or on an electronics project, where a prototype has to be built before it can be tested. Mandatory dependencies are sometimes referred to as hard logic or hard dependencies. Technical dependencies may not be mandatory. The project team determines which dependencies are mandatory during the process of sequencing the activities. Mandatory dependencies should not be confused with assigning schedule constraints in the scheduling tool.uuDiscretionary dependencies. Discretionary dependencies are sometimes referred to as preferred logic, preferential logic, or soft logic. Discretionary dependencies are established based on knowledge of best practices within a particular application area or some unusual aspect of the project where a speciﬁc sequence is desired, even though there may be other acceptable sequences. For example, generally accepted best practices recommend that during construction, the electrical work should start after ﬁnishing the plumbing work. This order is not mandatory and both activities may occur at the same time (in parallel), but performing the activities in sequential order reduces the overall project risk. Discretionary dependencies should be fully documented since they can create arbitrary total ﬂoat values and can limit later scheduling options. When fast tracking techniques are employed, these discretionary dependencies should be reviewed and considered for modiﬁcation or removal. The project team determines which dependencies are discretionary during the process of sequencing the activities.

192 Part 1 – GuideuuExternal dependencies. External dependencies involve a relationship between project activities and non-project activities. These dependencies are usually outside of the project team’s control. For example, the testing activity in a software project may be dependent on the delivery of hardware from an external source, or governmental environmental hearings may need to be held before site preparation can begin on a construction project. The project management team determines which dependencies are external during the process of sequencing the activities.uuInternal dependencies. Internal dependencies involve a precedence relationship between project activities and are generally inside the project team’s control. For example, if the team cannot test a machine until they assemble it, there is an internal mandatory dependency. The project management team determines which dependencies are internal during the process of sequencing the activities.6.3.2.3 LEADS AND LAGSA lead is the amount of time a successor activity can be advanced with respect to a predecessor activity. For example, on a project to construct a new ofﬁce building, the landscaping could be scheduled to start 2 weeks prior to the scheduled punch list completion. This would be shown as a ﬁnish-to-start with a 2-week lead as shown in Figure 6-10. Lead is often represented as a negative value for lag in scheduling software.Figure 6-10. Examples of Lead and LagCompletePunch ListWriteDraftLandscapeBuilding LotEditDraftSS – 15 Days (Lag)FS – 2 Weeks (Lead)

��193A lag is the amount of time a successor activity will be delayed with respect to a predecessor activity. For example, a technical writing team may begin editing the draft of a large document 15 days after they begin writing it. This can be shown as a start-to-start relationship with a 15-day lag as shown in Figure 6-10. Lag can also be represented in project schedule network diagrams as shown in Figure 6-11 in the relationship between activities H and I (as indicated by the nomenclature SS+10 (start-to-start plus 10 days lag) even though the offset is not shown relative to a timescale).The project management team determines the dependencies that may require a lead or a lag to accurately deﬁne the logical relationship. The use of leads and lags should not replace schedule logic. Also, duration estimates do not include any leads or lags. Activities and their related assumptions should be documented.Figure 6-11. Project Schedule Network Diagram6.3.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems includes scheduling software that has the capability to help plan, organize, and adjust the sequence of the activities; insert the logical relationships, lead and lag values; and differentiate the different types of dependencies.ABCDEBeginHFGEndIJKLFFFS + 15SS + 10SS

194 Part 1 – Guide6.3.3 SEQUENCE ACTIVITIES: OUTPUTS6.3.3.1 PROJECT SCHEDULE NETWORK DIAGRAMSA project schedule network diagram is a graphical representation of the logical relationships, also referred to as dependencies, among the project schedule activities. Figure 6-11 illustrates a project schedule network diagram. A project schedule network diagram is produced manually or by using project management software. It can include full project details, or have one or more summary activities. A summary narrative can accompany the diagram and describe the basic approach used to sequence the activities. Any unusual activity sequences within the network should be fully described within the narrative.Activities that have multiple predecessor activities indicate a path convergence. Activities that have multiple successor activities indicate a path divergence. Activities with divergence and convergence are at greater risk as they are affected by multiple activities or can affect multiple activities. Activity I is called a path convergence, as it has more than one predecessor, while activity K is called a path divergence, as it has more than one successor.6.3.3.2 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity attributes may describe a necessary sequence of events or deﬁned predecessor or successor relationships, as well as deﬁned lead and lag and logical relationships between the activities.uuActivity list. Described in Section 6.2.3.1. The activity list may be impacted by the change in relationships among the project activities during the sequencing activities.uuAssumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may need to be updated based on the sequencing, relationship determination, and leads and lags, and may give rise to individual project risks that may impact the project schedule.uuMilestone list. Described in Section 6.2.3.3. The scheduled dates for speciﬁc milestones may be impacted by changes in relationships among the project activities during the sequencing activities.

��1956.4 ESTIMATE ACTIVITY DURATIONSEstimate Activity Durations is the process of estimating the number of work periods needed to complete individual activities with estimated resources. The key beneﬁt of this process is that it provides the amount of time each activity will take to complete. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 6-12. Figure 6-13 depicts the data ﬂow diagram of the process.Figure 6-12. Estimate Activity Durations: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsEstimate Activity Durations.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Three-point estimating.5 Bottom-up estimating.6 Data analysis• Alternatives analysis• Reserve analysis.7 Decision making.8 Meetings.1 Project management plan• Schedule management plan• Scope baseline.2 Project documents• Activity attributes• Activity list• Assumption log• Lessons learned register• Milestone list• Project team assignments• Resource breakdown structure• Resource calendars• Resource requirements• Risk register.3 Enterprise environmental factors.4 Organizational process assets.1 Duration estimates.2 Basis of estimates.3 Project documents updates• Activity attributes• Assumption log• Lessons learned register

196 Part 1 – Guide• Project charter6.4Estimate ActivityDurationsEnterprise/Organization• Duration estimates• Basis of estimatesProject management plan• Schedule management plan• Scope baselineProject documents• Activity attributes• Activity list• Assumption log• Lessons learned register• Milestone list• Project team assignments• Resource breakdown structure• Resource calendars• Resource requirements• Risk register• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectManagementPlanProjectDocumentsProject document updates• Activity attributes• Assumption log• Lessons learned registerFigure 6-13. Estimate Activity Durations: Data Flow DiagramEstimating activity durations uses information from the scope of work, required resource types or skill levels, estimated resource quantities, and resource calendars. Other factors that may inﬂuence the duration estimates include constraints imposed on the duration, effort involved, or type of resources (e.g., ﬁxed duration, ﬁxed effort or work, ﬁxed number of resources), as well as the schedule network analysis technique used. The inputs for the estimates of duration originate from the person or group on the project team who is most familiar with the nature of the work in the speciﬁc activity. The duration estimate is progressively elaborated, and the process considers the quality and availability of the input data. For example, as more detailed and precise data are available about the project engineering and design work, the accuracy and quality of the duration estimates improve.

197The Estimate Activity Durations process requires an estimation of the amount of work effort required to complete the activity and the amount of available resources estimated to complete the activity. These estimates are used to approximate the number of work periods (activity duration) needed to complete the activity using the appropriate project and resource calendars. In many cases, the number of resources that are expected to be available to accomplish an activity, along with the skill proﬁciency of those resources, may determine the activity’s duration. A change to a driving resource allocated to the activity will usually have an effect on the duration, but this is not a simple “straight-line” or linear relationship. Sometimes, the intrinsic nature of the work (i.e., constraints imposed on the duration, effort involved, or number of resources) will take a predetermined amount of time to complete regardless of the resource allocation (e.g., a 24-hour stress test). Other factors for consideration when estimating duration include:uuLaw of diminishing returns. When one factor (e.g., resource) used to determine the effort required to produce a unit of work is increased while all other factors remain ﬁxed, a point will eventually be reached at which additions of that one factor start to yield progressively smaller or diminishing increases in output.uuNumber of resources. Increasing the number of resources to twice the original number of the resources does not always reduce the time by half, as it may increase extra duration due to risk, and at some point adding too many resources to the activity may increase duration due to knowledge transfer, learning curve, additional coordination, and other factors involved.uuAdvances in technology. This may also play an important role in determining duration estimates. For example, an increase in the output of a manufacturing plant may be achieved by procuring the latest advances in technology, which may impact duration and resource needs.uuMotivation of staff. The project manager also needs to be aware of Student Syndrome—or procrastination—when people start to apply themselves only at the last possible moment before the deadline, and Parkinson’s Law where work expands to ﬁll the time available for its completion.All data and assumptions that support duration estimating are documented for each activity duration estimate.

198 Part 1 – Guide6.4.1 ESTIMATE ACTIVITY DURATIONS: INPUTS6.4.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan deﬁnes the method used, as well as the level of accuracy and other criteria required to estimate activity durations.uuScope baseline. Described in Section 5.4.3.1. The scope baseline includes the WBS dictionary, which contains technical details that can inﬂuence the effort and duration estimates.6.4.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity attributes may describe deﬁned predecessor or successor relationships, as well as deﬁned lead and lag and logical relationships between the activities that may impact duration estimates.uuActivity list. Described in Section 6.2.3.1. The activity list contains all schedule activities required on the project, which are to be estimated. Dependencies and other constraints for these activities can inﬂuence the duration estimates.uuAssumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may give rise to individual project risks that may impact the project schedule.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to effort and duration estimating can be applied to later phases in the project to improve the accuracy and precision of effort and duration estimates.uuMilestone list. Described in Section 6.2.3.3. The milestone list may have scheduled dates for speciﬁc milestones that may impact the duration estimates.uuProject team assignments. Described in Section 9.3.3.1. The project is staffed when the appropriate people have been assigned to the team.uuResource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure provides a hierarchical structure of the identiﬁed resources by resource category and resource type.

199uuResource calendars. Described in Section 9.2.1.2. The resource calendars inﬂuence the duration of schedule activities due to the availability of speciﬁc resources, type of resources, and resources with speciﬁc attributes. Resource calendars specify when and how long identiﬁed project resources will be available during the project.uuResource requirements. Described in Section 9.2.3.1. The estimated activity resource requirements will have an effect on the duration of the activity, since the level to which the resources assigned to the activity meet the requirements will signiﬁcantly inﬂuence the duration of most activities. For example, if additional or lower-skilled resources are assigned to an activity, there may be reduced efﬁciency or productivity due to increased communication, training, and coordination needs leading to a longer duration estimate.uuRisk register. Described in Section 11.2.3.1. Individual project risks may impact resource selection and availability. Updates to the risk register are included with project documents updates, described in Section 11.5.3.2, from Plan Risk Responses.6.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Estimate Activity Durations process include but are not limited to:uuDuration estimating databases and other reference data,uuProductivity metrics,uuPublished commercial information, anduuLocation of team members.6.4.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Estimate Activity Durations process include but are not limited to:uuHistorical duration information,uuProject calendars,uuEstimating policies,uuScheduling methodology, anduuLessons learned repository.

200 Part 1 – Guide6.4.2 ESTIMATE ACTIVITY DURATIONS: TOOLS AND TECHNIQUES6.4.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuSchedule development, management, and control;uuExpertise in estimating; anduuDiscipline or application knowledge.6.4.2.2 ANALOGOUS ESTIMATINGAnalogous estimating is a technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. Analogous estimating uses parameters from a previous, similar project, such as duration, budget, size, weight, and complexity, as the basis for estimating the same parameter or measure for a future project. When estimating durations, this technique relies on the actual duration of previous, similar projects as the basis for estimating the duration of the current project. It is a gross value estimating approach, sometimes adjusted for known differences in project complexity. Analogous duration estimating is frequently used to estimate project duration when there is a limited amount of detailed information about the project.Analogous estimating is generally less costly and less time-consuming than other techniques, but it is also less accurate. Analogous duration estimates can be applied to a total project or to segments of a project and may be used in conjunction with other estimating methods. Analogous estimating is most reliable when the previous activities are similar in fact and not just in appearance, and the project team members preparing the estimates have the needed expertise.6.4.2.3 PARAMETRIC ESTIMATINGParametric estimating is an estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. Parametric estimating uses a statistical relationship between historical data and other variables (e.g., square footage in construction) to calculate an estimate for activity parameters, such as cost, budget, and duration.

201Durations can be quantitatively determined by multiplying the quantity of work to be performed by the number of labor hours per unit of work. For example, duration on a design project is estimated by the number of drawings multiplied by the number of labor hours per drawing, or on a cable installation, the meters of cable multiplied by the number of labor hours per meter. If the assigned resource is capable of installing 25 meters of cable per hour, the duration required to install 1,000 meters is 40 hours (1,000 meters divided by 25 meters per hour).This technique can produce higher levels of accuracy depending on the sophistication and underlying data built into the model. Parametric schedule estimates can be applied to a total project or to segments of a project, in conjunction with other estimating methods.6.4.2.4 THREE-POINT ESTIMATINGThe accuracy of single-point duration estimates may be improved by considering estimation uncertainty and risk. Using three-point estimates helps deﬁne an approximate range for an activity’s duration:uuMost likely (tM). This estimate is based on the duration of the activity, given the resources likely to be assigned, their productivity, realistic expectations of availability for the activity, dependencies on other participants, and interruptions.uuOptimistic (tO). The activity duration based on analysis of the best-case scenario for the activity.uuPessimistic (tP). The duration based on analysis of the worst-case scenario for the activity.Depending on the assumed distribution of values within the range of the three estimates, the expected duration, tE, can be calculated. One commonly used formula is triangular distribution:tE = (tO + tM + tP) / 3.Triangular distribution is used when there is insufﬁcient historical data or when using judgmental data. Duration estimates based on three points with an assumed distribution provide an expected duration and clarify the range of uncertainty around the expected duration.

202 Part 1 – Guide6.4.2.5 BOTTOM-UP ESTIMATINGBottom-up estimating is a method of estimating project duration or cost by aggregating the estimates of the lower-level components of the WBS. When an activity’s duration cannot be estimated with a reasonable degree of conﬁdence, the work within the activity is decomposed into more detail. The detail durations are estimated. These estimates are then aggregated into a total quantity for each of the activity’s durations. Activities may or may not have dependencies between them that can affect the application and use of resources. If there are dependencies, this pattern of resource usage is reﬂected and documented in the estimated requirements of the activity.6.4.2.6 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuAlternatives analysis. Alternatives analysis is used to compare various levels of resource capability or skills; scheduling compression techniques (described in Section 6.5.2.6); different tools (manual versus automated); and make, rent, or buy decisions regarding the resources. This allows the team to weigh resource, cost, and duration variables to determine an optimal approach for accomplishing project work.uuReserve analysis. Reserve analysis is used to determine the amount of contingency and management reserve needed for the project. Duration estimates may include contingency reserves, sometimes referred to as schedule reserves, to account for schedule uncertainty. Contingency reserves are the estimated duration within the schedule baseline, which is allocated for identiﬁed risks that are accepted. Contingency reserves are associated with the known-unknowns, which may be estimated to account for this unknown amount of rework. The contingency reserve may be a percentage of the estimated activity duration or a ﬁxed number of work periods. Contingency reserves may be separated from the individual activities and aggregated. As more precise information about the project becomes available, the contingency reserve may be used, reduced, or eliminated. Contingency should be clearly identiﬁed in the schedule documentation.Estimates may also be produced for the amount of management reserve of schedule for the project. Management reserves are a speciﬁed amount of the project budget withheld for management control purposes and are reserved for unforeseen work that is within scope of the project. Management reserves are intended to address the unknown-unknowns that can affect a project. Management reserve is not included in the schedule baseline, but it is part of the overall project duration requirements. Depending on contract terms, use of management reserves may require a change to the schedule baseline.

2036.4.2.7 DECISION MAKINGDescribed in Section 5.2.2.4. Decision-making techniques that can be used in this process include but are not limited to voting. One variation of the voting method that is often used in agile-based projects is called the ﬁst of ﬁve (also called ﬁst to ﬁve). In this technique, the project manager asks the team to show their level of support for a decision by holding up a closed ﬁst (indicating no support) up to ﬁve ﬁngers (indicating full support). If a team member holds up fewer than three ﬁngers, the team member is given the opportunity to discuss any objections with the team. The project manager continues the ﬁst-of-ﬁve process until the team achieves consensus (everyone holds up three or more ﬁngers) or agrees to move on to the next decision.6.4.2.8 MEETINGSThe project team may hold meetings to estimate activity durations. When using an agile approach, it is necessary to conduct sprint or iteration planning meetings to discuss prioritized product backlog items (user stories) and decide which of these items the team will commit to work on in the upcoming iteration. The team breaks down user stories to low-level tasks, with estimates in hours, and then validates that the estimates are achievable based on team capacity over the duration (iteration). This meeting is usually held on the ﬁrst day of the iteration and is attended by the product owner, the Scrum team, and the project manager. The outcome of the meeting includes an iteration backlog, as well as assumptions, concerns, risks, dependencies, decisions, and actions.6.4.3 ESTIMATE ACTIVITY DURATIONS: OUTPUTS6.4.3.1 DURATION ESTIMATESDuration estimates are quantitative assessments of the likely number of time periods that are required to complete an activity, a phase, or a project. Duration estimates do not include any lags as described in Section 6.3.2.3. Duration estimates may include some indication of the range of possible results. For example:uuA range of 2 weeks ± 2 days, which indicates that the activity will take at least 8 days and not more than 12 (assuming a 5-day work week); oruuA 15% probability of exceeding 3 weeks, which indicates a high probability—85%—that the activity will take 3 weeks or less.

204 Part 1 – Guide6.4.3.2 BASIS OF ESTIMATESThe amount and type of additional details supporting the duration estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the duration estimate was derived.Supporting detail for duration estimates may include:uuDocumentation of the basis of the estimate (i.e., how it was developed),uuDocumentation of all assumptions made,uuDocumentation of any known constraints,uuIndication of the range of possible estimates (e.g., ±10%) to indicate that the duration is estimated between a range of values),uuIndication of the conﬁdence level of the ﬁnal estimate, anduuDocumentation of individual project risks inﬂuencing this estimate.6.4.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity duration estimates produced during this process are documented as part of the activity attributes.uuAssumption log. Described in Section 4.1.3.2. This includes assumptions made in developing the duration estimate, such as resource skill levels and availability, as well as a basis of estimates for durations. Additionally, constraints arising out of the scheduling methodology and scheduling tool are also documented.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were efﬁcient and effective in developing effort and duration estimates.

��2056.5 DEVELOP SCHEDULEDevelop Schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create a schedule model for project execution and monitoring and controlling. The key beneﬁt of this process is that it generates a schedule model with planned dates for completing project activities. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 6-14. Figure 6-15 depicts the data ﬂow diagram of the process.Figure 6-14. Develop Schedule: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDevelop Schedule.1 Schedule network analysis.2 Critical path method.3 Resource optimization.4 Data analysis• What-if scenario analysis• Simulation.5 Leads and lags.6 Schedule compression.7 Project management information system.8 Agile release planning.1 Project management plan• Schedule management plan• Scope baseline.2 Project documents• Activity attributes• Activity list• Assumption log• Basis of estimates• Duration estimates• Lessons learned register• Milestone list• Project schedule network diagrams• Project team assignments• Resource calendars• Resource requirements• Risk register.3 Agreements.4 Enterprise environmental factors.5 Organizational process assets.1 Schedule baseline.2 Project schedule.3 Schedule data.4 Project calendars.5 Change requests.6 Project management plan updates• Schedule management plan• Cost baseline.7 Project documents updates• Activity attributes• Assumption log• Duration estimates• Lessons learned register• Resource requirements• Risk register

206 Part 1 – GuideFigure 6-15. Develop Schedule: Data Flow Diagram• Project charter12.2ConductProcurements• Agreements• Change requestsProject management plan• Schedule management plan • Scope baselineProject documents• Activity attributes• Activity list• Assumption log• Basis of estimates• Duration estimates• Lessons learned register• Milestone list• Project schedule network diagrams• Project team assignments• Resource calendars• Resource requirements• Risk registerProjectManagementPlanProjectDocumentsProjectDocuments4.6PerformIntegratedChange Control6.5DevelopScheduleEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Schedule baselineProject management plan updates• Schedule management plan• Cost baseline• Project schedule• Schedule data• Project calendarsProject documents updates• Activity attributes• Assumption log• Duration estimates• Lessons learned register• Resource requirements• Risk registerProjectManagementPlan

��207Developing an acceptable project schedule is an iterative process. The schedule model is used to determine the planned start and ﬁnish dates for project activities and milestones based on the best available information. Schedule development can require the review and revision of duration estimates, resource estimates, and schedule reserves to establish an approved project schedule that can serve as a baseline to track progress. Key steps include deﬁning the project milestones, identifying and sequencing activities, and estimating durations. Once the activity start and ﬁnish dates have been determined, it is common to have the project staff assigned to the activities review their assigned activities. The staff conﬁrms that the start and ﬁnish dates present no conﬂict with resource calendars or assigned activities on other projects or tasks and thus are still valid. The schedule is then analyzed to determine conﬂicts with logical relationships and if resource leveling is required before the schedule is approved and baselined. Revising and maintaining the project schedule model to sustain a realistic schedule continues throughout the duration of the project, as described in Section 6.7.For more speciﬁc information regarding scheduling, refer to the Practice Standard for Scheduling.6.5.1 DEVELOP SCHEDULE: INPUTS6.5.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan identiﬁes the scheduling method and tool used to create the schedule and how the schedule is to be calculated.uuScope baseline. Described in Section 5.4.3.1. The scope statement, WBS, and WBS dictionary have details about the project deliverables that are considered when building the schedule model.6.5.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. The activity attributes provide the details used to build the schedule model.uuActivity list. Described in Section 6.2.3.1. The activity list identiﬁes the activities that will be included in the schedule model.uuAssumption log. Described in Section 4.1.3.2. Assumptions and constraints recorded in the assumption log may give rise to individual project risks that may impact the project schedule.

208 Part 1 – GuideuuBasis of estimates. Described in Section 6.4.3.2. The amount and type of additional details supporting the duration estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the duration estimate was derived.uuDuration estimates. Described in Section 6.4.3.1. The duration estimates contain the quantitative assessments of the likely number of work periods that will be required to complete an activity. This will be used to calculate the schedule.uuLessons learned. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to developing the schedule model can be applied to later phases in the project to improve the validity of the schedule model.uuMilestone list. Described in Section 6.2.3.3. The milestone list has scheduled dates for speciﬁc milestones.uuProject schedule network diagrams. Described in Section 6.3.3.1. The project schedule network diagrams contain the logical relationships of predecessors and successors that will be used to calculate the schedule.uuProject team assignments. Described in Section 9.3.3.1. The project team assignments specify which resources are assigned to each activity.uuResource calendars. Described in Sections 9.2.1.2. The resource calendars contain information on the availability of resources during the project.uuResource requirements. Described in Section 9.2.3.1. The activity resource requirements identify the types and quantities of resources required for each activity used to create the schedule model.uuRisk register. Described in Section 11.2.3.1. The risk register provides the details of all identiﬁed risks, and their characteristics, that affect the schedule model. Risk information relevant to the schedule is reﬂected in schedule reserves using the expected or mean risk impact.6.5.1.3 AGREEMENTSDescribed in Section 12.2.3.2. Vendors may have an input to the project schedule as they develop the details of how they will perform the project work to meet contractual commitments.

2096.5.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Develop Schedule process include but are not limited to:uuGovernment or industry standards, anduuCommunication channels.6.5.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Develop Schedule process include but are not limited to:uuScheduling methodology containing the policies governing schedule model development and maintenance, anduuProject calendar(s).6.5.2 DEVELOP SCHEDULE: TOOLS AND TECHNIQUES6.5.2.1 SCHEDULE NETWORK ANALYSISSchedule network analysis is the overarching technique used to generate the project schedule model. It employs several other techniques such as critical path method (described in Section 6.5.2.2), resource optimization techniques (described in Section 6.5.2.3), and modeling techniques (described in Section 6.5.2.4). Additional analysis includes but is not limited to:uuAssessing the need to aggregate schedule reserves to reduce the probability of a schedule slip when multiple paths converge at a single point in time or when multiple paths diverge from a single point in time, to reduce the probability of a schedule slip.uuReviewing the network to see if the critical path has high-risk activities or long lead items that would necessitate use of schedule reserves or the implementation of risk responses to reduce the risk on the critical path.Schedule network analysis is an iterative process that is employed until a viable schedule model is developed.

��210 Part 1 – Guide6.5.2.2 CRITICAL PATH METHODThe critical path method is used to estimate the minimum project duration and determine the amount of schedule ﬂexibility on the logical network paths within the schedule model. This schedule network analysis technique calculates the early start, early ﬁnish, late start, and late ﬁnish dates for all activities without regard for any resource limitations by performing a forward and backward pass analysis through the schedule network, as shown in Figure 6-16. In this example, the longest path includes activities A, C, and D, and therefore the sequence of A-C-D is the critical path. The critical path is the sequence of activities that represents the longest path through a project, which determines the shortest possible project duration. The longest path has the least total ﬂoat—usually zero. The resulting early and late start and ﬁnish dates are not necessarily the project schedule; rather they indicate the time periods within which the activity could be executed, using the parameters entered in the schedule model for activity durations, logical relationships, leads, lags, and other known constraints. The critical path method is used to calculate the critical path(s) and the amount of total and free ﬂoat or schedule ﬂexibility on the logical network paths within the schedule model.On any network path, the total ﬂoat or schedule ﬂexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project ﬁnish date or violating a schedule constraint. A critical path is normally characterized by zero total ﬂoat on the critical path. As implemented with the precedence diagramming method sequencing, critical paths may have positive, zero, or negative total ﬂoat depending on the constraints applied. Positive total ﬂoat is caused when the backward pass is calculated from a schedule constraint that is later than the early ﬁnish date that has been calculated during forward pass calculation. Negative total ﬂoat is caused when a constraint on the late dates is violated by duration and logic. Negative ﬂoat analysis is a technique that helps to ﬁnd possible accelerated ways of bringing a delayed schedule back on track. Schedule networks may have multiple near-critical paths. Many software packages allow the user to deﬁne the parameters used to determine the critical path(s). Adjustments to activity durations (when more resources or less scope can be arranged), logical relationships (when the relationships were discretionary to begin with), leads and lags, or other schedule constraints may be necessary to produce network paths with a zero or positive total ﬂoat. Once the total ﬂoat and the free ﬂoat have been calculated, the free ﬂoat is the amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint. For example the free ﬂoat for Activity B, in Figure 6-16, is 5 days.

��211Critical Path LinkNon-Critical Path LinkActivityNodeStartFinishA155105C610156015B651011515D16153016030Activity NameEarlyStartDurationEarlyFinishLateStartTotalFloatLateFinishPath A–B–D = 25Path A–C–D = 30(Critical Path)KEYNOTE: This example uses the accepted convention of the project starting on day 1 for calculating start and finish dates. There are other accepted conventions that may be used.Figure 6-16. Example of Critical Path Method6.5.2.3 RESOURCE OPTIMIZATIONResource optimization is used to adjust the start and ﬁnish dates of activities to adjust planned resource use to be equal to or less than resource availability. Examples of resource optimization techniques that can be used to adjust the schedule model due to demand and supply of resources include but are not limited to:uuResource leveling. A technique in which start and ﬁnish dates are adjusted based on resource constraints with the goal of balancing the demand for resources with the available supply. Resource leveling can be used when shared or critically required resources are available only at certain times or in limited quantities, or are over-allocated, such as when a resource has been assigned to two or more activities during the same time period (as shown in Figure 6-17), or there is a need to keep resource usage at a constant level. Resource leveling can often cause the original critical path to change. Available ﬂoat is used for leveling resources. Consequently, the critical path through the project schedule may change.uuResource smoothing. A technique that adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predeﬁned resource limits. In resource smoothing, as opposed to resource leveling, the project’s critical path is not changed and the completion date may not be delayed. In other words, activities may only be delayed within their free and total ﬂoat. Resource smoothing may not be able to optimize all resources.

212 Part 1 – GuideFigure 6-17. Resource LevelingStartActivity ATom: 8 hrsSue: 8 hrsActivity BSue: 8 hrsActivity CTom: 8 hrsTom: 8 hrsSue: 16 hrsTom: 8 hrsDay 2Day 3Day 1StartActivity ATom: 8 hrsSue: 8 hrsActivity BSue: 8 hrsActivity CTom: 8 hrsTom: 8 hrsSue: 8 hrsSue: 8 hrsTom: 8 hrsDay 2Day 3Day 1Activities Before Resource LevelingActivities After Resource Leveling

2136.5.2.4 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuWhat-if scenario analysis. What-if scenario analysis is the process of evaluating scenarios in order to predict their effect, positive or negative, on project objectives. This is an analysis of the question, “What if the situation represented by scenario X happens?” A schedule network analysis is performed using the schedule to compute the different scenarios, such as delaying a major component delivery, extending speciﬁc engineering durations, or introducing external factors, such as a strike or a change in the permit process. The outcome of the what-if scenario analysis can be used to assess the feasibility of the project schedule under different conditions, and in preparing schedule reserves and response plans to address the impact of unexpected situations.uuSimulation. Simulation models the combined effects of individual project risks and other sources of uncertainty to evaluate their potential impact on achieving project objectives. The most common simulation technique is Monte Carlo analysis (see Section 11.4.2.5), in which risks and other sources of uncertainty are used to calculate possible schedule outcomes for the total project. Simulation involves calculating multiple work package durations with different sets of activity assumptions, constraints, risks, issues, or scenarios using probability distributions and other representations of uncertainty (see Section 11.4.2.4). Figure 6-18 shows a probability distribution for a project with the probability of achieving a certain target date (i.e., project ﬁnish date). In this example, there is a 10% probability that the project will ﬁnish on or before the target date of May 13, while there is a 90% probability of completing the project by May 28.

214 Part 1 – GuideProject Finish Date0.080.070.060.050.040.030.020.010.00100.0%87.5%75.0%62.5%50.0%37.5%25.0%12.5%0.0%10.0%05/28/17 19:4505/13/2017 20:3080.0%10.0%05/05/2017 05/10/201705/15/201705/20/201705/25/201705/30/201706/04/201706/09/201706/14/2017Figure 6-18. Example Probability Distribution of a Target MilestoneFor more information on how Monte Carlo simulation is used for schedule models, see the Practice Standard for Scheduling.6.5.2.5 LEADS AND LAGSDescribed in Section 6.3.2.3. Leads and lags are reﬁnements applied during network analysis to develop a viable schedule by adjusting the start time of the successor activities. Leads are used in limited circumstances to advance a successor activity with respect to the predecessor activity, and lags are used in limited circumstances where processes require a set period of time to elapse between the predecessors and successors without work or resource impact.

2156.5.2.6 SCHEDULE COMPRESSIONSchedule compression techniques are used to shorten or accelerate the schedule duration without reducing the project scope in order to meet schedule constraints, imposed dates, or other schedule objectives. A helpful technique is the negative ﬂoat analysis. The critical path is the one with the least ﬂoat. Due to violating a constraint or imposed date, the total ﬂoat can become negative. Schedule compression techniques are compared in Figure 6-19 and include:uuCrashing. A technique used to shorten the schedule duration for the least incremental cost by adding resources. Examples of crashing include approving overtime, bringing in additional resources, or paying to expedite delivery to activities on the critical path. Crashing works only for activities on the critical path where additional resources will shorten the activity’s duration. Crashing does not always produce a viable alternative and may result in increased risk and/or cost.uuFast tracking. A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. An example is constructing the foundation for a building before completing all of the architectural drawings. Fast tracking may result in rework and increased risk. Fast tracking only works when activities can be overlapped to shorten the project duration on the critical path. Using leads in case of schedule acceleration usually increases coordination efforts between the activities concerned and increases quality risk. Fast tracking may also increase project costs.Figure 6-19. Schedule Compression ComparisonNormalCrashingFastTracking123451234545678789101112134567889106789101112131415High RiskHigh Cost

216 Part 1 – Guide6.5.2.7 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems include scheduling software that expedites the process of building a schedule model by generating start and ﬁnish dates based on the inputs of activities, network diagrams, resources, and activity durations.6.5.2.8 AGILE RELEASE PLANNINGAgile release planning provides a high-level summary timeline of the release schedule (typically 3 to 6 months) based on the product roadmap and the product vision for the product’s evolution. Agile release planning also determines the number of iterations or sprints in the release, and allows the product owner and team to decide how much needs to be developed and how long it will take to have a releasable product based on business goals, dependencies, and impediments.Since features represent value to the customer, the timeline provides a more easily understood project schedule as it deﬁnes which feature will be available at the end of each iteration, which is exactly the depth of information the customer is looking for.Figure 6-20 shows the relationship among product vision, product roadmap, release planning, and iteration planning.Figure 6-20. Relationship Between Product Vision, Release Planning, and Iteration PlanningRelease 3Release 2Release 1Release PlanIteration PlanIteration 0Iteration 1Iteration 2Iteration 3Iteration nFeature D(User Story 5)Feature C(User Story 4)Feature B(User Story 3)Feature A(User Story 2)Feature A(User Story 1)5 Hours8 Hours4 Hours12 HoursTask ATask BTask CTask DProduct vision drivesproduct roadmapProduct roadmapdrives release plansRelease planestablishes the iterationsIteration plansschedules featuredevelopmentTasks (estimated inhours) created todeliver user storiesPrioritized featuresdelivered by userstories (estimatedin story points)

��2176.5.3 DEVELOP SCHEDULE: OUTPUTS6.5.3.1 SCHEDULE BASELINEA schedule baseline is the approved version of a schedule model that can be changed only through formal change control procedures and is used as a basis for comparison to actual results. It is accepted and approved by the appropriate stakeholders as the schedule baseline with baseline start dates and baseline ﬁnish dates. During monitoring and controlling, the approved baseline dates are compared to the actual start and ﬁnish dates to determine if variances have occurred. The schedule baseline is a component of the project management plan.6.5.3.2 PROJECT SCHEDULEThe project schedule is an output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources. At a minimum, the project schedule includes a planned start date and planned ﬁnish date for each activity. If resource planning is done at an early stage, the project schedule remains preliminary until resource assignments have been conﬁrmed and scheduled start and ﬁnish dates are established. This process usually occurs no later than the completion of the project management plan (Section 4.2.3.1). A target project schedule model may also be developed with a deﬁned target start and target ﬁnish for each activity. The project schedule may be presented in summary form, sometimes referred to as the master schedule or milestone schedule, or presented in detail. Although a project schedule model can be presented in tabular form, it is more often presented graphically, using one or more of the following formats:uuBar charts. Also known as Gantt charts, bar charts represent schedule information where activities are listed on the vertical axis, dates are shown on the horizontal axis, and activity durations are shown as horizontal bars placed according to start and ﬁnish dates. Bar charts are relatively easy to read and are commonly used. Depending on the audience, ﬂoat can be depicted or not. For control and management communications, the broader, more comprehensive summary activity is used between milestones or across multiple interdependent work packages and is displayed in bar chart reports. An example is the summary schedule portion of Figure 6-21 that is presented in a WBS-structured format.

218 Part 1 – GuideuuMilestone charts. These charts are similar to bar charts, but only identify the scheduled start or completion of major deliverables and key external interfaces. An example is the milestone schedule portion of Figure 6-21.uuProject schedule network diagrams. These diagrams are commonly presented in the activity-on-node diagram format showing activities and relationships without a time scale, sometimes referred to as a pure logic diagram, as shown in Figure 6-11, or presented in a time-scaled schedule network diagram format that is sometimes called a logic bar chart, as shown for the detailed schedule in Figure 6-21. These diagrams, with activity date information, usually show both the project network logic and the project’s critical path schedule activities. This example also shows how each work package is planned as a series of related activities. Another presentation of the project schedule network diagram is a time-scaled logic diagram. These diagrams include a time scale and bars that represent the duration of activities with the logical relationships. They are optimized to show the relationships between activities where any number of activities may appear on the same line of the diagram in sequence. Figure 6-21 shows schedule presentations for a sample project being executed, with the work in progress reported through as-of date or status date. For a simple project schedule model, Figure 6-21 reﬂects schedule presentations in the forms of (1) a milestone schedule as a milestone chart, (2) a summary schedule as a bar chart, and (3) a detailed schedule as a project schedule linked bar chart diagram. Figure 6-21 also visually shows the relationships among the different levels of detail of the project schedule.

��219Project Schedule Time FramePeriod 5Period 1Period 2Period 3ActivityIdentifier1.1.MBBegin New Product ZPeriod 4CalendarunitsCalendarunitsCalendarunitsComplete Component 1Complete Component 2 Finish New Product Z0000Activity DescriptionProject Schedule Time FramePeriod 5Period 1Period 2Period 3ActivityIdentifier1.1.MB0120672033140531428110531432070Period 4Activity Description1.1.1.M11.1.2.M11.1.3.MFComplete Integration of Components 1 & 201.1.3.M1Project Schedule Time FramePeriod 5Period 1Period 2Period 3ActivityIdentifier1.1Develop and Deliver New Product ZPeriod 4Work Package 1: Component 1 Work Package 2: Component 2 Work Package 3: Integrated Components 1 and 2120675353Activity Description1.1.11.1.21.1.3Milestone ScheduleData DateData DateDetailed Schedule1.1.1.T1.11.1.11.1.1.D1.1.1.B1.1.2.T1.1.1.M11.1.21.1.2.D1.1.2.B1.1.3.M11.1.2.M11.1.31.1.3.G1.1.3.TData DateSSFS1.1.3.P1.1.3.MFSummary ScheduleBegin New Product Z Develop and Deliver Product Z Work Package 1: Component 1Design Component 1Build Component 1Test Component 1 Complete Component 1 Work Package 2: Component 2Design Component 2Build Component 2Test Component 2Complete Component 2 Work Package 3: Integrated Components 1 and 2Integrate Components 1 and 2 as Product ZComplete Integration of Components 1 and 2Test Integrated Components as Product ZDeliver Product ZFinish New Product ZFigure 6-21. Project Schedule Presentations—Examples

220 Part 1 – Guide6.5.3.3 SCHEDULE DATAThe schedule data for the project schedule model is the collection of information for describing and controlling the schedule. The schedule data includes, at a minimum, the schedule milestones, schedule activities, activity attributes, and documentation of all identiﬁed assumptions and constraints. The amount of additional data varies by application area. Information frequently supplied as supporting detail includes but is not limited to:uuResource requirements by time period, often in the form of a resource histogram;uuAlternative schedules, such as best-case or worst-case, not resource-leveled or resource-leveled, or with or without imposed dates; anduuApplied schedule reserves.Schedule data could also include such items as resource histograms, cash-ﬂow projections, order and delivery schedules, or other relevant information.6.5.3.4 PROJECT CALENDARSA project calendar identiﬁes working days and shifts that are available for scheduled activities. It distinguishes time periods in days or parts of days that are available to complete scheduled activities from time periods that are not available for work. A schedule model may require more than one project calendar to allow for different work periods for some activities to calculate the project schedule. The project calendars may be updated.6.5.3.5 CHANGE REQUESTSDescribed in Section 4.3.3.4. Modiﬁcations to the project scope or project schedule may result in change requests to the scope baseline, and/or other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6). Preventive actions may include recommended changes to eliminate or reduce the probability of negative schedule variances.

��2216.5.3.6 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan may be updated to reﬂect a change in the way the schedule was developed and will be managed.uuCost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a revised cost baseline is needed to provide a realistic basis for performance measurement.6.5.3.7 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity attributes are updated to include any revised resource requirements and any other revisions generated by the Develop Schedule process.uuAssumption log. Described in Section 4.1.3.2. The assumption log may be updated with changes to assumptions in duration, resource utilization, sequencing, or other information that is revealed as a result of developing the schedule model.uuDuration estimates. Described in Section 6.4.3.1. The number and availability of resources, along with the activity dependencies can result in a change to the duration estimates. If the resource-leveling analysis changes the resource requirements, then the duration estimates will likely need to be updated as well.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were efﬁcient and effective in developing the schedule model.uuResource requirements. Described in Section 9.2.3.1. Resource leveling can have a signiﬁcant effect on preliminary estimates for the types and quantities of resources required. If the resource-leveling analysis changes the resource requirements, then the resource requirements are updated.uuRisk register. Described in Section 11.2.3.1. The risk register may need to be updated to reﬂect opportunities or threats perceived through scheduling assumptions.

222 Part 1 – Guide6.6 CONTROL SCHEDULEControl Schedule is the process of monitoring the status of the project to update the project schedule and managing changes to the schedule baseline. The key beneﬁt of this process is that the schedule baseline is maintained throughout the project. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 6-22. Figure 6-23 depicts the data ﬂow diagram of the process.Figure 6-22. Control Schedule: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsControl Schedule.1 Data analysis• Earned value analysis• Iteration burndown chart• Performance reviews• Trend analysis• Variance analysis• What-if scenario analysis.2 Critical path method.3 Project management information system.4 Resource optimization.6 Leads and lags.7 Schedule compression.1 Project management plan• Schedule management plan• Schedule baseline• Scope baseline• Performance measurement baseline.2 Project documents• Lessons learned register• Project calendars• Project schedule• Resource calendars• Schedule data.3 Work performance data.4 Organizational process assets.1 Work performance information.2 Schedule forecasts.3 Change requests.4 Project management plan updates• Schedule management plan• Schedule baseline• Cost baseline• Performance measurement baseline.5 Project documents updates• Assumption log• Basis of estimates• Lessons learned register• Project schedule• Resource calendars• Risk register• Schedule data

��223• Project charter4.3Direct andManageProject Work• Work performance dataProject management plan• Schedule management plan • Schedule baseline• Scope baseline • Performance measurement baselineProject documents• Lessons learned register• Project calendars• Project schedule• Resource calendars• Schedule dataProjectManagementPlanProjectDocumentsProjectDocuments4.6PerformIntegratedChange Control4.5Monitor andControlProject Work6.6ControlScheduleEnterprise/Organization• Organizational process assets• Work performance information• Change requests• Schedule forecastsProject documents updates• Assumption log• Basis of estimates• Lessons learned register• Project schedule• Resource calendars• Risk register• Schedule dataProject management plan updates• Schedule management plan• Schedule baseline• Cost baseline• Performance measurement baselineProjectManagementPlanFigure 6-23. Control Schedule: Data Flow DiagramUpdating the schedule model requires knowing the actual performance to date. Any change to the schedule baseline can only be approved through the Perform Integrated Change Control process (Section 4.6). Control Schedule, as a component of the Perform Integrated Change Control process, is concerned with:uuDetermining the current status of the project schedule,uuInﬂuencing the factors that create schedule changes,uuReconsidering necessary schedule reserves,uuDetermining if the project schedule has changed, anduuManaging the actual changes as they occur.

224 Part 1 – GuideWhen an agile approach is used, Control Schedule is concerned with:uuDetermining the current status of the project schedule by comparing the total amount of work delivered and accepted against the estimates of work completed for the elapsed time cycle;uuConducting retrospectives (scheduled reviews to record lessons learned) for correcting processes and improving, if required;uuReprioritizing the remaining work plan (backlog);uuDetermining the rate at which the deliverables are produced, validated, and accepted (velocity) in the given time per iteration (agreed-upon work cycle duration, typically 2 weeks or 1 month);uuDetermining that the project schedule has changed; anduuManaging the actual changes as they occur.When work is being contracted, regular and milestone status updates from contractors and suppliers are a means of ensuring the work is progressing as agreed upon to ensure the schedule is under control. Scheduled status reviews and walkthroughs should be done to ensure the contractor reports are accurate and complete.6.6.1 CONTROL SCHEDULE: INPUTS6.6.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management describes the frequency that the schedule will be updated, how reserve will be used, and how the schedule will be controlled.uuSchedule baseline. Described in Section 6.5.3.1. The schedule baseline is compared with actual results to determine if a change, corrective action, or preventive action is necessary.uuScope baseline. Described in Section 5.4.3.1. The project WBS, deliverables, constraints, and assumptions documented in the scope baseline are considered explicitly when monitoring and controlling the schedule baseline.uuPerformance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis the performance measurement baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary.

��2256.6.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve schedule control.uuProject calendars. Described in Section 6.5.3.4. A schedule model may require more than one project calendar to allow for different work periods for some activities to calculate the schedule forecasts.uuProject schedule. Described in Section 6.5.3.2. Project schedule refers to the most recent version with notations to indicate updates, completed activities, and started activities as of the indicated date.uuResource calendars. Described in Section 9.2.1.2. Resource calendars show the availability of team and physical resources.uuSchedule data. Described in Section 6.5.3.3. Schedule data will be reviewed and updated in the Control Schedule process.6.6.1.3 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data contains data on project status such as which activities have started, their progress (e.g., actual duration, remaining duration, and physical percent complete), and which activities have ﬁnished.6.6.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Control Schedule process include but are not limited to:uuExisting formal and informal schedule control-related policies, procedures, and guidelines;uuSchedule control tools; anduuMonitoring and reporting methods to be used.

226 Part 1 – Guide6.6.2 CONTROL SCHEDULE: TOOLS AND TECHNIQUES6.6.2.1 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuEarned value analysis. Described in Section 7.4.2.2. Schedule performance measurements such as schedule variance (SV) and schedule performance index (SPI) are used to assess the magnitude of variation to the original schedule baseline.uuIteration burndown chart. This chart tracks the work that remains to be completed in the iteration backlog. It is used to analyze the variance with respect to an ideal burndown based on the work committed from iteration planning (see Section 6.4.2.8). A forecast trend line can be used to predict the likely variance at iteration completion and take appropriate actions during the course of the iteration. A diagonal line representing the ideal burndown and daily actual remaining work is then plotted. A trend line is then calculated to forecast completion based on remaining work. Figure 6-24 is an example of an iteration burndown chart.Figure 6-24. Iteration Burndown ChartIteration Burndown ChartIteration DaysRemaining Work300250200150100500123456789101112ActualRemainingWorkIdealRemainingWorkForecastRemainingWork

227uuPerformance reviews. Performance reviews measure, compare, and analyze schedule performance against the schedule baseline such as actual start and ﬁnish dates, percent complete, and remaining duration for work in progress.uuTrend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to determine whether performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparing to future performance goals in the form of completion dates.uuVariance analysis. Variance analysis looks at variances in planned versus actual start and ﬁnish dates, planned versus actual durations, and variances in ﬂoat. Part of variance analysis is determining the cause and degree of variance relative to the schedule baseline (see Section 6.5.3.1), estimating the implications of those variances for future work to completion, and deciding whether corrective or preventive action is required. For example, a major delay on any activity not on the critical path may have little effect on the overall project schedule, while a much shorter delay on a critical or near-critical activity may require immediate action.uuWhat-if scenario analysis. Described in Section 6.5.2.4. What-if scenario analysis is used to assess the various scenarios guided by the output from the Project Risk Management processes to bring the schedule model into alignment with the project management plan and approved baseline.6.6.2.2 CRITICAL PATH METHODDescribed in Section 6.5.2.2. Comparing the progress along the critical path can help determine schedule status. The variance on the critical path will have a direct impact on the project end date. Evaluating the progress of activities on near critical paths can identify schedule risk.6.6.2.3 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems include scheduling software that provides the ability to track planned dates versus actual dates, to report variances to and progress made against the schedule baseline, and to forecast the effects of changes to the project schedule model.6.6.2.4 RESOURCE OPTIMIZATIONDescribed in Section 6.5.2.3. Resource optimization techniques involve the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.

228 Part 1 – Guide6.6.2.5 LEADS AND LAGSAdjusting leads and lags is applied during network analysis to ﬁnd ways to bring project activities that are behind into alignment with the plan. For example, on a project to construct a new ofﬁce building, the landscaping can be adjusted to start before the exterior work of the building is completed by increasing the lead time in the relationship, or a technical writing team can adjust the start of editing the draft of a large document immediately after the document is written by eliminating or decreasing lag time.6.6.2.6 SCHEDULE COMPRESSIONSchedule compression techniques (see Section 6.5.2.6) are used to ﬁnd ways to bring project activities that are behind into alignment with the plan by fast tracking or crashing the schedule for the remaining work.6.6.3 CONTROL SCHEDULE: OUTPUTS6.6.3.1 WORK PERFORMANCE INFORMATIONDescribed in Section 4.5.1.3. Work performance information includes information on how the project work is performing compared to the schedule baseline. Variances in the start and ﬁnish dates and the durations can be calculated at the work package level and control account level. For projects using earned value analysis, the (SV) and (SPI) are documented for inclusion in work performance reports (see Section 4.5.3.1).6.6.3.2 SCHEDULE FORECASTSSchedule updates are forecasts of estimates or predictions of conditions and events in the project’s future based on information and knowledge available at the time of the forecast. Forecasts are updated and reissued based on work performance information provided as the project is executed. The information is based on the project’s past performance and expected future performance based on corrective or preventive actions. This can include earned value performance indicators, as well as schedule reserve information that could impact the project in the future.

2296.6.3.3 CHANGE REQUESTSDescribed in Section 4.3.3.4. Schedule variance analysis, as well as reviews of progress reports, results of performance measures, and modiﬁcations to the project scope or project schedule, may result in change requests to the schedule baseline, scope baseline, and/or other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6). Preventive actions may include recommended changes to eliminate or reduce the probability of negative schedule variances.6.6.3.4 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan may be updated to reﬂect a change in the way the schedule is managed.uuSchedule baseline. Described in Section 6.5.3.1. Changes to the schedule baseline are incorporated in response to approved change requests related to change in project scope, resources, or activity duration estimates. The schedule baseline may be updated to reﬂect changes caused by schedule compression techniques or performance issues.uuCost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to approved changes in scope, resources, or cost estimates.uuPerformance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates. In some cases, the performance variances can be so severe that a change request is put forth to revise the performance measurement baseline to provide a realistic basis for performance measurement.

230 Part 1 – Guide6.6.3.5 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. Schedule performance may indicate the need to revise assumptions on activity sequencing, durations, and productivity.uuBasis of estimates. Described in Section 6.4.3.2. Schedule performance may indicate the need to revise the way duration estimates were developed.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were effective in maintaining the schedule, causes of variances, and corrective actions that were used to respond to schedule variances.uuProject schedule. An updated project schedule (see Section 6.5.3.2) will be generated from the schedule model populated with updated schedule data to reﬂect the schedule changes and manage the project.uuResource calendars. Described in Section 9.2.1.2. Resource calendars are updated to reﬂect changes to the utilization of resource calendars that were the result of optimizing resources, schedule compression, and corrective or preventive actions.uuRisk register. Described in Section 11.2.3.1. The risk register and risk response plans within it, may be updated based on the risks that may arise due to schedule compression techniques.uuSchedule data. Described in Section 6.5.3.3. New project schedule network diagrams may be developed to display approved remaining durations and approved modiﬁcations to the schedule. In some cases, project schedule delays can be so severe that a new target schedule with forecasted start and ﬁnish dates is needed to provide realistic data for directing the work, measuring performance, and measuring progress.

��2317PROJECT COST MANAGEMENTProject Cost Management includes the processes involved in planning, estimating, budgeting, ﬁnancing, funding, managing, and controlling costs so that the project can be completed within the approved budget. The Project Cost Management processes are:7.1 Plan Cost Management—The process of deﬁning how the project costs will be estimated, budgeted, managed, monitored, and controlled.7.2 Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project work.7.3 Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.7.4 Control Costs—The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.Figure 7-1 provides an overview of the Project Cost Management processes. The Project Cost Management processes are presented as discrete processes with deﬁned interfaces, while in practice they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide. These processes interact with each other and with processes in other Knowledge Areas.On some projects, especially those of smaller scope, cost estimating and cost budgeting are tightly linked and can be viewed as a single process that can be performed by a single person over a relatively short period of time. They are presented here as distinct processes because the tools and techniques for each are different. The ability to inﬂuence cost is greatest at the early stages of the project, making early scope deﬁnition critical (see Section 5.3).

232 Part 1 – Guide.1 Inputs .1 Project charter .2 Project management plan .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Meetings.3 Outputs .1 Cost management plan.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Analogous estimating .3 Parametric estimating .4 Bottom-up estimating .5 Three-point estimating .6 Data analysis .7 Project management information system .8 Decision making .3 Outputs .1 Cost estimates .2 Basis of estimates .3 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Business documents .4 Agreements .5 Enterprise environmental factors .6 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Cost aggregation .3 Data analysis .4 Historical information review .5 Funding limit reconciliation .6 Financing.3 Outputs .1 Cost baseline .2 Project funding requirements .3 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Project funding requirements .4 Work performance data .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 To-complete performance index .4 Project management information system .3 Outputs .1 Work performance information .2 Cost forecasts .3 Change requests .4 Project management plan updates .5 Project documents updatesProject CostManagement Overview7.2 Estimate Costs7.1 Plan CostManagement7.3 Determine Budget7.4 Control CostsFigure 7-1. Project Cost Management Overview

233KEY CONCEPTS FOR PROJECT COST MANAGEMENTProject Cost Management is primarily concerned with the cost of the resources needed to complete project activities. Project Cost Management should consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the product, service, or result of the project. For example, limiting the number of design reviews can reduce the cost of the project but could increase the resulting product’s operating costs.Another aspect of cost management is recognizing that different stakeholders measure project costs in different ways and at different times. For example, the cost of an acquired item may be measured when the acquisition decision is made or committed, the order is placed, the item is delivered, or the actual cost is incurred or recorded for project accounting purposes. In many organizations, predicting and analyzing the prospective ﬁnancial performance of the project’s product is performed outside of the project. In others, such as a capital facilities project, Project Cost Management can include this work. When such predictions and analyses are included, Project Cost Management may address additional processes and numerous general ﬁnancial management techniques such as return on investment, discounted cash ﬂow, and investment payback analysis.TRENDS AND EMERGING PRACTICES IN PROJECT COST MANAGEMENTWithin the practice of Project Cost Management, trends include the expansion of earned value management (EVM) to include the concept of earned schedule (ES). ES is an extension to the theory and practice of EVM. Earned schedule theory replaces the schedule variance measures used in traditional EVM (earned value − planned value) with ES and actual time (AT). Using the alternate equation for calculating schedule variance ES − AT, if the amount of earned schedule is greater than 0, then the project is considered ahead of schedule. In other words, the project earned more than planned at a given point in time. The schedule performance index (SPI) using earned schedule metrics is ES/AT. This indicates the efﬁciency with which work is being accomplished. Earned schedule theory also provides formulas for forecasting the project completion date, using earned schedule, actual time, and estimated duration.

234 Part 1 – GuideTAILORING CONSIDERATIONSBecause each project is unique, the project manager may need to tailor the way Project Cost Management processes are applied. Considerations for tailoring include but are not limited to:uuKnowledge management. Does the organization have a formal knowledge management and ﬁnancial database repository that a project manager is required to use and that is readily accessible?uuEstimating and budgeting. Does the organization have existing formal or informal cost estimating and budgeting-related policies, procedures, and guidelines?uuEarned value management. Does the organization use earned value management in managing projects?uuUse of agile approach. Does the organization use agile methodologies in managing projects? How does this impact cost estimating?uuGovernance. Does the organization have formal or informal audit and governance policies, procedures, and guidelines?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSProjects with high degrees of uncertainty or those where the scope is not yet fully deﬁned may not beneﬁt from detailed cost calculations due to frequent changes. Instead, lightweight estimation methods can be used to generate a fast, high-level forecast of project labor costs, which can then be easily adjusted as changes arise. Detailed estimates are reserved for short-term planning horizons in a just-in-time fashion.In cases where high-variability projects are also subject to strict budgets, the scope and schedule are more often adjusted to stay within cost constraints.

��2357.1 PLAN COST MANAGEMENTPlan Cost Management is the process of deﬁning how the project costs will be estimated, budgeted, managed, monitored, and controlled. The key beneﬁt of this process is that it provides guidance and direction on how the project costs will be managed throughout the project. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 7-2. Figure 7-3 depicts the data ﬂow diagram of the process.Figure 7-2. Plan Cost Management: Inputs, Tools & Techniques, and OutputsFigure 7-3. Plan Cost Management: Data Flow DiagramTools & TechniquesInputsOutputsPlan Cost Management.1 Expert judgment.2 Data analysis.3 Meetings.1 Project charter.2 Project management plan• Schedule management plan• Risk management plan.3 Enterprise environmental factors.4 Organizational process assets.1 Cost management plan• Project charter7.1Plan CostManagementEnterprise/Organization4.1Develop ProjectCharter• Cost management plan• Project charterProject management plan• Schedule management plan• Risk management plan• Enterprise environmental factors• Organizational process assetsProjectManagementPlanProjectManagementPlan

236 Part 1 – GuideThe cost management planning effort occurs early in project planning and sets the framework for each of the cost management processes so that performance of the processes will be efﬁcient and coordinated. The cost management processes and their associated tools and techniques are documented in the cost management plan. The cost management plan is a component of the project management plan.7.1.1 PLAN COST MANAGEMENT: INPUTS7.1.1.1 PROJECT CHARTERDescribed in Section 4.2.3.1. The project charter provides the preapproved ﬁnancial resources from which the detailed project costs are developed. The project charter also deﬁnes the project approval requirements that will inﬂuence the management of the project costs.7.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuSchedule management plan. Described in Section 6.1.3.1. The schedule management plan establishes the criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management plan provides processes and controls that will impact cost estimation and management.uuRisk management plan. Described in Section 11.1.3.1. The risk management plan provides the approach for identifying, analyzing, and monitoring risks. The risk management plan provides processes and controls that will impact cost estimation and management.7.1.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Cost Management process include but are not limited to:uuOrganizational culture and structure can inﬂuence cost management.uuMarket conditions describe what products, services, and results are available in the regional and global markets.uuCurrency exchange rates for project costs are sourced from more than one country.

��237uuPublished commercial information such as resource cost rate information is often available from commercial databases that track skills and human resource costs, and provide standard costs for material and equipment. Published seller price lists are another source of information.uuProject management information system provides alternative possibilities for managing cost.uuProductivity differences in different parts of the world can have a large inﬂuence on the cost of projects.7.1.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Cost Management process include but are not limited to:uuFinancial controls procedures (e.g., time reporting, required expenditure and disbursement reviews, accounting codes, and standard contract provisions);uuHistorical information and lessons learned repository;uuFinancial databases; anduuExisting formal and informal cost estimating and budgeting-related policies, procedures, and guidelines.7.1.2 PLAN COST MANAGEMENT: TOOLS AND TECHNIQUES7.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuPrevious similar projects;uuInformation in the industry, discipline, and application area;uuCost estimating and budgeting; anduuEarned value management.

238 Part 1 – Guide7.1.2.2 DATA ANALYSISA data analysis technique that can be used for this process includes but is not limited to alternatives analysis. Alternatives analysis can include reviewing strategic funding options such as: self-funding, funding with equity, or funding with debt. It can also include consideration of ways to acquire project resources such as making, purchasing, renting, or leasing.7.1.2.3 MEETINGSProject teams may hold planning meetings to develop the cost management plan. Attendees may include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for project costs, and others as needed.7.1.3 PLAN COST MANAGEMENT: OUTPUTS7.1.3.1 COST MANAGEMENT PLANThe cost management plan is a component of the project management plan and describes how the project costs will be planned, structured, and controlled. The cost management processes and their associated tools and techniques are documented in the cost management plan.For example, the cost management plan can establish the following:uuUnits of measure. Each unit used in measurements (such as staff hours, staff days, or weeks for time measures; meters, liters, tons, kilometers, or cubic yards for quantity measures; or lump sum in currency form) is deﬁned for each of the resources.uuLevel of precision. This is the degree to which cost estimates will be rounded up or down (e.g., US$995.59 to US$1,000), based on the scope of the activities and magnitude of the project.uuLevel of accuracy. The acceptable range (e.g., ±10%) used in determining realistic cost estimates is speciﬁed, and may include an amount for contingencies.

239uuOrganizational procedures links. The work breakdown structure (WBS) (Section 5.4) provides the framework for the cost management plan, allowing for consistency with the estimates, budgets, and control of costs. The WBS component used for the project cost accounting is called the control account. Each control account is assigned a unique code or account number(s) that links directly to the performing organization’s accounting system.uuControl thresholds. Variance thresholds for monitoring cost performance may be speciﬁed to indicate an agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically expressed as percentage deviations from the baseline plan.uuRules of performance measurement. Earned value management (EVM) rules of performance measurement are set. For example, the cost management plan may:unDeﬁne the points in the WBS at which measurement of control accounts will be performed;unEstablish the EVM techniques (e.g., weighted milestones, ﬁxed-formula, percent complete, etc.) to be employed; andunSpecify tracking methodologies and the EVM computation equations for calculating projected estimate at completion (EAC) forecasts to provide a validity check on the bottom-up EAC.uuReporting formats. The formats and frequency for the various cost reports are deﬁned.uuAdditional details. Additional details about cost management activities include but are not limited to:unDescription of strategic funding choices,unProcedure to account for ﬂuctuations in currency exchange rates, andunProcedure for project cost recording.For more speciﬁc information regarding earned value management, refer to the Practice Standard for Earned Value Management – Second Edition [17].

240 Part 1 – Guide7.2 ESTIMATE COSTSEstimate Costs is the process of developing an approximation of the cost of resources needed to complete project work. The key beneﬁt of this process is that it determines the monetary resources required for the project. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure 7-4. Figure 7-5 depicts the data ﬂow diagram of the process.Figure 7-4. Estimate Costs: Inputs, Tools & Techniques, and OutputsFigure 7-5. Estimate Costs: Data Flow DiagramTools & TechniquesInputsOutputsEstimate Costs.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point estimating.6 Data analysis• Alternatives analysis• Reserve analysis• Cost of quality.7 Project management information system.8 Decision making• Voting.1 Project management plan• Cost management plan• Quality management plan• Scope baseline.2 Project documents• Lessons learned register• Project schedule• Resources requirements• Risk register.3 Enterprise environmental factors.4 Organizational process assets.1 Cost estimates.2 Basis of estimates.3 Project documents updates • Assumption log• Lessons learned register• Risk register7.2EstimateCostsEnterprise/OrganizationProject documents updates• Assumption log• Lessons learned register• Risk register• Cost estimates• Basis of estimatesProject management plan• Cost management plan• Quality management.plan• Scope baselineProject documents• Lessons learned register• Project schedule• Resources requirements• Risk register• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectDocumentsProjectManagementPlan

��241A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. It is a prediction that is based on the information known at a given point in time. Cost estimates include the identiﬁcation and consideration of costing alternatives to initiate and complete the project. Cost trade-offs and risks should be considered, such as make versus buy, buy versus lease, and the sharing of resources in order to achieve optimal costs for the project.Cost estimates are generally expressed in units of some currency (i.e., dollars, euros, yen, etc.), although in some instances other units of measure, such as staff hours or staff days, are used to facilitate comparisons by eliminating the effects of currency ﬂuctuations.Cost estimates should be reviewed and reﬁned during the course of the project to reﬂect additional detail as it becomes available and assumptions are tested. The accuracy of a project estimate will increase as the project progresses through the project life cycle. For example, a project in the initiation phase may have a rough order of magnitude (ROM) estimate in the range of −25% to +75%. Later in the project, as more information is known, deﬁnitive estimates could narrow the range of accuracy to −5% to +10%. In some organizations, there are guidelines for when such reﬁnements can be made and the degree of conﬁdence or accuracy that is expected.Costs are estimated for all resources that will be charged to the project. This includes but is not limited to labor, materials, equipment, services, and facilities, as well as special categories such as an inﬂation allowance, cost of ﬁnancing, or contingency costs. Cost estimates may be presented at the activity level or in summary form.7.2.1 ESTIMATE COSTS: INPUTS7.2.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuCost management plan. Described in Section 7.1.3.1. The cost management plan describes estimating methods that can be used and the level of precision and accuracy required for the cost estimate.uuQuality management plan. Described in Section 8.1.3.1. The quality management plan describes the activities and resources necessary for the project management team to achieve the quality objectives set for the project.

242 Part 1 – GuideuuScope baseline. Described in Section 5.4.3.1. The scope baseline includes the project scope statement, WBS, and WBS dictionary:unProject scope statement. The scope statement (Section 5.3.3.1) reﬂects funding constraints by period for the expenditure of project funds or other ﬁnancial assumptions and constraints.unWork breakdown structure. The WBS (Section 5.4.3.1) provides the relationships among all the project deliverables and their various components.unWBS dictionary. The WBS dictionary (Section 5.4.3.) and related detailed statements of work provide an identiﬁcation of the deliverables and a description of the work in each WBS component required to produce each deliverable.7.2.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to developing cost estimates can be applied to later phases in the project to improve the accuracy and precision of the cost estimates.uuProject schedule. Described in Section 6.5.3.2. The schedule includes the type, quantity, and amount of time that team and physical resources will be active on the project. The duration estimates (Section 6.4.3.1) will affect cost estimates when resources are charged per unit of time and when there are seasonal ﬂuctuations in costs. The schedule also provides useful information for projects that incorporate the cost of ﬁnancing (including interest charges).uuResource requirements. Described in Section 9.2.3.1. Resource requirements identify the types and quantities of resources required for each work package or activity.uuRisk register. Described in Section 11.2.3.1. The risk register contains details of individual project risks that have been identiﬁed and prioritized, and for which risk responses are required. The risk register provides detailed information that can be used to estimate costs.

2437.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Estimate Costs process include but are not limited to:uuMarket conditions. These conditions describe what products, services, and results are available in the market, from whom, and under what terms and conditions. Regional and/or global supply and demand conditions greatly inﬂuence resource costs.uuPublished commercial information. Resource cost rate information is often available from commercial databases that track skills and human resource costs, and provide standard costs for material and equipment. Published seller price lists are another source of information.uuExchange rates and inflation. For large-scale projects that extend multiple years with multiple currencies, the ﬂuctuations of currencies and inﬂation need to be understood and built into the Estimate Cost process.7.2.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Estimate Costs process include but are not limited to:uuCost estimating policies,uuCost estimating templates,uuHistorical information and lessons learned repository.7.2.2 ESTIMATE COSTS: TOOLS AND TECHNIQUES7.2.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuPrevious similar projects;uuInformation in the industry, discipline, and application area; anduuCost estimating methods.

244 Part 1 – Guide7.2.2.2 ANALOGOUS ESTIMATINGDescribed in Section 6.4.2.2. Analogous cost estimating uses values, or attributes, of a previous project that are similar to the current project. Values and attributes of the projects may include but are not limited to: scope, cost, budget, duration, and measures of scale (e.g., size, weight). Comparison of these project values, or attributes, becomes the basis for estimating the same parameter or measurement for the current project. 7.2.2.3 PARAMETRIC ESTIMATINGDescribed in Section 6.4.2.3. Parametric estimating uses a statistical relationship between relevant historical data and other variables (e.g., square footage in construction) to calculate a cost estimate for project work. This technique can produce higher levels of accuracy depending on the sophistication and underlying data built into the model. Parametric cost estimates can be applied to a total project or to segments of a project, in conjunction with other estimating methods.7.2.2.4 BOTTOM-UP ESTIMATINGDescribed in Section 6.4.2.5. Bottom-up estimating is a method of estimating a component of work. The cost of individual work packages or activities is estimated to the greatest level of specified detail. The detailed cost is then summarized or “rolled up” to higher levels for subsequent reporting and tracking purposes. The cost and accuracy of bottom-up cost estimating are typically influenced by the size or other attributes of the individual activity or work package.7.2.2.5 THREE-POINT ESTIMATINGDescribed in Section 6.4.2.4. The accuracy of single-point cost estimates may be improved by considering estimation uncertainty and risk and using three estimates to deﬁne an approximate range for an activity’s cost:uuMost likely (cM). The cost of the activity, based on realistic effort assessment for the required work and any predicted expenses.uuOptimistic (cO). The cost based on analysis of the best-case scenario for the activity.uuPessimistic (cP). The cost based on analysis of the worst-case scenario for the activity.

245Depending on the assumed distribution of values within the range of the three estimates, the expected cost, cE, can be calculated using a formula. Two commonly used formulas are triangular and beta distributions. The formulas are:uuTriangular distribution. cE = (cO + cM + cP) / 3uuBeta distribution. cE = (cO + 4cM + cP) / 6Cost estimates based on three points with an assumed distribution provide an expected cost and clarify the range of uncertainty around the expected cost.7.2.2.6 DATA ANALYSISData analysis techniques that can be used in the Estimate Costs process include but are not limited to:uuAlternatives analysis. Alternatives analysis is a technique used to evaluate identiﬁed options in order to select which options or approaches to use to execute and perform the work of the project. An example would be evaluating the cost, schedule, resource, and quality impacts of buying versus making a deliverable.uuReserve analysis. Cost estimates may include contingency reserves (sometimes called contingency allowances) to account for cost uncertainty. Contingency reserves are the budget within the cost baseline that is allocated for identiﬁed risks. Contingency reserves are often viewed as the part of the budget intended to address the known-unknowns that can affect a project. For example, rework for some project deliverables could be anticipated, while the amount of this rework is unknown. Contingency reserves may be estimated to account for this unknown amount of rework. Contingency reserves can be provided at any level from the speciﬁc activity to the entire project. The contingency reserve may be a percentage of the estimated cost, a ﬁxed number, or may be developed by using quantitative analysis methods.As more precise information about the project becomes available, the contingency reserve may be used, reduced, or eliminated. Contingency should be clearly identiﬁed in cost documentation. Contingency reserves are part of the cost baseline and the overall funding requirements for the project.uuCost of quality. Assumptions about costs of quality (Section 8.1.2.3) may be used to prepare the estimates. This includes evaluating the cost impact of additional investment in conformance versus the cost of nonconformance. It can also include looking at short-term cost reductions versus the implication of more frequent problems later on in the product life cycle.

246 Part 1 – Guide7.2.2.7 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. The project management information system can include spreadsheets, simulation software, and statistical analysis tools to assist with cost estimating. Such tools simplify the use of some cost-estimating techniques and thereby facilitate rapid consideration of cost estimate alternatives.7.2.2.8 DECISION MAKINGThe decision-making techniques that can be used in the Estimate Costs process include but are not limited to voting. Described in Section 5.2.2.4, voting is an assessment process having multiple alternatives with an expected outcome in the form of future actions. These techniques are useful for engaging team members to improve estimate accuracy and commitment to the emerging estimates.7.2.3 ESTIMATE COSTS: OUTPUTS7.2.3.1 COST ESTIMATESCost estimates include quantitative assessments of the probable costs required to complete project work, as well as contingency amounts to account for identiﬁed risks, and management reserve to cover unplanned work. Cost estimates can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the cost estimate. This includes but is not limited to direct labor, materials, equipment, services, facilities, information technology, and special categories such as cost of ﬁnancing (including interest charges), an inﬂation allowance, exchange rates, or a cost contingency reserve. Indirect costs, if they are included in the project estimate, can be included at the activity level or at higher levels.

��2477.2.3.2 BASIS OF ESTIMATESThe amount and type of additional details supporting the cost estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the cost estimate was derived.Supporting detail for cost estimates may include:uuDocumentation of the basis of the estimate (i.e., how it was developed),uuDocumentation of all assumptions made,uuDocumentation of any known constraints,uuDocumentation of identiﬁed risks included when estimating costs,uuIndication of the range of possible estimates (e.g., US$10,000 (±10%) to indicate that the item is expected to cost between a range of values), anduuIndication of the conﬁdence level of the ﬁnal estimate.7.2.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. During the Cost Estimates process, new assumptions may be made, new constraints may be identiﬁed, and existing assumptions or constraints may be revisited and changed. The assumption log should be updated with this new information.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were efﬁcient and effective in developing cost estimates.uuRisk register. Described in Section 11.2.3.1. The risk register may be updated when appropriate risk responses are chosen and agreed upon during the Estimate Cost process.

248 Part 1 – Guide7.3 DETERMINE BUDGETDetermine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. The key beneﬁt of this process is that it determines the cost baseline against which project performance can be monitored and controlled. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 7-6. Figure 7-7 depicts the data ﬂow diagram of the process.A project budget includes all the funds authorized to execute the project. The cost baseline is the approved version of the time-phased project budget that includes contingency reserves, but excludes management reserves.Figure 7-6. Determine Budget: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDetermine Budget.1 Expert judgment.2 Cost aggregation.3 Data analysis• Reserve analysis.4 Historical information review.5 Funding limit reconciliation.6 Financing.1 Project management plan• Cost management plan• Resource management plan• Scope baseline.2 Project documents• Basis of estimates• Cost estimates• Project schedule• Risk register.3 Business documents• Business case• Benefits management plan.4 Agreements.5 Enterprise environmental factors.6 Organizational process assets.1 Cost baseline.2 Project funding requirements.3 Project documents updates • Cost estimates• Project schedule• Risk register

��249Figure 7-7. Determine Budget: Data Flow Diagram• Project charter12.2 ConductProcurements• AgreementsProject management plan• Cost management plan• Resource management plan• Scope baselineProject documents• Basis of estimates• Cost estimates• Project schedule• Risk register• Business case• Benefits management planProjectManagementPlanProjectDocumentsProjectDocumentsBusinessDocuments7.4ControlCosts7.3DetermineBudgetEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Cost baseline• Project funding requirementsProject documents updates• Cost estimates• Project schedule• Risk registerProjectManagementPlan

250 Part 1 – Guide7.3.1 DETERMINE BUDGET: INPUTS7.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuCost management plan. Described in Section 7.1.3.1. The cost management plan describes how the project costs will be structured into the project budget.uuResource management plan. Described in Section 9.1.3.1. The resource management plan provides information on rates (personnel and other resources), estimation of travel costs, and other foreseen costs that are necessary to estimate the overall project budget.uuScope baseline. Described in Section 5.4.3.1. The scope baseline includes the project scope statement, WBS, and WBS dictionary details for cost estimation and management.7.3.1.2 PROJECT DOCUMENTSExamples of project documents that can be considered as inputs for this process include but are not limited to:uuBasis of estimates. Described in Section 6.4.3.2. Supporting detail for cost estimates contained in the basis for estimates should specify any basic assumptions dealing with the inclusion or exclusion of indirect or other costs in the project budget.uuCost estimates. Described in Section 7.2.3.1. Cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package.uuProject schedule. Described in Section 6.5.3.2. The project schedule includes planned start and ﬁnish dates for the project’s activities, milestones, work packages, and control accounts. This information can be used to aggregate costs to the calendar periods in which the costs are planned to be incurred.uuRisk register. Described in Section 11.2.3.1. The risk register should be reviewed to consider how to aggregate the risk response costs. Updates to the risk register are included with project documents updates described in Section 11.5.3.3.

��2517.3.1.3 BUSINESS DOCUMENTSDescribed in Section 1.2.6. The business documents that can be considered as inputs for this process include but are not limited to:uuBusiness case. The business case identiﬁes the critical success factors for the project, including ﬁnancial success factors.uuBenefits management plan. The beneﬁts management plan includes the target beneﬁts, such as net present value calculations, timeframe for realizing beneﬁts, and the metrics associated with the beneﬁts.7.3.1.4 AGREEMENTSDescribed in Section 12.2.3.2. Applicable agreement information and costs relating to products, services, or results that have been or will be purchased are included when determining the budget.7.3.1.5 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Estimate Costs process include but are not limited to exchange rates. For large-scale projects that extend multiple years with multiple currencies, the ﬂuctuations of currencies need to be understood and built into the Determine Budget process.7.3.1.6 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Determine Budget process include but are not limited to:uuExisting formal and informal cost budgeting-related policies, procedures, and guidelines;uuHistorical information and lessons learned repository.uuCost budgeting tools; anduuReporting methods.

252 Part 1 – Guide7.3.2 DETERMINE BUDGET: TOOLS AND TECHNIQUES7.3.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuPrevious similar projects;uuInformation in the industry, discipline, and application area;uuFinancial principles; anduuFunding requirement and sources.7.3.2.2 COST AGGREGATIONCost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS (such as control accounts) and, ultimately, for the entire project.7.3.2.3 DATA ANALYSISA data analysis technique that can be used in the Determine Budget process includes but is not limited to reserve analysis, which can establish the management reserves for the project. Management reserves are an amount of the project budget withheld for management control purposes and are reserved for unforeseen work that is within scope of the project. Management reserves are intended to address the unknown unknowns that can affect a project. The management reserve is not included in the cost baseline but is part of the overall project budget and funding requirements. When an amount of management reserves is used to fund unforeseen work, the amount of management reserve used is added to the cost baseline, thus requiring an approved change to the cost baseline.

2537.3.2.4 HISTORICAL INFORMATION REVIEWReviewing historical information can assist in developing parametric estimates or analogous estimates. Historical information may include project characteristics (parameters) to develop mathematical models to predict total project costs. Such models may be simple (e.g., residential home construction is based on a certain cost per square foot of space) or complex (e.g., one model of software development costing uses multiple separate adjustment factors, each of which has numerous points within it).Both the cost and accuracy of analogous and parametric models can vary widely. They are most likely to be reliable when:uuHistorical information used to develop the model is accurate,uuParameters used in the model are readily quantiﬁable, anduuModels are scalable, such that they work for large projects, small projects, and phases of a project.7.3.2.5 FUNDING LIMIT RECONCILIATIONThe expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project. A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling of work to level out the rate of expenditures. This is accomplished by placing imposed date constraints for work into the project schedule.7.3.2.6 FINANCINGFinancing entails acquiring funding for projects. It is common for long-term infrastructure, industrial, and public services projects to seek external sources of funds. If a project is funded externally, the funding entity may have certain requirements that are required to be met.

��254 Part 1 – Guide7.3.3 DETERMINE BUDGET: OUTPUTS7.3.3.1 COST BASELINEThe cost baseline is the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures. It is used as a basis for comparison to actual results. The cost baseline is developed as a summation of the approved budgets for the different schedule activities.Figure 7-8 illustrates the various components of the project budget and cost baseline. Cost estimates for the various project activities, along with any contingency reserves (see Section 7.2.2.6) for these activities, are aggregated into their associated work package costs. The work package cost estimates, along with any contingency reserves estimated for the work packages, are aggregated into control accounts. The summation of the control accounts make up the cost baseline. Since the cost estimates that make up the cost baseline are directly tied to the schedule activities, this enables a time-phased view of the cost baseline, which is typically displayed in the form of an S-curve, as is illustrated in Figure 7-9. For projects that use earned value management, the cost baseline is referred to as the performance measurement baseline.Management reserves (Section 7.2.2.3) are added to the cost baseline to produce the project budget. As changes warranting the use of management reserves arise, the change control process is used to obtain approval to move the applicable management reserve funds into the cost baseline.

��255Figure 7-8. Project Budget Components Figure 7-9. Cost Baseline, Expenditures, and Funding RequirementsActivity CostEstimatesActivityContingency ReserveWork PackageCost EstimatesContingencyReserveCostBaselineControlAccountsManagementReserveProjectBudgetProject Budget ComponentTotal AmountBACProject BudgetManagement ReserveFunding RequirementsCost BaselineExpendituresTimeCumulative Values

256 Part 1 – Guide7.3.3.2 PROJECT FUNDING REQUIREMENTSTotal funding requirements and periodic funding requirements (e.g., quarterly, annually) are derived from the cost baseline. The cost baseline will include projected expenditures plus anticipated liabilities. Funding often occurs in incremental amounts, and may not be evenly distributed, which appear as steps in Figure 7-9. The total funds required are those included in the cost baseline plus management reserves, if any. Funding requirements may include the source(s) of the funding.7.3.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuCost estimates. Described in Section 7.2.3.1. Cost estimates are updated to record any additional information.uuProject schedule. Described in Section 6.5.3.2. Estimated costs for each activity may be recorded as part of the project schedule.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.

��2577.4 CONTROL COSTSControl Costs is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline. The key beneﬁt of this process is that the cost baseline is maintained throughout the project. This process is performed throughout the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 7-10. Figure 7-11 depicts the data ﬂow diagram of the process.Figure 7-10. Control Costs: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsControl Costs.1 Expert judgment.2 Data analysis• Earned value analysis• Variance analysis• Trend analysis• Reserve analysis.3 To-complete performance index.4 Project management information system.1 Project management plan• Cost management plan• Cost baseline• Performance measurement baseline.2 Project documents• Lessons learned register.3 Project funding requirements.4 Work performance data.5 Organizational process assets.1 Work performance information.2 Cost forecasts.3 Change requests.4 Project management plan updates• Cost management plan• Cost baseline• Performance measurement baseline.5 Project documents updates • Assumption log• Basis of estimates• Cost estimates• Lessons learned register• Risk register

258 Part 1 – Guide• Project charter4.3Direct and Manage Project Work7.3DetermineBudget• Work performance dataProject management plan• Cost management plan• Cost baseline• Performance measurement baseline• Lessons learned register• Project funding requirementsProjectManagementPlanProjectDocumentsProjectDocuments4.6PerformIntegratedChange Control4.5Monitor and ControlProject Work7.4ControlCostsEnterprise/Organization• Organizational process assets• Change requests• Cost forecasts• Work performance informationProject managementplan updates• Cost management plan• Cost baseline• Performance measurement baselineProject documents updates• Assumption log• Basis of estimates• Cost estimates• Lessons learned register• Risk registerProjectManagementPlanFigure 7-11. Control Costs: Data Flow Diagram

��259Updating the budget requires knowledge of the actual costs spent to date. Any increase to the authorized budget can only be approved through the Perform Integrated Change Control process (Section 4.6). Monitoring the expenditure of funds without regard to the value of work being accomplished for such expenditures has little value to the project, other than to track the outﬂow of funds. Much of the effort of cost control involves analyzing the relationship between the consumption of project funds and the work being accomplished for such expenditures. The key to effective cost control is the management of the approved cost baseline.Project cost control includes:uuInﬂuencing the factors that create changes to the authorized cost baseline;uuEnsuring that all change requests are acted on in a timely manner;uuManaging the actual changes when and as they occur;uuEnsuring that cost expenditures do not exceed the authorized funding by period, by WBS component, by activity, and in total for the project;uuMonitoring cost performance to isolate and understand variances from the approved cost baseline;uuMonitoring work performance against funds expended;uuPreventing unapproved changes from being included in the reported cost or resource usage;uuInforming appropriate stakeholders of all approved changes and associated cost; anduuBringing expected cost overruns within acceptable limits.7.4.1 CONTROL COSTS: INPUTS7.4.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuCost management plan. Described in Section 7.1.3.1. The cost management plan describes how the project costs will be managed and controlled.uuCost baseline. Described in Section 7.3.3.1. The cost baseline is compared with actual results to determine if a change, corrective action, or preventive action is necessary.uuPerformance measurement baseline. Described in Section 4.2.3.1. When using earned value analysis, the performance measurement baseline is compared to actual results to determine if a change, corrective action, or preventive action is necessary.

260 Part 1 – Guide7.4.1.2. PROJECT DOCUMENTSExamples of project documents that can be considered as inputs for this process include but are not limited to the lessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve cost control.7.4.1.3 PROJECT FUNDING REQUIREMENTSDescribed in Section 7.3.3.2. The project funding requirements include projected expenditures plus anticipated liabilities.7.4.1.4 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data contains data on project status such as which costs have been authorized, incurred, invoiced, and paid.7.4.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Control Costs process include but are not limited to:uuExisting formal and informal cost control-related policies, procedures, and guidelines;uuCost control tools; anduuMonitoring and reporting methods to be used.7.4.2 CONTROL COSTS: TOOLS AND TECHNIQUES7.4.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Examples of expert judgment during the Control Costs process include but are not limited to:uuVariance analysis,uuEarned value analysis,uuForecasting, anduuFinancial analysis.

2617.4.2.2 DATA ANALYSISData analysis techniques that can be used to control costs include but are not limited to:uuEarned value analysis (EVA). Earned value analysis compares the performance measurement baseline to the actual schedule and cost performance. EVM integrates the scope baseline with the cost baseline and schedule baseline to form the performance measurement baseline. EVM develops and monitors three key dimensions for each work package and control account:unPlanned value. Planned value (PV) is the authorized budget assigned to scheduled work. It is the authorized budget planned for the work to be accomplished for an activity or work breakdown structure (WBS) component, not including management reserve. This budget is allocated by phase over the life of the project, but at a given point in time, planned value deﬁnes the physical work that should have been accomplished. The total of the PV is sometimes referred to as the performance measurement baseline (PMB). The total planned value for the project is also known as budget at completion (BAC).unEarned value. Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget associated with the authorized work that has been completed. The EV being measured needs to be related to the PMB, and the EV measured cannot be greater than the authorized PV budget for a component. The EV is often used to calculate the percent complete of a project. Progress measurement criteria should be established for each WBS component to measure work in progress. Project managers monitor EV, both incrementally to determine current status and cumulatively to determine the long-term performance trends.unActual cost. Actual cost (AC) is the realized cost incurred for the work performed on an activity during a speciﬁc time period. It is the total cost incurred in accomplishing the work that the EV measured. The AC needs to correspond in deﬁnition to what was budgeted in the PV and measured in the EV (e.g., direct hours only, direct costs only, or all costs including indirect costs). The AC will have no upper limit; whatever is spent to achieve the EV will be measured.

262 Part 1 – GuideuuVariance analysis. Described in Section 4.5.2.2. Variance analysis, as used in EVM, is the explanation (cause, impact, and corrective actions) for cost (CV = EV – AC), schedule (SV = EV – PV), and variance at completion (VAC = BAC – EAC) variances. Cost and schedule variances are the most frequently analyzed measurements. For projects not using formal earned value analysis, similar variance analyses can be performed by comparing planned cost against actual cost to identify variances between the cost baseline and actual project performance. Further analysis can be performed to determine the cause and degree of variance relative to the schedule baseline and any corrective or preventive actions needed. Cost performance measurements are used to assess the magnitude of variation to the original cost baseline. An important aspect of project cost control includes determining the cause and degree of variance relative to the cost baseline (see Section 7.3.3.1) and deciding whether corrective or preventive action is required. The percentage range of acceptable variances will tend to decrease as more work is accomplished. Examples of variance analysis include but are not limited to:unSchedule variance. Schedule variance (SV) is a measure of schedule performance expressed as the difference between the earned value and the planned value. It is the amount by which the project is ahead or behind the planned delivery date, at a given point in time. It is a measure of schedule performance on a project. It is equal to the earned value (EV) minus the planned value (PV). The EVA schedule variance is a useful metric in that it can indicate when a project is falling behind or is ahead of its baseline schedule. The EVA schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Schedule variance is best used in conjunction with critical path method (CPM) scheduling and risk management. Equation: SV = EV – PV.unCost variance. Cost variance (CV) is the amount of budget deﬁcit or surplus at a given point in time, expressed as the difference between earned value and the actual cost. It is a measure of cost performance on a project. It is equal to the earned value (EV) minus the actual cost (AC). The cost variance at the end of the project will be the difference between the budget at completion (BAC) and the actual amount spent. The CV is particularly critical because it indicates the relationship of physical performance to the costs spent. Negative CV is often difﬁcult for the project to recover. Equation: CV = EV – AC.

263unSchedule performance index. The schedule performance index (SPI) is a measure of schedule efﬁciency expressed as the ratio of earned value to planned value. It measures how efﬁciently the project team is accomplishing the work. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the ﬁnal project completion estimates. An SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Since the SPI measures all project work, the performance on the critical path also needs to be analyzed to determine whether the project will ﬁnish ahead of or behind its planned ﬁnish date. The SPI is equal to the ratio of the EV to the PV. Equation: SPI = EV/PV.unCost performance index. The cost performance index (CPI) is a measure of the cost efﬁciency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVA metric and measures the cost efﬁciency for the work completed. A CPI value of less than 1.0 indicates a cost overrun for work completed. A CPI value greater than 1.0 indicates a cost underrun of performance to date. The CPI is equal to the ratio of the EV to the AC. Equation: CPI = EV/AC.uuTrend analysis. Described in Section 4.5.2.2. Trend analysis examines project performance over time to determine if performance is improving or deteriorating. Graphical analysis techniques are valuable for understanding performance to date and for comparison to future performance goals in the form of BAC versus estimate at completion (EAC) and completion dates. Examples of the trend analysis techniques include but are not limited to:unCharts. In earned value analysis, three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis. Figure 7-12 uses S-curves to display EV data for a project that is performing over budget and behind the schedule.

264 Part 1 – GuideFigure 7-12. Earned Value, Planned Value, and Actual CostsunForecasting. As the project progresses, the project team may develop a forecast for the estimate at completion (EAC) that may differ from the budget at completion (BAC) based on the project performance. If it becomes obvious that the BAC is no longer viable, the project manager should consider the forecasted EAC. Forecasting the EAC involves making projections of conditions and events in the project’s future based on current performance information and other knowledge available at the time of the forecast. Forecasts are generated, updated, and reissued based on work performance data (Section 4.3.3.2) that is provided as the project is executed. The work performance information covers the project’s past performance and any information that could impact the project in the future.EACs are typically based on the actual costs incurred for work completed, plus an estimate to complete (ETC) the remaining work. It is incumbent on the project team to predict what it may encounter to perform the ETC, based on its experience to date. Earned value analysis works well in conjunction with manual forecasts of the required EAC costs. The most common EAC forecasting approach is a manual, bottom-up summation by the project manager and project team.The project manager’s bottom-up EAC method builds upon the actual costs and experience incurred for the work completed, and requires a new estimate to complete the remaining project work. Equation: EAC = AC + Bottom-up ETC.BACETCProject BudgetManagement ReservePlannedValue (PV)EarnedValue (EV)ActualCost (AC)EACTimeCumulative CostData Date

265The project manager’s manual EAC is quickly compared with a range of calculated EACs representing various risk scenarios. When calculating EAC values, the cumulative CPI and SPI values are typically used. While EVM data quickly provide many statistical EACs, only three of the more common methods are described as follows:umEAC forecast for ETC work performed at the budgeted rate. This EAC method accepts the actual project performance to date (whether favorable or unfavorable) as represented by the actual costs, and predicts that all future ETC work will be accomplished at the budgeted rate. When actual performance is unfavorable, the assumption that future performance will improve should be accepted only when supported by project risk analysis. Equation: EAC = AC + (BAC – EV).umEAC forecast for ETC work performed at the present CPI. This method assumes that what the project has experienced to date can be expected to continue in the future. The ETC work is assumed to be performed at the same cumulative cost performance index (CPI) as that incurred by the project to date. Equation: EAC = BAC / CPI.umEAC forecast for ETC work considering both SPI and CPI factors. In this forecast, the ETC work will be performed at an efﬁciency rate that considers both the cost and schedule performance indices. This method is most useful when the project schedule is a factor impacting the ETC effort. Variations of this method weight the CPI and SPI at different values (e.g., 80/20, 50/50, or some other ratio) according to the project manager’s judgment. Equation: EAC = AC + [(BAC – EV) / (CPI × SPI)].uuReserve analysis. Described in Section 7.2.2.6. During cost control, reserve analysis is used to monitor the status of contingency and management reserves for the project to determine if these reserves are still needed or if additional reserves need to be requested. As work on the project progresses, these reserves may be used as planned to cover the cost of risk responses or other contingencies. Conversely, when opportunities are captured and resulting in cost savings, funds may be added to the contingency amount, or taken from the project as margin/proﬁt.If the identiﬁed risks do not occur, the unused contingency reserves may be removed from the project budget to free up resources for other projects or operations. Additional risk analysis during the project may reveal a need to request that additional reserves be added to the project budget.

��266 Part 1 – Guide7.4.2.3 TO-COMPLETE PERFORMANCE INDEXThe to-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a speciﬁed management goal, expressed as the ratio of the cost to ﬁnish the outstanding work to the remaining budget. TCPI is the calculated cost performance index that is achieved on the remaining work to meet a speciﬁed management goal, such as the BAC or the EAC. If it becomes obvious that the BAC is no longer viable, the project manager should consider the forecasted EAC. Once approved, the EAC may replace the BAC in the TCPI calculation. The equation for the TCPI based on the BAC: (BAC – EV) / (BAC – AC).The TCPI is conceptually displayed in Figure 7-13. The equation for the TCPI is shown in the lower left as the work remaining (deﬁned as the BAC minus the EV) divided by the funds remaining (which can be either the BAC minus the AC, or the EAC minus the AC).If the cumulative CPI falls below the baseline (as shown in Figure 7-13), all future work of the project will need to be performed immediately in the range of the TCPI (BAC) (as reﬂected in the top line of Figure 7-13) to stay within the authorized BAC. Whether this level of performance is achievable is a judgment call based on a number of considerations, including risk, time remaining in the project, and technical performance. This level of performance is displayed as the TCPI (EAC) line. The equation for the TCPI is based on the EAC: (BAC – EV) / (EAC – AC). The EVM formulas are provided in Table 7-1.

��267Earned Value AnalysisLexicon DefinitionHow UsedEquationAbbreviationNameInterpretation of ResultThe authorized budget assigned to scheduled work.The measure of work performed expressed in terms of the budget authorized for that work.The realized cost incurred for the work performed on an activity during a specific time period.The sum of all budgets established for the work to be performed.The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.The amount by which the project is ahead or behind the planned delivery date, at a given point in time, expressed as the difference between the earned value and the planned value.A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion.A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.A measure of schedule efficiency expressed as the ratio of earned value to planned value.The expected total cost of com-pleting all work expressed as the sum of the actual cost to date and the estimate to complete.The expected cost to finish all the remaining project work.A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the budget available.Planned ValueEarned ValueActual CostBudget at CompletionCost VarianceSchedule VarianceVariance at CompletionCost Performance IndexSchedule Performance IndexEstimate At CompletionEstimate to CompleteTo Complete Performance IndexPVEVACBACCVSVVACCPISPIEACETCTCPIThe value of the work planned to be completed to a point in time, usually the data date, or project completion.The planned value of all the work completed (earned) to a point in time, usually the data date, without reference to actual costs. The actual cost of all the work completed to a point in time, usually the data date.The value of total planned work, the project cost baseline.The difference between the value of work completed to a point in time, usually the data date, and the actual costs to the same point in time.The difference between the work completed to a point in time, usually the data date, and the work planned to be completed to the same point in time.The estimated difference in cost at the completion of the project.A CPI of 1.0 means the project is exactly on budget, that the work actually done so far is exactly the same as the cost so far. Other values show the percentage of how much costs are over or under the budgeted amount for work accomplished.An SPI of 1.0 means that the project is exactly on schedule, that the work actually done so far is exactly the same as the work planned to be done so far. Other values show the percentage of how much costs are over or under the budgeted amount for work planned.If the CPI is expected to be the same for the remainder of the project, EAC can be calculated using:If future work will be accomplished at the planned rate, use:If the initial plan is no longer valid, use:If both the CPI and SPI influence the remaining work, use:Assuming work is proceeding on plan, the cost of completing the remaining authorized work can be calculated using:Reestimate the remaining work from the bottom up.The efficiency that must be maintained in order to complete on plan.The efficiency that must be maintained in order to complete the current EAC.EV = sum of the plannedvalue of completed workCV = EV – ACSV = EV – PVVAC = BAC – EACCPI = EV/AC SPI = EV/PVEAC = BAC/CPI EAC = AC + BAC – EVEAC = AC + Bottom-up ETCEAC = AC + [(BAC – EV)/ (CPI x SPI)]ETC = EAC – ACETC = ReestimateTCPI = (BAC – EV)/(BAC – AC)TCPI = (BAC – EV)/(EAC – AC)Positive = Under planned costNeutral = On planned costNegative = Over planned costPositive = Ahead of Schedule Neutral = On scheduleNegative = Behind SchedulePositive = Under planned costNeutral = On planned costNegative = Over planned costGreater than 1.0 = Under planned costExactly 1.0 = On planned cost Less than 1.0 = Over planned costGreater than 1.0 = Ahead of scheduleExactly 1.0 = On scheduleLess than 1.0 = Behind schedule Greater than 1.0 = Harder to completeExactly 1.0 = Same to complete Less than 1.0 = Easier to complete Greater than 1.0 = Harder to complete Exactly 1.0 = Same to complete Less than 1.0 = Easier to complete Table 7-1. Earned Value Calculations Summary Table

268 Part 1 – GuideStatus Date1.00>1<1TCPI(BAC)TCPI(EAC)Baseline PlanCumulativeCPIFormula:= TCPIWork Remaining (BAC-EV)Funds Remaining (BAC-AC) or (EAC-AC)Figure 7-13. To-Complete Performance Index (TCPI)7.4.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems are often used to monitor the three EVM dimensions (PV, EV, and AC), to display graphical trends, and to forecast a range of possible ﬁnal project results.7.4.3 CONTROL COSTS: OUTPUTS7.4.3.1 WORK PERFORMANCE INFORMATIONDescribed in Section 4.5.1.3. Work performance information includes information on how the project work is performing compared to the cost baseline. Variances in the work performed and the cost of the work are evaluated at the work package level and control account level. For projects using earned value analysis, CV, CPI, EAC, VAC, and TCPI are documented for inclusion in work performance reports (Section 4.5.3.1).

��2697.4.3.2 COST FORECASTSEither a calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders.7.4.3.3 CHANGE REQUESTSDescribed in Section 4.3.3.4. Analysis of project performance may result in a change request to the cost and schedule baselines or other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).7.4.3.4 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuCost management plan. Described in Section 7.1.3.1. Changes to the cost management plan, such as changes to control thresholds or speciﬁed levels of accuracy required in managing the project’s cost, are incorporated in response to feedback from relevant stakeholders.uuCost baseline. Described in Section 7.3.3.1. Changes to the cost baseline are incorporated in response to approved changes in scope, resources, or cost estimates. In some cases, cost variances can be so severe that a revised cost baseline is needed to provide a realistic basis for performance measurement.uuPerformance measurement baseline. Described in Section 4.2.3.1. Changes to the performance measurement baseline are incorporated in response to approved changes in scope, schedule performance, or cost estimates. In some cases, the performance variances can be so severe that a change request is put forth to revise the performance measurement baseline to provide a realistic basis for performance measurement.

270 Part 1 – Guide7.4.3.5 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. Cost performance may indicate the need to revise assumptions on resource productivity and other factors inﬂuencing cost performance.uuBasis of estimates. Described in Section 6.4.3.2. Cost performance may indicate the need to revisit the original basis of estimates.uuCost estimates. Described in Section 7.2.3.1. Cost estimates may need to be updated to reﬂect the actual cost efﬁciency for the project.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were effective in maintaining the budget, variance analysis, earned value analysis, forecasting, and corrective actions that were used to respond to cost variances.uuRisk register. Described in Section 11.2.3.1. The risk register may be updated if the cost variances have crossed, or are likely to cross, the cost threshold.

��2718PROJECT QUALITY MANAGEMENTProject 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’ objectives. Project Quality Management also supports continuous process improvement activities as undertaken on behalf of the performing organization.The Project Quality Management processes are:8.1 Plan Quality Management—The process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements and/or standards.8.2 Manage Quality—The process of translating the quality management plan into executable quality activities that incorporate the organization’s quality policies into the project.8.3 Control Quality—The process of monitoring and recording the results of executing the quality management activities to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.Figure 8-1 provides an overview of the Project Quality Management processes. The Project Quality Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide. In addition, these quality processes may differ within industries and companies.

272 Part 1 – Guide.1 Inputs .1 Project management plan .2 Project documents .3 Organizational process assets.2 Tools & Techniques .1 Data gathering .2 Data analysis .3 Decision making .4 Data representation .5 Audits .6 Design for X .7 Problem solving .8 Quality improvement methods.3 Outputs .1 Quality reports .2 Test and evaluation documents .3 Change requests .4 Project management plan updates .5 Project documents updates.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgement .2 Data gathering .3 Data analysis .4 Decision making .5 Data representation .6 Test and inspection planning .7 Meetings .3 Outputs .1 Quality management plan .2 Quality metrics .3 Project management plan updates .4 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Approved change requests .4 Deliverables .5 Work performance data .6 Enterprise environmental factors .7 Organizational process assets.2 Tools & Techniques .1 Data gathering .2 Data analysis .3 Inspection .4 Testing/product evaluations .5 Data representation .6 Meetings .3 Outputs .1 Quality control measurements .2 Verified deliverables .3 Work performance information .4 Change requests .5 Project management plan updates .6 Project documents updatesProject QualityManagement Overview8.2 Manage Quality8.1 Plan QualityManagement8.3 Control QualityFigure 8-1. Project Quality Management OverviewFigure 8-2 provides an overview of the major inputs and outputs of the Project Quality Management processes and the interrelations of these processes in the Project Quality Management Knowledge Area. The Plan Quality Management process is concerned with the quality that the work needs to have. Manage Quality is concerned with managing the quality processes throughout the project. During the Manage Quality process, quality requirements identiﬁed during the Plan Quality Management process are turned into test and evaluation instruments, which are then applied during the Control Quality process to verify these quality requirements are met by the project. Control Quality is concerned with comparing the work results with the quality requirements to ensure the result is acceptable. There are two outputs speciﬁc to the Project Quality Management Knowledge Area that are used by other Knowledge Areas: veriﬁed deliverables and quality reports.

��273Figure 8-2. Major Project Quality Management Process InterrelationsKEY CONCEPTS FOR PROJECT QUALITY MANAGEMENTProject Quality Management addresses the management of the project and the deliverables of the project. It applies to all projects, regardless of the nature of their deliverables. Quality measures and techniques are speciﬁc to the type of deliverables being produced by the project. For example, the project quality management of software deliverables may use different approaches and measures from those used when building a nuclear power plant. In either case, failure to meet the quality requirements can have serious negative consequences for any or all of the project’s stakeholders. For example:uuMeeting customer requirements by overworking the project team may result in decreased proﬁts and increased levels of overall project risks, employee attrition, errors, or rework.uuMeeting project schedule objectives by rushing planned quality inspections may result in undetected errors, decreased proﬁts, and increased post-implementation risks.To OtherProjectProcessesValidateScopeManageQualityControlQualityProjectIntegrationManagementPlanQualityManagementQuality templates from organizationalprocess assetsQuality managementplanQuality metricsTest and evaluate documentsQuality reportsQuality control measurementsWork performance informationQuality reportsVerified deliverablesDeliverablesWork performance data

274 Part 1 – GuideQuality and grade are not the same concepts. Quality as a delivered performance or result is “the degree to which a set of inherent characteristics fulﬁll requirements” (ISO 9000 [18].). Grade as a design intent is a category assigned to deliverables having the same functional use but different technical characteristics. The project manager and the project management team are responsible for managing the trade-offs associated with delivering the required levels of both quality and grade. While a quality level that fails to meet quality requirements is always a problem, a low-grade product may not be a problem. For example:uuIt may not be a problem if a suitable low-grade product (one with a limited number of features) is of high quality (no obvious defects). In this example, the product would be appropriate for its general purpose of use.uuIt may be a problem if a high-grade product (one with numerous features) is of low quality (many defects). In essence, a high-grade feature set would prove ineffective and/or inefﬁcient due to low quality.Prevention is preferred over inspection. It is better to design quality into deliverables, rather than to ﬁnd quality issues during inspection. The cost of preventing mistakes is generally much less than the cost of correcting mistakes when they are found by inspection or during usage.Depending on the project and the industry area, the project team may need a working knowledge of statistical control processes to evaluate data contained in the Control Quality outputs. The team should know the differences between the following pairs of terms:uuPrevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer);uuAttribute sampling (the result either conforms or does not conform) and variable sampling (the result is rated on a continuous scale that measures the degree of conformity); anduuTolerances (speciﬁed range of acceptable results) and control limits (that identify the boundaries of common variation in a statistically stable process or process performance).The cost of quality (COQ) includes all costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework). Failure costs are often categorized into internal (found by the project team) and external (found by the customer). Failure costs are also called the cost of poor quality. Section 8.1.2.3 provides some examples to consider in each area. Organizations choose to invest in defect prevention because of the beneﬁts over the life of the product. Because projects are temporary, decisions about the COQ over a product’s life cycle are often the concern of program management, portfolio management, the PMO, or operations.

��275There are ﬁve levels of increasingly effective quality management as follows:uuUsually, the most expensive approach is to let the customer ﬁnd the defects. This approach can lead to warranty issues, recalls, loss of reputation, and rework costs.uuDetect and correct the defects before the deliverables are sent to the customer as part of the quality control process. The control quality process has related costs, which are mainly the appraisal costs and internal failure costs.uuUse quality assurance to examine and correct the process itself and not just special defects.uuIncorporate quality into the planning and designing of the project and product.uuCreate a culture throughout the organization that is aware and committed to quality in processes and products.TRENDS AND EMERGING PRACTICES IN PROJECT QUALITY MANAGEMENTModern quality management approaches seek to minimize variation and to deliver results that meet deﬁned stakeholder requirements. Trends in Project Quality Management include but are not limited to:uuCustomer satisfaction. Understand, evaluate, deﬁne, and manage requirements so that customer expectations are met. This requires a combination of conformance to requirements (to ensure the project produces what it was created to produce) and ﬁtness for use (the product or service needs to satisfy the real needs). In agile environments, stakeholder engagement with the team ensures customer satisfaction is maintained throughout the project.uuContinual improvement. The plan-do-check-act (PDCA) cycle is the basis for quality improvement as deﬁned by Shewhart and modiﬁed by Deming. In addition, quality improvement initiatives such as total quality management (TQM), Six Sigma, and Lean Six Sigma may improve both the quality of project management, as well as the quality of the end product, service, or result.uuManagement responsibility. Success requires the participation of all members of the project team. Management retains, within its responsibility for quality, a related responsibility to provide suitable resources at adequate capacities.uuMutually beneficial partnership with suppliers. An organization and its suppliers are interdependent. Relationships based on partnership and cooperation with the supplier are more beneﬁcial to the organization and to the suppliers than traditional supplier management. The organization should prefer long-term relationships over short-term gains. A mutually beneﬁcial relationship enhances the ability for both the organization and the suppliers to create value for each other, enhances the joint responses to customer needs and expectations, and optimizes costs and resources.

276 Part 1 – GuideTAILORING CONSIDERATIONSEach project is unique; therefore, the project manager will need to tailor the way Project Quality Management processes are applied. Considerations for tailoring include but are not limited to:uuPolicy compliance and auditing. What quality policies and procedures exist in the organization? What quality tools, techniques, and templates are used in the organization?uuStandards and regulatory compliance. Are there any speciﬁc quality standards in the industry that need to be applied? Are there any speciﬁc governmental, legal, or regulatory constraints that need to be taken into consideration?uuContinuous improvement. How will quality improvement be managed in the project? Is it managed at the organizational level or at the level of each project?uuStakeholder engagement. Is there a collaborative environment for stakeholders and suppliers?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSIn order to navigate changes, agile methods call for frequent quality and review steps built in throughout the project rather than toward the end of the project.Recurring retrospectives regularly check on the effectiveness of the quality processes. They look for the root cause of issues then suggest trials of new approaches to improve quality. Subsequent retrospectives evaluate any trial processes to determine if they are working and should be continued or new adjusting or should be dropped from use.In order to facilitate frequent, incremental delivery, agile methods focus on small batches of work, incorporating as many elements of project deliverables as possible. Small batch systems aim to uncover inconsistencies and quality issues earlier in the project life cycle when the overall costs of change are lower.

��2778.1 PLAN QUALITY MANAGEMENTPlan Quality Management is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements and/or standards. The key beneﬁt of this process is that it provides guidance and direction on how quality will be managed and veriﬁed throughout the project. This process is performed once or at predeﬁned points in the project. The inputs and outputs of this process are depicted in Figure 8.3. Figure 8.4 depicts the data ﬂow diagram for the process.Figure 8-3. Plan Quality Management: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsPlan Quality Management.1 Expert judgment.2 Data gathering• Benchmarking• Brainstorming• Interviews.3 Data analysis• Cost-benefit analysis• Cost of quality.4 Decision making• Multicriteria decision analysis.5 Data representation• Flowcharts• Logical data model• Matrix diagrams• Mind mapping.6 Test and inspection planning.7 Meetings.1 Project charter.2 Project management plan• Requirements management plan• Risk management plan• Stakeholder engagement plan• Scope baseline.3 Project documents• Assumption log• Requirements documentation• Requirements traceability matrix• Risk register• Stakeholder register .4 Enterprise environmental factors.5 Organizational process assets.1 Quality management plan.2 Quality metrics.3 Project management plan updates• Risk management plan• Scope baseline.4 Project documents updates• Lessons learned register• Requirements traceability matrix• Risk register• Stakeholder register

278 Part 1 – Guide• Project charter4.1DevelopProjectCharterProject management plan• Requirements management plan• Risk management plan• Stakeholder engagement plan• Scope baselineProject documents• Assumption log• Requirements documentation• Requirements traceability matrix• Risk register• Stakeholder register• Project charterProjectManagementPlanProjectDocumentsProjectDocuments8.1Plan QualityManagementEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Quality metrics• Quality management planProject management plan updates• Risk management plan• Scope baselineProject documents updates• Lessons learned register• Requirements traceability matrix• Risk register• Stakeholder registerProjectManagementPlanFigure 8-4. Plan Quality Management: Data Flow DiagramQuality planning should be performed in parallel with the other planning processes. For example, changes proposed in the deliverables in order to meet identiﬁed quality standards may require cost or schedule adjustments and a detailed risk analysis of the impact to plans.The quality planning techniques discussed here are those used most frequently on projects. There are many others that may be useful on certain projects or in speciﬁc application areas.

��2798.1.1 PLAN QUALITY MANAGEMENT: INPUTS8.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter provides the high-level project description and product characteristics. It also contains the project approval requirements, measurable project objectives, and related success criteria that will inﬂuence the quality management of the project.8.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuRequirements management plan. Described in Section 5.1.3.2. The requirements management plan provides the approach for identifying, analyzing, and managing the requirements that the quality management plan and quality metrics will reference.uuRisk management plan. Described in Section 11.1.3.1. The risk management plan provides the approach for identifying, analyzing, and monitoring risks. The information in the risk management plan and quality management plan work together to successfully deliver product and project success.uuStakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan provides the method for documenting the stakeholders’ needs and expectations that provide the foundation for quality management.uuScope baseline. Described in Section 5.4.3.1. The WBS along with the deliverables documented in the project scope statement are considered while determining which quality standards and objectives are suitable for the project, and which project deliverables and processes will be subjected to quality review. The scope statement includes the acceptance criteria for the deliverables. The deﬁnition of acceptance criteria may signiﬁcantly increase or decrease quality costs and, therefore, project costs. Satisfying all acceptance criteria implies the needs of the stakeholders have been met.

280 Part 1 – Guide8.1.1.3 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log has all the assumptions and constraints regarding quality requirements and standard compliance.uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation captures the requirements that the project and product should attain to meet stakeholder expectations. The components of the requirements documentation include but are not limited to project and product quality requirements. Requirements are used by the project team to help plan how quality control will be implemented on the project.uuRequirements traceability matrix. Described in Section 5.2.3.2. The requirements traceability matrix links product requirements to deliverables and helps to ensure each requirement in the requirements documentation is tested. The matrix provides an overview of the tests required to verify the requirements.uuRisk register. Described in Section 11.2.3.1. The risk register contains information on threats and opportunities that may impact quality requirements.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register helps to identify stakeholders who have a particular interest in or impact on quality, with the emphasis on the customer and project sponsor needs and expectations.8.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Quality Management process include but are not limited to:uuGovernmental agency regulations;uuRules, standards, and guidelines speciﬁc to the application area;uuGeographic distribution;uuOrganizational structure;uuMarketplace conditions;uuWorking or operating conditions of the project or its deliverables; anduuCultural perceptions.

��2818.1.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Quality Management process include but are not limited to:uuOrganizational quality management system including policies, procedures, and guidelines;uuQuality templates such as check sheets, traceability matrix, and others; anduuHistorical databases and lessons learned repository.8.1.2 PLAN QUALITY MANAGEMENT: TOOLS AND TECHNIQUES8.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuQuality assurance,uuQuality control,uuQuality measurements,uuQuality improvements, anduuQuality systems.8.1.2.2 DATA GATHERINGData-gathering techniques that can be used for this process include but are not limited to:uuBenchmarking. Benchmarking involves comparing actual or planned project practices or the project’s quality standards to those of comparable projects to identify best practices, generate ideas for improvement, and provide a basis for measuring performance. Benchmarked projects may exist within the performing organization or outside of it, or can be within the same application area or other application area. Benchmarking allows for analogies from projects in a different application area or different industries to be made.uuBrainstorming. Described in Section 4.1.2.2. Brainstorming can be used to gather data creatively from a group of team members or subject matter experts to develop the quality management plan that best fits the upcoming project.

282 Part 1 – GuideuuInterviews. Described in Section 5.2.2.2. Project and product quality needs and expectations, implicit and explicit, formal and informal, can be identiﬁed by interviewing experienced project participants, stakeholders, and subject matter experts. Interviews should be conducted in an environment of trust and conﬁdentiality to encourage honest and unbiased contributions.8.1.2.3 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuCost-benefit analysis. A cost-beneﬁt analysis is a ﬁnancial analysis tool used to estimate the strengths and weaknesses of alternatives in order to determine the best alternative in terms of beneﬁts provided. A cost-beneﬁt analysis will help the project manager determine if the planned quality activities are cost effective. The primary beneﬁts of meeting quality requirements include less rework, higher productivity, lower costs, increased stakeholder satisfaction, and increased proﬁtability. A cost-beneﬁt analysis for each quality activity compares the cost of the quality step to the expected beneﬁt.uuCost of quality. The cost of quality (COQ) associated with a project consists of one or more of the following costs (Figure 8-5 lists examples for each cost group):unPrevention costs. Costs related to the prevention of poor quality in the products, deliverables, or services of the speciﬁc project.unAppraisal costs. Costs related to evaluating, measuring, auditing, and testing the products, deliverables, or services of the speciﬁc project.unFailure costs (internal/external). Costs related to nonconformance of the products, deliverables, or services to the needs or expectations of the stakeholders.The optimal COQ is one that reﬂects the appropriate balance for investing in the cost of prevention and appraisal to avoid failure costs. Models show that there is an optimal quality cost for projects, where investing in additional prevention/appraisal costs is neither beneﬁcial nor cost effective.

��283Cost of ConformanceCost of NonconformancePrevention Costs(Build a quality product)• Training• Document processes• Equipment• Time to do it rightAppraisal Costs(Assess the quality)• Testing• Destructive testing loss• InspectionsMoney spent during the projectto avoid failuresInternal Failure Costs(Failures found by the project)• Rework• ScrapExternal Failure Costs(Failures found by the customer)• Liabilities• Warranty work• Lost businessMoney spent during and afterthe project because of failuresFigure 8-5. Cost of Quality8.1.2.4 DECISION MAKINGA decision-making technique that can be used for this process includes but is not limited to multicriteria decision analysis. Multicriteria decision analysis tools (e.g., prioritization matrix) can be used to identify the key issues and suitable alternatives to be prioritized as a set of decisions for implementation. Criteria are prioritized and weighted before being applied to all available alternatives to obtain a mathematical score for each alternative. The alternatives are then ranked by score. As used in this process, it can help prioritize quality metrics.

284 Part 1 – Guide8.1.2.5 DATA REPRESENTATIONData representation techniques that can be used for this process include but are not limited to:uuFlowcharts. Flowcharts are also referred to as process maps because they display the sequence of steps and the branching possibilities that exist for a process that transforms one or more inputs into one or more outputs. Flowcharts show the activities, decision points, branching loops, parallel paths, and the overall order of processing by mapping the operational details of procedures that exist within a horizontal value chain. One version of a value chain, known as a SIPOC (suppliers, inputs, process, outputs, and customers) model, is shown in Figure 8-6. Flowcharts may prove useful in understanding and estimating the cost of quality for a process. Information is obtained by using the workﬂow branching logic and associated relative frequencies to estimate the expected monetary value for the conformance and nonconformance work required to deliver the expected conforming output. When ﬂowcharts are used to represent the steps in a process, they are sometimes called process ﬂows or process ﬂow diagrams and they can be used for process improvement as well as identifying where quality defects can occur or where to incorporate quality checks.uuLogical data model. Logical data models are a visual representation of an organization’s data, described in business language and independent of any speciﬁc technology. The logical data model can be used to identify where data integrity or other quality issues can arise.uuMatrix diagrams. Matrix diagrams help ﬁnd the strength of relationships among different factors, causes, and objectives that exist between the rows and columns that form the matrix. Depending on how many factors may be compared, the project manager can use different shapes of matrix diagrams; for example, L, T, Y, X, C, and roof–shaped. In this process they facilitate identifying the key quality metrics that are important for the success of the project.uuMind mapping. Described in Section 5.2.2.3. Mind mapping is a diagrammatic method used to visually organizing information. A mind map in quality is often created around a single quality concept, drawn as an image in the center of a blank landscape page, to which associated representations of ideas such as images, words, and parts of words are added. The mind-mapping technique may help in the rapid gathering of project quality requirements, constraints, dependencies, and relationships.

��285Requirements andFeedback LoopRequirements andFeedback LoopOUTPUTINPUTPROCESSCUSTOMERSUPPLIERSuppliersInputsProcessOutputsCustomers••••••••••••••••••••Requirements List Measurements ListRequirements List Measurements List••••••••••••••••NOTE: The components of this diagram are flexible and can take any direction depending upon the circumstance.Figure 8-6. The SIPOC Model8.1.2.6 TEST AND INSPECTION PLANNINGDuring the planning phase, the project manager and the project team determine how to test or inspect the product, deliverable, or service to meet the stakeholders’ needs and expectations, as well as how to meet the goal for the product’s performance and reliability. The tests and inspections are industry dependent and can include, for example, alpha and beta tests in software projects, strength tests in construction projects, inspection in manufacturing, and ﬁeld tests and nondestructive tests in engineering.

286 Part 1 – Guide8.1.2.7 MEETINGSProject teams may hold planning meetings to develop the quality management plan. Attendees can include the project manager, the project sponsor, selected project team members, selected stakeholders, anyone with responsibility for project quality management activities, and others as needed.8.1.3 PLAN QUALITY MANAGEMENT: OUTPUTS8.1.3.1 QUALITY MANAGEMENT PLANThe quality management plan is a component of the project management plan that describes how applicable policies, procedures, and guidelines will be implemented to achieve the quality objectives. It describes the activities and resources necessary for the project management team to achieve the quality objectives set for the project. The quality management plan may be formal or informal, detailed, or broadly framed. The style and detail of the quality management plan are determined by the requirements of the project. The quality management plan should be reviewed early in the project to ensure that decisions are based on accurate information. The beneﬁts of this review can include a sharper focus on the project’s value proposition, reductions in costs, and less frequent schedule overruns that are caused by rework.The quality management plan may include but is not limited to the following components:uuQuality standards that will be used by the project;uuQuality objectives of the project;uuQuality roles and responsibilities;uuProject deliverables and processes subject to quality review;uuQuality control and quality management activities planned for the project;uuQuality tools that will be used for the project; anduuMajor procedures relevant for the project, such as dealing with nonconformance, corrective actions procedures, and continuous improvement procedures.

2878.1.3.2 QUALITY METRICSA quality metric specifically describes a project or product attribute and how the Control Quality process will verify compliance to it. Some examples of quality metrics include percentage of tasks completed on time, cost performance measured by CPI, failure rate, number of defects identified per day, total downtime per month, errors found per line of code, customer satisfaction scores, and percentage of requirements covered by the test plan as a measure of test coverage.8.1.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuRisk management plan. Described in Section 11.1.3.1. Decisions on the quality management approach may require changes to the agreed-upon approach to managing risk on the project, and these will be recorded in the risk management plan.uuScope baseline. Described in Section 5.4.3.1. The scope baseline may change as a result of this process if speciﬁc quality management activities need to be added. The WBS dictionary also records quality requirements, which may need updating.8.1.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered in the quality planning process.uuRequirements traceability matrix. Described in Section 5.2.3.2. Where quality requirements are speciﬁed by this process, they are recorded in the requirements traceability matrix.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.uuStakeholder register. Described in Section 13.1.3.1. Where additional information on existing or new stakeholders is gathered as a result of this process, it is recorded in the stakeholder register.

288 Part 1 – Guide8.2 MANAGE QUALITYManage Quality is the process of translating the quality management plan into executable quality activities that incorporate the organization’s quality policies into the project. The key beneﬁts of this process are that it increases the probability of meeting the quality objectives as well as identifying ineffective processes and causes of poor quality. Manage Quality uses the data and results from the control quality process to reﬂect the overall quality status of the project to the stakeholders. This process is performed throughout the project.The inputs, tools and techniques, and outputs of this process are depicted in Figure 8-7. Figure 8-8 depicts the data ﬂow diagram of the process.Figure 8-7. Manage Quality: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsManage Quality.1 Data gathering• Checklists.2 Data analysis• Alternatives analysis• Document analysis• Process analysis• Root cause analysis.3 Decision making• Multicriteria decision analysis.4 Data representation• Affinity diagrams• Cause-and-effect diagrams• Flowcharts• Histograms• Matrix diagrams• Scatter diagrams.5 Audits.6 Design for X.7 Problem solving.8 Quality improvement methods.1 Project management plan• Quality management plan.2 Project documents• Lessons learned register• Quality control measurements• Quality metrics• Risk report.3 Organizational process assets.1 Quality reports.2 Test and evaluation documents.3 Change requests.4 Project management plan updates• Quality management plan• Scope baseline• Schedule baseline• Cost baseline.5 Project documents updates• Issue log• Lessons learned register• Risk register

��289• Project charter4.6PerformIntegratedChange ControlProject management plan• Quality management planProject documents• Lessons learned register• Quality control measurements• Quality metrics• Risk reportProjectManagementPlanProjectDocumentsProjectDocuments8.2 ManageQualityEnterprise/Organization• Organizational process assets• Quality reports• Test and evaluation documents• Change requestsProject management plan updates• Quality management plan• Scope baseline• Schedule baseline• Cost baselineProject documents updates• Issue log• Lessons learned register• Risk registerProjectManagementPlanFigure 8-8. Manage Quality: Data Flow DiagramManage Quality is sometimes called quality assurance, although Manage Quality has a broader deﬁnition than quality assurance as it is used in nonproject work. In project management, the focus of quality assurance is on the processes used in the project. Quality assurance is about using project processes effectively. It involves following and meeting standards to assure stakeholders that the ﬁnal product will meet their needs, expectations, and requirements. Manage Quality includes all the quality assurance activities, and is also concerned with the product design aspects and process improvements. Manage Quality work will fall under the conformance work category in the cost of quality framework.

290 Part 1 – GuideThe Manage Quality process implements a set of planned and systematic acts and processes deﬁned within the project’s quality management plan that helps to:uuDesign an optimal and mature product by implementing speciﬁc design guidelines that address speciﬁc aspects of the product,uuBuild conﬁdence that a future output will be completed in a manner that meets the speciﬁed requirements and expectations through quality assurance tools and techniques such as quality audits and failure analysis,uuConﬁrm that the quality processes are used and that their use meets the quality objectives of the project, anduuImprove the efﬁciency and effectiveness of processes and activities to achieve better results and performance and enhance stakeholders’ satisfaction.The project manager and project team may use the organization’s quality assurance department, or other organizational functions, to execute some of the Manage Quality activities such as failure analysis, design of experiments, and quality improvement. Quality assurance departments usually have cross-organizational experience in using quality tools and techniques and are a good resource for the project.Manage Quality is considered the work of everybody—the project manager, the project team, the project sponsor, the management of the performing organization, and even the customer. All of these have roles in managing quality in the project, though the roles differ in size and effort. The level of participation in the quality management effort may differ between industries and project management styles. In agile projects, quality management is performed by all team members throughout the project, but in traditional projects, quality management is often the responsibility of speciﬁc team members.8.2.1 MANAGE QUALITY: INPUTS8.2.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to the quality management plan. Described in Section 8.1.3.1, the quality management plan deﬁnes the acceptable level of project and product quality and describes how to ensure this level of quality in its deliverables and processes. The quality management plan also describes what to do with nonconforming products and what corrective action to implement.

2918.2.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to managing quality can be applied to later phases in the project to improve the efﬁciency and effectiveness of managing quality.uuQuality control measurements. Described in Section 8.3.3.1. Quality control measurements are used to analyze and evaluate the quality of the processes and deliverables of the project against the standards of the performing organization or the requirements speciﬁed. Quality control measurements can also compare the processes used to create the measurements and validate actual measurements to determine their level of correctness.uuQuality metrics. Described in Section 8.1.3.2. Quality metrics are veriﬁed as part of the Control Quality process. The Manage Quality process uses these quality metrics as a basis for the development of test scenarios for the project and its deliverables and as a basis for improvement initiatives.uuRisk report. Described in Section 11.2.3.2. Risk report is used in the Manage Quality process to identify sources of overall project risk and the most important drivers of overall risk exposure that can impact the quality objectives of the project.8.2.1.3 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Manage Quality process include but are not limited to:uuOrganizational quality management system that includes policies, procedures, and guidelines;uuQuality templates such as check sheets, traceability matrix, test plans, test documents, and others;uuResults from previous audits; anduuLessons learned repository with information from similar projects.

292 Part 1 – Guide8.2.2 MANAGE QUALITY: TOOLS AND TECHNIQUES8.2.2.1 DATA GATHERINGA data-gathering technique that can be used for this process includes but is not limited to checklists (see Section 11.2.2.2). A checklist is a structured tool, usually component-speciﬁc, used to verify that a set of required steps has been performed or to check if a list of requirements has been satisﬁed. Based on the project’s requirements and practices, checklists may be simple or complex. Many organizations have standardized checklists available to ensure consistency in frequently performed tasks. In some application areas, checklists are also available from professional associations or commercial service providers. Quality checklists should incorporate the acceptance criteria included in the scope baseline.8.2.2.2 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuAlternatives analysis. Described in Section 9.2.2.5. This technique is used to evaluate identiﬁed options in order to select which different quality options or approaches are most appropriate to use.uuDocument analysis. Described in Section 5.2.2.3. The analysis of different documents produced as part of the output of project control processes, such as quality reports, test reports, performance reports, and variance analysis, can point to and focus on processes that may be out of control and may jeopardize meeting the speciﬁed requirements or stakeholders’ expectations.uuProcess analysis. Process analysis identiﬁes opportunities for process improvements. This analysis also examines problems, constraints, and non-value-added activities that occur during a process.uuRoot cause analysis (RCA). Root cause analysis is an analytical technique used to determine the basic underlying reason that causes a variance, defect, or risk. A root cause may underlie more than one variance, defect, or risk. It may also be used as a technique for identifying root causes of a problem and solving them. When all root causes for a problem are removed, the problem does not recur.

2938.2.2.3 DECISION MAKINGA decision-making technique that can be used for this process includes but is not limited to multicriteria decision analysis. Described in Section 8.1.2.4. Multicriteria decision making is used to evaluate several criteria when discussing alternatives that impact project or product quality. Project decisions can include choosing among different implementation scenarios or suppliers. Product decisions can include evaluating the life cycle cost, schedule, stakeholder satisfaction, and risks associated with resolving product defects.8.2.2.4 DATA REPRESENTATIONData representation techniques that can be used for this process include but are not limited to:uuAffinity diagrams. Described in Section 5.2.2.5. Afﬁnity diagrams can organize potential causes of defects into groups showing areas that should be focused on the most.uuCause-and-effect diagrams. Cause-and-effect diagrams are also known as ﬁshbone diagrams, why-why diagrams, or Ishikawa diagrams. This type of diagram breaks down the causes of the problem statement identiﬁed into discrete branches, helping to identify the main or root cause of the problem. Figure 8-9 is an example of a cause-and-effect diagram.uuFlowcharts. Described in Section 8.1.2.5. Flowcharts show a series of steps that lead to a defect.uuHistograms. Histograms show a graphical representation of numerical data. Histograms can show the number of defects per deliverable, a ranking of the cause of defects, the number of times each process is noncompliant, or other representations of project or product defects.uuMatrix diagrams. Described in Section 8.1.2.5. The matrix diagram seeks to show the strength of relationships among factors, causes, and objectives that exist between the rows and columns that form the matrix.uuScatter diagrams. A scatter diagram is a graph that shows the relationship between two variables. Scatter diagrams can demonstrate a relationship between any element of a process, environment, or activity on one axis and a quality defect on the other axis.

294 Part 1 – GuideFigure 8-9. Cause-and-Effect Diagram8.2.2.5 AUDITSAn audit is a structured, independent process used to determine if project activities comply with organizational and project policies, processes, and procedures. A quality audit is usually conducted by a team external to the project, such as the organization’s internal audit department, PMO, or by an auditor external to the organization. Quality audit objectives may include but are not limited to:uuIdentifying all good and best practices being implemented;uuIdentifying all nonconformity, gaps, and shortcomings;uuSharing good practices introduced or implemented in similar projects in the organization and/or industry;uuProactively offering assistance in a positive manner to improve the implementation of processes to help raise team productivity; anduuHighlighting contributions of each audit in the lessons learned repository of the organization.Product qualitynot matchingthe requirementsManagementEnvironmentMaterialEquipmentProcessPeopleWorker’s fatigueLack of trainingLow quality ofraw materialBad workingconditionsLow commitmentto qualityDelay in arrivalLow maintenanceOld technologyImproper handlingNot enough R&DNonoptionalmanufacturing methods

295The subsequent effort to correct any deﬁciencies should result in a reduced cost of quality and an increase in sponsor or customer acceptance of the project’s product. Quality audits may be scheduled or random, and may be conducted by internal or external auditors.Quality audits can conﬁrm the implementation of approved change requests including updates, corrective actions, defect repairs, and preventive actions.8.2.2.6 DESIGN FOR XDesign for X (DfX) is a set of technical guidelines that may be applied during the design of a product for the optimization of a speciﬁc aspect of the design. DfX can control or even improve the product’s ﬁnal characteristics. The X in DfX can be different aspects of product development, such as reliability, deployment, assembly, manufacturing, cost, service, usability, safety, and quality. Using the DfX may result in cost reduction, quality improvement, better performance, and customer satisfaction.8.2.2.7 PROBLEM SOLVINGProblem solving entails ﬁnding solutions for issues or challenges. It can include gathering additional information, critical thinking, creative, quantitative and/or logical approaches. Effective and systematic problem solving is a fundamental element in quality assurance and quality improvement. Problems can arise as a result of the Control Quality process or from quality audits and can be associated with a process or deliverable. Using a structured problem-solving method will help eliminate the problem and develop a long-lasting solution. Problem-solving methods generally include the following elements:uuDeﬁning the problem,uuIdentifying the root-cause,uuGenerating possible solutions,uuChoosing the best solution,uuImplementing the solution, anduuVerifying solution effectiveness.

296 Part 1 – Guide8.2.2.8 QUALITY IMPROVEMENT METHODSQuality improvements can occur based on ﬁndings and recommendations from quality control processes, the ﬁndings of the quality audits, or problem solving in the Manage Quality process. Plan-do-check-act and Six Sigma are two of the most common quality improvement tools used to analyze and evaluate opportunities for improvement.8.2.3 MANAGE QUALITY: OUTPUTS8.2.3.1 QUALITY REPORTSThe quality reports can be graphical, numerical, or qualitative. The information provided can be used by other processes and departments to take corrective actions in order to achieve the project quality expectations. The information presented in the quality reports may include all quality management issues escalated by the team; recommendations for process, project, and product improvements; corrective actions recommendations (including rework, defect/bugs repair, 100% inspection, and more); and the summary of ﬁndings from the Control Quality process.8.2.3.2 TEST AND EVALUATION DOCUMENTSTest and evaluation documents can be created based on industry needs and the organization’s templates. They are inputs to the Control Quality process and are used to evaluate the achievement of quality objectives. These documents may include dedicated checklists and detailed requirements traceability matrices as part of the document.8.2.3.3 CHANGE REQUESTSDescribed in Section 4.3.3.4. If changes occur during the Manage Quality process that impact any of the components of the project management plan, project documents, or project or product management processes, the project manager should submit a change request and follow the Perform Integrated Change Control process as deﬁned in Section 4.6.

��2978.2.3.4 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuQuality management plan. Described in Section 8.1.3.1. The agreed-upon approach to managing quality may need to be modiﬁed due to the actual results.uuScope baseline. Described in Section 5.4.3.1. The scope baseline may change as a result of speciﬁc quality management activities.uuSchedule baseline. Described in Section 6.5.3.1. The schedule baseline may change as a result of speciﬁc quality management activities.uuCost baseline. Described in Section 7.3.3.1. The cost baseline may change as a result of speciﬁc quality management activities.8.2.3.5 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the issue log.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well for the managing quality.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.

298 Part 1 – Guide8.3 CONTROL QUALITYControl Quality is the process of monitoring and recording results of executing the quality management activities in order to assess performance and ensure the project outputs are complete, correct, and meet customer expectations. The key beneﬁt of this process is verifying that project deliverables and work meet the requirements speciﬁed by key stakeholders for ﬁnal acceptance. The Control Quality process determines if the project outputs do what they were intended to do. Those outputs need to comply with all applicable standards, requirements, regulations, and speciﬁcations. This process is performed throughout the project.The inputs, tools and techniques, and outputs of this process are depicted in Figure 8-10. Figure 8-11 depicts the data ﬂow diagram of the process.Figure 8-10. Control Quality: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsControl Quality.1 Data gathering• Checklists• Check sheets• Statistical sampling• Questionnaires and surveys.2 Data analysis• Performance reviews• Root cause analysis.3 Inspection.4 Testing/product evaluations.5 Data representation• Cause-and-effect diagrams• Control charts• Histogram• Scatter diagrams.6 Meetings.1 Project management plan• Quality management plan.2 Project documents• Lessons learned register• Quality metrics• Test and evaluation documents.3 Approved change requests.4 Deliverables.5 Work performance data.6 Enterprise environmental factors.7 Organizational process assets.1 Quality control measurements.2 Verified deliverables.3 Work performance information.4 Change requests.5 Project management plan updates• Quality management plan.6 Project documents updates• Issue log• Lessons learned register• Risk register• Test and evaluation documents

��299• Project charter4.5Monitor andControlProject Work4.6PerformIntegratedChange Control5.5ValidateScopeProject management plan• Quality management planProject documents• Lessons learned register• Quality metrics• Test and evaluation documentsProjectManagementPlanProjectDocumentsProjectDocuments8.3ControlQualityEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Approved change requests• Deliverables• Work performance data• Work performance information• Change requests• Quality control measurements• Verified deliverablesProject management plan updates• Quality management planProject documents updates• Issue log• Lessons learned register• Risk register• Test and evaluation documentsProjectManagementPlan4.6PerformIntegratedChange Control4.3Direct andManageProject WorkFigure 8-11. Control Quality: Data Flow DiagramThe Control Quality process is performed to measure the completeness, compliance, and ﬁtness for use of a product or service prior to user acceptance and ﬁnal delivery. This is done by measuring all steps, attributes, and variables used to verify conformance or compliance to the speciﬁcations stated during the planning stage.Quality control should be performed throughout the project to formally demonstrate, with reliable data, that the sponsor’s and/or customer’s acceptance criteria have been met.

300 Part 1 – GuideThe level of effort to control quality and the degree of implementation may differ between industries and project management styles; in pharmaceutical, health, transportation, and nuclear industries, for example, there may be stricter quality control procedures compared to other industries, and the effort needed to meet the standards may be extensive. For example, in agile projects, the Control Quality activities may be performed by all team members throughout the project life cycle. In waterfall model-based projects, the quality control activities are performed at speciﬁc times, toward the end of the project or phase, by speciﬁed team members.8.3.1 CONTROL QUALITY: INPUTS8.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to the quality management plan. Described in Section 8.1.3.1, the quality management plan deﬁnes how quality control will be performed within the project.8.3.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve quality control.uuQuality metrics. Described in Section 8.1.3.2. A quality metric speciﬁcally describes a project or product attribute and how the Control Quality process will verify compliance to it. uuTest and evaluation documents. Described in Section 8.2.3.2. Test and evaluation documents are used to evaluate achievement of the quality objectives.

3018.3.1.3 APPROVED CHANGE REQUESTSDescribed in Section 4.6.3.1. As part of the Perform Integrated Change Control process, a change log update indicates that some changes are approved and some are not. Approved change requests may include modiﬁcations such as defect repairs, revised work methods, and revised schedules. Partial change completion may result in inconsistencies and later delays due to incomplete steps or corrections. The implementation of approved changes should be veriﬁed, conﬁrmed for completeness, retested, and certiﬁed as correct.8.3.1.4 DELIVERABLESA deliverable is any unique and veriﬁable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Deliverables that are outputs from the Direct and Manage Project Work process are inspected and compared to the acceptance criteria deﬁned in the project scope statement.8.3.1.5 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data contains data on product status such as observations, quality metrics, and measurements for technical performance, as well as project quality information on schedule performance and cost performance.8.3.1.6 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Control Quality process include but are not limited to:uuProject management information system; quality management software can be used to track errors and variations in processes or deliverables;uuGovernmental agency regulations; anduuRules, standards, and guidelines speciﬁc to the application area.

302 Part 1 – Guide8.3.1.7 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Control Quality process include but are not limited to:uuQuality standards and policies;uuQuality templates, for example, check sheets, checklists, etc. and;uuIssue and defect reporting procedures and communication policies.8.3.2 CONTROL QUALITY: TOOLS AND TECHNIQUES8.3.2.1 DATA GATHERINGData-gathering techniques that can be used for this process include but are not limited to:uuChecklists. Described in Section 11.2.2.2. Checklists help in managing the control quality activities in a structured manner.uuCheck sheets. Check sheets are also known as tally sheets and are used to organize facts in a manner that will facilitate the effective collection of useful data about a potential quality problem. They are especially useful for gathering attributes data while performing inspections to identify defects; for example, data about the frequencies or consequences of defects collected. See Figure 8-12.Figure 8-12. Check SheetsDefects/Date Date 1 Date 2 Date 3 Date 4 TotalSmall scratchLarge scratchBentMissing componentWrong colorLabeling error103521213002201211202132719866

303uuStatistical sampling. Statistical sampling involves choosing part of a population of interest for inspection (for example, selecting 10 engineering drawings at random from a list of 75). The sample is taken to measure controls and verify quality. Sample frequency and sizes should be determined during the Plan Quality Management process.uuQuestionnaires and Surveys. Surveys may be used to gather data about customer satisfaction after the deployment of the product or service. The cost regarding defects identiﬁed in the surveys may be considered external failure costs in the COQ model and can have extensive cost implications for the organization.8.3.2.2 DATA ANALYSISData analysis techniques that can be used for this process include but are not limited to:uuPerformance reviews. Performance reviews measure, compare, and analyze the quality metrics deﬁned by the Plan Quality Management process against the actual results.uuRoot cause analysis (RCA). Described in Section 8.2.2.2. Root cause analysis is used to identify the source of defects.8.3.2.3 INSPECTIONAn inspection is the examination of a work product to determine if it conforms to documented standards. The results of inspections generally include measurements and may be conducted at any level. The results of a single activity can be inspected, or the ﬁnal product of the project can be inspected. Inspections may be called reviews, peer reviews, audits, or walkthroughs. In some application areas, these terms have narrow and speciﬁc meanings. Inspections also are used to verify defect repairs.8.3.2.4 TESTING/PRODUCT EVALUATIONSTesting is an organized and constructed investigation conducted to provide objective information about the quality of the product or service under test in accordance with the project requirements. The intent of testing is to ﬁnd errors, defects, bugs, or other nonconformance problems in the product or service. The type, amount, and extent of tests needed to evaluate each requirement are part of the project quality plan and depend on the nature of the project, time, budget, and other constraints. Tests can be performed throughout the project, as different components of the project become available, and at the end of the project on the ﬁnal deliverables. Early testing helps identify nonconformance problems and helps reduce the cost of ﬁxing the nonconforming components.

304 Part 1 – GuideDifferent application areas require different tests. For example, software testing may include unit testing, integration testing, black-box, white-box, interface testing, regression testing, Alpha testing, etc. In construction projects, testing may include cement strength, concrete workability test, nondestructive tests at construction sites for testing the quality of hardened concrete structures, and soil tests. In hardware development, testing may include environmental stress screening, burn-in tests, system testing, and more.8.3.2.5 DATA REPRESENTATIONData representation techniques that can be used for this process include but are not limited to:uuCause-and-effect diagrams. Described in Section 8.2.2.4. Cause-and-effect diagrams are used to identify the possible effects of quality defects and errors.uuControl charts. Control charts are used to determine whether or not a process is stable or has predictable performance. Upper and lower speciﬁcation limits are based on the requirements and reﬂect the maximum and minimum values allowed. Upper and lower control limits are different from speciﬁcation limits. The control limits are determined using standard statistical calculations and principles to ultimately establish the natural capability for a stable process. The project manager and appropriate stakeholders may use the statistically calculated control limits to identify the points at which corrective action will be taken to prevent performance that remains outside the control limits. Control charts can be used to monitor various types of output variables. Although used most frequently to track repetitive activities required for producing manufactured lots, control charts may also be used to monitor cost and schedule variances, volume, frequency of scope changes, or other management results to help determine if the project management processes are in control.uuHistograms. Described in Section 8.2.2.4. Histograms can demonstrate the number of defects by source or by component.uuScatter diagrams. Described in Section 8.2.2.4. Scatter diagrams can show the planned performance on one axis and the actual performance on the second axis.

3058.3.2.6 MEETINGSThe following meetings may be used as part of the Control Quality process:uuApproved change requests review. All approved change requests should be reviewed to verify that they were implemented as approved. This review should also check that partial changes are completed and all parts have been properly implemented, tested, completed, and certiﬁed.uuRetrospectives/lesson learned. A meeting held by a project team to discuss:unSuccessful elements in the project/phase,unWhat could be improved,unWhat to incorporate in the ongoing project and what in future projects, andunWhat to add to the organization process assets.8.3.3 CONTROL QUALITY: OUTPUTS8.3.3.1 QUALITY CONTROL MEASUREMENTSQuality control measurements are the documented results of Control Quality activities. They should be captured in the format that was speciﬁed in the quality management plan.8.3.3.2 VERIFIED DELIVERABLESA goal of the Control Quality process is to determine the correctness of deliverables. The results of performing the Control Quality process are veriﬁed deliverables that become an input to the Validate Scope process (Section 5.5) for formalized acceptance. If there were any change requests or improvements related to the deliverables, they may be changed, inspected, and reveriﬁed.8.3.3.3 WORK PERFORMANCE INFORMATIONDescribed in Section 4.5.1.3. Work performance information includes information on project requirements fulﬁllment, causes for rejections, rework required, recommendations for corrective actions, lists of veriﬁed deliverables, status of the quality metrics, and the need for process adjustments.

306 Part 1 – Guide8.3.3.4 CHANGE REQUESTSDescribed in Section 4.3.3.4. If changes occur during the Control Quality process that may impact any of the components of the project management plan or project documents, the project manager should submit a change request. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).8.3.3.5 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to the quality management plan, as described in Section 8.1.3.1.8.3.3.6 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. Many times a deliverable that does not meet the quality requirements is documented as an issue.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on the source of quality defects and how they could have been avoided as well as approaches that worked well.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.uuTest and evaluation documents. Described in Section 8.2.3.2. Test and evaluation documents may be modiﬁed as a result of this process in order to make future tests more effective.

��3079PROJECT RESOURCE MANAGEMENTProject Resource Management includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project. These processes help ensure that the right resources will be available to the project manager and project team at the right time and place.The Project Resource Management processes are:9.1 Plan Resource Management—The process of deﬁning how to estimate, acquire, manage, and utilize physical and team resources.9.2 Estimate Activity Resources—The process of estimating team resources and the type and quantities of material, equipment, and supplies necessary to perform project work.9.3 Acquire Resources—The process of obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work.9.4 Develop Team—The process of improving competencies, team member interaction, and the overall team environment to enhance project performance.9.5 Manage Team—The process of tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance.9.6 Control Resources—The process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual use of resources, and performing corrective action as necessary.Figure 9-1 provides an overview of the Project Resource Management processes. The Project Resource Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

308 Part 1 – Guide.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data representation .3 Organizational theory .4 Meetings.3 Outputs .1 Resource management plan .2 Team charter .3 Project documents updates.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Bottom-up estimating .3 Analogous estimating .4 Parametric estimating .5 Data analysis .6 Project management information system .7 Meetings.3 Outputs .1 Resource requirements .2 Basis of estimates .3 Resource breakdown structure .4 Project documents updates1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Decision making .2 Interpersonal and team skills .3 Pre-assignment .4 Virtual teams.3 Outputs .1 Physical resource assignments .2 Project team assignments .3 Resource calendars .4 Change requests .5 Project management plan updates .6 Project documents updates .7 Enterprise environmental factors updates .8 Organizational process assets updates .1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Colocation .2 Virtual teams .3 Communication technology .4 Interpersonal and team skills .5 Recognition and rewards .6 Training .7 Individual and team assessments .8 Meetings.3 Outputs .1 Team performance assessments .2 Change requests .3 Project management plan updates .4 Project documents updates .5 Enterprise environmental factors updates .6 Organizational process assets updates1 Inputs .1 Project management plan .2 Project documents .3 Work performance reports .4 Team performance assessments .5 Enterprise environmental factors .6 Organizational process assets.2 Tools & Techniques .1 Interpersonal and team skills .2 Project management information system.3 Outputs .1 Change requests .2 Project management plan updates .3 Project documents updates .4 Enterprise environmental factors updates.1 Inputs .1 Project management plan .2 Project documents .3 Work performance data .4 Agreements .5 Organizational process assets.2 Tools & Techniques .1 Data analysis .2 Problem solving .3 Interpersonal and team skills .4 Project management information system .3 Outputs .1 Work performance information .2 Change requests .3 Project management plan updates .4 Project documents updates Project ResourceManagement Overview9.2 EstimateActivity Resources9.1 Plan ResourceManagement9.3 Acquire Resources9.4 Develop Team 9.5 Manage Team9.6 Control Resources Figure 9-1. Project Resource Management Overview

309There is a distinction between the skills and competencies needed for the project manager to manage team resources versus physical resources. Physical resources include equipment, materials, facilities, and infrastructure. Team resources or personnel refer to the human resources. Personnel may have varied skill sets, may be assigned full- or part-time, and may be added or removed from the project team as the project progresses. There is some overlap between Project Resource Management and Project Stakeholder Management (Section 13). This section (Section 9) focuses on the subset of stakeholders who make up the project team.KEY CONCEPTS FOR PROJECT RESOURCE MANAGEMENTThe project team consists of individuals with assigned roles and responsibilities who work collectively to achieve a shared project goal. The project manager should invest suitable effort in acquiring, managing, motivating, and empowering the project team. Although speciﬁc roles and responsibilities for the project team members are assigned, the involvement of all team members in project planning and decision making is beneﬁcial. Participation of team members during planning adds their expertise to the process and strengthens their commitment to the project.The project manager should be both leader and manager of the project team. In addition to project management activities such as initiating, planning, executing, monitoring and controlling, and closing the various project phases, the project manager is responsible for the team formation as an effective group. The project manager should be aware of different aspects that inﬂuence the team, such as:uuTeam environment,uuGeographical locations of team members,uuCommunications among stakeholders,uuOrganizational change management,uuInternal and external politics,uuCultural issues and organizational uniqueness, anduuOther factors that may alter project performance.As a leader, the project manager is also responsible for proactively developing team skills and competencies while retaining and improving team satisfaction and motivation. The project manager should be aware of, and subscribe to, professional and ethical behavior, and ensure that all team members adhere to these behaviors.

310 Part 1 – GuidePhysical resource management is concentrated in allocating and using the physical resources (material, equipment, and supplies, for example) needed for successful completion of the project in an efﬁcient and effective way. In order to do that, organizations should have data on resource demands (now and in the reasonable future), resource conﬁgurations that will be required to meet those demands, and the supply of resources. Failing to manage and control resources efﬁciently is a source of risk for successful project completion. For example:uuFailing to secure critical equipment or infrastructure on time may result in delays in the manufacturing of the ﬁnal product,uuOrdering low-quality material may damage the quality of the product causing a high rate of recalls or rework, anduuKeeping too much inventory may result in high operations costs and reduce the organization’s proﬁt. Unacceptably low inventory level, on the other hand, may result in not satisfying customer demand and, again, reduce the organization’s proﬁt.TRENDS AND EMERGING PRACTICES IN PROJECT RESOURCE MANAGEMENTProject management styles are shifting away from a command and control structure for managing projects and toward a more collaborative and supportive management approach that empowers teams by delegating decision making to the team members. In addition, modern project resource management approaches seek to optimize resource utilization. Trends and emerging practices for Project Resource Management include but are not limited to:uuResource management methods. Due to the scarce nature of critical resources, in some industries, several trends have become popular in the past several years. There is extensive literature about lean management, just-in-time (JIT) manufacturing, Kaizen, total productive maintenance (TPM), theory of constraints (TOC), and other methods. A project manager should determine if the performing organization has adopted one or more resource management tools and adapt the project accordingly.uuEmotional intelligence (EI). The project manager should invest in personal EI by improving inbound (e.g., self-management and self-awareness) and outbound (e.g., relationship management) competencies. Research suggests that project teams that succeed in developing team EI or become an emotionally competent group are more effective. Additionally, there is a reduction in staff turnover.uuSelf-organizing teams. The increase in using agile approaches mainly for the execution of IT projects has given rise to the self-organizing team, where the team functions with an absence of centralized control. In projects that have self-organizing teams, the project manager (who may not be called a project manager) role provides the team with the environment and support needed and trusts the team to get the job done. Successful self-organizing teams usually consist of generalized specialists, instead of subject matter experts, who continuously adapt to the changing environment and embrace constructive feedback.

311uuVirtual teams/distributed teams. The globalization of projects has promoted the need for virtual teams that work on the same project, but are not colocated at the same site. The availability of communication technology such as email, audio conferencing, social media, web-based meetings, and video conferencing has made virtual teams feasible. Managing virtual teams has unique advantages, such as being able to use special expertise on a project team even when the expert is not in the same geographic area, incorporating employees who work from home ofﬁces, and including people with mobility limitations or disabilities. The challenges of managing virtual teams are mainly in the communication domain, including a possible feeling of isolation, gaps in sharing knowledge and experience between team members, and difﬁculties in tracking progress and productivity, possible time zone difference and cultural differences.TAILORING CONSIDERATIONSBecause each project is unique, the project manager will need to tailor the way Project Resource Management processes are applied. Considerations for tailoring include but are not limited to:uuDiversity. What is the diversity background of the team?uuPhysical location. What is the physical location of team members and physical resources?uuIndustry-specific resources. What special resources are needed in the industry?uuAcquisition of team members. How will team members be acquired for the project? Are team resources full-time or part-time on the project?uuManagement of team. How is team development managed for the project? Are there organizational tools to manage team development or will new ones need to be established? Are there team members who have special needs? Will the team need special training to manage diversity?uuLife cycle approaches. What life cycle approach will be used on the project?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSProjects with high variability beneﬁt from team structures that maximize focus and collaboration, such as self-organizing teams with generalizing specialists.Collaboration is intended to boost productivity and facilitate innovative problem solving. Collaborative teams may facilitate accelerated integration of distinct work activities, improve communication, increase knowledge sharing, and provide ﬂexibility of work assignments in addition to other advantages.

312 Part 1 – GuideAlthough the beneﬁts of collaboration also apply to other project environments, collaborative teams are often critical to the success of projects with a high degree of variability and rapid changes, because there is less time for centralized tasking and decision making.Planning for physical and human resources is much less predictable in projects with high variability. In these environments, agreements for fast supply and lean methods are critical to controlling costs and achieving the schedule.9.1 PLAN RESOURCE MANAGEMENTPlan Resource Management is the process of deﬁning how to estimate, acquire, manage, and use team and physical resources. The key beneﬁt of this process is that it establishes the approach and level of management effort needed for managing project resources based on the type and complexity of the project. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-2. Figure 9-3 depicts the data ﬂow diagram for the process.Figure 9-2. Plan Resource Management: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsPlan Resource Management.1 Expert judgment.2 Data representation• Hierarchical charts• Responsibility assignment matrix• Text-oriented formats.3 Organizational theory.4 Meetings.1 Project charter.2 Project management plan• Quality management plan• Scope baseline.3 Project documents• Project schedule• Requirements documentation• Risk register• Stakeholder register.4 Enterprise environmental factors.5 Organizational process assets.1 Resource management plan.2 Team charter.3 Project documents updates• Assumption log• Risk register

��313• Project charter4.1DevelopProjectCharterProject management plan• Quality management plan• Scope baselineProject documents• Project schedule• Requirements documentation• Risk register• Stakeholder register• Project charterProjectManagementPlanProjectDocumentsProjectDocuments9.1Plan ResourceManagementEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Resource management plan• Team charterProject documents updates• Assumption log• Risk registerProjectManagementPlanFigure 9-3. Plan Resource Management: Data Flow DiagramResource planning is used to determine and identify an approach to ensure that sufﬁcient resources are available for the successful completion of the project. Project resources may include team members, supplies, materials, equipment, services and facilities. Effective resource planning should consider and plan for the availability of, or competition for, scarce resources.Those resources can be obtained from the organization’s internal assets or from outside the organization through a procurement process. Other projects may be competing for the same resources required for the project at the same time and location. This may signiﬁcantly impact project costs, schedules, risks, quality, and other project areas.

314 Part 1 – Guide9.1.1 PLAN RESOURCE MANAGEMENT: INPUTS9.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter provides the high-level project description and requirements. It also has the key stakeholder list, summary milestones, and preapproved ﬁnancial resources that may inﬂuence the resource management of the project.9.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuQuality management plan. Described in Section 8.1.3.1. The quality management plan helps deﬁne the level of resources that will be required to achieve and maintain the deﬁned level of quality and achieve the metrics for the project.uuScope baseline. Described in Section 5.4.3.1. The scope baseline identiﬁes the deliverables that drive the types and quantities of resources that will need to be managed.9.1.1.3 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuProject schedule. Described in Section 6.5.3.2. The project schedule shows the timeline for needed resources.uuRequirements documentation. Described in Section 5.2.3.1. Requirements will dictate the type and amount of resources needed for the project and may inﬂuence how they are managed.uuRisk register. Described in Section 11.2.3.1. The risk register contains information on threats and opportunities that may impact resource planning.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register aids in identifying those stakeholders who have a particular interest in or an impact on resources needed for the project. It also helps to identify stakeholders who can inﬂuence the use of one kind of resource over another.

3159.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Resource Management include but are not limited to:uuOrganizational culture and structure,uuGeographic distribution of facilities and resources,uuExisting resources competencies and availability, anduuMarketplace conditions.9.1.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Resource Management include but are not limited to:uuHuman resource policies and procedures,uuPhysical resource management policies and procedures,uuSafety policies,uuSecurity policies,uuTemplates for the resource management plan, anduuHistorical information for similar projects.9.1.2 PLAN RESOURCE MANAGEMENT: TOOLS AND TECHNIQUES9.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuNegotiating for the best resources within the organization;uuTalent management and personnel development;uuDetermining the preliminary effort level needed to meet project objectives;uuDetermining reporting requirements based on the organizational culture;uuEstimating lead times required for acquisition, based on lessons learned and market conditions;uuIdentifying risks associated with resource acquisition, retention, and release plans;uuComplying with applicable government and union regulations; anduuManaging sellers and the logistics effort to ensure materials and supplies are available when needed.

316 Part 1 – Guide9.1.2.2 DATA REPRESENTATIONData representation techniques that can be used for this process include but are not limited to charts. Various formats exist to document and communicate team member roles and responsibilities. Most fall into hierarchical, matrix, or text-oriented formats. Some project assignments are listed in subsidiary plans, such as the risk, quality, or communications management plans. Regardless of the method used to document team member roles, the objective is to ensure that each work package has an unambiguous owner and that all team members have a clear understanding of their roles and responsibilities. A hierarchical format may be used to represent high-level roles, while a text-based format may be better suited to document the detailed responsibilities.uuHierarchical charts. The traditional organizational chart structure can be used to show positions and relationships in a graphical, top-down format.unWork breakdown structures (WBS). The WBS is designed to show how project deliverables are broken down into work packages and provide a way of showing high-level areas of responsibility.unOrganizational breakdown structure (OBS). While the WBS shows a breakdown of project deliverables, an OBS is arranged according to an organization’s existing departments, units, or teams, with the project activities or work packages listed under each department. An operational department, such as information technology or purchasing, can see all of its project responsibilities by looking at its portion of the OBS.unResource breakdown structure. The resource breakdown structure is a hierarchical list of team and physical resources related by category and resource type that is used for planning, managing and controlling project work. Each descending (lower) level represents an increasingly detailed description of the resource until the information is small enough to be used in conjunction with the work breakdown structure (WBS) to allow the work to be planned, monitored, and controlled.

317uuAssignment Matrix. A RAM shows the project resources assigned to each work package. It is used to illustrate the connections between work packages, or activities, and project team members. On larger projects, RAMs can be developed at various levels. For example, a high-level RAM can deﬁne the responsibilities of a project team, group, or unit within each component of the WBS. Lower-level RAMs are used within the group to designate roles, responsibilities, and levels of authority for speciﬁc activities. The matrix format shows all activities associated with one person and all people associated with one activity. This also ensures that there is only one person accountable for any one task to avoid confusion about who is ultimately in charge or has authority for the work. One example of a RAM is a RACI (responsible, accountable, consult, and inform) chart, shown in Figure 9-4. The sample chart shows the work to be done in the left column as activities. The assigned resources can be shown as individuals or groups. The project manager can select other options, such as “lead” and “resource” designations, as appropriate for the project. A RACI chart is a useful tool to use to ensure clear assignment of roles and responsibilities when the team consists of internal and external resources.uuText-oriented formats. Team member responsibilities that require detailed descriptions can be speciﬁed in text-oriented formats. Usually in outline form, these documents provide information such as responsibilities, authority, competencies, and qualiﬁcations. The documents are known by various names including position descriptions and role-responsibility-authority forms. These documents can be used as templates for future projects, especially when the information is updated throughout the current project by applying lessons learned.Figure 9-4. Sample RACI ChartRACI ChartPersonActivityCreate charterCollectrequirementsSubmit changerequestDevelop test planAnnBenCarlosDinaEdAIRR = Responsible A = Accountable C = Consult I = InformCCCAAAIIIIICRRRIR

318 Part 1 – Guide9.1.2.3 ORGANIZATIONAL THEORYOrganizational theory provides information regarding the way in which people, teams, and organizational units behave. Effective use of common techniques identiﬁed in organizational theory can shorten the amount of time, cost, and effort needed to create the Plan Resource Management process outputs and improve planning efﬁciency. Applicable organizational theories may recommend exercising a ﬂexible leadership style that adapts to the changes in a team’s maturity level throughout the project life cycle. It is important to recognize that the organization’s structure and culture impacts the project organizational structure.9.1.2.4 MEETINGSThe project team may hold meetings to plan resource management for the project.9.1.3 PLAN RESOURCE MANAGEMENT: OUTPUTS9.1.3.1 RESOURCE MANAGEMENT PLANThe resource management plan is the component of the project management plan that provides guidance on how project resources should be categorized, allocated, managed, and released. It may be divided between the team management plan and physical resource management plan according to the speciﬁcs of the project. The resource management plan may include but is not limited to:uuIdentification of resources. Methods for identifying and quantifying team and physical resources needed.uuAcquiring resources. Guidance on how to acquire team and physical resources for the project.uuRoles and responsibilities:unRole. The function assumed by, or assigned to, a person in the project. Examples of project roles are civil engineer, business analyst, and testing coordinator.unAuthority. The rights to apply project resources, make decisions, sign approvals, accept deliverables, and inﬂuence others to carry out the work of the project. Examples of decisions that need clear authority include the selection of a method for completing an activity, quality acceptance criteria, and how to respond to project variances. Team members operate best when their individual levels of authority match their individual responsibilities.

��319unResponsibility. The assigned duties and work that a project team member is expected to perform in order to complete the project’s activities.unCompetence. The skill and capacity required to complete assigned activities within the project constraints. If project team members do not possess required competencies, performance can be jeopardized. When such mismatches are identiﬁed, proactive responses such as training, hiring, schedule changes, or scope changes are initiated.uuProject organization charts. A project organization chart is a graphic display of project team members and their reporting relationships. It can be formal or informal, highly detailed or broadly framed, based on the needs of the project. For example, the project organization chart for a 3,000-person disaster response team will have greater detail than a project organization chart for an internal, 20-person project.uuProject team resource management. Guidance on how project team resources should be deﬁned, staffed, managed, and eventually released.uuTraining. Training strategies for team members.uuTeam development. Methods for developing the project team.uuResource control. Methods for ensuring adequate physical resources are available as needed and that the acquisition of physical resources is optimized for project needs. Includes information on managing inventory, equipment, and supplies during throughout the project life cycle.uuRecognition plan. Which recognition and rewards will be given to team members, and when they will be given.9.1.3.2 TEAM CHARTERThe team charter is a document that establishes the team values, agreements, and operating guidelines for the team. The team charter may include but is not limited to:uuTeam values,uuCommunication guidelines,uuDecision-making criteria and process,uuConﬂict resolution process,uuMeeting guidelines, anduuTeam agreements.

320 Part 1 – GuideThe team charter establishes clear expectations regarding acceptable behavior by project team members. Early commitment to clear guidelines decreases misunderstandings and increases productivity. Discussing areas such as codes of conduct, communication, decision making, and meeting etiquette allows team members to discover values that are important to one another. The team charter works best when the team develops it, or at least has an opportunity to contribute to it. All project team members share responsibility for ensuring the rules documented in the team charter are followed. The team charter can be reviewed and updated periodically to ensure a continued understanding of the team ground rules and to orient and integrate new team members.9.1.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log is updated with assumptions regarding the availability, logistics requirements, and location of physical resources as well as the skill sets and availability of team resources.uuRisk register. Described in Section 11.2.3.1. The risk register is updated with risks associated with team and physical resource availability or other known resource-related risks.9.2 ESTIMATE ACTIVITY RESOURCESEstimate Activity Resources is the process of estimating team resources and the type and quantities of materials, equipment, and supplies necessary to perform project work. The key beneﬁt of this process is that it identiﬁes the type, quantity, and characteristics of resources required to complete the project. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure 9-5. Figure 9-6 depicts the data ﬂow diagram of the process.

��321Figure 9-5. Estimate Activity Resources: Inputs, Tools & Techniques, and OutputsFigure 9-6. Estimate Activity Resources: Data Flow DiagramTools & TechniquesInputsOutputsEstimate Activity Resources.1 Expert judgment.2 Bottom-up estimating.3 Analogous estimating.4 Parametric estimating.5 Data analysis• Alternatives analysis.6 Project management information system.7 Meetings.1 Project management plan• Resource management plan• Scope baseline.2 Project documents• Activity attributes• Activity list• Assumption log• Cost estimates• Resource calendars• Risk register.3 Enterprise environmental factors.4 Organizational process assets.1 Resource requirements.2 Basis of estimates.3 Resource breakdown structure.4 Project documents updates• Activity attributes• Assumption log• Lessons learned register• Project charter9.2Estimate ActivityResourcesEnterprise/Organization• Resource requirements• Basis of estimates• Resource breakdownstructureProject management plan• Resource management plan• Scope baselineProject documents• Activity attributes• Activity list• Assumption log• Cost estimates• Resource calendars• Risk register• Enterprise environmental factors• Organizational process assetsProjectDocumentsProjectManagementPlanProjectDocumentsProject document updates• Activity attributes• Assumption log• Lessons learned register

322 Part 1 – GuideThe Estimate Activity Resources process is closely coordinated with other processes, such as the Estimate Costs process. For example:uuA construction project team will need to be familiar with local building codes. Such knowledge is often readily available from local sellers. If the internal labor pool lacks experience with unusual or specialized construction techniques, the additional cost for a consultant may be the most effective way to secure knowledge of the local building codes.uuAn automotive design team will need to be familiar with the latest automated assembly techniques. The requisite knowledge could be obtained by hiring a consultant, by sending a designer to a seminar on robotics, or by including someone from manufacturing as a member of the project team.9.2.1 ESTIMATE ACTIVITY RESOURCES: INPUTS9.2.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan deﬁnes the approach to identify the different resources needed for the project. It also deﬁnes the methods to quantify the resources needed for each activity and aggregates this information.uuScope baseline. Described in Section 5.4.3.1. The scope baseline identiﬁes the project and product scope necessary to meet the project objectives. The scope drives the needs for both team and physical resources.9.2.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. Activity attributes provide the primary data source for use in estimating team and physical resources required for each activity on the activity list. Examples of attributes include the resource requirements, imposed dates, activity location, assumptions, and constraints.uuActivity list. Described in Section 6.2.3.1. The activity list identiﬁes the activities that will need resources.

323uuAssumption log. Described in Section 4.1.3.2. The assumption log may have information on productivity factors, availability, cost estimates, and approaches to work that will inﬂuence the nature and number of team and physical resources.uuCost estimates. Described in Section 7.2.3.1. The cost of resources may impact resource selection from the quantity and skill level perspectives.uuResource calendars. A resource calendar identiﬁes the working days, shifts, start and end of normal business hours, weekends, and public holidays when each speciﬁc resource is available. Information on which resources (such as team resource, equipment, and material) are potentially available during a planned activity period is used for estimating resource utilization. Resource calendars also specify when, and for how long, identiﬁed team and physical resources will be available during the project. This information may be at the activity or project level. This includes consideration of attributes such as resource experience and/or skill level, as well as various geographical locations.uuRisk register. Described in Section 11.2.3.1. The risk register describes the individual risks that can impact resource selection and availability.9.2.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Estimate Activity Resources process include but are not limited to:uuResource location,uuResource availability,uuTeam resource skills,uuOrganizational culture,uuPublished estimating data, anduuMarketplace conditions.

324 Part 1 – Guide9.2.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Estimate Activity Resources process include but are not limited to:uuPolicies and procedures regarding stafﬁng,uuPolicies and procedures relating to supplies and equipment, anduuHistorical information regarding types of resources used for similar work on previous projects.9.2.2 ESTIMATE ACTIVITY RESOURCES: TOOLS AND TECHNIQUES9.2.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in team and physical resource planning and estimating.9.2.2.2 BOTTOM-UP ESTIMATINGDescribed in Section 6.4.2.5. Team and physical resources are estimated at the activity level and then aggregated to develop the estimates for work packages, control accounts, and summary project levels.9.2.2.3 ANALOGOUS ESTIMATINGDescribed in Section 6.4.2.2. Analogous estimating uses information regarding resources from a previous similar project as the basis for estimating a future project. It is used as quick estimating method and can be used when the project manager can only identify a few top levels of the WBS.9.2.2.4 PARAMETRIC ESTIMATINGDescribed in Section 6.4.2.3. Parametric estimating uses an algorithm or a statistical relationship between historical data and other variables to calculate resource quantities needed for an activity, based on historical data and project parameters. For example, if an activity needs 4,000 hours of coding and it needs to ﬁnish it in 1 year, it will require two people to code (each doing 2,000 hours a year). This technique can produce higher levels of accuracy depending on the sophistication and underlying data built into the model.

3259.2.2.5 DATA ANALYSISA data analysis technique used in this process includes but is not limited to alternatives analysis. Alternatives analysis is used to evaluate identiﬁed options in order to select the options or approaches to use to execute and perform the work of the project. Many activities have multiple options for accomplishment. They include using various levels of resource capability or skills, different sizes or types of machines, different tools (manual versus automated), and make-rent-or-buy decisions regarding the resources. Alternatives analysis assists in providing the best solution to perform the project activities, within the deﬁned constraints.9.2.2.6 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems can include resource management software that can help plan, organize, and manage resource pools and develop resource estimates. Depending on the sophistication of the software, resource breakdown structures, resource availability, resource rates, and various resource calendars can be deﬁned to assist in optimizing resource utilization.9.2.2.7 MEETINGSThe project manager may hold planning meetings with functional managers to estimate the resources needed per activity, level of effort (LoE), skill level of the team resources, and the quantity of the materials needed. Participants at these meetings may include the project manager, the project sponsor, selected project team members, selected stakeholders, and others as needed.9.2.3 ESTIMATE ACTIVITY RESOURCES: OUTPUTS9.2.3.1 RESOURCE REQUIREMENTSResource requirements identify the types and quantities of resources required for each work package or activity in a work package and can be aggregated to determine the estimated resources for each work package, each WBS branch, and the project as a whole. The amount of detail and the level of speciﬁcity of the resource requirement descriptions can vary by application area. The resource requirements’ documentation can include assumptions that were made in determining which types of resources are applied, their availability, and what quantities are needed.

326 Part 1 – Guide9.2.3.2 BASIS OF ESTIMATESDescribed in Section 6.4.3.2. The amount and type of additional details supporting the resource estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the resource estimate was derived.Supporting detail for resource estimates may include:uuMethod used to develop the estimate,uuResources used to develop the estimate (such as information from previous similar projects),uuAssumptions associated with the estimate,uuKnown constraints,uuRange of estimates,uuConﬁdence level of the estimate, anduuDocumentation of identiﬁed risks inﬂuencing the estimate.9.2.3.3 RESOURCE BREAKDOWN STRUCTUREThe resource breakdown structure is a hierarchical representation of resources by category and type (see Figure 9-7 for example). Examples of resource categories include but are not limited to labor, material, equipment, and supplies. Resource types may include the skill level, grade level, required certiﬁcations, or other information as appropriate to the project. In Plan Resource Management, the resource breakdown structure was used to guide the categorization for the project. In this process it is a completed document that will be used to acquire and monitor resources.

��327Figure 9-7. Sample Resource Breakdown Structure9.2.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuActivity attributes. Described in Section 6.2.3.2. The activity attributes are updated with the resource requirements.uuAssumption log. Described in Section 4.1.3.2. The assumption log is updated with assumptions regarding the types and quantities of resources required. Additionally, any resource constraints are entered including collective bargaining agreements, continuous hours of operation, planned leave, etc.uuLessons learned register. Described in Section 11.2.3.1. The lessons learned register can be updated with techniques that were efﬁcient and effective in developing resource estimates, and information on those techniques that were not efﬁcient or effective.ProjectRole1Role2PersonnelMaterialEquipmentRole3Material1Material2Level1Level2Grade2Equipment1Equipment2

328 Part 1 – Guide9.3 ACQUIRE RESOURCESAcquire Resources is the process of obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work. The key beneﬁt of this process is that it outlines and guides the selection of resources and assigns them to their respective activities. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-8. Figure 9-9 depicts the data ﬂow diagram for the process.Figure 9-8. Acquire Resources: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsAcquire Resources.1 Decision making• Multicriteria decision analysis.2 Interpersonal and team skills• Negotiation.3 Pre-assignment.4 Virtual teams.1 Project management plan• Resource management plan• Procurement management plan• Cost baseline.2 Project documents• Project schedule• Resource calendars• Resource requirements• Stakeholder register.3 Enterprise environmental factors.4 Organizational process assets.1 Physical resource assignments.2 Project team assignments.3 Resource calendars.4 Change requests.5 Project management plan updates• Resource management plan• Cost baseline.6 Project documents updates• Lessons learned register• Project schedule• Resource breakdown structure• Resource requirements• Risk register• Stakeholder register.7 Enterprise environmental factors updates.8 Organizational process assets updates

��329Enterprise/Organization• Project charter4.6PerformIntegratedChange ControlProject management plan• Resource management plan• Procurement management plan• Cost baselineProject documents• Project schedule• Resource calendars• Resource requirements• Stakeholder registerProjectManagementPlanProjectDocumentsProjectDocuments9.3AcquireResourcesEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Change requestsProject management plan updates• Resource management plan• Cost baselineProject documents updates• Lessons learned register• Project schedule• Resource breakdown structure• Resource requirements• Risk register• Stakeholder register• Physical resource assignments• Project team assignments• Resource calendarsProjectManagementPlan• Enterprise environmental factors updates• Organizational process assets updatesFigure 9-9. Acquire Resources: Data Flow DiagramThe resources needed for the project can be internal or external to the project-performing organization. Internal resources are acquired (assigned) from functional or resource managers. External resources are acquired through the procurement processes.The project management team may or may not have direct control over resource selection because of collective bargaining agreements, use of subcontractor personnel, a matrix project environment, internal or external reporting relationships, or other reasons. It is important that the following factors are considered during the process of acquiring the project resources:

330 Part 1 – GuideuuThe project manager or project team should effectively negotiate and inﬂuence others who are in a position to provide the required team and physical resources for the project.uuFailure to acquire the necessary resources for the project may affect project schedules, budgets, customer satisfaction, quality, and risks. Insufﬁcient resources or capabilities decrease the probability of success and, in a worst-case scenario, could result in project cancellation.uuIf the team resources are not available due to constraints such as economic factors or assignment to other projects, the project manager or project team may be required to assign alternative resources, perhaps with different competencies or costs. Alternative resources are allowed provided there is no violation of legal, regulatory, mandatory, or other speciﬁc criteria.These factors should be considered and accounted for in the planning stages of the project. The project manager or project management team will be required to document the impact of the unavailability of required resources in the project schedule, project budget, project risks, project quality, training plans, and other project management plans.9.3.1 ACQUIRE RESOURCES: INPUTS9.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan provides guidance on how to acquire resources for the project.uuProcurement management plan. Described in Section 12.1.3.1. The procurement management plan has information regarding resources that will be acquired from outside the project. This includes information on how procurements will be integrated with other project work and stakeholders involved in procuring resources.uuCost baseline. Described in Section 7.3.3.1. The cost baseline provides the overall budget for the project activities.

��3319.3.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuProject schedule. Described in Section 6.5.3.2. The project schedule shows the activities and their planned start and end dates to help determine when the resources need to be available and acquired.uuResource calendars. Described in Section 9.3.3.3. Resource calendars document the time periods that each resource needed for the project is available for the project. Creating a reliable schedule depends on having a good understanding of each resource’s availability and schedule constraints, including time zones, work hours, vacation time, local holidays, maintenance schedule and commitments to other projects. Resource calendars are progressively elaborated and updated throughout the project. Once created as an output of this process, they are used as needed whenever this process is repeated.uuResource requirements. Described in Section 9.2.3.1. Resource requirements identify which resources need to be acquired.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register may reveal stakeholders’ needs or expectations for speciﬁc resources to be used on the project that need to be considered in the Acquire Resources process.9.3.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Acquire Resources process include but are not limited to:uuExisting information on organizational resources including availability, competence levels, and prior experience for team resources and resource costs;uuMarketplace conditions;uuOrganizational structure; anduuGeographic locations.9.3.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Acquire Resources process include but are not limited to:uuPolicies and procedures for acquiring, allocating, and assigning resources to the project; anduuHistorical information and lessons learned repository.

332 Part 1 – Guide9.3.2 ACQUIRE RESOURCES: TOOLS AND TECHNIQUES9.3.2.1 DECISION MAKINGDescribed in Section 5.2.2.4. Decision-making techniques that can be used in the Acquire Resources process include but are not limited to multicriteria decision analysis, as described in Section 8.1.2.4. Selection criteria are often used to select physical project resources, or the project team. Using a multicriteria decision analysis tool, criteria are developed and used to rate or score potential resources (for example, choosing between internal and external team resources). The criteria are weighted according to their relative importance and values can be changed for different types of resources. Some examples of selection criteria that can be used are:uuAvailability. Verify that the resource is available to work on the project within the time period needed.uuCost. Verify if the cost of adding the resource is within the prescribed budget.uuAbility. Verify that the team member provides the capability needed by the project.Some selection criteria that are unique for team resources are:uuExperience. Verify that the team member has the relevant experience that will contribute to the project success.uuKnowledge. Consider if the team member has relevant knowledge of the customer, similar implemented projects, and nuances of the project environment.uuSkills. Determine if the team member has the relevant skills to use a project tool.uuAttitude. Determine if the team member has the ability to work with others as a cohesive team.uuInternational factors. Consider team member location, time zone, and communication capabilities.9.3.2.2 INTERPERSONAL AND TEAM SKILLSAn interpersonal and team skill that can be used for this process includes but is not limited to negotiation. Described in Section 12.2.2.5. Many projects need to negotiate for required resources. The project management team may need to negotiate with:uuFunctional managers. Ensure that the project receives the best resources possible in the required timeframe and until their responsibilities are complete.uuOther project management teams within the performing organization. Appropriately assign or share scarce or specialized resources.uuExternal organizations and suppliers. Provide appropriate, scarce, specialized, qualiﬁed, certiﬁed, or other speciﬁc team or physical resources. Special consideration should be given to external negotiating policies, practices, processes, guidelines, legal, and other such criteria.

333The project management team’s ability to inﬂuence others plays an important role in negotiating resource allocation, as does the politics of the organizations involved. For example, convincing a functional manager about the high visibility of the project may inﬂuence him or her to assign the best resources to this project over competing ones.9.3.2.3 PRE-ASSIGNMENTWhen physical or team resources for a project are determined in advance, they are considered pre-assigned. This situation can occur if the project is the result of speciﬁc resources being identiﬁed as part of a competitive proposal or if the project is dependent upon the expertise of particular persons. Pre-assignment might also include the team members who have already been assigned in Develop Project Charter Process or other processes before the initial Resource Management Plan has been completed.9.3.2.4 VIRTUAL TEAMSThe use of virtual teams creates new possibilities when acquiring project team members. Virtual teams can be deﬁned as groups of people with a shared goal who fulﬁll their roles with little or no time spent meeting face to face. The availability of communication technology such as email, audio conferencing, social media, web-based meetings, and video conferencing has made virtual teams feasible. The virtual team model makes it possible to:uuForm teams of people from the same organization who live in widespread geographic areas;uuAdd special expertise to a project team even though the expert is not in the same geographic area;uuIncorporate employees who work from home ofﬁces;uuForm teams of people who work different shifts, hours, or days;uuInclude people with mobility limitations or disabilities; uuMove forward with projects that would have been held or canceled due to travel expenses; anduuSave the expense of ofﬁces and all physical equipment needed for employees.Communication planning becomes increasingly important in a virtual team environment. Additional time may be needed to set clear expectations, facilitate communications, develop protocols for resolving conﬂict, include people in decision making, understand cultural differences, and share credit in successes.9.3.3 ACQUIRE RESOURCES: OUTPUTS9.3.3.1 PHYSICAL RESOURCE ASSIGNMENTSDocumentation of the physical resource assignments records the material, equipment, supplies, locations, and other physical resources that will be used during the project.

334 Part 1 – Guide9.3.3.2 PROJECT TEAM ASSIGNMENTSDocumentation of team assignments records the team members and their roles and responsibilities for the project. Documentation can include a project team directory and names inserted into the project management plan, such as the project organization charts and schedules.9.3.3.3 RESOURCE CALENDARSA resource calendar identiﬁes the working days, shifts, start and end of normal business hours, weekends, and public holidays when each speciﬁc resource is available. Information on which resources (such as team resource, equipment, and material) are potentially available during a planned activity period is used for estimating resource utilization. Resource calendars also specify when and for how long identiﬁed team and physical resources will be available during the project. This information may be at the activity or project level. This includes consideration of attributes such as resource experience and/or skill level, as well as various geographical locations.9.3.3.4 CHANGE REQUESTSDescribed in Section 4.3.3.4. When changes occur as a result of carrying out the Acquire Resources process (for example, impacts to the schedule) or when recommended corrective or preventive actions impact any of the components of the project management plan or project documents, the project manager needs to submit a change request. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).9.3.3.5 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components of the project management plan that may be updated as a result of carrying out this process include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan may be updated to reﬂect actual experience in acquiring resources for the project, including lessons learned in acquiring resources early in the project that will impact how resources are acquired later in the project.uuCost baseline. Described in Section 7.3.3.1. The cost baseline may change as a result of the acquisition of resources for the project.

3359.3.3.6 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well for acquiring resources.uuProject schedule. Described in Section 6.5.3.2. Changes to the project schedule may result from the availability of required resources.uuResource breakdown structure. Described in Section 9.2.3.3. Resources acquired during this process are recorded in the resource breakdown structure.uuResource requirements. Described in Section 9.2.3.1. Resource requirements documentation is updated to reﬂect resources acquired for the project.uuRisk register. Described in Section 11.2.3.1. New risks identiﬁed during this process are recorded in the risk register and managed using the risk management processes.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register is updated with any new stakeholders and any new information about existing stakeholders that has been gained as a result of this process.9.3.3.7 ENTERPRISE ENVIRONMENTAL FACTORS UPDATESEnterprise environmental factors that are updated include but are not limited to:uuResource availability within the organization, anduuAmount of the organization’s consumable resources that have been used.9.3.3.8 ORGANIZATIONAL PROCESS ASSETS UPDATESOrganizational process assets that are updated as a result of the Acquire Resources process include but are not limited to documentation related to acquiring, assigning and allocating resources.

336 Part 1 – Guide9.4 DEVELOP TEAMDevelop Team is the process of improving competencies, team member interaction, and the overall team environment to enhance project performance. The key beneﬁt of this process is that it results in improved teamwork, enhanced interpersonal skills and competencies, motivated employees, reduced attrition, and improved overall project performance. This process is performed throughout the project.The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-10. Figure 9-11 depicts the data ﬂow diagram for the process.Figure 9-10. Develop Team: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsDevelop Team.1 Colocation.2 Virtual teams.3 Communication technology.4 Interpersonal and team skills• Conflict management• Influencing• Motivation• Negotiation• Team building.5 Recognition and rewards.6 Training.7 Individual and team assessments.8 Meetings.1 Project management plan• Resource management plan.2 Project documents• Lessons learned register• Project schedule• Project team assignments• Resource calendars• Team charter.3 Enterprise environmental factors.4 Organizational process assets1. Team performance assessments.2 Change requests.3 Project management plan updates• Resource management plan.4 Project documents updates• Lessons learned register• Project schedule• Project team assignments• Resource calendars• Team charter.5 Enterprise environmental factors updates.6 Organizational process assets updates

��337Enterprise/Organization• Project charter4.6PerformIntegratedChange Control9.5ManageTeamProject management plan• Resource management planProject documents• Lessons learned register• Project schedule• Project team assignments• Resource calendars• Team charterProjectManagementPlanProjectDocumentsProjectDocuments9.4DevelopTeamEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Change requests• Team performance assessmentsProject management plan updates• Resource management planProject documents updates• Lessons learned register• Project schedule• Project team assignments• Resource calendars• Team charterProjectManagementPlan• Enterprise environmental factors updates• Organizational process assets updatesFigure 9-11. Develop Team: Data Flow DiagramProject managers require the skills to identify, build, maintain, motivate, lead, and inspire project teams to achieve high team performance and to meet the project’s objectives. Teamwork is a critical factor for project success, and developing effective project teams is one of the primary responsibilities of the project manager. Project managers should create an environment that facilitates teamwork and continually motivates the team by providing challenges and opportunities, providing timely feedback and support as needed, and recognizing and rewarding good performance. High team performance can be achieved by employing these behaviors:uuUsing open and effective communication,uuCreating team-building opportunities,uuDeveloping trust among team members,uuManaging conﬂicts in a constructive manner,uuEncouraging collaborative problem solving, anduuEncouraging collaborative decision making.

338 Part 1 – GuideProject managers operate in a global environment and work on projects characterized by cultural diversity. Team members often have diverse industry experience, communicate in multiple languages, and sometimes work with a “team language” or cultural norm that may be different from their native one. The project management team should capitalize on cultural differences, focus on developing and sustaining the project team throughout the project life cycle, and promote working together interdependently in a climate of mutual trust. Developing the project team improves the people skills, technical competencies, and overall team environment and project performance. It requires clear, timely, effective, and efﬁcient communication between team members throughout the life of the project. Objectives of developing a project team include but are not limited to:uuImproving the knowledge and skills of team members to increase their ability to complete project deliverables, while lowering costs, reducing schedules, and improving quality;uuImproving feelings of trust and agreement among team members to raise morale, lower conﬂict, and increase teamwork;uuCreating a dynamic, cohesive, and collaborative team culture to: (1) improve individual and team productivity, team spirit, and cooperation; and (2) allow cross-training and mentoring between team members to share knowledge and expertise; anduuEmpowering the team to participate in decision making and take ownership of the provided solutions to improve team productivity for more effective and efﬁcient results.One of the models used to describe team development is the Tuckman ladder [19, 20], which includes ﬁve stages of development that teams may go through. Although it is common for these stages to occur in order, it is not uncommon for a team to get stuck in a particular stage or regress to an earlier stage. Projects with team members who worked together in the past might skip a stage.uuForming. This phase is where the team members meet and learn about the project and their formal roles and responsibilities. Team members tend to be independent and not as open in this phase.uuStorming. During this phase, the team begins to address the project work, technical decisions, and the project management approach. If team members are not collaborative or open to differing ideas and perspectives, the environment can become counterproductive.uuNorming. In this phase, team members begin to work together and adjust their work habits and behaviors to support the team. The team members learn to trust each other.uuPerforming. Teams that reach the performing stage function as a well-organized unit. They are interdependent and work through issues smoothly and effectively.uuAdjourning. In this phase, the team completes the work and moves on from the project. This typically occurs when staff is released from the project as deliverables are completed or as part of the Close Project or Phase process.

��339The duration of a particular stage depends upon team dynamics, team size, and team leadership. Project managers should have a good understanding of team dynamics in order to move their team members through all stages in an effective manner.9.4.1 DEVELOP TEAM: INPUTS9.4.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to the resource management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on providing project team member rewards, feedback, additional training, and disciplinary actions as a result of team performance assessments and other forms of project team management. The resource management plan may include also the team performance assessment criteria.9.4.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to developing the team can be applied to later phases in the project to improve team performance.uuProject schedule. Described in Section 6.5.3.2. The project schedule deﬁnes how and when to provide training to the project team and develop the competencies required at different phases. It identiﬁes the need for team development strategies based on variations, if any, during the project execution.uuProject team assignments. Described in Section 9.3.3.1. Project team assignments identify the team and member roles and responsibilities.uuResource calendars. Described in Section 9.2.1.2. Resource calendars identify times when the project team members can participate in team development activities. It also helps illustrate team availability during the entire project.uuTeam charter. Described in Section 9.1.3.2. The team charter is where the team operating guidelines are documented. The team values and operating guidelines provide the structure that describes how the team will operate together.9.4.1.3 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Develop Team process include but are not limited to:uuHuman resource management policies regarding hiring and termination, employee performance reviews, employee development and training records, and recognition and rewards;uuTeam member skills, competencies, and specialized knowledge; anduuGeographic distribution of team members.

340 Part 1 – Guide9.4.1.4 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Develop Team process include but are not limited to historical information and the lessons learned repository.9.4.2 DEVELOP TEAM: TOOLS AND TECHNIQUES9.4.2.1 COLOCATIONColocation involves placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team. Colocation can be temporary, such as at strategically important times during the project, or can continue for the entire project. Colocation strategies can include a team meeting room, common places to post schedules, and other conveniences that enhance communication and a sense of community.9.4.2.2 VIRTUAL TEAMSThe use of virtual teams can bring beneﬁts such as the use of more skilled resources, reduced costs, less travel and relocation expenses, and the proximity of team members to suppliers, customers, or other key stakeholders. Virtual teams can use technology to create an online team environment where the team can store ﬁles, use conversations threads to discuss issues, and keep a team calendar.9.4.2.3 COMMUNICATION TECHNOLOGYDescribed in Section 10.1.2.3. Communication technology is important in addressing the team development issues in colocated and virtual teams. It helps build a harmonious environment for the colocated team and a better understanding for the virtual team, especially those working in different time zones. Examples of communication technology that may be used are:uuShared portal. A shared repository for information sharing (e.g., website, collaboration software or intranet) is effective for virtual project teams.uuVideo conferencing. Video conferencing is an important technique for effective communication with virtual teams.uuAudio conferencing. Communication within a team using audio conferencing is another technique to build rapport and conﬁdence within virtual teams.uuEmail/chat. Regular communications using email and chat is also an effective technique.

��3419.4.2.4 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to:uuConflict management. Described in Section 9.5.2.1. The project manager needs to resolve conﬂicts in a timely manner and in a constructive way in order to achieve a high-performing team.uuInfluencing. Described in Section 9.5.2.1. An inﬂuencing skill used in this process is gathering relevant and critical information to address important issues and reach agreements while maintaining mutual trust.uuMotivation. Motivation is providing a reason for someone to act. Teams are motivated by empowering them to participate in decision making and encouraging them to work independently.uuNegotiation. Described in Section 12.2.2.5. Negotiation among team members is used to reach consensus on project needs. Negotiation can build trust and harmony among the team members.uuTeam building. Team building is conducting activities that enhance the team’s social relations and build a collaborative and cooperative working environment. Team building activities can vary from a 5-minute agenda item in a status review meeting to an offsite, professionally facilitated event designed to improve interpersonal relationships. The objective of team-building activities is to help individual team members work together effectively. Team-building strategies are particularly valuable when team members operate from remote locations without the beneﬁt of face-to-face contact. Informal communication and activities can help in building trust and establishing good working relationships. While team building is essential during the initial stages of a project, it should be a continuous process. Changes in a project environment are inevitable, and to manage them effectively, a continuous or renewed team-building effort may be applied. The project manager should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems.9.4.2.5 RECOGNITION AND REWARDSPart of the team development process involves recognizing and rewarding desirable behavior. The original plan for rewarding people is developed during the Plan Resource Management process. Rewards will be effective only if they satisfy a need that is valued by that individual. Reward decisions are made, formally or informally, during the process of managing the project team. Cultural differences should be considered when determining recognition and rewards.

342 Part 1 – GuidePeople are motivated when they feel they are valued in the organization and this value is demonstrated by the rewards given to them. Generally, money is viewed as a tangible aspect of any reward system, but intangible rewards could be equally or even more effective. Most project team members are motivated by an opportunity to grow, accomplish, be appreciated, and apply their professional skills to meet new challenges. A good strategy for project managers is to give the team recognition throughout the life cycle of the project rather than waiting until the project is completed.9.4.2.6 TRAININGTraining includes all activities designed to enhance the competencies of the project team members. Training can be formal or informal. Examples of training methods include classroom, online, computer-based, on-the-job training from another project team member, mentoring, and coaching. If project team members lack the necessary management or technical skills, such skills can be developed as part of the project work. Scheduled training takes place as stated in the resource management plan. Unplanned training takes place as a result of observation, conversation, and project performance appraisals conducted during management of the project team. Training costs could be included in the project budget or supported by the performing organization if the added skills may be useful for future projects. It may be performed by in-house or by external trainers.9.4.2.7 INDIVIDUAL AND TEAM ASSESSMENTSIndividual and team assessment tools give the project manager and the project team insight into areas of strengths and weaknesses. These tools help project managers assess team members’ preferences, aspirations, how they process and organize information, how they make decisions, and how they interact with people. Various tools are available such as attitudinal surveys, speciﬁc assessments, structured interviews, ability tests, and focus groups. These tools can provide improved understanding, trust, commitment, and communications among team members and facilitate more productive teams throughout the project.9.4.2.8 MEETINGSMeetings are used to discuss and address pertinent topics for developing the team. Attendees include the project manager and the project team. Types of meetings include but are not limited to project orientation meetings, team-building meetings, and team development meetings.

��3439.4.3 DEVELOP TEAM: OUTPUTS9.4.3.1 TEAM PERFORMANCE ASSESSMENTSAs project team development efforts such as training, team building, and colocation are implemented, the project management team makes formal or informal assessments of the project team’s effectiveness. Effective team development strategies and activities are expected to increase the team’s performance, which increases the likelihood of meeting project objectives.The evaluation of a team’s effectiveness may include indicators such as:uuImprovements in skills that allow individuals to perform assignments more effectively,uuImprovements in competencies that help team members perform better as a team,uuReduced staff turnover rate, anduuIncreased team cohesiveness where team members share information and experiences openly and help each other to improve the overall project performance.As a result of conducting an evaluation of the team’s overall performance, the project management team can identify the speciﬁc training, coaching, mentoring, assistance, or changes required to improve the team’s performance. This should also include identifying the appropriate or required resources necessary to achieve and implement the improvements identiﬁed in the assessment.9.4.3.2 CHANGE REQUESTSDescribed in Section 4.3.3.4. If change requests occur as a result of carrying out the Develop Team process or if recommended corrective or preventive actions impact any of the components of the project management plan or project documents, the project manager needs to submit a change request and follow the Perform Integrated Change Control process as deﬁned in Section 4.6.9.4.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to the resource management plan, as described in Section 9.1.3.1.

344 Part 1 – Guide9.4.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well for the development of the team.uuProject schedule. Described in Section 6.5.3.2. Activities to develop the project team may result in changes to the project schedule.uuProject team assignments. Described in Section 9.3.3.1. When team development results in changes to agreed-upon assignments, these changes are recorded in the project team assignments documentation.uuResource calendars. Described in Section 9.2.1.2. Resource calendars are updated to reﬂect the availability of resources for the project.uuTeam charter. Described in Section 9.1.3.2. The team charter may be updated to reﬂect changes to agreed-upon team operating guidelines that result from team development.9.4.3.5 ENTERPRISE ENVIRONMENTAL FACTORS UPDATESEnterprise environmental factors that are updated as a result of the Develop Project Team process include but are not limited to:uuEmployee development plan records, anduuSkill assessments.9.4.3.6 ORGANIZATIONAL PROCESS ASSETS UPDATESOrganizational process assets that are updated as a result of the Develop Team process include but are not limited to:uuTraining requirements, anduuPersonnel assessment.

��3459.5 MANAGE TEAMManage Team is the process of tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance. The key beneﬁt of this process is that it inﬂuences team behavior, manages conﬂict, and resolves issues. This process is performed throughout the project.The inputs, tools and techniques, and outputs of the process are depicted in Figure 9-12. Figure 9-13 depicts the data ﬂow diagram for the process.Figure 9-12. Manage Team: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsManage Team.1 Interpersonal and team skills• Conflict management• Decision making• Emotional intelligence• Influencing• Leadership.2 Project management information system.1 Project management plan• Resource management plan.2 Project documents• Issue log• Lessons learned register• Project team assignments• Team charter.3 Work performance reports.4 Team performance assessments.5 Enterprise environmental factors.6 Organizational process assets.1 Change requests.2 Project management plan updates• Resource management plan• Schedule baseline• Cost baseline.3 Project documents updates• Issue log• Lessons learned register• Project team assignments.4 Enterprise environmental factors updates

346 Part 1 – GuideEnterprise/Organization• Project charter4.6PerformIntegratedChange Control4.5 Monitor andControlProject Work Project management plan• Resource management plan• Work performance reports9.4DevelopTeam• Team performance assessmentsProject documents• Issue log• Lessons learned register• Project team assignments• Team charterProjectManagementPlanProjectDocumentsProjectDocuments9.5ManageTeamEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Change requestsProject management plan updates• Resource management plan• Schedule baseline• Cost baselineProject documents updates• Issue log• Lessons learned register• Project team assignmentsProjectManagementPlan• Enterprise environmental factors updatesFigure 9-13. Manage Team: Data Flow DiagramManaging the project team requires a variety of management and leadership skills for fostering teamwork and integrating the efforts of team members to create high-performance teams. Team management involves a combination of skills with special emphasis on communication, conﬂict management, negotiation, and leadership. Project managers should provide challenging assignments to team members and provide recognition for high performance.The project manager needs to be sensitive to both the willingness and the ability of team members to perform their work and adjust their management and leadership styles accordingly. Team members with low-skill abilities will require more intensive oversight than those who have demonstrated ability and experience.

��3479.5.1 MANAGE TEAM: INPUTS9.5.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to the resource management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on how project team resources should be managed and eventually released.9.5.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. Issues arise in the course of managing the project team. An issue log can be used to document and monitor who is responsible for resolving speciﬁc issues by a target date.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve the efﬁciency and effectiveness of managing the team.uuProject team assignments. Described in Section 9.3.3.1. Project team assignments identify the team member roles and responsibilities.uuTeam charter. Described in Section 9.1.3.2. The team charter provides guidance for how the team will make decisions, conduct meetings, and resolve conﬂict.9.5.1.3 WORK PERFORMANCE REPORTSDescribed in Section 4.5.3.1. Work performance reports are the physical or electronic representation of work performance information intended to generate decisions, actions, or awareness. Performance reports that can help with project team management include results from schedule control, cost control, quality control, and scope validation. The information from performance reports and related forecasts assists in determining future team resource requirements, recognition and rewards, and updates to the resource management plan.9.5.1.4 TEAM PERFORMANCE ASSESSMENTSDescribed in Section 9.4.3.1. The project management team makes ongoing formal or informal assessments of the project team’s performance. By continually assessing the project team’s performance, actions can be taken to resolve issues, modify communication, address conﬂict, and improve team interaction.

348 Part 1 – Guide9.5.1.5 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Manage Team process include but are not limited to human resource management policies.9.5.1.6 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Manage Team process include but are not limited to:uuCertiﬁcates of appreciation,uuCorporate apparel, anduuOther organizational perquisites.9.5.2 MANAGE TEAM: TOOLS AND TECHNIQUES9.5.2.1 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to:uuConflict management. Conﬂict is inevitable in a project environment. Sources of conﬂict include scarce resources, scheduling priorities, and personal work styles. Team ground rules, group norms, and solid project management practices, like communication planning and role deﬁnition, reduce the amount of conﬂict.Successful conﬂict management results in greater productivity and positive working relationships. When managed properly, differences of opinion can lead to increased creativity and better decision making. If the differences become a negative factor, project team members are initially responsible for their resolution. If conﬂict escalates, the project manager should help facilitate a satisfactory resolution. Conﬂict should be addressed early and usually in private, using a direct, collaborative approach. If disruptive conﬂict continues, formal procedures may be used, including disciplinary actions.The success of project managers in managing their project teams often depends on their ability to resolve conﬂict. Different project managers may use different conﬂict resolution methods. Factors that inﬂuence conﬂict resolution methods include:unImportance and intensity of the conﬂict,unTime pressure for resolving the conﬂict, unRelative power of the people involved in the conﬂict,unImportance of maintaining a good relationship, andunMotivation to resolve conﬂict on a long-term or short-term basis.

��349There are ﬁve general techniques for resolving conﬂict. Each technique has its place and use:umWithdraw/avoid. Retreating from an actual or potential conﬂict situation; postponing the issue to be better prepared or to be resolved by others.umSmooth/accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s position to the needs of others to maintain harmony and relationships.umCompromise/reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conﬂict. This approach occasionally results in a lose-lose situation.umForce/direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually enforced through a power position to resolve an emergency. This approach often results to a win-lose situation. umCollaborate/problem solve. Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment. This approach can result in a win-win situation.uuDecision making. Decision making, in this context, involves the ability to negotiate and inﬂuence the organization and the project management team, rather than the set of tools described in the decision making tool set. Some guidelines for decision making include:unFocus on goals to be served,unFollow a decision-making process,unStudy the environmental factors,unAnalyze available information,unStimulate team creativity, andunAccount for risk.uuEmotional intelligence. Emotional intelligence is the ability to identify, assess, and manage the personal emotions of oneself and other people, as well as the collective emotions of groups of people. The team can use emotional intelligence to reduce tension and increase cooperation by identifying, assessing, and controlling the sentiments of project team members, anticipating their actions, acknowledging their concerns, and following up on their issues.

350 Part 1 – GuideuuInfluencing. Because project managers often have little or no direct authority over team members in a matrix environment, their ability to inﬂuence stakeholders on a timely basis is critical to project success. Key inﬂuencing skills include:unAbility to be persuasive;unClearly articulating points and positions;unHigh levels of active and effective listening skills;unAwareness of, and consideration for, the various perspectives in any situation; andunGathering relevant information to address issues and reach agreements while maintaining mutual trust.uuLeadership. Successful projects require leaders with strong leadership skills. Leadership is the ability to lead a team and inspire them to do their jobs well. It encompasses a wide range of skills, abilities and actions. Leadership is important through all phases of the project life cycle. There are multiple leadership theories deﬁning leadership styles that should be used as needed for each situation or team. It is especially important to communicate the vision and inspire the project team to achieve high performance.9.5.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems can include resource management or scheduling software that can be used for managing and coordinating team members across project activities.9.5.3 MANAGE TEAM: OUTPUTS9.5.3.1 CHANGE REQUESTSDescribed in Section 4.3.3.4. When change requests occur as a result of carrying out the Manage Team process or when recommended corrective or preventive actions impact any of the components of the project management plan or project documents, the project manager needs to submit a change request. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).For example, stafﬁng changes, whether made by choice or by uncontrollable events, can disrupt the project team. This disruption can cause the schedule to slip or the budget to be exceeded. Stafﬁng changes include moving people to different assignments, outsourcing some of the work, or replacing team members who leave.

��3519.5.3.2 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components of the project management plan that may require a change request for the project management plan include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan is updated to reﬂect actual experience in managing the project team.uuSchedule baseline. Described in Section 6.5.3.1. Changes to the project schedule may be required to reﬂect the way the team is performing.uuCost baseline. Described in Section 7.3.3.1. Changes to the project cost baseline may be required to reﬂect the way the team is performing.9.5.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the issue log.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well for the managing the team.uuProject team assignments. Described in Section 9.3.3.1. If changes to the team are required, those changes are recorded in the project team assignments documentation.9.5.3.4 ENTERPRISE ENVIRONMENTAL FACTORS UPDATESEnterprise environmental factors that are updated as a result of the Manage Team process include but are not limited to:uuInput to organizational performance appraisals, anduuPersonnel skill.

352 Part 1 – Guide9.6 CONTROL RESOURCESControl Resources is the process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective action as necessary. The key beneﬁt of this process is ensuring that the assigned resources are available to the project at the right time and in the right place and are released when no longer needed. This process is performed throughout the project. The inputs and outputs of this process are depicted in Figure 9-14. Figure 9-15 depicts the data ﬂow diagram for the process.Figure 9-14. Control Resources: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsControl Resources.1 Data analysis• Alternatives analysis• Cost-benefit analysis• Performance reviews• Trend analysis.2 Problem solving.3 Interpersonal and team skills• Negotiation• Influencing.4 Project management information system.1 Project management plan• Resource management plan.2 Project documents• Issue log• Lessons learned register• Physical resource assignments• Project schedule• Resource breakdown structure• Resource requirements• Risk register.3 Work performance data.4 Agreements.5 Organizational process assets.1 Work performance information.2 Change requests.3 Project management plan updates• Resource management plan• Schedule baseline• Cost baseline.4 Project documents updates• Assumption log• Issue log• Lessons learned register• Physical resource assignments• Resource breakdown structure• Risk register

��353• Project charter4.6PerformIntegratedChange Control4.3 Direct andManageProject WorkProject management plan• Resource management plan12.2 ConductProcurements• AgreementsProject documents• Issue log• Lessons learned register• Physical resource assignments• Project schedule• Resource breakdown structure• Resource requirements• Risk registerProjectManagementPlanProjectDocumentsProjectDocuments9.6 ControlResourcesEnterprise/Organization• Organizational process assets• Work performance information• Change requestsProject management plan updates• Resource management plan• Schedule baseline• Cost baselineProject documents updates• Assumption log• Issue log• Lessons learned register• Physical resource assignments• Resource breakdown structure• Risk registerProjectManagementPlan4.5 Monitor andControlProject Work • Work performance dataFigure 9-15. Control Resources: Data Flow DiagramThe Control Resources process should be performed continuously in all project phases and throughout the project life cycle. The resources needed for the project should be assigned and released at the right time, right place, and right amount for the project to continue without delays. The Control Resources process is concerned with physical resources such as equipment, materials, facilities, and infrastructure. Team members are addressed in the Manage Team process.The Control Resources techniques discussed here are those used most frequently on projects. There are many others that may be useful on certain projects or in some application areas.

354 Part 1 – GuideUpdating resource allocation requires knowing what actual resources have been used to date and what is still needed. This is done mainly by reviewing the performance usage to date. Control Resources is concerned with:uuMonitoring resource expenditures,uuIdentifying and dealing with resource shortage/surplus in a timely manner,uuEnsuring that resources are used and released according to the plan and project needs,uuInforming appropriate stakeholders if any issues arise with relevant resources,uuInﬂuencing the factors that can create resources utilization change, anduuManaging the actual changes as they occur.Any changes needed to the schedule or cost baselines can be approved only through the Perform Integrated Change Control process (Section 4.6).9.6.1 CONTROL RESOURCES: INPUTS9.6.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to the resource management plan. Described in Section 9.1.3.1, the resource management plan provides guidance on how physical resources should be used, controlled, and eventually released.9.6.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. The issue log is used to identify issues such as lack of resources, delays in raw material supplies, or low grades of raw material.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve physical resource control.uuPhysical resource assignments. Described in Section 9.3.3.1. The physical resource assignments describe the expected resource utilization along with details such as type, amount, location, and whether the resource is internal to the organization or outsourced.

��355uuProject schedule. Described in Section 6.5.3.2. The project schedule shows the resources that are needed, when they are needed, and the location where they are needed.uuResource breakdown structure. Described in Section 9.2.3.3. The resource breakdown structure provides a reference in case any resource needs to be replaced or reacquired during the course of the project.uuResource requirements. Described in Section 9.2.3.1. Resource requirements identify the needed material, equipment, supplies, and other resources.uuRisk register. Described in Section 11.2.3.1. The risk register identiﬁes individual risks that can impact equipment, materials, or supplies.9.6.1.3 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data contains data on project status such as the number and type of resources that have been used.9.6.1.4 AGREEMENTSDescribed in Section 12.2.3.2. Agreements made within the context of the project are the basis for all resources external to the organization and should deﬁne procedures when new, unplanned resources are needed or when issues arise with the current resources.9.6.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Control Resources process include but are not limited to:uuPolicies regarding resource control and assignment,uuEscalation procedures for handling issues within the performing organization, anduuLessons learned repository from previous similar projects.

356 Part 1 – Guide9.6.2 CONTROL RESOURCES: TOOLS AND TECHNIQUES9.6.2.1 DATA ANALYSISData analysis techniques that can be used in this process include but are not limited to:uuAlternatives analysis. Described in Section 9.2.2.5. Alternatives can be analyzed to select the best resolution for correcting variances in resource utilization. Alternatives such as paying additional for overtime or additional team resources can be weighed against a late delivery or phased deliveries.uuCost-benefit analysis. Described in Section 8.1.2.3. This analysis helps to determine the best corrective action in terms of cost in case of project deviations.uuPerformance reviews. Performance reviews measure, compare, and analyze planned resource utilization to actual resource utilization. Cost and schedule work performance information can also be analyzed to help pinpoint issues that can inﬂuence resource utilization.uuTrend analysis. Described in Section 4.5.2.2. As the project progresses, the project team may use trend analysis, based on current performance information, to determine the resources needed at upcoming stages of the project. Trend analysis examines project performance over time and can be used to determine whether performance is improving or deteriorating.9.6.2.2 PROBLEM SOLVINGDescribed in Section 8.2.2.7. Problem solving may use a set of tools that helps the project manager to solve problems that arise during the control resource process. The problem can come from inside the organization (machines or infrastructure used by another department in the organization and not released in time, materials that have been damaged because of unsuitable storage conditions, etc.) or from outside the organization (major supplier that has gone bankrupt or bad weather that has damaged resources). The project manager should use methodical steps to deal with problem solving, which can include:uuIdentify the problem. Specify the problem.uuDefine the problem. Break it into smaller, manageable problems.uuInvestigate. Collect data.uuAnalyze. Find the root cause of the problem.uuSolve. Choose the suitable solution from a variety of available ones.uuCheck the solution. Determine if the problem has been ﬁxed.

��3579.6.2.3 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills, sometimes known as “soft skills,” are personal competencies. The interpersonal and team skills used in this process include:uuNegotiation. Described in Section 12.2.2.5. The project manager may need to negotiate for additional physical resources, changes in physical resources, or costs associated with the resources.uuInfluencing. Described in Section 9.5.2.1. Inﬂuencing can help the project manager solve problems and obtain the resources needed in a timely manner.9.6.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems can include resource management or scheduling software that can be used to monitor the resource utilization which helps ensure that the right resources are working on the right activities at the right time and place.9.6.3 CONTROL RESOURCES: OUTPUTS9.6.3.1 WORK PERFORMANCE INFORMATIONDescribed in Section 4.5.1.3. Work performance information includes information on how the project work is progressing by comparing resource requirements and resource allocation to resource utilization across the project activities. This comparison can show gaps in resource availability that need to be addressed.9.6.3.2 CHANGE REQUESTSDescribed in Section 4.3.3.4. When change requests occur as a result of carrying out the Control Resources process or when recommended, corrective, or preventive actions impact any of the components of the project management plan or project documents, the project manager needs to submit a change request. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

358 Part 1 – Guide9.6.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan is updated to reﬂect actual experience in managing project resources.uuSchedule baseline. Described in Section 6.5.3.1. Changes to the project schedule may be required to reﬂect the way project resources are being managed.uuCost baseline. Described in Section 7.3.3.1. Changes to the project cost baseline may be required to reﬂect the way project resources are being managed.9.6.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of performing this process include but are not limited to:uuAssumption log. Described in Section 4.1.3.2. The assumption log may be updated with new assumptions regarding equipment, materials, supplies, and other physical resources.uuIssue log. Described in Section 4.3.3.3. New issues raised as a result of this process are recorded in the issue log.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register can be updated with techniques that were effective in managing resource logistics, scrap, utilization variances, and corrective actions that were used to respond to resource variances.uuPhysical resource assignments. Described in Section 9.3.3.1. Physical resource assignments are dynamic and subject to change due to availability, the project, organization, environment, or other factors.uuResource breakdown structure. Described in Section 9.2.3.3. Changes to the resource breakdown structure may be required to reﬂect the way project resources are being used.uuRisk register. Described in Section 11.2.3.1. The risk register is updated with any new risks associated with resource availability, utilization, or other physical resource risks.

��35910PROJECT COMMUNICATIONS MANAGEMENTProject Communications Management includes the processes necessary to ensure that the information needs of the project and its stakeholders are met through development of artifacts and implementation of activities designed to achieve effective information exchange. Project Communications Management consists of two parts. The ﬁrst part is developing a strategy to ensure communication is effective for stakeholders. The second part is carrying out the activities necessary to implement the communication strategy.The Project Communications Management processes are:10.1 Plan Communications Management—The process of developing an appropriate approach and plan for project communication activities based on the information needs of each stakeholder or group, available organizational assets, and the needs of the project.10.2 Manage Communications—The process of ensuring timely and appropriate collection, creation, distribution, storage, retrieval, management, monitoring, and the ultimate disposition of project information.10.3 Monitor Communications—The process of ensuring the information needs of the project and its stakeholders are met.Figure 10-1 provides an overview of the Project Communications Management processes. The Project Communications Management processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

360 Part 1 – Guide.1 Inputs .1 Project management plan .2 Project documents .3 Work performance reports .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Communication technology .2 Communication methods .3 Communication skills .4 Project management information system .5 Project reporting .6 Interpersonal and team skills .7 Meetings.3 Outputs .1 Project communications .2 Project management plan updates .3 Project documents updates .4 Organizational process assets updates.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Communication requirements analysis .3 Communication technology .4 Communication models .5 Communication methods .6 Interpersonal and team skills .7 Data representation .8 Meetings.3 Outputs .1 Communications management plan .2 Project management plan updates .3 Project documents update.1 Inputs .1 Project management plan .2 Project documents .3 Work performance data .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Project management information system .3 Data representation .4 Interpersonal and team skills .5 Meetings.3 Outputs .1 Work performance information .2 Change requests .3 Project management plan updates .4 Project documents updatesProject CommunicationsManagement Overview10.2 ManageCommunications10.1 Plan CommunicationsManagement10.3 MonitorCommunicationsFigure 10-1. Project Communications OverviewKEY CONCEPTS FOR PROJECT COMMUNICATIONS MANAGEMENTCommunication is the exchange of information, intended or involuntary. The information exchanged can be in the form of ideas, instructions, or emotions. The mechanisms by which information is exchanged can be in:uuWritten form. Either physical or electronic.uuSpoken. Either face-to-face or remote.uuFormal or informal (as in formal papers or social media).uuThrough gestures. Tone of voice and facial expressions.uuThrough media. Pictures, actions, or even just the choice of words.uuChoice of words. There is often more than one word to express an idea; there can be subtle differences in the meaning of each of these words and phrases.

��361Communications describe the possible means by which the information can be sent or received, either through communication activities, such as meetings and presentations, or artifacts, such as emails, social media, project reports, or project documentation.Project managers spend most of their time communicating with team members and other project stakeholders, both internal (at all organizational levels) and external to the organization. Effective communication builds a bridge between diverse stakeholders who may have different cultural and organizational backgrounds as well as different levels of expertise, perspectives, and interests.Communication activities have many dimensions, including but not limited to:uuInternal. Focus on stakeholders within the project and within the organization.uuExternal. Focus on external stakeholders such as customers, vendors, other projects, organizations, government, the public, and environmental advocates.uuFormal. Reports, formal meetings (both regular and ad hoc), meeting agendas and minutes, stakeholder brieﬁngs, and presentations.uuInformal. General communications activities using emails, social media, websites, and informal ad hoc discussions.uuHierarchical focus. The position of the stakeholder or group with respect to the project team will affect the format and content of the message, in the following ways:unUpward. Senior management stakeholders.unDownward. The team and others who will contribute to the work of the project.unHorizontal. Peers of the project manager or team.uuOfficial. Annual reports; reports to regulators or government bodies.uuUnofficial. Communications that focus on establishing and maintaining the proﬁle and recognition of the project and building strong relationships between the project team and its stakeholders using ﬂexible and often informal means.uuWritten and oral. Verbal (words and voice inﬂections) and nonverbal (body language and actions), social media and websites, media releases.

��362 Part 1 – GuideCommunication develops the relationships necessary for successful project and program outcomes. Communication activities and artifacts to support communication vary widely, ranging from emails and informal conversations to formal meetings and regular project reports. The act of sending and receiving information takes place consciously or unconsciously through words, facial expressions, gestures and other actions. In the context of successfully managing project relationships with stakeholders, communication includes developing strategies and plans for suitable communications artifacts and activities with the stakeholder community and the application of skills to enhance the effectiveness of the planned and other ad hoc communications.There are two parts to successful communication. The ﬁrst part involves developing an appropriate communication strategy based on both the needs of the project and the project’s stakeholders. From that strategy, a communications management plan is developed to ensure that the appropriate messages are communicated to stakeholders in various formats and various means as deﬁned by the communication strategy. These messages constitute the project’s communications—the second part of successful communication. Project communications are the products of the planning process, addressed by the communications management plan that deﬁnes the collection, creation, dissemination, storage, retrieval, management, tracking, and disposition of these communications artifacts. Finally, the communication strategy and communications management plan will form the foundation to monitor the effect of the communication.The project’s communications are supported by efforts to prevent misunderstandings and miscommunication and by careful selection of the methods, messengers, and messages developed from the planning process.Misunderstandings can be reduced but not eliminated through using the 5Cs of written communications in composing a traditional (non-social media) written or spoken message:

��363uuCorrect grammar and spelling. Poor use of grammar or inaccurate spelling can be distracting and can also introduce distortions in the message, diminishing credibility.uuConcise expression and elimination of excess words. A concise, well-crafted message reduces the opportunities for misunderstanding the intent of the message.uuClear purpose and expression directed to the needs of the reader. Ensure that the needs and interests of the audience are factored into the message.uuCoherent logical flow of ideas. A coherent logical ﬂow of ideas and using “markers” such as introduction and summaries of the ideas throughout the writing.uuControlling flow of words and ideas. Controlling the flow of words and ideas may involve graphics or just summaries.The 5Cs of written communications are supported by communication skills, such as:uuListening actively. Staying engaged with the speaker and summarizing conversations to ensure effective information exchange.uuAwareness of cultural and personal differences. Developing the team’s awareness of cultural and personal differences to reduce misunderstandings and enhance communication capability.uuIdentifying, setting, and managing stakeholder expectations. Negotiating with stakeholders reduces the existence of conﬂicting expectations among the stakeholder community.uuEnhancement of skills. Enhancing the skills of all team members in the following activities:unPersuading a person, a team, or an organization to perform an action;unMotivating people and providing encouragement or reassurance;unCoaching to improve performance and achieve desired results;unNegotiating to achieve mutually acceptable agreements between parties and reduce approval or decision delays; andunResolving conﬂict to prevent disruptive impacts.The fundamental attributes of effective communication activities and developing effective communication artifacts are:unClarity on the purpose of the communication—deﬁning its purpose;unUnderstanding as much as possible about the receiver of the communications, meeting needs, and preferences; andunMonitoring and measuring the effectiveness of the communications.

364 Part 1 – GuideTRENDS AND EMERGING PRACTICES IN PROJECT COMMUNICATIONS MANAGEMENTAlong with a focus on stakeholders and recognition of the value to projects and organizations of effective stakeholder engagement comes the recognition that developing and implementing appropriate communication strategies is vital to maintaining effective relationships with stakeholders. Trends and emerging practices for Project Communications Management include but are not limited to:uuInclusion of stakeholders in project reviews. The stakeholder community of each project includes individuals, groups, and organizations that the project team has identiﬁed as essential to the successful delivery of project objectives and organizational outcomes. An effective communication strategy requires regular and timely reviews of the stakeholder community and updates to manage changes in its membership and attitudes.uuInclusion of stakeholders in project meetings. Project meetings should include stakeholders from outside the project and even the organization, where appropriate. Practices inherent in the agile approaches can be applied to all types of projects. Practices often include short, daily standup meetings, where the achievements and issues of the previous day, and plans for the current day’s work, are discussed with the project team and key stakeholders.uuIncreased use of social computing. Social computing in the form of infrastructure, social media services, and personal devices has changed how organizations and their people communicate and do business. Social computing incorporates different approaches to collaboration supported by public IT infrastructure. Social networking refers to how users build networks of relationships to explore their interests and activities with others. Social media tools can not only support information exchange, but also build relationships accompanied by deeper levels of trust and community.uuMultifaceted approaches to communication. The standard communication strategy for project stakeholder communications embraces and selects from all technologies and respects cultural, practical, and personal preferences for language, media, content, and delivery. When appropriate, social media and other advanced computing technologies may be included. Multifaceted approaches such as these are more effective for communicating to stakeholders from different generations and cultures.

��365TAILORING CONSIDERATIONSBecause each project is unique, the project team will need to tailor the way that Project Communications Management processes are applied. Considerations for tailoring include but are not limited to:uuStakeholders. Are the stakeholders internal or external to the organization, or both?uuPhysical location. What is the physical location of team members? Is the team colocated? Is the team in the same geographical area? Is the team distributed across multiple time zones?uuCommunications technology. What technology is available to develop, record, transmit, retrieve, track, and store communication artifacts? What technologies are most appropriate and cost effective for communicating to stakeholders?uuLanguage. Language is a main factor to consider in communication activities. Is one language used? Or are many languages used? Have allowances been made to adjust to the complexity of team members from diverse language groups?uuKnowledge management. Does the organization have a formal knowledge management repository? Is the repository used?CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSProject environments subject to various elements of ambiguity and change have an inherent need to communicate evolving and emerging details more frequently and quickly. This motivates streamlining team member access to information, frequent team checkpoints, and colocating team members as much as possible.In addition, posting project artifacts in a transparent fashion, and holding regular stakeholder reviews are intended to promote communication with management and stakeholders.

366 Part 1 – Guide10.1 PLAN COMMUNICATIONS MANAGEMENTPlan Communications Management is the process of developing an appropriate approach and plan for project communications activities based on the information needs of each stakeholder or group, available organizational assets, and the needs of the project. The key beneﬁt of this process is a documented approach to effectively and efﬁciently engage stakeholders by presenting relevant information in a timely manner. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of the process are depicted in Figure 10-2. Figure 10-3 depicts the data ﬂow diagram for the process.Figure 10-2. Plan Communications Management: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsPlan Communications Management.1 Expert judgment.2 Communication requirements analysis.3 Communication technology.4 Communication models.5 Communication methods.6 Interpersonal and team skills• Communication styles assessment• Political awareness• Cultural awareness.7 Data representation• Stakeholder engagement assessment matrix.8 Meetings.1 Project charter.2 Project management plan• Resource management plan• Stakeholder engagement plan.3 Project documents• Requirements documentation• Stakeholder register.4 Enterprise environmental factors.5 Organizational process assets.1 Communications management plan.2 Project management plan updates• Stakeholder engagement plan.3 Project documents updates• Project schedule• Stakeholder register

��367• Project charter4.1DevelopProjectCharterProject management plan• Resource management plan • Stakeholder engagement planProject documents• Requirements documentation• Stakeholder register• Project charterProjectManagementPlanProjectDocumentsProjectDocuments10.1PlanCommunicationsManagementEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Communications management planProject management plan updates• Stakeholder engagement planProject documents updates• Project schedule• Stakeholder registerProjectManagementPlanFigure 10-3. Plan Communications Management: Data Flow DiagramAn effective communications management plan that recognizes the diverse information needs of the project’s stakeholders is developed early in the project life cycle. It should be reviewed regularly and modiﬁed when necessary, when the stakeholder community changes or at the start of each new project phase.On most projects, communications planning is performed very early, during stakeholder identiﬁcation and project management plan development.While all projects share the need to communicate project information, the information needs and methods of distribution may vary widely. In addition, the methods of storage, retrieval, and ultimate disposition of the project information need to be considered and documented during this process. The results of the Plan Communications Management process should be reviewed regularly throughout the project and revised as needed to ensure continued applicability.

368 Part 1 – Guide10.1.1 PLAN COMMUNICATIONS MANAGEMENT: INPUTS10.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter identiﬁes the key stakeholder list. It may also contain information about the roles and responsibilities of the stakeholders.10.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. Provides guidance on how team resources will be categorized, allocated, managed, and released. Team members and groups may have communication requirements that should be identiﬁed in the communications management plan.uuStakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan identiﬁes the management strategies required to effectively engage stakeholders. These strategies are often fulﬁlled via communications.10.1.1.3 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuRequirements documentation. Described in Section 5.2.3.1. Requirements documentation can include project stakeholder communications.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register is used to plan communications activities with stakeholders.10.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Communications Management process include but are not limited to:uuOrganizational culture, political climate, and governance framework;uuPersonnel administration policies;uuStakeholder risk thresholds;uuEstablished communication channels, tools, and systems;uuGlobal, regional, or local trends, practices, or habits; anduuGeographic distribution of facilities and resources.

��36910.1.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Communications Management process include but are not limited to:uuOrganizational policies and procedures for social media, ethics, and security;uuOrganizational policies and procedures for issue, risk, change, and data management;uuOrganizational communication requirements;uuStandardized guidelines for development, exchange, storage, and retrieval of information;uuHistorical information and lessons learned repository; anduuStakeholder and communications data and information from previous projects.10.1.2 PLAN COMMUNICATIONS MANAGEMENT: TOOLS AND TECHNIQUES10.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuPolitics and power structures in the organization;uuEnvironment and culture of the organization and other customer organizations;uuOrganizational change management approach and practices;uuIndustry or type of project deliverables;uuOrganizational communications technologies;uuOrganizational policies and procedures regarding legal requirements of corporate communications;uuOrganizational policies and procedures regarding security; anduuStakeholders, including customers or sponsors.10.1.2.2 COMMUNICATION REQUIREMENTS ANALYSISAnalysis of communication requirements determines the information needs of the project stakeholders. These requirements are deﬁned by combining the type and format of information needed with an analysis of the value of that information.

370 Part 1 – GuideSources of information typically used to identify and deﬁne project communication requirements include but are not limited to:uuStakeholder information and communication requirements from within the stakeholder register and stakeholder engagement plan;uuNumber of potential communication channels or paths, including one-to-one, one-to-many, and many-to-many communications;uuOrganizational charts;uuProject organization and stakeholder responsibility, relationships, and interdependencies;uuDevelopment approach;uuDisciplines, departments, and specialties involved in the project;uuLogistics of how many persons will be involved with the project and at which locations;uuInternal information needs (e.g., when communicating within organizations);uuExternal information needs (e.g., when communicating with the media, public, or contractors); anduuLegal requirements.10.1.2.3 COMMUNICATION TECHNOLOGYThe methods used to transfer information among project stakeholders may vary signiﬁcantly. Common methods used for information exchange and collaboration include conversations, meetings, written documents, databases, social media, and websites.Factors that can affect the choice of communication technology include:uuUrgency of the need for information. The urgency, frequency, and format of the information to be communicated may vary from project to project and also within different phases of a project.uuAvailability and reliability of technology. The technology that is required for distribution of project communications artifacts should be compatible, available, and accessible for all stakeholders throughout the project.uuEase of use. The choice of communication technologies should be suitable for project participants and proper training events should be planned, where appropriate.

��371uuProject environment. Whether the team will meet and operate on a face-to-face basis or in a virtual environment; whether they will be located in one or multiple time zones; whether they will use multiple languages for communication; and ﬁnally, whether there are any other project environmental factors, such as various aspects of culture, which may constrain the efﬁciency of the communication.uuSensitivity and confidentiality of the information. Some aspects to consider are:unWhether information to be communicated is sensitive or conﬁdential. If so, additional security measures may be required.unSocial media policies for employees to ensure appropriate behavior, security, and the protection of proprietary information.10.1.2.4 COMMUNICATION MODELSCommunication models can represent the communication process in its most basic linear form (sender and receiver), in a more interactive form that encompasses the additional element of feedback (sender, receiver, and feedback), or in a more complex model that incorporates the human elements of the sender(s) or receiver(s) and attempts to show the complexity of any communication that involves people.uuSample basic sender/receiver communication model. This model describes communication as a process and consists of two parties, deﬁned as the sender and receiver. This model is concerned with ensuring that the message is delivered, rather than understood. The sequence of steps in a basic communication model is:unEncode. The message is coded into symbols, such as text, sound or some other medium for transmission (sending).unTransmit message. The message is sent via a communication channel. The transmission of this message may be compromised by various physical factors such as unfamiliar technology or inadequate infrastructure. Noise and other factors may be present and contribute to loss of information in transmission and/or reception of the message.unDecode. The data received is translated by the receiver back into a form useful to the receiver.

372 Part 1 – GuideuuSample interactive communication model. This model also describes communication as a process consisting of two parties, the sender and receiver, but recognizes the need to ensure that the message has been understood. In this model, noise includes any interference or barriers that might compromise the understanding of the message, such as the distraction of the receiver, variations in the perceptions of receivers, or lack of appropriate knowledge or interest. The additional steps in an interactive communication model are:unAcknowledge. Upon receipt of a message, the receiver may signal (acknowledge) receipt of the message, but this does not necessarily mean agreement with or comprehension of the message—merely that it has been received.unFeedback/response. When the received message has been decoded and understood, the receiver encodes thoughts and ideas into a message and then transmits this message to the original sender. If the sender perceives that the feedback matches the original message, the communication has been successful. In communication between people, feedback can be achieved through active listening, described in Section 10.2.2.6.As part of the communication process, the sender is responsible for the transmission of the message, ensuring the information being communicated is clear and complete, and conﬁrming the message is correctly interpreted. The receiver is responsible for ensuring that the information is received in its entirety, interpreted correctly, and acknowledged or responded to appropriately. These components take place in an environment where there will likely be noise and other barriers to effective communication.

��373Cross-cultural communication presents challenges to ensuring that the meaning of the message has been understood. Differences in communication styles can arise from differences in working methods, age, nationality, professional discipline, ethnicity, race, or gender. People from different cultures communicate using different languages (e.g., technical design documents, different styles) and expect different processes and protocols.The communication model shown in Figure 10-4 incorporates the idea that the message itself and how it is transmitted are inﬂuenced by the sender’s current emotional state, knowledge, background, personality, culture, and biases. Similarly, the receiver’s emotional state knowledge, background, personality, culture, and biases will inﬂuence how the message is received and interpreted, and will contribute to the barriers or noise.This communication model and its enhancements can assist in developing communication strategies and plans for person-to-person or even small group to small group communications. It is not useful for other communications artifacts such as emails, broadcast messages, or social media.Figure 10-4. Communication Model for Cross-Cultural CommunicationSenderEncodeDecodeReceiverDecodeEncodeTransmitMessageFeedbackMessageCurrent EmotionalStateCulture:• Generational• National• Professional discipline• GenderPersonalitybiases(assumptions)CurrentEmotionalStateCulture:• Generational• National• Professional discipline• GenderPersonality biases (assumptions)NoiseMediumNoiseNoiseAcknowledgeMessage

374 Part 1 – Guide10.1.2.5 COMMUNICATION METHODSThere are several communication methods that are used to share information among project stakeholders. These methods are broadly classiﬁed as follows:uuInteractive communication. Between two or more parties performing a multidirectional exchange of information in real time. It employs communications artifacts such as meetings, phone calls, instant messaging, some forms of social media, and videoconferencing.uuPush communication. Sent or distributed directly to speciﬁc recipients who need to receive the information. This ensures that the information is distributed but does not ensure that it actually reached or was understood by the intended audience. Push communications artifacts include letters, memos, reports, emails, faxes, voice mails, blogs, and press releases.uuPull communication. Used for large complex information sets, or for large audiences, and requires the recipients to access content at their own discretion subject to security procedures. These methods include web portals, intranet sites, e-learning, lessons learned databases, or knowledge repositories.Different approaches should be applied to meet the needs of the major forms of communication deﬁned in the communications management plan:uuInterpersonal communication. Information is exchanged between individuals, typically face-to-face.uuSmall group communication. Occurs within groups of around three to six people.uuPublic communication. A single speaker addressing a group of people.uuMass communication. There is a minimal connection between the person or group sending the message and the large, sometimes anonymous groups for whom the information is intended.uuNetworks and social computing communication. Supports emerging communication trends of many-to-many supported by social computing technology and media.

��375Possible communications artifacts and methods include but are not limited to:uuNotice boards,uuNewsletters/in-house magazines/e-magazines,uuLetters to staff/volunteers,uuPress releases,uuAnnual reports,uuEmails and intranets,uuWeb portals and other information repositories (for pull communication)uuPhone conversations,uuPresentations,uuTeam brieﬁngs/group meetings,uuFocus groups,uuFace-to-face formal or informal meetings between various stakeholders,uuConsultation groups or staff forums, anduuSocial computing technology and media.10.1.2.6 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to:uuCommunication styles assessment. A technique used to assess communication styles and identify the preferred communication method, format, and content for planned communication activities. Often used with unsupportive stakeholders, this assessment may follow a stakeholder engagement assessment (described in Section 13.2.2.5) to identify gaps in stakeholder engagement that require additional tailored communication activities and artifacts.

376 Part 1 – GuideuuPolitical awareness. Political awareness helps the project manager to plan communications based on the project environment as well as the organization’s political environment. Political awareness concerns the recognition of power relationships, both formal and informal, and also the willingness to operate within these structures. An understanding of the strategies of the organization, knowing who wields power and inﬂuence in this arena, and developing an ability to communicate with these stakeholders are all aspects of political awareness.uuCultural awareness. Cultural awareness is an understanding of the differences between individuals, groups, and organizations and adapting the project’s communication strategy in the context of these differences. This awareness and any consequent actions minimize misunderstandings and miscommunication that may result from cultural differences within the project’s stakeholder community. Cultural awareness and cultural sensitivity help the project manager to plan communications based on the cultural differences and requirements of stakeholders and team members.10.1.2.7 DATA REPRESENTATIONA data representation technique that can be used for this process includes but is not limited to a stakeholder engagement assessment matrix. Described in Section 13.2.2.5. The stakeholder engagement assessment matrix, shown in Figure 13-6, displays gaps between current and desired engagement levels of individual stakeholders, it can be further analyzed in this process to identify additional communication requirements (beyond the regular reports) as a method to close any engagement level gaps.10.1.2.8 MEETINGSProject meetings can include virtual (e-meetings) or face-to-face meetings, and can be supported with document collaboration technologies, including email messages and project websites. The Plan Communications Management process requires discussion with the project team to determine the most appropriate way to update and communicate project information, and to respond to requests from various stakeholders for information.

��37710.1.3 PLAN COMMUNICATIONS MANAGEMENT: OUTPUTS10.1.3.1 COMMUNICATIONS MANAGEMENT PLANThe communications management plan is a component of the project management plan that describes how project communications will be planned, structured, implemented, and monitored for effectiveness. The plan contains the following information:uuStakeholder communication requirements;uuInformation to be communicated, including language, format, content, and level of detail;uuEscalation processes;uuReason for the distribution of that information;uuTimeframe and frequency for the distribution of required information and receipt of acknowledgment or response, if applicable;uuPerson responsible for communicating the information;uuPerson responsible for authorizing release of conﬁdential information;uuPerson or groups who will receive the information, including information about their needs, requirements, and expectations;uuMethods or technologies used to convey the information, such as memos, email, press releases, or social media;uuResources allocated for communication activities, including time and budget;uuMethod for updating and reﬁning the communications management plan as the project progresses and develops, such as when the stakeholder community changes as the project moves through different phases;uuGlossary of common terminology;uuFlow charts of the information ﬂow in the project, workﬂows with possible sequence of authorization, list of reports, meeting plans, etc.; anduuConstraints derived from speciﬁc legislation or regulation, technology, organizational policies, etc.The communications management plan can include guidelines and templates for project status meetings, project team meetings, e-meetings, and email messages. The use of a project website and project management software can be included if these are to be used in the project.

378 Part 1 – Guide10.1.3.2 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to the stakeholder engagement plan, which is described in Section 13.2.3.1. The stakeholder engagement plan is updated to reﬂect any processes, procedures, tools, or techniques that affect the engagement of stakeholders in project decisions and execution. 10.1.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuProject schedule. Described in Section 6.5.3.2. The project schedule may be updated to reﬂect communication activities.uuStakeholder register. Described in Section 13.1.3.1.The stakeholder register may be updated to reﬂect communications planned.

��37910.2 MANAGE COMMUNICATIONSManage Communications is the process of ensuring timely and appropriate collection, creation, distribution, storage, retrieval, management, monitoring, and the ultimate disposition of project information. The key beneﬁt of this process is that it enables an efﬁcient and effective information ﬂow between the project team and the stakeholders. This process is performed throughout the project.The Manage Communications process identiﬁes all aspects of effective communication, including choice of appropriate technologies, methods, and techniques. In addition, it should allow for ﬂexibility in the communications activities, allowing adjustments in the methods and techniques to accommodate the changing needs of stakeholders and the project. The inputs, tools, techniques, and outputs of this process are depicted in Figure 10-5. Figure 10-6 depicts the data ﬂow diagram of the Manage Communications process.Figure 10-5. Manage Communications: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsManage Communications.1 Communication technology.2 Communication methods.3 Communication skills• Communication competence• Feedback• Nonverbal• Presentations.4 Project management information system.5 Project reporting.6 Interpersonal and team skills• Active listening• Conflict management• Cultural awareness• Meeting management• Networking• Political awareness.7 Meetings.1 Project management plan• Resource management plan• Communications management plan• Stakeholder engagement plan.2 Project documents• Change log• Issue log• Lessons learned register• Quality report• Risk report• Stakeholder register.3 Work performance reports.4 Enterprise environmental factors.5 Organizational process assets.1 Project communications.2 Project management plan updates• Communications management plan• Stakeholder engagement plan.3 Project documents updates• Issue log• Lessons learned register• Project schedule• Risk register• Stakeholder register.4 Organizational process assets updates

380 Part 1 – GuideEnterprise/Organization• Project charter4.5Monitor and ControlProject WorkProject management plan• Resource management plan• Communications management plan • Stakeholder engagement planProject documents• Change log• Issue log• Lessons learned register• Quality report• Risk report• Stakeholder register• Work performance reportsProjectManagementPlanProjectDocumentsProjectDocuments10.2ManageCommunicationsEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Project communicationsProject documents updates • Issue log• Lessons learned register• Project schedule• Risk register• Stakeholder registerProject management plan updates• Communicationsmanagement plan • Stakeholderengagement plan• Organizational processassets updatesProjectManagementPlanFigure 10-6. Manage Communications: Data Flow Diagram

��381This process goes beyond the distribution of relevant information and seeks to ensure that the information being communicated to project stakeholders has been appropriately generated and formatted, and received by the intended audience. It also provides opportunities for stakeholders to make requests for further information, clariﬁcation, and discussion. Techniques and considerations for effective communications management include but are not limited to:uuSender-receiver models. Incorporating feedback loops to provide opportunities for interaction/participation and remove barriers to effective communication.uuChoice of media. Decisions about application of communications artifacts to meet speciﬁc project needs, such as when to communicate in writing versus orally, when to prepare an informal memo versus a formal report, and when to use push/pull options and the choice of appropriate technology.uuWriting style. Appropriate use of active versus passive voice, sentence structure, and word choice.uuMeeting management. Described in Section 10.2.2.6. Preparing an agenda, inviting essential participants, and ensuring they attend. Dealing with conﬂicts within the meeting or resulting from inadequate follow-up of minutes and actions, or attendance of the wrong people.uuPresentations. Awareness of the impact of body language and design of visual aids.uuFacilitation. Described in Section 4.1.2.3. Building consensus and overcoming obstacles such as difﬁcult group dynamics, and maintaining interest and enthusiasm among group members.uuActive listening. Described in Section 10.2.2.6. Listening actively involves acknowledging, clarifying and conﬁrming, understanding, and removing barriers that adversely affect comprehension.10.2.1 MANAGE COMMUNICATIONS: INPUTS10.2.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan describes the communications that are needed for management of team or physical resources.uuCommunications management plan. Described in Section 10.1.3.1. The communications management plan describes how project communications will be planned, structured, monitored, and controlled.uuStakeholder engagement plan. Described in detail in Section 13.2.3.1. The stakeholder engagement plan describes how stakeholders will be engaged through appropriate communication strategies.

382 Part 1 – Guide10.2.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited touuChange log. Described in Section 4.6.3.3. The change log is used to communicate changes and approved, deferred, and rejected change requests to the impacted stakeholders.uuIssue log. Described in Section 4.6.3.3. Information about issues is communicated to impacted stakeholders.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project with regard to managing communications can be applied to later phases in the project to improve the efﬁciency and effectiveness of communications and the communication process.uuQuality report. Described in Section 8.2.3.1. Information in the quality report includes quality issues, project and product improvements, and process improvements. This information is forwarded to those who can take corrective actions in order to achieve the project quality expectations.uuRisk report. Described in Section 11.2.3.2. The risk report presents information on sources of overall project risk, together with summary information on identiﬁed individual project risks. This information is communicated to risk owners and other impacted stakeholders.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register identiﬁes the individuals, groups, or organizations that will need various types of information.10.2.1.3 WORK PERFORMANCE REPORTSDescribed in Section 4.5.3.1. Work performance reports are circulated to the project stakeholders through this process as deﬁned in the communications management plan. Examples of work performance reports include status reports and progress reports. Work performance reports can contain earned value graphs and information, trend lines and forecasts, reserve burndown charts, defect histograms, contract performance information, and risk summaries. They can be presented as dashboards, heat reports, stop light charts, or other representations useful for creating awareness and generating decisions and actions.

��38310.2.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence this process include but are not limited to:uuOrganizational culture, political climate, and governance framework;uuPersonnel administration policies;uuStakeholder risk thresholds;uuEstablished communication channels, tools, and systems;uuGlobal, regional, or local trends and practices or habits; anduuGeographic distribution of facilities and resources.10.2.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence this process include but are not limited to:uuCorporate policies and procedures for social media, ethics, and security;uuCorporate policies and procedures for issue, risk, change, and data management;uuOrganizational communication requirements;uuStandardized guidelines for development, exchange, storage, and retrieval of information; anduuHistorical information from previous projects, including the lessons learned repository.10.2.2 MANAGE COMMUNICATIONS: TOOLS AND TECHNIQUES10.2.2.1 COMMUNICATION TECHNOLOGYDescribed in Section 10.1.2.3. Factors that inﬂuence the technology include whether the team is colocated, the conﬁdentiality of any information that needs to be shared, resources available to the team members, and how the organization’s culture inﬂuences the way in which meetings and discussions are normally conducted.10.2.2.2 COMMUNICATION METHODSDescribed in Section 10.1.2.5. The choice of communication methods should allow ﬂexibility in the event that the membership of the stakeholder community changes or their needs and expectations change.

384 Part 1 – Guide10.2.2.3 COMMUNICATION SKILLSCommunication techniques that can be used for this process include but are not limited to:uuCommunication competence. A combination of tailored communication skills that considers factors such as clarity of purpose in key messages, effective relationships and information sharing, and leadership behaviors.uuFeedback. Feedback is information about reactions to communications, a deliverable, or a situation. Feedback supports interactive communication between the project manager, team and all other project stakeholders. Examples include coaching, mentoring, and negotiating.uuNonverbal. Examples of nonverbal communication include appropriate body language to transmit meaning through gestures, tone of voice, and facial expressions. Mirroring and eye contact are also important techniques. The team members should be aware of how they are expressing themselves both through what they say and what they don’t say.uuPresentations. A presentation is the formal delivery of information and/or documentation. Clear and effective presentations of project information to relevant stakeholders can include but are not limited to:unProgress reports and information updates to stakeholders;unBackground information to support decision making;unGeneral information about the project and its objectives, for the purposes of raising the proﬁle of the work of the project and the team; andunSpeciﬁc information aimed at increasing understanding and support of the work and objectives of the project.Presentations will be successful when the content and delivery take the following into account:unThe audience, their expectations, and needs; andunThe needs and objectives of the project and project team.

38510.2.2.4 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems can ensure that stakeholders can easily retrieve the information they need in a timely way. Project information is managed and distributed using a variety of tools, including:uuElectronic project management tools. Project management software, meeting and virtual ofﬁce support software, web interfaces, specialized project portals and dashboards, and collaborative work management tools.uuElectronic communications management. Email, fax, and voice mail; audio, video and web conferencing; and websites and web publishing.uuSocial media management. Websites and web publishing; and blogs and applications, which offer the opportunity to engage with stakeholders and form online communities.10.2.2.5 PROJECT REPORTINGProject reporting is the act of collecting and distributing project information. Project information is distributed to many groups of stakeholders and should be adapted to provide information at an appropriate level, format, and detail for each type of stakeholder. The format may range from a simple communication to more elaborate custom reports and presentations. Information may be prepared regularly or on an exception basis. While work performance reports are the output of the Monitor and Control Project Work process, this process develops ad hoc reports, project presentations, blogs, and other types of communication about the project.

386 Part 1 – Guide10.2.2.6 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to:uuActive listening. Techniques of active listening involve acknowledging, clarifying and conﬁrming, understanding, and removing barriers that adversely affect comprehension.uuConflict management. Described in Section 9.5.2.1.uuCultural awareness. Described in Section 10.1.2.6.uuMeeting management. Meeting management is taking steps to ensure meetings meet their intended objectives effectively and efﬁciently. The following steps should be used for meeting planning:unPrepare and distribute the agenda stating the objectives of the meeting.unEnsure that the meetings start and ﬁnish at the published time.unEnsure the appropriate participants are invited and attend.unStay on topic.unManage expectations, issues, and conﬂicts during the meeting.unRecord all actions and those who have been allocated the responsibility for completing the action.uuNetworking. Networking is interacting with others to exchange information and develop contacts. Networks provide project managers and their teams with access to informal organizations to solve problems, inﬂuence actions of their stakeholders, and increase stakeholder support for the work and outcomes of the project, thus improving performance.uuPolitical awareness. Described in Section 10.1.2.6. Political awareness assists the project manager in engaging stakeholders appropriately to maintain their support throughout the project.10.2.2.7 MEETINGSMeetings support the actions deﬁned in the communication strategy and communications plan.

��38710.2.3 MANAGE COMMUNICATIONS: OUTPUTS10.2.3.1 PROJECT COMMUNICATIONSProject communications artifacts may include but are not limited to: performance reports, deliverable status, schedule progress, cost incurred, presentations, and other information required by stakeholders.10.2.3.2 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components of the project management plan that may be updated as a result of carrying out this process include but are not limited to:uuCommunications management plan. Described in Section 10.1.3.1. When changes are made to the project communications approach as a result of this process, these changes are reflected in the project communications plan.uuStakeholder engagement plan. Described in Section 13.2.3.1. Stakeholder communication requirements and agreed-upon communications strategies are updated as a result of this process.10.2.3.3 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuIssue log. Described in Sections 4.3.3.3. The issue log is updated to reﬂect any communication issues on the project, or how any communications have been used to impact active issues.uuLessons learned register. Described in Section 4.3.3.1. The lessons learned register is updated with information on challenges encountered and how they could have been avoided as well as approaches that worked well and what did not work well for managing communications.uuProject schedule. Described in Section 6.5.3.2. The project schedule may be updated to reﬂect the status of communication activities.uuRisk register. Described in Section 11.2.3.1. The risk register is updated to capture risks associated with managing communications.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register can be updated to include information regarding communications activities with project stakeholders.

388 Part 1 – Guide10.2.3.4 ORGANIZATIONAL PROCESS ASSETS UPDATESOrganizational process assets that may be updated as a result of this process include but are not limited to:uuProject records such as correspondence, memos, meeting minutes and other documents used on the project; anduuPlanned and ad hoc project reports and presentations.10.3 MONITOR COMMUNICATIONSMonitor Communications is the process of ensuring the information needs of the project and its stakeholders are met. The key beneﬁt of this process is the optimal information ﬂow as deﬁned in the communications management plan and the stakeholder engagement plan. This process is performed throughout the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 10-7. Figure 10-8 depicts the data ﬂow diagram for the process.Figure 10-7. Monitor Communications: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsMonitor Communications.1 Project management plan• Resource management plan• Communications management plan• Stakeholder engagement plan.2 Project documents• Issue log• Lessons learned register• Project communications.3 Work performance data.4 Enterprise environmental factors.5 Organizational process assets.1 Expert judgment.2 Project management information system.3 Data analysis• Stakeholder engagement assessment matrix.4 Interpersonal and team skills• Observation/conversation.5 Meetings.1 Work performance information.2 Change requests.3 Project management plan updates• Communications management plan• Stakeholder engagement plan.4 Project documents updates• Issue log• Lessons learned register• Stakeholder register

��389• Project charter4.3Direct andManageProject WorkProject management plan• Resource management plan• Communications management plan • Stakeholder engagement planProject documents• Issue log• Lessons learned register• Project communications• Work performance reportsProjectManagementPlanProjectDocumentsProjectDocuments10.3MonitorCommunicationsEnterprise/Organization• Enterprise environmental factors• Organizational process assets• Work performance information• Change requestsProject management plan updates• Communicationsmanagement plan • Stakeholderengagement planProject documents updates:• Issue log• Lessons learned register• Stakeholder registerProjectManagementPlan4.6PerformIntegratedChange Control4.5Monitor and ControlProject WorkFigure 10-8. Monitor Communications: Data Flow DiagramMonitor Communications determines if the planned communications artifacts and activities have had the desired effect of increasing or maintaining stakeholders’ support for the project’s deliverables and expected outcomes. The impact and consequences of project communications should be carefully evaluated and monitored to ensure that the right message with the right content (the same meaning for sender and receiver) is delivered to the right audience, through the right channel, and at the right time. Monitor Communications may require a variety of methods, such as customer satisfaction surveys, collecting lessons learned, observations of the team, reviewing data from the issue log, or evaluating changes in the stakeholder engagement assessment matrix described in Section 13.2.2.5.The Monitor Communications process can trigger an iteration of the Plan Communications Management and/or Manage Communications processes to improve effectiveness of communication through additional and possibly amended communications plans and activities. Such iterations illustrate the continuous nature of the Project Communications Management processes. Issues or key performance indicators, risks, or conﬂicts may trigger an immediate revision.

390 Part 1 – Guide10.3.1 MONITOR COMMUNICATIONS: INPUTS10.3.1.1 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. Project management plan components include but are not limited to:uuResource management plan. Described in Section 9.1.3.1. The resource management plan can be used to understand the actual project organization and any changes through understanding of roles and responsibilities and the project organization charts.uuCommunications management plan. Described in Section 10.1.3.1. The communications management plan contains the current plan for collecting, creating, and distributing information in a timely manner. It identiﬁes the team members, stakeholders, and the work involved in the communication process.uuStakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan identiﬁes the communication strategies that are planned to engage stakeholders.10.3.1.2 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. The issue log provides the project’s history, a record of stakeholder engagement issues, and how they were resolved.uuLessons learned register. Described in Section 4.4.3.1. Lessons learned earlier in the project can be applied to later phases in the project to improve communication effectiveness.uuProject communications. Described in Section 10.2.3.1. Provides information about communications that have been distributed.10.3.1.3 WORK PERFORMANCE DATADescribed in Section 4.3.3.2. Work performance data contains data on the types and quantities of communications that have actually been distributed.

39110.3.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Monitor Communications process include but are not limited to:uuOrganizational culture, political climate, and governance framework;uuEstablished communication channels, tools, and systems;uuGlobal, regional, or local trends, practices, or habits; anduuGeographic distribution of facilities and resources.10.3.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that may inﬂuence the Monitor Communications process include but are not limited to:uuCorporate policies and procedures for social media, ethics, and security;uuOrganizational communication requirements;uuStandardized guidelines for development, exchange, storage, and retrieval of information;uuHistorical information and lessons learned repository from previous projects; anduuStakeholder and communications data and information from previous projects.10.3.2 MONITOR COMMUNICATIONS: TOOLS AND TECHNIQUES10.3.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuCommunications with the public, the community, and the media, and, in an international environment, between virtual groups; anduuCommunications and project management systems.

392 Part 1 – Guide10.3.2.2 PROJECT MANAGEMENT INFORMATION SYSTEM (PMIS)Described in Section 4.3.2.2. Project management information systems provides a set of standard tools for the project manager to capture, store, and distribute information to internal and external stakeholders with the information they need according the communications plan. The information contained in the system is monitored to assess its validity and effectiveness.10.3.2.3 DATA REPRESENTATIONA data representation technique that can be used includes but is not limited to the stakeholder engagement assessment matrix (Section 13.2.2.5), which can provide information about the effectiveness of the communications activities. This is achieved by reviewing changes between desired and current engagement and adjusting communications as necessary.10.3.2.4 INTERPERSONAL AND TEAM SKILLSInterpersonal and team skills that can be used for this process include but are not limited to observation/conversation as described in Section 5.2.2.6. Discussion and dialogue with the project team helps determine the most appropriate way to update and communicate project performance, and to respond to requests from stakeholders for information. Observation and conversation enables the project manager to identify issues within the team, conﬂicts between people, or individual performance issues.10.3.2.5 MEETINGSFace-to-face or virtual meetings are used for decision making; responding to stakeholder requests; and having discussions with suppliers, vendors, and other project stakeholders.10.3.3 MONITOR COMMUNICATIONS: OUTPUTS10.3.3.1 WORK PERFORMANCE INFORMATIONDescribed in Section 4.5.1.3. Work performance information includes information on how project communication is performing by comparing the communications that were implemented compared to those that were planned. It also considers feedback on communications, such as survey results on communication effectiveness.

��39310.3.3.2 CHANGE REQUESTSDescribed in Section 4.3.3.4. The Monitor Communications process often results in the need for adjustment, action, and intervention on communications activities deﬁned in the communications management plan. Change requests are processed through the Perform Integrated Change Control process (Section 4.6).These change requests may result in:uuRevision of stakeholder communication requirements, including stakeholders’ information distribution, content or format, and distribution method; anduuNew procedures to eliminate bottlenecks.10.3.3.3 PROJECT MANAGEMENT PLAN UPDATESAny change to the project management plan goes through the organization’s change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:uuCommunications management plan. Described in Section 10.1.3.1. The communications management plan is updated with new information to make communication more effective.uuStakeholder engagement plan. Described in Section 13.2.3.1. The stakeholder engagement plan is updated to reﬂect the actual situation of stakeholders, their communication needs, and their importance.10.3.3.4 PROJECT DOCUMENTS UPDATESProject documents that may be updated as a result of carrying out this process include but are not limited to:uuIssue log. Described in Section 4.3.3.3. The issue log may be updated with new information on issues raised, their progress, and resolution.uuLessons learned register. Described in Section 4.4.3.1. The lessons learned register may be updated with causes of issues, reasons behind the corrective actions chosen, and other communication lessons learned as appropriate.uuStakeholder register. Described in Section 13.1.3.1. The stakeholder register may be updated with revised stakeholder communication requirements.

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��39511PROJECT RISK MANAGEMENTProject Risk Management includes the processes of conducting risk management planning, identiﬁcation, analysis, response planning, response implementation, and monitoring risk on a project. The objectives of project risk management are to increase the probability and/or impact of positive risks and to decrease the probability and/or impact of negative risks, in order to optimize the chances of project success.The Project Risk Management processes are:11.1 Plan Risk Management—The process of defining how to conduct risk management activities for a project.11.2 Identify Risks—The process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics.11.3 Perform Qualitative Risk Analysis—The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics.11.4 Perform Quantitative Risk Analysis—The process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.11.5 Plan Risk Responses—The process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks.11.6 Implement Risk Responses—The process of implementing agreed-upon risk response plans.11.7 Monitor Risks—The process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project.Figure 11-1 provides an overview of the Project Risk Management processes. The Project Management Risk processes are presented as discrete processes with deﬁned interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in this PMBOK® Guide.

396 Part 1 – GuideFigure 11-1. Project Risk Management Overview.1 Inputs .1 Project charter .2 Project management plan .3 Project documents .4 Enterprise environmental factors .5 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data analysis .3 Meetings.3 Outputs .1 Risk management planProject RiskManagement Overview11.1 PlanRisk Management.1 Inputs .1 Project management plan .2 Project documents .3 Agreements .4 Procurement documentation .5 Enterprise environmental factors .6 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Data analysis .4 Interpersonal and team skills .5 Prompt lists .6 Meetings. 3 Outputs .1 Risk register .2 Risk report .3 Project documents updates11.2 Identify Risks.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets .2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Data analysis .4 Interpersonal and team skills .5 Risk categorization .6 Data representation .7 Meetings.3 Outputs .1 Project documents updates11.4 PerformQuantitative Risk Analysis1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Interpersonal and team skills .4 Strategies for threats .5 Strategies for opportunities .6 Contingent response strategies .7 Strategies for overall project risk .8 Data analysis .9 Decision making.3 Outputs .1 Change requests .2 Project management plan updates .3 Project documents updates11.5 PlanRisk Responses.1 Inputs .1 Project management plan .2 Project documents .3 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Interpersonal and team skills .3 Project management information system.3 Outputs .1 Change requests .2 Project documents updates11.6 ImplementRisk Responses .1 Inputs .1 Project management plan .2 Project documents .3 Work performance data .4 Work performance reports.2 Tools & Techniques .1 Data analysis .2 Audits .3 Meetings.3 Outputs .1 Work performance information .2 Change requests .3 Project management plan updates .4 Project documents updates .5 Organizational process assets updates11.7 Monitor Risks.1 Inputs .1 Project management plan .2 Project documents .3 Enterprise environmental factors .4 Organizational process assets.2 Tools & Techniques .1 Expert judgment .2 Data gathering .3 Interpersonal and team skills .4 Representations of uncertainty .5 Data analysis.3 Outputs .1 Project documents updates11.3 PerformQualitative Risk Analysis

��397KEY CONCEPTS FOR PROJECT RISK MANAGEMENTAll projects are risky since they are unique undertakings with varying degrees of complexity that aim to deliver beneﬁts. They do this in a context of constraints and assumptions, while responding to stakeholder expectations that may be conﬂicting and changing. Organizations should choose to take project risk in a controlled and intentional manner in order to create value while balancing risk and reward.Project Risk Management aims to identify and manage risks that are not addressed by the other project management processes. When unmanaged, these risks have the potential to cause the project to deviate from the plan and fail to achieve the deﬁned project objectives. Consequently, the effectiveness of Project Risk Management is directly related to project success.Risk exists at two levels within every project. Each project contains individual risks that can affect the achievement of project objectives. It is also important to consider the riskiness of the overall project, which arises from the combination of individual project risks and other sources of uncertainty. Project Risk Management processes address both levels of risk in projects, and these are deﬁned as follows:uuIndividual project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.uuOverall project risk is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.Individual project risks can have a positive or negative effect on project objectives if they occur. Project Risk Management aims to exploit or enhance positive risks (opportunities) while avoiding or mitigating negative risks (threats). Unmanaged threats may result in issues or problems such as delay, cost overruns, performance shortfall, or loss of reputation. Opportunities that are captured can lead to beneﬁts such as reduced time and cost, improved performance, or reputation.Overall project risk can also be positive or negative. Management of overall project risk aims to keep project risk exposure within an acceptable range by reducing drivers of negative variation, promoting drivers of positive variation, and maximizing the probability of achieving overall project objectives.

398 Part 1 – GuideRisks will continue to emerge during the lifetime of the project, so Project Risk Management processes should be conducted iteratively. Risk is initially addressed during project planning by shaping the project strategy. Risk should also be monitored and managed as the project progresses to ensure that the project stays on track and emergent risks are addressed.In order to manage risk effectively on a particular project, the project team needs to know what level of risk exposure is acceptable in pursuit of the project objectives. This is deﬁned by measurable risk thresholds that reﬂect the risk appetite of the organization and project stakeholders. Risk thresholds express the degree of acceptable variation around a project objective. They are explicitly stated and communicated to the project team and reﬂected in the deﬁnitions of risk impact levels for the project.TRENDS AND EMERGING PRACTICES IN PROJECT RISK MANAGEMENTThe focus of project risk management is broadening to ensure that all types of risk are considered, and that project risks are understood in a wider context. Trends and emerging practices for Project Risk Management include but are not limited to:uuNon-event risks. Most projects focus only on risks that are uncertain future events that may or may not occur. Examples of event-based risks include: a key seller may go out of business during the project, the customer may change the requirement after design is complete, or a subcontractor may propose enhancements to the standard operating processes.There is an increasing recognition that non-event risks need to be identiﬁed and managed. There are two main types of non-event risks:unVariability risk. Uncertainty exists about some key characteristics of a planned event or activity or decision. Examples of variability risks include: productivity may be above or below target, the number of errors found during testing may be higher or lower than expected, or unseasonal weather conditions may occur during the construction phase.unAmbiguity risk. Uncertainty exists about what might happen in the future. Areas of the project where imperfect knowledge might affect the project’s ability to achieve its objectives include: elements of the requirement or technical solution, future developments in regulatory frameworks, or inherent systemic complexity in the project.

399Variability risks can be addressed using Monte Carlo analysis, with the range of variation reﬂected in probability distributions, followed by actions to reduce the spread of possible outcomes. Ambiguity risks are managed by deﬁning those areas where there is a deﬁcit of knowledge or understanding, then ﬁlling the gap by obtaining expert external input or benchmarking against best practices. Ambiguity is also addressed through incremental development, prototyping, or simulation.uuProject resilience. The existence of emergent risk is becoming clear, with a growing awareness of so-called unknowable-unknowns. These are risks that can only be recognized after they have occurred. Emergent risks can be tackled through developing project resilience. This requires each project to have:unRight level of budget and schedule contingency for emergent risks, in addition to a speciﬁc risk budget for known risks;unFlexible project processes that can cope with emergent risk while maintaining overall direction toward project goals, including strong change management;unEmpowered project team that has clear objectives and that is trusted to get the job done within agreed-upon limits;unFrequent review of early warning signs to identify emergent risks as early as possible; andunClear input from stakeholders to clarify areas where the project scope or strategy can be adjusted in response to emergent risks.uuIntegrated risk management. Projects exist in an organizational context, and they may form part of a program or portfolio. Risk exists at each of these levels, and risks should be owned and managed at the appropriate level. Some risks identiﬁed at higher levels will be delegated to the project team for management, and some project risks may be escalated to higher levels if they are best managed outside the project. A coordinated approach to enterprise-wide risk management ensures alignment and coherence in the way risk is managed across all levels. This builds risk efﬁciency into the structure of programs and portfolios, providing the greatest overall value for a given level of risk exposure.

400 Part 1 – GuideTAILORING CONSIDERATIONSBecause each project is unique, it is necessary to tailor the way Project Risk Management processes are applied. Considerations for tailoring include but are not limited to:uuProject size. Does the project’s size in terms of budget, duration, scope, or team size require a more detailed approach to risk management? Or is it small enough to justify a simpliﬁed risk process?uuProject complexity. Is a robust risk approach demanded by high levels of innovation, new technology, commercial arrangements, interfaces, or external dependencies that increase project complexity? Or is the project simple enough that a reduced risk process will sufﬁce?uuProject importance. How strategically important is the project? Is the level of risk increased for this project because it aims to produce breakthrough opportunities, addresses signiﬁcant blocks to organizational performance, or involves major product innovation?uuDevelopment approach. Is this a waterfall project, where risk processes can be followed sequentially and iteratively, or does the project follow an agile approach where risk is addressed at the start of each iteration as well as during its execution?Tailoring of the Project Risk Management processes to meet these considerations is part of the Plan Risk Management process, and the outcomes of tailoring decisions are recorded in the risk management plan.CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTSHigh-variability environments, by deﬁnition, incur more uncertainty and risk. To address this, projects managed using adaptive approaches make use of frequent reviews of incremental work products and cross-functional project teams to accelerate knowledge sharing and ensure that risk is understood and managed. Risk is considered when selecting the content of each iteration, and risks will also be identiﬁed, analyzed, and managed during each iteration.Additionally, the requirements are kept as a living document that is updated regularly, and work may be reprioritized as the project progresses, based on an improved understanding of current risk exposure.

��40111.1 PLAN RISK MANAGEMENTPlan Risk Management is the process of deﬁning how to conduct risk management activities for a project. The key beneﬁt of this process is that it ensures that the degree, type, and visibility of risk management are proportionate to both risks and the importance of the project to the organization and other stakeholders. This process is performed once or at predeﬁned points in the project. The inputs, tools and techniques, and outputs of the process are depicted in Figure 11-2. Figure 11-3 depicts the data ﬂow diagram for the process.Figure 11-2. Plan Risk Management: Inputs, Tools & Techniques, and OutputsTools & TechniquesInputsOutputsPlan Risk Management.1 Expert judgment.2 Data analysis• Stakeholder analysis.3 Meetings.1 Project charter.2 Project management plan• All components.3 Project documents• Stakeholder register.4 Enterprise environmental factors.5 Organizational process assets.1 Risk management plan

402 Part 1 – Guide• Project charter11.1 Plan RiskManagementEnterprise/Organization4.1Develop ProjectCharter• Project charterProject documents• Stakeholder register• Enterprise environmental factors• Organizational process assetsProject ManagementPlanProject management plan• All componentsProjectManagementPlanProjectDocuments• Risk management planFigure 11-3. Plan Risk Management: Data Flow DiagramThe Plan Risk Management process should begin when a project is conceived and should be completed early in the project. It may be necessary to revisit this process later in the project life cycle, for example at a major phase change, or if the project scope changes signiﬁcantly, or if a subsequent review of risk management effectiveness determines that the Project Risk Management process requires modiﬁcation.11.1.1 PLAN RISK MANAGEMENT: INPUTS11.1.1.1 PROJECT CHARTERDescribed in Section 4.1.3.1. The project charter documents the high-level project description and boundaries, high-level requirements, and risks.

40311.1.1.2 PROJECT MANAGEMENT PLANDescribed in Section 4.2.3.1. In planning Project Risk Management, all approved subsidiary management plans should be taken into consideration in order to make the risk management plan consistent with them. The methodology outlined in other project management plan components might inﬂuence the Plan Risk Management process.11.1.1.3 PROJECT DOCUMENTSProject documents that can be considered as inputs for this process include but are not limited to the stakeholder register as described in Section 13.1.3.1. The stakeholder register contains details of the project’s stakeholders and provides an overview of their project roles and their attitude toward risk on this project. This is useful in determining roles and responsibilities for managing risk on the project, as well as setting risk thresholds for the project.11.1.1.4 ENTERPRISE ENVIRONMENTAL FACTORSThe enterprise environmental factors that can inﬂuence the Plan Risk Management process include but are not limited to overall risk thresholds set by the organization or key stakeholders.11.1.1.5 ORGANIZATIONAL PROCESS ASSETSThe organizational process assets that can inﬂuence the Plan Risk Management process include but are not limited to:uuOrganizational risk policy;uuRisk categories, possibly organized into a risk breakdown structure;uuCommon deﬁnitions of risk concepts and terms;uuRisk statement formats;uuTemplates for the risk management plan, risk register, and risk report;uuRoles and responsibilities;uuAuthority levels for decision making; anduuLessons learned repository from previous similar projects.

404 Part 1 – Guide11.1.2 PLAN RISK MANAGEMENT: TOOLS AND TECHNIQUES11.1.2.1 EXPERT JUDGMENTDescribed in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:uuFamiliarity with the organization’s approach to managing risk, including enterprise risk management where this is performed;uuTailoring risk management to the speciﬁc needs of a project; anduuTypes of risk that are likely to be encountered on projects in the same area.11.1.2.2 DATA ANALYSISData analysis techniques that can beused for this process includes but are not limited to a stakeholder analysis (Section 13.1.2.3) to determine the risk appetite of project stakeholders.11.1.2.3 MEETINGSThe risk management plan may be developed as part of the project kick-off meeting or a speciﬁc planning meeting may be held. Attendees may include the project manager, selected project team members, key stakeholders, or team members who are responsible to manage the risk management process on the project. Others outside the organization may also be invited, as needed, including customers, sellers, and regulators. A skilled facilitator can help participants remain focused on the task, agree on key aspects of the risk approach, identify and overcome sources of bias, and resolve any disagreements that may arise.Plans for conducting risk management activities are deﬁned in these meetings and documented in the risk management plan (see Section 11.1.3.1).

��40511.1.3 PLAN RISK MANAGEMENT: OUTPUTS11.1.3.1 RISK MANAGEMENT PLANThe risk management plan is a component of the project management plan that describes how risk management activities will be structured and performed. The risk management plan may include some or all of the following elements:uuRisk strategy. Describes the general approach to managing risk on this project.uuMethodology. Deﬁnes the speciﬁc approaches, tools, and data sources that will be used to perform risk management on the project.uuRoles and responsibilities. Deﬁnes the lead, support, and risk management team members for each type of activity described in the risk management plan, and clariﬁes their responsibilities.uuFunding. Identiﬁes the funds needed to perform activities related to Project Risk Management. Establishes protocols for the application of contingency and management reserves.uuTiming. Deﬁnes when and how often the Project Risk Management processes will be performed throughout the project life cycle, and establishes risk management activities for inclusion into the project schedule.uuRisk categories. Provide a means for grouping individual project risks. A common way to structure risk categories is with a risk breakdown structure (RBS), which is a hierarchical representation of potential sources of risk (see example in Figure 11-4). An RBS helps the project team consider the full range of sources from which individual project risks may arise. This can be useful when identifying risks or when categorizing identiﬁed risks. The organization may have a generic RBS to be used for all projects, or there may be several RBS frameworks for different types of projects, or the project may develop a tailored RBS. Where an RBS is not used, an organization may use a custom risk categorization framework, which may take the form of a simple list of categories or a structure based on project objectives.

406 Part 1 – GuideRBS LEVEL 00. ALL SOURCES OF PROJECT RISK1. TECHNICAL RISK2. MANAGEMENT RISK3. COMMERCIAL RISK4. EXTERNAL RISKRBS LEVEL 1RBS LEVEL 21.1 Scope definition1.2 Requirements definition1.3 Estimates, assumptions, and constraints1.4 Technical processes1.5 Technology1.6 Technical interfacesEtc.2.1 Project management2.2 Program/portfolio management2.3 Operations management2.4 Organization2.5 Resourcing2.6 CommunicationEtc.3.1 Contractual terms and conditions3.2 Internal procurement3.3 Suppliers and vendors 3.4 Subcontracts3.5 Client/customer stability3.6 Partnerships and joint venturesEtc.4.1 Legislation4.2 Exchange rates4.3 Site/facilities4.4 Environmental/weather4.5 Competition4.6 RegulatoryEtc.Figure 11-4. Extract from Sample Risk Breakdown Structure (RBS)

407uuStakeholder risk appetite. The risk appetites of key stakeholders on the project are recorded in the risk management plan, as they inform the details of the Plan Risk Management process. In particular, stakeholder risk appetite should be expressed as measurable risk thresholds around each project objective. These thresholds will determine the acceptable level of overall project risk exposure, and they are also used to inform the deﬁnitions of probability and impacts to be used when assessing and prioritizing individual project risks.uuDefinitions of risk probability and impacts. Deﬁnitions of risk probability and impact levels are speciﬁc to the project context and reﬂect the risk appetite and thresholds of the organization and key stakeholders. The project may generate speciﬁc deﬁnitions of probability and impact levels or it may start with general deﬁnitions provided by the organization. The number of levels reﬂects the degree of detail required for the Project Risk Management process, with more levels used for a more detailed risk approach (typically ﬁve levels), and fewer for a simple process (usually three). Table 11-1 provides an example of deﬁnitions of probability and impacts against three project objectives. These scales can be used to evaluate both threats and opportunities by interpreting the impact deﬁnitions as negative for threats (delay, additional cost, and performance shortfall) and positive for opportunities (reduced time or cost, and performance enhancement).Table 11-1. Example of Definitions for Probability and ImpactsSCALEPROBABILITYTIMECOSTQUALITY+/– IMPACT ON PROJECT OBJECTIVESVery significant impact on overall functionalitySignificant impact on overall functionalitySome impact in key functional areas Minor impact on overall functionalityMinor impact on secondary functionsNo change in functionalityVery HighHighMediumLowVery LowNil>70%51-70%31-50%11-30%1-10%<1%>6 months3-6 months1-3 months1-4 weeks1 weekNo change>$5M$1M-$5M$501K-$1M$100K-$500K<$100KNo change

408 Part 1 – GuideuuProbability and impact matrix. Described in Section 11.3.2.6. Prioritization rules may be speciﬁed by the organization in advance of the project and be included in organizational process assets, or they may be tailored to the speciﬁc project. Opportunities and threats are represented in a common probability and impact matrix using positive deﬁnitions of impact for opportunities and negative impact deﬁnitions for threats. Descriptive terms (such as very high, high, medium, low, and very low) or numeric values can be used for probability and impact. Where numeric values are used, these can be multiplied to give a probability-impact score for each risk, which allows the relative priority of individual risks to be evaluated within each priority level. An example probability and impact matrix is presented in Figure 11-5, which also shows a possible numeric risk scoring scheme.Figure 11-5. Example Probab