Process Groups & Processes
- 5 PM Process Groups
- Initiating Process Group
- Planning Process Group
- Executing Process Group
- Monitoring and Controlling Process Group
- Closing Process Group
Process Groups & Processes:
The processes are guides, and vary in actual application based on:
- Complexity
- Size
- Risk
- Time frame
- Project team's experience
- Access to resources
- Historical information available
- Organization's maturity in PM
- Industry and application area
Process Groups Overview:
Process Groups Overview
Process Groups Overview
Initiating
Defines and authorizes
Planning (Plan)
Defines and refines, plans course of action
Executing (Do)
Integrates people and resources, carry out
Monitoring and Controlling (Check & Act)
Measures and monitor progress and variance
Closing
Formalizes acceptance
- Process Groups Interactions
- Please refer to PMBOK Guide
- Please refer to Process Groups & Processes Handout at our website.
- A high level summary of Process Group's interactions
- Project Boundaries
Process Groups & Processes
Each Process Group has defined processes:
Initiating 2
Planning 24
Executing 8 Total : 47
Monitoring & Controlling 11
Closing 2
Each Process comprises:
Inputs
Tools and Techniques
Outputs
Process Groups Interaction:
Process Groups Triangle
Each process is defined within one of 10 Knowledge Areas:
1. Project Integration Management 6
2. Project Scope Management 6
3. Project Time Management 7
4. Project Cost Management 4
5. Project Quality Management 3
6. Project Human Resource Management 4
7. Project Communications Management 3
8. Project Risk Management 6
9. Project Procurement Management 4
10. Project Stakeholder Management 4
Knowledge Areas
Map of 5PG to 10KA
Please refer to PMBOK Guide Table 3-1 or
Process Group & Processes Handout on Our website
End
Questions?
Project Integration Management Introduction
Includes process needed to identify, define, combine & coordinate the various processes/activities with PM Process Groups.
Integration Management requires making choices about resource allocation, making trade-offs among competing objectives, and managing the interdependencies among PM Knowledge Areas.
What is the project manager’s main role?
Integration balances all the processes in the knowledge areas
( scope, time, cost, quality, HR, communications, risk,
procurement management) with each other.
Integration is pulling all the pieces together to get the
project done cheaper, faster, and with fewer resources,
while meeting the project objectives.
can have up to 15 questions from this KA.
Project Integration Management
Project Management requires you to negotiate,
communicate, coordinate with the different parties.
It requires you to use your leadership skills, planning,
record keeping, and political savvy.
It requires flexibility, and adaptability at all times.
PMP Exam Question:
An effective project integration generally requires focus on:
A)Managing the “product” of the project
B)Effective communications at key interface points
C)Timely updates to the overall project management plan
D)The personal careers of the team members
Project Integration Management
Develop Project Charter
The Project Charter formally authorizes a project or project
phase
Documents initial requirements that satisfies stakeholder’s
needs and expectations.
Signed by the Initiator/Sponsor and authorises the PM to use
resources and incur expenses for project related activities
It is not a detailed plan for the project but contain sufficient
information for decision makers
Issued by someone external to the project – sponsor,
PMO, or portfolio committee
Develop Project Charter
Additional Information Project Selection Methods
• Benefit Measurement Methods using comparisons
Murder Board
Peer Review
Scoring model
Economic models (Net Present Value)
Constrained Optimizations method (mathematical approach)
Additional Information Economic Models of Project Selection Benefit-cost Ratio (BCR)
= Expected revenue / Total Cost
BCR > 1, benefits greater than cost incurred
BCR = 1, benefits equal costs (break-even)
BCR < 1, benefits less than costs.
Additional Information
Sunk Costs
Costs that cannot be recovered once they have incurred. Ignored when making decisions about whether to continue investing in a project that is in progress
Opportunity Costs
The cost of everything we must give up in order to choose one alternative
For example, Project A has a benefit of $25,000 and project B has a benefit of $30,000. The opportunity cost of choosing Project A instead of Project B is $30,000.
Additional Information
Scoring Model (weighted-score model)
Weightings are given to specific elements of a bid, and the project is selected based on the total of the weighted scores for each element
Additional Information
Present Value (PV)
The value of work to be performed in the future in today’s value
Also known as Discounted Cash Flows
PV = FV / (1 + R)n
(where FV = Future Value, r = interest rate, n = number of time periods)
What is the present value of $300,000 in the bank received 3 years
from now if we expect the interest rate to be 10%?
PV = 300,000 / (1+0.10)3 = $225,394
Additional Information
Net Present Value (NPV)
The present value of the total benefits (income or revenue) less the cost over many time periods
Used to compare many projects to select the best one to initiate
NPV = (Sum of PV’s for each time period)-(Initial Investment)
Generally, if NPV >0, then the investment is a good choice( that is, the project will earn a return greater than or equal to the initial investment)
Projects with higher returns (cash inflows) are better projects to focus on
PMP Exam Question:
You have 2 projects to choose from. Kingfisher project will take 2 years to complete and has an NPV of $40,000. Barracuda project will take 3 years and has an NPV of $80,000. Which project will you prefer?
A)Kingfisher project.
B)Barracuda project.
C)Both projects have equal value.
D)None. A decision based on this information can’t be made.
Additional Information
Internal rate of Return (IRR)
Defined as the interest rate at which the project inflows (revenues) and outflows (costs) are equal
Complex calculation involving a computer
Select the project with the highest IRR
Payback Period
The number of time periods it takes to recover the project investment before accumulating profit
Time value of money is not considered
Output:
Project Charter
Formally authorizes the existence, purpose & justification for the project
Issued by upper management during the initiation phase
Authorizes the project manager to spend money and commit resources
Provides a general description of project objectives
Links the project to on-going work of the organization
Provides high-level requirements for the project and acceptance criteria
Broadly written, so it does not need to change as the project changes
Project Charter – Suggested Contents:
Project Title & Description
Project Manager and Authority Level (who is given authority to lead the project, and can they determine budget, schedule, staffing etc?)
Business Need
Project Justification
Stakeholders
Product Description
Deliverables, Success Criteria, who signs off the project
Constraints
High level Risks
Summary milestone schedule, Summary Budget
Sponsor’s Signature
PMP Exam Question:
The Minefield project is getting many changes to the project charter. Who has the primary responsibility to decide if these changes are necessary or not?
A)Project Manager
B)Project Team
C)Sponsor
D)Customer
Summary
The Project Charter
Project Selection Methods
Benefit-Cost Ratio (BCR)
Weighted Score Method
PV, NPV, IRR , Payback period
Sunk Cost and Opportunity Costs
PMConnecting People BonusQuality
Includes process needed to identify, define, combine & coordinate the various processes/activities with PM Process Groups.
Integration Management requires making choices about resource allocation, making trade-offs among competing objectives, and managing the interdependencies among PM Knowledge Areas.
What is the project manager’s main role?
Integration balances all the processes in the knowledge areas
( scope, time, cost, quality, HR, communications, risk,
procurement management) with each other.
Integration is pulling all the pieces together to get the
project done cheaper, faster, and with fewer resources,
while meeting the project objectives.
Be careful. Integration Management is a difficult area, and
Project Integration Management
Project Management requires you to negotiate,
communicate, coordinate with the different parties.
It requires you to use your leadership skills, planning,
record keeping, and political savvy.
It requires flexibility, and adaptability at all times.
PMP Exam Question:
An effective project integration generally requires focus on:
A)Managing the “product” of the project
B)Effective communications at key interface points
C)Timely updates to the overall project management plan
D)The personal careers of the team members
Project Integration Management
Develop Project Charter
The Project Charter formally authorizes a project or project
phase
Documents initial requirements that satisfies stakeholder’s
needs and expectations.
Signed by the Initiator/Sponsor and authorises the PM to use
resources and incur expenses for project related activities
It is not a detailed plan for the project but contain sufficient
information for decision makers
Issued by someone external to the project – sponsor,
PMO, or portfolio committee
Develop Project Charter
Inputs:
Project Statement of Work (SOW)
A description of the products or services to be produced by the project.
Can come from project initiator, sponsor or customer (RFP, RFQ)
Includes:
Business Need
Product scope description
Strategic plan (project support of the organization's strategic goals)
Business Case
Whether or not the project is worth the investment
Includes Cost Benefit Analysis (CBA)
Created when there is a Market demand, Organizational need, Customer request or Technological advance, Legal, Ecological, Social
Inputs:
Contract ( if done for External Customer)
Enterprise Environmental Factors
Organizational or company culture and structure
Government & industry standards
Marketplace conditions
Organizational Process Assets
Processes, procedures and policies
Corporate knowledge base – reports, risks, estimates, benchmarks
Lessons learned, Historical Information
Templates
Tools & Techniques:
Expert Judgment
Is often used to assess the inputs used to develop the project charter.
Provided by a group or individual with specialized knowledge or training
Includes source of information from:
Other units within the organization
Consultants
Stakeholders, including customers or sponsors
Professional and technical associations
Industry groups
Subject Matter Experts
Project Management Office (PMO)
• Benefit Measurement Methods using comparisons
Murder Board
Peer Review
Scoring model
Economic models (Net Present Value)
Constrained Optimizations method (mathematical approach)
Additional Information Economic Models of Project Selection Benefit-cost Ratio (BCR)
= Expected revenue / Total Cost
BCR > 1, benefits greater than cost incurred
BCR = 1, benefits equal costs (break-even)
BCR < 1, benefits less than costs.
Additional Information
Sunk Costs
Costs that cannot be recovered once they have incurred. Ignored when making decisions about whether to continue investing in a project that is in progress
Opportunity Costs
The cost of everything we must give up in order to choose one alternative
For example, Project A has a benefit of $25,000 and project B has a benefit of $30,000. The opportunity cost of choosing Project A instead of Project B is $30,000.
Additional Information
Scoring Model (weighted-score model)
Weightings are given to specific elements of a bid, and the project is selected based on the total of the weighted scores for each element
Additional Information
Present Value (PV)
The value of work to be performed in the future in today’s value
Also known as Discounted Cash Flows
PV = FV / (1 + R)n
(where FV = Future Value, r = interest rate, n = number of time periods)
What is the present value of $300,000 in the bank received 3 years
from now if we expect the interest rate to be 10%?
PV = 300,000 / (1+0.10)3 = $225,394
Additional Information
Net Present Value (NPV)
The present value of the total benefits (income or revenue) less the cost over many time periods
Used to compare many projects to select the best one to initiate
NPV = (Sum of PV’s for each time period)-(Initial Investment)
Generally, if NPV >0, then the investment is a good choice( that is, the project will earn a return greater than or equal to the initial investment)
Projects with higher returns (cash inflows) are better projects to focus on
PMP Exam Question:
You have 2 projects to choose from. Kingfisher project will take 2 years to complete and has an NPV of $40,000. Barracuda project will take 3 years and has an NPV of $80,000. Which project will you prefer?
A)Kingfisher project.
B)Barracuda project.
C)Both projects have equal value.
D)None. A decision based on this information can’t be made.
Additional Information
Internal rate of Return (IRR)
Defined as the interest rate at which the project inflows (revenues) and outflows (costs) are equal
Complex calculation involving a computer
Select the project with the highest IRR
Payback Period
The number of time periods it takes to recover the project investment before accumulating profit
Time value of money is not considered
Output:
Project Charter
Formally authorizes the existence, purpose & justification for the project
Issued by upper management during the initiation phase
Authorizes the project manager to spend money and commit resources
Provides a general description of project objectives
Links the project to on-going work of the organization
Provides high-level requirements for the project and acceptance criteria
Broadly written, so it does not need to change as the project changes
Project Charter – Suggested Contents:
Project Title & Description
Project Manager and Authority Level (who is given authority to lead the project, and can they determine budget, schedule, staffing etc?)
Business Need
Project Justification
Stakeholders
Product Description
Deliverables, Success Criteria, who signs off the project
Constraints
High level Risks
Summary milestone schedule, Summary Budget
Sponsor’s Signature
PMP Exam Question:
The Minefield project is getting many changes to the project charter. Who has the primary responsibility to decide if these changes are necessary or not?
A)Project Manager
B)Project Team
C)Sponsor
D)Customer
Summary
The Project Charter
Project Selection Methods
Benefit-Cost Ratio (BCR)
Weighted Score Method
PV, NPV, IRR , Payback period
Sunk Cost and Opportunity Costs
PMConnecting People BonusQuality
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