Integration Management

 Integration Management is split up into the following 5 Process Groups:

1) Develop Project Charter (IN)
2) Develop Project Management Plan (PL)
3) Direct & Manage Work (EX)
4) Manage Knowledge (EX)
5) Monitor & Control Work (M&C)
6) Perform Change Control (M&C)
7) Closing (Close)
 Purpose: All areas of project management do NOT occur independently from each other. Instead, each process occurs in-sync
with each other, and you need a process to help ‘integrate’ and coordinate everything together.
>> Think of this like a balancing act – you’re always juggling and putting all aspects of a project together.
Process #1: Develop Project Charter
1.1 Integration Mgmt: Develop Project Charter (IN)
-Pg 75, PMBOK 6th Ed.
Purpose: This process produces one of the most important project artifacts for initiating and proceeding with the next steps of a
project – the Project Charter. The Project Charter links the project to the organization’s goals, establishes a project’s formal
approval, and signifies to the entire Team the project’s importance and commitment from your organization’s leadership. 
ITTO Analysis: Develop Project Charter
1) What do You Need? (Input) 
– *Business Case, Agreements, EEF/OPA

2) What is the Result? (Output)

-Assumption Log, *Project Charter

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Meetings, Data Gathering, Interpersonal & Team Skills
>> Data Gathering: Interviews, Focus Groups, Brainstorming
>> Interpersonal & Team Skills: Managing Conflicts & Meetings, Facilitation
Key Concepts:
– The Project Charter is NOT a contract because money is not involved with the approval & signing off of the Project Charter.
Instead, it is a document which contains high-level information of the project, and is signed off by the Project Sponsor.

–  The Project Charter’s purpose is to formally authorize the existence of a project and to begin allocating resources.

– Throughout your project, you would typically reference the Project Charter to drive a common understanding of the project’s
goals, background, high-level requirements, and key milestones

– Understand the difference between the Business Case vs Project Charter:

>> Business Case captures the business need and an analysis (i.e. cost-benefit analysis) for determining whether the outcomes
of a project are worth the financial investment and application of all required resources. It is the key document used to create
the Project Charter.

– The Assumption Log documents exactly what it states… the assumptions of any of the project’s tasks. But, it also includes
any constraints for completing the work. 

Process #2: Develop Project Management Plan

1.2 Integration Mgmt: Develop Project Management Plan (PL)
-Pg 82, PMBOK 6th Ed.
Purpose: This process  is focused on creating the ultimate document, called the Project Management Plan, which defines what
work will be performed for your project and how you and your Team will execute this work.
>> Alvin’s Tip: Think of this as your project’s ‘Bible” and “Go-to Reference” for anything related to your project.
ITTO Analysis: Develop Project Management Plan
1) What do You Need? (Input) 
– *Project Charter, Other Process Outputs, EEF/OPA

2) What is the Result? (Output)

–*Project Management Plan
3) How Do You Accomplish It? (Tool/Technique)
-Expert Judgment, Meetings, Data Gathering, Interpersonal & Team Skills
>> Data Gathering: Checklists, Interviews, Focus Groups, Brainstorming
>> Interpersonal & Team Skills: Managing Conflicts & Meetings, Facilitation
Key Concepts:
– The Project Management Plan consists of :
>> (1) Ten Constituent Management Plans (i.e. from each Knowledge Area)
>> (2) Approved Project Baselines (Scope, Schedule, Cost)
>> (3) Other Elements (such as: project life cycle and development approach)  

– The subsidiary Management Plans are based upon the corresponding Knowledge Area: Scope & Requirements, Schedule, Cost,
Quality, Resource, Stakeholder, Communications, Risk, and Procurement. 

– Changes to the Project Management Plan can only be implemented after it has been approved through a Change Request via
the Integrated Change Control process (Alvin’s Tip: This concept is commonly tested on situational questions covered on the
PMP or CAPM Exam).

Key Terms to Remember:

– Scope Baseline: Includes the Scope Statement, WBS, and WBS Dictionary

– Schedule Baseline: The initial planned project schedule 

– Cost Baseline: Initially planned & approved project budget

– Change Management Plan: Outlines the process for how Change Requests are created, reviewed & approved throughout the
project’s lifecycle

– Configuration Management Plan: Focused on controlling the specification level of specific items

– Performance Measurement Baseline: This integrates the baselines for the triple constraints of scope, schedule, and cost
Process #3: Direct and Manage Project Work
1.3 Integration Mgmt: Direct and Manage Project Work (EX)
-Pg 90, PMBOK 6th Ed.
Purpose: Guiding & leading your team so that the project’s work can be executed, with the goal of completing the project’s
Deliverables
ITTO Analysis: Direct and Manage Project Work
1) What do You Need? (Input) 
– *Project Mgmt Plan, *Approved Change Requests, Project Documents, OPA/EEF
>> Project Documents: Lessons Learned Register, Change Log, Risk Documents (Risk Register, Risk Report), Requirements
Traceability Matrix, Project Schedule & Communications, Milestone List, 

2) What is the Result? (Output)

– *Deliverables; *Work Performance Data; Issue Log; Change Requests; and, Updates to Project Mgmt Plan, Project Documents,
& OPAs

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Meetings, *PMIS (aka. Project Mgmt Information System)
Key Concepts:
– During your project’s lifecycle, you will spend most of your time in this process group – leading your team and managing the
project’s work.

– Alvin’s Tip: This process is where you’ll be collecting Work Performance Data, producing the project’s
key Deliverables, collecting any in-process Lessons Learned, capturing any new issues or risks, with the end goal of
accomplishing your project’s objectives

– Remember that APPROVED Change Requests are an INPUT into Direct and Manage Project Work. The reason is that the
Change Requests must be approved before you can actually execute and implement them into your project’s plan.

– Change Requests is one of the Key Outputs of this process. As a result of performing your team’s work and creating Project
Deliverables, it’s inevitable for your Stakeholders to request for changes to the project documents or performance baselines. For
example, perhaps a risk came to fruition and the shipment of your raw material has been delayed by 4 more weeks. Therefore,
you and your Team will need to submit a Change Request to evaluate the project’s impact and request for an extension to the
schedule baseline.

– What is included as part of a Change Request?

>> Corrective & Preventive Actions, Defect Repair, or Updates to project documents

Key Terms to Remember:

– Change Requests: A formally documented “request” to update your project’s documents or performance baselines (scope,
schedule, and cost). These can be outputs from issues, and can be created by any stakeholder on your project. Remember – ANY
STAKEHOLDER can create a Change Request. 

– Work Performance Data: These are the raw data points, observations, or measurements collected while your team’s work is
being completed. For example, let’s say you’re reviewing your project’s performance. In this instance, a couple examples of
Work Performance Data would include actual completion dates of certain tasks, number of nonconformances discovered during
the manufacturing build, number of bugs found in the code, or actual cost spent thus far.

>> Alvin’s Tip – Make sure you thoroughly understand the difference between Work Performance Data vs Information vs
Reports.

– Deliverables: These are the outcomes of your project, and can include reports, documents, protocols, engineering drawings,
project management plans, etc, in order to complete your project
Process #4: Manage Project Knowledge
1.4 Integration Mgmt: Manage Project Knowledge (EX)
-Pg 98, PMBOK 6th Ed.
Purpose: Using knowledge that your team already has, and creating new knowledge in order to achieve the goals of the project.
In other words, how can we take advantage of the knowledge that our Team and organization already has and use this to
facilitate and lead our project? 
ITTO Analysis: Manage Project Knowledge
1) What do You Need? (Input) 
– Project Mgmt Plan, *Deliverables, Project Documents, OPA/EEF
>> Project Documents: Lessons Learned Register, Stakeholder Register, Team Assignments, Resource Breakdown Structure 
>> Keep in mind that the  Deliverables were an output of the previous process of  Direct and Manage Project Work

2) What is the Result? (Output)

– *Lessons Learned Register; and, Updates to Project Mgmt Plan & OPAs

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, *Knowledge Management, *Information Management, Interpersonal and Team Skills
>>Interpersonal and Team Skills: Active listening, Facilitation, Leadership, Networking, and Political Awareness
Key Concepts:
– Understand the difference between explicit and tacit knowledge
>> Explicit Knowledge – Knowledge which can be easily expressed with text, numbers, and visuals
>> Implicit Knowledge – Knowledge which is more challenging to express as this is inherent to the person’s beliefs, skillset, and
experience, and depends on the trust built in the environment

– This process is all about capturing the knowledge of the team members, sharing this with others to facilitate a knowledge
transfer and increase the likelihood of a project’s success. And, capturing these “lessons” into the lessons learned register

Key Terms to Remember:

*Understand the difference between Knowledge Management and Information Management:

(1) Knowledge Management: This is about sharing what people know. If this concept pops up on your exam, ask yourself, “what
are the ways to facilitate the sharing and creation of knowledge ?”
>> This sharing of knowledge can be accomplished through meetings,  discussions, forums, workshops, and training.

(2) Information Management: This is about creating information and connecting people to this information. Examples of this

include: Lessons Learned Register, a type of an online repository, Library, or a PMIS.
Process #5: Monitor & Control Project Work
1.5 Integration Mgmt: Monitor & Control Project Work (M&C)
-Pg 105, PMBOK 6th Ed.
Purpose: Keeping an eye on the project’s progress and whether the team is on track to meet the project’s goals & objectives.

>> Alvin’s Tip: How is the current status of your project (regarding the triple constraints of scope, schedule, and cost), and do
any actions need to be followed to improve the project’s performance?
ITTO Analysis: Monitor & Control Project Work
1) What do You Need? (Input) 
– Project Mgmt Plan, Project Documents, *Work Performance Information, *Agreements, OPA/EEF
>> Project Documents: Logs (Assumptions, Issue), Basis of Estimates, Cost & Schedule Forecasts, Lessons Learned Register, Risk
Register & Report, Quality Report, Milestone List

2) What is the Result? (Output)

– *Change Requests, *Work Performance Reports, and, Updates to Project Mgmt Plan & Project Documents

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Decision Making, Data Analysis, Meetings
>> Decision Making: *Voting (unanimity, majority or plurality)
>> *Data Analysis: There are quite a few, but these are listed out here – Alternatives, Cost-Benefit, Earned Value, Root Cause,
Trend, and Variance Analysis
Key Concepts:
– Understand the difference between each Analysis Technique:
(1) Alternative Analysis – Which “alternate” corrective action is the best to put into place due to changes in the project’s plan?

(2) Cost-Benefit Analysis – Which corrective action gives you the best Return on your Investment given how much it will cost to
implement?

(3) Earned Value Analysis – Evaluates the monetary value associated with work being performed vs what was planned. Common
metrics include Earned Value, Planned Value, Actual Cost, Schedule Variance, Cost Variance, and Schedule & Cost Performance
Indices. Refer to Cost Management for more detail on this.

(4) Root Cause Analysis – What is the root cause for why an issue has occurred?

(5) Trend Analysis – What is our project’s future performance predicted to be, based upon our historical data? In other words,
let’s look at our historical “trends” and data and see if we need to take any immediate corrective or preventive actions in
anticipation of potential overruns or slippages.

(6) Variance Analysis – What is the difference between our Planned & Actual Performance?

>> Alvin’s Tip: When you see the word “variance” think of it meaning a “difference”. Just by remembering it in this way will help
you remember what the difference is between the different formulas for Earned Value Management. 

Key Terms to Remember:

*Understand the workflow for how Work Performance information is used as an input during Monitor and Control Project
Work, to ultimately become an output of Work Performance Reports.

– Work Performance Reports: As part of Monitoring and Controlling your project’s work, you’ll be analyzing and quantifying
your project’s work, and summarizing this in easy-to-understand visual and graphical formats. These Work Performance Reports
are a collection of these “reports” and include Status or Progress Reports, such as graphs, charts, histograms, or summaries. 
Process #6: Perform Integrated Change Control
1.6 Integration Mgmt: Perform Integrated Change Control (M&C)
-Pg 113, PMBOK 6th Ed.
Purpose: What happens when changes occur which impact your project’s deliverables, or each of the different Knowledge Areas
(project’s scope, schedule, cost, quality, etc)? This step  is all about formalizing the process of reviewing change
requests initiated by any stakeholder, and defining the workflow for approving and managing these changes through the Change
Control Board.
ITTO Analysis: Perform Integrated Change Control
1) What do You Need? (Input) 
– Project Mgmt Plan, Project Documents, *Work Performance Reports, *Change Requests, OPA/EEF
>> Project Documents: Risk Report, Requirements Traceability Matrix, Basis of Estimates
>> Project Management Plan: Management Plans (Change & Configuration), Baselines (Scope, Schedule, and Cost)

2) What is the Result? (Output)

– *Approved Change Requests, and, Updates to Project Mgmt Plan & Project Documents (*Change Log)
>> The Change Log is a key document that is updated as a part of Integrated Change Control to capture what changes have
occurred or implemented after approving Change Requests

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, *Change Control Tools, Decision Making, Data Analysis, Meetings
>> Decision Making: *Voting, Autocratic Decision Making, Multicriteria decision analysis
>> *Data Analysis: Alternatives and Cost-Benefit Analysis

–Meetings are a key tool for Performing Integrated Change Control, since they are used to hold Change Control Meetings to
review and approve or reject Change Requests
Key Concepts:
– Understand that this process is one of the defining responsibilities of a project manager, and occurs at any point from project
initiation to closure.

– Change Requests are required to go through a formal Change Control Process after a project’s initial baselines have been
captured. 

– A common situational question which pops up often on the CAPM Exam or PMP Exam involves evaluating Change Requests
and their impact to the project. Just keep in mind that any Change Request must be approved by the Change Control Board
before they can be implemented.

– *Alvin’s Tip: Who approves the Change Requests? The project manager does NOT approve change requests. The Change
Control Board, and customer or sponsor, are the ones who approve Change Requests.

Key Terms to Remember:

– Configuration Management Plan describes which project artifacts require revision control and approval through Change
Requests

– Configuration Control: Focuses on the specifications of project deliverables and the process

– Change Control: Focuses on the process for the review and approval of updates to project baselines and documents
Process #7: Close Project / Phase
1.7 Integration Mgmt: Close Project / Phase (CL)
-Pg 121, PMBOK 6th Ed.
Purpose: Woo hoo! Your project is getting ready to wrap up, and you’re about 95-99% of the way through!! This is a huge
milestone and you should be proud of yourself and your Team for completing all areas of the project! It’s in this process that
you’ll be finalizing all activities, and if everything is completed, you’ll be releasing all resources from your project.
ITTO Analysis: Close Project / Phase (CL)
1) What do You Need? (Input) 
– Project Charter, Accepted Deliverables, Project Management Plan, Project Documents, Business Documents, Procurement
Documentation, Agreements, OPAs
>> Project Documents: Logs (Assumptions, Change, Issue, Risk Register & Lessons Learned Register), Basis of Estimates,
Milestone List, Project Communications, QC Measurements, Quality Reports, Risk Report, Requirements Documentation
>> Business Documents: Business Case, Business Management Plan
>> Project Management Plan: Management Plans

2) What is the Result? (Output)

– *Final Product/Service; Final Report; Updates to Project Documents & OPAs (*Lessons Learned Register)

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Data Analysis, Meetings
>> *Data Analysis: Document, Regression, Trend, and Variance Analysis
Key Concepts:
– The key output from this process is the creation of the Final Product and Final Report, as well as updating the Lessons Learned
Register

Overview of Scope Management

Scope Management is split up into the following 6 Process Groups:
1) Plan Scope Management (PL)
2) Collect Requirements (PL)
3) Define Scope (PL)
4) Create WBS (PL)
5) Validate Scope (M&C)
6) Control Scope (M&C)
Purpose:
– Does our project include ONLY the work that is required to fully complete our project?
– Focus is on managing the scope of the project, and preventing gold plating & scope creep.
 Process #1: Plan Scope Management
1.1 Scope Management: Plan Scope Management (PL)
– Pg. 134, PMBOK 6th Edition

Purpose: Developing the Scope Management Plan that outlines our strategy for developing and validating our project scope and
requirements
ITTO Analysis: Plan Scope Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, EEF/OPA
>> Project Mgmt Plan: Quality Mgmt Plan, Life Cycle Description, & Development Approach

2) What is the Result? (Output)

– *Scope Management Plan, *Requirements Management Plan

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Meetings, Data Analysis
>> Data Analysis: Alternatives Analysis
Key Terms to Remember:
1. Scope Management Plan – This Plan includes the high-level strategy and process for controlling our project’s scope, creating a
Scope Statement & WBS, maintaining our Scope Baseline, and obtaining approval of our Project Deliverables

2. Requirements Management Plan – Outlines how we will evaluate, record and capture our requirements
Process #2: Collect Requirements
1.2 Scope Management: Collect Requirements (PL)
– Pg. 138, PMBOK 6th Edition

Purpose: Determining stakeholder needs and project requirements

ITTO Analysis: Collect Requirements
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, Business Documents, Agreements, EEF/OPA
>> Project Management Plan: *Scope, *Requirements, & *Stakeholder Engagement Plan
>> Project Documents: Logs (Assumptions, Stakeholder Register, Lessons Learned)

2) What is the Result? (Output)

– *Requirements Documentation, *Requirements Traceability Matrix

3) How Do You Accomplish It? (Tool/Technique)

–*Context Diagram; *Prototypes; Expert Judgment, Meetings; Data Gathering, Analysis, & Representation; Decision Making,
Interpersonal & Team Skills
Key Concepts:
1. Five (5) different ways to gather data / requirements:
– Brainstorming to collect everyone’s feedback
– Interviewing stakeholders to define and better understand what features need to be in the final product
– Conducting Focus Groups with stakeholders and experts to learn what everyone’s expectations are for the product and design
– Questionnaires & Surveys – Create a set of questions that you would send out to your customers to get their feedback on your
prototype designs
– How do you compare your company’s products to those of your companies, which are best in the industry?
By Benchmarking and creating a baseline to measure your performance against

2. Understand the differences between each Voting and Decision Making Technique

– Unanimous: Everyone agrees on a decision
– Majority – More than 50% of the team agrees on pursuing Option A, instead of Option B. In this case, there is a Majority vote
to follow Option A.
– Plurality – The largest “subgroup” in your team decides.
– Autocratic – One person makes the decision for everyone
– Multi-criteria Decision Analysis – Systematically analyze and evaluate different criteria (for example, cost, benefits, time to
develop, risk, etc) to determine which path to pursue

3. How is the Nominal Group Technique different than Brainstorming?

– Nominal Group Technique is a more structured version of brainstorming, because it includes a voting process to rank &
prioritize everyone’s ideas
Key Terms to Remember:
1. Context Diagram – This is a visual diagram which shows what the scope of your product will be, and how it interacts with the
business processes & users. It helps answer the following questions:
– Where does data flow inward? (Who are the internal users?)
– Where does data flow outward? (Who are the external users?
– What is the interaction between the business system/process and how will people interact with it?

2. Requirements Traceability Matrix – Think of this as your ‘excel sheet’ or ‘table’ that links each product requirement to the
business goals and project deliverables.
– This is a document that Project Managers use to track and manage the product’s scope & requirements throughout the entire
project life cycle

3. Requirements Documentation – This is different than the Requirements Traceability Matrix. Think of this as a list of
requirements to fulfill for your project, and how they meet the goals of the organization. Unlike the RTM, this does not provide
traceability or linkage to any of the project deliverables
Process #3: Define Scope
1.3 Scope Management: Define Scope (PL)
– Pg. 150, PMBOK 6th Edition

Purpose: Fully characterize the product’s scope and acceptance criteria, based upon the requirements captured in the previous
process (Collect Requirements)
ITTO Analysis: Define Scope
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Scope
>> Project Documents: Logs (Assumptions, *Requirements Documentation, Risk Register)

2) What is the Result? (Output)

– *Scope Statement, Project Document Updates

3) How Do You Accomplish It? (Tool/Technique)

–*Product Analysis; Expert Judgment; Data Analysis; Decision Making, Interpersonal & Team Skills
Key Concepts:
1. This process chooses the final requirements and creates a detailed “statement” of the product/project’s final scope
**Remember, Defining the Scope of your project can occur in an iterative sequence... first, starting out with the high-level
vision, and refining this in iterations (aka. rolling wave planning)

2. What is Product Analysis and how is this used to determine the final scope of your project/product?
– Examples: Requirements, System, & Value Analysis; Product Breakdown; Systems Engineering
– This technique involves continuously asking questions to determine the characteristics of your final product
– Translate this information and decompose this into the detail you need to create the final product requirements
Key Terms to Remember:
1. Scope Statement – This “document” outlines the ENTIRE scope of your project and product.
– What’s included in the Scope Statement: Scope Description, Key Deliverables, Acceptance Criteria, and Exclusions (what is
outside the scope of the final product)
– The Scope Statement is important because it aligns all team members with an understanding of what the final product
requirements need to be, and minimizes scope creep
Process #4: Create WBS
1.4 Scope Management: Create WBS (PL)
– Pg. 156, PMBOK 6th Edition

Purpose: Create a Scope Baseline (approved Scope Statement, WBS, and WBS Dictionary) by decomposing your project’s work
into easy-to-manage “chunks”

Watch my Video Tutorials for how to create a WBS:

1) WBS Explained in 90 SECONDS: WATCH HERE
2) How to Create A WBS In 3 STEPS!: WATCH HERE
3) Ultimate Guide to the WBS: WATCH HERE
ITTO Analysis: Create WBS
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Scope
>> Project Documents: *Scope Statement, *Requirements Documentation

2) What is the Result? (Output)

– *Scope Baseline, Project Document Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Decomposition, Expert Judgment
Key Concepts:
1. The Scope Baseline is the approved version of the Scope Statement, WBS, and WBS Dictionary
** Scope Baseline can only be updated through Change Requests and approval from the Change Request Board

2. The lowest level of a WBS is a work package.

– Each Work Package is a component of a higher control account
– The flow is like this: Control Account >> Work Package

3. A Control Account integrates the scope, schedule, and cost together for its constituent work packages
– Includes Planning Packages, which are a tier above the work package.
– The flow is like this: Control Account >> Planning Package >> Work Package
Key Terms to Remember:
1. 100% Rule- The WBS contains ALL OF THE WORK required to complete the project/product. Nothing extra, however, should
be included.

2. WBS – Work Breakdown Structure is a visual hierarchical outline which breaks down the work required to complete the
project.
**REMEMBER: The WBS is based on the project deliverables (the result of an activity)
Process #5: Validate Scope
1.5 Scope Management: Validate Scope (M&C)
– Pg. 163, PMBOK 6th Edition

Purpose: Obtain formal acceptance of project’s deliverables from customer

ITTO Analysis: Validate Scope
1) What do You Need? (Input) 
– *Verified Deliverables, *Work Performance Data, Project Management Plan, Project Documents
>> Project Management Plan: *Scope  & *Requirements Mgmt Plan, *Scope Baseline
>> Project Documents:  *Requirements Documentation, *Requirements Traceability Matrix, Quality Reports, Lessons Learned
Register

2) What is the Result? (Output)

– *Accepted Deliverables, *Work Performance Information, Change Requests, Project Document Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Inspection, Decision Making (Voting)
Key Concepts:
1. In order to validate your project’s work, you need to obtain formal acceptance of the Verified Deliverables, which were
obtained during the Control Quality process.

2. What is the difference between Control Quality & Validate Scope?

>> Validate Scope focuses on ensuring that the deliverables are accepted by the customer
>> Control Quality is focused on making sure that the deliverables are correct and that they meet all quality requirements,
before they are presented to the customer.

3. Examples of Work Performance Data may include: number of nonconformances, number of tests completed, and “raw”
compliance information
Key Terms to Remember:
1. Inspection- A key technique for validating the project’s scope – does the work that we completed meet all requirements and
acceptance criteria?
Process #6: Control Scope
1.6 Scope Management: Control Scope (M&C)
– Pg. 167, PMBOK 6th Edition

Purpose: Monitoring & controlling the project’s scope to make sure it doesn’t change without being reviewed & approved by the
Change Control Board through the formal Change Request process
ITTO Analysis: Control Scope
1) What do You Need? (Input) 
– *Work Performance Data, Project Management Plan, Project Documents, OPA
>> Project Management Plan: Scope Baseline & Performance Measurement Baseline; Scope, Requirements, Change, and
Configuration Mgmt Plan
>> Project Documents:  *Requirements Documentation, *Requirements Traceability Matrix, Lessons Learned Register

2) What is the Result? (Output)

– *Change Requests, *Work Performance Information, Project Document Updates, Project Management Plan Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Data Analysis: Variance & Trend Analysis
Key Concepts:
1. Al requested Change Requests for updating the project’s scope must go through the Perform Integrated Change Control
Process (see Integration Management for detail)

2. Examples of Work Performance Data: number of change requests and number of verified & validated project deliverables

3. What is the difference between Variance Analysis & Trend Analysis?

>> Variance Analysis – Compares your initial baseline to the actual performance of your project. Depending on the magnitude of
the variance, this will determine what type of corrective & preventive action needs to take place to steer the project back on
track
>> Trend Analysis – Evaluates the project’s historical performance to see if the project’s performance will improve or get worse

4. It is during the Control Scope process that you are continuously evaluating updates to the following baselines: scope,
schedule, and cost. If any updates are made, then your performance measurement baseline will be updated accordingly.
Key Terms to Remember:
1. Scope Creep – This is when your project’s scope is changed without being formally controlled through the Change Control
Process, and as a result, updates to the project’s schedule/time, cost, and needed resources to compensate for these requests
are not implemented. Essentially, adding additional features and requirements, and therefore, doing more work than what was
initially agreed upon.

Overview of Schedule Management

Schedule Management is split up into the following 6 Process Groups:
1) Plan Schedule Management (PL)
2) Define Activities (PL)
3) Sequence Activities (PL)
4) Estimate Activity Durations (PL)
5) Develop Schedule (PL)
6) Control Schedule (M&C)
Purpose:
– Creating a project schedule for when certain milestones will be achieved and when the team can expect to deliver the final
product to the customer

Key Concepts:
1) Iterative Scheduling vs On-demand Scheduling
– Iterative Scheduling – An example of this is following an agile approach
>> Producing incremental iterations of a product to the customer, using rolling wave planning and short iterations (known as
“sprints“).
>> It is during these sprints that the user requirements (captured in the form of user stories), and the prioritized features of the
product, are being worked on

– On-demand Scheduling – Think Kanban when you see this term. This utilizes the theory of constraints and pull-based
scheduling. Essentially, instead of relying on a schedule to complete the work, the team pulls work from a prioritized backlog
Process #1: Plan Schedule Management
1.1 Schedule Management: Plan Schedule Management (PL)
– Pg. 179, PMBOK 6th Edition

Purpose: Developing the Schedule Management Plan that outlines our strategy for creating, managing, and controlling our
project’s schedule
ITTO Analysis: Plan Schedule Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, EEF/OPA
>> Project Management Plan: *Scope Management Plan, *Development Approach

2) What is the Result? (Output)

– *Schedule Management Plan

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Meetings, Data Analysis
>> Data Analysis: Alternatives Analysis
Key Terms to Remember:
1. Schedule Management Plan – This Plan can be formal or informal, or detailed or high-level, and includes the following
information:
>> This plan helps establish guidelines for which scheduling approach will be used (adaptive or waterfall). If agile, this plan
specifies the specific details regarding the lengths of each sprint iteration
>> Includes the control thresholds for when action needs to be taken if the schedule starts to slip or deviate from the plan
>> Includes criteria for following Earned Value Management regarding scheduling, and the level of accuracy for determining
activity duration estimates
Process #2: Define Activities
1.2 Schedule Management: Define Activities (PL)
– Pg. 183, PMBOK 6th Edition

Purpose: Determining what activities need to be performed in order to complete the project’s work
ITTO Analysis: Define Activities
1) What do You Need? (Input) 
– Project Management Plan, EEF/OPA
>> Project Management Plan: *Schedule Management Plan, *Scope Baseline

2) What is the Result? (Output)

– *Activity List & *Attributes; *Milestone List; Change Requests, Updates to Project Mgmt Plan

3) How Do You Accomplish It? (Tool/Technique)

–*Decomposition; *Rolling Wave Planning; Expert Judgment, Meetings
Key Concepts:
1. A Milestone (an important event, landmark, or turning point in your project) has ZERO DURATION!

2. Why do you need the Scope Baseline in order to Define the Activities?

– The Scope Baseline contains the WBS and key project deliverables that are needed to complete 100% of the project’s work.
With this information, you can use decomposition to determine your project’s required activities
Key Terms to Remember:
1. Decomposition – This technique breaks down and divides your project’s work into easy-to-manage chunks
**Remember: You will use Decomposition in order to break down each Work Package into the activities needed to create the
project deliverables

2. Rolling Wave Planning – Think of this as a technique for planning out in detail the work being accomplished within the next
couple of weeks.
>> This is applicable to Work Packages, Planning Packages, and Release Planning
>>Alvin’s Tip –  What is Rolling Wave Planning?
In other words, what’s coming up in the near term? This is NOT  for work being accomplished a year from now, or even six
months from now… Think  SHORT-TERM.
Alvin the PM

Process #3: Sequence Activities

1.3 Schedule Management: Sequence Activities (PL)
– Pg. 187, PMBOK 6th Edition

Purpose: After you’ve defined what activities you need to perform for your project, you need to figure out… IN WHAT ORDER do
these activities take place?
ITTO Analysis: Sequence Activities
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Scope  Baseline,  *Schedule Management Plan
>> Project Documents: Assumption Log, Activity & Milestone List, and Activity Attributes

2) What is the Result? (Output)

– *Network Diagram, Project Document Updates
3) How Do You Accomplish It? (Tool/Technique)
–*PDM (Precedence Diagramming Method), *Dependency Determination and Integration, *Leads and Lags, PMIS
Key Concepts:
1. Best Practices to create Network Diagrams
– Every activity should be connected to a minimum of 1 predecessor and 1 successor
– Use Leads & Lags to create a realistic schedule

2. What are the four (4) different relationships between tasks/activities? (dependencies or logical relationships)
>> Finish-to-Start (FS): An activity must finish before the Successor Activity can begin
>> Finish-to-Finish (FF): Two activities (the predecessor and successor) must finish at the same time
>> Start-to-Start (SS): Successor activity can only start if the Predecessor activity has already started
>> Start-to-Finish (SF): Successor activity can only finish if the Predecessor Activity has started.

3. What Task Dependency is the most common?

>> Finish-to-Start Relationship

4. What Task Dependency is the most rare/least used?

>> Start-to-Finish Relationship

5. What are the types of dependencies?

>> Mandatory Dependencies: Hard logic or hard dependencies. These are dependencies which are REQUIRED due to either
physical limitations or inherent characteristics of the work involved
>> Discretionary Dependencies: Preferred logic or soft logic. These are dependencies which are ‘PREFERRED‘, are NOT
REQUIRED, and based upon best practices.
>> External Dependencies: A dependency which is outside the organization’s control.
>> Internal Dependencies: A dependency which is inside yor team’s control
Key Terms to Remember:
1. Lag – The amount of time (days) that a Successor Activity will be delayed.
>> Alvin’s Trick: Activity A will “lag” behind by X days
>> Example: SS + 10 day Lag (It is ‘addition’ because you are adding additional time to the task due to the “lag”)

2. Lead – The amount of time (days) that a Successor Activity can begin before the Predecessor Activity is completed
>> Alvin’s Trick: The next Activity will “lead” and start 3 days in advance
>> Example: SS – 5 day Lead (It’s a minus symbol, because you are starting on the task early)
Process #4: Estimate Activity Durations
1.4 Schedule Management: Estimate Activity Durations (PL)
– Pg. 195, PMBOK 6th Edition

Purpose: How long does it take to complete each Activity?

ITTO Analysis: Estimate Activity Durations
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Scope  Baseline, *Schedule Mgmt Plan
>> Project Documents: Activity Attributes & List, Logs (Assumptions, Risk Register, Lessons Learned, Milestone List), Team
Assignments, Resource Documents (Resource Breakdown Structure, Resource Calendar, Resource Requirements)

2) What is the Result? (Output)

– *Estimates (Duration Estimates and Basis of Estimates), Project Document Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Estimation Techniques, Expert Judgment, Data Analysis, Decision Making, Meetings
>> Estimation Techniques: Analogous, Parametric, Three-Point, and Bottom-up
>> Data Analysis: Alternatives & Reserve Analysis
>> Decision Making: Voting
Key Concepts:
1. Alvin’s Tip: The Project Manager is NOT the person who provides the estimates for the activity durations. The Project
Manager relies on ‘Expert Judgment’ from the Subject Matter Experts, or those actually executing the tasks.

2. What is the difference between each Estimation Technique?

Analogous Estimating uses historical data from similar projects, if there is NOT a lot of information known about the project;
This technique is not accurate.

Parametric Estimating relies on parameters and a statistical relationship in order to calculate the duration & cost estimates for
each activity. For example: the time it takes to paint per square feet (hours/sq. feet). This is more accurate than analogous
estimation.

Three-Point Estimating creates a range for an estimated duration, using the following formula:
>> Estimate = (Optimistic + Most Likely + Pessimistic) / 3
>> Reference the Formula Guide for detail.

Bottom-up Estimating is the MOST ACCURATE estimation technique because it sums up the estimates of the WBS’ lower-level
components.
Key Terms to Remember:
**Make sure you understand the difference between Contingency Reserves & Management Reserves.
1. Contingency Reserves – These are used to account for any uncertainties in the project’s schedule, and are allocated for
the known unknown risks.
>> The Contingency Reserve may be a % of the estimated activity duration.

2. Management Reserves – As its title suggests, using Management Reserves requires approval from Management, and is
specifically allocated to address unknown-unknowns which may impact a project. In other words, unforeseen work or risks
which were NOT planned.
>> Management Reserves are NOT incorporated into your schedule baseline, and are instead, part of the OVERALL project’s
duration requirements.
Process #5: Develop Schedule
1.5 Schedule Management: Develop Schedule (PL)
– Pg. 205, PMBOK 6th Edition

Purpose: At this point, you’ve already created your list of activities and identified how long each activity will take. Now, all that’s
left is to take this information and create your Project Schedule in order to execute your project.
ITTO Analysis: Develop Schedule
1) What do You Need? (Input) 
– Agreements, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Schedule Mgmt Plan, *Scope Baseline

2) What is the Result? (Output)

– *Project Schedule & Calendars, *Schedule Baseline & Data, *Change Requests, Project Document Updates, Project
Management Plan Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Agile Release Planning, *Schedule Network Analysis, *Critical Path Method, *Resource Optimization, *Leads & Lags,
*Schedule Compression, Data Analysis, PMIS
>> Data Analysis: What-if Scenario Analysis, Simulation
Key Concepts:
1. Schedule Network Analysis consists of the following techniques: Critical Path, Resource Optimization, and Modeling.

2. Schedule Compression Techniques

– Crashing – Adding more resources to an activity to help expedite or shorten an activity’s duration

– Fast Tracking – Instead of completing activities in sequence, fast-tracking forces activities to be completed in parallel with
each other

3. Agile Release Planning – High-level overview of the schedule for releasing iterations of the product/software through a
certain number of “sprint” iterations.
>>This characterizes how the product vision, roadmap, release planning, and iteration planning are all linked together

4. Examples of a Project Schedule are:

– Bar Chart
– Milestone Chart – Only shows critical deliverables or break-through events
– Network Diagram – Also known as Activity-On-Node diagrams
Key Terms to Remember:
1. Critical Path – Longest path through the network diagram. All activities on the Critical Path have zero float

2. Free Float – Amount of time that an activity can be delayed without impacting the start date of a succeeding task
**Activities with a negative float are behind schedule
>> Refer to the Formula Guide for detail regarding the Float Equation.
3. Resource Optimization – Modifying the Planned Start & Planned Completion Dates based upon resource constraints, so that
the Planned Resources <= Resource Availability

4. Resource Levelling – If you have limited resources or if you have to share critical resources across projects, this Resource
Optimization technique adjusts the start and finish dates for tasks to ensure that resources are used at an appropriate level. In
other words, you’re making sure that resources aren’t being used beyond their capacity.
– Unlike Resource Smoothing, Resource Levelling can adjust the Critical Path of a project

5. Resource Smoothing – This Resource Optimization technique “smoothens” out resources so that they stay below their
limits, WITHOUT changing the Critical Path.
– Resource Smoothing does NOT change the critical path.
– Adjusts activities, which may only be delayed within their FREE and TOTAL FLOAT.

6. Schedule Baseline – The formally approved Project Schedule through the Change Control Process

7. The Project Calendar shows what business days are available to work on each activity
Process #6: Control Schedule
1.6 Scope Management: Control Schedule (M&C)
– Pg. 222, PMBOK 6th Edition

Purpose: Monitoring the project’s status and updating the project schedule and schedule baseline, as needed
ITTO Analysis: Control Schedule
1) What do You Need? (Input) 
– *Work Performance Data, Project Management Plan, Project Documents, OPA
>> Project Management Plan: Baselines (Schedule, Scope, Performance Measurement Baseline), Schedule Mgmt Plan
>> Project Documents: Lessons Learned Register, Calendars (Project & Resource), Project Schedule, Schedule Data

2) What is the Result? (Output)

– *Change Requests, *Work Performance Information, *Schedule Forecasts, Project Document Updates, Project Management
Plan Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Critical Path Method, *Resource Optimization, *Leads & Lags, *Schedule Compression, *PMIS, Data Analysis
>> Data Analysis: Analyses Techniques (Earned Value, Trend, Variance, and What-If Scenario Analysis), Iteration Burndown
Chart, Performance Reviews
Key Concepts:
1. The Schedule Baseline can only be changed through formally approved Change Requests through the Perform Integrated
Change Control Process (see Integration Management for detail)

2. Examples of Work Performance Data: Raw collected data on the metrics of work being completed on the project
>> For example, actual activity duration and how much has been completed on our activities

3. For Controlling Scope, Earned Value Analysis is used to monitor and evaluate the Schedule Variance and Schedule
Performance Index
>> Refer to the Formulas Guide for detail
Key Terms to Remember:
1. Iteration Burndown Chart – This Tool/Technique garphically shows how much work still remains in your “backlog” (Actual
Remaining vs Ideal Remaining vs Forecasted Remaining Work)

2. Performance Reviews – How does our Schedule Performance compare to our initially planned Schedule Baseline? How does
our “reality” compare to our “plan”?

3. Schedule Forecasts are created based upon the Work Performance Information collected during Execution of the project,
and shows estimates of the project’s future performance with regards to the Schedule

Overview of Cost Management

Cost Management is split up into the following 6 Process Groups:
1) Plan Cost Management (PL)
2) Estimate Costs (PL)
3) Determine Budget (PL)
4) Control Costs (M&C)
Purpose:
– This is the process for determining, managing, and tracking the project’s costs so that the project can be completed within the
planned budget.
Process #1: Plan Cost Management
1.1 Cost Management: Plan Cost Management (PL)
– Pg. 235, PMBOK 6th Edition

Purpose: Developing the Costs Management Plan that outlines our strategy for managing and controlling our project’s costs.
How will we manage our costs throughout our entire project’s lifecycle?
ITTO Analysis: Plan Cost Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, EEF/OPA
>> Project Management Plan: *Schedule Management Plan, *Risk Management Plan

2) What is the Result? (Output)

– *Cost Management Plan

3) How Do You Accomplish It? (Tool/Technique)

-Expert Judgment, Meetings, Data Analysis
>> Data Analysis: Alternatives Analysis
Key Concepts:
1. What is contained inside the Cost Management Plan?
– In what format and how frequently will cost reports be sent to the Team and/or Management?

– What guidelines do we follow for using Earned Value Analysis? (e.g. Earned Value Techniques, measuring the Control
Accounts)

– How far above or below the Planned Approved Project Budget is acceptable? Cost Thresholds are established – what is
acceptable and not acceptable in the form as a % deviation.

– If applicable, the Cost Management Plan links to other procedures & documents (e.g. WBS)

– Units, used for reporting: hours, days, weeks, etc

2) Level of Precision & Accuracy

Precision: How do we round our Cost Estimates?
Accuracy: What is the tolerance range that we will use for our cost estimates? (e.g. +/- 5%)
Key Terms to Remember:
1. Cost Management Plan – This Plan contains information for how to develop and manage your project’s costs

2. Direct Costs – Costs which can be ‘directly’ associated with the project (Example: Labor, Equipment, Material)

3. Indirect Costs – Costs which are not directly tied to a specific project. (Example: overhead costs)

4. Control Account – Level at which cost accounting is performed

Process #2: Estimate Costs
1.2 Cost Management: Estimate Costs (PL)
– Pg. 240, PMBOK 6th Edition

Purpose: Estimating how much it costs for each resource used in the project
ITTO Analysis: Estimate Costs
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: Cost and Quality Mgmt Plan, Scope Baseline
>> Project Documents:  Lessons Learned & Risk Register, Schedule, Resource Requirements

2) What is the Result? (Output)

– Estimates (*Cost Estimates and *Basis of Estimates), Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

–*Estimation Techniques, Expert Judgment, Data Analysis, PMIS, Decision Making (Voting)
>> Estimation Techniques: Analogous, Parametric, Bottom-up, and Three-Point
>> Data Analysis: Alternatives &* Reserve Analysis, *Cost of Quality
Key Concepts:
While managing your project, you need to evaluate cost trade-offs and risks.

1. Cost Estimation Techniques – Refer to the Formula Guide for detail on the Formulas used for Triangular Distribution and
Beta Distribution

2. As you progress throughout the stages of a project, your estimates will become MORE ACCURATE. At the beginning, estimates
will have a wide tolerance range, and will follow a very high-level ‘top down’ approach.

As you progress through the project and you gain more knowledge, this estimate will become more accurate into a ‘bottom-up’
estimate

3. At the very beginning, your estimates will not be as accurate and therefore, have a Rough Order of Magnitude (ROM
Estimate, typically with a range of -25% to +75%. (meaning 25% less to more than 75% over the estimate).

4. At later stages of the project, your estimates will tighten down to an accuracy of -5% to +10%.
Key Terms to Remember:
1. Rough Order of Magnitude (ROM) Estimate- A rough, high-level estimate that typically has a range of -25% to +75% over the
estimate.

2. Definitive Estimate – A more accurate estimate than the ROM Estimate, and is typically between -5% to +10% over the
Estimate.

3. Contingency Reserve – Are a part of the cost baseline & budget; May account for a certain % of the activity’s estimated cost
(Example: Rework costs for a project deliverable)

4. Management Reserves – These reserves are allocated for the “Unknown unknowns” and unplanned work.

5. Cost Estimates – Estimates for the costs required for physical labor, materials, equipment, services, etc
Process #3: Determine Budget
1.3 Cost Management: Determine Budget (PL)
– Pg. 248, PMBOK 6th Edition

Purpose: Now that you’ve estimated the costs for each project activity from the WBS, it’s time to determine the overall Project
Cost Baseline.

This baseline will ultimately be what you measure your Team’s performance against throughout the lifecycle of the project.
ITTO Analysis: Determine Budget
1) What do You Need? (Input) 
– Agreements, Business Documents, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Cost Management Plan,  Resource Management Plan, *Scope Baseline
>> Project Documents: Estimates (Basis and Cost Estimates), Project Schedule, Risk Register
>> Business Documents: Business Case, Benefits Mgmt Plan

2) What is the Result? (Output)

– *Cost Baseline, *Funding Requirements, Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

– *Cost Aggregation, *Funding Limit Reconciliation, *Financing, *Historical information review, Expert Judgment, Data Analysis
(Reserve Analysis)
Key Concepts:
1. Cost Aggregation – Technique to estimate costs by “summing” and rolling-up the costs from the work packages up to the
higher-level substituents of the WBS

2. Management Reserves – This is a portion of the budget which is allocated specifically for dealing with “unforeseen work”
which is INSIDE the scope of your project. Essentially, addressing “unknown unknowns”.

**Remember: Management Reserves are NOT initially part of your Cost Baseline. If you need to use Management Reserves,
then and only then, would it be added to your project’s Cost Baseline, which would then require an update to the initially
planned Cost Baseline.
Key Terms to Remember:
1. Cost Baseline – Also known as Performance Measurement Baseline. The Cost Baseline is equivalent to the Control Accounts,
and is the summation of all budgets for different activities.
**Just remember that this EXCLUDES Management Reserves. It instead includes the Contingency Reserves!
>> The Control Accounts is equal to the sum of Contingency Reserves and Work Package Cost Estimates.
>> And lastly, the Work Package Cost Estimates is equal to the sum of Activity Contingency Reserves and Activity Cost Estimates.

2. Funding Limit Reconciliation – This is a technique in which you determine… is there any variance between your Planned Costs
and your Actual Spending Limits?

**Reference page 255 of PMBOK Guide 6th Edition showing that Funding Requirements is not typically uniformly distributed, and
instead, occurs in a step-like manner.
Process #4: Control Costs
1.4 Cost Management: Control Costs (M&C)
– Pg. 257, PMBOK 6th Edition

Purpose: Tracking the project’s status with regards to costs and ensuring that the cost baseline is maintained throughout all
stages of the project. You will be comparing all expenses spent to the Planned Project Cost Baseline.
ITTO Analysis: Control Costs
1) What do You Need? (Input) 
– *Project Funding Requirements, *Work Performance Data, Project Management Plan, Project Documents, OPA
>> Project Management Plan: *Cost Mgmt Plan, Cost Baseline, Performance Measurement Baseline
>> Project Documents: Lessons Learned Register

2) What is the Result? (Output)

– *Cost Forecasts, *Work Performance Information, *Change Requests, Updates to Project Management Plan and Project
Documents

3) How Do You Accomplish It? (Tool/Technique)

– To-Complete Performance Index, Expert Judgment, Data Analysis, PMIS
>> Data Analysis: Earned Value, Variance, Trend, and Reserve Analysis
Key Concepts:
Ability to influence cost is the HIGHEST at the beginning stages of a project.

Earned Value Analysis

Refer to the “Earned Value Analysis” section in the Formula Guide for detail on each formula and equation used in Earned
Value Analysis.

Technique that analyzes three core metrics of your project, for each work package and control account:
(1) Planned Value, PV
– This corresponds to the monetary value associated with the work which has been “planned” to be completed by a certain
date/time
– A project’s Total Planned Value = its Budget At Completion (BAC) Refer to the Formula Guide for detail.

(2) Earned Value, EV
What is the ‘budgeted’ value for the work which has been completed so far? In other words, how much have we ‘earned’ so far,
for the work we’ve performed? Refer to the Formula Guide for detail.

(3) Actual Cost, AC
For the work performed, how much did the work ‘actually’ cost? Refer to the Formula Guide for detail.

Variance Analysis: Technique that analyzes four metrics.

(1) Schedule Variance, SV
Are we ahead of, behind, or on schedule? Refer to the Formula Guide for detail.

(2) Cost Variance, CV
Are we over budget? Under budget? Or, on budget? Refer to the Formula Guide for detail.

(3) Schedule Performance Index, SPI

SPI Index is a ratio of Earned to Planned Value, and helps us understand – how efficient has our schedule performance been?
How effective have we been at performing our work on time? Refer to the Formula Guide for detail on interpreting the formula
and equation

(4) Cost Performance Index, CPI

CPI Index is a ratio of Earned Value to Actual Cost. This represents the project’s performance, with respect to cost, and provides
insight into whether the project is currently over or under budget. Refer to the Formula Guide for detail.
Cost Forecasts
(1) Estimate At Completion, EAC
EAC is an Estimate for the Project’s Total Cost, given the current work which has already been performed. Refer to the Formula
Guide for detail.

Other Variables
(1) Budget At Completion, BAC
– This can be thought of as the planned Overall Project Budget – how much we are planning to spend to complete the project.
– Think of this as the Project’s Cost Baseline

(2) Variance At Completion, VAC

– This calculates the difference between our Project’s Planned Cost at Completion and our New Cost Estimate. Refer to the
Formula Guide for detail.
– What is our Variance when we complete our project?
Key Terms to Remember:
Trend Analysis – Evaluates how our project is performing with respect to time – are we getting better or worse?

To perform Trend Analysis, you can:

(1) Graph S-Curves showing EV, PV, and AC plotted against time (Refer to pg 264 of PMBOK 6th Edition for S-Curve Example).
(2) Calculate future Cost Forecasts for the Estimate At Completion (EAC)

Overview of Quality Management

Quality Management is split up into the following three (3) Process Groups:
1) Plan Quality Management (PL)
2) Manage Quality (EX)
3) Control Quality (M&C)
Purpose:
– This is the process for determining how can we address the company’s quality policy in order to meet our project’s quality
requirements?
Key Concepts:
1. What is the difference between Quality and Grade?
– Quality = Degree to which characteristics meet requirements. In other words, it’s the extent that our project & final product
meets our requirements.
– Grade = Meeting the same function, but has different characteristics. Aka, the ‘degree of functionality’

For example, A low-grade product doesn’t have as many unique features, but it was manufactured with high quality and, as a
result, has very low defects.

2. What is the difference between Inspection and Prevention?

Inspection: Preventing our customer from having errors in their received product
Prevention: This helps make sure we are doing things right the first time. Ensures that we eliminate and keep errors from our
process
Process #1: Plan Quality Management
1.1 Quality Management: Plan Quality Management (PL)
– Pg. 277, PMBOK 6th Edition

Purpose: Developing the Quality Management Plan and defining our project’s definition of Quality, and how we will accomplish
our Quality Objectives. How will we show that we are complying with our quality requirements?
ITTO Analysis: Plan Quality Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: *Requirements & Risk Management Plan, Stakeholder Engagement Plan, Scope Baseline
>> Project Documents: Log (Assumption, Risk & Stakeholder Register); Requirements Documentation & Traceability Matrix

2) What is the Result? (Output)

– *Quality Management Plan, *Quality Metrics, Updates to Project Management Plan & Documents

3) How Do You Accomplish It? (Tool/Technique)

–*Inspection & Data Planning; Expert Judgment; Meetings; Data Analysis, Gathering, and Representation; Decision Making
>> Data Gathering: Benchmarking, Brainstorming, Interviews
>> Data Representation: Flowcharts, Logical Data Model, Matrix Diagrams, Mind Mapping
>> Data Analysis: *Cost of Quality and Cost-Benefit Analysis
Key Concepts:
Cost of Quality and Cost-Benefit Analysis are performed to make sure that the appropriate quality level is planned based upon
the perceived benefits to costs of each option

1. Cost of Quality is divided into the following:

Category 1: Cost of Conformance (Cost to prevent failures from occurring)
(1) Appraisal Costs: Evaluating the Quality through tests and inspections
(2) Prevention Costs: Building quality into the design & process

Category 2: Cost of Non-Conformance (Cost due to failures)

(1) Internal Failure Costs (From the project: rework, scrap)
(2) External Failure Costs (From customer: Liabilities, warranties, lost sales))

2. Test and Inspection Planning

How will we test & inspect our product to ensure it meets our customer requirements, and that it functions as intended?

3. Data Representation Techniques

(1) Logical Data Model – Visually represents the organization’s data to identify where data integrity and other quality issues can
occur

(2) Matrix Diagrams – Use to identify which Quality Metric is the most important based upon the strength of relationships with
different factors and parameters

(3) Mind Mapping – Use to visually organize information, diagram different concepts, and identify quality requirements

(4) Example of Flowchart: SIPOC Model (Suppliers, Inputs, Process, Outputs, and Customers)

Key Terms to Remember:
1. Quality Management Plan – This Plan may be formal or informal, or detailed or high-level – it will be tailored depending on
your organization. It contains information for how your Team will follow the organization’s procedures to achieve the Quality
Goals.
What’s inside the Quality Management Plan?
1 – Quality Standards and Goals
2 – Quality Roles & Responsibilities
3 – All defined Quality-related activities for the project (e.g. Quality Control and Management)
4 – Quality Procedures (NCMRs, CAPAs, Continuous Improvement)
Alvin the PM

2. Quality Metrics – These metrics determine which variables should be measured as part of Control Quality and Manage
Quality
>> Examples of Quality Metrics: # of non-conformances, % of tasks completed on time, # of defects/day
Process #2: Manage Quality
1.2 Quality Management: Manage Quality (EX)
– Pg. 288, PMBOK 6th Edition

Purpose: It’s in this process that you are using your Quality Management Plan to perform the required quality activities and
meet the agreed upon Quality Goals, Objectives & Metrics. What are the areas of low quality, and how can we improve our
processes, by adopting continuous improvement?
ITTO Analysis: Manage Quality
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, OPA
>> Project Management Plan: Quality Management Plan
>> Project Documents: *QC Measurements, *Quality Metrics, Lessons Learned, Risk Report

2) What is the Result? (Output)

– *Quality Reports, *Test & Evaluation Documents, Change Requests, Updates to Project Management Plan & Project
Documents

3) How Do You Accomplish It? (Tool/Technique)

**Key Tools: Quality Improvement Methods; Design For X; Audits; Problem Solving
Other Tools: Data Gathering, Analysis, Representation; Decision Making
>> Data Gathering: Checklists
>> Data Analysis: Alternatives,  Document Analysis, Process Analysis, Root Cause Analysis
>> Data Representation: Affinity Diagram, Cause & Effect Diagrams, Flowcharts, Histograms, Matrix Diagrams, Scatter Diagrams
Decision Making: Multicriteria Decision Analysis

*Alvin’s Exam Prep Tip: Manage Quality has many Tools & Techniques… Just remember to focus on understanding the unique &
critical Tools/Techniques to this process, such as the ones I’ve bolded above.
Key Concepts:
Manage Quality can also be known as Quality Assurance, which is focused on using processes effectively and verifying that the
final product meets the customer’s needs and requirements.

It is everyone’s responsibility to perform Manage Quality, including the Sponsor and Customer. We all play a role with managing
quality.

In traditional projects, quality management may be performed by a specific team; in Agile projects, Quality Management is
typically performed and shared among the entire team.

Critical Data Representation Techniques

We use the following Data Representation Techniques to solve problems, analyze testing and inspection results, and identify the
root causes of issues discovered

(1) Affinity Diagram – Organizes defect causes into different groups

(2)  Cause and Effect Diagram (aka. Fishbone Diagram) – Goal is to identify the reasons of a problem. If our defect rate is
increasing, we can use the Fishbone Diagram to identify what potential causes may have led to this increase.

(3) Scatter Diagram – Shows relationship between two variables

(4) Flowchart – A series of steps which leads to a defect or nonconformance

(5) Histogram – A commonly used type of histogram is the Pareto Chart, which focuses on the top 20% which produces 80% of
your results

(6) Matrix Diagram– This shows the relationship between two variables.

Key Terms to Remember:
1. Quality Control Measurements – QC Measurements are used to verify that your project deliverables meet specifications.
>> You use Quality Control measurements in order to verify that the appropriate processes are being followed in order to
produce the correct deliverables.

2. Checklists – Help verify that the acceptance criteria is met for frequently occurring tasks

3. Alternatives Analysis – Which option is the best to use?

4. Document Analysis – Analyze different reports (e.g. Quality, Test, and Performance Reports) and focus on the processes
which require the most attention

5. Quality Reports – Contains any type of issues, potential areas of improvements for the project and/or product, and corrective
action recommendations (rework, repair, inspection, etc)

6. Test and Evaluation Documents – Help determine if we are meeting our quality goals

7. Audits – Audits are used to inspect processes, find areas of opportunity to drive improvement, verify that approved changes
have been implemented, and determine best practices moving forward.
>> This also is used to help answer the following question: Do our activities comply with our organization’s procedures?

8. Design for X (DFX) – Design for Excellence. These are recommended guidelines and best practices to optimize a design’s
characteristics and features. The ‘X’ in DFX can represent different areas such as manufacturability, assembly, inspection, testing,
and service.

9. Quality Improvement Methods – This consists of the methodologies of Plan-Do-Check-Act and Six Sigma in order to improve
the organization’s processes and adopt a philosophy of Continuous Improvement.
Process #3: Control Quality
1.3 Quality Management: Control Quality (M&C)
– Pg. 298, PMBOK 6th Edition

Purpose: Monitoring the results of our Quality Management Activities and evaluating if our produced product meets our
customer’s requirements and functions as intended.

Uses verification activities to confirm quality requirements are being met, and  investigates into the root cause of quality issues.
Alvin’s Exam Prep Tip:
It’s in this process of  Control Quality that you are verifying and checking the Deliverable – Does it meet the requirements? If it
doesn’t, you raise a  Change Request.
Alvin the PM

ITTO Analysis: Control Quality

1) What do You Need? (Input) 
– *Deliverables, *Work Performance Data, *Approved Change Requests, Project Management Plan, Project Documents,
OPA/EEF
>> Project Management Plan: Quality Mgmt Plan
>> Project Documents: *Quality Metrics, *Test & Evaluation Documents, Lessons Learned Register

2) What is the Result? (Output)

– *Quality Control Measurements, *Verified Deliverables, *Work Performance Information, *Change Requests, Updates to
Project Documents & Project Management Plan

3) How Do You Accomplish It? (Tool/Technique)

– Inspection; Testing/Product Evaluations; Meetings; Data Gathering, Analysis, and Representation
>> Data Gathering Tools: Checklists, Check Sheets, Statistical Sampling, Questionnaires & Surveys
>> Data Analysis: Root Cause Analysis, Performance Reviews
>> Data Representation:  Cause & Effect Diagrams; Control Charts; Histograms; Scatter Diagrams
Key Concepts:
1. Control Quality produces Verified Deliverables which are inputs into Validate Scope

2. Before we validate our design with our customers and deliver our final product, we perform Control Quality to verify that our
project deliverables are complete, comply with all standards & regulations and that it functions as intended (i.e. fitness for use)

3. Difference between Agile & Waterfall Methodologies for Control Quality Activities
– Agile Approach: Control Quality may be performed by all members throughout the project
– Waterfall Approach: Control Quality activities performed by a specific group towards the end of the project.

4. Approved Change Requests originate as Outputs from Perform Integrated Change Control. (Click here to review Integration
Management)
>> Control Quality uses these Approved Changes Requests to verify if everything that has been implemented is complete and
correct.

5. Project Deliverables are outputs from Direct & Manage Project Work, and are compared to the Acceptance Criteria from the
Project Scope Statement.

6. Testing / Product Evaluations is used to investigate if any issues, non-conformances, or defects are present within the
product
Key Terms to Remember:
1. Work Performance Data contains the raw data of our product & project status. Examples include Quality metrics,
Observations, Technical Measurements, and Project Performance Data (e.g. cost & schedule).
>> Remember that Work Performance Data is an output from Direct & Manage Project Work. Refer to Integration Management
for detail.

2. Work Performance Information is based upon the analyzed Work Performance Data and contains information regarding why
we rejected parts. Examples of Work Performance Information may include: Reworks required, Corrective Actions needed, List
of Deliverables, Quality Metrics, etc.

3. Quality Metrics – A product or project attribute that we want to measure against. This is an output from Plan Quality
Management established during the Planning phase of the project.

**4. Make sure you understand the difference between Checklists and Checksheets

Checklists – Helps verify that activities are being conducted in accordance with the quality requirements in a highly structured
manner

Checksheets – Think of this as a Tally Sheet, which is used to record the frequency of occurrence for an event or defect. >> For
example, on 10/1, there were 20 occurrences of Defect A, and on 10/15, there were 30 additional occurrences of Defect A.

5. Verified Deliverables – This process helps verify if your deliverables are correct and meet the requirements.
>> What this means: You’ve inspected a deliverable, and you’ve determined that it functions as intended (“fit for use”), and it
conforms to its requirements. At this point in time, the deliverable is now ready to be sent over to the customer, and it therefore
becomes an input to Validate Scope of the Scope Management Knowledge Area. Refer to Scope Management for detail.

6. Control Charts – Is your process stable or does it have too much variability that parts will be out-of-tolerance and not meet
the product specifications?
>> Maps your raw data measurements against the mean, and Upper & Lower Control Limits. These Control Limits are calculated
from +/- 3 standard deviations (3 deviations from the mean).

7. Statistical Sampling – In order to verify the quality of a product and confirm if it meets its Acceptance Criteria, this involves
sampling a portion of units from a population to perform testing or inspection (visual or functional)

Overview of Resource Management

Resource Management is split up into the following six (6) Process Groups:
1) Plan Resource Management (PL)
2) Estimate Activity Resources (PL)
3) Acquire Resources (EX)
4) Develop Team (EX)
5) Manage Team (EX)
6) Control Resources (M&C)
Purpose: Understanding what resources are needed to successfully execute your project, and acquiring & managing these
resources
>>Alvin’s Exam Tip:
This Knowledge Area can be confusing and really easy to mix up with Procurement Management  and  Stakeholder
Management…

So, just think of Resource Management as: What resources do you need (physical or personnel) and how will you procure &
manage them?

Remember… Resource Management is focused on  BOTH  the Team and Physical Resources.
Alvin the PM

Key Concepts:
1. What is the difference between Physical and Team Resources?
– Physical Resources = Supplies, Materials, tools, equipment, facilities, software, cloud/IT, databases
– Personnel/Team Resources= Human resources (e.g. Engineers, Supply Chain Buyers, Analysts, Manufacturing Specialists)

2. What are the factors which can influence the management & development of a team?

– Environment and locations of your Team members
– Organization’s change management, culture, and politics
– How stakeholders communicate with each other
Process #1: Plan Resource Management
1.1 Resource Management: Plan Resource Management (PL)
– Pg. 312, PMBOK 6th Edition

Purpose: Developing the Resource Management Plan for how to manage your resources. Think of this as the first step for
Planning your Resources…
How will you make sure that you have enough resources to launch your project to 100% completion?

In other words, what process will you follow to estimate/determine the resources needed, and ultimately, to procure and
manage these resources?
ITTO Analysis: Plan Resource Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: Quality Management Plan, Scope Baseline
>> Project Documents: Project Schedule, Requirements Documentation, Risk Register, Stakeholder Register
2) What is the Result? (Output)
– *Resource Management Plan, *Team Charter, Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

–*Organizational Theory; Expert Judgment; Meetings; Data Representation
>> Data Representation: *Responsibility Assignment Matrix, *Hierarchical Charts, and *Text-oriented Formats
Key Concepts:
Resources are limited, and oftentimes, may compete for priority.

This of course, impacts your project’s costs, schedule, and risks, and are all critical factors to consider when you’re planning your
project.

As a Project Manager, it’s your responsibility to determine if you have enough resources to support your project’s work, and to
plan accordingly for the availability and/or scarcity of these resources.
Key Terms to Remember:
1. Data Representation Techniques
Hierarchical Charts – This is a graphical, top-down graphic showing positions and responsibilities of each team member, or a
hierarchical list of team & physical resources based upon category and resource type.
>>Example: Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), and Resource Breakdown Structure

Text-oriented Formats – Outlined descriptions of the job positions and responsibilities of each team member

Responsibility Assignment Matrix, RAM – Shows the connection between Work Packages/ActivitIes and Team Members.
>> The most commonly used RAM is known as a RACI Chart

RACI Chart Example

Example of a RACI Chart

R = Responsible: Who is the one actually performing the work?
A = Accountable: Typically, only one person is held Accountable for the completion of an activity. For example, the Engineer’s
Manager.
C = Consult: Who are Subject Matter Experts or other team members you can reach out to while working on the execution of
this task?
I = Inform: Who do you notify that the work is being completed?

2. Organizational Theory – This explains how people and teams behave and interact with each other.

3. Resource Management Plan – This Plan contains information for how we will identify, procure and manage our resources.
What’s inside the Resource Management Plan?
1 – How resources will be determined and acquired
2 – Roles & Responsibilities
3 – Organization Charts
4 – Guidance for how resources will be managed and released from the project
5 – Development and training of the team
6 – Description of how team members will be rewarded and recognized for their efforts
7 – Controlling of Resources – How do we make sure that resources are available when needed?
Alvin the PM

4. Team Charter – This defines the expectations of what is accepted from each team member, and in so doing, helps increase
the team’s cohesiveness and productivity
>> What are the team’s guidelines (communications & etiquette for holding meetings), values (code of conduct), principles, and
processes to follow (making decisions, and resolving conflict)
Process #2: Estimate Activity Resources
1.2 Resource Management: Estimate Activity Resources (PL)
– Pg. 320, PMBOK 6th Edition

Purpose: Determining the resources you need (staff, material, supplies, equipment) to execute the project.

During this process, you’ll be creating a Resource Breakdown Structure outlining the resources (qty and type) you need to
perform your project’s activities, as well as a list of your Resource Requirements and your Basis of Estimates.
ITTO Analysis: Estimate Activity Resources
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource Management Plan, Scope Baseline
>> Project Documents:  Activity Attributes & List, Logs (Assumption and Risk Register), Resource Calendars, Cost Estimates

2) What is the Result? (Output)

– *Resource Requirements, *Resource Breakdown Structure, *Basis of Estimates, Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

**Key Tools: Estimation Techniques (Bottom-up, Analogous, Parametric)
Other Tools:  Expert Judgment, Data Analysis, PMIS, and Meetings
>> Data Analysis: Alternatives Analysis
Key Concepts:
This Process Group is performed simultaneously with Estimate Costs.

If for example, you need additional resources, you may want to hire a contractor to obtain the required technical knowledge,
and you’ll also need to determine what those additional costs would be. Or, providing training to your Engineer so he/she can
have the skillset needed to perform the more complex work.

(1) Estimation Techniques:

Bottom-up – Estimating resources at the activity level and then rolling this up to the Work Package Level)

Analogous – Leverage previous project’s for comparison

Parametric – Estimation technique that uses a statistical relationship between historical data. For example, it takes X # hours to
complete work.

(2) Alternatives Analysis – Evaluate different options (e.g. make vs buy, using internal vs external resources, different equipment
manufacturers, using different materials) and evaluating impact on project’s objectives (quality, cost, risk, and scope)
Key Terms to Remember:
1. Resource Requirements – What resources do you need to complete each activity? Qty & type?

2. Resource Breakdown Structure – Top-down graphical representation showing the resource categories needed to perform
your project’s work, such as Labor, Material, Equipment, and Supplies

3. Resource Histogram – Compares the resources you need to their availability

Process #3: Acquire Resources
1.3 Resource Management: Acquire Resources (EX)
– Pg. 328, PMBOK 6th Edition

Purpose: This is the process for obtaining all the project’s required resources (personnel, equipment, material, supplies, tools).
It’s during this process group that you’ll be assigning team members to their roles & responsibilities.
ITTO Analysis: Acquire Resources
1) What do You Need? (Input) 
– Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource Management Plan, Procurement Management Plan, Cost Baseline
>> Project Documents: Project Schedule, Resource Calendars & Requirements, Stakeholder Register

2) What is the Result? (Output)

– *Physical Resource Assignments, *Team Assignments, *Resource Calendars, *Change Requests, Updates to Project
Management Plan & Project Documents, Updates to OPA & EEF

3) How Do You Accomplish It? (Tool/Technique)

– *Virtual Teams, *Pre-assignment, Decision making, and Interpersonal & Team Skills
>> Decision Making; Multicriteria Decision Analysis
>> Interpersonal and Team Skills: Negotiation
Key Concepts:
1. Remember that resources you procure can be from either inside OR outside your company.
>> Internal Resources are obtained by Negotiating, using your Interpersonal and Team Skills, and working with the respective
functional manager
>> External Resources are obtained through the procurement process.
Key Terms to Remember:
1. Pre-assignment – This is when you assign your stakeholders to your project IN ADVANCE

2. Virtual Teams – Team members who do NOT meet in-person and work remotely from each other.

3. Multicriteria Decision Analysis – This technique uses criteria to rate potential resources and which ones will be procured.
Factors to consider include: Availability, cost, experience, location, skill level

4. Assignments: Team & Physical Resource Assignments

Physical Resource Assignments – This captures which physical resources will be used during the project: Equipment, materials,
supplies

Project Team Assignments – Assigning the roles & responsibilities of your team members

5. Resource Calendars – What are the actual working business days that resources are available?
Process #4: Develop Team
1.4 Resource Management: Develop Team (EX)
– Pg. 336, PMBOK 6th Edition

Purpose: This is the process where you will improve your team dynamics, the team member’s competencies, and how they
interact with each other.

What is the goal of Developing the Team? Promote teamwork, increase team morale and productivity, create an environment
of team spirit
(1) Enhance the team’s technical knowledge (Helps drive project to successful completion)
(2) Create an environment of trust and openness (Less conflict and increased collaboration)
(3) Drive accountability and ownership from the team so they feel empowered to make decisions (Each person will want to do
his/her best to contribute to the project’s success)

ITTO Analysis: Develop Team

1) What do You Need? (Input) 
– Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource Management Plan
>> Project Documents: Project Schedule, Team Assignments, Resource Calendars, Lessons Learned, Team Charter

2) What is the Result? (Output)

*Team Performance Assessments, *Change Requests, Updates to Project Management Plan & Project Documents, Updates to
OPA & EEF

3) How Do You Accomplish It? (Tool/Technique)

– *Colocation, *Communication Technology, *Individual & Team Assessments, *Recognition & Rewards, *Training, *Virtual
Teams, Meetings, Interpersonal and Team Skills
>> Interpersonal and Team Skills: Conflict management, influencing, motivation, negotiation, team building
Key Concepts:
Tuckman Ladder – 5 Stages of Development
1) Forming – The ‘introduction’. Your Team Members meet each other and learn about the project and their assigned
responsibilities & roles. Everyone is a little ‘shy’ in the beginning.

2) Storming – You are STARTING to work on the project now! Everyone starts looking into the work required for the project, and
you begin taking technical decisions.
>> This is where the ‘storm’ hits, and people disagree, since the team members may not be collaborative or open to each other’s
ideas. This makes the environment counterproductive.

3) Norming – This is the period where the team dynamics goes to ‘normal’ and everyone builds a normal relationship with each
other.
>> Your Team now starts being collaborative and supporting & trusting each other. Your goal is to move from Storming to
Norming as soon as possible, so that everyone trusts each other and works effectively.

4) Performing – This is when you have the DREAM TEAM and everyone is ‘performing’ at their best, like a well oiled machine! All
issues are worked through independently. Think, Peak Performance!

5) Adjourning – Closing out the project and releasing the team members from the project.
Key Terms to Remember:
1. Team Charter – Outlines the guidelines for how the team will operate

2. Colocation: Place team members in the SAME location

3. Communication Technology – Shared portals, Audio/Video Tools, Email & Chat

4. Team Performance Assessments – These assessments are a way to evaluate your team’s performance – how well are we
doing, collectively as a group? Note that this is the KEY output of the Develop Team process.
>> Use this evaluation to identify ways to improve your team’s behavior & performance. This could be coaching, training, and
mentorship.

5. Individual and Team Assessments – These are tools to give you an idea of the strengths and weaknesses of your team
members. Examples of assessments include: surveys, assessments, interviews, and ability tests.

6. Recognition and Rewards – Always consider cultural backgrounds when giving out rewards & recognition to your team
members
Process #5: Manage Team
1.5 Resource Management: Manage Team (EX)
– Pg. 345, PMBOK 6th Edition

Purpose:  Optimizing the the project’s performance by tracking each person’s performance, giving feedback, helping solve
issues, and managing team changes.

In this process, you’re influencing the behavior of your Team through leadership, conflict management, and communication.

This focuses more on the HUMAN side of things.

ITTO Analysis: Manage Team
1) What do You Need? (Input) 
– *Work Performance Reports, *Team Performance Assessments, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource Management Plan
>> Project Documents: Logs (Issue Log, Lessons Learned), Team Assignments, Team Charter

2) What is the Result? (Output)

*Change Requests, Updates to Project Management Plan & Project Documents, Updates to EEF

3) How Do You Accomplish It? (Tool/Technique)

– *Interpersonal and Team Skills, PMIS
>> Interpersonal and Team Skills: Conflict management, influencing, leadership, emotional intelligence, decision making
Key Concepts:
Work Performance Reports
– These reports are the results/visual representation of the analyzed Work Performance Information
– Helps determine future resource requirements, recognition & rewards, and updates to resource management plan

Conflict Resolution Techniques – How do you resolve Conflict?

(1) Withdraw/Avoid – Avoiding and backing away from the situation. You’re retreating from a conflict, postponing the issue, and
you’d like someone else to resolve the issue.
>> Example: Not responding to an email or phone call; Having another Manager help resolve conflict

(2) Smooth/Accommodate – Highlights the areas that everyone agrees upon and considers everyone’s viewpoint to maintain
the relationship.
>> Goal is to maintain relationships within the team. More cooperative & less assertive.
>> Example: Repeating the areas that everyone agrees to

(3) Compromise/Reconcile – Keep everyone happy! This is a ‘middle-ground’ or neutral zone. Brings some satisfaction to
everyone.
– Might temporarily solve the problem in the near-term, but could lead to problems in the future. Leads to ‘lose-lose’ outcome.
>> Example: Agree to one solution that was recommended by all teams.

(4) Force/Direct – Being an autocrat, where you force your view onto others.
– Leads to a win / lose situation. One person will feel like they lost.
>> Example: In a team discussion, deciding to follow the strategy from Management/HIPPO (i.e. the Highest Paid Person’s
Opinion).

(5) Collaborate/Problem Solve – Best approach to solve conflicts. You need to have open dialogue in order to incorporate
different viewpoints, and address everyone’s points. Leads to ‘win-‘win
>> Reaching a consensus

What are the sources of Conflict? 7 Sources of conflict in order from highest to lowest:
>>Schedule, Project priorities, Resources, Technical opinions, Administrative procedures, Cost, Personality
Key Terms to Remember:
1. Emotional Intelligence – Understanding your own emotions, as well as those around you on your team

2. Influencing – Project Managers have little to no authority over team members in a matrix-style organization; therefore, be
persuasive, articulate your points, and build trust with your team

3. Leadership – Motivate your team for high performance

Process #6: Control Resources
1.6 Resource Management: Control Resources (M&C)
– Pg. 352, PMBOK 6th Edition

Purpose:  Were the resources you planned actually available during the execution of the project? Do any corrective actions need
to be implemented if there aren’t sufficient resources available? And, how does the actual usage of the resources compare to
the planned resources? .

In contrast to Develop and Manage Team, which is focused on employee/staffing resources, Control Resources is focused on
the availability of physical resources.
ITTO Analysis: Control Resources
1) What do You Need? (Input) 
– Work Performance Data, Agreements, Project Management Plan, Project Documents, OPA
>> Project Management Plan: Resource Management Plan
>> Project Documents: Logs (Issue Log, Lessons Learned, Risk Register), Physical resource assignments, Project Schedule, and
Resource Breakdown Structure & Requirements

2) What is the Result? (Output)

*Work Performance Information, Change Requests, Updates to Project Management Plan & Project Documents

3) How Do You Accomplish It? (Tool/Technique)

*Problem Solving, *Interpersonal and Team Skills, *PMIS, and Data Analysis
>> Data Analysis: Alternatives Analysis, Cost-benefit Analysis, Performance Reviews, Trend Analysis
>> Interpersonal and Team Skills: *Negotiation, *Influencing
Key Terms to Remember:
1. Resource Requirements – What are the physical resources which you need in your project?

2. Physical Resource Assignments – What is your planned usage for each physical resource?

3. Trend Analysis – How is our project performing with respect to time? Are we getting better or worse?

4. Work Performance Information

– By examining the resource requirements and how the resources were allocated for your project, how is the project going? Are
all correct resources being used at the correct time for the correct tasks?

Overview of Communications Management

Communications Management is split up into the following three (3) Process Groups:
1) Plan Communications Management (PL)
2) Manage Communications (EX)
3) Monitor Communications (M&C)
Purpose: Ensuring that your stakeholders receive information effectively, by 1) Developing a Communication Strategy, and 2)
Implementing the Communication Strategy
>>Alvin’s Exam Tip:
Think of this Knowledge Area as answering the following question: Is everyone getting the right message at the right time?
Alvin the PM

Key Concepts:
1. What are the different ways that we can communicate information?
>> Written, Spoken, Formal/informal, Gestures, Media, Choice of Words

2. Examples of Formal Communication

-Reports, meeting agendas & minutes, stakeholder briefings, presentations
– Formal Meetings (regular and ad hoc)

3. Examples of Informal Communication

-Emails, Social Media, Website
– Informal Ad hoc discussion

4. What is the difference between Communication vs Communications? (with an ‘s’)

– Communication – How we share and exchange information with others
– Communications – The SYSTEM we use to send and receive information from others

5. What are the 5C’s of Written Communication?

1- Clarity (Have a clear purpose) – Is it CLEAR?
2- Conciseness (Be short and to the point) – Is it CONCISE?
3- Correctness (Is the grammar correct?) – Does it have CORRECT grammar & punctuation?
4- Cohesiveness – Is it COHERENT? Does everything flow together?
5- Control (Is the writing well coordinated?) – Is there a CONTROLLED flow of words? Is it logical?
Process #1: Plan Communications Management
1.1 Communications Management: Plan Communications Management (PL)
– Pg. 366, PMBOK 6th Edition

Purpose: Developing your strategy for how you will manage communications with all members on your project & actively keep
them engaged.

Your Communication Strategy will address – what information you will communicate, who will receive that information, when
they will receive it, using what technique, and how often.
ITTO Analysis: Plan Communications Management
1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, EEF/OPA
>> Project Management Plan: Resource Management Plan, Stakeholder Engagement Plan
>> Project Documents: Requirements Documentation, Stakeholder Register

2) What is the Result? (Output)

– *Communications Management Plan, Updates to Project Management Plan and Project Documents

3) How Do You Accomplish It? (Tool/Technique)

-*Communication Requirements Analysis; *Communication Technology, *Models, and *Methods; Interpersonal & Team Skills,
Data Representation, Expert Judgment, Meetings
>> Interpersonal and Team Skills: Communication Styles Assessment, Political & Cultural Awareness
>> Data Representation: *Stakeholder Engagement Assessment Matrix
Key Concepts:
A Project Manager spends 90% of his/her time communicating on projects.

1. # of Communication Channels = (N x (N-1) )/2

Refer to Formula Guide for detail.
Key Terms to Remember:
1. Communications Management Plan – Establishes the communication needs of stakeholders and how those needs will be
addressed:
– What are we communicating and why?
– Between which team members?
– What is the best communication method to deliver this information?
– Who is responsible for communicating the information?
– When should this information be communicated and When?
2. Stakeholder Engagement Assessment Matrix – Assesses the gaps between the Current & Desired engagement level for your
stakeholders
>> Different levels of Engagement: Unaware, Resistant, Neutral, Supportive, and Leading)

3. Communication Styles Assessment – What are the gaps in stakeholder engagement that would require communication
tailored to specific stakeholders?

4. Political & Cultural Awareness – Organization’s political environment, relationships of power, who has influence?

MODELS OF COMMUNICATION
(1) Basic Linear: Sender + Receiver
>> Steps: Encode > Transmit Message > Decode

(2) Interactive: Sender + Receiver + Feedback

>> Steps: Encode > Transmit Message > Decode > Acknowledge > Feedback/Response

(3) Complex: Incorporates the human elements of sending & receiving

METHODS OF COMMUNICATION
(1) Interactive: Conducted between >= 2 people, Someone provides message, another person receives it and responds to the
message

(2) Push: One-directional; Sending specific information to a specific recipient.

(3) Pull: Storing information into a database/central location. Used for large information sets and/or large audiences
Process #2: Manage Communications
1.2 Communications Management: Manage Communications (EX)
– Pg. 379, PMBOK 6th Edition

Purpose: Creating an effective flow of information between all team members, based upon your established Communications
Management Plan
ITTO Analysis: Manage Communications
1) What do You Need? (Input) 
– *Work Performance Reports, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Communications Management Plan, Resource Management Plan, Stakeholder Engagement Plan
>> Project Documents:  Logs (Change, Issue, Lessons Learned, Stakeholder Register), Quality & Risk Reports

2) What is the Result? (Output)

– *Project Communications, Updates to Project Management Plan & Project Documents; Updates to OPAs

3) How Do You Accomplish It? (Tool/Technique)

Unique Tools: Communication Technology, Methods, and Skills; Project Reporting
Other Tools: Interpersonal & Team Skills, PMIS, and Meetings
>> Interpersonal & Team Skills:  Active Listening, Conflict Management, Cultural & Political Awareness, Meeting Management,
Networking
>> Communication Skills:  Communication Competence, Feedback, Nonverbal, Presentations
Key Concepts:
The Key Deliverable from this process is Project Communications, which includes Reports, Status, Schedule Progress,
presentations, etc

1. What factors influence the type of Communication Technology being used?

-Location of team members
-Resources you have available
– Organization’s governance and culture

2. Four (4) Examples of Communication Skills

(1) Factors such as: clarity, relationships, leadership
(2) Feedback & actively understanding what the other person’s response is
(3) Nonverbal – Analyzing someone else’s body language and gestures
(4) Presentations
Key Terms to Remember:
1. Project Reporting – This is focused on collecting & sharing project information, and produces the key deliverable of Project
Communications (reports, presentations, etc)
2. Work Performance Reports – These reports are shared and distributed to the team as defined in the Communications Mgmt
Plan
>> Examples include: Status Reports, Progress Reports, Earned Value Graphs, Burndown Charts, Vendor Performance
Information, dashboards
Process #3: Monitor Communications
1.3 Communications Management: Monitor Communications (M&C)
– Pg. 388, PMBOK 6th Edition

Purpose: This is the process where you’re making sure that your team & stakeholders have the information they need

What is the goal of Monitoring Communications?

Is the right message being delivered to the right audience at the right time?
Alvin the PM

ITTO Analysis: Monitor Communications

1) What do You Need? (Input) 
– *Work Performance Data, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource Management Plan, Communications Management Plan, Stakeholder Engagement Plan
>> Project Documents: Issue Log, Lessons Learned Register, Project Communications

2) What is the Result? (Output)

*Work Performance Information, *Change Requests, Updates to Project Management Plan & Project Documents

3) How Do You Accomplish It? (Tool/Technique)

– Expert Judgment, PMIS, Data Representation, Interpersonal & Team Skills, Meetings
>> Interpersonal and Team Skills: Observation/conversation
>> Data Representation:  Stakeholder Engagement Assessment Matrix
Key Terms to Remember:
1. Communications Management Plan – What is the strategy for how we will collect, create, and distribute information to the
team?

2. Stakeholder Engagement Plan – What communication strategies will we use to engage stakeholders?

3. Observation/Conversation – A type of Interpersonal and Team Skill that you can use to have open dialogue with your team
members and figure out what are potential issues and potential conflicts occurring in the project.

4. Work Performance Information – During Control Communications, you’ll be analyzing your Work Performance Data and
seeing how effective were your project communications.

Overview of Risk Management

Risk Management is split up into the following seven (7) Process Groups:
1) Plan Risk Management (PL)
2) Identify Risks (PL)
3) Perform Qualitative Risk Analysis (PL)
4) Perform Quantitative Risk Analysis (PL)
5) Plan Risk Response (PL)
6) Implement Risk Response (EX)
7) Monitor Risks (M&C)

Purpose: Planning how you will perform Risk Management, determine and analyze all Project Risks, their Responses, and the
technique for Monitoring & Controlling Risks throughout the entire project’s lifecycle
>>Alvin’s Exam Tip:
Risks emerge throughout the entire project, and by performing Risk Management on an iterative basis, we can ensure the
project’s goals and objectives are successfully met.
Alvin the PM

Key Concepts:
1. Risk – An uncertain  event that if it occurs, has either a positive or a negative impact on the goals of the project

2. Types of Risks:
(1) Individual Project Risk – Impacts (positively or negatively) the outcome of a specific sub-goal of a project, and not the entire
outcome of the project

(2) Overall Project Risk – Impacts (positively or negatively) the entire project

Process #1: Plan Risk Management
1.1 Risk Management: Plan Risk Management (PL)
– Pg. 401, PMBOK 6th Edition

Purpose: Planning how your Team will actively manage risks for the project
– How will we carry out all activities for Risk Management?
– How do we carry out the risk identification & planning activities?

REMEMBER – You do NOT identify risks or the risk response strategies during this time!!
>> Alvin’s Exam Prep Tip:  Not addressing risks early on, can result in costly issues later on in the project
Alvin the PM

ITTO Analysis: Plan Risk Management

1) What do You Need? (Input) 
– Project Charter, Project Management Plan, Project Documents, EEF/OPA
>> Project Documents: Stakeholder Register

2) What is the Result? (Output)

– *Risk Management Plan

3) How Do You Accomplish It? (Tool/Technique)

– Expert Judgment, Data Analysis, Meetings
>> Data Analysis: *Stakeholder Analysis
Key Concepts:
1. You need the Stakeholder Register for Planning Risk Management, so that you’ll have an understanding of what each
stakeholder’s risk appetite/threshold is
Key Terms to Remember:
1. Risk Management Plan – Outlines how the team will conduct Risk Management Activities. It covers the following:
(1) What will our approach be?
(2) Frequency of Risk Management Activities? During which phases of the project will Risk Mgmt be conducted?
(3) Which stakeholders will be involved & what are their risk appetites?
(4) Budgeting for contingency & management reserves
(5) Decomposition of risks into a hierarchy of categories (Risk Breakdown Structure)
(6) Definition of levels for Risk Probability & Impact
(7) What will our process be for reporting and formally tracking risks?

2. Risk Breakdown Structure (RBS) – Similar to a WBS, but breaks down Risks into different categories

3. Probability & Impact Matrix (P&I): A matrix which assigns numerical or descriptive scoring, based upon…
–> Probability of the Risk coming to fruition
–> Impact of the Risk

This results in a Risk Probability-Impact Score (either numerically such as 3; or, descriptive such as High-High, Medium-Medium,
etc)
Process #2: Identify Risks
1.2 Risk Management: Identify Risks (PL)
– Pg. 409, PMBOK 6th Edition

Purpose: Determining the risks which may impact your project

ITTO Analysis: Identify Risks
1) What do You Need? (Input) 
– *Agreements, *Procurement Documentation, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Baselines (Scope, Schedule, and Cost); Different Management Plans (Requirements, Schedule,
Cost, Quality, Resource, and Risk Management Plan)
>> Project Documents:
Logs (Assumptions, Issues, Lessons Learned, Stakeholder Register),
Estimates (Cost and Duration), Requirements (Requirements Documentation, Resource Requirements)

2) What is the Result? (Output)

– *Risk Register, *Risk Report, Updates to Project Documents
3) How Do You Accomplish It? (Tool/Technique)
Interpersonal & Team Skills; Meetings, Prompt Lists, Expert Judgment; Data Gathering & Analysis
>> Data Gathering: Brainstorming, Checklists, Interviews
>> Data Analysis: Root Cause Analysis, Assumption & Constraints, SWOT, and Document Analysis
Key Concepts:
1. Assumption & Constraint Analysis – Which Assumptions or Constraints pose a risk to the project? Are any assumptions
incorrect? Can any constraints be made more flexible to help provide opportunities to minimize/mitigate risks?

2. Facilitation – Helps remove bias from a conversation and focuses on collaboration

Key Terms to Remember:
1. Risk Register: A list of potential project risks, owners of each risk, and a potential risk response

2. Risk Report: Report summarizing the project risks

3. Prompt List – An already established list of Risk Categories to facilitate with Risk Brainstorming Identification
Sessions. Examples include
–> PESTLE (political, economic, social, technological, legal, environmental)
–> TECOP (technical, environmental, commercial, operational, political)
–> VUCA (volatility, uncertainty, complexity, ambiguity)
Process #3: Perform Qualitative Risk Analysis
1.3 Risk Management: Perform Qualitative Risk Analysis (PL)
– Pg. 419, PMBOK 6th Edition

Purpose: From the risks which were identified by the Team, you’ll work with your Team members to determine the High-
impact and High-Priority risks which should be analyzed further (i.e. based upon their Impact & Likelihood of Occurrence) 
ITTO Analysis: Perform Qualitative Risk Analysis
1) What do You Need? (Input) 
-Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Risk Management Plan
>> Project Documents: Logs (Assumption, Risk and Stakeholder Register)

2) What is the Result? (Output)

Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

– Expert Judgment; Meetings; Data Gathering, Analysis, & Representation; Interpersonal & Team Skills; *Risk Categorization;
>> Data Gathering: Interviews
>> Data Analysis: *Data Quality Assessment, *Probability & Impact Assessment, *Assessment of other Parameters
>> Data Representation:  Probability & Impact Matrix, Hierarchical Charts
>> Interpersonal and Team Skills: Facilitation
Key Concepts:
1. The Key Deliverable from this Process is to update the Risk Register -> Creating a sorted list of risks which have the highest
priority & impact, as well as a Watch List for low risks to be on the lookout for

1. Hierarchical Chart – A bubble graph showing the relationship between three-dimensions of data, for >2 Risk Parameters (e.g.
impact, detectability, proximity)
Key Terms to Remember:
1. Risk Data Quality Assessment – How accurate and reliable is the data that was generated for the risks?

2. Risk Probability & Impact Assessment – Evaluate the Likelihood of Occurrence and Impact of each Risk;
>> What is the Impact on the goals of project? Cost, Schedule, Quality, Performance

3. Risk Categorization – Categorize risks based upon Root Causes, project phase, team owners, budget, areas of the project
Process #4: Perform Quantitative Risk Analysis
1.4 Risk Management: Perform Quantitative Risk Analysis (PL)
– Pg. 428, PMBOK 6th Edition

Purpose: In this process, you’ll numerically analyze and ‘quantify’ the effect of the narrowed down risks from the previous
process, Qualitative Risk Analysis.

The output of this process is then used as supplementary information for Planning Risk Responses.
ITTO Analysis: Perform Quantitative Risk Analysis
1) What do You Need? (Input) 
-Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Risk Management Plan and Baselines (Scope, Schedule, Cost)
>> Project Documents:  Assumption Log, Estimates (Basis of Estimates, Cost, Duration), Forecasts (Schedule & Cost), Milestone
List, Resource Requirements, Risk Register & Report

2) What is the Result? (Output)

Updates to Project Documents (Risk Report)

3) How Do You Accomplish It? (Tool/Technique)

– *Representations of Uncertainty; Expert Judgment; Data Gathering & Analysis; Interpersonal & Team Skills;
>> Interpersonal & Team Skills:  Facilitation
>> Data Gathering: Interviews
>> Data Analysis: Simulation, Sensitivity Analysis, Decision Tree Analysis, Influence Diagrams
Key Concepts:
REMEMBER – Performing Quantitative Risk Analysis is NOT required for every project!!

To perform quantitative risk analysis, you may want to analyze the data using Simulation software (e.g. Monte Carlo).

If you’re analyzing your Cost Risks, you’ll need your Cost Estimates. If you’re analyzing your Schedule Risks, you’ll need
your Duration Estimates.

Performing Quantitative Risk Analysis can produce histograms (e.g. S-Curve) illustrating what is the Probability of achieving a
Project Cost or Schedule. For example, there’s a 75% probability of meeting a Cost of <$1M. The main project deliverable after
performing Quantitative Risk Analysis, you’ll be updating your Risk Report.
Key Terms to Remember:
1. Representations of Uncertainty – This is a technique which uses a Probability Distribution Curve to analyze the likely values
for duration, cost, and/or resources required. >> Examples of probability distributions used are beta, discrete, triangular,
lognormal, normal, uniform, and triangular.

2. Decision Tree Analysis – Technique which calculates the Expected Monetary Value to help you and your Team determine the
best path to follow, when taking into consideration activity costs

3. Influence Diagram – Visual tool that helps understand the relationship, sequencing of events, and their effects between these
project outcomes

4. Sensitivity Analysis – This technique is used to determine which risks have the BIGGEST impact on your project’s goals.
>> A commonly used example is the Tornado diagram, which shows activities or risks in descending order based upon the
strength of correlation

5. Monte Carlo Analysis – This is a technique which runs simulations many times over and over in order to calculate
the probability and impact if a risk occurred, and displays this information in an S-Curve graph (i.e. cumulative probability
distribution)
>> For risks associated with Costs and Schedule, this quantifies the probability and confidence of achieving a project goal, using
initial estimates for your project’s planned Cost and Schedule Durations.
EXAMPLE OF MONTE CARLO ANALYSIS
Let’s say you’re working on a project and one of the biggest risks is associated with scheduling – specifically, how long will the
Prototyping Development Stage of your project take? This is due to the complexity and inherent risks with using a new
technology that your Team doesn’t have experience working with.

From working with your team, you have a very rough estimate, along with best-case and worst-case estimates.

Given this information, the Monte Carlo Analysis Simulation Technique evaluates these different combinations and outputs
the different probabilities for when you can expect to complete the Prototyping Development Phase of your project.

It will produce an S-probabilistic distribution curve and give you a range of potential outcomes for the end date of your project’s
prototyping work. For example, it might tell you that…
>> (1) You have a 60% chance of completing all Development work within 48 weeks
>> (2) You have a 95% chance of completing the activity in 60 weeks.
Process #5: Plan Risk Response
1.5 Risk Management: Plan Risk Response (PL)
– Pg. 437, PMBOK 6th Edition
Purpose: In this process, you’ll be developing & choosing which strategies will be used to minimize negative risks, or enhance
the opportunity of positive risks.
ITTO Analysis: Plan Risk Response
1) What do You Need? (Input) 
-Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Risk & Resource Management Plan and Cost Baselines
>> Project Documents:  Logs (Lessons Learned, Risk, and Stakeholder Register), Project Schedule, Team Assignments, Resource
Calendar, Risk Report

2) What is the Result? (Output)

*Change Requests, Updates to Project Management Plan & Project Documents

3) How Do You Accomplish It? (Tool/Technique)

Unique Tools: Strategies for Threats, Opportunities, and Overall Project Risk; Contingent Response Strategies

Other Tools: Expert Judgment, Data Gathering & Analysis, Interpersonal & Team Skills, Decision Making
>> Interpersonal & Team Skills:  Facilitation
>> Data Gathering: Interviews
>> Data Analysis: Cost-Benefit and Alternatives Analysis
>> Decision Making: Multicriteria Decision Analysis
Key Concepts:
STRATEGIES FOR NEGATIVE RISKS (“Threats”)
1. Accept – Accept that there is a risk, however you don’t take any action in response to the risk.
>> When to use?  For low-priority and low-impact risks

2. Avoid – Removing the threat, preventing it from happening, or shielding the project from its consequence
>> This is the best strategy to use since it completely prevents the risk from happening, but may not be possible in most
scenarios, due to resource constraints
>> When to use? Use for Severe & Critical Risks which have a HIGH Likelihood of Occurring, and a HIGH Impact

3. Escalate – If the risk is NOT under your control, you will “ESCALATE” this risk concern to Management and your PMO
>> When to use? For risks which are OUTSIDE the project’s scope. Or, if you don’t have the authority or influence to manage the
risk, you ESCALATE it up the Vertical ladder in your organization

4. Mitigate – This is about decreasing the risk’s LIKELIHOOD and/or IMPACT that it will have on the project

5. Transfer – You’re giving a third party the full ownership for managing the risk, as well as the consequence if the risk occurs
>> When to use: If you don’t have sufficient resources, staff, equipment, or technical knowledge in the area
STRATEGIES FOR POSITIVE RISKS (“Opportunities”)
– How can you put all of your attention to make your “opportunities” (or, what’s known as Positive Risks) happen, if there will be
a HUGE benefit and opportunity to your project?

1. Accept – We do nothing. It will happen or it won’t happen.

2. Enhance – Increasing the likelihood that an Opportunity will occur, as well as its impact.

3. Escalate – “Escalating” the risk to management

4. Exploit – Doing EVERYTHING you possibly can so that the opportunity happens

5. Share – Transferring ownership to a third-party so they also share in some of the benefits.
>> So for example –  I can’t do it by myself, and I need someone else’s help. Is there anyone I can partner with to accomplish the
goal and reap the benefits of this “opportunity”?
Key Terms to Remember:
1.  Contingency Plan (Fallback Plan) – A Back-up Risk Strategy if the implemented original risk mitigation strategy does not prove
to be effective

2. Secondary Risks – Risks which occur after implementing a Risk Response

3. Contingency Reserve – Allocate contingencies, for time or cost

4. Residual Risk – The leftover risk after you’ve implemented your Risk Response Strategy. For example, you’ve mitigated the
Risk, but there’s still some risk remaining which you still have to manage.
Process #6: Implement Risk Responses
1.6 Risk Management: Implement Risk Responses (EX)
– Pg. 449, PMBOK 6th Edition

Purpose: In this process, you’ll be executing the Risk Responses which were agreed upon by the Team and captured in the Risk
Register & Report.
ITTO Analysis: Implement Risk Responses
1) What do You Need? (Input) 
-Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: *Risk Management Plan
>> Project Documents:  Logs (Lessons Learned, *Risk Register), and *Risk Report

2) What is the Result? (Output)

*Change Requests, Updates to Project Documents

3) How Do You Accomplish It? (Tool/Technique)

Expert Judgment, Interpersonal & Team Skills, PMIS
>> Interpersonal & Team Skills:  *Influencing
Key Concepts:
1. If a Risk Response is implemented, that means the Risk came to fruition, and you’ll want to document any new issues &
constraints which arise inside your Logs
>> Issue Log, Lessons Learned Register, Risk Register, and Risk Report

2. Project Team Assignments – If responses have to be executed, the team members will need to be assigned to execute those
strategies
Key Terms to Remember:
1.  Influencing – Encouraging your team members to take action
Process #7: Monitor Risks
1.7 Risk Management: Monitor Risks (M&C)
– Pg. 453, PMBOK 6th Edition

Purpose: Tracks and monitors the implementation of the Risk Responses, as well as the effectiveness of the Risk Management
Process.

Also included, is identifying if there are any new risks  which need to be addressed throughout the stages of the project.
ITTO Analysis: Implement Risk Responses
1) What do You Need? (Input) 
–*Work Performance Data, Work Performance Reports, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: *Risk Management Plan
>> Project Documents:  Issue Log, Lessons Learned Register, Risk Register, Risk Report

2) What is the Result? (Output)

*Work Performance Information, *Change Requests, Updates to Project Documents & Project Management Plan, Updates to
OPAs

3) How Do You Accomplish It? (Tool/Technique)

*Audits, Data Analysis, Meetings
>> Data Analysis: *Technical Performance Analysis, *Reserve Analysis
Key Concepts:
In order to Monitor your Risks, you’ll need to have your Work Performance Data and Reports

>> (1) Work Performance Data – Raw data on the project’s status, # of risks, # of implemented risk responses, effectiveness of
implementation, etc

>> (2) Work Performance Reports – Analysis of the Data, which reveals the project’s performance
Key Terms to Remember:
1.  Risk Management Plan – Outlines HOW risks will be monitored, the frequency, and the key stakeholders involved with
reviewing the risks

2. Technical Performance Analysis – Compare technical accomplishments/actual project results against the targeted baseline
3. Reserve Analysis – Compares amount of Contingency Reserve to the amount of risk remaining to identify if the remaining
reserve is still acceptable

4. Audits – Evaluates how effective the Risk Management Process is, and helps us answer the following questions:
>> Is what we’re doing working?
>> Are we missing any risks?
>> Are we spending too little time on Risk Management?
>> How can we do things differently and make it better?

5. Work Performance Information reveals – How effective was our Risk Planning and Implementation Processes?

Overview of Procurement Management

Risk Management is split up into the following three (3) Process Groups:
1) Plan Procurement Management (PL)
2) Conduct Procurements (EX)
3) Control Procurements (M&C)

Purpose: This focuses on the processes for procuring materials, products or services from external resources
Key Concepts:
1. Different types of Agreements are: Contract, SLA, MOA, or Purchase Order

2. Contract outlines what the Seller will be providing, while ensuring compliance with any rules and regulations.

3. Procurement is heavily associated with Legal Obligations and Penalties. Keep in mind that the Project Manager
does NOT typically sign legal agreements
Process #1: Plan Procurement Management
1.1 Procurement Management: Plan Procurement Management (PL)
– Pg. 466, PMBOK 6th Edition

Purpose: Creating your Procurement Management Plan which outlines your contract payment and delivery method:
– Decide on make vs buy decision: Will we make the product by ourselves? Or, will we buy it from outside?
– What Contract Type will we use? (Fixed Price, Cost Reimbursable, T&M?)
– Create Procurement SOW (Statement of Work) & Procurement Documents (Bid Documents)
ITTO Analysis: Plan Procurement Management
1) What do You Need? (Input) 
– Project Charter, Business Documents, Project Management Plan, Project Documents, OPA/EEF
>> Business Documents: Business Case, Benefits Management Plan
>> Project Management Plan:  Scope, Quality, and Resource Mgmt Plans; Scope Baseline
>> Project Documents:  Requirements Documentation & Traceability Matrix; Milestone List; Team Assignments; Resource
Requirements; Risk & Stakeholder Register

2) What is the Result? (Output)

– *Procurement Management Plan; Procurement Strategy, Bid Documents, Procurement Statement of Work; Source
Selection Criteria; Make-or-Buy Decisions; Independent Cost Estimates; Change Requests; Updates to Project Documents, OPA
Updates

3) How Do You Accomplish It? (Tool/Technique)

– *Source Selection Analysis, Expert Judgment, Data Analysis & Gathering, Meetings
>> Data Analysis: *Make-Buy Analysis
>> Data Gathering: *Market Research
Key Concepts:
1. Why are Business Documents required for Planning Procurement Management?
The business goals outlined in the Business Case & Benefits Management Plan need to be aligned with our strategy for
procuring resources & the procurement dates.

For example, if the business goal is to launch our product by the end of Q4 this year, the procurement of our Equipment to
manufacture our products needs to be well received before this date.

2. Source Selection Analysis – What criteria do we want to use for selecting our Vendor? Is it Schedule, Cost? Financial Stability?
Technical Expertise? Quality of prior Performance? On-Time Delivery?
Key Terms to Remember:
1. Procurement Management Plan – What activities do we need to follow for procuring material or services?

2. Procurement Strategy – What is our “strategy” for how we will procure the material/resources? This addresses the following:
>> Delivery Methods (How will the materials be delivered from the Vendor?)
>> Contract Payment Types (What Contracts will we use?)
>> Procurement Phases (How will we execute the procurement in the different phases of our project?)

3. Bid Documents: Used to obtain proposals from potential Vendors. Bid Documents include the following types:
–> Request for Information, RFI (Obtaining more information about the services from a Vendor)
–> Request for Quotes, RFQ (Obtain information on the costs and how the Vendor will satisfy your needs)
–> Request for Proposal, RFP (To determine a solution for the project’s problem)

4. Procurement Statement of Work – Created from the Scope Baseline and defines the elements to include inside the Vendor
contract

5. Source Selection Criteria – How well does our Vendor satisfy our needs? You choose the Vendor you want to work with based
upon this criteria, which may include:
(1) Vendor capability and capacity, Costs, Dates for Delivery
(2) Technical ability, Experience, Qualifications
(3) Financial Stability
(4) Management Experience

6. Make vs Buy Decision – Will we “buy” the material/service from an outside service? Or, will we “make” it in-house?
Contract Types Explained
FIXED PRICE CONTRACTS
Definition – Contract in which the Seller bears the risk since the material or service is purchased at a Fixed Price

TYPES OF FIXED PRICE CONTRACTS

1. Purchase Order – A simple type of contract, in which only one party signs the contract

2. FFP, Firm Fixed Price – This is a contract in which the pricing will NOT change; Most commonly used contract, and most
favored by organizations
>> There could be changes to pricing if the scope changes. BUT.. if the scope doesn’t change, then shouldn’t be any pricing
changes

3. FPIF, Fixed Price Incentive Fee – There is an ‘incentive’ to the Seller. The final price is determined based on the relationship of
final costs to targeted total cost.
>> Seller has a Fixed Price, but he has an incentive to complete the project in advance, cheaper, or at a higher quality.
>> Gives buyer and seller flexibility; Allows some deviation from performance with financial incentives after achieving a metric

4. FPAF, Fixed Price Award Fee – Buyer pays the Seller a Fixed Price + Award based upon the Seller’s Performance

5. FP-EPA, Fixed Price, with Economic Price Adjustments

– If project takes more than a few years, due to the valuation of money and uncertainties regarding the economy, this adds a
clause to allow for an Economic Price Adjustment
Contract Types Explained
COST REIMBURSABLE CONTRACTS
Definition – Seller is reimbursed for all legitimate actual costs, such as travel, material, and services, and is also given an
additional fee (the Seller’s profit)
>> The risk is on the buyer!
>> Also known as Cost Plus Contracts

TYPES OF FIXED PRICE CONTRACTS

1. CPFF, Cost Plus Fixed Fee – Buyer pays the seller all actual fees for executing the project’s work, in addition to a ‘Fixed’ fee,
which is a % of the project’s initial estimated cost

2. CPPC, Cost Plus Percentage of Costs – Buyer pays the Seller all Costs, plus a % of the costs.

3. CPIF, Cost Plus Incentive Fee – Buyer pays the Seller all costs, in addition to a fee which is based upon the Seller satisfying
performance criteria outlined in the contract (cost, schedule, or technical performance).

4. CPAF, Cost Plus Award Fee – Buyers pays the following fees:
>> All Costs + Base Fee + Award Based Upon Performance
>> The Award is only given to the Supplier based upon SUBJECTIVE EVALUATION of the Supplier’s performance
Contract Types Explained
TIME & MATERIALS CONTRACTS
Definition – Contract in which the Buyer pays per hour, or per item.

Example: Service/Labor contracts

Hybrid of Cost Reimbursable and Fixed Plus Contracts

Can have a ‘not to exceed’ clause in the contract so you don’t exceed a specific value
Process #2: Conduct Procurements
1.2 Procurement Management: Conduct Procurements (EX)
– Pg. 482, PMBOK 6th Edition

Purpose: This process is about obtaining Quotes from Vendors and choosing the final Vendor
ITTO Analysis: Conduct Procurements
1) What do You Need? (Input) 
– *Procurement Documentation, *Seller Proposals, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Baselines (Cost); Different Management Plans (Configuration, Procurement, Risk, Requirements,
Communications, Scope Management Plan)
>> Project Documents:  Logs (Lessons Learned, Risk Register & Stakeholder Register); Project Schedule; Requirements
Documentation

2) What is the Result? (Output)

– *Selected Sellers; *Agreements; Change Requests; Updates to Project Documents, Project Management Plan, & OPA

3) How Do You Accomplish It? (Tool/Technique)

*Advertising; *Bid Conferences; Expert Judgment; Data Analysis; Interpersonal & Team Skills
>> Interpersonal & Team Skills: Negotiation
>> Data Analysis: Proposal Evaluation
Key Concepts:
1. Negotiation – This should typically be led by Supply Chain/Procurement, as they have the role & governing responsibility for
signing Vendor
**Remember – the agreements are legally binding

2. What is typically contained inside an Agreement?

– The Agreement is a binding agreement between the Buyer and Seller for a product or service
– An Agreement includes the following components:
>> Procurement SOW; Project Schedule; Payments and Pricing; Acceptance Criteria; Warranties; Any incentives and penalties;
Bonds; Approvals with subcontractors; Terms & Conditions and Clauses
Key Terms to Remember:
1. Procurement Documentation: These are used so that the Buyer and Seller can agree upon the Contract for procuring
materials or services.
>> Bid Documents (RFI, RFP, RFQ)
>> Procurement Statement of Work (SOW)
>> Independent Cost Estimates (Use to verify the proposals sent from the Suppliers)
>> Source Selection Criteria (What criteria will we rank each Supplier?)

2. Seller Proposals: This will be the main input which will be reviewed by the team against the Source Selection Criteria to make
the decision of which Supplier to use

3. Advertising – Obtain other Vendors through ads

4. Bidder Conferences – This is a meeting between the Buyer and Seller before proposals are submitted, and helps clarify what
the requirements & goals are for the procurement.
>> All Sellers are intended to be treated equally

5. Proposal Evaluation – Your Team reviews submitted proposals against the Source Selection Criteria

6. Selected Sellers – These are the final Vendors you will be using.
Process #3: Control Procurements
1.3 Procurement Management: Control Procurements (M&C)
– Pg. 492, PMBOK 6th Edition

Purpose: You’ll be managing your relationships with your Vendors and monitoring their performances, as well as ending any
contracts.

Throughout this process, you’ll be verifying and making sure that the project’s requirements are being met in accordance with
the signed contract, and once all work has been completed, closing all contracts.
Alvin’s Exam Tip:  This process is focused on Claims Administration, meaning directing the contract work with your Vendor and
making sure all obligations are being met.
Alvin the PM

ITTO Analysis: Control Procurements

1) What do You Need? (Input) 
– *Agreements, *Procurement Documentation, *Approved Change Requests, *Work Performance Data, Project Management
Plan, Project Documents, OPA/EEF
>> Project Management Plan: Schedule Baseline; Requirements, Risk, Procurement, and Change Management Plan
>> Project Documents: Logs (Assumption, Lessons Learned, Risk and Stakeholder Register); Milestone List, Quality Reports,
Requirements Documentation & Traceability Matrix

2) What is the Result? (Output)

*Closed Procurements; *Work Performance Information; *Procurement Documentation Updates; Change Requests; Updates
to Project Documents, Project Management Plan, and OPAs

3) How Do You Accomplish It? (Tool/Technique)

– Expert Judgment; *Claims Administration; *Inspection; *Audits; Data Analysis
>> Data Analysis: *Performance Reviews; *Earned Value Analysis; *Trend Analysis
Key Concepts:
This process is performed by BOTH the buyer and seller.

1. Claims Administration – What is a Claim? Changes which the buyer and seller are at a standstill and cannot agree upon
– Process if claims aren’t resolved:
Claims > Disputes > Appeals

2. Procurement Documentation – SOW, payment information, Vendor performance, drawings, etc

3. Work Performance Data – This corresponds to Vendor data regarding their progress on their ongoing activities as well as
incurred versus paid costs

4. Work Performance Information – Information for how the Seller is performing by comparing received deliverables, achieved
performance, and incurred costs
Key Terms to Remember:
1. Closed Procurements – Closing out your Vendor contracts
>> Buyer provides Seller with formal written notice the completion of the contract
>> What document specifies that the contract can be closed out? Contract’s Terms & Conditions

2. Trend Analysis: Examining forecasts using the Estimate At Completion (EAC)

Overview of Stakeholder Management

Stakeholder Management is split up into the following four (4) Process Groups:
1) Identify Stakeholders (IN)
2) Plan Stakeholder Management (PL)
3) Manage Stakeholder Engagement (EX)
4) Monitor Stakeholder Engagement (M&C)

Purpose: This focuses on the processes for identifying who is impacted by the project and understanding their expectations
Key Concepts:
1. Stakeholders can influence the project either positively or negatively

2. When is it best to identify stakeholders? Either BEFORE or DURING the creation of the project charter. This should of course
be performed throughout the project, especially at the beginnings of each Project Phase
3. What are things to consider for projects using an Agile/Adaptive approach?
>> Agile promotes aggressive transparency
>> Client, User, Developer are the key team members involved with exchanging information in a dynamic process for involving
stakeholders
Process #1: Identify Stakeholders
1.1 Stakeholder Management: Identify Stakeholders (IN)
– Pg. 507, PMBOK 6th Edition

Purpose: Identify who each project stakeholder and capture their information (interests, influence, impact)
ITTO Analysis: Identify Stakeholders
1) What do You Need? (Input) 
– Agreements, Project Charter, Business Documents, Project Management Plan, Project Documents, OPA/EEF
>> Business Documents:  Business Case, Benefits Management Plan
>> Project Management Plan: Communications, Stakeholder Engagement Plan
>> Project Documents:  Change & Issue Log; Requirements Documentation

2) What is the Result? (Output)

– *Stakeholder Register, *Change Requests; Updates to Project Documents and Project Management Plan

3) How Do You Accomplish It? (Tool/Technique)

– Expert Judgment; Data Analysis, Gathering, & Representation; Meetings
>> Data Analysis: Stakeholder Analysis; Document Analysis
>> Data Gathering: Questionnaires & Surveys; Brainstorming
>> Data Representation: Stakeholder Mapping/Representation
Key Concepts:
1. Stakeholder Analysis – What is the position of each stakeholder in the organization and their role on the project? Do they
have any expectations or inclinations?

For example, if the business goal is to launch our product by the end of Q4 this year, the procurement of our Equipment to
manufacture our products needs to be well received before this date.

2. Document Analysis: Review previous documentation to identify your stakeholders

3. Stakeholder Mapping (Power, Influence, Interest) – Examples of ways to “map”, categorize, and group your stakeholders are
as follows:

(1) Stakeholder Grids based upon their power, interest, or influence level.

>> Power/Interest; Power/Influence; Impact/Influence
>> This is best used for small projects or low complexity projects with few relationships. 

(2) Stakeholder Cube – A 3-D version of a grid

(3) Influence Direction
– Upward to senior management or project sponsor
– Downward to the team members
– Sideward to the project manager’s peers
– Outward to external stakeholders such as vendors, contractors, federal agencies

(4) Prioritization – Who are the most critical stakeholders to involve?

(5) Salience Model – Useful for large complex stakeholders/relationships, and this model describes stakeholder classes based
upon their:
– Power – Ability to impose their will
– Urgency – Need for immediate attention
– Legitimacy/Level of Involvement – Is their involvement accurate?
Key Terms to Remember:
1. Stakeholder Register – This is a list of stakeholders on your project.
>> Who are the relevant and impacted stakeholders? Their requirements? Expectations? Ability to influence? How are they
classified in terms of impact/influence/power/interest or other classification models?
What is included within the Stakeholder Register?
1. Information identifying your stakeholders

2. Assessment of the Stakeholders – Requirements,  Expectations, Potential to influence outcomes, and stage of having the
biggest influence/impact

3.  Classification/Category based upon the Stakeholder Mapping model

>> Internal/external?, Influence Direction?, Power and Influence?
Alvin the PM

Process #2: Plan Stakeholder Engagement

1.2 Stakeholder Engagement: Plan Stakeholder Engagement (PL)
– Pg. 516, PMBOK 6th Edition

Purpose: Developing your strategy for how you will engage the stakeholders during the execution of the project, based upon
their Needs, Expectations, Interests, and Impact

It is in this process that you figure out how BEST to work with each stakeholder that you’ve identified in your Stakeholder
Register from the previous process ‘Identify Stakeholder’
ITTO Analysis: Plan Stakeholder Engagement
1) What do You Need? (Input) 
– *Project Charter, Project Management Plan, Project Documents, *Agreements, OPA/EEF
>> Project Management Plan: Resource, Communications, and Risk Management Plan
>> Project Documents: Logs (Assumptions, Change, and Issue); Project Schedule, Risk & Stakeholder Register

2) What is the Result? (Output)

– *Stakeholder Engagement Plan

3) How Do You Accomplish It? (Tool/Technique)

Expert Judgment; Decision Making; Meetings; Data Analysis, Gathering, & Representation;
>> Decision Making:  Prioritization/Ranking
>> Data Analysis: Assumption & Constraint Analysis; Root Cause Analysis
>> Data Gathering: Benchmarking
>> Data Representation: *Mind Mapping; *Stakeholder Engagement Assessment Matrix
Key Concepts:
1. Mind Mapping – Visually organize the relationships between stakeholders and level in the organization

2. Benchmarking – Compare your analysis of stakeholders to other projects or other organizations for how best to engage your
stakeholders

3. Prioritization – If your project consists of 50+ stakeholders across different locations,  you’ll have to prioritize your efforts on
developing your relationships with stakeholders which have the largest impact and interest on your project.

What is the difference between the Stakeholder Engagement Plan and Communications Management Plan?

(1) Stakeholder Engagement Plan – the WHY of communication
– Why do the team members need to receive this information? And, how will this help with leading to the project’s success and
managing the entire team?

(2) Communication Management Plan – the WHAT, WHEN, and HOW of communication

– This explains the details of the technology, methods, and models of communications which will be used
Key Terms to Remember:
1. Stakeholder Engagement Assessment Matrix – Compare the different engagement levels of stakeholders and where you
desire their engagement level to be
>> Engagement Levels: Unaware, Resistant, Neutral, Supportive, leading
>> C = Current; D = Desired

Example of a Stakeholder Engagement Assessment Matrix

4. Stakeholder Engagement Plan – This plan delineates the strategy you’ll use to encourage and engage your stakeholders for
making decisions and managing your project
>> How will you engage your stakeholders?
>> What are the needs of the project and how you will meet each person’s expectations?
>> This captures what are the current and desired levels of engagement you’d like to have with your stakeholders, as well as
your strategy for how you’ll engage and keep them involved throughout your project
Process #3: Manage Stakeholder Engagement
1.3 Stakeholder Management: Manage Stakeholder Engagement (EX)
– Pg. 523, PMBOK 6th Edition

Purpose: In the Execution phase of your project, you’re now communicating with each of your team members and making sure
their needs and issues are addressed, and obtaining any support as needed so each person has the utmost level of engagement
for driving the project forward.
Alvin’s Exam Tip:

It’s during Manage Stakeholder Engagement that you’ll be managing your Team’s expectations
by  communicating  and  negotiating with them.

Your goal is to make sure that everyone who is involved in the project understands what the goals of the project are, and how
this will benefit the organization, so that the project can be led towards success.
Alvin the PM

ITTO Analysis: Manage Stakeholder Engagement

1) What do You Need? (Input) 
– Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Communications, Risk, and Change Management Plan; Stakeholder Engagement Plan
>> Project Documents: Logs (Change and Issues); Lessons Learned & Stakeholder Register

2) What is the Result? (Output)

*Change Requests; Updates to Project Documents, Project Management Plan

3) How Do You Accomplish It? (Tool/Technique)

– *Ground Rules, Meetings; Expert Judgment; *Communication Skills; Interpersonal & Team Skills
>> Communication Skills:  *Feedback
>> Interpersonal & Team Skills: *Conflict Management; Cultural & Political Awareness; Negotiation; Observation/Conversation
Key Concepts:
1. Ground Rules are found in the Team Charter, and this sets the behavior for team members

2. Feedback is an example of Communication Skills used in this process group, and include discussions/conversations with
others, meetings, and surveys.

3. The key techniques used in this process group are Interpersonal and Team Skills in order to engage your stakeholders
through communication, building trust, resolving issues, and motivating the entire team.
Process #4: Monitor Stakeholder Engagement
1.4 Stakeholder Management: Monitor Stakeholder Engagement (M&C)
– Pg. 530, PMBOK 6th Edition

Purpose: A Project Manager is responsible for maintaining and monitoring his/her relationships with the stakeholders. In this
process, you’ll be evaluating if there are any issues with engaging your stakeholders.
ITTO Analysis: Monitor Stakeholder Engagement
1) What do You Need? (Input) 
– *Work Performance Data, Project Management Plan, Project Documents, OPA/EEF
>> Project Management Plan: Resource and Communications Management Plan; Stakeholder Engagement Plan
>> Project Documents: *Project Communications; Logs (Issues, Lessons Learned; Risk & Stakeholder Register)

2) What is the Result? (Output)

*Work Performance Information; *Change Requests; Updates to Project Documents & Project Management Plan

3) How Do You Accomplish It? (Tool/Technique)

– Data Analysis & Representation; Decision Making; Communication Skills; Interpersonal & Team Skills; Meetings
>> Data Analysis: Alternatives, Root Cause, and Stakeholder Analysis
>> Decision Making: Multicriteria Decision Analysis, Voting
>> Data Representation: Stakeholder Engagement Assessment Matrix
>> Communication Skills: Feedback & Presentations
>> Interpersonal & Team Skills: Active Listening; Cultural & Political Awareness; Leadership; Networking
Key Concepts:
1. Work Performance Data –  What is the current engagement level of each stakeholder, and which ones are supportive or
resistance to your project?

2. Work Performance Information – What is the status of the engagement with each stakeholder? Their level of support?

3. The key techniques used in this process group are Interpersonal and Team Skills in order to engage your stakeholders
through communication, building trust, resolving issues, and motivating the entire team.

Mathematical Formulas & Equations

Communication Formulas
Communication Channels Equation
# of Communication Channels = [n*(n – 1)] / 2
WHAT DOES EACH VARIABLE MEAN?
n = number of stakeholders on the team, and this should include the project manager as well
Estimation Formulas
#1: Three-Point Estimation Formula (also known as Triangular Distribution)
Estimate = (Optimistic + Most Likely + Pessimistic) / 3
– Pg 201, PMBOK 6th Edition
– Use for Scheduling and Cost Estimates
#2: PERT Estimation Formula (“Beta Distribution”)
Estimate = (Optimistic + 4*Most Likely + Pessimistic ) / 6
– Pg 245, PMBOK 6th Edition
– Use for Scheduling and Cost Estimates
WHAT DOES EACH VARIABLE MEAN?
– Optimistic = What is the best-case that will occur?
– Most Likely = Realistically speaking, how long would it take/how much would it cost?
– Pessimistic = What is the worst-case estimate that would occur?
Critical Path Analysis Formulas
#1: Float Equation
Slack/Float = LS – ES or LF – EF
– Pg 210, PMBOK 6th Edition

Notes:
If Float = 0, then the activity is on the critical path
If Float < 0, then the activity is Behind Schedule!

>> A good way to remember this is to just think that a negative float is bad (bad for being behind schedule).
WHAT DOES EACH VARIABLE MEAN?
– LS = Late Start = Latest time that a task can start, without delaying its Late Finish
– ES = Early Start = Earliest time that a task can start
– LF = Late Finish = Latest time that a task can be completed, without affecting a Successor Activity
– EF = Early Finish = Earliest time that a task can finish

Earned Value Analysis Formulas

For information regarding Cost Management and other elements of Earned Value Analysis, check out the Earned Value Analysis
section of Cost Management.
Variance Equations (SV, CV, VAC)
– Pg 262 – 263, PMBOK 6th Edition

#1: Schedule Variance, SV

SV = EV – PV

#2: Cost Variance, CV

CV = EV – AC
#3: Variance At Completion, VAC
VAC = BAC – EAC
WHAT DOES EACH VARIABLE MEAN?
– EV = Earned Value =  The ACTUAL value for the work which has been “earned” or completed thus far.
– PV = Planned Value = The “planned” approved budget for completing the scheduled work
– AC = Actual Cost = How much was actually spent to perform the work?
– VAC = Variance At Completion = What is the difference between our Project’s Planned Cost at Completion and our New Cost
Estimate?
FORMULA INTERPRETATION
#1: Schedule Variance, SV
SV < 0 means… Behind Schedule (BAD)
SV = 0 means… On Schedule (NEUTRAL)
SV > 0 means… Ahead of Schedule (GOOD)

#2: Cost Variance, CV

CV < 0 means… Over Budget (BAD)
CV = 0 means… On Budget (NEUTRAL)
CV > 0 means… Within Budget (GOOD)

#3: Variance At Completion, VAC

VAC < 0 means… Over Budget (BAD)
VAC = 0 means… On Budget (NEUTRAL)
VAC > 0 means… Within Budget (GOOD)
Alvin’s Tip for Earned Value Analysis:
Easy way to remember the interpretation is to think…
Anything NEGATIVE IS BAD!

So, if SV is -10, for example, then it is BAD because it has a negative impact on the schedule and you are behind schedule.

Similarly, if CV is -5, for example, then it is BAD because it has a negative impact on your budget, and you’ve used up too much of
your funds and you are OVER BUDGET.
Alvin the PM

Index Equations (SPI, CPI, TCPI)

– Pg 263, PMBOK 6th Edition

#1: Schedule Performance Index, SPI

SPI = EV / PV

#2: Cost Performance Index, CPI

CPI = EV / AC
FORMULA INTERPRETATION
#1: Schedule Performance Index, SPI
SPI < 1 means… Behind Schedule (BAD)
SPI = 1 means… On Schedule (NEUTRAL)
SPI > 1 means… Ahead of Schedule (GOOD)

#2: Cost Performance Index, CPI

CPI < 1 means… Over Budget (BAD)
CPI = 1 means… On Budget (NEUTRAL)
CPI > 1 means… Within Budget (GOOD)
#3: To-Complete-Performance Index, TCPI
Formula #1: TCPI = (BAC – EV) / (BAC – AC)
When to use? Measuring the cost efficiency in order to complete the project per the plan

Formula #2: TCPI = (BAC – EV) / (EAC – AC)

When to use? Measuring the cost efficiency and taking into consideration the Estimate-At-Completion (EAC)

**Note: In the above two equations for TCPI, BAC is replaced with EAC in the denominator of the equation.
WHAT DOES EACH VARIABLE MEAN?
TCPI = To-Complete Performance Index = This defines how efficient we need to be in order to complete our project on budget,
and is the ratio between Remaining Work to Remaining Budget
FORMULA INTERPRETATION
#1: To-Complete Performance Index, TCPI
TCPI < 1 means… Within Budget (GOOD)
This is easier to complete because we have more money left in our budget, than the Planned Value work which still remains to
be completed.

TCPI = 1 means… On Budget (NEUTRAL)

The amount of remaining work is equal to the money left to finish the project.

TCPI > 1 means… Over Budget (BAD)

This is harder to complete because there is more work to be completed than the allowed Remaining Budget.

**Note: This is the only parameter where being less than 1 is a GOOD THING and corresponds to being under budget.

CPI and SPI have opposite interpretations when compared to TCPI. CPI < 1 and SPI < 1 correspond to being over budget or being
behind schedule, respectively.
Estimate At Completion Equations, EAC
Formula #1: EAC = AC + BAC – EV
When to use?  Use this formula if future expenses will occur at the original “planned” forecasted amount. In other words, can we
use our originally planned rate to complete our future work?

Formula #2: EAC = BAC / CPI

When to use?  If you believe that the rate that you are spending money can be assumed to be the same throughout the
remainder of the project’s lifecycle. In other words, if the CPI value will be the same for the remaining work of the project.

Formula #3:  EAC = AC + [ (BAC – EV) / (CPI*SPI) ]

When to use?  If Cost and Schedule Performance Indices  will BOTH impact the rest of your project’s work, then use this formula.

Formula #4: EAC = AC + Bottom-up ETC

When to use? Use this formula if the initial project plan and assumptions are no longer true & valid, and need to be re-planned.
Hence, this is the reason we require a newly estimated, bottom-up ETC.
WHAT DOES EACH VARIABLE MEAN?
– BAC = Budget At Completion =  This can be thought of as the Planned Overall Project Budget. How much “budget” are we
planning to spend to complete the entire project?

– ETC = Estimate To Complete =  How much will it cost to finish the last, remaining work of our project?

– EAC = Estimate At Completion = EAC is an Estimate for the Project’s Total Cost, given the current work which has already been
performed.
Estimate To Complete Equations, ETC
Formula #1: ETC = EAC – AC  
When to use?  If work is going according to plan
*Note that this can be derived from Formula #4 above by moving the EAC variable to one side (EAC = AC + Bottom-up ETC)

Formula #2: ETC = Re-estimate

When to use? If you are taking a bottom-up approach
Cost Management Formulas for Budget
#1: Cost Baseline (Approved project budget)
Cost Baseline = Control Accounts

Control Accounts = Contingency Reserve + Work Package Cost Estimates

Work Package Cost Estimates = Activity Contingency Reserve + Activity Cost Estimate