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									                      A Closer Look at
PM Knowledge Areas and Process Groups

                              Lesson 2
  Information Technology – Project Management (4th or
    5th Edition)
       Chapters 3 and 4

  Note : The text Information Technology – Project Management (4th or 5th Edition), by
   Kathy Schwalbe is not a mandatory textbook
         Reading references will be given in the slides for those students who purchase the text

Lesson 02 -Knowledge Areas
and Process Groups
Project Management Framework

Lesson 02 -Knowledge Areas
and Process Groups
Good Project Integration Management
  This is the absolute key to ensuring overall project success !!
  Project managers must coordinate all of the other knowledge
   areas throughout a project’s life cycle.
  Many new project managers have trouble looking at the big
   picture and want to focus on too many details.
  Project Integration Management is not the same thing as
   software integration.

Lesson 02 -Knowledge Areas
and Process Groups
Project Integration Management Processes
   Develop the project charter: Work with
    stakeholders to create the document that formally
    authorizes a project—the charter.
   Develop the preliminary project scope statement:
    Work with stakeholders, especially users of the
    project’s products, services, or results, to develop the
    high-level scope requirements and create a preliminary
    project scope statement.
   Develop the project management plan: Coordinate
    all planning efforts to create a consistent, coherent
    document—the project management plan.
 Lesson 02 -Knowledge Areas
 and Process Groups
Project Integration Management Processes                  (cont’d)

    Direct and manage project execution: Carry out the
     project management plan by performing the activities
     included in it.
    Monitor and control the project work: Oversee
     project work to meet the performance objectives of the
    Perform integrated change control: Coordinate
     changes that affect the project’s deliverables and
     organizational process assets.
    Close the project: Finalize all project activities to
     formally close the project.
  Lesson 02 -Knowledge Areas
  and Process Groups
Project Charters
  After deciding what project to work on, it is
   important to let the rest of the organization know.
  A project charter is a document that formally
   recognizes the existence of a project and provides
   direction on the project’s objectives and
  Key project stakeholders should sign a project
   charter to acknowledge agreement on the need
   and intent of the project; a signed charter is a key
    output of project integration management.

Lesson 02 -Knowledge Areas
and Process Groups
Preliminary Scope Statements
  A scope statement is a document used to develop
   and confirm a common understanding of the
   project scope.
  It is an important tool for preventing scope creep:
       The tendency for project scope to keep getting bigger.
  A good practice is to develop a preliminary or
   initial scope statement during project initiation
   and a more detailed scope statement as the project

Lesson 02 -Knowledge Areas
and Process Groups
Contents of a Preliminary Scope Statement
 1. Project Objectives             8. Initial list of defined risks
 2. Product or service             9. Summary of schedule
    requirements and                  milestones
    characteristics                10. Rough order of magnitude
                                        cost estimate
 3. Project boundaries             11. Configuration management
 4. Deliverables                       requirements
 5. Product acceptance criteria    12. Description of approval
 6. Project assumptions and            requirements
 7. Organizational structure for
    the project

Lesson 02 -Knowledge Areas
and Process Groups
Project Management Plans
  A project management plan is a document used to
   coordinate all project planning documents and help guide
   a project’s execution and control.
  Plans created in the other knowledge areas are subsidiary
   parts of the overall project management plan.

Lesson 02 -Knowledge Areas
and Process Groups
Attributes of Project Plans
  Just as projects are unique, so are project plans.
  Plans should be:
     Dynamic
     Flexible
     Updated as changes occur
  Plans should first and foremost guide project
    execution by helping the project manager lead the
    project team and assess project status.

Lesson 02 -Knowledge Areas
and Process Groups
Common Elements of a Project
Management Plan
  Introduction or overview of the project.
  Description of how the project is organized.
  Management and technical processes used on the
  Work to be done, schedule, and budget information.

Lesson 02 -Knowledge Areas
and Process Groups
Project Execution
  Project execution involves managing and performing
   the work described in the project management plan.
  The majority of time and money is usually spent on
  The application area of the project directly affects
   project execution because the products of the project
   are produced during project execution.

Lesson 02 -Knowledge Areas
and Process Groups
Important Skills for Project Execution
  General management skills such as leadership,
   communication, and political skills.
  Product, business, and application area skills and
  Use of specialized tools and techniques.

Lesson 02 -Knowledge Areas
and Process Groups
Monitoring and Controlling Project Work
   Changes are inevitable on most projects, so it’s
    important to develop and follow a process to monitor
    and control changes.
   Monitoring project work includes collecting,
    measuring, and disseminating performance
   Two important outputs of monitoring and controlling
    project work include recommended corrective and
    preventive actions.

 Lesson 02 -Knowledge Areas
 and Process Groups
Integrated Change Control
   Three main objectives are:
      Influence the factors that create changes to ensure that
       changes are beneficial.
      Determine that a change has occurred.
      Manage actual changes as they occur.
   A baseline is the approved project management plan
     plus approved changes.

 Lesson 02 -Knowledge Areas
 and Process Groups
Change Control on Information
Technology Projects
  Former View: The project team should strive to do
   exactly what was planned on time and within budget.
  Problem: Stakeholders rarely agreed beforehand on
   the project scope, and time and cost estimates were
  Modern View: Project management is a process of
   constant communication and negotiation.
  Solution: Changes are often beneficial, and the
   project team should plan for them.

Lesson 02 -Knowledge Areas
and Process Groups
Change Control System
  A formal, documented process that describes when
   and how official project documents and work may be
  Describes who is authorized to make changes and how
   to make them.

Lesson 02 -Knowledge Areas
and Process Groups
Configuration Management
  Ensures that the descriptions of the project’s products
   are correct and complete.
  Involves identifying and controlling the functional and
   physical design characteristics of products and their
   support documentation.
  Configuration management specialists identify and
   document configuration requirements, control
   changes, record and report changes, and audit the
   products to verify conformance to requirements.

Lesson 02 -Knowledge Areas
and Process Groups
Closing Projects
  To close a project, you must finalize all activities and
   transfer the completed or cancelled work to the appropriate
  Main outputs include:
       Administrative closure procedures.
       Contract closure procedures.
       Final products, services, or results.
       Organizational process asset updates.

Lesson 02 -Knowledge Areas
and Process Groups
What is Project Scope Management?
  Scope refers to all the work involved in creating the products
   of the project and the processes used to create them.
  A deliverable is a product produced as part of a project,
   such as hardware or software, planning documents, or
   meeting minutes.
  Project scope management includes the processes involved
   in defining and controlling what is or is not included in a

Lesson 02 -Knowledge Areas
and Process Groups
Project Scope Management Processes
  Scope planning : Deciding how the scope will be
   defined, verified, and controlled.
  Scope definition : Reviewing the project charter and
   preliminary scope statement and adding more
   information as requirements are developed and
   change requests are approved.
  Creating the WBS : Subdividing the major project
   deliverables into smaller, more manageable
  Scope verification : Formalizing acceptance of the
   project scope.
  Scope control : Controlling changes to project scope.
Lesson 02 -Knowledge Areas
and Process Groups
Scope Planning and the Scope Management Plan
   The scope management plan is a document that
    includes descriptions of how the team will prepare the
    project scope statement, create the WBS, verify
    completion of the project deliverables, and control
    requests for changes to the project scope.
   Key inputs include the project charter, preliminary
    scope statement, and project management plan.

 Lesson 02 -Knowledge Areas
 and Process Groups
The Scope Definition
   The Scope Definition comes about from reviewing the
     original Project Charter and Preliminary Scope

 Lesson 02 -Knowledge Areas
 and Process Groups
Sample Project Charter

 Lesson 02 -Knowledge Areas
 and Process Groups
Scope Definition and the Project Scope
  The preliminary scope statement, project charter,
   organizational process assets, and approved
   change requests provide a basis for creating the
   project scope statement.
  As time progresses, the scope of a project should
   become clearer and more specific.

Lesson 02 -Knowledge Areas
and Process Groups
Further Defining Project Scope

 Lesson 02 -Knowledge Areas
 and Process Groups
Creating the WBS
  A WBS is a deliverable-oriented grouping of the work
   involved in a project that defines the total scope of the
  A WBS is a foundation document that provides the
   basis for planning and managing project schedules,
   costs, resources, and changes.
  Decomposition is subdividing project deliverables
   into smaller pieces.

Lesson 02 -Knowledge Areas
and Process Groups
Example WBS in Tabular Format
 1.0 Concept
   1.1 Evaluate current systems
   1.2 Define requirements
        1.2.1 Define user requirements
        1.2.2 Define content requirements
        1.2.3 Define system requirements
        1.2.4 Define server owner requirements
   1.3 Define specific functionality
   1.4 Define risks and risk management approach
   1.5 Develop project plan
   1.6 Brief Web development team
 2.0 Web Site Design
 3.0 Web Site Development
 4.0 Roll Out
 5.0 Support
Lesson 02 -Knowledge Areas
and Process Groups
WBS and Gantt Chart in MS Project

Lesson 02 -Knowledge Areas
and Process Groups
Approaches to Developing WBSs
  Guidelines: Some organizations, such as the DOD,
   provide guidelines for preparing WBSs.
  Analogy approach: Review WBSs of similar projects
   and tailor to your project.
  Top-down approach: Start with the largest items of
   the project and break them down.
  Bottom-up approach: Start with the specific tasks
   and roll them up.
  Mind-mapping approach: Write tasks in a non-
   linear, branching format and then create the WBS
Lesson 02 -Knowledge Areas
and Process Groups
Scope Verification
  It is very difficult to create a good scope statement and
   WBS for a project.
  It is even more difficult to verify project scope and
   minimize scope changes.
  Many IT projects suffer from scope creep and poor
   scope verification
       FoxMeyer Drug filed for bankruptcy after scope creep on a robotic
       Engineers at Grumman called a system Naziware and refused to use
       21st Century Insurance Group wasted a lot of time and money on a
        project that could have used off-the-shelf components.
Lesson 02 -Knowledge Areas
and Process Groups
Scope Control
  Scope control involves controlling changes to the
   project scope.
  Goals of scope control are to:
       Influence the factors that cause scope changes.
       Ensure changes are processed according to procedures
        developed as part of integrated change control.
       Manage changes when they occur.
  Variance is the difference between planned and actual

Lesson 02 -Knowledge Areas
and Process Groups
Managing the Scope
  One of the best ways to manage the changing scope of a project is to try
   and ensure that the original scope is realistic !
  How do you do that ?
       Develop a good project selection process and insist that sponsors are from
          the user organization.
         Place users on the project team in important roles.
         Hold regular meetings with defined agendas, and have users sign off on key
          deliverables presented at meetings.
         Deliver something to users and sponsors on a regular basis.
         Don’t promise to deliver when you know you can’t.
         Co-locate users with developers.

Lesson 02 -Knowledge Areas
and Process Groups
Other Suggestions for Reducing Incomplete
and Changing Requirements
  Develop and follow a requirements management process.
  Use techniques such as prototyping, use case modeling, and JAD to get
     more user involvement.
    Put requirements in writing and keep them current.
    Create a requirements management database for documenting and
     controlling requirements.
    Conduct adequate testing throughout the project life cycle.
    Review changes from a systems perspective.
    Emphasize completion dates to help focus on what’s most important.
    Allocate resources specifically for handling change requests and
     enhancements (as NWA did with ResNet (Assignment #1)).

Lesson 02 -Knowledge Areas
and Process Groups
Project Time Management Processes
  Activity definition : Identifying the specific activities that the project
     team members and stakeholders must perform to produce the project
    Activity sequencing : Identifying and documenting the relationships
     between project activities.
    Activity resource estimating : Estimating how many resources a
     project team should use to perform project activities.
    Activity duration estimating : Estimating the number of work
     periods that are needed to complete individual activities.
    Schedule development : Analyzing activity sequences, activity
     resource estimates, and activity duration estimates to create the project
    Schedule control : Controlling and managing changes to the project
Lesson 02 -Knowledge Areas
and Process Groups
Activity Definition
  An activity or task is an element of work normally
   found on the WBS that has an expected duration, a
   cost, and resource requirements.
  Project schedules grow out of the basic documents
   that initiate a project.
       The project charter includes start and end dates and
        budget information.
       The scope statement and WBS help define what will be
  Activity definition involves developing a more detailed
    WBS and supporting explanations to understand all
    the work to be done, so you can develop realistic cost
    and duration estimates.
Lesson 02 -Knowledge Areas
and Process Groups
Activity Lists and Attributes
  An activity list is a tabulation of activities to be
    included on a project schedule. The list should
       The activity name
       An activity identifier or number
       A brief description of the activity
  Activity attributes provide more information about
    each activity, such as predecessors, successors, logical
    relationships, leads and lags, resource requirements,
    constraints, imposed dates, and assumptions related to
    the activity.

Lesson 02 -Knowledge Areas
and Process Groups
  A milestone is a significant event that normally has
   no duration.
  It often takes several activities and a lot of work to
   complete a milestone.
  Milestones are useful tools for setting schedule goals
   and monitoring progress.
  Examples include completion and customer sign-off
   on key documents and completion of specific

Lesson 02 -Knowledge Areas
and Process Groups
Activity Sequencing
  Involves reviewing activities and determining
  A dependency or relationship relates to the
   sequencing of project activities or tasks.
  You must determine dependencies in order to use
   critical path analysis.

Lesson 02 -Knowledge Areas
and Process Groups
Network Diagrams
  Network diagrams are the preferred technique for
   showing activity sequencing.
  A network diagram is a schematic display of the
   logical relationships among, or sequencing of, project
  Two main formats are the arrow and precedence
   diagramming methods.

Lesson 02 -Knowledge Areas
and Process Groups
Arrow Diagramming Method (ADM)
  Also called activity-on-arrow (AOA) network diagram.
  Activities are represented by arrows.
  Nodes or circles are the starting and ending points of
  Can only show finish-to-start dependencies.

Lesson 02 -Knowledge Areas
and Process Groups
Sample AOA Network Diagram for
Project X

Lesson 02 -Knowledge Areas
and Process Groups
Precedence Diagramming Method (PDM)
  Activities are represented by boxes.
  Arrows show relationships between activities.
  More popular than ADM method and used by project
   management software.
  Better at showing different types of dependencies.

Lesson 02 -Knowledge Areas
and Process Groups
Sample PDM Network Diagram for
Project X

Lesson 02 -Knowledge Areas
and Process Groups
Gantt Charts
  Gantt charts provide a standard format for displaying
   project schedule information by listing project
   activities and their corresponding start and finish
   dates in a calendar format.
  Symbols include:
       Black diamonds: Milestones
       Thick black bars: Summary tasks
       Lighter horizontal bars: Durations of tasks
       Arrows: Dependencies between tasks

Lesson 02 -Knowledge Areas
and Process Groups
Gantt Chart for Project X

Lesson 02 -Knowledge Areas
and Process Groups
Activity Resource Estimating
  Before estimating activity durations, you must have a
   good idea of the quantity and type of resources that
   will be assigned to each activity.
  Consider important issues in estimating resources:
       How difficult will it be to complete specific activities on
        this project?
       What is the organization’s history in doing similar
       Are the required resources available?

Lesson 02 -Knowledge Areas
and Process Groups
Activity Duration Estimating
  Duration includes the actual amount of time worked
   on an activity plus the elapsed time.
  Effort is the number of workdays or work hours
   required to complete a task.
  Effort does not normally equal duration.
  People doing the work should help create estimates,
   and an expert should review them.

Lesson 02 -Knowledge Areas
and Process Groups
Three-Point Estimates
  Instead of providing activity estimates as a discrete
    number, such as four weeks, it’s often helpful to create
    a three-point estimate:
       An estimate that includes an optimistic, most likely, and
        pessimistic estimate
       such as three weeks for the optimistic, four weeks for the
        most likely, and five weeks for the pessimistic estimate.
  Three-point estimates are needed for PERT estimates
    and Monte Carlo simulations.

Lesson 02 -Knowledge Areas
and Process Groups
Schedule Development
  Uses results of the other time management processes
   to determine the start and end dates of the project.
  Ultimate goal is to create a realistic project schedule
   that provides a basis for monitoring project progress
   for the time dimension of the project.
  Important tools and techniques include
       Gantt charts
       critical path analysis
       critical chain scheduling
       PERT analysis.

Lesson 02 -Knowledge Areas
and Process Groups
SMART Criteria
  While developing a Project Schedule, keep in mind
    that milestones should be:
       Specific
       Measurable
       Assignable
       Realistic
       Time-framed

Lesson 02 -Knowledge Areas
and Process Groups
Critical Path Method (CPM)
  CPM is a network diagramming technique used to
   predict total project duration.
  A critical path for a project is the series of activities
   that determines the earliest time by which the project
   can be completed.
  The critical path is the longest path through the
   network diagram and has the least amount of slack or
  Slack or float is the amount of time an activity can be
   delayed without delaying a succeeding activity or the
   project finish date.
Lesson 02 -Knowledge Areas
and Process Groups
Calculating the Critical Path
  Develop a good network diagram.
  Add the duration estimates for all activities on each
   path through the network diagram.
  The longest path is the critical path.
  If one or more of the activities on the critical path
   takes longer than planned, the whole project schedule
   will slip unless the project manager takes corrective

Lesson 02 -Knowledge Areas
and Process Groups
Determining the Critical Path for
Project X

Lesson 02 -Knowledge Areas
and Process Groups
Using the Critical Path to Shorten a
Project Schedule
  Three main techniques for shortening schedules:
     Shortening the duration of critical activities or tasks by
      adding more resources or changing their scope.
     Crashing activities by obtaining the greatest amount of
      schedule compression for the least incremental cost.
     Fast tracking activities by doing them in parallel or
      overlapping them.

Lesson 02 -Knowledge Areas
and Process Groups
Schedule Control
  Perform reality checks on schedules.
  Allow for contingencies.
  Don’t plan for everyone to work at 100 percent capacity
   all the time.
  Hold progress meetings with stakeholders and be clear
   and honest in communicating schedule issues.

Lesson 02 -Knowledge Areas
and Process Groups
Schedule Control              (cont’d)
  Goals are to know the status of the schedule, influence
   factors that cause schedule changes, determine that
   the schedule has changed, and manage changes when
   they occur.
  Tools and techniques include:
       Progress reports.
       A schedule change control system.
       Project management software, including schedule
        comparison charts, such as the tracking Gantt chart.
       Variance analysis, such as analyzing float or slack.
       Performance management, such as earned value
Lesson 02 -Knowledge Areas
and Process Groups
What is Cost and Project Cost
  Cost is a resource sacrificed or foregone to achieve a specific objective,
    or something given up in exchange.
       Costs are usually measured in monetary units, such as dollars.
  Project cost management includes the processes required to ensure
    that the project is completed within an approved budget.

Lesson 02 -Knowledge Areas
and Process Groups
Project Cost Management Processes
  Cost estimating : Developing an approximation or estimate of the
   costs of the resources needed to complete a project.
  Cost budgeting : Allocating the overall cost estimate to individual
   work items to establish a baseline for measuring performance.
  Cost control : Controlling changes to the project budget.

Lesson 02 -Knowledge Areas
and Process Groups
Basic Principles of Cost Management
  Most members of an executive board have a better
    understanding and are more interested in financial terms
    than IT terms, so IT project managers must speak their
       Profits are revenues minus expenses.
       Life cycle costing considers the total cost of ownership, or
        development plus support costs, for a project.
       Cash flow analysis determines the estimated annual costs
        and benefits for a project and the resulting annual cash flow.

Lesson 02 -Knowledge Areas
and Process Groups
Cost of Software Defects*

  It is important to spend money up-front on IT projects to avoid
    spending a lot more later.

 *Collard, Ross, Software Testing and Quality Assurance, working paper (1997).

Lesson 02 -Knowledge Areas
and Process Groups
Basic Principles of Cost Management
  Tangible costs or benefits are those costs or benefits that
     an organization can easily measure in dollars.
    Intangible costs or benefits are costs or benefits that are
     difficult to measure in monetary terms.
    Direct costs are costs that can be directly related to
     producing the products and services of the project.
    Indirect costs are costs that are not directly related to the
     products or services of the project, but are indirectly
     related to performing the project.
    Sunk cost is money that has been spent in the past; when
     deciding what projects to invest in or continue, you should
     not include sunk costs.
Lesson 02 -Knowledge Areas
and Process Groups
Basic Principles of Cost Management
  Learning curve theory states that when many items are
   produced repetitively, the unit cost of those items
   decreases in a regular pattern as more units are produced.
  Reserves are dollars included in a cost estimate to mitigate
   cost risk by allowing for future situations that are difficult
   to predict.
       Contingency reserves allow for future situations that may
        be partially planned for (sometimes called known
        unknowns) and are included in the project cost baseline.
       Management reserves allow for future situations that are
        unpredictable (sometimes called unknown unknowns).

Lesson 02 -Knowledge Areas
and Process Groups
 Cost Estimating
  Project managers must take cost estimates seriously if they
   want to complete projects within budget constraints.
  It’s important to know the types of cost estimates, how to
   prepare cost estimates, and typical problems associated
   with IT cost estimates.

Lesson 02 -Knowledge Areas
and Process Groups
 Types of Cost Estimates

Lesson 02 -Knowledge Areas
and Process Groups
Cost Management Plan
  A cost management plan is a document that describes
   how the organization will manage cost variances on the
  A large percentage of total project costs are often labor
   costs, so project managers must develop and track
   estimates for labor.

Lesson 02 -Knowledge Areas
and Process Groups
Cost Estimation Tools and Techniques
  Basic tools and techniques for cost estimates:
     Analogous or top-down estimates :Use the actual cost of a
      previous, similar project as the basis for estimating the cost of
      the current project.
     Bottom-up estimates : Involve estimating individual work
      items or activities and summing them to get a project total.
     Parametric modeling :Uses project characteristics
      (parameters) in a mathematical model to estimate project
     Computerized tools :Tools, such as spreadsheets and
      project management software, that can make working with
      different cost estimates and cost estimation tools easier.

Lesson 02 -Knowledge Areas
and Process Groups
Typical Problems with IT Cost Estimates
  Developing an estimate for a large software project is a
   complex task that requires a significant amount of
  People who develop estimates often do not have much
  Human beings are biased toward underestimation.
  Management might ask for an estimate, but really
   desire a bid to win a major contract or get internal

Lesson 02 -Knowledge Areas
and Process Groups
More on Project Phases
  Cost budgeting involves allocating the project cost
   estimate to individual work items over time.
  The WBS is a required input for the cost budgeting
   process because it defines the work items.
  Important goal is to produce a cost baseline:
       A time-phased budget that project managers use to
         measure and monitor cost performance.

Lesson 02 -Knowledge Areas
and Process Groups
  Cost Control
  Project cost control includes:
     Monitoring cost performance.
     Ensuring that only appropriate project changes are
      included in a revised cost baseline.
     Informing project stakeholders of authorized changes to
      the project that will affect costs.
  Many organizations around the globe have problems
    with cost control.

Lesson 02 -Knowledge Areas
and Process Groups
 Earned Value Management (EVM)
  EVM is a project performance measurement technique
   that integrates scope, time, and cost data.
  Given a baseline (original plan plus approved
   changes), you can determine how well the project is
   meeting its goals.
  You must enter actual information periodically to use
  More and more organizations around the world are
   using EVM to help control project costs.

Lesson 02 -Knowledge Areas
and Process Groups
 Earned Value Management Terms
  The planned value (PV), formerly called the budgeted
    cost of work scheduled (BCWS), also called the budget, is
    that portion of the approved total cost estimate planned to
    be spent on an activity during a given period.
  Actual cost (AC), formerly called actual cost of work
    performed (ACWP), is the total of direct and indirect costs
    incurred in accomplishing work on an activity during a
    given period.
  The earned value (EV), formerly called the budgeted cost
    of work performed (BCWP), is an estimate of the value of
    the physical work actually completed.
  EV is based on the original planned costs for the project or
    activity and the rate at which the team is completing work
    on the project or activity to date.
Lesson 02 -Knowledge Areas
and Process Groups
The Importance of Project Quality
  Many people joke about the poor quality of IT
   products (see Cars and Computers joke).
  People seem to accept systems being down
   occasionally or needing to reboot their PCs.
  But quality is very important in many IT projects.

Lesson 02 -Knowledge Areas
and Process Groups
 What Is Quality?
  The International Organization for Standardization
   (ISO) defines quality as “the degree to which a set of
   inherent characteristics fulfils requirements”
  Other experts define quality based on:
       Conformance to requirements: The project’s
        processes and products meet written specifications.
       Fitness for use: A product can be used as it was

Lesson 02 -Knowledge Areas
and Process Groups
What Is Project Quality Management?
  Project quality management ensures that the project
   will satisfy the needs for which it was undertaken.
  Processes include:
       Quality planning: Identifying which quality standards
        are relevant to the project and how to satisfy them.
       Quality assurance: Periodically evaluating overall
        project performance to ensure the project will satisfy the
        relevant quality standards.
       Quality control: Monitoring specific project results to
        ensure that they comply with the relevant quality

Lesson 02 -Knowledge Areas
and Process Groups
The Importance of Human Resource
  People determine the success and failure of
   organizations and projects.
  Recent statistics about IT workforce:
       The labor market changed a lot early in the new millennium, with
          shortages and then an abundance of IT workers.
         A 2004 ITAA report showed a slight recovery in 2004.
         The total number of IT workers in the U.S. was more than 10.5 million in
          early 2004, up from 10.3 million in 2003 and 9.9 million in 2002.
         Eighty-nine percent of new jobs came from non-IT companies, such as
          banking, finance, manufacturing, food service, and transportation.
         Hiring managers say interpersonal skills are the most important soft skill
          for IT workers.*

 *Information Technology Association of America (ITAA), “Recovery Slight for IT Job Market
    in 2004,” (September 8, 2004)
Lesson 02 -Knowledge Areas
and Process Groups
What is Project Human Resource
  Making the most effective use of the people involved
   with a project.
  Processes include:
       Human resource planning : Identifying and documenting project
        roles, responsibilities, and reporting relationships.
       Acquiring the project team : Getting the needed personnel
        assigned to and working on the project.
       Developing the project team : Building individual and group
        skills to enhance project performance.
       Managing the project team : Tracking team member
        performance, motivating team members, providing timely
        feedback, resolving issues and conflicts, and coordinating changes
        to help enhance project performance.

Lesson 02 -Knowledge Areas
and Process Groups
Keys to Managing People
  Psychologists and management theorists have devoted
   much research and thought to the field of managing
   people at work.
  Important areas related to project management
       Motivation theories
       Influence and power
       Effectiveness

Lesson 02 -Knowledge Areas
and Process Groups
Importance of Good Communications
  The greatest threat to many projects is a failure to
  Our culture does not portray IT professionals as being
   good communicators.
  Research shows that IT professionals must be able to
   communicate effectively to succeed in their positions.
  Strong verbal skills are a key factor in career
   advancement for IT professionals.

Lesson 02 -Knowledge Areas
and Process Groups
Project Communications Management Processes
   Communications planning : Determining the
    information and communications needs of the
   Information distribution : Making needed
    information available to project stakeholders in a
    timely manner.
   Performance reporting : Collecting and
    disseminating performance information, including
    status reports, progress measurement, and forecasting.
   Managing stakeholders : Managing
    communications to satisfy the needs and expectations
    of project stakeholders and to resolve issues.
 Lesson 02 -Knowledge Areas
 and Process Groups
The Importance of Project Risk Management
   Project risk management is the art and science of
    identifying, analyzing, and responding to risk
    throughout the life of a project and in the best
    interests of meeting project objectives.
   Risk management is often overlooked in projects, but
    it can help improve project success by helping select
    good projects, determining project scope, and
    developing realistic estimates.

 Lesson 02 -Knowledge Areas
 and Process Groups
Research Shows Need to Improve Project Risk
   Study by Ibbs and Kwak shows risk has the lowest
    maturity rating of all knowledge areas.
   KLCI study shows the benefits of following good
    software risk management practices.
   KPMG study found that 55 percent of runaway
    projects (projects that have significant cost or
    schedule overruns) did no risk management at all.*

  *Cole, Andy, “Runaway Projects - Cause and Effects”, Software World, Vol. 26, no. 3, pp. 3–5

 Lesson 02 -Knowledge Areas
 and Process Groups
Project Risk Management Processes
  Risk management planning : Deciding how to
   approach and plan the risk management activities for
   the project.
  Risk identification : Determining which risks are
   likely to affect a project and documenting the
   characteristics of each.
  Qualitative risk analysis : Prioritizing risks based on
   their probability and impact of occurrence.

Lesson 02 -Knowledge Areas
and Process Groups
Project Risk Management Processes                  (cont’d)

  Quantitative risk analysis : Numerically estimating
   the effects of risks on project objectives.
  Risk response planning : Taking steps to enhance
   opportunities and reduce threats to meeting project
  Risk monitoring and control : Monitoring
   identified and residual risks, identifying new risks,
   carrying out risk response plans, and evaluating the
   effectiveness of risk strategies throughout the life of
   the project.

Lesson 02 -Knowledge Areas
and Process Groups
Importance of Project Procurement Management
   Procurement means acquiring goods and/or services
     from an outside source.
        Other terms include purchasing and outsourcing.
   Experts predict that global spending on computer
    software and services will continue to grow.
   India is the leading country for U.S. offshore

 Lesson 02 -Knowledge Areas
 and Process Groups
 Debates on Outsourcing
  Some companies, such as Wal-Mart, prefer to do no
   outsourcing at all, while others do a lot of outsourcing.
  Most organizations do some form of outsourcing to
   meet their IT needs and spend most money within
   their own country.
  The U.S. temporary workforce continues to grow as
   people work for temporary job agencies so they can
   more easily move from company to company.

Lesson 02 -Knowledge Areas
and Process Groups
 Why Outsource?
  Some reasons that companies decide to outsource are:
     To reduce both fixed and recurrent costs.
     To allow the client organization to focus on its core
     To access skills and technologies.
     To provide flexibility.
     To increase accountability.

Lesson 02 -Knowledge Areas
and Process Groups
  A contract is a mutually binding agreement that
   obligates the seller to provide the specified products or
   services and obligates the buyer to pay for them.
  Contracts can clarify responsibilities and sharpen
   focus on key deliverables of a project.
  Because contracts are legally binding, there is more
   accountability for delivering the work as stated in the
  A recent trend in outsourcing is the increasing size of

Lesson 02 -Knowledge Areas
and Process Groups
 Project Procurement Management Processes
  Project procurement management : Acquiring
   goods and services for a project from outside the
   performing organization.
  Processes include:
       Planning purchases and acquisitions : Determining
        what to procure, when, and how.
       Planning contracting : Describing requirements for
        the products or services desired from the procurement
        and identifying potential sources or sellers (contractors,
        suppliers, or providers who provide goods and services
        to other organizations).

Lesson 02 -Knowledge Areas
and Process Groups
Project Procurement Management Processes (cont’d)
  Requesting seller responses : Obtaining
   information, quotes, bids, offers, or proposals from
   sellers, as appropriate.
  Selecting sellers : Choosing from among potential
   suppliers through a process of evaluating potential
   sellers and negotiating the contract.
  Administering the contract : Managing the
   relationship with the selected seller.
  Closing the contract : Completing and settling each
   contract, including resolving any open items.

Lesson 02 -Knowledge Areas
and Process Groups

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