Project Management Knowledge Corner

Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
(from PMBOK® Guide, Fifth Edition)

For you that are new to Project Management, how should you approach studying this Knowledge Area? It’s recommended to have quick review of what it is and how it interacts with other knowledge areas, and then an in-depth study of all its components and interactions.

This knowledge are is composed of the following processes:
•Plan Cost Management—The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
•Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project activities.
•Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
•Control Costs—The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
(from PMBOK® Guide, Fifth Edition)

Some important questions you need to ask yourself when studying this area.
•What’s the difference between Cost and Budget?
•What’s the difference between Estimate Cost and Determine Budget?
•What’s the difference between Cost Management Plan and Project Management Plan?
•What’s the difference between Parametric Estimating and Analogous Estimating?
•What’s the cost baseline and what other baselines there are?
•What relation does the Activity Cost Estimates in Cost Management with the Estimate Activity Duration in Schedule Management?

These processes interact with each other and with processes in other Knowledge Areas. On some projects, especially those of smaller scope, cost estimating and cost budgeting are tightly linked and can be viewed as a single process that can be performed by a single person over a relatively short period of time. The ability to influence cost is greatest at the early stages of the project, making early scope definition critical. Project Cost Management should consider the stakeholder requirements for managing costs. Different stakeholders will measure project costs in different ways and at different times. For example, the cost of an acquired item may be measured when the acquisition decision is made or committed, the order is placed, the item is delivered, or the actual cost is incurred or recorded for project accounting purposes. Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities. Project Cost Management should also consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the product, service, or result of the project. For example, limiting the number of design reviews can reduce the cost of the project but could increase the resulting product's operating costs. In many organizations, predicting and analyzing the prospective financial performance of the project's product is performed outside of the project. In others, such as a capital facilities project, Project Cost Management can include this work. When such predictions and analyses are included, Project Cost Management may address additional processes and numerous general financial management techniques such as return on investment, discounted cash flow, and investment payback analysis. The cost management planning effort occurs early in project planning and sets the framework for each of the cost management processes so that performance of the processes will be efficient and coordinated.
(from PMBOK® Guide, Fifth Edition)

Please post your answers/inquiries about this subject….

Project Time Management includes Project Time Management includes the processes required to manage the timely completion of the project..
(from PMBOK® Guide, Fifth Edition)

For you that are new to Project Management, how should you approach studying this Knowledge Area?
It’s recommended to have quick review of what it is and how it interacts with other knowledge areas, and then an in-depth study of all its components and interactions.

Some important questions you need to ask yourself when studying this area.

Fast Tracking vs Crashing which one impacts the quality most
http://www.projectmanagement.com/discussion-topic/35129/Fast-Tracking-vs-Crashing-which-one-impacts-the-quality-most-

Progressive Elaboration vs Rolling Wave Planning
http://www.projectmanagement.com/discussion-topic/33820/Progressive-Elaboration-vs-Rolling-Wave-Planning

How Much time Should You be Spending in Progress Control?
http://www.projectmanagement.com/discussion-topic/36207/How-Much-time-Should-You-be-Spending-in-Progress-Control-

What's the difference between Level of Effort (LOE) Discrete Effort and Apportioned Effort (AE)?
http://www.projectmanagement.com/discussion-topic/36184/Whats-the-difference-between-Level-of-Effort--LOE--Discrete-Effort-and-Apportioned-Effort--AE

What's the difference between Time Estimate and Project Schedule?
http://www.projectmanagement.com/discussion-topic/36007/Whats-the-difference-between-Time-Estimate-and-Project-Schedule-

What's an Exception Report and do you use it in your projects?
http://www.projectmanagement.com/discussion-topic/36378/Whats-an-Exception-Report-and-do-you-use-it-in-your-projects-

Program Schedule vs Project Schedule
http://www.projectmanagement.com/discussion-topic/36879/Program-Schedule-vs-Project-Schedule

This knowledge are is composed of the following processes:

• Plan Schedule Management—The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

• Define Activities—The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

• Sequence Activities—The process of identifying and documenting relationships among the project activities.

• Estimate Activity Resources—The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

• Estimate Activity Durations—The process of estimating the number of work periods needed to complete individual activities with estimated resources.

• Develop Schedule—The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model.

• Control Schedule—The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan.

  Distinguishing the project schedule presentation (schedule) from the schedule data (Section 6.6.3.3) and calculations that produce the project schedule (Section 6.6.3.2) is practiced by referring to the scheduling tool populated with project data as the schedule model. A schedule model is a representation of the plan for executing the project's activities including durations, dependencies, and other planning information, used to produce project schedules along with other scheduling artifacts. For specific information regarding the schedule model, refer to the Practice Standard for Scheduling. [8]

• On some projects, especially those of smaller scope, defining activities, sequencing activities, estimating activity resources, estimating activity durations, and developing the schedule model are so tightly linked that they are viewed as a single process that can be performed by a person over a relatively short period of time. These processes are presented here as distinct elements because the tools and techniques for each process are different.

• The Project Time Management processes and their associated tools and techniques are documented in the schedule management plan. The schedule management plan is a subsidiary plan of, and integrated with, the project management plan through the Develop Project Management Plan process (Section 4.2), The schedule management plan identifies a scheduling method and scheduling tool (Figure 6-2), and sets the format and establishes criteria for developing and controlling the project schedule. The selected scheduling method defines the framework and algorithms used in the scheduling tool to create the schedule model. Some of the better known scheduling methods include critical path method (CPM) and critical chain method (CCM).

• Project schedule development uses the outputs from the processes to define activities, sequence activities, estimate activity resources, and estimate activity durations in combination with the scheduling tool to produce the schedule model. The finalized and approved schedule is the baseline that will be used in the Control Schedule process (Section 6.7). As the project activities are being performed, the majority of effort in the Project Time Management Knowledge Area will occur in the Control Schedule process to ensure completion of project work in a timely manner. Figure 6-2 provides a scheduling overview that shows how the scheduling method, scheduling tool, and outputs from the Project Time Management processes interact to create a project schedule.

(from PMBOK® Guide, Fifth Edition)

Please post your answers/inquiries about this subject….

Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling what is and is not included in the project.

(from PMBOK® Guide, Fifth Edition)

For you that are new to Project Management, how should you approach studying this Knowledge Area? It’s recommended to have quick review of what it is and how it interacts with other knowledge areas, and then an in-depth study of all its components and interactions.

Why is Scope Management the second Knowledge, Why is it so important?

Do you manage Scope in your real life projects?

If your answer is yes, then be honest to yourself, do you have a have proof of it?

Where is your Scope Baseline stored? If it is your baseline, it is already approved and communicated.

How often do you revise your scope baseline? And when you doing so, do you follow the Change Control Process?

Do you have a Change Control Process for your Scope?

What amazes you most about this Knowledge Area? Share your thoughts around this…

What's the most difficult task you face as a PM when dealing with this KA.

 This knowledge are is composed of the following processes:

Plan Scope Management—The process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled.

Collect Requirements—The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives.

Define Scope—The process of developing a detailed description of the project and product.

Create WBS—The process of subdividing project deliverables and project work into smaller, more manageable components.

Validate Scope—The process of formalizing acceptance of the completed project deliverables.

Control Scope—The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

(from PMBOK® Guide, Fifth Edition)

What’s exactly the Project Scope?

What’s exactly the Product Scope?

What’s the difference between Project Scope and Product Scope?

Which of these processes amaze you most?

What's the most difficult task you face as a PM when dealing with these process groups.

Important concepts related to scope:

Product scope. The features and functions that characterize a product, service, or result; and/or

Project scope. The work performed to deliver a product, service, or result with the specified features and functions. The term project scope is sometimes viewed as including product scope.

 (from PMBOK® Guide, Fifth Edition)

The processes used to manage project scope, as well as the supporting tools and techniques, can vary by project. The scope baseline for the project is the approved version of the project scope statement, work breakdown structure (WBS), and its associated WBS dictionary. A baseline can be changed only through formal change control procedures and is used as a basis for comparison while performing Validate Scope and Control Scope processes as well as other controlling processes.

(from PMBOK® Guide, Fifth Edition)

Please post your answers/inquiries about this subject….

Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.  In the project management context, integration includes characteristics of unification, consolidation, communication, and integrative actions that are crucial to controlled project execution through completion, successfully managing stakeholder expectations, and meeting requirements. Project Integration Management includes making choices about resource allocation, making trade-offs among competing objectives and alternatives, and managing the interdependencies among the project management Knowledge Areas. 

(from PMBOK® Guide, Fifth Edition)

For you that are new to Project Management, how should you approach studying this Knowledge Area? It’s recommended not to take it likely, and suggested to be the first and the last thing to study. Initially a quick review of what it is and how it interacts with other knowledge areas, and at the end of the study, an in-depth study of all components and interactions.

Why is Integration Management is the first
Knowledge Area but should be the last thing to study in-depth?

Is Integration Management the first Knowledge Area in your real life projects?

If your answer is yes, then be honest to yourself, do you really start with a signed Project Charter? Do you have proof of it? Do you really continue with a stakeholder analysis? Where is your stakeholder onion diagram?

What amazes
you most about this Knowledge Area? Share your thoughts around this…

What's the most difficult task you face as a PM when dealing with this KA.

This knowledge are is composed of the following processes:

Develop Project Charter—The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Develop Project Management Plan—The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. The project's integrated baselines and subsidiary plans may be included within the project management plan.

Direct and Manage Project Work—The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives.

Monitor and Control Project Work—The process of tracking, reviewing, and reporting project progress against the performance objectives defined in the project management plan.

Perform Integrated Change Control—The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition.

Close Project or Phase—The process of finalizing all activities across all of the Project Management Process Groups to formally complete the phase or project.

(from PMBOK® Guide, Fifth Edition)

What exactly a Project Phase and Who determines the different phases? the PM? The Sponsor? The Project Team?

Do you use all these processes (project charter, …,  close project) in in your real life projects?

What part of these processes amaze you most?

What's the most difficult task you face as a PM when dealing with these process groups.

The need for Project Integration Management is necessary in situations where individual processes interact. For example, a cost estimate needed for a contingency plan involves integrating the processes in the Project Cost, Time, and Risk Management Knowledge Areas. When additional risks associated with various staffing alternatives are identified, then one or more of those processes may be revisited. The project deliverables may also need integrating with ongoing operations of the performing organization, the requesting organization, and with the long-term strategic planning that takes future problems and opportunities into consideration. Project Integration Management also includes the activities needed to manage project documents to ensure consistency with the project management plan and product, service, or capability deliverables.

(from PMBOK® Guide, Fifth Edition)

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