Introduction to the Project Management Body of Knowledge (PMBOK) Ch1 Notes

OVERVIEW AND PURPOSE OF THE PMBOK® GUIDE

• Project management is a practice that has existed for hundreds of years, facilitating outcomes across human history.

• Historical and modern examples of project outcomes include:

  • Pyramids of Giza

  • Olympic games

  • Great Wall of China

  • Taj Mahal

  • Publication of a children’s book

  • Panama Canal

  • Development of commercial jet airplanes

  • Polio vaccine

  • Human beings landing on the moon

  • Commercial software applications

  • Portable devices to use the global positioning system (GPS)

  • Placement of the International Space Station into Earth’s orbit

• These outcomes resulted from leaders applying project management practices, principles, processes, tools, and techniques to satisfy customers and stakeholders.

• The Project Management Body of Knowledge (PMBOK) describes the knowledge within the profession. It includes proven traditional practices and emerging innovative practices.

• The Project Management Institute (PMI) published "A Guide to the Project Management Body of Knowledge (PMBOK® Guide)" because no single book could contain the entire PMBOK.

• The guide identifies a subset of the PMBOK that is "generally recognized" as "good practice."

  • Generally recognized: Knowledge and practices applicable to most projects most of the time, with consensus on their value and usefulness.

  • Good practice: General agreement that applying these skills and techniques can enhance the chance of success in delivering business value.

• A methodology is a system of practices, techniques, procedures, and rules. The PMBOK® Guide is not a methodology but a foundation upon which organizations can build them.

THE STANDARD FOR PROJECT MANAGEMENT

• The guide is based on "The Standard for Project Management," which is an American National Standards Institute (ANSI) standard developed through consensus, openness, and balance.

• The standard identifies processes considered good practices but does not require specific processes to be performed; instead, it is descriptive rather than prescriptive.

• Project management must be tailored to fit the needs of the project, including the selection of processes, inputs, tools, techniques, outputs, and life cycle phases.

• The scope of the guide is restricted to the discipline of project management, addressing portfolios and programs only as they interact with projects.

COMMON VOCABULARY AND CODE OF ETHICS

• A common vocabulary is essential for the profession. The PMI Lexicon of Project Management Terms provides the foundational vocabulary.

• PMI publishes a Code of Ethics and Professional Conduct to instill confidence and help individuals make wise decisions in difficult situations.

• The four foundational values of the global project management community are:

  • Responsibility

  • Respect

  • Fairness

  • Honesty

• The Code includes two types of standards:

  • Aspirational standards: Conduct that practitioners strive to uphold; expected for professionals (not optional).

  • Mandatory standards: Firm requirements that limit or prohibit certain behaviors. Violations lead to disciplinary procedures before the PMI Ethics Review Committee.

FOUNDATIONAL ELEMENTS: PROJECTS

• A project is defined as a temporary endeavor undertaken to create a unique product, service, or result.

• Projects fulfill objectives by producing deliverables.

  • Objective: An outcome toward which work is directed, a strategic position to be attained, or a result to be obtained.

  • Deliverable: Any unique and verifiable product, result, or capability to perform a service required for project completion. Deliverables can be tangible or intangible.

• Types of deliverables:

  • A unique product (new item or correction/enhancement of an existing item).

  • A unique service or capability (e.g., a supporting business function).

  • A unique result (e.g., knowledge or research outcomes).

  • A unique combination of products, services, and results (e.g., software, documentation, and help desk service).

• Repetitive elements: Some projects have repetitive elements (e.g., building multiple office buildings with similar materials), but the unique location, design, and people involved maintain the project's unique nature.

• Temporary nature: Projects have a definite beginning and end. This does not mean they are short-term. The end is reached when:

  • Objectives are achieved.

  • Objectives cannot be met.

  • Funding is exhausted or unavailable.

  • The need for the project no longer exists (strategic shifts, customer withdrawal, etc.).

  • Resources are no longer available.

  • The project is terminated for legal cause or convenience.

• Deliverables may last for centuries (e.g., national monuments) long after the project ends.

PROJECTS AS DRIVERS OF CHANGE AND BUSINESS VALUE

• Projects drive organizational change by moving an organization from a "current state" to a "future state."

• A successful project achieves a specific objective, which might involve a transition state along a continuum.

• Business value is defined as the net quantifiable benefit derived from a business endeavor.

  • Tangible value examples: Monetary assets, stockholder equity, utility, fixtures, tools, and market share.

  • Intangible value examples: Goodwill, brand recognition, public benefit, trademarks, strategic alignment, and reputation.

PROJECT INITIATION CONTEXT

• Organizational leaders initiate projects in response to four categories of factors:

  • Meet regulatory, legal, or social requirements.

  • Satisfy stakeholder requests or needs.

  • Implement or change business or technological strategies.

  • Create, improve, or fix products, processes, or services.

• Specific examples of initiation factors (Table 1-1):

  • New technology: Developing a smaller laptop based on memory advances.

  • Competitive forces: Lowering production costs due to competitor pricing.

  • Material issues: Support members on a municipal bridge developing cracks.

  • Political changes: A newly elected official changes project funding.

  • Market demand: Car company building fuel-efficient cars during a gasoline shortage.

  • Economic changes: Priorities shifting due to an economic downturn.

  • Customer request: Utility building a substation for a new industrial park.

  • Legal requirement: Chemical manufacturer establishing guidelines for toxic material handling.

  • Social need: Providing potable water systems to communities with high infectious disease rates.

THE IMPORTANCE OF PROJECT MANAGEMENT

• Project management is the application of knowledge, skills, tools, and techniques to project activities to meet requirements.

• Effective project management enables organizations to:

  • Meet business objectives and satisfy stakeholder expectations.

  • Be more predictable and increase chances of success.

  • Resolve issues and respond to risks timely.

  • Optimize resource use and manage constraints (scope, quality, schedule, cost).

• Poor project management results in:

  • Missed deadlines and cost overruns.

  • Poor quality and rework.

  • Uncontrolled expansion (scope creep).

  • Loss of reputation and unsatisfied stakeholders.

• Project management is a strategic competency that allows companies to tie project results to business goals and remain competitive.

RELATIONSHIPS BETWEEN PROJECT, PROGRAM, PORTFOLIO, AND OPERATIONS

• Program: A group of related projects and activities managed in a coordinated way to obtain benefits not available from managing them individually. Programs are not just "large projects."

• Megaproject: A very large project costing $US\$1\,billion$ or more, affecting $1\,million$ or more people, and running for years.

• Portfolio: Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.

• Operations Management: Ongoing production of goods or services outside the scope of project management. It transforms inputs (materials, labor) into outputs.

• Intersections between projects and operations:

  • Developing new products or expanding outputs.

  • Improving operations/product development.

  • At the end of a product life cycle.

  • At each closeout phase.

• Comparative Management Focus:

  • Program and Project Management: Focus on doing programs and projects "the right way."

  • Portfolio Management: Focuses on doing "the right" programs and projects.

ORGANIZATIONAL PROJECT MANAGEMENT (OPM)

• OPM is a framework where portfolio, program, and project management are integrated with organizational enablers to achieve strategic objectives.

• OPM ensures organizations undertake the right projects and allocate resources appropriately across strategy, portfolios, programs, projects, and operations.

KEY COMPONENTS OF THE GUIDE

• Project Life Cycle: The series of phases from start to completion. It provides the framework for management.

• Development Life Cycles:

  • Predictive (Waterfall): Scope, time, and cost are determined early; changes are closely managed.

  • Iterative: Scope is determined early, but time/cost estimates are modified as understanding increases; product developed through repeating cycles.

  • Incremental: Deliverable produced through iterations adding functionality; complete only after the final iteration.

  • Adaptive (Agile): Iterative or incremental; detailed scope defined before an iteration starts.

  • Hybrid: A combination of predictive and adaptive models.

• Project Phase: A collection of related activities culminating in a deliverable. Attributes include Name, Number, Duration, Resource requirements, Entrance criteria, and Exit criteria.

• Phase Gate: A review at the end of a phase. Performance is compared to business documents (Business Case, Charter, etc.). Decisions include: Go to next phase, go with modification, end project, or repeat phase.

• Processes: A systematic series of activities; inputs are acted upon by tools and techniques to create outputs (deliverables or outcomes).

  • Categories: Used once/predefined (Develop Charter), performed periodically (Acquire Resources), or performed continuously (Define Activities).

PROJECT MANAGEMENT PROCESS GROUPS

• There are $5$ Process Groups, independent of project phases:

  1. Initiating Process Group: Define a new project/phase and obtain authorization.

  2. Planning Process Group: Establish scope, refine objectives, and define the course of action.

  3. Executing Process Group: Complete the work defined in the management plan.

  4. Monitoring and Controlling Process Group: Track, review, and regulate progress; identify needed changes.

  5. Closing Process Group: Formally complete or close the project, phase, or contract.

PROJECT MANAGEMENT KNOWLEDGE AREAS

• There are $10$ Knowledge Areas used in most projects:

  1. Project Integration Management: Identifying and coordinating processes.

  2. Project Scope Management: Ensuring the project includes all and only the work required.

  3. Project Schedule Management: Managing timely completion.

  4. Project Cost Management: Planning and controlling budget.

  5. Project Quality Management: Incorporating quality policies.

  6. Project Resource Management: Identifying and managing needed resources.

  7. Project Communications Management: Planning and distributing information.

  8. Project Risk Management: Planning, identifying, and monitoring risk.

  9. Project Procurement Management: Acquiring services/products from outside.

  10. Project Stakeholder Management: Identifying and engaging people/groups.

PROJECT DATA AND INFORMATION

• Work performance data: Raw observations and measurements (e.g., percent complete, actual costs, start/finish dates).

• Work performance information: Data analyzed in context and integrated (e.g., status of deliverables, forecast estimates).

• Work performance reports: Physical or electronic representations of information (e.g., status reports, electronic dashboards).

TAILORING

• Tailoring is necessary because each project is unique. The project manager and team must select the appropriate processes, tools, and life cycle phases.

• Tailoring addresses constraints: Scope, schedule, cost, resources, quality, and risk.

• Methodologies can be developed internally, purchased from vendors, or acquired from professional associations.

PROJECT BUSINESS DOCUMENTS

• Project Business Case: An economic feasibility study used to establish validity and authorize project activities. It lists objectives and reasons for initiation.

  • Includes: Business needs, analysis of the situation (Gap analysis, risks), recommendations, and evaluation plans.

  • Options analyzed: Do nothing (business as usual), do minimum, or do more than minimum.

• Project Benefits Management Plan: Describes how and when benefits will be delivered and the mechanisms to measure them.

  • Elements: Target benefits, strategic alignment, timeframe for realization, benefits owner, metrics, assumptions, and risks.

• Project Charter: Formally authorizes the project and gives the project manager authority to apply resources.

• Project Management Plan: Describes how the project will be executed, monitored, and controlled.

PROJECT SUCCESS MEASURES

• Success is traditionally defined by time, cost, scope, and quality.

• Modern success also includes meeting financial measures from the business case:

  • $Net\,Present\,Value\,(NPV)$

  • $Return\,on\,Investment\,(ROI)$

  • $Internal\,Rate\,of\,Return\,(IRR)$

  • $Payback\,Period\,(PBP)$

  • $Benefit-cost\,ratio\,(BCR)$

• Other metrics include stakeholder satisfaction, customer adoption, integration into operations, and achievement of organizational strategy.