Read the Course Overview.
1. What is Project Integration Management?
2. Project Integration Management and the Process Groups
2. Developing the Project Charter
3. The Completed Project Charter
When you look at a mechanical watch, you see the hands on the clock face keeping time. What you don't see are more than 100 parts moving in concert to allow the watch to tell you the time.
So a watch relies on various parts working together seamlessly. This is similar to project management.
Can you think of any examples where not integrating activities could cause a project to fail?
Enter your thoughts in the text box provided. Then select the Next Page button to continue.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
Projects are complex undertakings that require a high degree of coordination from start to finish. It's likely that a lot of activities and different people will be involved in planning, getting the work done, monitoring progress, and finally closing the project.
Imagine a complex construction project. If the work of contractors isn't tied in tightly to the agreed plans, the project is likely to fail. Also, different people will be involved in checking the quality of the work. What if their findings never make it back to the contractors and nothing is done about a serious structural problem?
It's vital for the project manager to bring all the parts together and ensure they keep working together to meet a project's objectives.
Several activities fit in the Project Integration Management Knowledge Area:
Description of excerpt of Table 3-1; PMBOK® Guide - Fifth Edition follows.
The table illustrates the Knowledge Area row Project Integration Management, which is divided into five columns – the five Process Groups. Develop Project Charter is the process listed in the Initiating Process Group column. Develop Project Management Plan is listed in the Planning Process Group column. Direct and Manage Project Work is listed in the Executing Process Group column. Monitor and Control Project Work and Perform Integrated Change Control are processes listed in the Monitoring and Controlling Process Group column. And Close Project or Phase is a process listed in the Closing Process Group column.
Description ends.
In this course, you'll learn what Project Integration Management involves and why it's important. You'll also learn how project processes overlap and interact. For example, project managers gather inputs and use them as they apply tools and techniques, which results in outputs. The outputs often become inputs for other processes.
The process interaction diagram has Input 1 linking to Process 1, which in turn links to Output 1. Output 1 becomes Input 2, which links to Process 2, and so on.
Once you have an understanding of what's needed to manage project integration, you'll learn more about the first two processes. These are what you use to create a project charter and develop a project management plan. Together, these documents guide all other project activities, making sure they work together to meet objectives.
After completing this topic, you should be able to
Imagine a building with four sides. If you take away one wall, the roof will collapse. You can think of a project in a similar way. A lot of separate activities and processes go into it, but if they don't all fit together and support the same outcome, the project will collapse.
Projects are managed using processes that are drawn from several Knowledge Areas, each of which relate to the knowledge needed to manage a particular aspect of a project.
The project management Knowledge Areas - Scope, Time, Cost, Procurement, Quality, Human Resources, Communications, Risk, and Stakeholder Management - all fit under one umbrella concept.
The processes in each Knowledge Area are grouped into Process Groups that represent five discrete types of management activity. But what ties all the activities in the Process Groups and Knowledge Areas together so they all help meet a project's final objectives?
Initiating, Planning, Executing, Monitoring and Controlling, and Closing are the overarching processes that bring the Knowledge Areas together.
The answer is Project Integration Management. This is a Knowledge Area that contains umbrella processes that pull together the activities and processes from the other Knowledge Areas so they flow through a project's life cycle in an organized way.
The Process Group that contains the overarching processes is Project Integration Management.
Select each Process Group to find out which activities Project Integration Management coordinates to meet a project's objectives.
Besides coordinating activities across the different Process Groups, what other types of management activities do you think are part of integration management?
Enter your thoughts in the text box. Then select the Next Page button to learn more about the other Project Integration Management activities.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
As well as coordinating activities, Project Integration Management helps manage stakeholder engagement and resource allocation across a project. It also helps balance the competing needs of objectives and Knowledge Areas, and finds compromises and alternatives when needs change.
Select each role of Project Integration Management to find out more about the activities it includes.
Consider the project that aims to introduce remote access to a company's 200 off-site sales agents.
The project manager needs to manage stakeholder engagement. When the project team responsible for the execution of the project tells him the rollout of the laptops will be delayed by two weeks, the project manager relays this information to the off-site sales agents.
This allows the agents to adjust their own work schedules so the delay doesn't affect them negatively. The project manager has integrated the schedule change into all activities that it may affect.
For example, the rollout has moved from Wednesday the second to Wednesday the sixteenth.
The project manager manages resource allocations throughout the life of his project. Since resource allocation is a big chunk of his budget, he makes sure that resources are being used as efficiently as possible in each and every scheduled task.
For example, the new laptops are configured in batches of 25 and then shipped out to their respective sales agents. For the first batch, the project manager assigns a senior IT and a junior IT specialist to the task. Once the junior IT specialist understands the process well, the project manager releases the senior IT specialist to another project where she is needed.
This change in resource allocation allows the project manager to decrease work hours on the configuration task by half, plus the hourly rate for the junior IT specialist is 20% lower than for the senior position. In this way, he is able to decrease his staffing costs considerably for the duration of the task.
During planning, the project team develops a schedule to a set budget. Because of the delay in the delivery of laptops, the project manager revisits all project plans. He identifies the resources he can reallocate so the delay doesn't put the project at risk, and considers how to make the best use of all available resources during the delay. For example, to ensure training on the new laptops and the remote system starts only when all agents have received their laptops, he contacts the trainers with a revised schedule.
The project schedule is in the form of a table with five rows and columns for 19 days of the month. The rows represent project tasks, such as ordering, delivery, training, and support. Horizontal bars represent the duration of each activity in relation to the others. For example, ordering the laptops is from day 1 through day 3, and delivery from day 4 through day 7.
We've all been in a position where we had to balance one thing with another to achieve a goal. For example, you've likely balanced your income against your expenditures to make sure you didn't fall into needless debt.
In the example scenario, what do you think the project manager can balance the delay against so that the project's goals are not put at risk?
Use the text box to record your views and select the Next Page button to learn more about what the project manager balances the delay against.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
The project manager ensures collaboration between the project's different activities by balancing the needs of objectives and Knowledge Areas.
An objective of the project is that all sales agents receive training on using the laptops and the remote access system. The delay in the rollout of laptops makes it necessary for the project manager to liaise with stakeholders who can impact the schedule, training, and budget in order to ensure the project continues to meet its objective.
Stakeholders may have conflicting opinions when a project's plans change. In this instance, the project manager needs to find a compromise between the available budget and training. Due to the delay, on-site training could be reduced from five to two days to offset costs incurred because of the delayed rollout of the laptops. The trainer states that a shortened training schedule will affect the quality of the training.
The project manager negotiates with the trainer. They agree on an alternative training schedule that will affect neither the budget nor the quality. They decrease on-site training to two days, but increase off-site support from two to five days.
Once the project manager has found a compromise that meets all stakeholders' expectations, he updates the project management plan.
What roles does Project Integration Management have in a project?
Options:
Option 1: This is a correct option. Project Integration Management is one of ten Knowledge Areas. It helps project managers coordinate activities across the other Knowledge Areas and across the five Process Groups so that a project can meet its objectives.
Option 2: This option is correct. Project Integration Management helps project managers effectively manage resource allocation across a project. It involves making sure needed resources are available for completing all aspects of meeting a project's objectives.
Option 3: This is a correct option. Project Integration Management involves adjusting project plans and activities as needs arise and making sure changes meet stakeholder and project needs.
Option 4: This option is correct. Project Integration Management involves balancing the needs of both objectives and Knowledge Areas. For example, it involves finding acceptable solutions when two objectives conflict and both can't be met.
Option 5: This is an incorrect option. Project Integration Management is not concerned with marketing a project to its stakeholders. Instead, it helps project managers coordinate all the activities that go into meeting a project's objectives and satisfying its stakeholders.
Option 6: This option is incorrect. Project Integration Management allows project managers to coordinate activities across a project. In a project, not all activities take place one after the other.
Correct answer(s):
The main role of the Project Integration Management Knowledge Area is coordinating a project's processes so its objectives can be met in an organized way. Project Integration Management also entails managing stakeholders' expectations, resource allocation, and the needs of competing objectives and Knowledge Areas. Throughout a project, it involves finding compromises and alternatives to meet changing needs.
After completing this topic, you should be able to
The pieces of a jigsaw puzzle fit together seamlessly. In the same way, all the activities in a project must fit together so that the project's overall objective can be met. Project Integration Management brings together and coordinates all project activities.
To do this, Project Integration Management uses a set of processes:
Select each process for more information about it.
Match each Project Integration Management process to the Process Group in which it belongs. Two of the processes match to the same Process Group.
Options:
Targets:
The Develop Project Charter process fits in the Initiating Process Group. This is because developing a project charter is one of the important activities in kicking off a project.
The Develop Project Management Plan process fits in the Planning Process Group because it involves planning project activities.
The Direct and Manage Project Work process fits in the Executing Process Group. It occurs while project work is being carried out.
The Monitoring and Controlling Process Group includes processes for tracking a project's progress and making changes where necessary. So both the Monitor and Control Project Work and the Perform Integrated Change Control processes fit into this group.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C
Target 4 = Option D, Option E
This table provides a brief recap of the processes and their associated Process Groups for the Project Integration Management Knowledge Area.
Description of excerpt of Table 3-1; PMBOK® Guide - Fifth Edition follows.
The processes of the Project Integration Management Knowledge Area are Develop Project Charter, which is in the Initiating Process Group; Develop Project Management Plan, which is in the Planning Process Group; Direct and Manage Project Work, which falls under the Executing Process Group; Monitor and Control Project Work and Perform Integrated Change Control, which are part of the Monitoring and Controlling Process Group; and Close Project or Phase, which is in the Closing Process Group.
Description ends.
Like the Process Groups, the six Project Integration Management processes are distributed throughout the project life cycle. Together, they coordinate all other processes so that a project's objectives can be met.
Figure 2-8, PMBOK Guide - Fifth Edition is the life cycle diagram that shows how cost and staffing levels rise and fall in a bell curve over time. They are low at the starting the project stage, rise during the organizing and preparing stage, peak in the carrying out the work stage, and fall sharply during the closing stage. The starting the project stage aligns with the Initiating Process Group. The organizing and preparing stage aligns with the Planning Process Group. The carrying out the project work stage aligns with the Executing and Monitoring & Controlling Process Groups. The closing the project stage aligns with the Closing Process Group.
Each process in Project Integration Management is linked through a system of inputs and outputs. The outputs from one process become the inputs for one or more other processes.
Develop Project Charter is the process during which project stakeholders authorize a project. The project charter documents the initial requirements that meet all stakeholders' needs. The key inputs to this process are the project statement of work, business case, and agreements. Certain enterprise environmental factors and organizational process assets also provide input to this process.
Select each key input to the Develop Project Charter process for more information.
The project charter is the output of the Develop Project Charter process. It documents relevant project information such as a description of the customer's needs, the project's purpose, a list of known risks, and a summary schedule and budget. The project charter enables the project team to plan a project according to stakeholder expectations and to fulfill a project's objectives.
The project charter may include Project title, Project start date, Project finish date, Project manager, Business need, and Project description.
And it is therefore an important input to the Develop Project Management Plan process, in which a more detailed project management plan is created.
The project management plan defines, integrates, and coordinates all subsidiary plans for each major Knowledge Area in a project. These plans include the schedule, cost, quality, scope, communications, stakeholder, procurement, and risk management plans, as well as the process improvement plan, human resource plan, and requirements management plan.
The project management plan defines the ways a project team should execute, monitor, control, and close a project. So it's an important input for all the other Project Integration Management processes.
The Develop Project Management Plan process belongs to the Planning Process Group, but its key output also feeds into the Executing, Monitoring and Controlling, and Closing Process Groups.
As a project progresses, circumstances inevitably change. This results in the project team having to update the management plan at different stages. Therefore, you could call this process Develop and Update Project Management Plan. It is a process that is repeated or iterated throughout the other Process Groups.
The Develop Project Management Plan process belongs to the Planning Process Group, but it is affected by the activities of the Executing, Monitoring and Controlling, and Closing Process Groups.
Gleeson Associates provides executive job searches to blue chip companies. The company recognizes an opportunity to increase its market share in New York due to market demands. This becomes the business case to construct a second office for 50 staff members in the city. This information is developed into the project charter that authorizes an office construction project.
The key inputs to the Develop Project Charter process are project statement of work, business case, and agreements. The output is the project charter.
The project charter informs the process of developing the project management plan for the office construction project. And the information that provides input to the project management plan affects the way the plan details the project.
The project charter is an input to the Develop Project Management Plan.
For example, the fact that the new office should accommodate 50 employees helps determine, among other things, the needed scope, schedule, and budget for the project.
The first two processes in Project Integration Management are Develop Project Charter and Develop Project Management Plan.
Which statement best describes how these processes are linked?
Options:
Option 1: This is the correct option. The project charter is the key output of the Develop Project Charter process. Because it identifies what a project must achieve to meet stakeholders' expectations, it's a vital input for the Develop Project Management Plan process. Activities must be planned based on what's in the project charter.
Option 2: This is an incorrect option. An agreement between the organization running a project and a customer is an input to the Develop Project Charter process, not the human resources subsidiary plan. It describes the responsibilities of both parties and usually specifies the product or service, a warranty period, and sign-off and payment procedures.
Option 3: This option is incorrect. It is the project management plan that defines, integrates, and coordinates the subsidiary plans. The project charter only outlines the initial requirements for a project.
Option 4: This option is incorrect. A statement of work is just one of the inputs that goes into creating a project charter. The project management plan created in the second process is based on the project charter, rather than only on the statement of work.
Correct answer(s):
The project management plan links the first two processes of integration management – Develop Project Charter and Develop Project Management Plan – to the next process, Direct and Manage Project Work. The plan is a vital input for this process.
The Develop Project Charter process leads to the Develop Project Management Plan process, which creates the project management plan, which leads to the Direct and Manage Project Work process.
This is because the Direct and Manage Project Work process carries out the work defined in the project management plan. And as the project team executes the work, the plan may need to be updated. The updates become an output of the Direct and Manage Project Work process and feed back into the Develop Project Management Plan process.
The Direct and Manage Project Work process leads to project management plan updates, and these updates lead into the Develop Project Management Plan process.
Consider the example of Gleeson Associates, which is running a project to create a new office. When the office supply contractor notifies the project team that it can't deliver the order of 50 computer chairs on time because of availability issues, the team revisits the schedule in the project management plan.
An output of the Direct and Manage Project Work process is an updated project management plan.
The project manager now needs to decide whether to shift the opening day of the office out by two weeks – the time the contractor needs for the delivery – or find an alternative contractor who will deliver on time and within budget.
Whatever the decision, it's reflected in the updated project management plan.
Other outputs of the Direct and Manage Project Work process are deliverables, work performance data, change requests, and any necessary updates to other project documents.
Select each Direct and Manage Project Work output for more information.
During the Monitor and Control Project Work process, the project manager compares actual project performance with the schedule, budget, and scope baselines, as well as with quality criteria outlined in the project management plan. This is an iterative process because monitoring occurs throughout a project in order to identify areas that might require special attention.
The outputs of the Monitor and Control Project Work process are change requests, work performance reports, project management plan updates, and project documents updates.
The project manager for the office construction project determines that the change to the delivery date of the computer chairs will have repercussions on the opening date of the office. The Monitor and Control Project Work process helps the project manager identify any necessary changes to the way the project is executed.
The outputs of the Monitor and Control Project Work process are change requests, work performance reports, project management plan updates, and project documents updates.
Change requests become an input to the Perform Integrated Change Control process as requests to change the project's scope, policies, processes, plans, or procedures, as well as modify budgets or schedules. During this process, the project manager and team reviews change requests, approves changes, and manages those changes.
Other inputs to the Perform Integrated Change Control process include the project management plan, work performance reports, enterprise environmental factors, and organizational process assets.
The project manager assesses the change requests and determines the actions that need to be taken. The results of this deliberation may result in an approved change request and an update to the project management plan. Once the plan is updated, the project team implements the changes during the Direct and Manage Project Work process.
The outputs of the Perform Integrated Change Control process are approved change requests, change log, project management plan updates, and project documents updates.
In the office construction example, the project manager decides to delay the opening of the new office by two weeks. This change is reflected in updates to the schedule baseline in the overall project management plan. The change is then applied during the execution of the actual project work.
An excerpt from Table 3-1 of the PMBOK Guide Fifth Edition shows that the project management plan updates are outputs from the processes of the Monitoring and Controlling Process Group. They feed into the Develop Project Management Plan process of the Planning Process Group. The updated project management plan then feeds back into the Direct and Manage Project Work process, which is part of the Executing Process Group.
Three of the processes for managing project integration are Direct and Manage Project Work, Monitor and Control Project Work, and Perform Integrated Change Control.
Which is the correct statement about how these processes are linked?
Options:
Option 1: This is the correct option. When project work is monitored during the Monitor and Control Project Work process, the project manager and team may notice discrepancies between the actual work performance and the project management plan. If a change is necessary, a change request is submitted and approved in the Perform Integrated Change Control process. The project manager then updates the project management plan and the change is executed as per the approved and documented change request.
Option 2: This is an incorrect option. Project management plan updates are an output of the Monitor and Control Project Work and Perform Integrated Change Control processes. Project management plan updates are an input to the Develop Project Management Plan process, which is part of the Planning Process Group, not the Executing Process Group.
Option 3: This is an incorrect option. The Planning Process Group does not generate work performance information; it develops the project management plan. Work performance data is an output of the Direct and Manage Project Work process. It is then processed and work performance information becomes an input to the Monitoring and Controlling Process Group. When the performance information does not comply with performance requirements outlined in the project plan, change requests may be necessary.
Option 4: This is an incorrect option. Change requests are made during the Executing and the Monitoring and Controlling Process Groups. Once a change request is approved, the change is implemented during the Direct and Manage Project Work process.
Correct answer(s):
So what happens when the final deliverable for a project or phase is complete? It is then that the Close Project or Phase process starts. This process ensures the project team finalizes all activities, verifies and documents the deliverables, and hands these over to the customer or sponsor, or to the next phase. So the key inputs to this process are the accepted deliverables from the Validate Scope process.
The inputs to the Close Project or Phase process are the project management plan, accepted deliverables, and organizational process assets.
The project management plan is another input to the Close Project or Phase process.
The inputs to the Close Project or Phase process are the project management plan, accepted deliverables, and organizational process assets.
The project management plan provides an overview of all the requirements that the project or phase should have met. If these have been met, the project team can close the project or phase to everyone's satisfaction.
The project management plan also contains the performance baselines that the project manager will use to evaluate overall project success.
At Gleeson Associates, the first phase of the office construction project is nearly complete. The project team can now start the Close Project or Phase process before it begins working on the second phase of the project, which is to develop the IT infrastructure for the new office.
Using the Close Project or Phase process, the team makes sure the new office meets all requirements and documents what will be handed over to those working on the next phase. Once the relevant stakeholders are happy with the deliverables, the phase ends and a new one can start.
The outputs of the Close Project or Phase process are the final product, service, or result transition and organizational process assets updates.
In the new phase, the Direct and Manage Project Work, Monitor and Control Project Work, and Perform Integrated Change Control processes will be repeated in order to meet project objectives.
The final product, service, or result transition is used by the infrastructure setup phase. Here it will go through the Direct and Manage Project Work process, and the Monitor and Control Project Work and Perform Integrated Change Control processes.
In which ways does the Close Project or Phase process link to other processes in the Project Integration Management Knowledge Area?
Options:
Option 1: This option is correct. The Close Project or Phase process uses the project management plan as an input. It finalizes the activities laid out in this plan. It also ensures that the results of these activities are approved and handed over.
Option 2: This is an incorrect option. While the Close Project or Phase process uses accepted deliverables from the Validate Scope process as inputs, the Validate Scope process is part of the Project Scope Management Knowledge Area, not the Project Integration Management Knowledge Area.
Option 3: This option is correct. If a project phase is being closed, the output of the Close Project or Phase process is what allows a new phase to begin. It finalizes all activities and ensures deliverables can be handed over for use in the new phase. In the new phase, some or all of the processes from the Project Integration Management Knowledge Area will be repeated.
Option 4: This is an incorrect option. The project management plan is an input for the Close Project or Phase process. And checking the progress of a project against the project management plan is an activity in the Monitor and Control Project Work process.
Option 5: This option is incorrect. The Close Project or Phase process uses the project management plan, rather than the project charter, as an input. However, the project management plan is based on the general requirements in the project charter.
Correct answer(s):
The Project Integration Management Knowledge Area includes six processes. They are Develop Project Charter, Develop Project Management Plan, Direct and Manage Project Work, Monitor and Control Project Work, Perform Integrated Change Control, and Close Project or Phase.
Each of these processes links through a system of inputs and outputs. Together, they coordinate all activities and other processes in the project life cycle. Some of the Project Integration Management processes repeat in each project phase.
After completing this topic, you should be able to
The first step that gets any project off the ground is creating a project charter. This document makes it clear why a project is needed and what it must do. But what leads to the need for a project?
Business needs trigger projects. It's these needs that projects exist to meet.
Business needs can spring from a lot of different sources. For example, they might come from customers' requests, changes in market demand, or organizational needs. They might be related to social needs or the need to meet legal requirements and standards. They might also spring from technological advances or training requirements.
Customer requests can drive new projects by making it clear how a business can meet their needs. Say your company designs and builds automated machinery. A vehicle manufacturer contracts you to build a new robotic arm for its assembly line. The need driving the project is the customer's request for the equipment.
Changes in market demand can also drive projects. Whether demand goes up or down, businesses need to adapt. They may use projects to capitalize on the changes, protect their interests, or meet new demands.
For example, global oil shortages have created higher market demand for plastics that aren't based on petroleum. To meet the demand, a company might launch a project to manufacture petroleum-free plastic storage containers for the retail industry.
Can you think of any customer requests and market demands that could affect the work you do?
Enter your answer in the text box provided and then select the Next Page button to continue.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
Organizational needs relate to how businesses run. Like other types of business needs, these can trigger projects. For example, an expanding marketing company might relocate to a new premises to house additional call center staff. That would be a project driven by an organizational need.
As well as other types of needs, a business may address a social need. Environmental, political, and social changes can create needs among members of small groups or entire populations. For example, a particular type of disease creates a need for medical supplies to reach affected populations. A pharmaceutical company may initiate an innovative project to develop and deliver new vaccines to control the spread of the disease.
Regulatory types of needs and demands that lead to new projects include legal requirements and governmental standards.
Select each business need for an example of how it can lead to a project.
A technological advance may create the need for a project. For example, the introduction of a new scanning technology allows doctors to detect the early stages of diseases. A company that manufactures medical equipment may launch a project to create and market devices with these advanced features.
A project may be initiated to lessen the ecological impact on the environment. For example, a pulp and paper mill may decide to install modern filters that reduce pollution.
Required training can kick off a project. For instance, a luxury spa resort recognizes the need to train its staff. It initiates an internal project to design and deliver an induction program. New employees will learn about the company's policies, products, and services.
What types of business needs may trigger the start of a project?
Options:
Option 1: This option is correct. Customers' requests can trigger projects that aim to meet customers' needs or wishes – for example, by adapting a product or creating a new one.
Option 2: This is a correct option. Changes in market demand can trigger the start of projects. When demand for a product goes up, for instance, businesses may want to set up a project to increase production to meet the demand.
Option 3: This option is correct. Business and social needs may trigger the start of a project. Business needs are often related to customers' requests, changes in market demand, social needs, the need to meet legal requirements and standards, technological advances, or training requirements. Social needs are those that arise due to changes in environmental, political, and social circumstances.
Option 4: This is a correct option. Technological advances trigger new projects in businesses that want to use, or develop, the latest technology. Often, projects that introduce technological advances go hand in hand with projects that train staff in the use of the new technology.
Option 5: This option is correct. New or existing laws can create the need for a project. And when federal, state, or local agencies change their standards, this often triggers the start of new projects.
Option 6: This is an incorrect option. Increased production doesn't trigger the start of a new project. A trigger would be something that results in increased production. For example, if there is an increase in market demand for a product, this could trigger the start of a project to increase the production capacity of a factory.
Option 7: This option is incorrect. Routine administrative needs do not trigger the start of new projects. If the administrative needs change – for example, due to an increase in work – that may trigger the start of a new project.
Correct answer(s):
Many types of business needs can give rise to projects.
Match each type of business need to an example.
Options:
Targets:
A project can be triggered by a customer's request to purchase products or particular services. For instance, meeting a customer's request drives a project to supply equipment the customer needs.
Companies often need projects to update internal policies and systems as a result of their organizational needs. For example, a company may upgrade its phone system to ensure its business operations are efficient.
New or existing laws can create the need for businesses to comply with legal requirements. An example would be laws requiring that products be labeled with specific information. This could trigger a project to design and manufacture the labels.
The business need to adapt to changes in market demand can trigger projects like supplying solar panels based on increased demand for them.
Keeping pace with advances in the telecommunications industry is an example of a business need to keep pace with technological advances. This can trigger projects to update products or services, or to create new ones.
Social needs arise out of natural disasters like floods, and from other environmental, political, or social changes. Business needs that trigger projects can often be found when addressing these social needs.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C
Target 4 = Option D
Target 5 = Option E
Target 6 = Option F
A project takes its context from its customers, as well as from the business needs it must meet. All projects involve customer relationships. This applies whether a company is producing products or services to generate profits, streamlining internal systems, or serving the public.
In a project, you can classify each type of customer as an internal customer, an external customer, or a consumer.
An internal customer is a person or group of people in your company who uses or depends on the result of a project.
For example, the vice president of operations is aware of the impact that product defects can have on the company's reputation. He approves an internal project for the software team to develop a program to improve the current reporting process. The new system will allow the quality assurance division employees to manage product defects. In this case, the quality assurance employees are the internal customers who'll use the product.
Another example of an internal project would be developing a customer service training program for frontline employees. This initiative may be driven by the business need of resolving client problems efficiently. The company employees who'll develop new skills are the internal customers in this case.
An external customer is a buyer who has contracted your company to create a product or service. As the vendor or seller, your project will involve developing and supplying the product to the requesting company on fixed terms.
For this type of relationship, there will be a formal contract in place between the buyer and vendor companies.
As project manager, you may find yourself as both the vendor and a buyer in a given project. Say an airline selects your company to provide an upgraded navigation system for its commercial jets. Selling a product makes you the vendor. But to create the navigation system, you'll need to purchase computer chips from a third company. This means you're an external customer to the computer chip supplier.
Another type of external customer is the consumer. In this case, the project is initiated to create a product for the public, so there is no contractual relationship with the customer or end user.
However, a consumer is external to the organization delivering the product and expects the product to meet the advertised specifications.
Therefore, the consumer is an external customer, but in a different sense than described earlier.
For example, due to advances in satellite communication, an electronics manufacturer decides to upgrade its products. It produces a handheld device that enables users to make video calls from almost anywhere in the world.
Members of the public who buy the product direct from sales outlets are consumers. In this relationship, the product or service isn't for resale or use in further manufacturing or production.
Match types of customers to the corresponding examples. More than one type may match to an example and some types may be used more than once.
Options:
Targets:
Internal customers are employees in your company who'll use or depend on the result of a project, like a new payroll system.
An external customer is a person or organization that contracts your company to deliver a service or product, like customized light fittings.
Someone who buys your computer games to play on his personal computer at home is an external customer because he expects your company to deliver on its promise to deliver a certain product. This person is also a consumer, or an end user, who buys a product for personal use, rather than for resale or use in manufacturing.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 = Option C, Option B
Different types of business needs trigger projects – for example, the need to address customer requests; changes in market demand; social needs; organizational, training, or legal requirements; and technological advances.
The customers for a project add to its context. They may be internal or external customers, or consumers.
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Follow-on Activity
Access the follow-on activity Business Needs and Customer Relationships to assess your organization's business needs and customer relationships that trigger the birth of projects.
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You may be familiar with the expression "garbage in, garbage out." This is a well-known axiom meaning that if invalid data is entered into a system, the resulting output will also be meaningless. This holds true when you develop a project charter. It's important you use the correct inputs, or the output won't be valid.
The major inputs you'll rely on when developing the project charter come from the project initiator or sponsor. They include the business case and statement of work, commonly known as the SOW. Other inputs you'll use are any existing agreements, which typically are in the form of contracts if the project is for an external customer. The enterprise or organization provides enterprise environmental factors and organizational process assets.
Description of excerpt of Fig.4-3; PMBOK® Guide - Fifth Edition follows.
The Develop Project Charter process is part of Project Integration Management. The project initiator or sponsor contributes the business case, statement of work, and agreements to the process. The enterprise or organization contributes the enterprise environmental factors and the organizational process assets to the process.
Description ends.
The business case provides the justification for investing in a project from a corporate perspective. To do this, the project manager assesses the project's value and feasibility, given a business need.
For example, it might assess the value of a project to develop gas products. This could address the need of meeting increased market demand for these, given electricity shortages.
The business case uses analyses to demonstrate what value the project would have in terms of business benefits.
The SOW stipulates the high-level characteristics of the product or service the project must deliver.
It indicates the relationship between the business need and the project's result. For example, a retail chain approaches an electronics company to develop product scanners to speed up customer processing at checkout counters.
The SOW also considers the company's strategic plan. In this case, faster payments will improve customer satisfaction and increase product sales.
Agreements, which are predefined intentions or conditions for a project, are another input used to develop the project charter. Especially when there's an external customer for a project, an agreement in the form of a contract is in the best interests of all the parties involved. It identifies project terms and conditions, and fixes the degree of risk sharing between the buyer and the seller.
For example, a publishing company is contracted by a local school district board to supply workbooks. A contract specifies the number of workbooks required, a fixed price per book, and the specific time frame in which the books must be delivered.
This ensures both parties know and agree to the basic terms of the project.
Enterprise environmental factors are conditions surrounding a project that can have an impact on its success. Examples are marketplace conditions, organizational infrastructure, and governmental or industry regulations.
Select each enterprise environmental factor for more information about it.
Think about the last project you were involved in, and the circumstances or conditions surrounding the project.
Were any specific environmental factors useful in developing the project charter?
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Organizational process assets may come from any or all of the organizations involved in a project. Examples include:
When developing the project charter, it's important that you consider the process assets of all the organizations involved in the project. They may have formal and informal policies, procedures, plans, and guidelines with effects that must be considered. These standards for conducting work can influence a project's success.
Historical information that's relevant for a project charter includes what an organization has learned from previous projects. For example, past project risks, schedules, and outcomes can give you useful insights for a new project of a similar type and scope.
Many organizations keep a lessons learned knowledge base, which helps in storing and tracking historical information.
When creating a project charter, your understanding of past, similar projects can help you avoid repeating mistakes. For example, you might find it useful to review activity estimates and budgets on past projects of a similar type before estimating costs for the activities on the new project.
What are examples of the inputs to the Develop Project Charter process?
Options:
Option 1: This is a correct option. The business case is a key input for developing a project charter. It justifies the need for the project and the business value of investing in it.
Option 2: This option is correct. The SOW describes the scope – or required characteristics – of the product or service a project will deliver. This becomes an important part of the project charter.
Option 3: This is a correct option. Governmental or industry standards are examples of enterprise environmental factors that can affect a project, and therefore its charter.
Option 4: This option is correct. Company project management templates are an example of organizational process assets that can influence the content of a project charter. Other examples of these assets are policies and procedures, and relevant historical information.
Option 5: This is an incorrect option. A project charter is developed before all work for a project is identified or broken into manageable units.
Option 6: This option is incorrect. Although the project charter outlines requirements at a high level, it doesn't necessarily list all stakeholders' requirements or break these down into detailed functional requirements.
Option 7: This option is correct. Agreements are another input to the Develop Project Charter process. Agreements can be in the form of contracts, letters of intent, or even verbal agreements between parties.
Correct answer(s):
During the Initiating stage of a project, you and members of your project team gather project charter inputs and apply tools and techniques to these to create the project charter.
For developing a project charter, a critical tool you'll need as the project manager is expert judgment. It's used to evaluate the inputs to the project charter. Judgment is expert when it's based on acquired expertise in a specific Knowledge Area, product area, or discipline.
So an expert is someone recognized as a reliable source of knowledge or skills in a particular area. Others rely on this person's opinions.
Expert judgment comes into play in the interpretation of the data that goes into a project charter. Experts assist in defining the product and project requirements. Their capabilities can influence the project's outcome.
Think about a project you know of or one you'll be working on.
What types of experts could help guide the start of the project? What could they contribute to the project charter?
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The types of experts who should help develop a project charter will depend on what the project is. Examples of experts are the project manager, people with relevant expertise in other internal business units, and subject matter experts who have specialized knowledge or skills. They can include consultants you bring in, and stakeholders like customers and the project sponsor. They might also be members of professional and technical associations, or industry groups.
You can obtain expert judgment using individual consultations and interviews. Or you could use focus groups or surveys.
A marketing company has contracted your company to develop an IT system, and you're the project manager for this venture.
The project involves designing and delivering a data communications system that will connect computer systems at various sites.
What types of experts are likely to have valuable insights about what should go into the project charter?
For the IT project, types of experts whose opinions you'll probably need are IT consultants or IT experts from within your company. It would be a good idea to include the sales executive who made the initial contact with the project customer. It might also be important to get expert opinions from a lawyer in your company's Legal Department.
Select the experts to learn what expertise they could provide during the process of developing the project charter.
By ensuring experts review the inputs that go into the project charter, you help make sure the charter itself is reliable. This is vital because it's the charter that will guide all further processes for the project.
Consider another example of a project. Say your company has initiated an internal project to build a new office complex for its national headquarters. The overall site concept is to have multiple buildings organized around a central courtyard. This outdoor space will be linked to pedestrian routes to define a formal outdoor space.
You'll probably need to rely on some of these experts:
Select the experts to learn what specialized knowledge they could apply in developing the project charter.
Generally, you should include judgment from as wide a selection of relevant experts as possible when you're creating a project charter. This helps ensure you consider all aspects of the project. That way, surprise requirements and issues are less likely to surface later.
One of the best ways to gather information from experts is through meetings and focus groups. Facilitation is another tool and technique of the Develop Project Charter process. There are several types of facilitation techniques you might use during project meetings:
The tools and techniques used in the Develop Project Charter process are expert judgment and facilitation techniques.
What roles does expert judgment play in developing a project charter?
Options:
Option 1: This is a correct option. Expert judgment based on specialized knowledge or skills is used to help assess and determine what must go into the project charter.
Option 2: This option is correct. Experts assist in developing the project charter by interpreting data and helping determine what product and project requirements will meet objectives.
Option 3: This is an incorrect option. Expert judgment is one of the techniques used to assess project charter inputs. It isn't itself an input.
Option 4: This option is incorrect. Expert judgment is a technique used to evaluate the inputs to the project charter, rather than the finalized charter itself.
Correct answer(s):
The two key inputs for developing a project charter are the business case and the statement of work, or SOW. Other inputs include agreements such as a contract, enterprise environmental factors, and organizational process assets.
The main technique used to develop the project charter is expert judgment. The project manager and a selection of other relevant experts use their judgment to interpret and assess inputs, and to help identify project and product requirements. Facilitation techniques are also used when developing the project charter.
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Follow-on Activity
Access the follow-on activity Inputs to a Project Charter to assess the value of the SOWs and business cases used in your own company.
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Plato, a student of Socrates, once said, "The beginning is the most important part of the work." Similarly, when you're managing a project, the way you start out is critical. A project charter helps you map a project's direction in sufficient detail to achieve the desired results.
The process of developing the project charter falls in the Project Integration Management Knowledge Area. This is because the charter guides everything that follows in a project. It also feeds into all the other processes that have a role in guiding work and pulling everything together.
An excerpt from Table 3-1 of the PMBOK® Guide - Fifth Edition has a row containing the processes in the Project Integration Management Knowledge Area: Develop Project Charter, Develop Project Management Plan, Direct and Manage Project Work, Monitor and Control Project Work, Perform Integrated Change Control, and Close Project or Phase.
The process also fits in the Initiating Process Group. This is because its output – the project charter – serves as the green light for all subsequent planning activities to begin.
An excerpt of Table 3-1; PMBOK® Guide - Fifth Edition shows that the Develop Project Charter process falls within the Initiating Process Group column. The Develop Project Management Plan process is part of the Planning Process Group. The Direct and Manage Project Work process is part of the Executing Process Group. The Monitor and Control Project Work and Perform Integrated Change Control processes are part of the Monitoring and Controlling Process Group. The Close Project or Phase process is part of the Closing Process Group.
You and key stakeholders might already feel you have a clear idea what a project must achieve.
Why do you think it's important to develop a project charter?
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Why a project charter is important
By approving a project charter, the project sponsor formally authorizes a project. So the charter serves as an official agreement about what a project must achieve and how, at a high level. It gives the project manager the authority to assign organizational resources and links the project to the ongoing work of the organization.
For a project charter to serve its function properly throughout a project, it must include specific elements.
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Job Aid
Access the job aid Project Charter Elements to review the required elements of a project charter, with a description of each. You can use this as a reference as you work through this topic.
There are several key elements that are important to include in the project charter:
Suppose an Internet service provider's call center system cannot cope with high request volumes and is expensive to maintain. Without advanced technology that can integrate all help desk applications, service response times are poor. This could result in the loss of new and existing customers. Aware of this, the company's vice president of operations initiates a project to resolve this business problem.
The first element the project charter sets out is the high-level business need. This is a summarized version of the business case. It describes the reason for initiating the project, specifically stating the business problem that the project will resolve.
For example, a section of a project charter describes the business need a project addresses as "There is a business need to streamline company operations and reduce the costs of providing technical support in the United Kingdom. A call center in India can provide multiplex management applications which can integrate all current help desk systems. This outsource solution will improve service response times and reduce operating costs."
This is supported by appendices Risk Analysis, Alternative Solution Analysis, and Cost Benefit Analysis.
In this example, the Internet service provider's business need is to reduce its operating costs and streamline its operations. The project will resolve the business problem by outsourcing technical support to a company in India. Advanced multiplex management will help integrate all help desk applications and improve customer service.
Can you recall the first element of a project charter?
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The project charter's first element
The business need is the first element. It summarizes the need for the project and lays out how the project addresses this need.
The next element the project charter should address is the measurable business goals and objectives and factors that are deemed critical to the success of a project. This criterion is used to measure what must be done for the project to be acceptable to the stakeholders. You can obtain this data from the SOW.
For example, the measurable objectives and success criteria element states "The objective of this project is to outsource the administration of inbound IT help desk services that will be responsible for handling technical support worldwide. This will reduce operating costs by 60%. The offshore supplier is to provide consistent high-quality services to improve customer satisfaction."
The Internet service provider's measurable objectives, when achieved, will demonstrate the desired strategic plan of reducing operational costs by 60%. The business objectives relate to the strategic initiatives outlined in the business case. They represent planned levels of what will be achieved as a result of the project, which can be measured by actual results.
The project requirements element of the project charter should state what is needed to perform the work to the required specifications. You can obtain this high-level information from the SOW.
For example, a section outlining project requirements may state that the outsourcing of an inbound technical support administration offshore project will involve linking the offshore facility to the corporate computer network. The offshore facility will design, configure, and install a multiplex management system. All product-related queries and problems will be compiled into a database to make product and service improvements. Offshore agents will receive training on all inhouse products and services.
The Internet service provider's project requirements outline what security measures and technology are to be used to link the network. The charter states what characteristics the help desk software is supposed to have, what goals the advanced technology is supposed to meet, how information is to be compiled, and what training offshore agents will receive.
Another element the project charter should address is the product scope description, which you can obtain from the SOW. It describes the product to be delivered by the project. This helps you to translate the project objectives into tangible deliverables.
In this case, the product scope description element states that the offshore facility will be linked to the corporate computer network using LAN technology, firewall, and secure VPN for remote access. It will provide customized technology to support services through e-mail, chat, voice, and the Web, and include real time and historical reporting functionality. Offshore agents will receive training via e-learning videos, web-based training software, and online manuals.
In the example, the Internet service provider's product scope provides a basic description of the technology and training requirements required to reduce operating costs and streamline operations. The imposed limits control the delivery of the product.
Review the excerpt of a project charter created by a project manager of an outsourcing project.
What is the missing component in this example?
The document consists of three sections:
Section 1:
There is a business need to streamline company operations and reduce the costs of providing technical support in the United Kingdom. A call center in India can provide multiplex management applications which can integrate all current help desk systems. This outsource solution will improve service response times and reduce operating costs.
Section 2:
The offshore facility will be linked to the corporate computer network using LAN technology, firewall, and secure VPN for remote access.
Section 3:
The outsourcing of inbound technical support administration offshore project will involve:
- linking the offshore facility to the corporate computer network using LAN technology, firewall, and secure VPN for remote access
Options:
Option 1: This is the correct option. The high-level project objectives and related success criteria are the missing component. They detail what the project is to achieve, which can be measured by actual results.
Option 2: This is an incorrect option. This is not a missing component. The project requirements state what is needed to perform the work to achieve specified outputs.
Option 3: This option is incorrect. This component is not missing. The product scope describes the limits and characteristics of the product, service, or result to be delivered.
Option 4: This is an incorrect option. This is not a missing component. The business need describes the specific problem the project will address.
Correct answer(s):
The milestones and deliverables schedule element of the project charter should be abridged from the SOW. The deliverables are a set of outputs for each milestone delivery date. This information provides checkpoints to monitor project progress and revalidate work.
In this case, the milestones and deliverables schedule element identifies five phases: analyze the current system (Jan-Feb), create a shared vision for the new system (Mar-May), define blueprint for future support operations (Jun-Jul), train offshore agents (Aug-Sept), and implement and roll out (Oct-Dec).
In this example, the Internet service provider's milestones and deliverables schedule is a summary plan of project phasing, showing main project events and key dates.
The summary budget element of the project charter is an itemized forecast of estimated or intended expenditures assigned to a particular project activity over a set period. You can source this data from the business case.
In this case, the summary budget provides an allotted amount of $15,000 for phase 1, $10,000 for phase 2, $100,000 for phase 3, $50,000 for phase 4, and $350,000 for phase 5, for a total of $525,000. It includes an appendix of cost estimates.
The Internet service provider's summary budget specifies an allocated disbursement amount for each phase of the project.
The approval requirements element of the project charter is also abridged from the SOW. It should describe the quality objectives for each deliverable in terms of output standards and approval requirements. This includes all the product-related reviews and processes for acceptance testing that will be carried out during the project.
In this case, the approval requirements element sets out the acceptance process. End users have ten business days from initial delivery to accept a deliverable. Failure to provide notice within this period means the deliverable is accepted. If rejected, specific reasons must be stated. The project management team then has ten business days to correct the issues identified and resubmit the deliverable for acceptance. It also includes an appendix of quality specifications.
In this example, the Internet service provider's project approval requirements set out the processes for testing, acceptance, rejection, and resubmission deliverables. These are tangible objects produced as a result of project execution.
A project manager is responsible for a project to provide a hospital information system. She is in the process of developing a project charter.
Which examples describe the required elements that a project charter should contain?
Options:
Option 1: This is a correct option. The project charter should contain a summary budget to determine the appropriate amount and timing of disbursements to be made during the project life cycle.
Option 2: This option is correct. A milestone schedule should be included in the project charter to set out the divisible project stages for monitoring and measuring work performance.
Option 3: This is a correct option. The project charter should contain the project approval requirements to clearly define the process to be used to obtain deliverable acceptance.
Option 4: This option is incorrect. A communication plan element isn't included in the project charter. This will be devised during the planning process.
Option 5: This is an incorrect option. The project charter doesn't contain a change request element, as the project work has not yet begun.
Correct answer(s):
The project charter should explicitly name the project manager and provide a delineation of responsibilities. This element establishes the authority of the named individual to make decisions and lead the project.
In this case, Amrit Khan is the nominated project manager. In this role, she will manage the project team to successfully complete the project on time, within budget, and according to requirements. It is her responsibility to analyze and understand the scope, product requirements, assumptions, and constraints; develop the project management plan and all subsidiary plans; lead the project team in the creation of all project deliverables; track and report on overall project progress and performance; manage the project's budget; balance the competing demands for quality, scope, time, and cost; perform risk management to control project scope and quality; and interface with all stakeholders and manage their expectations. She has the authority to assemble the project team in coordination with the project sponsor; manage the project team to the agreed schedule; negotiate and approve requirements and changes to project goals, scope, and time line as necessary; and adapt the project management plan to the needs of the project.
The Internet service provider's nominated project manager has overall responsibility for the project. This means overseeing the coordination of activities required for successful delivery.
The project sponsor approval element names the person who has ultimate responsibility for, and has the formal authority to approve, the project charter. Approval indicates an understanding of the purpose and content described, and agreement that work should be initiated and necessary resources should be committed to the project.
In this case, Catherine Barden, the vice president of operations, will act as project sponsor.
The Internet service provider's nominated project sponsor is Catherine Barden. Her signature on the charter will confirm her agreement to the contents of the project charter, and confirm her order to proceed with the project.
When developing the project charter, you list the key stakeholders and their roles and responsibilities.
From the given names, who should be listed in the project charter and responsible for the project's success?
Options:
Option 1: This is a correct option. The project charter should name the appointed project manager. It authorizes this person to carry out the work and assign resources to project activities on a daily basis.
Option 2: This option is correct. The name of the project sponsor who has ultimate responsibility for the project must be listed. This individual approves the project charter, thereby authorizing the work.
Option 3: This is an incorrect option. The name of the IT manager is not generic to every project. If required, this member of the project management team will be recorded in the project charter.
Option 4: This option is incorrect. The name of the systems engineer is only recorded in the project charter as a member of the project management team if relevant to the project.
Option 5: This is an incorrect option. The name of the call center manager is not always required. If relevant to the project, this member of the project management team will be listed in the project charter.
Correct answer(s):
Project charter approval formally initiates the project. As the first sanctioned document, it is distributed to key stakeholders. These may include the customer, the management team, and others who might be involved with the project. This marks the beginning of the planning phase of the project.
Amrit Khan, project manager for an Internet service provider that is outsourcing its technical support, is reviewing the project charter to make sure it contains all the necessary elements before she submits it for approval. She notices that it's incomplete.
Access the learning aid Internet Service Provider Project Charter to review the document.
What elements are missing from this project charter?
Options:
Option 1: This is a correct option. The project objectives are not included in the project charter. This is a key element, as it outlines what the project will accomplish and the business value it will achieve.
Option 2: This is a correct option. The high-level business need is missing from the Internet service provider project charter. It must be included, as it describes the reason for initiating the project.
Option 3: This is an incorrect option. The specified quality requirements for deliverables and the acceptance process are recorded, so this element is not excluded from the project charter.
Option 4: This option is correct. A summary budget that allocates funding to each phase of the project should have been included.
Option 5: This option is incorrect. The project charter does currently outline the criteria that will be used to determine project success.
Correct answer(s):
For a project charter to serve its function properly, it must tie the project to the ongoing work of the organization. The specific elements it must include are the business need the project will address, measurable objectives and related success criteria, high-level project requirements, a product scope description, a milestones and deliverables schedule, a summary budget, and approval requirements.
Once approved by the project sponsor, the charter authorizes the project manager to assign resources to the project. It serves as the green light for all subsequent planning activities to begin.
After completing this topic, you should be able to
If you've ever managed a large project, you know that it's easy to become overwhelmed by its scope and bogged down by details. You also know how important it is to keep track of all the project's activities. To avoid the chaos of an unruly project, you need a plan.
As part of planning a project, the team develops a project management plan during the Develop Project Management Plan process.
This plan is a formal document that defines how a project team will execute, monitor, control, and close a project.
The plan brings together the planning that happens for all aspects of a project. So the process for developing it fits in the Project Integration Management Knowledge Area, as well as in the Planning Process Group.
An excerpt of Table 3-1; PMBOK® Guide - Fifth Edition lists the Knowledge Areas, and the associated processes in the Planning Process Group. The Develop Project Management Plan process is part of Project Integration Management. Plan Scope Management, Collect Requirements, Define Scope, and Create WBS are processes of Project Scope Management. Plan Schedule Management, Define Activities, Sequence Activities, Estimate Activity Resources, Estimate Activity Durations, and Develop Schedule fall under Project Time Management. Plan Cost Management, Estimate Costs, and Determine Budget fall under Project Cost Management. Plan Quality Management is a Project Quality Management process. Plan Human Resource Management is part of Project Human Resource Management. Plan Communications Management is part of Project Communications Management. The processes Plan Risk Management, Identify Risks, Perform Qualitative and Quantitative Risk Analyses, and Plan Risk Responses are part of Project Risk Management. The Plan Procurement Management process is part of Project Procurement Management. And Plan Stakeholder Management is the planning process in the Project Stakeholder Management Knowledge Area.
The project management plan integrates planning from all other Knowledge Areas. So it brings together plans for managing a project's scope, the time the project will take, and its cost. It includes plans for managing the quality of deliverables, communication with stakeholders and team members, and the human and other types of resources required for getting the work done. It also uses the plans developed for managing project risks, the procurement of goods or services, and managing stakeholder engagement.
Consider the purpose of the project management plan. It's there to guide you through all the processes involved in the project.
Now think about a previous project you've managed. Once you created the plan, did you follow it exactly? How important do you think it is to stick to the project management plan once it's complete?
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Whenever changes happen as the work of the project is being carried out, they are reflected in the form of updates to the project management plan.
So the Develop Project Management Plan process is an iterative one. This means it repeats across Process Groups.
It's the project manager who's responsible for updating the plan. For example, a project might be more complicated than expected and so its schedule needs to change. The project manager updates the schedule in the project management plan.
A plan's complexity mirrors the complexity of the project. So a simple, summarized plan will be enough for a simple project with few activities.
A more complex project needs a more detailed plan. At its most basic, the plan must contain a description of the project, its desired deliverables, and all the plans for what must be done in order for the project to succeed.
There are four main inputs for the Develop Project Management Plan process:
Select each input for more information about how you use it when developing a project management plan.
The project charter is an output of the Develop Project Charter process.
It contains the basic information that you develop into a detailed project management plan during the Planning group process.
For example, a project charter may contain project requirements, product characteristics, and project approval requirements. It also identifies the project manager and the project sponsor.
So the charter gives you an idea about the purpose of a project. It lists the project's objectives, and provides you with a summary milestone schedule and a summary budget.
The project management plan converts what's in the charter into detailed plans for meeting the requirements it outlines. It contains a project overview, a description of the business need that the project must satisfy, the success criteria, and the composition of the project team. It also contains subsidiary plans, such as the cost management plan, which is a detailed budget, and the human resources plan, which describes who should be included in the project team.
Suppose the project manager on a project to upgrade outdated IT software at a major financial institution gets an approved project charter from the client. The project manager then uses this charter to develop the project management plan.
For example, one of the requirements in the charter relates to purchasing the necessary computer hardware to support the upgrade.
The project manager plans exactly how costs, schedule, and quality must be managed for this requirement to be met by the due date. This is information she adds to the project management plan.
Imagine you're gathering inputs for a project management plan.
Why do you think it's important to include the outputs of other processes?
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Why the outputs of other processes are an important input
The project management plan is a formal document that defines how a project team will execute, monitor, control, and close a project. It contains a collection of subsidiary plans that are developed during the Planning processes of several Knowledge Areas: Project Scope, Time, Cost, Quality, Human Resources, Communications, Risk, Procurement, and Stakeholder Management. For example, the communications management plan is an output of the Plan Communications Management process and an input to the Develop Project Management Plan process.
The outputs from other Knowledge Areas of the Planning Process Group are inputs to the Develop Project Management Plan process.
These outputs include subsidiary plans and baselines.
Subsidiary plans are produced as outputs from the Planning processes for each of nine Knowledge Areas. They include plans for managing the project's scope, schedule, cost, quality, human resources, communications, risk, procurement, and stakeholder management plans. Not all of these plans are always included in the project management plan, but that depends on the project.
Several enterprise environmental factors are inputs into the Develop Project Management Plan process:
Select each enterprise environmental factor for more information on how it can be an input to the Develop Project Management Plan process.
Several types of organizational process assets can also be inputs into the Develop Project Management Plan process:
Select each organizational process asset for more information about how it affects project planning.
In the case of the project to upgrade software, organizational process assets, such as the company's historical data on previous IT projects, reveal valuable cost and scheduling information.
This data also reveals problems in earlier methods used to move customer information databases to new systems. The project manager now knows that she must take a different approach, and documents this approach in the project management plan.
By incorporating information into the software upgrade project management plan, the team will be able to meet the client's requirements and save a projected 10% on the materials used.
A project manager is preparing to create a project management plan.
What are the inputs the manager would use when developing the plan?
Options:
Option 1: This is an incorrect option. A contract is an input into the project charter, rather than the project management plan.
Option 2: This is a correct option. Historical information is an example of an organizational process asset that's an input for the Develop Project Management Plan process.
Option 3: This is a correct option. The project charter is the formal document that, once approved, authorizes the project and outlines what it must achieve. It's an important input for the Develop Project Management Plan process.
Option 4: This is an incorrect option. The project statement of work is an input in the project charter, rather than the project management plan.
Option 5: This is a correct option. A schedule management plan is produced as an output of planning processes in the Project Schedule Management Knowledge Area. It's usually included in the project management plan as a subsidiary plan.
Option 6: This is a correct option. Infrastructure information is an enterprise environmental factor. This information is vital for the project management plan because parts of the project may depend on, or make use of, existing infrastructure.
Correct answer(s):
A project management plan is created through the Develop Project Management Plan process, in the Planning Process Group. It's then updated during the Executing, Monitoring and Controlling, and Closing Process Group activities. It contains detailed information on how all aspects of the project will be managed.
When you develop a project management plan, you use different inputs: the project charter, outputs from planning processes across other Knowledge Areas, enterprise environmental factors, and organizational process assets.
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How do you find your way to a place you've never been before? You probably use a map or written directions. The project management plan is like a map that guides the project team to a desired destination. But unlike a map, a project management plan contains all the information you need to get through every leg of your journey, including what to do if the car breaks down and how long your trip should take.
When you're developing and assembling a project management plan, it's important to include all the documents and information needed to guide you through executing, monitoring, controlling, and even closing the project.
You may find that you have the expertise to handle all aspects of planning yourself.
But it's more likely that you'll need to call on the judgment and expertise of others to help you out in certain areas.
Expert judgment is a technique you use to assess each input to the Develop Project Management Plan process.
Figure 4-4 of the PMBOK® Guide - Fifth Edition shows that the inputs include the project charter, outputs from planning processes, enterprise environmental factors, and organizational process assets. The tools and techniques are expert judgment and facilitation techniques. The output is the project management plan.
The idea is that you use your expertise and that of people who have the skills, training, or specialized knowledge to help you develop the project management plan.
An expert is anyone who has specialized knowledge of the inputs. For example, this might include other project team members, consultants, or recognized experts in a certain field.
What role do you think expert judgment plays in developing a project management plan?
Options:
Option 1: This is an incorrect option. In projects with which you have a lot of experience, it's less likely you'll have to use expert judgment.
Option 2: This option is correct. Expert judgment is required to develop technical and management details that are to be included in the project management plan. Doing this accurately requires specialized knowledge.
Option 3: This is an incorrect option. Although you may require expert judgment to assist you in analysis, it is not used as a tool in measuring project performance.
Option 4: This option is correct. Expert judgment plays a role in helping you tailor project processes to meet the requirements of a particular project.
Correct answer(s):
You can apply expert judgment to any part of the project management plan.
For example, you do this to tailor processes, develop technical and management details, and determine resources and skill levels.
You also need expert judgment to define configuration management levels and specify change control procedures.
The Develop Project Management Plan process only has one output: the project management plan. But this output is critical to a project's success. It identifies the processes you'll use, how you'll control changes, and how you'll measure performance through the rest of the project's life cycle.
At its most basic, the project management plan contains a clear goal and an outline of the processes you'll use to reach it. Process-related information you need to incorporate into the plan includes the project life cycle and its phases, the methods for performing project work, and the project management processes that will achieve project goals.
Breaking a project down into the stages of its life cycle and into a number of simpler components or phases can help make the required work easier to manage. It can also help the project team map progress.
The project life cycle consists of four phases: starting the project, organizing and preparing, carrying out the work, and closing the project. Cost and staffing levels are low during the first two phases, then rise sharply and peak during carrying out the work. They drop off sharply during project close-out.
Usually, you can develop a clear sense of the appropriate life cycle and phases for a project by considering the information in the project charter and scope statement.
For example, an IT project may have five phases where each phase flows into the next phase. Phase 1 is to secure agreement with ISP, phase 2 is to order and install equipment, phase 3 is to install and test the software, phase 4 is to conduct hardware and software testing, and phase 5 is to conduct training.
Defining how project work will be performed to achieve the project's goals is another important component of the project management plan. This information helps you to plan and maintain control of each part of the project's life cycle.
Your plan should include general information, such as whether the work will be done by individuals or by project teams.
It should also contain more specific details, such as what procedures the team will follow and what tools it will use.
Consider the purpose of the project management plan. It should contain all the information you need to guide you through executing, monitoring, controlling, and closing the project.
As well as the project's life cycle and phases and how the project work will be performed, can you think of any other process-related information that should be included?
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As well as identifying processes for getting the work done, the project management plan should contain information about the project management processes and how you'll tailor these to meet your project's goals. This includes which management processes you'll use and their implementation level. It may also detail the tools and techniques that will be used for performing processes throughout the project.
For example, the tools and techniques used to create the project management plan would be expert judgment and facilitation techniques.
Tailoring management processes for a project relies on the expert judgment of a project manager who has experience with similar projects.
For example, in a simple project to deliver a service to a customer, the project manager might decide that a formal work breakdown structure isn't needed. A detailed service description document may serve better for controlling scope and making project estimates.
A cosmetics company is planning to provide its field sales force with remote access to the corporate network.
The project will involve purchasing laptops and setting up Internet accounts for each of the agents, installing a virtual private network – or VPN – server at company headquarters, and training sales agents to use the new system.
The project manager is preparing the project management plan.
This plan will include three kinds of process-related information. Select each type to find out more about it.
By including information about the phases of the project, how the work will be performed, and what project management processes will be used, the project manager ensures the project management plan contains the process-related information required to manage the project successfully.
The project manager for a construction project is preparing to create a project management plan.
Which process-related components should the manager include in the plan?
Options:
Option 1: This option is incorrect. Although procurement management is part of the project management plan, how the suppliers manage their own resources is not one of the components documented in the project plan.
Option 2: This option is correct. The plan should identify the project management processes that will be used.
Option 3: This option is incorrect. The project charter is used in developing the project management plan and is not one of the components documented in the project management plan.
Option 4: This option is correct. Defined processes for getting the required work done are one important component of the process-related information in a project management plan.
Option 5: This option is correct. Information about the project's life cycle and phases is one of the process-related components that should be documented in the project management plan.
Correct answer(s):
As well as defining the processes that will be used, a project management plan must contain information on how to maintain control of the project throughout its life cycle. It should identify how you'll perform configuration management, control project changes, and monitor and manage issues as they arise.
Select each control-related component to find out more about it.
How you control change is one aspect of a configuration management system. Change control is essential because projects seldom go precisely according to plan.
The project management plan should formalize change control procedures for initiating, approving, and implementing changes. It should outline how changes will be tracked and reported, and how their impacts will be assessed.
It should also make it clear who has the authority to approve changes. For instance, you may grant change authorizations to a few supervisory members of your project team for certain types of changes, but changes that significantly affect a project's scope or budget require a formal review process.
An important part of change control is the document control process. This defines the procedures you use to control changes to plans or deliverables that are in the form of documents.
For instance, the project management plan may specify that anyone updating a document must record its revision level, include approval initials from the project manager, and contain a table summarizing a history of previous changes.
A change control process ensures only valid, approved changes are made.
Another key component of your project management plan is information about monitoring and managing project issues. Information about several activities should be included:
For example, your plan might contain details of project evaluations that would need to be carried out to identify consistency with or deviations from plans, and how key management reviews involving the appropriate stakeholders would be conducted to address open issues and pending decisions.
The amount of detail you include in a project management plan will depend on the nature of your project, the level of experience of your project team, the level of risk involved, and the project environment.
For example, if you have expert knowledge and a good idea of a project's scope, you may rely on your expert judgment for handling most minor problems that arise.
However, if you're managing a new type of project about which little is known and that has many variables, the plan should include details of how you'll monitor, record, and manage issues every step of the way.
The project manager for an IT project is preparing to create a project management plan.
Which control-related components should the manager include in the project management plan?
Options:
Option 1: This option is correct. You should define the procedures that must be used for tracking project and product changes in the project management plan.
Option 2: This option is incorrect. Changes to the scope of a project may be unavoidable. The project management plan should specify how change will be managed, rather than completely prevented.
Option 3: This option is correct. A clearly defined change control procedure is an important component of a project management plan. It ensures only valid, approved changes will be made and that their effects will be evaluated.
Option 4: This option is incorrect. This is not one of the components documented in the project management plan. For the benefit of future projects, lessons learned are documented after a project is completed.
Option 5: This option is correct. You include information in the project management plan about measuring and monitoring ongoing project activities, identifying corrective actions that address project issues and risks, and outlining the need and techniques for communication with stakeholders.
Correct answer(s):
Performance-related information in the project management plan includes the outputs of planning processes across different Knowledge Areas. These outputs include project baselines against which the execution of your project can be measured, and the subsidiary management plans that provide guidelines for decision making and action in each Knowledge Area.
A critical aspect of maintaining control over a project involves monitoring its performance. You measure performance and analyze the data to determine whether the project is staying true to the project management plan.
Including project baselines in the plan ensures you can compare planned and actual performance. You rely on these baselines to give you an idea of how a project is progressing.
For example, the project manager of an IT project may record the project milestones and the projected and actual completion dates for each. For example, the first milestone – software version – is projected for January 5 and completed January 12.
These are several common examples of project baselines:
Select each baseline for more information about it.
What baselines would you include in a performance measurement baseline?
Options:
Option 1: This option is correct. The schedule baseline is included in the performance measurement baseline to help you plan your project's schedule. A Gantt chart is often used to represent the schedule baseline.
Option 2: This is a correct option. The cost performance baseline is the planned budget for the project. It's included in the performance measurement baseline so you can compare planned to actual costs and manage costs accordingly.
Option 3: This option is incorrect. A risk baseline is often included in a project management plan, but it isn't often included in the performance measurement baseline.
Option 4: This is an incorrect option. A product baseline, used in configuration management, contains the initial approved technical data that defines a configuration item during its life cycle. This isn't a baseline for measuring project performance.
Option 5: This option is correct. The scope baseline is composed of the project's scope statement, work breakdown structure – or WBS - and WBS dictionary. It should be included in the project management plan so the team can compare planned to actual scope and take appropriate action if the planned scope is exceeded.
Correct answer(s):
Subsidiary management plans are a large component of the project management plan. The plans are outputs from the planning processes within the different Knowledge Areas. These subsidiary plans include, but are not limited to, schedule management plan, cost management plan, quality management plan, process improvement plan, human resource plan, communications management plan, risk management plan, procurement management plan, and stakeholder management plan.
Select each subsidiary management plan for more information about it.
The type of project determines the extent of the detail contained in the subsidiary plans.
Subsidiary plans include the schedule, cost, quality, process improvement, human resource, communications, risk, procurement, and stakeholder management plans.
For example, more detailed plans would be required for a project that is relatively unfamiliar to a project manager and team. In this case, they would require more direction in terms of processes and guidelines.
Large complex projects that involve a greater degree of risk, and therefore require a greater degree of control, also need more detailed plans.
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Job Aid
Access the job aid Project Management Plan Template for an example of a project management plan.
What information from subsidiary plans should be included in a project management plan?
Options:
Option 1: This is a correct option. The project management plan should contain the configuration management plan, a subsidiary plan that specifies the processes of configuration management, configuration identification, document control, status accounting, evaluation, and release management.
Option 2: This is an incorrect option. How work will be executed can be documented in the project management plan, but it is not documented in one of the subsidiary plans.
Option 3: This is a correct option. The project management plan should contain the human resources plan, a subsidiary plan that details the roles and responsibilities of the people who will be needed to complete the project work. It also outlines how human resources requirements will be met.
Option 4: This option is correct. The project management plan should include all the subsidiary management plans from each of the Knowledge Areas. This includes the risk management plan, which documents procedures for managing risk throughout the life of the project.
Correct answer(s):
You use expert judgment to develop the project management plan, which contains process-related, change control, and performance measurement baseline information.
Process-related information includes information about the project's life cycle and its phases, processes for performing project work, and the project management processes that will be used.
Control-related information covers information on configuration management, change control processes, and how to monitor and manage project issues.
Performance-related information includes project baselines, performance measurement baselines, and subsidiary management plans. All this information is combined to form the project management plan.
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