Day 5 - Learn the basics of project management in this 6 day course taught by Joe DiFalco, PMP, PMI-ACP, CSPO, Systems Engineer. This course covers the 5 process groups and the 47 project management processes grouped into 10 knowledge areas: Project Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resources Management, Project Communications Management, Project Risk Management, Project Procurement Management and Project Stakeholder Management.

1. Project Management
Review of the Project Management Body
of Knowledge (PMBOK) 5th edition
{
Joe DiFalco
PMP, PMI-ACP, CSPO, Systems Engineer
Owner CVShout™
Profile: CVShout.com/joedifalco
Contact: joe@cvshout.com

2. Day 5 Agenda

Day 4 review

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Budget
Earned value management
Follow the Lifecycle – build a schedule
Knowledge Areas


Ethics topics
Stakeholder topics

3. From PMBOK
5th Edition
Note: the numbers in
the chart refer to the
chapter in the PMBOK

4. Review Cost Management Plan
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•
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Responsibilities
Approach
Measurement
Reporting
Variance response
Change control

5. Estimate Costs
Reserve analysis:
• Account for cost uncertainty
• Could be a fixed %, fixed number or some other calculation
• CONTINGENCY reserve
• Allocated for identified risks or “known-unknowns”
• Clearly documented
• Part of the cost baseline
• MANAGEMENT reserve
• Reserved for unforeseen work or “unknown-unknowns”
• NOT part of the cost baseline but ARE part of the budget and funding requirements
• Management reserves are added to cost baseline as they are approved/used

6. Determine Budget
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•
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Aggregation of the estimated costs of individual activities (work packages)
Authorized cost baseline
Use this baseline to monitor and control project performance
Project budget includes ALL of the funds authorized to execute the project
• Cost baseline is the time-phased budget excluding MANAGEMENT reserves

7. Project Budget Components
un-Known un-Knowns
This is the level of granularity to track measurement
Known un-Knowns

8. Project Budget Components
Contingency vs
Management reserves
Reserves

9. Project Budget Components
Funds required to start
Projected disbursement points
Anticipated

10. From PMBOK
5th Edition
Note: the numbers in
the chart refer to the
chapter in the PMBOK

11. Control Costs
• Monitor project status
• In relation to the value of work accomplished
• Update project costs
• Manage cost baseline
• Recognize variance – take corrective action
From PMBOK 5th Edition

12. Control Costs
From PMBOK 5th Edition

13. Control Costs
Question: what actions would you expect to take to manage costs?
• Follow the management plan
• Utilize OPAs that are available
• Manage change –
• Prevent unnecessary change
• Influence factors that cause cost to rise
• Communicate approved change requests
Exam tips:
• Control means measure
• Measurement reveals variance – variance is analyzed
• Cost management plan tells you what to do to control cost
From PMBOK 5th Edition

14. Earned Value Management (EVM)
• Assess project performance and progress
• Scope
• Schedule
• Resource measurements
• Progress rules
• 50/50 – activity is 50% when started
• 20/80 – activity is 20% when started
• 0/100 – activity is 100% when completed
• Integrates
• Scope baseline
• Cost baseline
• Schedule baseline
• Note: the Performance Measurement
Baseline (PMB) is the combination of these
From PMBOK 5th Edition

15. Planned Value (PV)
The approved budget for the work scheduled to be completed by a
specified date.
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•
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Scheduled work
Work for an activity (work breakdown component)
Defines the physical work that SHOULD have been accomplished
Total of all PV can be referred to as:
• Total PV is also: budget at completion (BAC)
From PMBOK 5th Edition

16. Earned Value (EV)
The approved budget for the work actually completed by the specified
date
• Measure of work performed
• Based on PV (authorized budget)
• Percent complete of a project
• EV cannot be greater than PV
• Monitored:
• Incrementally – for current status
• Cumulatively – performance trends
From PMBOK 5th Edition

17. Actual Cost (AC)
• Realized cost incurred
• Cost of work performed during a time period
• Specific to the work that the EV measured
• Corresponds to what was planned – PV
• Has no upper limit – it is what it is
From PMBOK 5th Edition

18. Earned Value
From PMBOK 5th Edition

19. Formulas to memorize
Schedule Variance (SV)
From PMBOK 5th Edition

20. Formulas to memorize
Cost Variance (CV)
From PMBOK 5th Edition

21. Formulas to memorize
Schedule Performance Index(SPI)
From PMBOK 5th Edition

22. Formulas to memorize
Cost Performance Index(CPI)
From PMBOK 5th Edition

23. Formulas to memorize
Estimate at Completion(EAC)
From PMBOK 5th Edition

24. Formulas to memorize
Estimate to Complete (ETC)
From PMBOK 5th Edition

25. Formulas to memorize
To Complete Performance Index(TCPI)
From PMBOK 5th Edition

26. Formulas to memorize
To Complete Performance Index(TCPI)
From PMBOK 5th Edition

27. Formulas to memorize
Variance at Completion(VAC)
From PMBOK 5th Edition

28. Earned Value Measurement
From PMBOK 5th Edition

29. Earned Value Measurement
From PMBOK 5th Edition

30. Earned Value Measurement
From PMBOK 5th Edition

31. Earned Value Measurement
From PMBOK 5th Edition

32. Develop Schedule
From PMBOK 5th Edition

33. Ethics
From PMBOK 5th Edition

34. Stakeholder Management
From PMBOK 5th Edition

35. Stakeholder Management
From PMBOK 5th Edition

36. Stakeholder Management
From PMBOK 5th Edition

37. Identify Stakeholders
From PMBOK 5th Edition

38. Identify Stakeholders

39. Stakeholder Analysis
From PMBOK 5th Edition

40. Identify Stakeholders
From PMBOK 5th Edition

41. Plan Stakeholder Management
From PMBOK 5th Edition

42. Plan Stakeholder Management
From PMBOK 5th Edition

43. Plan Stakeholder Management
From PMBOK 5th Edition

44. Manage Stakeholder Engagement
From PMBOK 5th Edition

45. Manage Stakeholder Engagement

46. Manage Stakeholder Engagement
From PMBOK 5th Edition

47. Manage Stakeholder Engagement

48. Control Stakeholder Engagement
From PMBOK 5th Edition