Module 2

Project Management Knowledge Areas

contents
• Project management knowledge areas:
• Project integration management.
• Project scope management.
• Project time management.
• Project cost management.
• Project quality management.
• Project resource management.
• Project communications management.
• Project risk management.
Knowledge
• Awareness or understanding especially of an act, a fact, or the truth
• Awareness that a fact or circumstance probably exists
• Knowledge Management: is the process of identifying, organizing,
storing and disseminating information within an organization
• Knowledge management is the process of capturing, storing and
sharing the knowledge and experience of employees to increase the
workforce’s overall knowledge, improve productivity and retain
critical information
Importance of knowledge Management
• To encourage a culture of collaboration and curiosity
• streamlines company knowledge while making it accessible to
everyone
• Employees can quickly access best practices, information on past
projects and other key information that informs their work
• Improve their performance and decision-making
• Teams are empowered to challenge the status quo and find
innovative solutions to unique problems
• Teams can easily share information that drives better results
Benefits
• Identification of skill gaps
• Make better informed decisions
• Maintains enterprise knowledge
• Operational efficiencies
• Increased collaboration and communication
• Data Security
What is a Project Team?
• Two or more people who share the same goals, are interdependent,
have complementary skills, and are mutually accountable to the
organization and to each member of the team
Project Team
Development Stages
• Form
• Storm
• Norm
• Perform
• Adjourn
Forming
• Become familiar with fellow team member(s)
• Establish team goals
• Provide work assignments
Storming
• Set goals
• Establish power levels
• Identify leadership roles
 Norming
• Build interpersonal relationships with team members
• Develop a common purpose for the project
• Develop standard operating procedures
Performing
• Start project work
• Stage ends when the project is completed
Adjourning
• Complete project assignments
• Team members are released from the project and reassigned
• Different emotional reactions exhibited
Different Work Personalities
Project Team
Performance Factors
Project Team Selection
• Keep teams small and manageable

• Get the right personalities

• Embrace diversity

• Reuse successful teams

• Plan ahead to get the right people

• Use your network

 Barriers to effective Team Working
• Individual members whose loyalty rests elsewhere.
• Where goals are not clarified or understood.
• Where the aims of the team are seen to be in conflict with other teams to
which the members belong.
• Members treat each other with suspicion and distrust.
• Ideas and contributions are devalued and “rubbished” by other members.
• Members are allowed to switch off and opt out.
• Cliques form for their own protection.
Handling a Dysfunctional Team

Status and Ego

Inattention
To Results
Avoidance of Low Standards
Accountability

Lack of Commitment Ambiguity

Fear of conflict Artificial Harmony

Absence of Trust Invulnerability

Types
• Tacit knowledge/Implicit knowledge
• acquired through experience, and it is intuitively understood
• Examples : language, facial recognition, or leadership skills

• Explicit knowledge: captured within various document types

such as manuals, reports, and guides, allowing organizations to
easily share knowledge across teams
Knowledge Management tools
• Document management systems: PDFs, images, and word
processing files
• Content management systems: audio and video
• Intranets: exist solely within an organization
• Data warehouses
• Process: Knowledge Creation-Knowledge Storage-
Knowledge Sharing
Knowledge Areas

• An identified area of project management defined by its knowledge

requirements and described in terms of its component processes,
practices, inputs, outputs, tools, and techniques
KNOWLEDGE AREAS
• Project integration management.
• Project scope management.
• Project time management.
• Project cost management.
• Project quality management.
• Project resource management.
• Project communications management.
• Project risk management
Project integration management.

• Defined as the framework that allows project managers to coordinate

tasks, resources, stakeholders, changes and project variables
• Project managers can use different tools to make sure there are
solid project integration management practices in place
• Project integration management helps by co-ordinating all the various
parts of a project, ensuring different team members follow one
overall plan
• It helps to keep the project running smoothly and efficiently
Benefits
• Increased accountability from team members-As team members
take on more responsibility, communication loses clutter and
becomes more focused
• Increasing efficiency: Making the most of the resources at our
disposal could help save time on tasks and improve productivity,
ensuring team members always have something to do
• Clearly defined roles with no surprises: Each team will be aware of
its main aims and objectives
Project Integration Management steps
1.Project charter- outlines the initial roles and responsibilities of all
team members and establishes goals and project deliverables
2.Scope statement- outlining everything included in the project
3.Project management plan- brings all aspects of the planning phase
together into a single document
4. Direct and manage project work-
• Managing resources
• Executing on work
• Creating changes where necessary
 Project Integration Management steps
4. Manage project knowledge: Record anything new learnt so the organization
can benefit from learnings to make efficiencies on future projects.
5. Monitor and control project work:
• Where the project is heading
• Whether it’s on schedule
• And on (or preferably under) budget
6. Perform integrated change control: Request and document any changes
through an official process and avoid ad-hoc changes to minimize scope creep
7. Close project or phase: involves reviewing various aspects of the project and
documenting findings to a reference archive
2. Project scope management

• Helps to stay on top of extra tasks that might be added during the
course of the project
• Defines and outlines all of the work that is included within a project,
• Objectives
• Tasks
• Outputs
• Deadlines
• Budgets
Steps of project scope management

1. Plan Your Scope.

• 2. Get a handle on your requirements management.
• 3. Define Your Scope
• 4. Create a Work Breakdown Structure (WBS)
• 5. Validate Your Scope
• 6. Control Your Scope
 3. Project time management.

• Project time management involves analyzing and developing a schedule and

timeline for project
• provide a buffer for things like unexpected roadblocks and under or over-
estimated project timelines
• The importance of project time management
• Time requirement for a project
• What stakeholders (internal and external) to involve
• Point of time to include their expertise
• Time planning allows you to set realistic deadlines
• Time is money, so managing it well helps boost your bottom line
• Time management can empower your teams to deliver projects on time
 Benefits of project time management

• Reduce stress with project time management

• Increase productivity with project time management
• Make fewer project mistakes with time planning
• Increase proficiency with better time management
• Create more opportunities with better time planning
• Stay on budget with strong time management
• Project time management helps you meet goals
 Project time management best practices

• The Pareto Principle.

• The Pareto Principle is also known as the 80/20 rule. This means 20% of your
time should produce 80% of your results
• ABC priority method: Every task is ranked with the letter A, B or C in order of
importance. Those assigned the letter A are worked through first, then B and
then C
• define the tasks that need focusing on first and those that can be left until later,
to ensure efficient and timely project completion
4. Project cost management

• Cost management in project management involves the planning,

estimating and overall control of budget
• Cost management processes are in place to help project teams plan
and control budgets during the project life cycle
• Cost management has been defined to encompass data collection,
cost accounting, and cost control.
• Cost accounting and cost control serve as the chief mechanisms for
identifying and maintaining control over project costs.
• Cost estimation processes create a reasonable budget baseline for
the project
Common sources of project cost
• Labor
• Materials
• Subcontractors
• Equipment and facilities
• Travel
Types of costs
• Direct Versus Indirect
• Recurring Versus Nonrecurring
• Fixed Versus Variable
• Normal Versus Expedited
Project price breakdown
Cost classification
Process of project cost management

• 1. Resource planning
• 2. Cost estimation
• 3. Cost budget.
• 4. Cost control.
• 1. Resource planning: plan, allocate, and schedule the resources needed for
each stage of a project
• 2. Cost estimation: process of approximating the costs associated with each of
the resources required for all scheduled activities
• Analogous estimating – Past projects should inform the cost estimate, here.
Analogous estimations use previous, similar projects as a reference point for
costing up the new one.
• Parametric modelling – Mathematical formulas, based on Regression Analysis
or Learning Curve models, informed potential project cost estimations.
• Bottom-up estimating – Costs are based on known quantities, such as
individual work or item cost and duration or time spent on individual tasks.
Learning curves
Problems with Cost Estimation
• Low initial estimates
• Unexpected technical difficulties
• Lack of definition
• Specification changes
• External factors
3. Cost budget.

• Base costs and any additional requirements for the project

• These budgets should account for everything from direct labor costs, to
material costs, factory costs, equipment costs, administrative costs, and
software costs
• Cost aggregation: aggregate or combine costs from an activity level to a
work package level
• Reserve analysis create a buffer or reserve to protect against cost overruns
• Historical data: use estimates from closed projects to determine the
budget of the new project
• Funding limit reconciliation: adhere to the constraints of a funding limit
4. Cost control.

• Controlling the budget means • Earned value management

being aware of the: • Forecasting
• Original budget • To-Complete Performance index
• Approved costs • Variance analysis
• Forecasted costs • Performance reviews
• Actual costs
• Committed costs
• Tools and techniques for
analysing
Benefits of cost control
• Keep track of multiple types of project cost
• Direct costs-software fees and other mission-critical overheads
• Indirect costs-electricity bill
• Fixed costs-One-off fees
• Variable costs-cost rises if a project is extended or delayed (staffing)
• Sunk costs-These are purchases that have already been made
 5. Project quality management.
• The goal of project quality management is to achieve consistency across your
projects

• Project quality management is the process of continually measuring the quality

of all activities and taking corrective action until the team achieves the desired
quality process help to
• Quality management process
• Control the cost of a project
• Establish standards
• Determine steps to achieve standards
continued
• Three quality management processes:
• Quality planning
• Quality assurance
• Quality control
• Benefits of project quality management
• Quality products
• Customer satisfaction
• Increased productivity
• Financial gains
• Removes silos
 Tools for quality management
• Affinity diagrams: generate, organize, and consolidate information concerning a
product, process, complex issue, or problem
• Process decision program charts: see the steps required for completing a
process and analyzing the impact.
• Interrelationship diagrams: Six Sigma Daily defines interrelationship diagrams
as diagrams that show cause-and-effect relationships
• Prioritization matrices: To evaluate issues based on set criteria to create a
prioritized list of items
• Network diagrams: to illustrates the scope and the critical path of the project.
• Matrix diagrams: shows the relationships between objectives, factors, and
causes that exist between rows and columns
Affinity diagrams
Process decision program charts
Interrelationship diagrams
Prioritization Matrix
Network diagrams
 6. Project resource management.
• Resource management in project management involves managing and
assigning your organization’s resources like budgets, capacity, and team
members
• Resource management gives your team the ability to work on the right work
at the right time.
• Two stages of project resource management:
• Resource planning: identify the necessary resources for the project
• Resource scheduling: assigning tasks based on the individual skills and
abilities of team
• Process for change management

• Develop a strategic breakdown structure

• Gather project requirements
• Plan for the unplanned
• Know how long things take
• Create your prioritization methodology
• Change is hard
7. Project communications management

• processes and procedures needed to ensure that information and

data throughout the life of a project are properly collected, stored,
and distributed across the project team
• Communications management process
• Plan communications-frequencey, purpose, channel
• Manage communications:
• Control communications
 8. Project risk management.

• Process of mitigating the potential negative impact unforeseen events can have
on a project's cost, time table, or other resources
Risk management occurs in 5 steps:
1.Risk planning
2.Risk identification
3.Risk analysis
4.Risk response plan
5.Risk monitoring
RISK PLANNING This includes how risks will be identified and scored, along
with how contingencies and their owners will be determined
and assigned.

RISK IDENTIFICATION project managers conduct a risk identification assessment

Risk analysis analysis of the threats and opportunities qualitative risk

analysis, and quantitative risk analysis

Risk response plan viable risk response for each threat and opportunity should
be identified as falling within the range of risk tolerance
threshold
Threats: Avoid: Mitigate: Transfer: Accept:
Opportunities: Exploit, enhance, share, accept
Risk monitoring The project manager monitors the risk register, executing on
response plans, as well as documenting subsequent threats
and opportunities as they become known throughout the
project life cycle.
9. Project procurement management

• The process of managing and optimizing a project’s budget as it

applies to the goods, services, and resources that need to complete
project
• resources include raw materials, building space, hosting, independent
contractors, and intellectual property
• procurement management process includes three phases:
procurement management planning, conducting procurements, and
controlling procurements
 10. Stakeholder project management
• Involves how project status, costs, and roadblocks are communicated to those
stakeholders to increase visibility, navigate change in project direction, and
manage expectations
Measures for effective stakeholder management
• Get the attention/interest of stake holder
• Do not assume stakeholder are aware of all info
• Keep all info simple
• Use numbers and pictures
• Always offer solution
• Specify the actions required