" a guide to the project management body of knowledge" , newton square,usa,1996.
Chapter 1
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Introduction
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The
Project Management Body of Knowledge (PMBOK®) is an inclusive term that
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describes the sum of
knowledge within the profession of project management. As
with other professions
such as law, medicine, and accounting, the body of knowl-
edge rests with the
practitioners and academics that apply and advance it. The
full project
management body of knowledge includes knowledge of proven tra-
ditional practices
that are widely applied, as well as knowledge of innovative and
advanced practices
that have seen more limited use, and includes both published
and unpublished
material.
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This chapter defines
and explains several key terms and provides an overview
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of the rest of the
document. It includes the following major sections:
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1.1 Purpose of This
Guide
1.2 What Is a Project?
1.3 What Is Project
Management?
1.4 Relationship to
Other Management Disciplines
1.5 Related Endeavors
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1.1 PURPOSE OF THIS GUIDE
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Project
management is an emerging profession. The primary purpose of this doc-
ument
is to identify and describe that subset of the PMBOK® that is generally
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accepted. Generally
accepted means that the knowledge and practices described
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are applicable to most
projects most of the time, and that there is widespread
consensus about their
value and usefulness. Generally accepted does not mean
that the knowledge and
practices described are or should be applied uniformly
on all projects; the
project management team is always responsible for deter-
mining what is
appropriate for any given project.
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This document is also
intended to provide a common lexicon within the pro-
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fession and practice
for talking and writing about project management. Project
management is a
relatively young profession, and while there is substantial com-
monality around what
is done, there is relatively little commonality in the terms
used.
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This document provides
a basic reference for anyone interested in the profes-
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sion of project management.
This includes, but is not limited to:
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Senior executives.
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Managers of project managers.
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Project managers and other project team members.
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Project customers and other project stakeholders.
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Functional managers with employees assigned to project teams.
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Educators teaching project management and related subjects.
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Consultants and other specialists in project management and related fields.
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Trainers developing project management educational programs.
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As a basic reference,
this document is neither comprehensive nor all inclusive.
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Appendix E discusses
application area extensions while Appendix F lists sources
of further information
on project management.
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This document is also
used by the Project Management Institute as a basic ref-
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erence about project
management knowledge and practices for its professional
development programs
including:
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Certification of Project Management Professionals (PMP®).
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Accreditation of educational programs in project management.
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1.2 WHAT IS A PROJECT?
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Organizations perform
work. Work generally involves either operations or proj-
ects, although the two
may overlap. Operations and projects share many charac-
teristics; for
example, they are:
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Performed by people.
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Constrained by limited resources.
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Planned, executed, and controlled.
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Projects are often
implemented as a means of achieving an organization’s
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strategic plan.
Operations and projects differ primarily in that operations are
ongoing and repetitive
while projects are temporary and unique. A project can
thus be defined in
terms of its distinctive characteristics—a project is a temporary
endeavor undertaken to
create a unique product or service. Temporary means that
every project has a
definite beginning and a definite end. Unique means that the
product or service is
different in some distinguishing way from all other products
or services. For many
organizations, projects are a means to respond to those
requests that cannot
be addressed within the organization’s normal operational
limits.
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Projects are
undertaken at all levels of the organization. They may involve a
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single person or many
thousands. Their duration ranges from a few weeks to more
than five years.
Projects may involve a single unit of one organization or may cross
organizational
boundaries, as in joint ventures and partnering. Projects are critical
to the realization of
the performing organization’s business strategy because proj-
ects are a means by
which strategy is implemented. Examples of projects include:
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Developing a new product or service.
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Effecting a change in structure, staffing, or style of an organization.
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Designing a new transportation vehicle.
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Developing or acquiring a new or modified information system.
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Constructing a building or facility.
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Building a water system for a community in a developing country.
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Running a campaign for political office.
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Implementing a new business procedure or process.
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Chapter 1—Introduction
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1.2.1 Temporary
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Temporary means that
every project has a definite beginning and a definite end.
The end is reached
when the project’s objectives have been achieved, or when
it becomes clear that
the project objectives will not or cannot be met, or the need
for the project no
longer exists and the project is terminated. Temporary does not
necessarily mean short
in duration; many projects last for several years. In every
case, however, the
duration of a project is finite; projects are not ongoing efforts.
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In addition, temporary
does not generally apply to the product or service cre-
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ated by the project.
Projects may often have intended and unintended social, eco-
nomic, and
environmental impacts that far outlast the projects themselves. Most
projects are
undertaken to create a lasting result. For example, a project to erect
a national monument
will create a result expected to last centuries. A series of
projects and/or
complementary projects in parallel may be required to achieve a
strategic objective.
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The objectives of
projects and operations are fundamentally different. The
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objective of a project
is to attain the objective and close the project. The objective
of an ongoing
nonprojectized operation is normally to sustain the business. Proj-
ects are fundamentally
different because the project ceases when its declared
objectives have been
attained, while nonproject undertakings adopt a new set of
objectives and
continue to work.
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The temporary nature
of projects may apply to other aspects of the endeavor
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as well:
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The opportunity or market window is usually temporary—most projects have
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a limited time frame
in which to produce their product or service.
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The project team, as a team, seldom outlives the project—most projects are
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performed by a team
created for the sole purpose of performing the project,
and the team is
disbanded when the project is complete.
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1.2.2 Unique Product, Service, or Result
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Projects involve doing
something that has not been done before and which is,
therefore, unique. A product or service may be unique
even if the category to
which it belongs is
large. For example, many thousands of office buildings have
been developed, but
each individual facility is unique—different owner, different
design, different
location, different contractors, and so on. The presence of repet-
itive elements does
not change the fundamental uniqueness of the project work.
For example:
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A project to develop a new commercial airliner may require multiple proto-
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types.
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A project to bring a new drug to market may require thousands of doses of the
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drug to support
clinical trials.
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A real estate development project may include hundreds of individual units.
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A development project (e.g., water and sanitation) may be implemented in
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five geographic areas.
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1.2.3 Progressive
Elaboration
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Progressive
elaboration is a characteristic of projects that integrates the concepts
of temporary and
unique. Because the product of each project is unique, the char-
acteristics that
distinguish the product or service must be progressively elaborated.
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Progressively means
“proceeding in steps; continuing steadily by increments,”
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Chapter 1—Introduction
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while elaborated means
“worked out with care and detail; developed thoroughly”
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(1). These
distinguishing characteristics will be broadly defined early in the
project, and will be
made more explicit and detailed as the project team develops
a better and more
complete understanding of the product.
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Progressive
elaboration of product characteristics must be carefully coordinated
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with proper project
scope definition, particularly if the project is performed under
contract. When properly
defined, the scope of the project—the work to be done—
should remain constant
even as the product characteristics are progressively elab-
orated. The
relationship between product scope and project scope is discussed
further in the
introduction to Chapter 5.
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The following two
examples illustrate progressive elaboration in two different
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application areas.
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Example 1. Development
of a chemical processing plant begins with process
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engineering to define
the characteristics of the process. These characteristics are
used to design the
major processing units. This information becomes the basis for
engineering design,
which defines both the detail plant layout and the mechanical
characteristics of the
process units and ancillary facilities. All of these result in
design drawings that
are elaborated to produce fabrication drawings (construction
isometrics). During
construction, interpretations and adaptations are made as
needed and subject to
proper approval. This further elaboration of the character-
istics is captured by
as-built drawings. During test and turnover, further elaboration
of the characteristics
is often made in the form of final operating adjustments.
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Example 2. The product
of an economic development project may initially be
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defined as: “Improve
the quality of life of the lowest income residents of commu-
nity X.” As the
project proceeds, the products may be described more specifically
as, for example:
“Provide access to food and water to 500 low income residents in
community X.” The next
round of progressive elaboration might focus exclusively
on increasing
agriculture production and marketing, with provision of water
deemed to be secondary
priority to be initiated once the agriculture component is
well under way.
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1.3 WHAT IS PROJECT MANAGEMENT?
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Project management is
the application of knowledge, skills, tools, and techniques
to project activities
to meet project requirements. Project management is accom-
plished through the
use of the processes such as: initiating, planning, executing,
controlling, and
closing. The project team manages the work of the projects, and
the work typically
involves:
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Competing demands for: scope, time, cost, risk, and quality.
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Stakeholders with differing needs and expectations.
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Identified requirements.
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It is important to
note that many of the processes within project management
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are iterative in
nature. This is in part due to the existence of and the necessity for
progressive
elaboration in a project throughout the project life cycle; i.e., the
more you know about
your project, the better you are able to manage it.
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The term project
management is sometimes used to describe an organizational
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approach to the
management of ongoing operations. This approach, more prop-
erly called management
by projects, treats many aspects of ongoing operations
as projects to apply
project management techniques to them. Although an
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Chapter 1—Introduction
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understanding of
project management is critical to an organization that is man-
aging by projects, a
detailed discussion of the approach itself is outside the scope
of this document.
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Knowledge about
project management can be organized in many ways. This
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document has two major
sections and twelve chapters, as described below.
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1.3.1 The Project Management Framework
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Section I, The Project
Management Framework, provides a basic structure for
understanding project
management.
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Chapter 1, Introduction,
defines key terms and provides an overview of the
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rest of the document.
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Chapter 2, The Project
Management Context, describes the environment in
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which projects
operate. The project management team must understand this
broader
context—managing the day-to-day activities of the project is necessary for
success but not
sufficient.
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Chapter 3, Project
Management Processes, describes a generalized view of
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how the various
project management processes commonly interact. Understanding
these interactions is
essential to understanding the material presented in Chapters
4 through 12.
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1.3.2 The
Project Management Knowledge Areas
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Section II, The
Project Management Knowledge Areas, describes project man-
agement knowledge and
practice in terms of their component processes. These
processes have been
organized into nine knowledge areas, as described below
and as illustrated in
Figure 1-1.
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Chapter 4, Project
Integration Management, describes the processes required
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to ensure that the
various elements of the project are properly coordinated. It con-
sists of project plan
development, project plan execution, and integrated change
control.
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Chapter 5, Project
Scope Management, describes the processes required to
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ensure that the
project includes all the work required, and only the work
required, to complete
the project successfully. It consists of initiation, scope plan-
ning, scope
definition, scope verification, and scope change control.
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Chapter 6, Project
Time Management, describes the processes required to
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ensure timely
completion of the project. It consists of activity definition, activity
sequencing, activity
duration estimating, schedule development, and schedule
control.
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Chapter 7, Project
Cost Management, describes the processes required to
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ensure that the
project is completed within the approved budget. It consists of
resource planning,
cost estimating, cost budgeting, and cost control.
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Chapter 8, Project
Quality Management, describes the processes required to
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ensure that the
project will satisfy the needs for which it was undertaken. It con-
sists of quality
planning, quality assurance, and quality control.
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Chapter 9, Project
Human Resource Management, describes the processes
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required to make the
most effective use of the people involved with the project.
It consists of
organizational planning, staff acquisition, and team development.
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Chapter 10, Project
Communications Management, describes the processes
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required to ensure
timely and appropriate generation, collection, dissemination,
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Chapter 1—Introduction
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PROJECT
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MANAGEMENT
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4.
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Project Integration
Management
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5.
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Project Scope
Management
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6.
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Project Time
Management
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5.1
5.2
5.3
5.4
5.5
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6.1
6.2
6.3
6.4
6.5
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4.1
4.2
4.3
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Initiation
Scope
Planning
Scope
Definition
Scope
Verification
Scope
Change Control
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Activity Definition
Activity
Sequencing
Activity
Duration Estimating
Schedule
Development
Schedule
Control
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Project
Plan Development
Project
Plan Execution
Integrated
Change Control
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7.
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Project Cost
Management
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8.
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Project Quality
Management
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9.
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Project Human
Resource
Management
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7.1
7.2
7.3
7.4
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8.1
8.2
8.3
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9.1
9.2
9.3
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Resource
Planning
Cost
Estimating
Cost
Budgeting
Cost
Control
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Quality Planning
Quality
Assurance
Quality
Control
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Organizational Planning
Staff
Acquisition
Team
Development
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Project Communications
Management
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Project Risk
Management
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Project Procurement
Management
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10.
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11.
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12.
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Risk
Management Planning
Risk
Identification
Qualitative
Risk Analysis
Quantitative
Risk Analysis
Risk
Response Planning
Risk
Monitoring and Control
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11.1
11.2
11.3
11.4
11.5
11.6
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Procurement
Planning
Solicitation
Planning
Solicitation
Source
Selection
Contract
Administration
Contract
Closeout
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12.1
12.2
12.3
12.4
12.5
12.6
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Communications
Planning
Information
Distribution
Performance
Reporting
Administrative
Closure
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10.1
10.2
10.3
10.4
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Figure 1–1. Overview of Project Management
Knowledge Areas and Project Management Processes
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storage, and ultimate
disposition of project information. It consists of commu-
nications planning,
information distribution, performance reporting, and admin-
istrative closure.
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Chapter 11, Project
Risk Management, describes the processes concerned
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with identifying,
analyzing, and responding to project risk. It consists of risk man-
agement planning, risk
identification, qualitative risk analysis, quantitative risk
analysis, risk
response planning, and risk monitoring and control.
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Chapter 12, Project
Procurement Management, describes the processes
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required to acquire
goods and services from outside the performing organization.
It consists of
procurement planning, solicitation planning, solicitation, source selec-
tion, contract
administration, and contract closeout.
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A
Guide to the Project Management Body of Knowledge (PMBOK® Guide) 2000 Edition
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Chapter 1—Introduction
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The Project
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Management
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Body
of Knowledge
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Generally
Accepted
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Project
Management
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Knowledge
and Practice
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General
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Application
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Management
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Area
Knowledge
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Knowledge
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and
Practice
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and
Practice
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This
figure is a conceptual view of these relationships.
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The
overlaps shown are not proportional.
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Figure
1–2. Relationship of Project Management to Other Management Disciplines
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1.4 REL ATIONSHIP TO OTHER MANAGEMENT
DISCIPLINES
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Much
of the knowledge needed to manage projects is unique to project manage-
ment
(e.g., critical path analysis and work breakdown structures). However, the
PMBOK®
does overlap other management disciplines, as illustrated in Figure 1-2.
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General management
encompasses planning, organizing, staffing, executing, and
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controlling the
operations of an ongoing enterprise. General management also
includes supporting
disciplines such as law, strategic planning, logistics, and human
resources management.
The PMBOK® overlaps or modifies general management
in many areas—organizational
behavior, financial forecasting, and planning tech-
niques, to name just a
few. Section 2.4 provides a more detailed discussion of gen-
eral management.
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Application areas are
categories of projects that have common elements signif-
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icant in such
projects, but are not needed or present in all projects. Application
areas are usually
defined in terms of:
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Functional departments and supporting disciplines, such as legal, production
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and inventory
management, marketing, logistics and personnel.
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Technical elements, such as software development, pharmaceuticals, water
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and sanitation
engineering, or construction engineering.
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Management specializations, such as government contracting, community
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development, or new
product development.
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Industry groups, such as automotive, chemicals, agriculture, or financial
services.
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Appendix E includes a
more detailed discussion of project management appli-
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cation areas.
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9
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Chapter 1—Introduction
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1.5
REL ATED ENDEAVORS
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Certain types of
endeavors are closely related to projects. There is often a hier-
archy of strategic
plan, program, project, and subproject, in which a program
consisting of several
associated projects will contribute to the achievement of a
strategic plan. These
related undertakings are described below.
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Programs. A program is
a group of projects managed in a coordinated way to
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obtain benefits not
available from managing them individually (2). Many pro-
grams also include
elements of ongoing operations. For example:
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The “XYZ airplane program” includes both the project or projects to design
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and develop the
aircraft, as well as the ongoing manufacturing and support of
that craft in the
field.
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Many electronics firms have program managers who are responsible for both
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individual product
releases (projects) and the coordination of multiple releases
over time (an ongoing
operation).
Programs may also
involve a series of repetitive or cyclical undert
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example:
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Utilities often speak of an annual “construction program,” a regular, ongoing
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operation that
involves many projects.
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Many nonprofit organizations have a “fundraising program,” an ongoing effort
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to obtain financial
support that often involves a series of discrete projects,
such as a membership
drive or an auction.
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Publishing a newspaper or magazine is also a program—the periodical itself
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is an ongoing effort,
but each individual issue is a project.
In some application
areas, program management and project management are
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treated as synonyms;
in others, project management is a subset of program man-
agement. This
diversity of meaning makes it imperative that any discussion of
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program management
versus project management be preceded by agreement on
a clear and consistent
definition of each term.
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Subprojects. Projects
are frequently divided into more manageable compo-
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nents or subprojects.
Subprojects are often contracted to an external enterprise or
to another functional
unit in the performing organization. Examples include:
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Subprojects based on the project process, such as a single phase.
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Subprojects according to human resource skill requirements, such as the
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installation of
plumbing or electrical fixtures on a construction project.
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Subprojects involving technology, such as automated testing of computer pro-
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grams on a software
development project.
Subprojects are
typically referred to as projects and managed as such.
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Project Portfolio
Management. Project portfolio management refers to the
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selection and support
of projects or program investments. These investments in
projects and programs
are guided by the organization’s strategic plan and avail-
able resources.
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