6. Our Course Objectives
• Enable you pass the PMP® Exam
• Enable you become proficient on projects
• Offer you greater career mobility
Sheryl Thompson, PMP
7. Introduction
Your Name and Professional Background
Your knowledge in Project Management
Basic
Intermediate
Advance
If you were an animal, what animal will you be
and why…?
8. The PMBOK Guide
“The PMBOK Guide is a
recognized standard for the
Project Management
Profession–”
What is a Standard?
A standard is a formal document that
describes established/standardized norms,
methods, processes, and practices.
16. PROJECT TRIGGERS
Why do weundertake Projects?
Projectsoftenariseas a resultofaBusinessNeed,reflectedinthefollowing:
1. Strategic Opportunity
2. In response to market demand
3. Legal requirements
4. Competition
5. Technologicaladvancement
6. Stakeholders request
17. Creation of an Infrastructure:Roads, Bridges, Buildings, Office
Complex, Expansions, Masts.
Developing a newproduct or service:Machinery, Technology,
Speed Banking,TiGo Cash, Mentor, Ceremonies
Developing a New Model of an existingproduct or service:
Corolla 2017, ipad5, SamsungGalaxy S7, Mentor 7
Creating a Document – A Research finding, book, constitution,
proposals, business plans
Some Examples of Projects
18. The End of a Project is
reached:
When project objectives have been achieved.
When its objectives will not or cannot be met.
When the need for a project no longer exists.
20. Factors That Influence Project Delivery
EnterpriseEnvironmental Factors(EEFs)
These refer to internal and external environmental factors
that are beyond the direct control of the project team.
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21. Examples of EEFs:
• Government/Industry Standards
• ExistingInfrastructure
• ExistingHuman Resources
• Market Conditions(E.g. Price, Inflation, Exchangerate)
• Legal, economic or political climate
• The skillsandorganizational culture of the project
environment – The People
22. Factors That Influence Project Delivery
Organisational ProcessAssets (OPAs)
These are documentary assets of an organization or from
previous projects that can be used to influencea current
project’s success.
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27. Operations
This refers to the ongoing function of an
organization that are repetitive in nature
and produce recurrent results.
Operations work support the business
environment where projects are executed
In shorts, operations are the Day-to-Day
activities of an organization that define
regular roles.
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32. Project Management Office
A project managementoffice(PMO)is an organizationalbody or
entityassigned various responsibilities related to the centralized
and coordinated managementof thoseprojects under its
domain.
The specificform, function,and structure of a PMO is
dependent upon theneeds of the organization thatit supports.
33. Project Management Context
Project managementexists in a broader context:
• Project Management
• Program Management
• PortfolioManagement
• Strategic Management/Objectives
35. Program Management
• A Programis a group of related projects managedin a
coordinated way to obtain benefits and control not available
from managingthemindividually
37. Portfolio Management
• A Portfoliois a collection of programs, projects, operations
and other works of an organization thatare grouped and
managedtogetherto meetstrategicobjectives.
40. A ProjectStakeholder is one whose interest may be
positively or negatively impacted bythe project
and/orcan impactthe project positivelyor
negatively.
42. Project Manager
The person appointed by theperforming organisation to see
to the accomplishmentof theproject’s objectives.
Qualitiesof a Project Manager:
• Knowledge
• Performance
• Interpersonal/Soft Skill
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43. SomeTechniques of the Project Manager
Team Involvement/Meetings
Expert Judgment:Involving (asking) experts to offer
knowledge/expertise to support the project
FacilitationTechniques
Analytical Techniques
Interpersonal Skills/Soft Skills
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44. PROJECT LIFE CYCLE
This refers to a collection of the four (4) stages orphases that onehas to go
through whenundertaking any project.
Irrespective ofthe size orcomplexity of a project, it couldbemappedto the
following structure :
Initiation Stage (starting the project)
Planning Stage (Organising and preparing)
Execution Stage (carrying out the project work)
Closure Stage (Closing/completing the project)
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47. Cost of Change
Over Project Life Cycle
Cost of change or the Cost of correcting errors.
• Is lowest at the commencement of the project when not much has been
committed.
• Increases significantly as the project progresses
48. Stakeholders’ Influence
Over Project Life Cycle
Because Cost of change increases as the project progresses
• Stakeholders’ Influence is highest during the initial stages.
• And reduces significantly as cost of change increases
57. Tools To Be Used in SelectingViableProjects
Net Present Value (NPV)
Internal Rate of Return (IRR)
Return On Investment (ROI)
ProfitabilityIndex (PI)
Benefit toCost Ratio(BCR)
PaybackPeriod (PP)
Opportunity Cost (OC)
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58. Net Present Value (NPV)
CRITERIA
• Project is profitable if NPV is Positive
• Project breaks even if NPV is Zero
• Project is a loss if NPV is Negative
• The bigger the NPV the Better
Total Value of Future Amounts in
Today’s Terms Less Cost.
Evaluation
1. Mining: -$1.8m
2. Real Estates: $1.2m
3. Financial Serv. $1.6m
Formula Used
Net Present Value
PV = FV
(1+r)n
59. Internal Rate of Return (IRR)
CRITERIA
• Project is profitable if IRR is Greater
than Cost of Capital or Hurdle Rate
•The bigger the IRR the Better
The Rate at which an Investment
earns money for itself Evaluation
1. Mining: -$1.8m
2. Real Estates: $1.2m
3. Financial Serv. $1.6m
Formula Used
Internal Rate of Return
60. Return on Investment (ROI)
CRITERIA
• Pursue Project if ROI is higher
• For several Projects choose the one
with the highest ROI
•The bigger the ROI the Better
The Ratio of Net Earnings to the
Value of Investment Evaluation
1. Mining: 1.6
2. Real Estates: 0.8
3. Financial Serv. 1.4
Formula Used
Return on Investment
61. Profitability Index (PI)
CRITERIA
• Pursue Project if PI is higher
• Reject Project if PI is less than 1.
• PI of 1 means project breaks even.
The Ratio of cash flows to Investment
Evaluation
1. Mining: 1
2. Real Estates: 0.8
3. Financial Serv. 1.4
Formula Used
Profitability Index
62. Benefit-to-Cost Ratio (BCR)
CRITERIA
• Pursue Project if BCR is higher
• Reject Project if BCR is less than 1.
• BCR of 1 means project breaks even.
Ratio of project’s Benefits to Project
Cost. Evaluation
1. Mining: 1
2. Real Estates: 0.8
3. Financial Serv. 1.4
Formula Used
Benefit-to-Cost Ratio
63. Payback Period (PP)
CRITERIA
• The shorter the payback period, the
better.
Time within which project investment
cost is recovered. Evaluation
1. Mining: 6years
2. Real Estates: 8years
3. Financial Serv. 3years
Formula Used
Payback Period
64. Opportunity Cost (OC)
CRITERIA
• Your opportunity cost should be
smaller than your selected option
• For any number of options, your
opportunity cost is the cost of the next
best option
The Cost of the Alternative Forgone in
order to pursue the selected option. Evaluation
1. Mining: $6m
2. Real Estates: $8
3. Financial Serv. $7m
Formula Used
Opportunity Cost