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Title: PMP Exam Prep training materials for trainers based on 6th PMBOK guide

Project Management Professional (PMP) Exam
  • (Based on Guide to PMBOK 6th Edition)
  • Developed by 4 of our PMP Trainers and Experts
  • Covered the latest PMBOK edition 6
  • 2018

(No Transcript)
PMP Materials in the Course
  • (Based on Guide to PMBOK 6th Edition)

Chapter One
What is a Project ?
A Project is a temporary endeavor undertaken to
create a unique, product, service, or result.
Temporary endeavor with a beginning and an end,
not an on-going effort Progressive Elaboration.
What is a Project?
  • Fulfillment of project objectives may produce one
    or more of the following deliverables
  • A unique product that can be either a component
    of another item, an enhancement or correction to
    an item, or a new end item in itself (e.g., the
    correction of a defect in an end item)
  • A unique service or a capability to perform a
    service (e.g., a business function that supports
    or distribution)

What is a Project?
  • A unique result, such as an outcome or document
    (e.g., research project that develops knowledge
    that can be used to determine whether a trend
    exists or new process will benefit society) and
  • A unique combination of one or more products,
    services, or results (e.g., a software
    application, its associated documentation, and
    help desk services).

Projects Drive Change
  • Projects drive change in organizations. From a
    business perspective, a project is aimed at
    moving an organization from one state to another
    state in order to achieve a specific objective

Projects Enable Business Value Creation
  • value is the net quantifiable benefit derived
    from a business endeavor. The benefit may be
    tangible, intangible, or both

Examples of tangible elements include
Monetary assets
Stockholder equity
Market share
Examples of intangible elements include
Brand recognition
Public benefit
Strategic alignment
Project Initiation Context
Importance of Project Management
The Importance of Project Management
Example The Website Creation Project
Consider a project authorized by a firm to create
an intranet website that would display its
employee related information.
The outcome of the project is the website, and
the duration will depend on the complexity and
size of the work involved. The project will come
to an end when the website is posted on the
server and is ready for use by appropriate users.
Example Operations in a Petrochemical Industry
One of the major petrochemical companies has set
up a new refinery to meet its increasing market
demand. The company plans to break-even in three
years by achieving the desired volume of output
from its new plant.
Once the new plant is set up, the operations to
be carried out in the new branch include daily
production, routine maintenance of the plant,
wages and salary credits to employees, purchase
of raw materials, grievance handling, logistics,
and supply of finished products to the market.
Relationship of Project, Program, Portfolio, and
Operations Management
  • Program and project management focus doing
    programs and projects the right way and
    Portfolio management focuses doing the right

Programs and Portfolio
  • A program is defined as a group of related
    projects, subprograms, and program activities
    managed in a coordinated way to obtain benefits
    not available from managing them individually.
  • Project may or may not be part of a program but a
    program will always have projects
  • Project within a program are related through the
    common outcome or collective capability.
  • A portfolio refers to projects, programs,
    subportfolios, and operations managed as a group
    to achieve strategic objectives, The projects or
    programs of the portfolio may not necessarily be
    interdependent or directly related.

Project, Program, Portfolio
Project E
Comparative Overview of Portfolios, Programs, and
Portfolios, Programs, and Projects
  • Portfolio management aligns portfolios with
    organizational strategies by selecting the right
    programs or projects, prioritizing the work, and
    providing the needed resources.
  • Program management harmonizes its program
    components and controls interdependencies in
    order to realize specified benefits.
  • Project management enables the achievement of
    organizational goals and objectives

Organizational Project Management
Interrelationship of PMBOK Guide Key Components
in Projects
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Chapter 2
The Environment in Which Projects Operate
Project Influences
EEFS Internal to The organization
EEFS External to The Organization
Organizational Process Assets
  • Processes, policies, and procedures
  • Organizational knowledge bases.

Organizational Knowledge Repositories
  • Configuration management knowledge
  • Financial data
  • Historical information and lessons learned
  • Issue and defect management data
  • Project files from previous projects

Organizational Governance Frameworks
Factors to consider in selecting an
organizational structure
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Chapter 3
The Role of The Project Manager
Project Managers Sphere of Influence
  • Project Manager is the person responsible for
    accomplishing the project objectives.
  • Characteristics
  • Knowledge Project Management Knowledge (Not
    Technical Knowledge).
  • Performance.
  • Personal Decision Maker, Integrity and Honesty,
    leadership, Negotiation, communication.

The Industry Trends
  • Product and technology development
  • New and changing market niches
  • Standards (e.g., project management, quality
    management, information security management)
  • Technical support tools
  • Economic forces that impact the immediate
  • Influences affecting the project management
  • Process improvement and sustainability strategies

Project Manager Competences
Technical Project Management Skills
  • Focus on the critical technical project
    management elements for each project they manage.
  • Tailor both traditional and agile tools,
    techniques, and methods for each project.
  • Make time to plan thoroughly and prioritize
  • Manage project elements, including, but not
    limited to, schedule, cost, resources, and risks

Strategic and Business Management Skills
  • Explain to others the essential business aspects
    of a project
  • Work with the project sponsor, team, and subject
    matter experts to develop an appropriate project
    delivery strategy
  • Implement that strategy in a way that maximizes
    the business value of the project.

Leadership Skills
  • Dealing with People
  • Qualities and SKILLS of a Leader (Being a
    visionary, Being optimistic and positive, Being
    collaborative, Managing relationships and
    conflict, Communicating
  • Politics, Power, and Getting Things done

Comparison of Leadership and Management
Leadership Styles
  • Personality refers to the individual differences
    in characteristic patterns of thinking, feeling,
    and behaving.
  • characteristics or traits
  • Authentic
  • Courteous
  • Creative
  • Cultural
  • Emotional
  • Intellectual
  • Managerial
  • Political
  • Service-oriented
  • Social
  • Systemic

Integration and Complexity
  • Three dimensions of complexity
  • System behavior. The interdependencies of
    components and systems.
  • human behavior. The interplay between diverse
    individuals and groups.
  • Ambiguity. Uncertainty of emerging issues and
    lack of understanding or confusion

Chapter 4
Project Integration Management
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Interpersonal And Team Skills
Monitor Control Project Work
  • The process of tracking, reviewing, and reporting
    the progress to meet the performance objectives
    defined in the project management plan.
  • Control includes determining corrective or
    preventive actions or re-planning and following
    up on action plans.

Monitor and Control Project Work - Inputs
  • Performance Reports
  • Reports should be prepared by the project team
    detailing activities, accomplishments,
    milestones, identified issues and problems.
    Performance reports can be used to report the key
    information, but not limited to
  • Current status.
  • Significant accomplishments for the period.
  • Scheduled activities.
  • Forecasts and
  • Issues.

Perform Integrated Change Control
  • Process of reviewing all change requests
    approving changes and managing changes to
    deliverables, organizational process assets, and
    the project management plan and communicating
    their disposition.Changes may be requested by any
    stakeholder involved with the project.
  • It reviews all requests for changes or
    modifications to project documents, deliverables,
    baselines, or the project management plan and
    approves or rejects the changes.

Perform Integrated Change Control
  • It should be written formally and entered to
    change control and configuration control systems.
  • Project manager has the authority to approve or
    reject the change requests, when required, it
    will be the responsibilities of Change Control
    Board (CCB).

A Change Control Board (CCB)
  • It is an internal unit or department charged with
    not only monitoring, controlling, coordinating,
    and implementing changes to all elements of
    project work, but also with accepting or
    rejecting changes that have been requested by
  • Normally, the CCB operates closely with the
    projects sponsor, customers, and other key
    stakeholders. The responsibilities of the CCB
    will have been documented, and agreed to by the
    stakeholders, customers, and project team.

Perform Integrated Change Control Tools
  • Change Control Meetings
  • A change control board is responsible for meeting
    and reviewing the change requests and approving
    or rejecting those change requests .
  • All change control board decisions are
    documented and communicated to the stakeholders
    for information and follow up actions.
  • The status of all the changes , approved or not,
    will be updated in the change request log as part
    of the project document updates.

Change Log
  • A change log is used to document changes that
    occur during a project. These changes and their
    impact to the project in terms of time, cost, and
    risk, are communicated to the appropriate

Manage Project Knowledge
  • Manage Project Knowledge is the process of using
    existing knowledge and creating new knowledge to
    achieve the projects objectives and contribute
    to organizational learning
  • The lessons learned register can include the
    category and description of the situation. The
    lessons learned register may also include the
    impact, recommendations, and proposed actions
    associated with the situation. The lessons
    learned register may record challenges, problems,
    realized risks and opportunities, or other
    content as appropriate

Close Project or a Phase
  • It is the process of finalizing all activities
    across all of the project management process
    groups to formally complete the project or phase
  • This phase includes the procedures to investigate
    and document the reasons for actions taken if a
    project is terminated before completion.

Chapter 5
Project Scope Management
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Control Scope
  • It is the process of monitoring the status of
    project and product scope and managing changes to
    the scope baseline
  • Uncontrolled scope changes result in scope creep.

Chapter 6
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Project Schedule Management
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Estimate Activity Durations Tools Techniques
Estimate Activity Durations Tools Techniques
  • Agile Release Planning
  • Agile release planning provides a high-level
    summary timeline of the release schedule
    (typically 3 to 6 months) based on the product
    roadmap and the product vision for the products

Develop Schedule OutputsProject Schedule
  • Can be represented by
  • Bar charts
  • Milestone charts.
  • Project schedule network diagrams

Bar (Gantt Chart)
Milestone Chart
Develop Schedule OutputsProject Calendars
  • working days and shifts that are available for
    scheduled activities. It distinguishes time
    periods in days or parts of days that are
    available to complete scheduled activities from
    time periods that are not available for work.

Develop Schedule-Outputs
  • Schedule Network Analysis
  • Schedule network analysis is a technique that
    generates the project schedule.
  • It employs a schedule model and various
    analytical techniques, such as critical path
    method, critical chain method, what-if analysis,
    and resource levelling to calculate the early and
    late start and finish dates for the uncompleted
    portions of project activities.

Develop Schedule OutputsProject Calendars
  • project calendar identifies working days and
    shifts that are available for scheduled

Sample of Questions
  • Q1. The estimate for a task is O 3 days, P 7
    days, M 4 days. What is the standard deviation
    of the task?
  • A. 5/6 of a day.
  • B. 2/3 of a day.
  • C. 1 ½ days.
  • D. 5 2/3 days.

  • Q2. You are the project manager for a new project
    and have figured out the following dependencies
  • Task 1 can start immediately and has an estimated
    duration of 3 weeks
  • Task 2 can start after Task1 is completed and has
    an estimated duration of 3 weeks
  • Task 3 can start after Task 1 is completed and
    has an estimated duration of 6 weeks
  • Task 4 can start after Task 2 is completed and
    has an estimated duration of 8 weeks
  • Task 5 can start after task 4 is completed and
    after Task 3 is completed . This task takes 4
  • What is the duration of the critical path?
  • A. 18.5 weeks -B. 19 weeks -C. 20 weeks -D.
    18 weeks

  • Q3. A project has three critical paths. Which of
    the following BEST describes how this affects the
  • A. It makes it easier to manage.
  • B. It increases the project risk.
  • C. It requires more people.
  • D. It makes it more expensive.

  • Q4. You are taking over a project and determine
    the following Task B has an early finish of day
    3, a late finish of day 6, and an early start of
    day 2. Task L is being done by a hard-to-get
    resource. The CPI is 1.1 and the SPI is 0.8.
    Based on the information above, what would you be
    most concerned about?
  • A. Float.
  • B. Resources.
  • C. Cost.
  • D. Schedule.

  • You are the project manager for a project with
    the following network diagram. Studying the
    diagram, which path is the critical path?
  • A. ABCD
  • B. EBCD
  • C. EFH
  • D. EGH

Control Schedule
  • The process of monitoring the status of the
    project to update the project schedule and
    managing changes to the schedule baseline

Chapter 7
Project Cost Management
(No Transcript)
Project Cost Management
  • Costing is different from Pricing. Costing
    includes the monetary resource required to
    complete the project and pricing normally include
    a profit margin.
  • Costing is based on WBS and controlled by Control
  • Costing shall be ideally done by a team who
    perform the work

Padding is not a good practice
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Tools and TechniquesEarned Value Management (EVM)
  • Actual Cost (AC)
  • It indicates the actual money that has been
    spent for work that has been completed.
  • Example Work package XX have a 4 stages and each
    stage will take one week to complete with 500
    estimated cost per stage. End of 2nd week 3
    stages were completed and contractor has spend
    1700. What is the PV, EV AC
  • PV on 2nd Week Total value of planned work to
    be completed on second week in monetary terms
    (500 X 2 1000)
  • EV on 2nd week Estimated value of work
    completed (500 X 3 1500)
  • AC on 2nd Week Actual cost spend of work
    already completed (1700)

Tools and TechniquesEarned Value Management (EVM)
  • SV (Schedule Variance) EV-PV (Difference
    between estimated value of work completed and
    estimated value of work planned)
  • CV (Cost Variance) EV-AC (Difference between
    estimated value of work
  • completed and actual cost of work completed)
  • SPI (Schedule Performance Index) EV/PV
  • CPI (Cost Performance Index) EV/AC
  • Tips
  • EV comes first in all equations.
  • For Schedule related equation there is PV and AC
    for cost related

Control Costs- Tools and Techniques
  • Forecasting
  • Using the earned value analysis, team can now
    forecast the project performance.
  • Estimate at completion (EAC) may differ from
    Budget at Completion (BAC)
  • Estimate to complete (ETC) is the estimate of
    remaining work. Now Estimate at completion AC

Control Costs- Tools and Techniques
  • EAC can be calculated by
  • There will be no variation for remaining work and
    will progress as planned before ETC BAC EV
    that means EAC AC ETC (BAC-EV)
  • The changes project experience will continue to
    occur for remaining work.
  • EAC BAC/CPI (Only cost efficiency is
    considered now)
  • Here team considers that remaining work will be
    completed at the same efficiency rate considering
    cost and schedule performance

Earned Value Graphical Representation
Earned Value Management (EVM)
Terms and formulas Definition Example
Earned Value (EV) As of today, what is the estimated value of the work actually accomplished? 100 k
Actual cost (AC) As of today, what is the actual cost incurred for the work accomplished? 200k
Planned Value (PV) As of today, what is the estimated value of work planned to be done? 300 k
Cost Variance (CV)EV-AC Negative is over budget Positive is under budget 100k-200k-100
Schedule Variance (SV)EV-PV Negative is behind schedule Positive is ahead schedule 100k-300k-200
Cost Performance Index(CPI)EV/AC We are getting .....worth of work out of every 1 spent. Are funds being used efficiently? 100k/200k.5
Schedule Performance Index (SPI)EV/PV We are(only) progressing atgtgtgt percent of the rate originally planed 100k/300k.33
Revised total duration Baseline duration/schedule performance index 4/.3312 months
Earned Value Technique
Terms and Formulas Definition
Budget at Completion (BAC) How much did we budget for the total project effort?
Estimate at Completion (EAC)BAC/CPI What do we currently expect the total project cost(a forecast)?
Estimate to Complete (ETC)EAC-AC From this point on, how much MORE do we expect it to cost to finish the project (a forecast)
Variance at Completion (VAC)BAC-EAC As of today how much over or under budget do we expect to be at the end of the project?
EAC is an important forecasting value
  • You have a project to build a box. The box is six
    sided, each side is to take one day to build and
    is budgeted for 1000 per side. The sides are
    planned to be completed one after the other.
    Today is the end of day three.
  • Using the following project status chart,
  • Describe your interpretation based on the

Task Progress Cost spent
Side 1 100 1,200
Side 2 100 1,000
Side 3 75 750
Side 4 50 500
Side 5 0 0
Side 6 0 0
Project is below/over budget? Project is late/a
head schedule? How much more money we need?
  • Over budget, getting .88 dollar we spent
  • Ahead schedule, progressing 101 of the rate
  • Probably will spend 6818 at the end
  • Need 3368 to complete
  • Over budget at the end for about 818

Parameter Calculation Result
PV 100010001000 3000
EV (100 x 1000)(100 x x1000) (755 x x1000) 50 x1000) 3025
AC 12001000750500 3450
BAC 6 x 1000 6000
CV 3025/3450 -425
CPI 3025/3450 .88
SV 3025/3000 25
SPI 3025/3000 1.01
EAC 6000/.88 6818.18
ETC 6818.18-3450 3368.18
VAC 6000-6818.18 -818.18
Control Costs- Tools and Techniques
  • To Complete Performance Index (TCPI)
  • TCPI predicts the efficiency that must be
    achieved for remaining work to complete the
    remaining works with available budget.
  • TCPI Work Remaining/Funds remaining (Budget
    At Completion Earned Value ) / (BAC Actual
    cost) (BAC-EV)/(BAC-AC).

Control Costs- Tools and Techniques
  • To Complete Performance Index (TCPI)
  • If it is obvious that earlier estimated budget at
    completion can not be achieved, Project manager
    develops a forecasted estimate at completion
    (EAC). Once approved through integrative change
    control process, EAC will superseded BAC and cost
    baselines will be revised.
  • Now TCPI (BAC-EV)/(EAC-AC)
  • Now TCPI Work Remaining/Funds remaining as per
    forecasted EAC (Budget At Completion Earned
    Value ) / (EAC Actual cost).

Control Costs- Tools and Techniques
  • To Complete Performance Index (TCPI)

Control Costs- Tools and Techniques
  • TCPI (based on original estimate or forecasted
    budget) will set a new baseline for performance
    efficiency to be achieved to complete the works
    with funds remaining.
  • If CPI falls below TCPI baseline, remaining works
    will not be completed with available funds. All
    future works shall be accelerated to bring CPI
    within TCPI range.

Control Costs- Tools and Techniques
  • TCPI value gt1 means in future, more work must be
    achieved per every dollar spent in the future
    compared to actual work achieved previously per
  • TCPI value lt1 means in future lesser work need to
    be achieved for every dollar spent compared to
    past performance.

Control Costs- Tools and Techniques
  • Examples
  • A project has the following Earned value data
    assessed AC 4,000,000 CV -500,000 SPI
    1.12 BAC 9,650,000 What is the Earned value of
    the project? What is the CPI? What is the TCPI?
  • In your project, there have been several changes
    in the cost and schedule estimates and the
    original estimating assumptions are no longer
    valid. What is the Estimate at Complete for your
    project? BAC 300,000, AC
  • 100,000, EV 150,000, CPI 1.2, ETC

Control Costs- Tools and Techniques
Cost Formulas Calculation Cost Formulas Calculation
Cost Performance Index (CPI) Estimate to Complete (ETC) Estimate at Completion (EAC) using new estimate Estimate at Completion (EAC) using remaining budget Estimate at Completion (EAC) using CPI To-Complete Performance Index (TCPI) based on BAC To-Complete Performance Index (TCPI) based on EAC To-Schedule Performance Index (TSPI) CPI EV / AC ETC BAC - EV or (BAC - EV) / CPI EAC AC ETC EAC AC BAC - EV EAC AC ( (BAC - EV) / CPI) or EAC BAC / CPI TCPI (BAC - EV) / (BAC - AC) TCPI (BAC - EV) / (EAC - AC) (BAC - EV) / (BAC - PV)
Chapter 8
Project Quality Management
Project Quality Management
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Chapter 9
Project Resource Management
Plan Resource Management
  • Is the process of identifying and documenting
    project roles, responsibilities, required skills,
    reporting relationships, and creating a staffing
    management plan

Project Resource Management Overview
Plan Resource Management
  • Plan Resource Management is the process of
    defining how to estimate, acquire, manage, and
    use team and physical resources.

Plan Resource Management Tools and Techniques
  • Data Representation
  • hierarchical charts
  • Work breakdown structures (WBS).
  • Organizational breakdown structure (OBS).
  • un Resource breakdown structure
  • Assignment Matrix
  • Text-oriented formats

Plan Resource Management Tools and Techniques
  • Organizational Theory
  • Organizational theory provides information
    regarding the way in which people, teams, and
    organizational units behave. Effective use of
    common techniques identified in organizational
    theory can shorten the amount of time, cost, and
    effort needed to create the Plan Resource
    Management process outputs and improve planning

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Chapter 10
Project Communications Management
Project Communications Management
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(No Transcript)
Chapter 11
Project Risk Management
Project Risk Management
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(No Transcript)
Chapter 12
Project Procurement Management
Project Procurement Management
Project Procurement Management
  • Plan Procurement Management is the process of
    documenting project procurement decisions,
    specifying the approach, and identifying
    potential sellers.
  • PM must be involved in the creation of the

Legal Contractual Relationships
  1. Purchase Order.
  2. Fixed Price Contract-lump sum.
  3. Cost-reimbursable Contract.
  4. Time and Material (TM) or Unit Price

Legal Contractual Relationships
  • Contract Types
  • Contract is a mutually binding legal agreement
    that obligates the seller to provide the
    specified products, services or results, and
    obligates the buyer to compensate the seller.
  • The contract may includes the following An
    offer, Acceptance, Pricing, roles and
    responsibilities, penalties, warranty.
  • Purchase Order Contract to purchase 30 linear
    meters of wood at 40 per meter.

Project Procurement Management Tools
Techniques Contract Types
  • Fixed Price Contract-lump sum setting a total
    fixed price for a defined product or services
  • Firm Fixed Price Contracts (FFP )
  • Under this type of contract the buyer must
    precisely specify the product or services to be
    procured, and any changes to the procurement
    specification can increase the costs to the buyer.

Project Procurement Management Tools
Techniques Contract Types
  • Fixed Price Contract-lump sum setting a total
    fixed price for a defined product or services
  • Fixed Price Incentive Fee Contracts (FPIF) some
    flexibility in deviation from performance with
    financial incentives with price ceiling, Contract
    1,100,000. For every month early the project is
    finished, an additional 10,000 is paid to the
  • Fixed Price Economic Price Adjustment (FPEPA) It
    is a fixed-price contract, but with a special
    provision allowing for pre defined final
    adjustments to the contract price due to changed
    conditions, such as inflation changes, or cost
    increases (or decreases) for specific commodities.

  • PO 1K per 1 metric ton.
  • FP Contract 1M.
  • FPIF contract 1M for every month added

Project Procurement Management Tools
  1. Cost-reimbursable Contract The seller's cost are
    reimbursed, plus an additional amount.(seller

Project Procurement Management Tools
  • Cost plus Fixed Fee (CPFF) In this type, the
    buyer pays all costs, but the fee (or profit) is
    fixed at a specific amount.
  • Contract Cost Fee of 200,000 fee is not
    changing due to seller performance.
  • Cost Plus Incentive Fee (CPIF) the seller is
    reimbursed for all costs and receives a
    predetermined incentive fee based on achieving
    certain performance objectives set in advance in
    the contract.

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Exercise Contract Calculation
  • In this cost incentive fee contract, the cost is
    estimated at 210,000 and the fee at 25,000.
    the project is over and the buyer has agreed that
    the costs were, in fact, 200,000. because the
    sellers costs came in lower than the estimated
    costs, the seller shares in the savings 80
    percent to the buyer and 20 percent to the
    seller. Calculate the final fee and final price.

Target cost 210,000
Target fee 25,000
Target price 235,000
Sharing ratio 80/20
Actual cost 200,000
Final fee 201,000-200,00010,000 10,000 x 202,000 25,000 (target fee) 2,00027,000
Final price 200,00027,000227,000
(No Transcript)
Chapter 13
Project Stakeholder Management
Project Stakeholder Management
Identify Stakeholders
  • Identify Stakeholders is the process of
    identifying project stakeholders regularly and
    analyzing and documenting relevant information
    regarding their interests, involvement,
    interdependencies, influence, and potential
    impact on project success.
  • It is critical for project success to identify
    the stakeholders early in the project or phase
    and to analyze their levels of interest, their
    individual expectations, as well as their
    importance and influence.

Identify Stakeholders Tools and Techniques
  • Stakeholder Analysis is a technique of
    systematically gathering and analyzing
    quantitative and qualitative information to
    determine whose interests should be taken into
    account throughout the project.
  • Stakeholders stakes elements
  • Interest
  • Rights (legal or moral rights).
  • Ownership.
  • Knowledge.
  • Contribution

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Chapter 14
Professional Responsibility
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Exercise - Quiz
Chapter 15
Passing the Exam
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