PMBOK 5th Edition: Changes to the Planning Process Group (Part 3 of 4) 5/9

October 25, 2013 at 9:29 am | Posted in PMI, Study hints | Leave a comment
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This is the fifth installment of my PMBOK 5th Edition overview (and we’re still on the second Process Group):

Because the Planning Process Group contains 24 processes, I will be breaking this overview into four posts to cover all of its processes in smaller, more easily digestible chunks.

Part 3 (this post) will cover the following processes:

  • Plan Cost Management
  • Estimate Costs
  • Determine Budget
  • Plan Quality Management
  • Plan Human Resource Management
  • Plan Communications Management

The rest of the processes are broken down as follows:

  • Part 1 covered Develop Project Management Plan, Plan Scope Management, Collect Requirements, Define Scope, and Create WBS
  • Part 2 covered Plan Schedule Management, Define Activities, Sequence Activities, Estimate Activity Resources, Estimate Activity Durations, and Develop Schedule
  • Part 4 will cover Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Plan Procurement Management, and Plan Stakeholder Management.

Without further ado, here are the six processes of the Planning Process Group that I am covering in this post.

Introducing the Plan Cost Management process – NEW IN PMBOK 5th EDITION

The Plan Cost Management process is a new process to the Planning Process Group and the Project Cost Management Knowledge Area. This process creates the cost management plan that is used to define, validate, and control project costs.

The Plan Cost Management process has four inputs:

  • the project management plan
  • the project charter
  • enterprise environmental factors (EEFs)
  • organizational process assets (OPAs)

This process has three tools/techniques: expert judgment, analytical techniques,  and meetings. The analytical techniques include payback period, return on investment, internal rate of return, discounted cash flow, and net present value.

This process produces one output: logically enough, it is the cost management plan. The cost management plan is an input to the Define Activities, Sequence Activities, Identify Risks, and Perform Quantitative Risk Analysis processes.

Changes to the Estimate Costs process

The Estimate Costs process now has seven inputs:

  • the cost management plan – new to the PMBOK 5th Edition
  • the human resource management plan – called the human resource plan in the PMBOK 4th Edition
  • the risk register
  • the scope baseline
  • the project schedule
  • enterprise environmental factors (EEFs)
  • organizational process assets (OPAs)

This process has one new technique: group decision-making techniques. This is actually a group of techniques that include brainstorming and Delphi or nominal group techniques.

The outputs of this process are also unchanged from the PMBOK 4th Edition, and include the activity cost estimates, basis of estimates, and project document updates.

One section of this process that has been expanded a bit is the reserve analysis section. This section now contains a more comprehensive explanation of reserves, including contingency reserves (known-unknowns) and management reserves (unknown-unknowns.)

Changes to the Determine Budget process

The Determine Budget process has three new inputs. The nine inputs to this process are:

  • the cost management plan (a new input, and an output of the Plan Cost Management process)
  • the scope baseline
  • the activity cost estimates
  • basis of estimates
  • the project schedule
  • resource calendars
  • the risk register (new to this process in the PMBOK 5th Edition)
  • agreements (new to this process in the PMBOK 5th Edition)
  • organizational process assets (OPAs)

The tools and techniques used by this process have not changed.

The outputs of this process have one very small change: the cost performance baseline output from the PMBOK 4th Edition was renamed the cost baseline in the PMBOK 5th Edition.

The Cost Baseline section of this process has been expanded quite a bit to include the contingency and management reserves. A new figure (Figure 7-8) named Project Budget Components was also added to show how the budget components make up the project budget.

Changes to the Plan Quality Management process (formerly the Plan Quality process)

For this process, there was a name change in the PMBOK 5th Edition: Plan Quality was changed to Plan Quality Management.

The Plan Quality Management has two new inputs. The six inputs to this process are:

  • the project management plan (new to this process in the PMBOK 5th Edition)
  • the stakeholder register
  • the risk register
  • the requirements documentation (new to this process in the PMBOK 5th Edition)
  • enterprise environmental factors (EEFs)
  • organizational process assets (OPAs)

There are two new tools used in this process. One new tool is meetings. The other new tool, called seven basic quality tools, actually contains (as its name implies) seven tools, one of which was previously listed in the PMBOK 4th Edition:

  • Cause-and-effect diagram
  • Flowcharts
  • Checksheets
  • Pareto diagrams
  • Histograms
  • Control charts – included in PMBOK 4th Edition
  • Scatter diagrams

The section on the seven basic quality tools includes an illustration (Figure 8-7) that gives examples of the seven tools.

There are no changes to the outputs from this process.

Changes to the Plan Human Resource Management process (formerly the Develop Human Resource Plan process)

For this process, there was a name change in the PMBOK 5th Edition: Develop Human Resource Plan was changed to Plan Human Resource Management.

The Plan Human Resource Management process has one new input. The four inputs to this process are:

  • the project management plan (new to this process in the PMBOK 5th Edition)
  • activity resource requirements
  • enterprise environmental factors (EEFs)
  • organizational process assets (OPAs)

The Plan Human Resource Management process has two tools/techniques: expert judgment and meetings.

While the output of this process is the same, its name has changed from human resource plan to human resource management plan.

Changes to the Plan Communications Management process (formerly the Plan Communications process)

For this process, there was a name change in the PMBOK 5th Edition: Plan Communications was changed to Plan Communications Management.

The Plan Communications Management process has one new input. The four inputs to this process are:

  • the project management plan (new to this process in the PMBOK 5th Edition)
  • activity resource requirements
  • enterprise environmental factors (EEFs)
  • organizational process assets (OPAs)

The Plan Communications Management process has one new tool/technique: meetings. However, two of the existing tools, communication technology and communication models, have undergone some fairly extensive edits/additions. So an experienced project manager may want to read this section just to get familiar with the new content and terminology. The complete list of tools for this process is:

  • communications requirements analysis
  • communication methods
  • communication technology
  • communication models
  • meetings (new to this process in the PMBOK 5th Edition)

The outputs of this process have not changed, and remain the communications management plan and project document updates.

That covers all the processes for this post. Watch for Part 4 of the Planning Process Group in the coming days.

Drop  me a line if you have any questions! I would love to hear from you….

-Robin

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