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(Make-or-Buy Decisions)
A make-or-buy analysis results in a decision as to whether particular work can best be accomplished by the project team or needs to be purchased from outside sources.

Work package. The work defined at the lowest level of the work breakdown structure for which cost and duration are estimated and managed.

Management elements are the components that comprise the key functions or principles of general management in the organization. The general management elements are allocated within the organization according to its governance framework and the organizational structure type selected.

(Team Building)
Team building is conducting activities that enhance the team's social relations and build a collaborative and cooperative working environment. Team-building activities can vary from a five-minute agenda item in a status review meeting to an offsite, professionally facilitated event designed to improve interpersonal relationships. The objective of team-building activities is to help individual team members work together effectively. Team-building strategies are particularly valuable when team members operate from remote locations without the benefit of face-face contact. Informal communication and activities can help in building trust and establishing good working relationships. While team building is essential during the initial stages of a project, it should be a continuous process. Changes in a project environment are inevitable, and to manage them effectively, a continuous or renewed team- building effort may be applied. The project manager should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems.

(Control Scope)
Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline. The key benefit of this process is that the scope baseline is maintained throughout the project. This process is performed throughout the project.

Controlling the project scope ensures all requested changes and recommended corrective or preventive actions are processed through the Perform Integrated Change Control process. Control Scope is also used to manage the actual changes when they occur and is integrated with the other control processes. The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources is referred to as scope creep. Change is inevitable; therefore, some type of change control process is mandatory for every project.

Project Life Cycle. A project life cycle is the series of phases that a project passes through from its start to its completion. It provides the basic framework for managing the project. This basic framework applies regardless of the specific project work involved. The phases may be sequential, iterative, or overlapping. All projects can be mapped to the generic life cycle as shown in Figure 1–5.

(Project Quality Management)
The cost of quality (COQ) includes all costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework). Failure costs are often categorized into internal (found by the project team) and external (found by the customer). Failure costs are also called the cost of poor quality. Section 8.1.2.3 provides some examples to consider in each area. Organizations choose to invest in defect prevention because of the benefits over the life of the product. Because projects are temporary, decisions about the COQ over a product's life cycle are often the concern of portfolio management, program management, the PMO, or operations.

(Identify Risks: Outputs)
.1 Risk Register
The primary output from Identify Risks is the initial entry into the risk register. The risk register is a document in which the results of risk analysis and risk response planning are recorded. It contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time. The preparation of the risk register begins in the Identify Risks process with the following information, and then becomes available to other project management and risk management processes:
• List of identified risks...
• List of potential responses...

(Change Requests)
Change requests to the project management plan, its subsidiary plans, and other components such as the cost baseline, schedule baseline, and procurement management plan, may result from the Control Procurements process. Change requests are processed for review and disposition through the Perform Integrated Change Control process. Requested but unresolved changes can include direction provided by the buyer or actions taken by the seller, which the other party considers a constructive change to the contract. Because any of these constructive changes may be disputed by one party and can lead to a claim against the other party, such changes are uniquely identified and documented by project correspondence.

Project managers fulfill numerous roles within their sphere of influence. These roles reflect the project manager's capabilities and are representative of the value and contributions of the project management profession. Figure 3-1 illustrates some examples of the project manager's sphere of influence.

(Cost Management Plan)
The cost management plan is a component of the project management plan and describes how the project costs will be planned, structured, and controlled. The cost management processes and their associated tools and techniques are documented in the cost management plan.

For example, the cost management plan can establish the following:
• Units of measure. Each unit used in measurements (such as staff hours, staff days, or weeks for time measures; meters, liters, tons, kilometers, or cubic yards for quantity measures; or lump sum in currency form) is defined for each of the resources.
• Level of precision. The degree to which activity cost estimates will be rounded up or down (e.g., US$100.49 to US$100, or US$995.59 to US$1,000), based on the scope of the activities and magnitude of the project.
• Level of accuracy. The acceptable range (e.g., ±10%) used in determining realistic activity cost estimates is specified, and may include an amount for contingencies.
• Organizational procedures links...
• Control thresholds. Variance thresholds for monitoring cost performance may be specified to indicate an agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically expressed as percentage deviations from the baseline plan.
• Rules of performance measurement...
• Reporting formats...
• Process descriptions...
• Additional details...

Predictive life cycle. A form of project life cycle in which the project scope, time, and cost are determined in the early phases of the life cycle.

Incremental life cycle. An adaptive project life cycle in which the deliverable is produced through a series of iterations that successively add functionality within a predetermined time frame. The deliverable contains the necessary and sufficient capability to be considered complete only after the final iteration.

Monitor Risks is the process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. The key benefit of this process is that it enables project decisions to be based on current information about overall project risk exposure and individual project risks. This process is performed throughout the project.

(Planning Process Group)
The Planning Process Group consists of those processes performed to establish the total scope of the effort, define and refine the objectives, and develop the course of action required to attain those objectives. The Planning processes develop the project management plan and the project documents that will be used to carry out the project.

Plan Quality Management—The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements.

Leadership skills involve the ability to guide, motivate, and direct a team. These skills may include demonstrating essential capabilities such as negotiation, resilience, communication, problem solving, critical thinking, and interpersonal skills. Projects are becoming increasingly more complicated with more and more businesses executing their strategy through projects. Project management is more than just working with numbers, templates, charts, graphs, and computing systems. A common denominator in all projects is people. People can be counted, but they are not numbers.

(Definitions of Risk Probability and Impact)
The quality and credibility of the risk analysis requires that different levels of risk probability and impact be defined that are specific to the project context. General definitions of probability levels and impact levels are tailored to the individual project during the Plan Risk Management process for use in subsequent processes. Table 11-1 is an example of definitions of negative impacts that could be used in evaluating risk impacts related to four project objectives. (Similar tables may be established with a positive impact perspective.) Table 11-1 illustrates both relative and numerical (in this case, nonlinear) approaches.

Probability and Impact Matrix
A probability and impact matrix is a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs. Risks are prioritized according to their potential implications for having an effect on the project's objectives. A typical approach to prioritizing risks is to use a look-up table or a probability and impact matrix. The specific combinations of probability and impact that lead to a risk being rated as “high,” “moderate,” or “low” importance are usually set by the organization.

Risk Probability and Impact Assessment
Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities...

(Project Quality Management)
The cost of quality (COQ) includes all costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework). Failure costs are often categorized into internal (found by the project team) and external (found by the customer). Failure costs are also called the cost of poor quality. Section 8.1.2.3 provides some examples to consider in each area. Organizations choose to invest in defect prevention because of the benefits over the life of the product. Because projects are temporary, decisions about the COQ over a product's life cycle are often the concern of portfolio management, program management, the PMO, or operations.

(Project Quality Management)
Quality and grade are not the same concepts. Quality as a delivered performance or result is “the degree to which a set of inherent characteristics fulfill requirements” (ISO 9000 [18]). Grade as a design intent is a category assigned to deliverables having the same functional use but different technical characteristics. The project manager and the project management team are responsible for managing the trade-offs associated with delivering the required levels of both quality and grade. While a quality level that fails to meet quality requirements is always a problem, a low-grade product may not be a problem. For example:

• It may not be a problem if a suitable low-grade product (one with a limited number of features) is of high quality (no obvious defects). In this example, the product would be appropriate for its general purpose of use; or
• It may be a problem if a high-grade product (one with numerous features) is of low quality (many defects). In essence, a high-grade feature set would prove ineffective and/or inefficient due to low quality.

A project business case is an important document that highlights the business rationality for the project, including the objectives and the reason for the project, and helps define success at the project closure. The project business case can be used throughout the project life cycle, especially when there are situations that require a review and understanding of the business reasons for the project.