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Everything You Need to Know: The 7 Processes of PRINCE2

PRINCE2® is considered the abbreviation of Projects IN Controlled Environments and it is a structured project management process as well as the practitioner certification programme. It lays stress on dividing projects into controllable and manageable stages. There are many countries from all across the globe that adopt PRINCE2® and those countries include Western European countries, the UK, and Australia. The training of PRINCE2® is obtainable in various languages and it was developed in the form of a United Kingdom government standard intended for information systems projects. In the year 2013, the ownership of rights was transferred from HM Cabinet Office to AXELOS Ltd. which is considered a joint venture by Capita and the Cabinet Office to PRINCE2® with 49 percent and 51 percent stakes respectively.PRINCE2® MethodologyPRINCE2® methodology segregates the whole projects into various stages and every stage is managed in a separate manner. With  PRINCE2® methodology, 7 processes are involved:1. Starting up a ProjectThe primary process includes activities that are necessary to make sure that it is a worthwhile and viable project. The activities involved in this process are the following ones:Appointment of the project and executive managerAppoint and design the project management teamCapture previous lessonsPrepare an outline business caseChoose the project approach and accumulate the project briefPlan the initiation stage2. Directing a ProjectThis process includes the project board. In this process, authorization is given to manage a project, to proceed continuously, and provide ad hoc direction when needed. The activities of directing a Project process include the following:Authorize initiationAuthorize the projectAuthorize stage or an execution planProvide ad hoc directionAuthorize project closure3. Initiating a ProjectInitiating a Project procedure is aimed towards the Project Manager, who performs the maximum job in this process. In the other project management methods, this process is termed as planning. It is a time-consuming part of project management and the most important one too. The failure and success of a project are related directly to the planning level that was done. The activities in this step include the following:Agree on tailoring needsPreparing the risk management approachPreparing the change control approachPreparing the quality management approachPreparing communication management approachSet project controlsCreate a project planFormulate the Benefits Management ApproachAssemble the PID or project initiation documentationThe project manager has the responsibility to assemble the PID. It comprises of the following items:Project definitionProject approachBusiness caseTeam structureRole descriptionsQuality management approachChange control approachRisk management approachCommunication management approachProject planProject controls4. Controlling a stageThis process includes making sure that the management stage stays within tolerance. It starts when a stage is authorized to move forward by a project board and its activities are carried out by a project manager.Authorizing a work packageReview status of work packageGet completed work packagesReview management stage statusReport highlightsAssess and capture issues and risksEscalate risks and issuesTake corrective action5. Managing Product DeliveryThis product focuses on the delivery of the end service or product of a project. It is performed by the team manager primarily, the technical manager, who transfers the reports and the project to the project manager. Three major activities in this process are as follows:Accepting a work packagePerform a work packageSend a work package6. Managing State BoundariesAs management stage approaches, this procedure comes in. It is needed so that a project board may review the success of the present stage and approve the succeeding stage. At state boundaries, PID is updated and most project documents are confirmed and reviewed. The activities performed by the project manager are as follows:Planning the succeeding management stageUpdating the project planUpdating a business caseReport Management stageCreate an exception plan7. Closing a ProjectA project is a provisional endeavor. It has a beginning and an end. The project closure jobs are very small and visible to senior management; therefore, they have a vast role in project success. The five activities in Closing a Project process are as follows:Prepare planned closurePrepare premature closureHand over productsEvaluate the projectRecommend project closureThe Project Manager recommends project closure for the Project Board’s approval.PRINCE2® Process ModelYou will get articles on PRINCE2® processes in Portuguese, Spanish, Russian, Italian, Dutch, French, and Polish. A process is recognized as an organized set of activities and their job is accomplishing a particular objective. There are many activities of PRINCE2® meant for Starting Up a project or running a project. It groups them into processes.Actually, PRINCE2® is considered a process-based approach which is highly beneficial for project management, and there are mainly seven processes that will guide a person through the project. Every project does provide a set of activities and these activities aid in directing, managing, and delivering a project. You will get them all in the manual of PRINCE2®.                                                     The seven processes of PRINCE2® are:SU (Starting Up a project)IP (Initiating a Project)DP (Directing a Project)CS (Controlling a Stage)MP (Managing Product Delivery)SB (Managing a Stage Boundary)CP (Closing a Project)Summary of the ProcessesThere are 7 management processes in PRINCE2® and each process has the job of one of the management levels, as Project Manager, Team Manager, or Project Board.Directing a Project Process – It has the liability of the Project Board. Directing a Project Process runs from the beginning of the project and continues to live till the last. Starting Up a Project method happens prior to the starting of the project. During Directing a Project procedure, the Project Board does authorize project stages besides managing the general project through the utilization of Management by Exception.The Starting Up a Project process – This is considered the liability of both the Executive and the Project Manager. It is viewed as the very first process and it is recognized as the Pre-Project process as it happens prior to the starting of the project. This is because the project doesn’t start before the Initiation Stage. In this process, the project’s reasons are recognized, the project management team gets assigned, and a Stage Plan gets created for running the Initiation Stage.Initiating a Project Process – This process is the procedure which defines the product quality, Project Product, project timeline, costs, the commitment of resources, risk analysis, and assembles the Project Initiation Documentation (PID). It is also the process where the creation of Project Plan happens and the Business Case meant for the project gets decided. All this information is accumulated into the PID.Controlling a Stage Process – In the process of Controlling a Stage, the Project Manager does the majority of the work. He watches the work closely, takes remedial action, has a communication with the stakeholders, and observes alterations. Every action can get repeated many numbers of times by the Project Manager until the stage becomes complete.The Managing Product Delivery Process – In the process of Managing Product Delivery, the planned components are formed and it becomes the liability of the Team Manager. Here, the compounds are created, the Work Packages are implemented, and work gets accomplished. The Team Manager does receive the Work Packages that are a list of jobs from the Project Manager. After this, he delivers the finished and tested Work Packages to the Project Manager again.The Managing a Stage Boundary Process – This process has got a couple of primary functions. The first one is reporting on the current stage’s performance and the second one is planning the subsequent stage. Hence, the Project Board is liberal to check how good the stage has finished its work against the Stage Plan. So, it can be said that the job of this process is evaluating the stage and preparing the plan meant for the subsequent stage.The Closing a Project Process – This process does cover the job of wrapping up the project. Additionally, this process is considered the concluding portion of the final and last stage. PRINCE2® recommends many activities for preparing the project for the finish, like Lessons Learned Report, Acceptance Record, and End Project Report. The productivity of this process would be fundamental for the confirmation of closure of the Project Board because the Project Board remains responsible for closing a project in place of the Project Manager.PRINCE2® Stage GatesPRINCE2® uses the Stage Gate Model for controlling the progress of a project. It means the work that is to be delivered is broken down into manageable sections each of which is easily understandable. PRINCE2® name these sections as Management Stages. At the end of every Stage or Section, three important checks are done without fail:Look Back- to make sure the work of the present stage is done or nothing is left behind.Look at the Big Picture- review the Project’s viability in a business case, check the project plan’s schedule, and make sure all risks are properly documented and are under control.Look forward- provide a Stage Plan for covering the work in the upcoming stage.The stage is a PhaseProjects should be broken down into phases to make them manageable. In fact, it is a very simple and known principle in any project management. The management stages of PRINCE2® are discrete and sequential sections of a project. The stages are chronological and most cases interdependent. One stage happens only after the earlier one is completed. Stages may involve the same work or different work. There is no rule as to when a stage should end and when the next one begins; however, the stages must be sufficiently small to be manageable and large enough so that micromanaging the resources invested and people involved becomes easy.Choice of StagesStage boundaries are selected based on project phases if they exist. The completion of project deliverables and project life cycle events can make good stage boundaries. The complexity and size of a Project is an important factor in several stages. There are complex and large projects that have more stages and they have more control over project work.All projects basically have two stages: an initiation stage and an execution stage. In the first stage, the project planning activities are done, i.e. the blueprint is developed and in the second stage, project execution happens.Process Model ColorColor plays a vital role in the PRINCE2® process model. There are several processes included in the model and some processes are applied more than another process. For a better understanding of the relationships among different processes, colors are used in the PRINCE2® process model. Following four colors items are found in the whole process model:Blue items: Items with blue shades signify these items are used or executed once in the whole project.Green items: Items with green shades are used once in each stage.Orange items: Items with orange shades can be executed several times in a stage.Dark red items: Items with dark red shades signify it can be implemented several times in a stage.

Everything You Need to Know: The 7 Processes of PRINCE2

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Everything You Need to Know: The 7 Processes of PRINCE2

PRINCE2® is considered the abbreviation of Projects IN Controlled Environments and it is a structured project management process as well as the practitioner certification programme. It lays stress on dividing projects into controllable and manageable stages. There are many countries from all across the globe that adopt PRINCE2® and those countries include Western European countries, the UK, and Australia. The training of PRINCE2® is obtainable in various languages and it was developed in the form of a United Kingdom government standard intended for information systems projects. In the year 2013, the ownership of rights was transferred from HM Cabinet Office to AXELOS Ltd. which is considered a joint venture by Capita and the Cabinet Office to PRINCE2® with 49 percent and 51 percent stakes respectively.

PRINCE2® Methodology

PRINCE2® methodology segregates the whole projects into various stages and every stage is managed in a separate manner. 

With  PRINCE2® methodology, 7 processes are involved:

Steps in PRINCE2 Methodology

1. Starting up a Project

The primary process includes activities that are necessary to make sure that it is a worthwhile and viable project. The activities involved in this process are the following ones:

  • Appointment of the project and executive manager
  • Appoint and design the project management team
  • Capture previous lessons
  • Prepare an outline business case
  • Choose the project approach and accumulate the project brief
  • Plan the initiation stage

2. Directing a Project

This process includes the project board. In this process, authorization is given to manage a project, to proceed continuously, and provide ad hoc direction when needed. The activities of directing a Project process include the following:

  • Authorize initiation
  • Authorize the project
  • Authorize stage or an execution plan
  • Provide ad hoc direction
  • Authorize project closure

3. Initiating a Project

Initiating a Project procedure is aimed towards the Project Manager, who performs the maximum job in this process. In the other project management methods, this process is termed as planning. It is a time-consuming part of project management and the most important one too. The failure and success of a project are related directly to the planning level that was done. The activities in this step include the following:

  • Agree on tailoring needs
  • Preparing the risk management approach
  • Preparing the change control approach
  • Preparing the quality management approach
  • Preparing communication management approach
  • Set project controls
  • Create a project plan
  • Formulate the Benefits Management Approach
  • Assemble the PID or project initiation documentation

The project manager has the responsibility to assemble the PID. It comprises of the following items:

  • Project definition
  • Project approach
  • Business case
  • Team structure
  • Role descriptions
  • Quality management approach
  • Change control approach
  • Risk management approach
  • Communication management approach
  • Project plan
  • Project controls

4. Controlling a stage

This process includes making sure that the management stage stays within tolerance. It starts when a stage is authorized to move forward by a project board and its activities are carried out by a project manager.

  • Authorizing a work package
  • Review status of work package
  • Get completed work packages
  • Review management stage status
  • Report highlights
  • Assess and capture issues and risks
  • Escalate risks and issues
  • Take corrective action

5. Managing Product Delivery

This product focuses on the delivery of the end service or product of a project. It is performed by the team manager primarily, the technical manager, who transfers the reports and the project to the project manager. Three major activities in this process are as follows:

  • Accepting a work package
  • Perform a work package
  • Send a work package

6. Managing State Boundaries

As management stage approaches, this procedure comes in. It is needed so that a project board may review the success of the present stage and approve the succeeding stage. At state boundaries, PID is updated and most project documents are confirmed and reviewed. The activities performed by the project manager are as follows:

  • Planning the succeeding management stage
  • Updating the project plan
  • Updating a business case
  • Report Management stage
  • Create an exception plan

7. Closing a Project

A project is a provisional endeavor. It has a beginning and an end. The project closure jobs are very small and visible to senior management; therefore, they have a vast role in project success. The five activities in Closing a Project process are as follows:

  • Prepare planned closure
  • Prepare premature closure
  • Hand over products
  • Evaluate the project
  • Recommend project closure

The Project Manager recommends project closure for the Project Board’s approval.

PRINCE2® Process Model

You will get articles on PRINCE2® processes in Portuguese, Spanish, Russian, Italian, Dutch, French, and Polish. A process is recognized as an organized set of activities and their job is accomplishing a particular objective. There are many activities of PRINCE2® meant for Starting Up a project or running a project. It groups them into processes.

Actually, PRINCE2® is considered a process-based approach which is highly beneficial for project management, and there are mainly seven processes that will guide a person through the project. Every project does provide a set of activities and these activities aid in directing, managing, and delivering a project. You will get them all in the manual of PRINCE2®.                                                     

The seven processes of PRINCE2® are:

  1. SU (Starting Up a project)
  2. IP (Initiating a Project)
  3. DP (Directing a Project)
  4. CS (Controlling a Stage)
  5. MP (Managing Product Delivery)
  6. SB (Managing a Stage Boundary)
  7. CP (Closing a Project)

Summary of the Processes

There are 7 management processes in PRINCE2® and each process has the job of one of the management levels, as Project Manager, Team Manager, or Project Board.

  1. Directing a Project Process – It has the liability of the Project Board. Directing a Project Process runs from the beginning of the project and continues to live till the last. Starting Up a Project method happens prior to the starting of the project. During Directing a Project procedure, the Project Board does authorize project stages besides managing the general project through the utilization of Management by Exception.
  2. The Starting Up a Project process – This is considered the liability of both the Executive and the Project Manager. It is viewed as the very first process and it is recognized as the Pre-Project process as it happens prior to the starting of the project. This is because the project doesn’t start before the Initiation Stage. In this process, the project’s reasons are recognized, the project management team gets assigned, and a Stage Plan gets created for running the Initiation Stage.
  3. Initiating a Project Process – This process is the procedure which defines the product quality, Project Product, project timeline, costs, the commitment of resources, risk analysis, and assembles the Project Initiation Documentation (PID). It is also the process where the creation of Project Plan happens and the Business Case meant for the project gets decided. All this information is accumulated into the PID.
  4. Controlling a Stage Process – In the process of Controlling a Stage, the Project Manager does the majority of the work. He watches the work closely, takes remedial action, has a communication with the stakeholders, and observes alterations. Every action can get repeated many numbers of times by the Project Manager until the stage becomes complete.
  5. The Managing Product Delivery Process – In the process of Managing Product Delivery, the planned components are formed and it becomes the liability of the Team Manager. Here, the compounds are created, the Work Packages are implemented, and work gets accomplished. The Team Manager does receive the Work Packages that are a list of jobs from the Project Manager. After this, he delivers the finished and tested Work Packages to the Project Manager again.
  6. The Managing a Stage Boundary Process – This process has got a couple of primary functions. The first one is reporting on the current stage’s performance and the second one is planning the subsequent stage. Hence, the Project Board is liberal to check how good the stage has finished its work against the Stage Plan. So, it can be said that the job of this process is evaluating the stage and preparing the plan meant for the subsequent stage.
  7. The Closing a Project Process – This process does cover the job of wrapping up the project. Additionally, this process is considered the concluding portion of the final and last stage. PRINCE2® recommends many activities for preparing the project for the finish, like Lessons Learned Report, Acceptance Record, and End Project Report. The productivity of this process would be fundamental for the confirmation of closure of the Project Board because the Project Board remains responsible for closing a project in place of the Project Manager.

PRINCE2® Stage GatesPRINCE2® Stage Gates

PRINCE2® uses the Stage Gate Model for controlling the progress of a project. It means the work that is to be delivered is broken down into manageable sections each of which is easily understandable. PRINCE2® name these sections as Management Stages. At the end of every Stage or Section, three important checks are done without fail:

  • Look Back- to make sure the work of the present stage is done or nothing is left behind.
  • Look at the Big Picture- review the Project’s viability in a business case, check the project plan’s schedule, and make sure all risks are properly documented and are under control.
  • Look forward- provide a Stage Plan for covering the work in the upcoming stage.

The stage is a Phase

Projects should be broken down into phases to make them manageable. In fact, it is a very simple and known principle in any project management. The management stages of PRINCE2® are discrete and sequential sections of a project. The stages are chronological and most cases interdependent. One stage happens only after the earlier one is completed. Stages may involve the same work or different work. There is no rule as to when a stage should end and when the next one begins; however, the stages must be sufficiently small to be manageable and large enough so that micromanaging the resources invested and people involved becomes easy.

Choice of Stages

Stage boundaries are selected based on project phases if they exist. The completion of project deliverables and project life cycle events can make good stage boundaries. The complexity and size of a Project is an important factor in several stages. There are complex and large projects that have more stages and they have more control over project work.

All projects basically have two stages: an initiation stage and an execution stage. In the first stage, the project planning activities are done, i.e. the blueprint is developed and in the second stage, project execution happens.

Process Model Color

Color plays a vital role in the PRINCE2® process model. There are several processes included in the model and some processes are applied more than another process. For a better understanding of the relationships among different processes, colors are used in the PRINCE2® process model. Following four colors items are found in the whole process model:

PRINCE2® Process Model Color

  • Blue items: Items with blue shades signify these items are used or executed once in the whole project.
  • Green items: Items with green shades are used once in each stage.
  • Orange items: Items with orange shades can be executed several times in a stage.
  • Dark red items: Items with dark red shades signify it can be implemented several times in a stage.
KnowledgeHut

KnowledgeHut

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KnowledgeHut is an outcome-focused global ed-tech company. We help organizations and professionals unlock excellence through skills development. We offer training solutions under the people and process, data science, full-stack development, cybersecurity, future technologies and digital transformation verticals.
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This shows the importance of risk management and the emphasis organizations place on qualified risk managers.Benefits of getting PMI-RMP certifiedApply risk management practices for greater competitive advantageIdentify and measure risks in project development and implementationQuantify and create risk response strategies to deliver products that meet stakeholder expectationsUse a proactive and focused approach to preventing problems, rather than dealing with them once they occurIncrease your visibility within the companyAim for greater career growthEarn salaries upto $115,931Top companies that hire PMI-RMP professionalsWhere to take training for certification: Aspirants must train from an Authorized Training Partner (ATP) of PMI.Who should take the training for certificationRisk ManagersRisk Management ProfessionalsProject ManagersProject SponsorsProgram ManagersProject EngineersProject CoordinatorsPlanning ManagersPlanning EngineersProject Cost Control EngineersQuantity SurveyorsCivil EngineersIT Project ManagersProduct ManagersProject AnalystsBusiness AnalystsProject LeadersProject Co-ordinatorsTeam LeadersTeam MembersEligibilityTo apply for the PMI-RMP® Credential, you need to possess a:Secondary degree (high school diploma, associate’s degree, or the global equivalent)4,500 hours of project risk management experience40 hours of project risk management educationORFour-year degree (bachelor’s degree or the global equivalent)3,000 hours of project risk management experience30 hours of project risk management educationExam FormatNo of questions: 170 questions Type: Multiple ChoiceTime: 3.5 hoursDuration to get certifiedApplication fee: For PMI membership: USD $ 129 plus USD $10 for application fee.Course fee for certification: INR12999, USD 999Exam fee for certificationIn U.S.Member: $520Non-member: $670Retake fee for certificationMember: $335Non-member: $4354. PRINCE2® Foundation/PRINCE2 PractitionerThe PRINCE2 (PRojects IN Controlled Environments) Foundation and Practitioner credentials are sought-after offerings from AXELOS. There are a number of credentials offered under PRINCE2 that make it suitable for a wider audience. Axelos keeps the PRINCE2 curriculum regularly updated with the latest industry advances, which makes it suitable for new age project management and intensive, demanding projects.  PRINCE2 Demand: PRINCE2 extends its applicability across industries and sectors. This makes it very popular in the market as it is a one size fits all model. Although PRINCE2 was founded in the UK, it has now firmly established its presence in industries across the world. According to a report in LinkedIn, PRINCE2 is the most popular project management methodology. A professional adept at PRINCE2 and holding the credential is highly valuable and sought after by organizations implementing PRINCE2 for their projects.  Benefits of getting PRINCE2 certifiedGuide projects in their entiretyTailor PRINCE2 to suit the needs of projects and organizationsValidate your commitment to continued excellence and quality  Master and demonstrate your proficiency of the PRINCE2® framework  Gain project management best practices and grow your career with confidence Work across projects in diverse sectors and industriesShow your ability to work in challenging work environments  Command higher salaries (upto $99,012 average) than your non-certified peers Top companies that hire PRINCE2 professionalsShellBPTranspower New ZealandIBMHPAquasoftGetronicsSiemensWhere to take training for certification: Aspirants must undertake training from a Certified Partner of AXELOS and an accredited training organization (ATO) with PeopleCert®.Who should take the training for certification?Project ManagersProject CoordinatorsProject AnalystsProject LeadersProduct ManagersProgram ManagersProject SponsorsTeam LeadersSenior Responsible OwnersProduct Delivery ManagersBusiness Change AnalystsProject and Programme Office PersonnelOperational Line ManagerAnyone who wishes to build up knowledge in project management EligibilityThere are no eligibility requirements for the PRINCE2® Foundation certification exam. To qualify for the PRINCE2 Practitioner exam, you must have at least one of the following certifications: PRINCE2® Foundation or higher (applicable only to certificates obtained after 1 January 2009) Project Management Professional (PMP)® Certified Associate in Project Management (CAPM)® IPMA Level A® (Certified Projects Director) IPMA Level B® (Certified Senior Project Manager) IPMA Level C® (Certified Project Manager) IPMA Level D® (Certified Project Management Associate) Project Management Qualification (PMQ) Project Professional Qualification (PPQ) Exam FormatFoundation ExamDuration: 60 minutes (1 hour) Questions: 60 Multiple choice questions Pass mark: 33 out of 60 available, or 55% Use of textbook: No, it’s a closed book examPractitioner Exam Duration: 150 minutes (2.5 hrs) Questions: 68 Objective type questions Pass mark: 38 out of 68 available, or 55% Use of textbook: Yes, but only the official PRINCE2® manual is permitted. Duration to get certifiedYou will need to attend 32-hours of PRINCE2® Foundation and Practitioner training from an ATO of AXELOS and PeopleCert®, following which you will be required to take the exams to demonstrate your knowledge of PRINCE2 and get certified. The results of your tests are issued within 2 business days from the date of your exam.  Course fee for certification: USD 1999Exam fee for certification: Included in course fee5.  PgMP®: Program Management Professional (PgMP)® Certification TrainingAnother project management from the PMI, this credential is more advanced than the PMP and certifies the holder’s ability to manage complex projects that cover functions, organizations, cultures and geographies. The credential mandates holders to be proficient in the six prime focus areas: Governance, Prioritization, Escalation, Resource Management, Benefits Realization, and Stakeholder Management.PgMP Demand: Credentials from the PMI are known for their rigorous standards and testing, which is why they are well accepted in industries across sectors. PgMP holders are better able to promote integration and coordination of multiple projects for the overall benefit of the program. According to PMI’s 2015 Pulse of the Profession® report, an organization’s projects are far more successful with program management than without it — 76 percent compared to 54 percent. This further compounds the demand for PgMP professionals. Benefits of getting PgMP certifiedGet in-depth knowledge of tools and techniques to handle complex multiple related projectsUnderstand Program Lifecycle and its processes, competencies, tools and techniques with practical sample templatesLearn to implement large-scale programs to align with business strategyOpen yourself to lucrative job opportunities and leadership rolesWork in projects across geographiesEarn high salaries, upto $139,000 on averageTop companies that hire PgMP professionalsAmazonGoogleMicrosoftCognizantCapgeminiDeloitteJP Morgan ChaseErnst & YoungWhere to take training for certification: Aspirants must train from an Authorized Training Provider of PMI®Who should take the training for certificationTeam LeadsSponsorsProject DirectorsProgram ManagersPortfolio Managers  Project Management Office (PMO) HeadsEligibilityA Four-year Degree (Bachelor's or Global equivalent), with at least four years of Project Management experience and four years of Program Management experience.ORA Secondary Diploma (High school or Global equivalent), with at least four years of Project Management experience and seven years of Program Management experience. Exam FormatNo of questions: 170 multiple-choice, of which 20 are considered pretest questions which are not scored.Question type: Most questions are scenario based and test a professional's understanding and clarity of thoughts on different Program Management concepts.Time: 4 hoursDifficulty level: DifficultDuration to get certified: You have to complete your 24 hours of training from an Authorized Training Partner (ATP) of PMI. Make a study plan and stick to it religiously. The PgMP is considered to be more difficult than the PMP and requires a fair bit of preparation. Once you pass the 4-hour exam you will be PgMP certified.  Course fee for certification: INR 13,999; USD 1199Application fee for certification: For PMI membership: USD $ 129 plus USD $10 for application fee.Exam fee for certificationIn IndiaMember: ₹46,338.00Non-member: ₹77,230.00In U.S.Member: $800Non-member: $1000Retake fee for certificationMember: $600Non-member: $8006. PMI-ACPPMI-ACP Demand: Agile is a fairly new concept in the context of product development. Though organizations reap immense benefits by adopting Agile, the road to transformation can often turn out to be expensive if not well executed. PMI-ACP professionals are therefore in huge demand as they can bring in project management best practices in Agile environments and ensure project success.  Benefits of getting PMI-ACP certifiedThe shortage of Project Managers has increased job opportunities in the Agile environmentYou will qualify for Agile jobs with expertise in Agile methods like Scrum, FDD, Kanban, etc. which are in demand in the industryEarn salaries in the range of $108,000 on an averageEquips you with knowledge of various Agile methodsMakes you more marketableTop companies that hire PMI-ACP professionalsStandard CharteredOracleIBMVMWareSource: IndeedWhere to take training for certification: Aspirants must train from an Authorized Training Provider of PMI® Who should take the training for certification?Project ManagersProject PlannersQuality Assurance StaffDevelopers/ProgrammersDesigners, TestersProject ControllersProduct OwnersScrum MastersScrum Team MembersEligibilityTo apply for the PMI-ACP®, candidates must meet the following requirements:1. General Project Experience2000 hours of working on project teams within the last 5 years or having an active PMP®/PgMP® credential2. Agile Project Experience1500 hours of working on Agile Project Teams or with Agile Methodologies, in addition to “General Project Experience” above;3. Training in Agile Practices21 contact hours earned in Agile PracticesExam FormatNo of questions: 120 MCQ, of which 20 are pre-testDuration: 3 hoursDuration to get certified: Once you complete the course, you need to schedule the exam date. Exam applications have to be submitted and approved by PMI. Online applications m ay take upto five business days to get processed. Once your application is processed, you can schedule your exam date, and on passing receive the PMI-ACP credential.Course fee for certification: INR 10,999, USD 1099Application fee for certification: For PMI membership: USD $ 129 plus USD $10 for application fee.Exam fee for certificationFor members: $435Non-members: $495Retake fee for certificationMembers: $150Non-members: $200SummaryProject Management is among the most sought after job roles, not only in the tech industry but any industry that executes and manages projects. By 2027, 88 million individuals will need to be skilled in project management-oriented roles. This makes it among the hottest job trends in the coming years, and a credential will go a long way in helping you capitalise on this trend.
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Best Project Management Certifications in 2021

While nothing can replace industry work experience... Read More

Project Contracts – A Vital Legal Binding

One of the key knowledge areas discussed in the Project Management Professional (PMP®) certification is Procurements Management. As part of project procurements management a project manager is mainly expected to be able to initiate, execute and manage projects based on the project contracts. This article is an attempt to discuss about project contracts, to discuss the importance of such contracts and to give an introduction to types of contracts as a precursor to subsequent articles. The PMBOK® defines a contract as follows. “Contract represents a mutually binding agreement that obligates the seller to provide the specified products, services or results, and obligates the buyer to provide the monetary or other valuable consideration in return. A contract can also be called an agreement, understanding, undertaking or a purchase order.” (PMBOK® 5.0) Any project involves two or more parties. One main party that is the buyer and the other the seller. In addition to these there can be other 3rd party elements that are not directly involved in the contract but are interested in or are impacted by the same. The contract between the buyer and the seller happens to protect the interests of the two parties entering into the agreement. The seller provides goods or services to the buyer for which the buyer compensates the seller monetarily or through other financial or non-financial means.   A contract is a formal agreement between the two parties and it is a legal binding amongst the two entities. A formal contract must be in written format and can be used even in court of law in the case of either party failing to honour their commitment or in the case of an appeal against any misdeeds. Dishonouring contracts may actually lead to settlements even in court but should ideally be settled mutually among the disagreeing parties, most probably through a mediator called an ‘arbitrator’. Normally in large organizations contracts are managed by a separate contract manager or a procurements manager. The management of contracts are done in 2 separate ways namely; centralized contracting and decentralized contracting. In centralized contracting, one contract manager manages all the contract related matters for multiple projects. This requires expertise in contracting, standardization of contracting practices across the organization and more focused management of contracts. In decentralized contracting, separate contract managers are allocated to manage the procurements for individual projects. This results in full time management of contracts and the contract manager must report progress to the project manager. This results in more focused management of project contracts and with time creates specialized expertise in contracting. However, this may result in duplication of contracting expertise and less standardization of contracting practices across multiple projects in the company. There are three main types of contracts. They are Cost Reimbursable OR Cost Plus, Time and Material or Unit Price and Fixed Price or Lump Sum contracts.  The applicability and use of these contract types based on the type of project, complexity and the parties involved may decide on variations based on the charges involved in order to ensure that the contract terms are mutually beneficial for the two parties. Hence, these contracts vary based on the cost, time and price.  A cost plus or cost reimbursement contract is a contract in which the contractor is reimbursed or paid all the actual expenses they incur when carrying out the work. In addition to this they are also allowed to charge an extra fee allowing them to obtain a profit. For example a contractor taking up building a contract may claim resource costs as well as any miscellaneous expenses incurred for travel, food, purchases as well as charge an additional amount from the customer in order to make a profit from the tasks carried out. A fixed price contract on the other hand does not depend on the resources utilized or time expended. A fixed amount is agreed upon between the contractor and the customer where the amount is paid to the contractor even if the resources expended is lower or higher than the agreed upon amount. Time & material contract is where the contracting party is paid only for the amount of time or resources spent. For example if there is a software development firm which assigns 4 resources for a project on a T&M basis the company will be paid an hourly rate for each resource based on the amount of time they spend on tasks in the project.  Each contract type has its own pros and cons for both the contracting and implementation party. For example a fixed price contract is suitable for an organization as they would know the amount due before hand and know that they won’t end up paying extra if the triple project constraints are not met. Similarly, a time and material project may be suitable for both parties, as amount will be charged only based on the amount of work done in the project and for the time spent. Advantages and disadvantages of each contract type depend on the context. Thus, it is important for stakeholders involved in projects to negotiate on contracts wisely.
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Project Contracts – A Vital Legal Binding

One of the key knowledge areas discussed in the Pr... Read More

How much does a PMP® Certification cost?

 Are you planning to take the PMP® certification exam soon? If yes, you should take the next step by starting with the application process. But before that, you need to have a clear idea about the costs which are included in the process of getting PMP® certified.  PMP® is considered as one of the most valuable and high demand certifications in the project management category. Having a PMP® certification under your belt will introduce you to the world of greater opportunity and lucrative salaries. But PMP® is a tougher exam compared to other certifications and requires more preparation to pass the exam.There are multiple items to consider when you try to find out the cost involved in the PMP® certification process. The PMP® certification costs include the application and exam fees plus any other additional costs associated with preparing for the exam.It is not just about the PMP® Exam feeYou need to pay an amount of $555 as the exam fee to sit for your PMP® certification exam. But you can bring it down to $405 by becoming a PMI member. But this is not the only cost involved in the PMP® certification cost. The costs can further be explained in the following points:1. Become a PMI member:It is not necessary for you to become a PMI member to sit for your PMP® certification exam. But the benefits of getting a membership with PMI is more than the membership fee. The annual membership fee along with the first time registration fee is $139. You can save $150 on the exam fee itself by becoming a PMI member.Apart from the exam fee, you get a free copy of the latest edition of PMBOK® Guide and other standards or guides published by PMI which you need to be thorough with in order to pass the PMP® examination. Further, you can gain the required PMP® PDUs for free by watching the webinars and joining the annual online conferences which are exclusively available for the members.2. PMP® certification exam fee:Once you become a PMI member, you need to pay $405 as the PMP® certification exam fee to take the computer-based exam at your nearest Prometric exam center. But it is $555 for non-members.You can take up the PMP® certification exam three times in the one-year eligibility period. Again, if you are a PMI member, you just need to pay a PMP® re-examination fee of $275 whereas, the non-members need to pay $375.3. PMBOK® Guide:As a PMP® aspirant, you shouldn’t consider only the PMBOK® Guide to be the syllabus of PMP® exam. It is an official reference book for the PMP® exam. It is recommended for every aspirant to read the PMBOK® Guide more than once while you prepare for your PMP® exam. The content of the PMBOK® Guide can be found in the real PMP® exam. The current cost of PMBOK® Guide is $47.98.Got a PMI membership? Then you can download the free copy of the PMBOK® Guide from the PMI website.4. Earning 35 contact hours by attending the Project Management Training Course:You need to complete 35 hours of project management course work to sit for the PMP® exam. Taking up a Project Management Training Course can help you to earn these 35 contact hours. The cost of these courses ranges based on the training provider. You need to spend around $1,000 to meet this requirement.5. PMP® exam reference books:As you know that PMP® certification exam consists of a complex exam pattern and you need to be well prepared to clear it at one go. You can get access to reference books both in hard copy and online. These resources contain tons of project management knowledge which proves helpful while you prepare for your PMP® exam.6. Practice Exams and Mock Tests:Taking PMP® sample exams plays a pivotal role in your PMP® exam preparation. These mock tests and practice exams prove as a good resource to test your readiness for the exam. Further, these mock tests will help you understand the techniques of time management which is an important factor while writing your PMP® certification exam.7.Renewing your credentials:You can’t stop your quest once you get your PMP® certification. Your PMP® certification is only valid for three years and you need to renew your credentials before it gets invalid. So, you need to pay $150 to renew your credential every three years. However, you can bring down this cost to $60 by becoming a PMI member.Confused? The following chart will help you to get a clear understanding of the costs involved in your PMP® certification:Sl. No.PMP® Certification Cost (Different Cost Aspects)Costs1PMI Membership fee along with joining fee$1392PMI Membership renewal fee$129 per year3PMP® Certification Exam fee for PMI members$4054PMP® Certification Exam fee for non-members$5555Rescheduling fee for PMI members$2756Rescheduling fee for non-members$3757PMBOK® handbook cost for membersFree8PMBOK® handbook cost for non-members$50 on Amazon9Cost of study guides and resources$40 to $10010Cost of practice tests$60 to $10011Renewal cost of PMP® certification for PMI members$6012Renewal cost of PMP® certification for non-members$150Online PMP® trainingWon’t it be great if you get access to PMP® certification training from your preferred location? You can make it possible by opting for online PMP® certification training. The e-learning course provided by the R.E.P.s give you access to innumerable mock tests and exam revisions. Few of the features of such courses are as follows:35 PDUs on completion of 35 hours of e-learning15 audio-visual modules covering all course topics from PMBOK® Guide13 hours of online contentPMP® eBook in downloadable format and PMP® exam blueprintA question bank on all knowledge areasTips and tricks to pass PMP® in the first attempt.PMI Talent Triangle™ BundleYou need to continue your learning and development in order to maintain your PMP® certification. The PMI® has set a 60 PDU requirement which you are expected to meet in order to continue your PMP® journey. As a PMP® certification aspirant, won’t you be happy to get all the course which you need to fulfill your PDU requirements in a bundle? You need to earn 35 PDUs in the Education category and meet the following minimum requirements, as per the PMI Talent Triangle™  skill areas:Education PDUs - Minimum Talent Triangle RequirementsCertificationTechnical PDUs RequiredLeadership PDUs RequiredStrategic PDUs RequiredRemaining PDUs - across any area of PMI Talent TriangleTotal Minimum RequiredPMP8881135The activities and courses included in the three components of the PMI Talent Triangle™ are as follows:TechnicalLeadershipBusiness & Strategic ManagementLife Cycle ManagementCoaching & MentoringCustomer relationship & satisfactionTime, Scope, Risk ManagementProblem SolvingBenefits RealisationEstimationTeam BuildingLegal & Regulatory complianceAgile PracticesEmotional IntelligenceStrategic planning & analysisGovernanceConflict ManagementOperational FunctionsData gathering and modelingBrainstormingBusiness acumenEarned value managementInfluencingCompetitive analysisPerformance ManagementListeningMarket awarenessInterpersonal skillsBusiness models and structuresThe best way to earn 35 contact hours of PMP® trainingYou can get access to PMP® certification training in three different methods. They are classroom training, instructor-led training, and self-learning method. All the mentioned modes have their own pros and cons, but self-learning is considered as the cheapest of all the three courses.You can choose between self-learning mode or instructor-led mode to take your online training. There are numerous R.E.P.s in the market who provide such training and help you attain 35 contact hours to fulfill the PMI requirements.You should consider the following important factors while searching for the best online platform for your PMP® certification training:Is the training provider a registered training body?Will you be provided with 35 hours certificate?Is the training provided in English?What is the duration of the eLearning access?Salary of a PMP® certified professionalAfter knowing about all the costs which you need to bear in order to get PMP® certified, won’t you love to know about what lies ahead of it? Here are five jobs for project management professionals in the US with the highest paid salaries.1. Pharmaceutical project management professionalA Pharmaceutical Project Manager works with researchers, doctors, and engineers to ensure that the research and development stay on schedule and on budget. He or she is responsible for overseeing the development of new medication for the treatment of diseases and other health problems. The average annual salary of a Pharmaceutical Project Manager based in the US is $131,833.2. Resources project management professionalA Resources Project Manager works toward making the process of extracting and growing natural resources by working with farmers, mining, and oil companies and eliminating waste as well as improving communication. He or she looks into the procurement of natural resources for efficient delivery to end consumers. The average annual salary of the Resources Project Manager based in the US is around $129,368.3. Consulting project management professionalFrom environmental engineers to sales managers, a Consulting Project Manager works at all the levels of the industry and they work on a case-to-case basis. He or she works with the goal to furnish industry expertise and advanced knowledge to the client in order to lead their project to success. A Consulting Project Manager earns an annual average salary of $129,208 in the US.4. Aerospace project management professionalThe job description of an Aerospace Project Manager includes working with designers and engineers to ensure the delivery of the new aircraft on time and on budget. His or her focus areas include quality control and risk management. The average annual salary of the Aerospace Project Manager based in the US is $121,923.5. Engineering project management professionalAn Engineering Project Manager communicates with clients to ensure the quality of the end product as demanded by the client. The annual salary of the Engineering Project Manager based in the US is $121,769 per annum.To concludeAs you can see, the PMP® certification involves a lot of other costs other than the exam cost itself. There is a cost involved in all the processes which you need to go through in order to get PMP® certified. But these costs can vary from person to person and the country you are residing in. Further, adding a PMP® certification to your collar exposes you to better career opportunities and higher salaries.
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How much does a PMP® Certification cost?

 Are you planning to take the PMP® certification... Read More

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