Project Management Methodologies and Key Performance Indicators Report

This report delves into the realm of project management, offering a detailed analysis of two prominent methodologies: PMBOK and PRINCE2. It begins by introducing the core concepts of project management, emphasizing its benefits and the importance of methodologies and frameworks. The report then provides a comprehensive overview of the PMBOK framework, outlining its various stages, including initiation, planning, executing, controlling, and closing, along with the key processes involved in each stage. Following this, the report examines the PRINCE2 methodology, highlighting its process-oriented approach and its application in IT projects. Furthermore, the report explores the significance of Key Performance Indicators (KPIs) in project success, discussing various KPIs such as Earned Value (EV), Planned Value (PV), and Actual Cost (AC), along with their formulas and applications. The report concludes by emphasizing the importance of both PMBOK and PRINCE2 methodologies and how KPIs contribute to effective project management, offering insights for managers to enhance project performance and achieve desired outcomes. The report also provides a comprehensive overview of the benefits of these methodologies and how they can be used to improve the performance of a project.

2/13/2020
Running Head: PMBOK 0
PMBOK
Report
Student name

PMBOK 1
Table of Contents
Introduction................................................................................................................................2
Project methodologies................................................................................................................2
Key Performance Indicators (KPIs)...........................................................................................5
Conclusion..................................................................................................................................9
References................................................................................................................................10

PMBOK 2
Introduction
Project Management (PM) provides many benefits to a firm. It is a process that includes
various methodologies and techniques to success in a project. In addition, PM has based on
the various skills of a person because efforts have required to manage all the processes.
Moreover, basic processes can be managed using a proper framework for PM. Besides, it is a
good thing to use PM practices (The practice of project management, 2013). Most of the
managers have used standards of PM to get success in their projects. This report will discuss
about the two PM methodologies, which are important for a leader or manager. In addition,
APM BoK will explain in details in the report. in this report, key success factors will describe
in detail, which is an important part of a project.
Project methodologies
The Project Management Body of Knowledge (PMBOK) is providing different
methodologies for PM. In addition, PM has required basic skills and planning for completing
a project in a successful condition. In addition, basic processes can be managed using these
methodologies. APM BoK has included waterfall model concepts to manage all the activities
of a project (Kerzner, 2017).
Source: (PMI, 2013)
Project Initiation is the first stage of the whole plan in which all the basic documentation will
complete in which all the inputs and outputs will cover the project. It is the base of a plan that

PMBOK 3
includes many necessary things for a project. It is necessary to develop new processes.
Besides, it has provided a clear view about the project as well (Braglia & Frosolini, 2014).
Moreover, planning is the second stage of the model in which the scope and budget of the
project will be decided based on the various factors, which are important for a project.
Sometimes, scope creep is a critical issue in front of a project manager. It is an important
factor that the scope of a project should be clear in front of all the employees and the project
team. Besides, it is an important part of a project to develop a proper budget, as many
projects have failed because of a lack of scope and budget management. In addition, basic
processes can be improved using various issues as well as many other technical and non-
technical issues that can be solved using it (Conforto & Amaral, 2016).
In addition, planning includes Work Breakdown Structure (WBS) to manage the schedule of
the whole project. It is a process to monitor all the activities of a project. It will provide many
helpful features for a manager in the management of a project. There are various online tools
to create a WBS for a project. In addition, there are some important factors in planning
(Karaman & Kurt, 2015). Besides, the Gantt Chart can be used for managing various
processes of a project. Moreover, all the processes can be divided into particular activities
with the timeline of each process to know the progress of the whole project (Karlson, 2018).
A communication plan can be used for reducing all the conflicts from all the group members.
In addition, many processes can be used for improving all the processes. It is important for a
manager to know about the suggestions and feedbacks of all team members. It can be used to
manage all the processes (Malas, 2019).
Risk analysis is necessary to reduce threats and risks of the project. In addition, risk
assessment can be done using an international framework, such as ISO31000, and many
others. It is necessary to manage all the processes. Basic processes can perform better using
risk analysis. Moreover, the manager should know about the risks of the project to find
mitigation strategies and controls as well (Marchewka, 2014).
Tracking is necessary for the actual status of the project. Moreover, many projects should
require proper status to know about the progress. In addition, there are some changes in the
project, which makes a huge impact on the processes of the project. There are some basic
processes that can be used to make better outcomes. In addition, Key Performance Indicators
(KPIs) are an important factor of a project, which requires for identification. Moreover, KPIs
have used for managing all the things. There are many changes in the project, which makes

PMBOK 4
an impact on the project. Most of the KPIs are useful for identifying over budget and under
budget projects (Matos & Lopes, 2013).
In addition, quality is an important factor in a project, which is necessary to manage. All the
processes can be managed in a proper way to manage. In addition, the forecast can be used
for managing risks and threats, which is better for the project (Moses, 2019).
Reporting is a good practice for a project. In addition, reports can be used for managing all
the things. PMBOK has focused on the quality of the project as well as many other things.
Besides, data collection and reporting are a good concept for decision making as well as
others. Moreover, performance can be improved using PMBOK and others (Müller, 2010).
In addition, PMBOK is a standard that is used for PM. This framework has provided by the
PMI, which is a traditional PM methodology. In addition, there are many benefits of this
methodology. This methodology has included five stages, which are initialization, planning,
executing, controlling, and close. Besides, PMBOK has used to manage all the processes of a
project. It provides help in workflows, governance, organizational structure, and many others.
Moreover, PMI has provided various features to manage various challenges in the workplace
(PMI, 2017).
In addition, PMBOK has used for managing external and internal issues in business functions
and projects. It is necessary to follow all those stages to complete a project successfully. It
has used for marketing and sales as well. In addition, PM can be used for completing a
project successfully. Leaders have used proper standards to manage workflows and planning.
There are many internal factors that make a huge impact on the project as well. In addition,
business strategies have used for managing various projects. Besides, a manager can use
PMBOK for better results of a project. A product can be launched in the market in a better
way using PM standards (PMI, 2019).
PRINCE2 is another framework for PM. It is based on the waterfall PM methodology. It has
created by the UK government in 1996 for Information Technology (IT) projects. In addition,
PRojects IN Controlled Environments (PRINCE) is a process-oriented methodology in which
the project has divided into multiple phases. All the phases have followed their own
processes and plans. It has included all the inputs and outputs. However, there are some
issues because of the risks and threats of a project. Besides, many processes can be managed
with proper approaches. Thus, nothing is left to chance (Rongala, 2015).

PMBOK 5
Source: (Taylor, 2018)
Moreover, the system has used this standard for the target customer. It can provide many
benefits using cost assessment. It is a better standard to mitigate risk effectively. This
methodology was based on eight high-level processes. In addition, there are many benefits to
this model (Rose, 2013). PRINCE2 is used for large scale IT projects. It has planned for
managing all the things. Most of the organization has used this methodology for managing its
organizational structure as well. It has covered all the environment of an organization, which
is a part of a project as well (Wysocki, 2014).
Key Performance Indicators (KPIs)
There are some important factors in a project that are required for the success of that project.
In addition, many objects make a huge impact on the success of a project. There are some key
success factors of a project, which are necessary to include in the project for the success of a
project. In addition, there are many critical factors, which make a project successful
(Wysocki, 2011).
These are some basic Key Performance Indicators (KPIs), which are necessary for the
success of a project. The PMBOK can select KPIs, which are important for a project, such as
Earned Value (EV), Planned Value (PV), and Actual Cost (AC). All those are used for
project performance. Planned Value is a measure of the estimated cost of planned activities.
In addition, there is a formula to calculate PV, which is

PMBOK 6
It is easy to measure PV based on the time and budget as well. Most of the managers have
considered this factor. In addition, many projects are successful because of their KPIs
including PV, and others. Earned Value (EV) is providing the actual value of the project. It
has considered completed work, not of the pending work.
Budgeted Cost of Work Performed (BCWP) is known as EV. It is used for managing many
things. In addition, Actual Cost (AC) is a third important factor of a project alongside EV and
PV. It has calculated based on completing all the work done to date. Actual Cost is also
called the Actual Cost of Work Performed (ACWP). It is calculated based on the spending on
the project for managing various things.
Source: (Karlson, 2018)
Schedule Variance (SV) provides project status, which is behind and ahead schedule.

PMBOK 7
Cost Variance (CV) provides information about the project under budget or over budget.
Schedule Performance Index (SPI)
SPI ratio > 1 shows that the project is ahead of deadline
SPI ratio = 1 implies that the project is exactly on deadline
SPI ratio < 1 means that the project is behind deadline
Cost Performance Index (CPI)
These KPIs are necessary to know about the statures of the project, which is good for a
person as well as other things. It I necessary to identify all the processes based on those key
factors. It is helpful in the success of a project. A manger can take proper decisions based on
those KPIs.

PMBOK 8
In addition, PM can be used for improving the performance of a project using basic stages
and documentation processes. In addition, risk analysis is an important part of IT projects,
which is a good way to learn about the weaknesses and strengths of a project as well.
Furthermore, PMBOK and PRINCE2 have used for better performance and management of a
project. Both methodologies have used to manage the success factors of a project. Thus, the
best outcomes will provide by those methodologies. Thus, PM methodologies should be used
for managing all the things. Apart from it, there are many good features of those PM
methodologies, which makes them more popular as well as helpful in the success of a project
(Wysocki, 2014).
PRICE2 has considered inputs and outputs of a project to manage all the internal and external
factors. In addition, many processes can be improved using this methodology In addition,
many processes can be managed in an efficient way. Traditional approaches can be replaced
from all new methodologies for better performance. A manager can be monitored all the
processes based on the WBS, and Gantt chart as well (Karlson, 2018).
It can be processed using various things, such as leadership. In addition, PM is based on
leadership as well. Therefore, some basic processes can be improved using different
approaches. Additionally, PMBOK has provided additional features to manage and
governance of systems as well. Ultimately, processes can be used to improve the productivity
and performance of various processes. There are some basic improvements in different
processes, which is good for an organization as well (Matos & Lopes, 2013).
Moreover, there are various factors in a company, which makes a huge impact on the project
as well, such as reputation, leadership, and many others. Moreover, managers can track the
progress of the project using these methodologies, which is necessary for an origination.
Most of the projects have succeeded because of proper tracking, reporting, and monitoring
(PMI, 2013). In addition, KPIs are indicators for managing all the things of a project in a
proper manner, moreover, basic processes can be managed using different types of KPIs. It is
a basic need for a project to know about their status. In this era, technological innovations are
available in the market for managing all the processes. Moreover, PM can be a better solution
to manage different types of issues and challenges (PMI, 2019). Basic methodologies have
applied for the handling of change management issues as well. Employees have faced various
types of issues and challenges in PM (Rose, 2013).

PMBOK 9
Conclusion
It has concluded form the above parts of this report that PM methodologies have used for
success as well as other benefits. It has provided many benefits to a manager in terms of
leadership and many others. In addition, PMBOK has provided many benefits to an
organization as well as a manager. It has provided more success because of its workflows for
a project. It is a five-stage model that can be managed various things. Moreover, PRINCE2
has provided success to large scale IT projects, which have faced many challenges and issues
during development and implementation. This report has analyzed two PM methodologies,
which are APM Book and PRINCE2. Besides, this report has discussed the KPIs, which are
important for a project. In addition, project methodologies have used for managing various
things, which are related to the various functions of a project, such as planning, development,
targets, inputs, and outputs. The basic need of project management framework is managing
processes in better way. This report has provided KPIs for a project, which must be included
for managing a project, such as PV, EV, and many others. Besides, some specific KPIs have
used for managing core part of a project.
Finally, PM methodologies are necessary for managing a project. Moreover, it will improve
the rate of success of a project as well. The project can be managed in a well manner using
PMBOK and PRICE2 methodologies. Many organizations have used these methodologies for
PM. It will provide more growth and success in PM. Moreover, it can be managed using
these methodologies. It will improve the success rate of a project as well.

PMBOK 10
References
Braglia, M. & Frosolini, M., 2014. An integrated approach to implement project management
information systems within the extended enterprise. International Journal of Project
Management, 32(1), pp. 18-29.
Conforto, E. C. & Amaral, D. C., 2016. Agile project management and stage-gate model—A
hybrid framework for technology-based companies. Journal of Engineering and Technology
Management, pp. 1-14.
Karaman, E. & Kurt, M., 2015. Comparison of project management methodologies: prince 2
versus PMBOK for it projects. International Journal of Applied Science and Engineering
Research, 4(4), pp. 572-579.
Karlson, K., 2018. 16 Essential Project KPIs That Benefit the Entire Team. [Online]
Available at: https://www.scoro.com/blog/16-essential-project-kpis/
[Accessed 15 February 2020].
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. 1st ed. London: John Wiley & Sons.
Malas, F., 2019. The 10 Best Project Management Tools. [Online]
Available at: https://clickup.com/blog/the-10-best-project-management-tools/
[Accessed 26 January 2020].
Marchewka, . J. T., 2014. Information technology project management. 5 ed. New York:
John Wiley & Sons.
Matos, S. & Lopes, E., 2013. Prince2 or PMBOK–a question of choice. Procedia
Technology, 9(2), pp. 787-794.
Moses, S., 2019. 11 Critical Project Management Metrics Every Agency Needs to Track.
[Online]
Available at: https://www.workamajig.com/blog/project-management-metrics
[Accessed 15 February 2020].

PMBOK 11
Müller, R., 2010. Leadership competency profiles of successful project managers.
International Journal of Project Management, 28(5), pp. 437-448.
PMI, 2013. A guide to the project management body of knowledge (PMBOK guide). 5th ed.
Newtown Square, PA: PMI.
PMI, 2017. A guide to the project management body of knowledge (PMBOK guide).
Newtown Square, PA: PMI.
PMI, 2019. Code of Ethics and Professional Conduct. [Online]
Available at: http://www.pmi.org/About-Us/Ethics/Code-of-Ethics.aspx
Rongala, A., 2015. Top 5 Factors that Lead to Project Success. [Online]
Available at: https://www.invensislearning.com/blog/top-5-factors-that-lead-to-project-
success/
[Accessed 15 February 2020].
Rose, K. H., 2013. A Guide to the Project Management Body of Knowledge (PMBOK®
Guide)—Fifth Edition. Project management journal, 44(3), p. e1.
Taylor, A., 2018. PROJECT MANAGEMENT AT ROCHE. [Online]
Available at: https://rocheav.co.uk/newsfeed/project-management-at-roche/
[Accessed 15 February 2020].
The practice of project management. 2013. [Film] Directed by Laureate-Education. s.l.: s.n.
Wysocki, R. K., 2011. Effective project management: traditional, agile, extreme.. 1st ed.
London: John Wiley & Sons.
Wysocki, R. K., 2014. Effective project management: Traditional, agile, extreme. 7th ed.
Indianapolis, IN: Wiley.