System for Value Delivery

What is a Value Delivery System?

The value delivery system is a new concept introduced in the standards section of the PMBOK 7 along with project delivery principles. The value delivery system includes portfolio and program management that bring value-increasing efforts to a broader perspective than the project axis. 

Enterprise Environmental Factors

A project is carried out with care, using special facilities and resources, between the beginning and end. Whatever we do it will still be impossible to keep the project isolated from internal and external factors. So we need to know what these factors are. By knowing them we will be able to use them in the direction that will increase the success chances of the project. 

Organizational Process Assets

Organizational process assets are a general expression of internal rules, assets, procedures, and sources of information that can contribute to the success of the project. 

Stakeholder Performance Domain (Stakeholder Management Knowledge Area in PMBOK 6)

The stakeholder management performance domain in PMBOK 7 consists of all endeavors to identify people and organizations who were impacted by the project or who affect the project in any way as well as evaluating stakeholder expectations and their impact level on the project. The core of this performance domain is developing appropriate management strategies for effectively engaging stakeholders in project decisions and delivery.

Determine Budget Process

Every output that is planned to be produced incurs a cost. Therefore, all projects need a budget allotted according to time intervals. The project budget is the aggregated amount of allocated money for the project in order to meet the objectives for a set duration.

Determine budget, is a project management process in which the cost baseline is created by combining the activity-based estimates put forward using various methods in the cost estimation process.

Project Quality Management Plan

A quality management plan is a document that contains the requirements, Quality Standards, quality criteria that a project or product has in terms of quality and describes how the project can achieve quality requirements. It is a subsidiary document of the project management plan. Project quality management plan can be used in the following performance domains;

How to create a quality management plan?

While creating a quality management plan, first of all, you need to define the quality perception of the customer. Because in project management, quality is not a worldwide standard approach. Contrarily, the features of quality change with the requirements of the customer. Therefore you should meet the quality requirements set by the customer, you should not use your own understanding of quality or you should not force yourself to exceed it dramatically. As part of defining the perception of the customer, you should investigate the performance expectations of the product's functionality.

As the second step, you should define the quality standards and procedures of your organization for this project. Therefore you should define responsibilities. Also, a quality management plan should reflect how to monitor and control quality performance and how to use measurement methods for quality-related data. Therefore quality metrics should be included in the plan for these measurements.

Quality is a goal that must be achieved in every project. To achieve this goal, it is also necessary to set some criteria and apply some methods. Here, these quality criteria and quality approaches vary according to the nature of the project and the nature of the targeted output.

Procurement Management Knowledge Area

In the procurement management knowledge area, we cover all aspects of obtaining the necessary goods and services for a project. This includes developing procurement strategies, issuing tenders and requests for proposals (RFPs), and selecting suppliers. We also look at contract negotiations and management, as well as supplier quality assurance.

When defining the scope of a project, it's important to identify all the necessary resources and inputs needed to complete the project. This includes anything from materials and equipment to consultants and experts. In some cases, the project team may be able to provide all the necessary resources internally. However, there are also cases where outside resources will be needed.

With so many potential suppliers available, it's important to have a well-defined procurement process in place. This will help ensure that the right supplier is selected and that the project gets the best value for its money.

Procurement management is an important part of any organization, and it can be especially tricky when it comes to projects. In order to make sure that everything goes smoothly, it's important to have a good understanding of the procurement management knowledge area. This blog provides information and resources about procurement management, so that you can make the best decisions for your organization. The processes of procurement management are now carried out as part of;
There are three processes in the procurement management knowledge area. These are;
As a project manager, it's important to be familiar with the procurement management knowledge area. This area can seem easier than some of the more complicated knowledge areas, but it can often be the most terrifying one to perform. That's because many project managers don't have formal training in procurement procedures. However, this doesn't mean you have to be an expert in procurement. You should just be proactive and keep the processes in control.

In the project management world, there is a great deal of focus on the project manager and their role in getting projects completed successfully. One of the important aspects of the project manager's role is procurement management - the process of acquiring goods and services needed to complete a project. However, in most organizations, it is not the project manager who will be authorized to sign legal agreements binding the organization.

Especially in small-scale organizations without a procurement department, the authority to negotiate the contract terms and sign it may be given to the project manager. However, generally in bigger volume organizations, there is a centralized purchasing department that carries out these negotiations and formal procedures. This leaves the project manager with the important task of understanding and complying with the organization's procurement policies and procedures. However, even in that case, the project manager should be present in the negotiations to direct the conversations according to the technical aspects of the project.

In PM Exams, questions may come from both the perspective of buyer and the perspective of seller. Organizational process assets are especially important in this knowledge area because your organization very probably has an existing procurement procedure.

The application of the processes that belong to this knowledge area is quite simple. There is one process for each of the;
In the plan procurement management process, as is the case for all other similar processes the main goal is developing a procurement management plan that will guide the project team to conduct and control procurements. Also in this process, the procurement documents will be created, a make or buy analysis is conducted for all needs of goods and services, the contract types will be determined and applicable source selection criteria is defined. At the end of the process also we will have a procurement statement of work (SOW) that reflects the scope of the work which the seller will be obliged to complete.

Conduct procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. The main output of the conduct procurements process is a contract between the buyer and the seller. In control procurements process, monitoring of the contract terms is done and change requests are created if necessary.

Check also:

Risk Management Knowledge Area in Project Management

One key area of project management is risk management. This involves analyzing, planning, and creating responses for various risks.

Communications Management Knowledge Area in PMBOK 6

PMBOK 7 has been introduced to the business world and professionals. However, the knowledge areas in PMBOK 6 are still very informative. Project communication management is the knowledge area in which the project itself, the processes, and, of course, the communication needs of stakeholders are revealed. In this context, it can be recognized as a knowledge area where formats and methods that can be applied to information flow are determined, stakeholders who have a role and responsibility for the implementation of intra-project communication are identified, the necessary planning is carried out in detail on all communication-related issues, and failures that can occur in project communication are constantly monitored.

Control Costs Process

Project managers must always remember that, one of the main reasons why projects are failing, is that the costs are spiraling out of control. To this end, there are ongoing measures, checks, and controls to keep the costs in check.

Estimate Activity Resources

In the process of defining activities, we determined which activities to perform throughout the project. Of course, the realization of these activities requires the use of a number of resources. These resources can be human resources or physical resources.

Estimate Costs Process

Cost estimating is one of the most integral components of project management. In order to create a reliable project budget, we must have an understanding of the individual costs of project activities. Even though we may not always have a definite number for these expenses, there are tools that we can use to arrive at close estimations.

Develop Schedule Process

A project schedule typically depicts the planned dates, durations, milestones, and resource availability and usage. While doing this the relationship with project activities is shown explicitly. The schedule can help identify the critical path, which is the longest path through the project, and determines the shortest amount of time in which the project can be completed.

Risk Management Plan in Project Management

Like all other knowledge areas, risk management has a plan that needs to be dealt with in great detail. In PMBOK 7 this process is related to uncertainty performance domain and planning performance domain. Risk management plan is categorized as a project artifact.

Developing a Risk Management Plan enables stakeholders, the project team, risk owners, and even senior management to clearly comprehend the procedures of proper risk management. It renders risk management highly visible and understandable, allowing for improved efficiency and communication.

How to develop?

A risk management plan can be instrumental in ensuring individuals tasked with the responsibility of monitoring and responding to risks have a better understanding of the type and magnitude of risks. Moreover, it can provide a set of criteria to assess positive and negative risks, determine when to hold meetings to detect any potential risks, and demonstrate the usage of statistical information to manage such risks. Developing a risk management plan is categorized under risk management k.a.


The risk management plan should include all elements related to proper risk management, with certain suggestions included. The plan should articulate the project's approach to risk management and provide a method for the project team to follow. Moreover, it should identify the tools and techniques to be utilized. Additionally, the plan should designate roles and responsibilities so the team is prepared to respond to a risk should it be realized. Finally, it should provide the necessary budget, contingency reserves, and management reserves.

As a crucial component of the risk management plan, risk categories should be included. This segmentation can be depicted as the breakdown structure. It is vital to factor in the risk appetite and risk tolerances of the relevant stakeholders. Moreover, it is essential for the project manager to determine the risk reporting format in the plan.

1-John: I've been using risk management plans in my projects for quite some time now, and they have proven to be invaluable tools. Now, here's my question for you: How do you strike the right balance between preparing for risks and avoiding over-preparation, which might hinder project progress?

Estimate Activity Durations Process

The project manager must constantly be at war with time in the projects he manages or directs. But this war should not tire him or harm his purpose, thanks to the tools he uses. One of the methods that will make the project manager's job easier is to divide the work and assign a time for each divided part. Thus, when all the pieces are put together, you will be able to have an idea, although not an exact one, about how long the project will take. The outcome of this estimation serves as the base of the final schedule. Estimation is a fundamental part of planning performance domain.

Schedule Management Plan in Project Management

The process of creating a schedule management plan influences the success of the project from many aspects. As always, stakeholder expectations are an invaluable target to meet here. As a project manager, you have to communicate with stakeholders about the scheduling approach of your project. Therefore a comprehensive schedule management plan will be very helpful. In projects that you manage or participate in, the project management team, your stakeholders or customers will naturally want to be informed about the time interval that your project will be completed. 

Sequence Activities

In PMBOK 7 the sequence activities are still an integral part of projects planned with a predictive approach. In order to develop a project schedule, the second step is defined as sequencing activities that are decomposed by using the project scope.

In the process of defining the activities, we determined the project activities by taking into account the rolling wave planning. The process of sequencing activities is the project management process in which we analyze the order in which activities should be implemented while moving forward with the goal of creating a schedule.