Study Items for the PMP EXAM

8/8/2019 Study Items for the PMP EXAM

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Study Items for the PMP EXAM

This is a complete and very exhaustive list of major concepts, definitions and tems to remember when

you will try to pass the PMP Exam. Despite it is in English it can be used by everybody just because all

the items above you should have been seen during PM courses or training. You must:1. Read PMBOK once. Suggest reading 2 to 3 times.2. Memorized the mapping of project management processes to the project

management process groups and the knowledge areas.

3. Go through the terms mentioned in "Standards Glossary"

4. Suggest reading books of Rita Mulcahy, Kim Helman, Harold Kerzner two to

three times

5. Flashcard from Rita Mulcahy, Clickme from Kim Heldman.

6. Sample Q&A from Kerzner (several times), Kim & Rita. PMBOK Q&A Book

supplied by PMI or whatever source for practice Q&A.

7. Memorize the formulas for cost, time etc.

8. Discipline yourself to a schedule and stick with it.

9. Strong suggestion: take a course for preparing for the Exam.

PMP websites:www.pmHub.net

www.pmstudy.com

www.readysetpass.com

http://sydney.pmichapters-australia.org.au/

Following PMP materials on the web also helped.

1. free flashcard website for PMP with 1538 questions/flashcards.

http://www.flashcardexchange.com/flashcards/view/287102 go to "Study".

2. In addition there are lot of materials , questions in the other flashcards

http://www.flashcardexchange.com/tag/pmp

3. 75 free questions:

http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm4.PMP Exam Tutorials, 200 questions:

http://www.tutorialspoint.com/pmp-exams/pmp_mock_exams.htm

5. Free 15 questions:

http://www.testprepreview.com/modules/pmp.htm

6. 20 practice questions:

http://certification.about.com/od/projectmanagement/a/pmp_test_whiz.htm

7. Free PMP Certification Practice Questions:

http://www.certgear.com/products/preview/pmp_certification/index.html

List of sites on web that provide some free PMP exam questions (as demos)

Some of these sites point to other sites with free sample demos

http://www.educationlist.in/pmp.html

http://www.carlstumpf.com/PMP%20Study%20Group/pm%20study%20group%20i

ndex.htm

www.certgear.com/products/info/pmp.htm

http://www.4pmti.com/

http://www.pmpexamtips.com/pmp-exam.html


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www.MeasureUp.com

http://www.freedownloadscenter.com/Search/practice_exam_W1.html

According to the Project Management Body of Knowledge (PMBOK), a project is a temporary endeavor

undertaken to create a unique product or service.

Triple constraint- project scope, time and cost

Ap o rtf o lio is a collection of projects or programs and other work that are grouped together to facilitate

effective management of that work to meet strategic business objectives. The projects or programs in the

portfolio may not necessarily be interdependent or directly relatedProject Portfolio Management is a management process to select theprojects thatshould be invested in. Specifically, it is the selection processbased on the need,profitability, and affordability of the proposed projects.

A project management office (PMO) is an organizational unit to centralize and coordinate the

management of projects under its domain. A PMO can also be referred to as a "program management

office," "project office," or "program office." A PMO oversees the management of projects, programs, or a

combination of bothProject management is a set of tools and techniques that are used toorganize the work of the project to help bring about a successful project.The contract between the organization and the vendor super cedes all otherworkrelated documentsCustomers, internal or external, are the most importants take ho ld er s in aprojectScope verification must take place at the end of each phase

Money already spent on a project is called sunk cost and should not be taken into consideration when

determining if a project should continue. Instead, the cost of the work to complete is one of the elements

that should be taken into consideration when considering to kill a projectPhase end reviews are also called phase exits, phase gates, or kill points.The project life cycle goes through a series of phases to create the productProject managersman ag e things, but l ead people. What's the difference?Management is the process of getting the results that are expected by

project stakeholders.Lead ersh ip is the ability to motivate and inspireindividuals to work towards those expected results.Project

Projects don't last forever. They are temporary and unique

Projects pass through logical phases to reach their completion

Purpose of Project is to attain its objective and then terminate


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Operations

Operations, however, do go on and on. They are ongoing andrepetitive

Operations may be influenced, or even created, by the outcome of aproject

Objective of an ongoing operation is to sustain businessOrganization Structure

Functional

Matrix

Weak

Balanced

StrongProjectizedOrganization Structure And Project Characteristics

oFunctional

PM's Authority [Little or none]

Resource Availability [Little or none]

Who controls Project Budget [Functional Manager]

PM's Role [Part - Time]

PM Admin Staff [Part - Time]oWeak Matrix

PM's Authority [Limited]

Resource Availability [Limited]

Who controls Project Budget [Functional Manager]

PM's Role [Part - Time]

PM Admin Staff [Part - Time]oBalanced Matrix

PM's Authority [Low to moderate]


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Resource Availability [Low to moderate]

Who controls Project Budget [Mixed]

PM's Role [Full - Time]

PM Admin Staff [Part - Time]oStrong Matrix

PM's Authority [Moderate to high]

Resource Availability [Moderate to high]

Who controls Project Budget [Project Manager]


PM Admin Staff [Full - Time]o

Projectized

PM's Authority [High to almost total]

Resource Availability [High to almost total]

Who controls Project Budget [Project Manager]


PM Admin Staff [Full - Time]TheW B S is a decomposition of all the deliverables the project will create

Inspections may also be known as:

a. Reviews

b. Product reviews

c. Audits

d. Walk-throughsGraphical evaluation and review technique (GERT) models allow for loopsand conditional branchingCrashing adds more resources to activities to decrease their duration, whichtypically adds cost

Project calendarThis calendar shows when work is allowed on the project.

For example, a project may require the project team to work nights and weekends so as not to disturb the

ongoing operations of the organization during working hours. In addition, the project calendar accounts for

holidays, working hours, and work shifts that the project will coverResource calendarThe resource calendar controls when resources, such as


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project team members, consultants, and SMEs are available to work on the project. It takes into account

vacations, other commitments within the organization, or restrictions on contracted work, overtime issues,

and so on

Program Evaluation and Review Technique (PERT) uses a weighted average formula to predict the

length of activities and the project. Specifically, PERT uses a 'pessimistic,' 'optimistic,' and 'most likely'estimate to predict when the project will be completedThe critical path is the longest path to completion in the network diagram.Activities on the critical pathha v e no float or slack.Free float is the amount of time an activity can be delayed without affectingthe next activity's scheduled start date.

Total float is the amount of time an activity can be delayed without affectingthe project end date.

Heuristic is simply a rule of thumbCrashing involves adding resources, which typically increases cost.Fast tracking adds risk as tasks are allowed to overlapEach resource in the project must be accounted for and assigned to a costcategory.Categories include the following:

a. Labor costs

b. Material costs

c. Travel costs

d. Suppliese. Hardware costs

f. Software costs

g. Special categories (inflation, cost reserve, and so on)

There are three generally accepted categories ofestimating accuracy: a. Rough order of magnitude This

estimate is rough and is used during the Initiating processes and in top-down estimates. The range of

variance for theestimatecanbe

25percentto+75

percent. b.

Budget estimate This estimate is also somewhat broad and is used early in the planning processes and

also in top-down estimates. The range of variance for the estimate can be 10 percent to +25 percent. c.

Definitive estimates This estimate type is one of the most accurate. It is used late in the planning


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processes and is associated with bottom-up estimating. The range of variance for the estimate can be 5

percent to +10 percent.The opportunity cost is the amount of the project that was not chosenQuality is the sum of the characteristics of a product that allow it to meet

the demands or expectations of the projectGrade, according to the PMBOK, is a category or rank given to entities

having the same functional use but different technical characteristics. For example, there are different

grades of paint, different grades of metal, and even different grades of travel.

The design of experiments (DOE) approach relies on statistical what-if scenarios to determine what

variables within a project will result in the best outcome.Design of experiments is an analytical technique that identifies the elementsor variables that will have the greatest effect on overall project outcomes

There are five types of powers the project manager yields: (R F C E R )a.Reward

b.Formal

c.Coercive (penalty)d.Experte.ReferentAmong the above powers Reward, Formal & Coercive (penalty) come withthe"P os it io n"Expert & Reward are considered the best types of powers and Coercive(penalty) is "Least" for obvious reasons

Seven reasons for conflict, in order of most common to least common:

a.Schedules

b.Priorities

c.Resources

d.Technical beliefse.Administrative policies and procedures

f.Costsg.PersonalitiesFive different approaches to conflict resolution

a. Problem solving (win - win) [BEST]

b. Forcing (win - lose)

c. Compromising (lose - lose)

d. Smoothing

e. Withdrawal

NOTE: Forcing (win - lose) and Problem Solving (win - win) are the ONLY

two modes that result in a RESOLUTION to the conflict.


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The halo effect is the promoting the person to manage projects since he/sheis good at a technologyConfronting (Problem Solving) is the best problem-solving technique since itmeets the problem directlyIn a Weak Matrix structure, functional management will have more authoritythan the project manager

Withinc omm un ic ating there are five characteristics that affect the message:

a. Paralingual: pitch, tone, and voice inflections

b. Feedback: sender confirmation of the message by asking questions, for a

response, or other confirmation signals

c. Active listening: receiver confirms message receipt

d. Effective listening: receiver offers confirmation of the message, such as

nodding their head, asking questions, or other interactions.

e. Nonverbal: facial expressions, hand gestures, and body language

One of the first inputs to risk management is the project charterHistorical information is always an excellent source of information for riskidentificationBrainstorming is likely the most common approach to risk identificationForce majeure is a powerful and unexpected event, such as a hurricane orother disasterContracts are known by many names:

a. Agreement

b. Subcontract

c. Purchase order

d. Memorandum of understandingAll contracts in the United States are backed by the US court systems

According to the Guide to the PMBOK, the project chartershould be published by a manager external to

the project but with sufficient power and authority to carry it off.When a project is performed under contract, the contract can serve as theproject charterCost reimbursable contracts are used when the degree of uncertainty is high

and when the project requires a large investment prior to completion of theproject

The scope statement contains an exhaustive list of the project deliverables, their requirements, and

measurable criteria used to determine project completionThe scope statement is an output to the Scope Definition process and isused to create the WBS


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Cause-and-effect diagrams, also called Ishikawa or fishbone diagrams, showthe relationship between the effects of quality problems and their causesThe primary function of the Closing process is to formalize projectcompletion and disseminate this information to the project participants

According to the Guide to the PMBOK, the project manageris identified and assigned as an output of the

Initiation process. In practice, project managers are very often assigned at the beginning of this process.

The work package level is the lowest level in the WBS. Time and cost estimation is easily determined at

this level as are resource assignments. Quality control measurements can be determined at this level as

well.The code of accounts is assigned to the elements in the WBSEach element in the WBS is assigned a unique identifier. These arecollectively known as the code of accounts

The Responsibility Assignment Matrix (RAM) links project roles andresponsibilities with project activitiesTheW B S is the deliverables-oriented hierarchy of project work.

The staffing management plan details how and when human resources will be added to and taken off the

project. It is an output of Organizational PlanningAnalogous estimating is not a qualitatively based technique. It is a top-downestimating technique that considers previous similar activities whencalculating estimatesMandatory dependency, also known as hard logic. Mandatory dependenciesare inherent in the nature of the workDiscretionary dependencies, also called preferred logic, preferential logic,and soft logic, are defined by the project management team

"Best Practice often refers to a specific sequence of work, described in terms of Soft Logic. Sometimes

"Experience" is also attributes to Soft LogicFinish to start is the most commonly used logical relationship inP DMandmost project management software packages

There are three major documents and each has a specific purpose:

a. Project Charter. Formally authorizes the project.b. Project Scope Statement. States what work is to be accomplished and

what

deliverables need to be produced.

c. Project Management Plan. States how the work will be performedPhilip Crosby devised the zero defects theory, meaning do it right the firsttime. Proper Quality Planning leads to less rework and higher productivity


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According to Bruce Tuckmann, Forming, Storming, Norming and Performing are the stages of team developmentThe performing stage is similar to Maslows self-actualizationMyers Briggs theory states that Sensing and Intuition personality typesare related to Information preference in other words Hard Data verseswhat might beJuran = Fitness for use, conformance. Quality by design.Joseph M. Juran is noted for his fitness for use premise. Simply put, thismeans the stakeholders and customers expectations are met or exceeded.W. Edwards Deming suggested that as much as 85 percent of the cost ofquality is a management problemShewhart = Plan-Do-Check-Act cycle.

TQM = Quality must be managed in and must be a continuous processSix Sigma = Six Sigma is a measurement-based strategy; no more than 3.4defects per million.Kaizen = Continuous improvement; improve quality of people first.Continuous improvement = Watch continuously for ways to improve quality.Statement of work (SOW) comprises ofoBusiness Needo

Product Scope Description andoStrategic Plan

Conflict should be addressed early and usually in private, using a direct,collaborative approachOrganization, Environmental & external assumptions should be addressed bythe Project CharterWBS Dictionary is a document which describes the details for each

component in the WBS. It includes a breif description of the of the Scope or Statement of the work ,

defined deliverables, a list of associated activities, and a list of milestonesProject Manager must consider cultural differences while deciding uponrecongnization and rewards during team development.Technical inability and poor risk management by the contractor is mostly thereason for the project not to meet the customer expectationsCritical Chain Project Management is typically the Management of Buffers


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Critical Chain is another schedule network analysis technique that modifiesthe project schedule to account for limited resourcesThe Critical Chain method adds duration buffers that are non-work scheduleactivities to maintain focus on the planned activity durationsCost Of Quality (COQ) are the cost types in modern quality managementoPrevention Costs,oAppraisal costs &oFailure costs

The key components of the communication modelinc lud e :

a. Encode.

b. Message.

c. Medium.

d. Noise.

e. Decode.Common formats forperformance reportsinc lu d eoBar charts,oS curves,oHistograms, andoTables.Face-to-face meetings are the most effective means for communicatinga ndresolving issues with stakeholders.Order of Magnitude estimates are also knows as conceptual, ballpark orpreliminary estimatesTight Matrix is putting all project personnel together. Also referred ascollocatedStrategies for Negative Risks or threats (AvoidTransferMitigate)Strategies for Postive Risks or Opportunities (ShareExploitEnhance)

Common Strategy for both threats and opportunities is AcceptanceThere are 3 stages ofreaction to stress(A la r m, Resistance & Exhaustion)Some of thet ra it s /q ua l it ies exhibited by effective leaders areoFlexibility,oAmbition,


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oIntelligence,oDecisiveness,oCreativity,oPersistence andoEnergyDetailed Tasks are detailed in Project Schedule, which is part of ProjectPlan and note its NOT WBS. WBS is a deliverable oriented documentAn abnormal trend is formed when seven or more consecutive data pointsreflect a steadily increasing or decreasing pattern over timeScope Verification is concerned with the acceptance of deliverables

Quality control is concerned with making sure the deliverables meet qualityrequirements. Quality Control is done first; both are Monitoring andControlling processes.Quality Assurance (Executing) is focused on process: process analysis,quality audits, etc.Quality Control (Monitoring and Controlling) is focused on sampling resultsto see if they meet quality standardsCode of Accounts identifies WBS items; Chart of Accounts monitors projectcosts by category

In decision tree, a circle is a chanceIn Precedence Diagramming Method (PDM) or Activity on Node (AON)network diagrams, nodes are activities and arrows are dependenciesIn Arrow Diagramming Method (ADM) or Activity on Arrow (AOA) networkdiagrams, arrows are activities and nodes are dependenciesDummies are only used onAD MADM tasks can only have FS relationshipsPDM uses one time estimate to determine duration, while ADM can use morethan one time estimate.Scope Verification is done during Project monitoring and controlling BUTProduct verification is done during the Project Closing

Audits:

o Quality Audit in Perform QA,

o Risk Audit in Risk Monitoring and Control,


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o Inspections and Audits in Contract Administration,

o Procurement Audits in Close Contracts

The outputs of process groupsar e :

o initiating: charter and preliminary scope statement;

o planning: project management plan;o executing: work results;

o monitoring: corrective actions;

o closing: project product.

Reporting formats:

o Forecast Report (what is expected to happen on a project),

o Progress Report (what happened since the last report),

o Status Report (state of the project at the current time),

o Earned Value Report (focuses on Earned Value Management),

o Variance Report (what happened vs. what should have happened).

Performance Reporting is a Controlling process. It creates PerformanceReports, which are comparisons of performance to the performancebaselines. These are typically done in tabular or graphical format.Information Distribution is an Executing process. It creates OrganizationalProcess Assets such as project presentations, stakeholder notifications andstatus reports.Develop Project Team is an Executing Process. It creates a TeamPerformance Assessment, and helps you determine what additional trainingwould be beneficial.Manage Project Team is a Controlling Process. It creates input toperformance appraisals as well as recommended changes, corrective actionsand preventative actions.Scope Baselinei nc l ud esoProject Scope Statement,oWBS, &oWBS DictionaryA large portion of the PMs time while the work is being done is spentmeasuring and implementing corrective actions

Project Close Process includes creation of two procedureso Administrative closure procedure and

o Contract closure procedure

The difference between the two is focus, formality and frequency.

Administrative closure focuses on closing the project or project phase


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whereas Contract closure focuses on closing a contract that is part of the

projectContingency Reserve (Known Unknowns) is for the risks remaining after the

Risk Response Planning Management Reserve (Unknown Unknows is any extra amount reserved that

cover unforeseen risks. Cost Baseline will include the Contingency Reserve. Cost Budget will include

the Management ReserveQuality is defined as the degree to which the project fulfills requirementQuality MUST BE PLANNED IN AND NOT INSPECTED INThe Project Managerultimately has the responsibility for the Product of theProject andSenior Management is responsible for the Quality of entire OrganizationCost of Nonconformance is greater than the cost of conformance

Most projects will fit one of the six needs and demands

o Market demand

o Business need

o Customer request

o Technological advance

o Legal requirement

o Social need

The project charter (which is an output of the Develop the Project Charter process) is the written

acknowledgment that the project exists. The project charter names the project manager and gives that

person the authority to assign organizational resources to the projectNet present value (NPV) assumes reinvestment is made at the cost of capitalIRR assumes reinvestment at the IRR rate and is the discount rate whenNPV is equal to zeroPayback period does not consider the time value of money and is thereforethe least precise of all the cash flow analysis techniquesPreliminary project scope statement describes the objectives of the projectand the high level requirements needed to satisfy stakeholder expectationsTheP MI S in the Develop Project Management Plan process includes a

subsystem called the configuration management systemChange control system, which is a subsystem of the configurationmanagement system

Stakeholder analysis is a tool and technique of Scope Definition used to determine and document the

needs, wants, and expectations of stakeholders and prioritize and quantify those needs into project

requirements


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The purpose of the project scope statement is to document the project objectives, deliverables, and

requirements so that they can be used to direct the project teams work and as a basis for future project

decisions

The scope statement further elaborates the project objectives, deliverables, requirements, and

constraints and assumptions defined in the preliminary scope statement. It serves as a basis for future

project decisionsAlternatives identification is a tool and technique of the Scope Definitionprocess that includes brainstorming and lateral thinking techniquesPoor scope definition might lead to cost increases, rework, schedule delays,and poor morale

According to the PMBOK Guide, functionality and specific conditions that must be met in order to satisfy

the project, contract, standard, or specification describe the criteria for requirements, not objectives

Product analysis (TT Scope Definition) includes techniques such as valueengineering, value analysis, systems analysis, systems engineering, productbreakdown, and functional analysis

The product scope description can be used as an input to the Scope Definition process when the project

charter and/or preliminary project scope statement are missingThe lowest level of any WBS is called the work package level

For the exam, remember that the key to DOE is that it equips you with a statistical framework that allows

you to change the variables that have the greatest effect on overall project outcomes at once instead of

changing one variable at a time.Quality checklists are an output of the Quality Planning process, andchecklist analysis is a tool and technique of the Risk Identification processCost-benefit analysis considers trade-offs in the Quality Planning processBenchmarking compares previous similar activities to the current projectactivities to provide a standard to measure performance against.Failure costs; is also known as the cost of poor quality. Failure costs includeboth internal and external costs.

Internal failure costs are costs associated with not meeting the customers expectations while you still hadcontrol over the product. This results in rework, scrapping, and downtime.

The process improvement plan is a subsidiary plan of the project management plan and targets

inefficiencies in a process or activity. The quality baseline is used to document the quality objectives of

the project and is used as a basis for future Quality processes


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The WBS dictionary should be documented with the code of account identifier, an SOW, the responsible

organization, and a milestone schedule for the WBS componentsDesign of experiments is a tool and technique of the Quality Planningprocess that provides statistical analysis for changing key product or processelements all at once (not one at a time) to optimize the process

According to the PMBOK Guide, the risk management plan should include

the following elements:

o Methodology

o Roles and responsibilities

o Budgeting

o Timing

o Risk categories

o Definitions of risk probability and impact

o Probability and impact matrix

o Revised stakeholder tolerances

o Reporting formats

o Tracking

The output of the Risk Identification process is the risk register. The risk

register contains the following elements:

o List of identified risks

o List of potential responses

o Root causes of risks

o Updated risk categoriesRisk urgency assessment is a tool and technique of Qualitative Risk Analysis

processQualitative Risk Analysis is a fast and easy method of determiningprobability and impactThe risk management plan details how risk management processes will beimplemented, monitored, and controlled throughout the life of the project.

The risk management plan does not include responses to risks or triggers. Responses to risks are

documented in the risk register as part of the Risk Response Planning process

The information-gathering techniques in the Risk Identification process are

o brainstorming,

o the Delphi technique,

o interviewing,

o root cause identification, and

o SWOT analysis.Quantitative Risk Analysis analyzes the probability of risks and theirconsequences using a numerical rating


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Monte Carlo analysis is a simulation technique & not a Modeling technique

When the question describes sensitivity analysis, which is a tool and technique of the Quantitative Risk

Analysis process. Tornado diagrams are often used to display sensitivity analysis data

The simplest form of Risk Analysis is Sensitivity Analysis

Following options are diagramming techniques of the Risk Identification

process

o Ishikawa diagram

o Process flowchart

o Influence diagramPassive acceptance is when the team has decided to take no action andmake no plans for the risk. This is a strategy that can be used for eitherpositive or negative risks.

The PMBOK Guide divides contracts into three categories:o Fixed price or lump sum (biggest risk is borne by the seller & good when

original scope is well defined)

o Cost reimbursable (biggest risk is borne by the buyer)

o Time and materials (T&M)

Understand the difference between bid and/or quotation and proposal for the exam. Bids or quotations

are used when price is the only deciding factor among bidders. Proposals are used when there are

considerations other than price

A contract statement of work (SOW) contains the details of the procurement

item in clear, concise terms. It includes the following elements:o The project objectives

o A description of the work of the project and any post project operational

support needed

o Concise specifications of the product or services required

o The project schedule, time period of services, and work location

According to the PMBOK Guide, using templates and checklists is one way to ensure that you dont miss

any key responsibilities when planning the project and will help reduce the amount of time spent on

project planning

According to the PMBOK Guide, theRAM (Responsibility Assignment Matrix) relates the OBS to the WBSto assure that every component of the work of the project is assigned to an individual.

The letters in the acronymRA CI (sample portion of a type of RAM) are the

designations are

o R = Responsible for performing the work

o A = Accountable, the one who is responsible for producing the deliverable

or work package and approves or signs off on the work


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o C = Consult, someone who has input to the work or decisions

o I = Inform, someone who must be informed of the decisions or resultsThe RAM and RACI charts are tools and techniques of Human ResourcePlanning process

Standard forms are a tool and technique of the Plan Contracting process.Standard forms can be nondisclosure agreements, standardized contracts,and so on.Plan Purchases and Acquisitions can directly influence the project schedule,and the project schedule can directly influence this processResource availability is an output of the Acquire Project Team and SelectSeller processes

For the exam, remember that resource availability isnt determined until the Executing stage and becomes

an input to the Activity Resource Estimating process

Remember that you cannot perform Schedule Development until you have completed all the following

processes of project Planning: Scope Planning, Scope Definition, Create WBS, Risk Identification, Risk

Response Planning, Plan Purchases and Acquisitions, Activity Resource Estimating, Activity Definition,

Activity Sequencing, and Activity Duration EstimatingSchedule Development has 10 tools and techniques:

o Schedule network analysis (produces the project schedule)

o Critical path method ()

o Schedule compression

o What-if scenario analysis

o Resource levelingo Critical chain method

o Project management software

o Applying calendars

o Adjusting leads and lags

o Schedule model

The higher the standard deviation is for an activity, the higher the risk. Since standard deviation measures

the difference between the pessimistic and the optimistic times, a greater spread between the two, which

results in a higher number, indicates a greater risk. Conversely, a low standard deviation means less risk

Monte Carlo is a simulation technique that shows the probability of all thepossible project completion datesMonte Carlo analysis can be used in the Schedule Development process todetermine multiple, probable project durationsResource leveling can cause the original critical path to change.CPM manages the total float of schedule networks paths, whereas criticalchain manages buffer activity durations and resources


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Cost aggregation (TT of Cost Budgeting) is the process of tallying theschedule activity cost estimates at the work package level and then totalingthe work package levels to higher level WBS component levelsFunding limit reconciliation (TT of Cost Budgeting) involves reconciling theamount of funds spent with the amount of funds budgeted for the projectCost baselines are displayed as an S curve.The primary output of Cost Estimating is activity cost estimatesParametric estimating multiplies a known elementsuch as the quantity ofmaterials neededby the time it takes to install or complete one unit ofmaterials. The result is a total estimate for the activity

The project schedule determines the start and ending dates of activities, determines float times, generally

shows resource assignments, and details the activity sequences and durations.

Motivation can be extrinsic or intrinsic.o Extrinsic motivators are material rewards and might include bonuses, the

use of a company car, stock options, gift certificates, training opportunities,

extra time off, and so on

o Intrinsic motivators are specific to the individual. Some people are just

naturally driven to achieveits part of their nature

The introduction of a new team memberwill start the formation anddevelopment of the team all over again with the forming stageTeams in the norming stage of Develop Project Team exhibit affection andfamiliarity with one another and make joint decisionsRequest Seller Responses obtains bids and proposals from vendors.Select Sellers is the receipt of bids and proposals and the selection of avendor Independent estimates (TT of Select Sellers), also called should costestimates, are a way to check proposed pricingFait accompli is a tactic used during contract negotiations where one partyconvinces the other that the particular issue is no longer relevant or cannotbe changed

The process analysis technique (TT of Perform Quality Assurance process) includes root cause analysis

to analyze a problem and solution and to create preventive actions

You are preparing project performance appraisals and have decided youd like each team member to get

feedback regarding their performance from several sources, including peers, superiors, and subordinates.

This is called 360-degree feedback and is part of the project performance appraisals tool and technique

of the Manage Project Team process.


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Understand for the exam that configuration managementinvo l ves

o identifying the physical characteristics of the product, service, or result of

the project (or its individual components); o controlling changes to those

characteristics; and o Documenting changes to verify that requirements are

met.

o It also includes the change management system ando documents the process for requesting, tracking, and determining whether

change requests should be approved or denied.

Activities associated with configuration change management in the

Integrated Change Control process

o Configuration identification

o Configuration status accounting and

o Configuration verification and auditingIntegrated Change Control, Schedule Control, and Cost Control are all

concerned with three issues:o influencing the things that cause change,

o determining that change is needed or has happened,

o and managing the changeChange control systems are documented procedures that describe

o How to submit change requests.

o They track the status of the change requests,

o document the management impacts of change,

o track the change approval status, and

o define the level of authority needed to approve changes.

Change control systems do not approve or deny the changesthats theresponsibility of the configuration control board (CCB)The configuration control board (CCB) has the authority to approve or denychange requests. Their authority is defined and outlined by the organization

Recommended corrective action is an output of several of the change control processes, including

Scope Change Control, Schedule Control, Cost Control, Risk Monitoring and Control, and Perform Quality

Control.Approved corrective action is an output of the Integrated Change Controlprocess. Remember that Integrated Change Control is where all change

requests are processed and either approved or denied.Also note that corrective action is an output of the Monitoring andControlling processes and an input to the Executing processes

Cost variances (both positive and negative) are calculated using aperformance measurement analysis tool (specifically earned valuetechniques)


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EVT (earned value techniques) compares what youve received or producedto what youve spent.Workarounds are unplanned responses. Workarounds deal with negative riskevents as they occur.

Schedule variances will sometimesbut not alwaysimpact the schedule. Changes to noncritical pathtasks will not likely impact the schedule, but changes to critical path tasks will always impact the scheduleBudget updates might require cost rebaselining

You can remember the difference between Scope Verification and Perform

Quality Control this way:

o Scope Verification = accepting work results

o Perform Quality Control = checking for correct work results (assuring that

the quality requirements are met)

Projects come to an end for several reasons:

o Theyre completed successfully.

o Theyre canceled or killed prior to completion.

o They evolve into ongoing operations and no longer exist as projects.

Four formal types of project endings exist that you might need to know for

the exam:

o Addition

o Starvation

o Integration

o Extinction

For the exam, remember that product verification performed during the Closing processes determines

whether all of the work of the project was completed correctly according to the contract terms and

satisfactorily according to stakeholder expectations, whereas product documentation is verified and

accepted during the Scope Verification process. One more note: when projects end prematurely, the

Scope Verification process is where the level of detail concerning the amount of work completed gets

documented.Contract documentation is an input to both the Close Project and ContractClosure processes

Note PMI defines Scope Statement as the basis for making future project decisions and for confirming

or developing common understanding of project scope among project stakeholders.Scope Verificationo Verified work resultsPerform Quality Controlo Assured quality requirements were metClose Project


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o Product verification (work was correct and satisfactory)

o Collecting project documents

o Disseminating final acceptance notice

o Documenting lessons learned

o Archiving project records

Contract Closureo Product verification (work was correct and satisfactory)o Formal acceptance and closureWBS element changes are scope changes. Schedule revisions are oftenrequired as a result of scope changes.Close Project and Contract Closure are the processes in the Closing processgroup and are performed in that order

The work performance information is reviewed to determine the status of project activities and make

certain the project goals and objectives are met. This is an input to the Close Project process

According to the PMBOK Guide, the procurement audit examines the procurement process from

Procurement Planning through Contract AdministrationIntegrity means adhering to an ethical standardHammocks are summary-level activities or aggregate activities shown as asummary activity on a project schedule network diagram.Contract Negotiation has 5 Sequential steps (Note Agreement is AFTER

Closure)

o Protocol

o Probing

o Scratch Bargaining

o Closure and

o AgreementThe Primary Objective of establishing a Quality Assurance Process is ForQuality Improvement

Quality Function Deployment Process identifies what the customers needs are (Spoken/unspoken

words) and translates those needs into technical requirements. Appropriate for each stage of the product

development life cycle

Decision Tree is a diagram that describes a decision under consideration andthe implications of choosing one of the alternatives

The Project Charterprovides the

o high level requirements,

o constraints,

o assumptions,


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o stakeholders and

o the measures of success.Based on this information, or the lack of it, the Charter is an excellentsource to start to identify the Project Risks

9 bilitiesMaintainability: The ability of a unit to be restored within a specified time to

its performance capability under the environmental operating conditions

within a specified, average period of time

Usability: is the ability of a product to perform its intended function for the

specified user under the prescribed conditions

Reliability: is the degree to which a unit of equipment performs its intended

function under specific conditions for specified period of time

Availability: is the probability of the product being capable of performing a

required function when called upon

Activity Resource Estimating involves determining what physical resources(People, Equipment, etc) and what quantities should be used and when theywould be needed to perform project activitiesPhysical limitations are an attribute of Mandatory DependenciesA Project Phase is Marked by the completion of one or more deliverablesA Product Description should define the relationship between the productthat is being created and the business needContingency Plans can be best described as Planned responses to RiskEvents

Staff assignments and resource availability are the outputs of Acquire theProject Team ProcessComplex and large projects would be more effectively managed in Strongand Projectized StructureIf Changes are well defined, its Fixed Price Contract but if they are not thenits T & M

Contract Management Plan is an OUTPUT to Select Seller ProcessPunitive Damages are the damages intended to punish the wrong doerUtility Theory considers the pains or tolerance level a stakeholder has torisk

There are three key components to a Risk

o Risk Event (The Event)

o Probability of the Event

o Impact or Effects of the Event (Amount at Stake)


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Delhi technique is a Consensus TechniqueResidual Risk are those that Remain after Risk Responses have been taken

Inputs to Performance Reportinga r e

o Work Performance Informationo Performance Measurements

o Forecasted Completion

o QC Measurement

o Project Plan

o Approved Change Requests and

o DeliverablesInterpersonal communication takes three forms

o Verbal

o Non-verbal and

o WrittenWhen distributing information, the total message impact from the sender iso7% words ,o38% vocal tones ando55% body language

A Planning Package is a WBS component below the control account but above the work package. It is

used for planning unknown work content that does not have detailed schedule activities

There are two types ofDecision Models that can be used for Project

Selection during the initiation Process

o Comparative (Benefit measurement Rating) Models

o Constrained (Mathematical Decision Models)

Comparative (Benefit measurement Rating) Models

o Decision Tree

o Criteria Profiling

o Weighted Factor

o Q-Sorting

o Delphi Technique

Constrained (Mathematical Decision Models)

o Logical Framework Analysis

o Linear Program ProgrammingThe Control Points in the WBS used for isolated assignment to workcenters are referred to as the Control Account PlanControl account Plan (CAP) is a management control point where the


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integration of scope, budget and schedule take place and where the measurement of performance takes

place. These CAPS are placed at the selected management points in the WBS.Cost Estimates include All Resources to be charged to the ProjectA Control Account is a management control point that can be placed at

selected management points of the WBS above the Work Package Level

To convey information between two or more parties, the communication

process must have a medium. The three most common mediaa re

o Visual

o Auditory and

o Tactile

Four steps of performing RCA (Root Cause Analysis) are

o Data Collection

o Casual Factor Charting

o Root Cause Identification

o Recommendation Generating and ImplementationScatter Diagrams are used to investigate the possible relationship betweentwo variables that both relate to the same EVENTBCR (Benefit Cost Ratio) compares the benefits to the costs of the projectwhere the Benefits are the same as Revenues or often referred to as thePayback period

Project performance is impacted by Four Basic Cultures

o World

o National

o Business and

o LeadershipWhen one considers their Culture to be superior, they are calledEthnocentricUse of personal space during social interaction is known asProx em ic s Riskisthe

notionofdealingwithUncertaintyo Knows at the extreme end of the Uncertainty Spectrum will definitelyaffectyou,althoughyou


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havenocontrolover

them o

Knows-Unknowns are items that will affect you although you are not able to

predicthoworhowmuchtheywilleffect

you o

Unknown Unknowns are items or situations whose existence we cannot imagine

A Records Management Systems is a specific set of processes, related control functions and automation

tools used by the PM to manage contract documentation and records. Its the TT of ContractAdministration ProcessParametric (Top Down) uses historical data and statistical relationships todetermine costsConstructive team roles include Initiators, Information seekers, Informationgivers, Encouragers, Clarifiers, Harmonizers, Summarizers and Gate KeepersDestructive team roles include Aggressor, Withdrawer, Blocker, Devilsadvocate, Recognizer, Topic Jumper and Dominator

To Complete Performance Indicator (TCPI) determines the cost performance efficiency required to

complete the project within the original budget (BAC) or revised budget (EAC);TCPI > 1 is NOT good; To calculate TCPI, take the value of the workremaining over the value of funds remainingEustress is a stress that will motivate and contribute to an increase inperformance

Quantitative based durations (Parametric technique) multiply a known element, like lines of code required

by the time it takes to develop one line of code. The result is the total estimate for the activityQuality Metrics are the Outputs of Quality Planning. It is an operationdefinition that describes what something is and how it will be measured

in very specific termsStraight-line depreciation is the simplest method of depreciating an asset

and is frequently utilized on a project to determine its economic feasibility. Straight-line depreciation is a

method that divides an assets cost and its expected salvage value by its expected utilization periodPerformance Reporting is an INPUT to all Control Process (Except QualityControl)


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Decision Trees are considered Quantitative while Influence diagramareconsidered Qualitative.

Influence diagram shows the dependencies among the variables moreclearly than the decision treeA Bill of Material (BOM) describes the product in terms of its assemblies,sub-assemblies and basic partsAllowing Automatic Approval of changes is a function of the ChangeControl System and NOT Configuration ManagementContingency Plan document outlines the actions to be taken if an identifiedrisk event should occurVariable and attribute sampling are forms of acceptance sampling.Variable sampling evaluates a characteristic measured on a numerical scaleAttribute sampling tests for defective or non defective

Parametric Modeling applies to only Project with Similar characteristics

The point of total assumption (PTA) is a price determined by a fixed price plus incentive fee contract

(FPIF) above which the seller bears all the loss of a cost overrun. It is also known as the "most

pessimistic costVariance analysis involves comparing actual project results to planned orexpected resultsTrend analysis involves examining project results over time to determine ifperformance is improvingHistorical Records need to collect and use for planning, estimating and riskKickoff meetings are importantDo not introduce benefits that are not stated in requirementsNeeds of all stakeholders should be taken into account during all projectsTeam Members must be involved in project planningProject Mangers must be pro-activeProject Phases are marked by the completion of a deliverableo

Tangible, verifiable work productoReview of deliverables and approval/denial are phase exits, stagegates, or kill pointsPhases are collected into the Project Life CycleSet of defined work procedures to establish management control


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Project Management SkillsoGeneral Business Management (consistently producing resultsexpected by stakeholders)oLeading (establishing direction, aligning resources, motivating)oCommunicating (clear, unambiguous, and complete)oNegotiating (conferring with others to reach an agreement)oProblem Solving (definition and decision making)oDistinguish causes and symptomsoIdentify viable solutionsoInfluencing Organization (understanding power and politics)Socioeconomic Influences

oStandards document approved that provides common, repeateduse, rules and guidelinesoCompliance is not mandatoryoRegulations document that identifies products, services orcharacteristicsoCompliance is mandatoryoStandards often become de facto regulationso

InternationalizationoCultural InfluencesInitiating and Planning ProcessesCommitting the organization to beginInitiation, High-level planning, CharterAmount of planning proportional to the scope of the project Core PlanningoScope Planning written statement

oScope Definition subdividing major deliverables into moremanageable unitsoActivity Definition determine specific tasks needed to produceproject deliverablesoActivity Sequencing plotting dependencieso


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Activity Duration Estimating determine amount of work neededto complete the activitiesoSchedule Development analyze activity sequences, duration, andresource requirementsoResource Planning identify what and how many resources areneeded to perform the activitiesoCost Estimating develop resource and total project costsoCost Budgeting allocating project estimates to individual workitemsoProject Plan Development taking results from other planningprocesses into a collective documentPlanning/Facilitating Processes manage the interaction among theplanning processeso

Quality Planning standards that are relevant to the project anddetermining how to meet standardsoOrganizational Planning identify, document, and assigningproject roles and responsibilitiesoStaff Acquisition obtaining the human resourcesoCommunications Planning determining rules and reportingmethods to stakeholdersoRisk Identification determining what is likely to affect the projectand documenting these risks

oRisk Quantification evaluating risks and interactions to accessthe possible project outcomesoRisk Response Development defining enhancement steps andchange control measuresoProcurement Planning determining what to buy and whenoSolicitation Planning documenting product requirements andidentifying possible sourcesExecuting Processes

oProject Plan Execution performing the activitiesoComplete Tasks/Work PackagesoInformation DistributionoScope Verification acceptance of project scopeoQuality Assurance evaluating overall project performance on a


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regular basis; meeting standardsoTeam Development developing team and individual skill sets toenhance the projectoProgress MeetingsoInformation Distribution making project information available ina timely manneroSolicitation obtaining quotes, bids, proposals as appropriateoSource Selection deciding on appropriate suppliersoContract Administration managing vendor relationshipsControlling Processes needed to regularly measure project performanceand to adjust project planTake preventive actions in anticipation of possible problems

oChange Control coordinating changes across the entire projectplanoScope Change Control controlling scope creepoSchedule Control adjusting time and project schedule of activitiesoCost Control managing project budget

oQuality Control monitoring standards and specific project results;eliminating causes of unsatisfactory performance

oPerformance Reporting status, forecasting, and progressreporting scheduleoRisk Response Control responding to changes in risk during theduration of the projectClosing ProcessesoAdministrative Closure generating necessary information toformally recognize phase or project completionoContract Close-out completion and delivery of projectdeliverables and resolving open issuesoProcurement AuditsoProduct VerificationoFormal AcceptanceoLessons Learnedo


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Update RecordsoArchive RecordsoRelease TeamProject Integration ManagementoEnsures that the project processes are properly coordinatedoTradeoffs between competing objectives and alternatives in order tomeet stakeholder approvaloProject Plan DevelopmentoProject Plan ExecutionoOverall Change ControloThese processes may occur repeatedly over the project duration

oHistorical Records are needed to perform project management well,they are inputs to continuous improvementoFilesoLessons LearnedoActual CostsoTime EstimatesoWBS

oBenchmarksoRisksProject Plan DevelopmentoUses outputs from other planning processes to create consistentdocument to guide project execution and controloIterated several timesoDocuments planning assumptions

oDocuments planning decisions that are chosenoFacilitates communicationoDefines key management reviewsoProvides a baseline to track progress measurement and projectcontrol


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Project Plan Development InputsoOther planning outputs: primarily the planning process outputs(WBS, base documents, application area inputs)oHistorical information verify assumptions, records of past projectperformanceoOrganizationalpolicies

qualitymanagement,personneladministration, Financial controlsoConstraints factors that limit performance, contractual provisions,budgetoAssumptions risk factors

Tools & Techniques for Plan Development

oProject Planning Methodology any structured approach (software,templates, forms, start-up meetingsoStakeholder Skills & Knowledge tap into plan development; useexpertise for reasonablenessoPMIS Out of the box approach to support all project aspectsthrough closure

Project Plan Development OutputsoProject Plan is a collection that changes over time as moreinformation about the project becomes availableoBaseline will change only in response to approved scope changeoProject Plan includes some or all of the following:oProject CharteroProject Management approach or strategyoScope statementoWork Breakdown Structure (WBS)oBudget, schedule, risksoKey Staff, Major MilestonesoChange Control Plan, Management and Communications Plan


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Project Plan ExecutionoPrimary process for carrying out the project planoMost costly aspect of project managementoDirection of organizational resources and interfacesProject Plan Execution Inputs:oProject PlanoSupporting DetailoOrganizational PoliciesoCorrective Action anything to bring expected performance in linewith the project planTools & Techniques for Plan Execution

oGeneral Management SkillsoProduct Skills and Knowledge defined as part of planning, providedby staffingoWork Authorization System formal procedure for sanctioning workto ensure completion written or verbal authorizationoStatus review meetings regular exchanges of informationoProject Management Information Systemo

Organizational ProceduresProject Plan Execution OutputsoWork results the outcome of activities performed is fed into theperformance reporting processoChange Requests expand/shrink project scope, modify costs andschedule estimatesOverall Change ControloInfluencing factors that create change to ensure beneficial results;

ensure that change is beneficialoDetermining that change has occurredoManaging actual changes as they occur

Evaluate impact of change

Meet with team to discuss alternatives


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Meet with management to present decisionChange control requiresoMaintaining integrity of performance measurement baselines (projectplan)oEnsuring changes to scope are accurately recordedoCoordinating changes across knowledge areas (scheduling, risk, cost,quality, etc.)

oDetermine all factors that control change and pro-actively preventingthe occurrence; evaluate the impact of changeInputs to Change ControloProject Plan baseline performanceo

Performance Reports issue tracking, risk managementoChange Requests orally or written, externally or internallyinitiates, legally mandated or optionalChange Control Tools & TechniquesoAll Changes must be evaluated before a decision can be reachedoChange Control System collection of formal procedures,paperwork, tracking systems, approval levelsoChange Control Board decision making authority

oConfiguration Management documented procedure to applytechnical and administrative direction

ID and document functional and physical characteristics

Control changes to these characteristics

Record and report change and implementation status

Audit items and system to verify requirementsoPerformance Measurement earned value, plan variance analysisoAdditional Planning revised cost estimates, modify activitysequences, plan adjustmentsoProject Management Information SystemoChange Control System may have

Change Control Plan


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Change Control Board

Change Control Procedures, Corrective Action plans

Performance Statistics, Reports, Change forms

Specification reviews, Demonstrations, Testing, MeetingsoConfiguration ManagementChange Control OutputsoProject Plan UpdatesoCorrective ActionsoLessons Learned variance causes and reasoning documented forhistorical purposesConfiguration Management

oRigorous Change Management as it relates to scope

Subset of the change control systemWork Authorization SystemoControls gold plating; defines what task is/is notMeetingsoMost are inefficient; keep minuteso

Status can be determined without meetingLessons LearnedoProject is not complete until a Lessons Learned is completedoWhat have we done, how can we do it better

Technical Aspects of the project

Project Management (WBS, plans, etc.)

Overall Management (communications, leadership)

Best to have whole team complete and made available

Also called Post MortemProject Scope ManagementoProcesses required to ensure that the project includes all, and only,work requiredo


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Defining what is/is not included in the projectoProject scope work that must be done measured against projectplan

oProduct scope features and functions included in the product orservice measured against requirementsInitiation process of formally recognizing that a new project exists, or anexisting project continue to next phaseInvolves feasibility study, preliminary plan, or equivalent analysisAuthorized as a result of:oMarket DemandoBusiness Needo

Customer RequestoTechnological AdvanceoLegal RequirementInitiation Inputs:

Product Description characteristics of the product/service thatthe project was to createLess detail in early phases, more comprehensive in latter

Relationship between product/service and business needShould support later project planningInitial product description is usually provided by the buyer

Strategic Plan supportive of the organization's goals

Project Selection Criteria defined in terms of the product andcovers range of management concerns (finance, market)

Historical Information results of previous project decisionsand performance should be consideredSigned contractProject Manager Identification & Authority levelSenior Management approvalProjects Goals and Objectives -Constraints factors that limit project management teams


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optionsAssumptions factors that are considered true for planningpurposes. Involve a degree of riskScope Planning process of developing a written statement as basis forfuture decisionsScope Definition subdividing major deliverables into smaller,manageable components

Improve accuracy of cost, time, and resource estimates

Define a baseline for performance measurement

Clear responsibility assignments

Critical to project success reduces risk of higher cost, redundancy,time delays, and poor productivity

Defines what you are doing; WBS is the toolScope Change Control:

Influencing factors to ensure that changes are beneficial

Determining scope change has occurred

Managing changes when they occur

Thoroughly integrated with other control processesProject Time Management

Processes required to ensure timely completion of the project

No consensus concerning differences between activities and tasks

Activities seen as composed of tasks most common usage

Other disciplines have tasks composed of activitiesActivity Definition: identifying and documenting specific activities toproduce project deliverables identified in the WBS

Must be defined to meet the project objectives

Activity Sequencing identifying and documenting interactivedependencies among activities. Support later development of a realisticschedule

Project Management software often usedNetwork Diagrams


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Shows how the project tasks will flow from beginning to endProves how long the project will take to complete

Takes project tasks from low levels of WBS and placing them intotheir order of completion (beginning to end)Activity Duration Estimating

Involves assessing number of work periods needed to completeidentified activities

Requires consideration of elapsed time, calendars, weekends, andday of week work startsSchedule Development

Determining start and finish dates for project activities

Without realistic dates, project unlikely to be finished as scheduled

Schedule development process often iterates as more informationbecomes available (process inputs)Key Definitions:

Slack (Float): the amount of time a task can be delayed withoutdelaying the entire project. Tasks on critical path have no slack.Slack is calculated by the difference between Early Start andLate Start of a task

Free Slack (Float): the amount of time a task can be

delayed without delaying the early start date of its

successorTotal Slack (Float): the amount of time a task can bedelayed without delaying the project completion date

Lag: inserted waiting time between tasksGeneral Comments:

Projects can have more than 1 critical path (increases risk) and caninvolve dummy tasks

Negative float indicates that you are behind

Resource Leveling involves possibly letting schedule and cost slip

Heuristics just means rule of thumb e.g. 80/20 rule

Schedules are calendar based makes this different than a timeestimate


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Bar Chart a.k.a. Gantt chart (track progress, report to entireteam including stakeholders, control tool)Network Diagram (to show task inter-dependencies, showproject organization, basis for project control)Milestone chart (report to Senior management, shows majorevents)

To shorten project schedule examine the critical pathCrashing add more resources to the critical path tasks

Usually results in increased costFast Tracking performing tasks in parallel

Can result in re-work and increased risk

Best to select method that has least impact on the project

Bar (Gantt) ChartsWeak Planning Tool, effective progress and reporting toolDoes not show interdependencies of tasksDoes not help organize the project more effectively

Network Diagrams (PERT, CPM, PDM)Shows task interdependencies

Aids in effectively planning and organizing work

Provides a basis for project control

Milestone ChartsOnly shows major eventsGood for reporting to management and customer

Flow ChartsDepicts workflow and not commonly used for projectmanagement

Free Slack (Float) amount of time a task can be delayed withoutdelaying the early start date of its successor

Total Slack (Float) amount of time a task can be delayed withoutdelaying the project completion dateLag inserted waiting time between tasks


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Resource Leveling level peaks of resource usage; stable numberof resources allows schedule and cost slip in favor of levelingresourcesHeuristic rule of thumb (80/20 rule)Project Cost Management

Ensure that the project is completed within budget

Concerned with cost of resources needed to complete activities;

consider effect of project decisions on cost of using product life-cycle

costingMost prospective financial impact of using the product is outside theproject scope

Consider information needs of stakeholders, controllable and

uncontrollable costs (budget separately for reward and recognition

systems)Estimating should be based on WBS to improve accuracy

Estimating should be done by the person performing the work

Having historical records is key to improving estimates

Costs (schedule, scope, resources) should be managed to estimates

A cost (schedule, scope, baseline) should be kept and not changed

Plans should be revised as necessary during completion of work

Corrective action should be taken when cost problems (schedule,scope and resources) occur.Resource Planning:

Determining what physical resources and quantities are needed toperform workCost Estimating:

Develop approximate costs of resources

Distinguish estimating from pricingEstimating likely amountPricing business decision

Identify alternatives and consider realigning costs in phases to theirexpected savings


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Cost Budgeting

Involves allocation of total estimate to individual work to establish acost baseline to measure performanceCost Control

Concerned with influencing factors that create changes to the costbaseline that are beneficial

Determining that the cost baseline has changed

Managing actual changes as they occurMonitor cost performance to detect variancesRecord all appropriate changes accurately in the cost baselinePreventing incorrect, unauthorized changes being included in

the cost baseline

Informing stakeholders of authorized changesDetermine the whys of positive and negativevariancesIntegrated will all other control processes (scope,change, schedule, quality)Earned Value Analysis

Terms:BAC Budget at Completion (how much did you budget forthe total job)EAC Estimate at Completion (what do we expect the totalproject to cost)ETC Estimate to Completion (how much more do we expectto spend to finish the job)VAC Variance at Completion (how much over/under budgetdo we expect to be)

FormulasVariance (Plan Actual)Cost Variance (CV): BCWP ACWP; negative is over budgetSchedule Variance (SV): BCWP BCWS; negative is behindschedule


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Cost Performance Index (CPI):B CWPACWPSchedule Performance Index (SPI):B CWPBCWS

I am only progressing x % of the planned rateEstimate at Completion (EAC):BA CCPI

As of now we expect the total project to cost x$Estimate to Complete (ETC): EAC ACWP; how much will itcost from now to completionVariance at Completion: BAC EAC; when the project isover how much more or less did we spend (most common wayof calculating EVA

Accuracy of Estimates

Order of Magnitude Estimate: -25% - 75%; usually made duringInitiation Phase

Budget Estimate: -10% - 25%; usually made during the Planningphase

Definitive Estimate: -5% - 10%; usually made during the Planningphase

Accounting Standards

Sunk Costs: expended costs. Sunk costs should not be considered

when determining to continue with a troubled projectLaw of Diminishing Returns: the more that is put in the less of anoutcome is received

Working Capital: current assets current liabilities

Variable Cost: costs that change with the amount of production orthe amount of work (materials, wages)

Fixed Cost: non-recurring costs that do not change

Direct Cost: directly attributable to project work (travel, wages,

materials)Indirect Cost: overhead items or costs for the benefit of more thanone project (taxes, fringe benefits)

Depreciation: assets lose value over timeStraight Line depreciation: same amount is taken each year


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Accelerated Depreciation: 2 formsDouble Declining Balance

Sum of the Years Digits

Life Cycle Costing: includes operations and maintenance phases

Value Analysis: find a less costly way to do same work

Make or Buy decisions at Development (Planning) phase, notconceptual phase

Definitive Estimate most precise/accurate estimate fordetermining project costs

Management Reserve over time PM wants no change to reserve;customers wants $ back

Cost and Schedule Data predicts future performance

ROI, Nest Present Value and Discounted Cash Flow all can beused to measure total income vs. total $ expended

Undistributed budget budget that contains approved scopechanges but are not planned yet

Depreciation is not a measurement of profitability

Pay Back Period - # of periods required to recover the initialinvestment

Project Quality Management

Processes required to ensure that the project will satisfy the needsfor which it was designed

Includes all activities of the overall management function that

determine the quality policy, objectives, and responsibilities. These

are implemented by quality planning, quality control, quality

assurance, and quality improvement.3 major processes:

Quality Planning identifying quality standards that are relevant to

the project (Plan); Project Manager, Project OwnerQuality Assurance evaluating overall project performance toprovide confidence that project will satisfy relevant quality standards(Implement or Execution); Project Team

Quality Control monitoring specific results to comply with qualitystandards and eliminating unsatisfactory performance causes (Checkor Control); Project Manager, Project Team


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Compatible with ISO 9000 and 10000 seriesProprietary and non-proprietary approaches (total qualitymanagementMust address the management of the project and the productof the project

Quality the totality of characteristics of an entity that bear on its ability tosatisfy stated or implied needs

Critical aspect is to turn implied needs into stated needs throughproject scope management

Do not confuse with grade category or rank given to entitieshaving the same functional use but different requirements for quality

Customer satisfaction conformance to specifications (mustproduce what is stated) and fitness for use (must satisfy real needs)

Prevention avoid mistakes vs. cost of correctionManagement responsibility requires participation of team;responsibility of management to provide resources

Processes within phases plan-do-check-act cycle

Recognize that the investment in product quality

improvements may be borne by the performing organization

since the project may not last long enough to reap rewardQuality Planning

Identify quality standards are relevant and how to satisfy

Quality Assurance

All planned and systematic activities implemented within the quality

system to provide confidence that the project will satisfy quality

standardsQuality Control monitoring specific results to determine if they complywith quality standards and identifying ways to eliminate causes ofunsatisfactory results

Includes project (deliverables) and management (cost and scheduleperformance) results

Awareness of statistical quality controlPrevention (keep errors out of process) and inspection (keeperrors from customers)Attribute sampling (result conforms) and variable sampling


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Special Causes (unusual events) and random causesTolerances (acceptable range) and control limits (result fallswithin range)

Tips from the Review Guide

Philosophy: definition of quality, avoidance of gold plating givingcustomer extras, prevention over inspection

Conformance to requirements, specifications and fitness of use

Quality Management processes required to ensure that theproject will satisfy the needs for which it was undertaken

Continuous Improvement- small improvements to reduce costsand ensure consistency

Marginal Analysis optimal quality is reached at the point when

revenue from improvement equals the costs to secure itJust in Time- decrease amount of inventory/decrease investment

ISO 9000 or 10000 standards to ensure that corporations followtheir own quality procedures

Total Quality Management continuous improvement in businesspractices

Normal Distribution most common probability used to measurevariations

Standard deviation (sigma) measure how far away from themean (dotted vertical line)

3 or 6 sigma represents level of quality+/- 1 sigma equal to 68.26%+/- 2 sigma equal to 95.46%+/- 3 sigma equal to 99.73%+/- 6 sigma equal to 99.99%

Responsibility to quality entire organizationUltimate employeeOverall or Primary Project ManagerDesign and Test Specifications engineer

Prevention over inspection quality must be planned in notinspected in


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Cost of conformance vs. non-conformanceQuality Training vs. reworkStudies vs. ScrapSurveys vs. Inventory Costs and warranty costs

Quality Planning (Plan) determine what will be quality onproject and how quality will be measured done during PlanningPhasesIdentifying which standards are relevant to project how tosatisfy them

Benchmarking look at past projects to determine ideas forimprovement

Cost Benefit AnalysisFlowcharts (fishbone)Design of Experiments

Quality Assurance (Implement) determine if your measurementof quality is appropriate done during Execution phasesProcess of evaluating overall performance on a regular basisQuality Audits structured review of quality activities thatidentify lessons learned

Quality Control (Check) perform the measurement and compareto the quality plan done during Control phases

Process of monitoring specific project results to determine if

they comply with relevant quality standards and identify ways

of eliminating unsatisfactory performancePerformance of the measurement or process, using qualitycontrol tools checking workQuality Control Tools

Pareto Diagrams 80/20 rule the chart presentsthe information being examined in its order of priorityand helps focus attention on the most critical issues

Fishbone diagram (Cause and Effect)

A creative way to look at the causes or potentialcauses of a problem


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Helps stimulate thinking, organizes thoughtsand generates discussion

Can be used to explore a desired futureoutcome and the factors to which it relates

Checklists list of items to inspect

Control Charts graphic displays of the results overtime used to determine if a process is in control

Upper and Lower Control Limits two

dashed lines show the acceptable range of a

variation range determined by companys

quality standard (sigma)Mean line in the middle shows middle ofthe range of acceptable results

Specification Limits 2 solid lines outside theupper and lower control limits represent thecustomer's expectations/requirements of qualityQuality Control Tools

Out of Control process is out of controlwhen:

A data point falls outside of the upper or lowercontrol limit

Non-random data points are within the upper

control and lower control limitsRule of 7 non-random points outside themean - process should be investigated

Assignable Cause data point the requiresinvestigation to determine the cause of thevariationPMI and Deming

Cost of conformance 85% of costs of quality areresponsibility of Management

Quality Training Rework

Studies Scrap

Surveys Inventory and Warranty costsCrosby absolutes of quality


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Performance standard is zero defects; measurementsystem is cost of non-conformanceContinuous Improvement

Japanese (Kaizen)Marginal Analysis optimal quality is reached whenincremental revenue from improvement equals incrementalcost to secureVariable characteristic to be measuredAttribute measurement (objective or subjective)Increase quality = increased productivity, increased costeffectiveness, decreased cost risk

Project Human Resource Management

Processes required to make the most efficient use of people3 major processes:Organizational PlanningStaff AcquisitionsTeam Development

Keep in mind of transient nature of projects

Apply techniques that apply to current project needs

Ensure HR compliance with project management activities

Project OrganizationConflict between PM and Functional ManagersDual allegiance of team membersComplex prioritization of resourcesLoss of developed procedures on project dissolution

Compromise = both sides will loseDelegationDefer the decisionInterpreted as passiveEmphasize task vs. personnel


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Can be frequently usedIf there is a team of experts, PM decisions will promote highsatisfaction

Functional/Project Managers likely to exercise:PowerAuthorityInfluence

Traditional organization forms have no single point of contact forclient/sponsor

Organizational Planning

Identifying, documenting and assigning project roles, responsibilities,and reporting relationships

Individual and group assignmentsInternal and external employeesLinked with communication planning

Staff Acquisition

Ensure resources are available for project work

Team Development enhancing stakeholders to contribute along withmaintaining the project teams functionality

Personal development is the foundation

Team members often balance responsibilities to a functional managerand project managerCritical to success of project

Review Guide Tips

Roles and responsibilitiesProject Manger plan, estimate and schedule of projectTeam help prepare the WBS, Network Diagrams, andestimate time for tasks, complete tasksSenior Management approve Overall project plan, budgetand schedule and to approve any changes that are made tothose figuresThe person experiencing the problem must try to solve it


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themselves as long as means are in their controlPowers:Formal (legitimate)RewardPenalty (coercive)Expert (earned)Referent authority of a higher position

Best are Expert and Reward; Penalty is the worstFormal, Reward and Penalty derived from PMs position withinthe company

Conflict

Inevitable consequence of organizational interactionsCan be beneficialResolved by identifying the causes and problem solving bypeople that are involved & their immediate managerNature of projectLimited power of the project managerNecessity for obtaining resources from functional managers

Conflict Sources (in order of frequency)SchedulesProject PrioritiesResourcesTechnical opinionsAdministrative Procedures

CostPersonality

Motivational TheoriesMaslows Hierarchy of Needs people work to get achance to contribute and use their skills

self-actualization


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McGregors Theory of X and Y

X people need to be watched every minute

Y people willing to work without supervisionHerzbergs Theory poor hygiene factors destroymotivation but improving them will not improve motivation

Motivating Agents

Responsibility

Self-actualization

Professional growth

Recognition

Responsibility ChartsMatrix cross references team members with tasks (does notshow time when job is done)Histogram months vs. number of resourcesGantt Chart shows when staff allocated to tasks

Leadership SkillsDirective

FacilitatingCoaching

Supportive

Team Building Skills

Projectized OrganizationConflict between PM and Functional ManagersDual Allegiance of team membersComplex prioritization of resourcesLoss of developed procedures on project dissolution

Compromise both sides will lose

Delegation


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Defer the decisionInterpreted as passiveEmphasize task vs. personnelCan be frequently utilized

Project Communications Management

Processes to ensure timely and proper generation, collection,dissemination and disposition of project information

General communications managementCommunications Planning determining informationalneeds, who needs what and when; 90% of PMs time is spentcommunicatingInformation Distribution making information available

Performance Reporting collecting and disseminating projectinformationAdministrative Closure formalize project/phasecompletion

Communications Planning

Determining information requirements of stakeholders

Tightly linked with organizational planning

Information Distribution making information available in a timelymanner by implementing the communications plan; responding to requestsfor information

Performance Reporting

Collecting and disseminating performance indicators to provide

stakeholders information how resources are achieving project

objectivesStatus reportingProgress reportingForecastingProject scope, schedule, cost and quality, risk andprocurement

Administrative Closure

Projects/phases after achieving results or terminated require closure


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Verifying and documenting project results to formalize acceptance

Collection of project records, analysis of effectiveness, reflect finalspecifications and archiving of material

Tips from Review Guide

Understand all concepts and major points

Memorize the communications model

Understand the inputs/outputs of Administrative Closure

Understand how administrative closure differs from contract closeout

Contract closeout has product verification and administrative

closeout but the contract terms may have special

provisions/procedures for closeout

Communication Model

Messages are encoded by sender and decoded by receiver based onreceivers education, experience, language and culture

Sender should encode message carefully

Nonverbal

Paralingual (pitch and tone)

Active Listening receiver confirms they are listening,confirms agreement and ask for clarification

Effective Listening watching speaker, think before

speaking, ask questions, repeating and providing

feedbackCommunication Methods

Pick the form of communication that is best for the situationFormal Written complex problems, All Plans,communicating over long distances

Formal Verbal Presentations, speechesInformal Written memos, e-mail, notesInformal Verbal Meetings, conversations

Communication Blockers

Noise, Distance, Improper en-coding, bad idea, Hostility, Language,


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CulturePerformance Reporting

Status Reports (where project stands)

Progress Reports (what has been accomplished)

Trend Report (project results over time)

Forecasting Report (projecting future status)

Variance Report (actual results vs. planned)

Earned Value

Communication Channels communications grow at a linear rate

N (N-1)/2 where N = the number of people

Example 4 people equals 6 communication channelsTo determine if someone understands message feedback must be obtained

Unanimous Agreement

All members committed

Decisions reached slowly

Integrity is developed

Future decision making is enhanced

Clearly defined group goals

Motivate team behavior

Cause tension until completed

Encourage member identification

Complex messages need oral, written and non verbal methods

There are 5 directions of communication

Faade when an individual processed needed information but withholdsthe informationLeast effective for

Study Items for the PMP EXAM

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