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Terms in this set (352)
Does or creates something necessary and valuable for the project.
The process where the list of risks is created.
Most larger projects are broken down into Units know as a ________. Being carried out one after the other. Each ______ should produce one or more deliverables.
Exit Gate or Kill Point
An evaluation of the deliverable or of one project phase to determine if the project should continue and the next phase should be initiated.
Similar to a phase gate with one key addition ___ are points in the project life cycle where a team or individual external to the project makes the decision whether or not to continue the project or stop.
A temporary (finite) endeavor undertaken to create a unique product, service or result.
Characteristics of a Project
1. Time limit (definite beginning and end)
Group of related projects that are coordinated together.
Company Project Portfolio
entire investment in projects and programs
should always be directly in line with the companies stratigic goals.
The process of gathering project details. This process uses deductive reasoning, logic, and a series of information-gathering techniques to identify details about a project, product, or solution.
the application of knowledge, skills, tools and techniques to project activities to meet the project requirements.
is delivering the product and the project within the set boundaries of scope, cost, schedule, quality and customer satisfaction.
Organizational Process Assets
Records within your organization that have been kept on previous projects. Benchmarks for current project, may show estimates, what resources were used and what lessons were learned. They are important because companies are working towards continuous improvement and learning.
The original plan plus all approved changes.
What was planned to happen, what actually happened, and what you would have done differently in order to avoid any variances.
Official document that provides guidelines that is mandatory to be followed.
Document approved by a recognized body that provides guidelines. These can be helpful and good when followed.
Type of __________ will shape the learning that needs to be captured
Get people to interact and share experience. This can include a lot of different things like networking, facilitated workshops and meetings.
Include things that may be written down or drawn and easily archived.
Includes beliefs, opinions and abilities. Difficult to archive.
Compared to sharepoint. Sharing of concrete information and documentation management. Capturing codified information.
Monitor and Control Project Work
Project plan and deliverables are in line with each other. Data, Information, reports. Work performance report. Ensures project plan is in line with the deliverables. Ensures project is in line with forecast and no adjustments need to be made. Closely tied to Direct and manage project work.
Project Management Plan
Provide plan against which the results will be measured.
to have a record of all the uncertainties the team was treating as true for planning purposes.
Basis of Estimates
Backup information that shows how the team arrived at estimates. Determines how the prices were come to.
To create earned value calculations to show how the project is progressing against the plan.
To show which issues are arising on the project, who is responsible for them, and when a response is expected.
Lessons Learned Register
Leverage lessons learned
give an easy way to measure high-level progress against the schedule. Key project milestones. An output of schedule management.
To show actual quality versus planned quality. Trends may be visible that would require corrective action.
To show information about high-level risks and detailed risks affecting the project.
To create earned value calculations to show how the project is progressing against the plan.
Work Performance Information (WPI)
Provides actual results that can be compared against the project management plan.
Work Performance Reports
Used to create awareness and to help with decision making.
Perform Integrated Change Control
brings together all of the other monitoring and controlling processes. Influence the factors that cause change. Takes place as long as work is being carried out.
Approved Change Requests
Channeled back into Direct and Manage Project Work.
Rejected Change Requests
Should be routed back to the requesting party.
Close Project Phase
Administrative Closure, releasing team, reflecting lessons learned.
Summary of the project, scheduled performance, cost performance, benefits realization and summary of risks.
Producing a project plan may be BEST described as
crating a document that guides the project plan execution
Project management plan updates are an output of
Direct and manage project work
Perform integrated change control
monitor and control project work
developed after the business case and before the project management plan
Project Management Plan
single document to guide project execution, monitoring and control and closure.
Change control meetings
perform integrated change control
When drafting the project charter for review in proposing a new project to modernize environment to bring up to compliance, what key piece would be needed during construction?
The business case, because it is one of the business documents that is an input to the process of developing a project charter.
PMIS - Project Management Information System
automated system to support the project manager by optimizing the schedule and helping collect and distribute information.
When changes are approved and made to project, they should be
incorporated into the project baseline
When program manager wants to know why the project you're working is taking longer than other projects that resemble yours
Refer to the historical information
Change Control Board (CCB)
A formal group of people responsible for approving or rejecting changes on a project
ROIC (return on invested capital)
Net income / the total capital investment
Component of the project management plan that is created during the development of a project management plan process
Change management plan
everything that must be completed in order to meet product requirement
everything in the entire project plan
Philosophy behind scope management
the project manager should always be in control of the scope by thoroughly defining it and carefully managing the processes.
Changes to the scope should be handled in a structured and controlled way.
Overall goal of scope management
to define the need, to set stakeholder expectations, to deliver to the expectations, to manage changes and to minimize surprises so that the product will ultimately get approval.
the work needed to successfully complete the project and only that work.
Knowledge area of scope management consists of the following
Planning the overall scope-related efforts
gathering the requirements for the product and the project
defining and documenting the deliverables that are part of the product and project
Gathering the requirements for the product and project management
creating the work breakdown structure (WBS) and baselining the scope
checking the work being done against the scope to ensure that it is both complete and correct
ensuring that all of what is "in scope" and only what is "in scope" is completed and that changes are properly managed.
Six processes in the scope management knowledge area
plan scope management, collect requirements, define scope, create WBS, validate scope and control scope.
Output of Plan scope management
scope management plan and requirements
Output - Collect Requirements
1 Requirements documentation
2 Requirements traceability matrix
Output - Define Scope
Project scope statement
Output - Create WBS
Output - Validate Scope
Output - Control scope
change requests, work performance information
outputs of the plan scope management process
.1 Scope management plan
.2 Requirements management plan
Requirements Management Plan
How the scope documents will be prepared and how the remaining five scope processes will be carried out. Shows how requirements will be gathered, how decisions will be made, how changes to the requirements will be handled and how requirements will be documented.
understanding what is needed to satisfy the stakeholders and then documenting that understanding.
Define Project Scope
develop a clear understanding of the requirements to be executing, verified and delivered.
Different kinds of data gathering
Brainstorming - Ideas shared at rapid fire to gather numerous, creative responses
Interviews - Conducted by PM or business analyst with subject matter experts.
Focus Groups - conducted by someone on the project team who meets with a group of stakeholders to discuss their needs and requirements intended to create a safe environment for stakeholders to discuss.
Questionnaires / Surveys - large groups of study for easier aggregation and analysis.
Benchmarking - Looking outside of the project to understand best practices and gain inspiration.
Requirements Documentation should include
The root business problem being solved
the source of requirement
the way each requirement addresses the problem
how the business processes interact with the requirements associated measurements for each requirement
Business, legal and ethical compliance
Constraints and assumptions
Anticipated impact of the requirement on others
Requirements Traceability Matrix
Once a requirement is collected, we use this to identify the source and who owns the requirement.
Drives the execution of the project.
process where the projects requirements are more thoroughly understood and documented. The Importance of this process is directly related to how important the REQUIREMENTS are.
4 Components of Project Scope Statement
Product scope statement
List of deliverables
Define Scope occurs as an output of
Collect Requirements process
Identify stakeholders is and output of
develop project charter process
organization document formally creating the project and outlining its goals.
If the project charter does not exist, then the project manager should still
capture the project's overall goals, a brief description of the scope and then known constraints and assumptions
When project stakeholders help define what the project has to do and the degree to which it must perform. This is then used to further detail the project scope statement.
A method of estimating in which experts are asked to provide input into the schedule. Can reduce time and risk.
This tool involves having technical experts work with the project team to develop and document portions of the project scope statement.
data analysis where the requirements are reviewed to look at different ways of achieving the goals.
detailed analysis of the projects product, service or result with the intent of improving the project teams understanding of the product and helping to capture that understanding in the form of requirements.
Common forms of product analysis tools
Project Scope Statement
document used to level-set among project stakeholders. Includes details pertaining to the project and product deliverables, goals of the project , the product description, the requirements for the project, the constraints, assumptions and risks.
Product Scope Description
This is a narrative description of the scope that is kept up to date throughout the project.
checklist of the rests and measurements that will be performed before the product is accepted.
products, services, or processes that are not specifically a part of the project
Output of Create WBS process
3 Components of Project Baseline
Original Plan + Approved Changes
The Work Breakdown Structure (WBS)
Hub of information for the project plan. Risks, activities, costs, quality attributes and procurement decisions all link back to this. This is also the primary tool for verifying and controlling the project's scope.
Create WBS process
performed early in the project, after requirements have been collected and the scope statement has been defined, but before work is executed.
Key component in project management plan is
Scope management plan, because there are multiple approaches that a team can take to create the WBS and baseline the scope and this will define which plan will be used to carry out the work.
When creating the WBS the key project documents you'll need is the
Project scope statement (primary) & requirements documentation
A common example of organizational process assets during the create WBS stage of a project
Methodologies that define how to create the work breakdown structure, software tools to create the graphical chart, WBS templates
The combination of the project scope statement, the WBS, the WBS dictionary, work package and planning package.
WBS is based off of
The decomposition of project deliverables
A node may be considered a work package when it meets the following criteria
The work package cannot be easily decomposed any further
the work package is small enough to be estimated for time and effort
the work package is small enough to be estimated for cost
the work package may be assigned to a single person
Elements of a good WBS
it must be detailed down to a low level.
Control Account (aka Cost Account)
node on the WBS where the scope, time, and cost are measured. Usually used to measure earned value.
Provides details and information around each node on a WBS.
Validate Scope Process
The process of ensuring that the product, service or result of the project matches the documented scope, which is then agreed on by all stakeholders to complete this milestone.
Key differences between Validate Scope process and Control Quality process
Validate Scope is primarily concerned with completeness, while control quality is primarily correctness.
Validate scope is concerned with the acceptance from all stakeholders.
inputs of validate scope process
project management plan, project documents, verified deliverables, work performance data.
Output of control quality process, input for validate scope process. All about comparing documented scope with deliverables to ensure that everything has been completed.
Work Performance Data
The raw observations and measurements identified during activities being performed to carry out the project work.
Tools of validate scope process
Inspection and decision making
Outputs of validate scope process
1 Accepted deliverables*
2 Change requests
3 Work performance information
4 Project documents updates
The process of monitoring the status of the project and product scope and managing changes to the scope baseline.
Doing anything over and above the documented scope.
Your project team is executing the work packages of your project when a significant disagreement regarding the interpretation of the scope is brought to your attention by two of your most trusted team members. How should this dispute be resolved?
The dispute should be resolved in favor of the customer.
The main point (output) of Create WBS is to
Create baseline of the entire scope
Requirements management plan
contains a plan for how changes will be handled. Good for handling projects that have continually shifting changes for the project scope.
You are a PM for a project that just completed the design phase, but change requests that affect the requirements are still pouring in from many sources. What would be most helpful in this situation?
A well-defined requirements management plan
What is the function of the project sponsor
to fund the project and formally accept the product
The project manager and the customer on a project are meeting together to review the product of the project against the documented scope. Which tool would be MOST appropriate to use during this meeting?
What is NOT part of the scope baseline
the requirements documentation
project scope statement
The most important part of validate scope is
gaining formal acceptance of the project deliverables from the customer
Creating the project scope statement is part of which process
Organizational process assets would include
document templates, financial control procedures, standardization guidelines
Nominal Group Technique
Interviewing subject matter experts to gather ideas for functionality and are now voting on them to put them in order of priority.
Schedule Management Plan
specifies how defined activities will be carried out. Key components of the project management plan used as an input for schedule management.
Define Activities is a process performed
After scope baseline is created, requirements documentation, project scope statement, work breakdown structure and the WBS
Which tools are used during schedule management process
Expert judgement, decomposition, rolling wave planning and meetings
Each work package at the bottom of the WBS is decomposed into smaller pieces known as
Rolling wave planning
form of progressive elaboration that models project planning the way we see things in the real world.
A list of activities that need to be performed in order to complete the project.. Output of schedule management.
WBS vs Activity List
WBS: Deliverables-based, used as a central tool to manage the project, contains information on deliverables, resources, schedule, and cost; one work package maps to one or many scheduled activities.
Activity List: Effort based, focused on the effort required to complete work packages; used to build the schedule, contains activity name, description and estimated duration; Each schedule activity maps back to a single work package
Activity list is an extension of WBS
Must not be considered part of WBS though. WBS belongs to scope baseline, activity list is related to the projects schedule.
Stored with activity list or in a separate document, usually created after the initial activity list has been created. Contains activity owner, location, length of activity. An output of schedule management.
Process primarily concerned with taking the activity list and arranging those activities in the order they most be performed.
Precedence Diagramming Method (PDM)
creates a graphical representation of the scheduled activities in the order in which they must be performed on the project.
Activities are represented by nodes, with arrows representing dependencies.
One that cannot be broken. These are used with Hard Logic, as it's immovable and always true.
Result of "best Practices" and can vary from organizational or even project to project. These are also known as "soft Logic"
must be considered but are outside of the project's control and scope.
are those that the team can control.
simple one activity getting a jump-start on another. Which raises the risk and the rationale behind them should be clearly explained and documented.
A situation where a waiting period must occur between one activity and another dependent activity.
An output of the Schedule Management process
Project Schedule Network Diagrams
Project Document updates
Project Schedule Network Diagram
A detail-driven tool that provides a graphical way of depicting schedule activities, their dependencies, and their sequence. The best representation for calculating the critical path.
Estimate Activity Duration process
Each activity in the activity list is analyzed to estimate how long it will take. Input into creating the schedule.
Project Documents for Schedule Management
Schedule Management Plan
Resource Breakdown Structure
Enterprise Environment Factors
Organizational Process Assets
Inputs for Schedule Management
Schedule management plan
Enterprise Environmental Factors
Things that influence your peoject such as what records an organization requires, safety standards and regulations,
Tools of Schedule Management
A.K.A. Top-down Estimating: is where an activity from a project previously performed within the organization is used to help estimate another activity's duration.
An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters.
Typically, this can work well for activities that are either linear or easily scaled.
AKA "PERT Estimates": use three data points for the duration instead of simply one. Comprised of Pessimistic, most realistic, and optimistic estimates.
The two primary ways of calculating a three-point estimate is
beta distribution and triangular distribution
(Pessimistic + 4 * Realistic + Optimistic) / 6
a method of estimating activity duration using the above formula
Standard Deviation in Beta Distribution
(Pessimistic - Optimistic) / 6
simple average of the values of the pessimistic, optimist, and most likely estimates.
(Pessimistic + realistic + Optimistic) / 3
Essentially the opposite of analogous estimating. Each step needed to complete an activity is estimated, and hose estimates are added together to get the activity's duration estimate.
Used when activity is understood very well and the organization has experience with the type of activity and have few unknowns.
Outputs of schedule management
Basis of Estimates
Project Documents updates
All of the preceding inputs and tools for this process are used together to produce this key output, which contains an estimated amount of time for each activity in the activity list.
Develop Schedule Process
Performed after the processes of estimate activity resources, estimate activity duration, and sequence activities have been performed and before determine budget is performed.
The sequence of activities from start to finish, with zero delays. Section of highest risk in your schedule
Schedule management plan
the part of the project plan that specifies how the schedule will be calculated and developed and what forms it will ultimately take. Defines how the schedule will be managed and changed.
Project Documents for Schedule management
Basis of Estimates
Project Schedule Network Diagrams
Project Team assignments
Enterprise Environmental Factors
Organizational process assets`
Project Schedule Network Diagrams
Primary input for Develop Schedule. Show the order in which activities must be completed.
Schedule Network Analysis
A technique to identify early and late start dates, as well as early and late finish dates, for the uncompleted portions of project activities.
Critical Path Method (CPM)
If any activities were delayed from this activity schedule, the project will be delayed.
3 main purposes are to calculate the projects finish date, to identify how much individual activities in the schedule can slip without delaying the project, and to identify the activities with the highest risk that cannot slip without changing the projects finish date.
Critical Chain Method
A schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties.
Resource Optimization Techniques
When your resource needs meet up with the organization's ability to supply resources.
You first use the critical path method to calculate and analyze all of the network paths for the project. Then you apple resources to that analysis to see what effect it has on schedule outcome. This technique is often used to result in a change to the critical path and the project completion date.
Never over-allocating resources.
looks at the schedule in light of resource constraints.
The critical path and the completion date do not change when using this method because this is less disruptive.
What-If Scenario Analysis
The process of evaluating scenarios in order to predict their effect on project objectives. Essentially evaluating the Risk.
Monte Carlo Simulation Analysis
Performed by computer and evaluates probabilities by considering a huge number of simulated scheduling possibilities or a few selected likely scenarios. This can be used to identify the highest risk activities and showing their impact on the schedule and delivery.
Schedule Compression Techniques
crashing and fast tracking
Crashing Schedule Compression
Adding resources to a project activity So that it will be completed quicker. Almost always increases the risk because it adds to the number of variables. "Too many cooks in the kitchen" and increases the cost.
Fast Tracking Schedule Compression
Means that you re-order the sequence of activities so that some of the activities are performed at the same time and run them in parallel. Increases risk to the project since discretionary dependencies are being ignored and additional activities are happening simultaneously.
Agile Release Planning
Adaptive projects use the product backlog to create an overall release plan.
Outputs of Schedule Management
Bar Charts (A.K.A. GANTT Charts_
Project Network Diagram
Schedule Data Project Calendars
Project management Plan Updates
Project Documents Updates
the approved schedule that has been placed under control. Original plan + all approved changes.
Shows when each activity is scheduled to begin and end. Planned start and finish date for the overall project, typically shown graphically.
Bar Charts (Gantt Charts)
Show activities represented as horizontal bars and typically have a calendar along with the horizontal axis. Easy to understand and present to management.
Represents Key Events or deliverables for a project that the project team and external parties responsibility. Reserved for brief, high-level project presentations.
The concept behind monitoring and controlling is
To compare the work results to the plan and ensure that they line up.
Schedule changes are not only reacted to, but the schedule is reviewed and adjusted proactively.
Project management plan
contains the schedule management plan and the schedule baseline.
Control schedule process
The process that reviews and manages any changes made to the latest approved schedule baseline.
Inputs for the Control Schedule process:
Project Management Plan, Project documents: lessons learned register, project calendars, project schedule, resource calendars, schedule data, work performance data, organizational process assets.
The collection of information for describing and controlling the schedule. Including information that may contain explanations of why certain schedulings decisions were made and the factors that went into those decisions.
Iteration Burndown Chart
An agile tool used to display the teams progress of completing the work in the backlog.
Tools of control schedule
Data Analysis - Earned Value Analysis, Iteration burndown chart, performance reviews, trend analysis, variance analysis, What-if scenario analysis.
Critical Path method
Project management information systems
leads and lags
Outputs of schedule management and control
Work performance Information (SPI & SV)
Project Management Plan Updates
Project Document Updates
Schedule performance index (SPI)
Estimate at completion (EAC)
Estimate to Completion (ETC)
Agile Perspective on Schedule Management
agile projects do not try to define the entire scope up gront, so it stands to reason that it is impossible to plan the whole project schedule. These perspectives shift the customer priorities to the front of the list.
In this approach, agile teams use a kanban board showing work in progress. Work is not scheduled in advance. Work will be taken from the board when availability is optimal. This approach best works when the backlog of work to be performed is well groomed.
Critical Path Method
a project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.
Often found determined through the network paths.
Refers to a sequence of events that affect each other on the project from Start to finish. This is visually illustrated using a diagram and paths.
Paths are important because
they illustrate the different sets of sequences in which activities must be performed, which can be used to also identify risk.
also referred to as Slack. Simply how much time an activity can slip before it changes the critical Path or pushing out the finish date of the project.
If an item is on the critical path,
It has zero float.
Similar to scope decomposition, except the final result is an activity list instead of a WBS.
Activity Duration Estimates
Probably number of periods (weeks, hours, months, days) this activity should take with the probably range of results.
Activity of Arrow Diagram
a rarely used type of network diagram where activities are represented by the arrows connecting the nodes. Nodes are represented as circles in this type of project network diagram.
Activity on Node Diagram
Type of network diagram where activities are represented on rectangular nodes with arrows representing the dependencies.
a form of expert judgement often used early on when there is little information available. It is performed from the top down, focusing on big picture.
The method for calculating late start and late finish dates.
activities that must be completed before other activities are either started or completed.
AKA "Hard Logic", these activities must be followed in sequence.
an activity having no time that is inserted into a network to maintain the logic of the network
Technique primarily made up of ttwo means of compressing the schedule: crashing and fast-tracking
a means of gathering expert judgement where the participants do not know who the others are and therefore are not able to influence each other's opinions. Design to prevent groupthink and to find out a participants real opinion.
The method for calculating early start and early finish dates for an activity.
AKA "Free slack" how much time an activity can be delayed without affecting the early start date of subsequent depend activities.
Rules for which no formula exists. Usually derived from trial and error.
the delay between an activity and the subsequent one dependent upon it.
Activities with finish-to-start relationships cannot start until their predecessors have been finished.
Calculating theoretical early and late start and finish dates for all project activities.
High level points in the schedule used to track and report progress. No time usually associated with them.
Monte Carlo Analysis
A computer simulation that throws a high number of "what if" scenarios at the project schedule to determine probably results.
AKA "Logic Diagrams"
A method of diagramming project activities to show sequence and dependencies.
A situation that occurs when an activities start date comes before a preceding activity's finish date.
Reserve Time (Contingency)
a schedule buffer used to reduce schedule risk.
Can be explained through project %, project lump sum, activity, % and activity lump sum.
The process of investigating any differences between budgeted figures and actual figures
You are the project manager for the construction of a commercial office building that has very similar characteristics to a construction project performed by your company two years ago. As you perform Define Activities, what is the BEST approach
Use the previous activity list to help construct your list.
The customer has called a project team member to request a change in the project's schedule. The team member asks you what the procedure is for handling schedule changes. Where should you refer the team member to help him understand the procedure?
The schedule management tab
If you were creating duration estimates for a schedule activity, which of the following tools or techniques would NOT be appropriate to use
The amount of time that an activity may be delayed without extending the critical path is
Crashing differs from fast tracking because crashing
Usually increases the cost
If senior management tells you "the Last project we did like this cost us almost five million dollars" what estimating method is being used
Which scheduling approach inserts non-working buffer time to be managed by the project manager
Critical chain method
What is the BEST tool to calculate the critical path on a project
Project network Diagram
Which of the following choices best fits the description of a project manager applying the technique of what-if scenario analysis
Using Monte Carlo analysis to identify what would happen if schedule delays were to occur
How do the activity list and activity attributes relate to each other
Activity attributes provide additional information for each activity on the activity list
Estimate Costs process
Each schedule activity is analyzed to evaluate the activity time estimates and the resource estimates associated with them.
Project Document inputs for cost management
Lessons learned register
produces a separate estimate for each schedule activity. These individual estimates are then aggregated up to summary nodes on the WBS. Considered to be highly accurate, but time consuming.
Alternative Data Analysis
Involves reviewing options for changing scope, schedule, size quantities or other creative ways to bring costs in line with the goals of the project.
The primary output of Cost Management process. These estimates address how much it would cost to complete each schedule activity on the project along with a contingency or reserve amount. Might include things like labor, materials, taxes and fees, direct and indirect cost.
You are in the planning stages of a new project to implement an industry-wide B2B (business-to-business) site for the air cargo industry. Your team is quite experienced and knowledgeable concerning projects like this, so you want to utilize all its expertise when collecting input for developing the WBS. However, your team is spread throughout the world. What is an effective way to gather input from everyone?
The correct answer is the Delphi technique, which is a method of gathering information from experts on an anonymous basis through progressive rounds of solicitation. It is appropriate for use when collecting input from experienced and knowledgeable individuals, particularly when those individuals are geographically dispersed.
Which of the following is a characteristic of a portfolio
The correct answer is that a portfolio is managed to achieve strategic objectives. The PMBOK® Guide defines a portfolio as "projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives." Any projects or programs contained within a portfolio need not be directly related. A portfolio is not temporary and it does not produce a unique product, service, or result—those are characteristics of projects.
The project manager is evaluating two projects. Project A has an expected duration of 90 days with a standard deviation of 10 days, and Project B has an expected duration of 100 days with a standard deviation of 4 days. Which statement is not true regarding these two projects?
The longer duration of Project B does not make it riskier than Project A, making the answer that suggests otherwise the untrue statement and the correct answer. A longer duration does not necessarily indicate higher risk. A larger standard deviation indicates a riskier estimate, so Project A is riskier than Project B. The maximum estimate for Project A at 95 percent probability is 110 days, whereas the maximum estimate for Project B is 108 days, so the statement regarding probability of maximum possible duration is true. Because the minimum estimate at 3 standard deviations for Project A is 60 days and for Project B is 88 days, both projects could potentially finish within 90 days.
You are new to XYZ Corporation and have been named the project manager of Very Important Project. You learn that a functional manager controls the budget of your project. Which organizational environment are you operating in?
The correct answer is a weak matrix organization. In a weak matrix organizational environment, a functional manager controls the project budget. In a strong matrix, PMO, or project-oriented organization, the project manager controls the budget.
The project manager is preparing a report on the causes of defects in her project. Which type of diagram would be most appropriate to show the number of defects resulting from each of the identified causes?
Histogram is the correct answer because it represents a rough frequency distribution of the measured data. The histogram is particularly useful for helping to identify common causes. A control chart is used to track process data over time and against certain control limits. A fishbone diagram is used to identify the root cause of a problem. A process map is used to depict the sequence of steps to help identify where quality problems may occur
After project work has begun, the project manager recognizes that it is possible to more accurately estimate costs. Based on this realization, the project manager needs to
This question concerns progressive elaboration, which is the process of increasing the amount of detail in a plan iteratively as the project progresses. The project manager needs to incorporate the new information into the plan. Continuing to use the old, less accurate estimates would not benefit the project. Regression analysis is a technique in which input variables are compared to corresponding output results to develop a statistical relationship; it is not applicable to this situation. Likewise, conducting a quality audit would not help the project manager in this situation.
The formula for calculating the number of communication channels
N × (N - 1) ÷ 2, where N represents the number of people involved.
The project team has identified risks and added them to the risk register. Which type of risks should the team put on its watch list for future monitoring?
Low priority risks are risks that the project team wants to continuously monitor and control for changes. High probability and high impact risks and risks for the near term are risks for which the team needs a response plan. Unknown risks cannot be listed on the risk register.
The project manager for a software implementation project needs to determine whether to outsource user training or develop it in-house. Some of the considerations the project manager needs to account for include budget estimates, the direct and indirect costs of each option, and the contract type (if outsourcing is chosen). Which technique should the project manager use?
The correct answer is make-or-buy analysis, a technique used in the Plan Procurement Management process. Make-or-buy decision is an output of Plan Procurement Management, not a technique. Market research and expert judgment are other techniques used in Plan Procurement Management.
An organization has recently adopted project management practices, and an inexperienced project manager and project team are developing a WBS for their first project. The team lacks a good understanding of the scope of the project, but they have invited stakeholders to their WBS development meeting to help them brainstorm. Which of the following approaches should the team take to develop the WBS?
Because the team is inexperienced in developing work breakdown structures and lacks a good understanding of the project's scope, the top-down approach is the best answer. The top-down approach allows the team to start developing the WBS before identifying all deliverables. The bottom-up approach, starting with the deliverables and working backwards, is more suited to teams with a clearer sense of scope. The "100 percent approach" may remind you of the "100 percent rule," but it is not an approach to developing a WBS; it is a requirement of all work breakdown structures.
It has been discovered that the Director of Accounts Payable has been redirecting funds from new projects to help an adult son escape financial difficulties. Senior management is very apprehensive because this director has been instrumental in financing successful new product rollouts key to the organization's market survival. Which of the following would best illustrate a transfer strategy during the Plan Risk Responses process?
Outsourcing is a transfer strategy since it by definition should involve a contract and contracts are used to specify liability to another party, so discharging the director and outsourcing new project financing to an accounting firm is the correct answer. Keeping the director with no penalties is an accept strategy. Demoting the director is a mitigate strategy because he would no longer have enough authority to redirect funds. Discharging the director and suspending the new projects is not transfer. It could be considered as avoid in its strongest sense because in suspending the associated projects, the company is temporarily stopping those projects. In addition to the risk management issues addressed in this question, there is an ethical component as well; the PMI Code of Ethics and Professional Conduct supports the dismissal of the director. According to the PMI Code of Ethics and Professional Conduct, "project managers will not condone or assist others in engaging in illegal activities."
The project team hired to develop a line of commercial cooking devices needs to demonstrate to the customer that the griddle plate they have manufactured meets the agreed-upon acceptance criteria. The plate must be made of A36 steel, be 1 inch thick, 24 inches wide, and 36 inches long. Which of the following tools or techniques would best help the project team?
Inspection, one of the tools and techniques used in the Control Quality process, is the correct answer. According to the PMBOK® Guide, inspection is an "examination of a work product to determine whether it conforms to documented standards." Approved change requests review is a type of meeting that is among the tools and techniques used in the Control Quality process, but it is not applicable to this situation. An Ishikawa diagram is used in the Control Quality process to evaluate and relate cause and effect, and prevention is not a tool or technique used in the Control Quality process.
The project manager has received several complaints from managers about not knowing what is going on with the project. Which tool should the project manager use to better understand who needs to be informed about project work?
RAM (responsibility assignment matrix) is the correct answer. A RAM is a grid that shows the connections between work packages and members of the team. A commonly used RAM is a RACI chart, which would show who needed to be informed about the project work. Communications management plan may seem to be the correct answer, but the key phrase here is "project work," which suggests a more granular understanding is required in this situation than would be provided by the communications management plan. A stakeholder register would not show who needed to be informed about project work, and a Gantt chart is a bar chart that shows schedule information.
A project manager is preparing to lead a project in an adaptive environment for which the requirements are not well understood and likely to evolve. Which of the following approaches would be best for the project manager to take?
The best answer is to plan to build and review multiple prototypes, which would help the project team refine the requirements for the project. Delaying the start of work until the scope can be precisely defined is likely not a viable option. Preparing detailed cost calculations for the project's deliverables is unlikely to be helpful when the requirements are not well understood and expected to evolve. Avoiding short iterations when developing the schedule is unlikely to be helpful; an adaptive environment depends on short iterations.
One of the project's stakeholders is a senior executive who appears unconcerned with the goals of the project. This executive possesses a great deal of authority in the organization, however, and is capable of removing resources from the project that are critical to its success. How should the project manager rank this stakeholder?
The correct answer is high power/low interest. The project manager is using power and interest to classify stakeholders for stakeholder analysis. In this context, power refers to the stakeholder's level of authority (which is high), and interest refers to the stakeholder's level of concern about the project's outcomes (which is low). The answers indicating the stakeholder has high interest are incorrect because the stakeholder does not appear concerned about the project, and the answers indicating that the stakeholder has low power are incorrect because the stakeholder has a high level of authority in the organization.
The project team has reviewed project documentation for indicators of risk, brainstormed risks, and interviewed stakeholders and SMEs to learn their thoughts about uncertainty surrounding the project. They begin to fill in the risk register with
The correct answer is lists of identified risks and potential responses. The primary output of the Identify Risks process is the first entry in the risk register. Expected monetary value is a statistical concept used in Quantitative Risk Analysis. Tornado diagrams are a technique used to display sensitivity analysis. The risk breakdown structure is part of the risk management plan.
The project manager needs to estimate the cost of a particular portion of a project that has recently been initiated. Which form of estimating is most appropriate to use in this situation?
Analogous estimating is a top-down approach used to quickly estimate things on the planning horizon based on comparison of those things to actual results obtained in a factually similar project. It is often used early in a project, when there is a lack of detailed information available. Parametric estimating is not correct because it produces an estimate based on a metric like price per board foot for lumber. Hyperbolic is a nonsensical choice and does not represent an estimating technique at all. Bottom-up estimating depends on the availability of significant, relevant details so that an overall estimate can be developed by accumulating the more detailed estimates from the bottom up
The project manager for a project undertaken to bring a new diabetes medication to market needs to make available a large volume of information to a very large audience. Which of the following communication methods would be the most appropriate in this situation?
The correct answer is an intranet site. Because the project manager needs to make a large volume of information available to a large audience, the best communication method to use would be a pull method, such as an intranet site. Face-to-face meetings and conference calls are examples of interactive methods, which would likely prove difficult to manage in the situation described in the question. An email is an example of a push method of communication. While an email can be easily sent to a large audience, it is not ideal for effectively conveying a large volume of information.
A project manager leading an office renovation project is estimating how long it will take to paint the office. She knows that there are 1,000 square feet to paint, and the two painters who will be doing the job can each paint approximately 100 square feet per hour. The project manager uses this data to arrive at an estimate of five hours. Which of the following estimating methods has the project manager used?
The correct answer is parametric estimating, which produces an estimate based on a metric like price per board foot for lumber. Analogous estimating is a top-down approach used to quickly estimate things on the planning horizon based on comparison of those things to actual results obtained in a factually similar project. Three-point estimating is a technique in which an estimate is generated by taking an average of the most likely, optimistic, and pessimistic estimates. PERT is a type of three-point estimating which involves using a weighted average of most likely, optimistic, and pessimistic estimates.
The project team working to train employees of a large corporation how to use a new benefits portal has recently subcontracted help desk call center services to an external vendor. Which of the following tools would be best to assure the team that the vendor follows the quality policies of the project?
Audit is the correct answer. In the Manage Quality process, an audit is used to determine if activities comply with organizational and project policies. Inspection might seem like the correct answer, but an inspection would be part of the Control Quality process and is primarily used to confirm that acceptance criteria have been met. A cost-plus contract would not help assure the team that policies were followed. Litigation is typically the dispute settlement method of last resort; it is not applicable here.
The project team is in the middle of executing a project that is now projected to run three weeks too long. Which of the following actions would allow the project to be delivered more quickly?
To complete the project more quickly, the project team needs to complete activities on the critical path more quickly. Moving resources from a noncritical task to a critical path task would help the team complete that task more quickly and shorten the schedule. Substituting a less experienced programmer for a more experienced one would likely result in adding additional time to the project; purchasing less expensive equipment would contribute to cost savings, but does not necessarily have an impact on time. Although reducing testing might help the project recover time, it would also introduce additional risk; therefore, it is not the best answer.
A new project manager is told that one of his responsibilities is to analyze project performance and then recommend preventive actions based upon his analysis. The purpose of these activities is to
According to the PMBOK® Guide, a preventive action is "an intentional activity that ensures the future performance of the project work is aligned with the project management plan." Recommended preventive actions are implemented to reduce the probability of incurring future negative performance. Preventative actions are not directly related to schedule float or CPI; therefore, those answers are incorrect. Although preventative actions might improve the chance of project closure, the best answer is to reduce the probability of future negative performance.
The project manager wants to know how efficiently the project is using resources. She knows that the EV is $350,000, the PV is $500,000 and the AC is $400,000. Based on this information, the project manager determines that the project is __________________.
The project manager wants to know the CPI for her project. The formula to calculate CPI is EV ÷ AC, therefore, $350,000 ÷ $400,000 = .875. Remember, a CPI of less than 1 means that the project is running over budget; a CPI greater than 1 indicates that the project is running under budget. A CPI of 1.0 indicates that the project is exactly on budget. The answer indicating that the project is performing over budget and getting 70 cents of value for every $1 spent may seem correct at first; however, it is the result of applying the SPI formula (EV ÷ PV), not the CPI formula.
An unexpected blizzard in another part of the country has delayed a shipment of lumber required for a construction project. This delay will likely cause workers hired by the project to be idle, as they wait for the shipment to arrive. Another supplier closer to the project site can provide the necessary lumber on schedule with short notice, but at a significantly higher cost. The project manager considers the cost of the more expensive lumber against the costs a delay in the schedule may cause. In which of the following processes is the project manager engaged?
The correct answer is that the project manager is engaged in the Control Resources process, which "is the process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective action as necessary." The project manager is performing cost-benefit analysis, which is a data analysis technique used in the Control Resources process. The Perform Integrated Change Control process involves reviewing and approving change requests, and although a decision to purchase lumber from a new supplier may require a change request, the project manager has not yet made that decision. Implement Risk Reponses may seem like a correct answer; however, the question does not state whether the risk of a late shipment was an identified risk or whether the possibility of purchasing lumber from another supplier was a previously identified risk response Manage Team involves tracking team performance, delivering feedback, and resolving issues such as conflict among team members and does not include managing physical resources.
While analyzing defects, the project team is attempting to isolate the cause of a quality problem on a project. After exhausting other speculations, they theorize the problem may be centered around the impact of one variable on another. Which of the following quality control techniques will confirm a relationship between the variables and why?
A scatter diagram is the correct answer. Scatter diagrams show the relationship between independent and dependent variables, and the closer this comparison follows the diagonal line (line of best fit), the more related the variables are to each other.
The project sponsor wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $375,000, the EV is $450,000, and the AC is $425,000. The project manager should tell the project sponsor that the project is
The correct answer is $25,000 under budget. The project sponsor is asking about the cost variance (CV) of the project. The formula for calculating cost variance is CV = EV - AC. A positive CV indicates that the project is under budget; if CV is a negative number, it means the project is over budget. If EV = $450,000 and AC = $425,000, then CV = $25,000. Because that $25,000 is a positive number, it means that the project is $25,000 under budget.
A project team working to design and install lighting for a sports stadium has purchased 50,000 light bulbs from a vendor with whom they have not previously worked. The bulbs either work or they do not, and before accepting the lot, the team wants to test the bulbs. There is not enough time in the schedule to test each individual bulb. Which of the following would be the best action for the project team to take?
The correct answer is to conduct attribute sampling. Attribute sampling refers to testing a sample to determine if it does or does not conform to a standard. Because the light bulbs either work (conforming) or do not work (nonconforming), this is the type of sampling required. Variables sampling refers to testing samples for their degree of conformity. Insisting on inspecting every bulb is likely to put the project behind schedule, as would rejecting the lot.
You are the project manager of a project that represents your core business. You find that there are not enough resources to complete the project. Which of the following actions should you not take?
There are some things that should not be contracted out, such as a trade secret or core business process, a high-profile project or work, or work that requires high quality control. Because this work represents your core business, it is not ideal to subcontract this work out, so contracting the work out to a trusted vendor is the action not to take, and the correct answer to the question. Negotiating with key stakeholders is fine as long as the scope changes are communicated, documented, and agreed upon. Negotiating with functional managers for more resources is an example of being proactive and escalating the problem to management. Pulling resources from noncritical path activities is certainly within the control and responsibility of the project manager, and is expected to be accomplished as necessary.
The project manager is working to improve the team's effectiveness. Which of the following is one of the outputs of the process the project manager is engaged in?
The correct answer is team performance assessment. The process the project manager is involved in is Develop Team. Work performance information is incorrect because it is not an output of the Develop Team process. Likewise, team performance and team optimization may be goals of the Develop Team process, but they are not formal outputs of the process.
The project manager for a home restoration project has learned that the vendor he had contracted to provide slate shingles will be unable to deliver them for several weeks. The project manager had planned for this risk, however, and identified an alternate supplier who could provide shingles on time. Once the roofers started installing the shingles from the new vendor, it became clear that the shingles were a lower grade than the original vendor had agreed to supply and now there is a risk that more shingles than planned for will break over the course of the installation. This is a
The correct answer is secondary risk. A secondary risk is a risk that is created as a direct result of a risk response. The risk of increased shingle breakage was created as a direct result of using the alternate supplier as a response to the original risk of the original supplier failing to deliver on time. A residual risk is a risk that remains after a risk response has been implemented. Unidentified and minor risks are not applicable to this situation.
A project has endured numerous problems in product deliverable quality. At the last project review, the project sponsor and other invited senior managers made it quite clear that quality is the most important of the various project constraints. What would be the best action for the project manager to take?
The correct answer is to fix the root cause of the quality problem. Fixing the root cause of the quality problem, regardless of the other project constraints that might be affected, is the most likely way of solving the problem and addressing the concerns of the project sponsor and senior managers. Crashing the quality problem with external quality auditors is a proactive answer, but may not necessarily address the root cause of the problem. Changing out team members may or may not solve the problem. Increasing the risk reserve is a good thing, but it does nothing to deal with the quality problem.
A project team member informs you that one of her colleagues is furious about the project schedule you recently emailed to the team. You decide to postpone addressing the problem in order to better prepare to resolve it. This technique is called
The correct answer is Withdraw/Avoid, which refers to retreating from conflict in order to let someone else resolve it or to better prepare. Compromise/Problem Solve and Smooth/Accommodate are incorrect, because the parties have not begun to work toward a solution. Avoid/Accommodate is not listed in the PMBOK® Guide as a conflict resolution technique, so it is also incorrect
Near the end of a project undertaken to build a factory, the project manager learns that the lead architect for the project has accepted a position with another organization. The architect has worked on several projects for the organization in the past and has a reputation for doing excellent work. It is too late for this to have an effect on the project, but it could have an impact on similar future projects the organization may pursue. The project manager discusses it with the project sponsor, and they decide to notify the program manager, who agrees to accept responsibility for responding to the situation. Which risk response strategy has the project manager used?
The correct answer is that the project manager has used the escalate risk response strategy, which involves escalating the risk to a higher level of the organization to be managed at the program level, portfolio level, or other relevant part of the organization. Escalate is an appropriate strategy to use when the risk is outside the scope of the project, or when the planned response is beyond the authority of the project manager. In this case, the project manager and project sponsor have escalated the risk to the program manager, who has accepted the responsibility for the risk. The transfer strategy involves shifting ownership of a risk to a third party, who would manage the risk and bear the impact if the risk occurs. Mitigating the risk would involve taking steps to reduce the probability of its occurrence or lessen its impact should it occur. Accepting the risk involves acknowledging the risk without taking any proactive action.
You are the project manager, and your team for this project has not worked together before. Individual team members do not trust each other, and two of your developers are in constant, intense conflict regarding how to best accomplish the project work and who has the most authority. Which of Tuckman's stages of team development best describes the stage your team is experiencing?
The correct answer is Storming. That is the second stage in Tuckman's model (after Forming). The stage is characterized by conflict among team members. Norming is the stage after Storming and is the stage in which team members learn to trust one another. Adjourning is the last stage in Tuckman's model and occurs when the project is over and the team is disbanded. Warning is not one of Tuckman's stages.
The FeelBetter Corp. has an excellent reputation for delivering high-quality, over-the-counter headache medications. The company is conducting a very structured audit of a project to bring a new medication to market. Which of the following options is the most likely result of the audit?
Requested changes is the correct answer because a quality audit is conducted to determine whether "project activities comply with organizational and project policies, processes, and procedures." In those cases in which project activities are identified as not complying, corrective action might be necessary and such actions must be recommended via the Perform Integrated Change Control process in the Project Integration Management Knowledge Area. Quality metrics are inputs to the Manage Quality process. Cost-benefit analysis is one of the tools and techniques used in Plan Quality Management, and process analysis is a technique used in Manage Quality.
The lessons learned register is created as an output of which process?
The correct answer is Manage Project Knowledge. The lessons learned register is created early in the project as an output of the Manage Project Knowledge process. It is then updated throughout the project or phase. Close Project or Phase may seem like the correct answer, as traditionally, lessons learned were often gathered close to the end of a project; however, lessons learned should be collected throughout the project so that the benefits of lessons learned in its earlier stages can be applied to its later stages. Do not confuse the lessons learned register with the lessons learned repository, which is where the information collected in the lessons learned register is transferred at the end of the project or phase and is an output of Close Project or Phase. Although the lessons learned register is listed as an output of the Identify Risks process, it is not created as a result of that process; it one of a group of project documents that may be updated as a result of the Identify Risks process. Likewise, the lessons learned register may be updated as a result of the Direct and Manage Project Work process, but it is not created during that process.
You are a project manager leading a software development project. The members of your project team have not worked together before, so you have decided to hold an off-site event at which the team members can get acquainted and begin learning to work together. Which process are you engaged in?
The correct answer is Develop Team. The off-site event is a team-building activity. Team-building activities are among the tools and techniques used in the Develop Team Process. The other processes listed belong to the Project Resource Management Knowledge Area.
Which of the following procurement processes is the project manager most likely to perform in parallel with the Direct and Manage Project Work process?
The correct answer is Conduct Procurements. Although the process groups often overlap with each other, the project manager is most likely to engage in Conduct Procurements in parallel with Direct and Manage Project Work because both are Executing processes. Control Procurements occurs during Monitoring and Controlling, Plan Procurement Management occurs during Planning, and "Manage Procurements" is not the name of a procurement process.
The project team is completing the transfer of its final product to the next phase of production. This transfer is the output of which process?
Although the outputs for the Direct and Manage Project Work and Close Project or Phase processes are very similar, their wording—and consequently, their focus—is slightly different. Deliverables are the output of the Direct and Manage Project Work process. Final product, service, or result transition is the output of Close Project or Phase.
A project is complete when
The correct answer is when formal acceptance is received. Even if management considers the project to be complete or the team is disbanded, the project is not complete until administrative closure is done, customer acceptance is received, and lessons learned are captured. If the product of the project was not completed and the team was disbanded, administrative closure takes care of properly documenting and closing out the project.
Near the end of a phase in the middle of a project, the project manager holds a meeting to review what went right, what went wrong, and what could be done differently. The primary purpose of such a meeting is to
The correct answer is to improve future performance in later phases and on subsequent projects. The project manager is holding a lessons learned meeting, and the purpose of such a meeting is to identify and document what has been learned, so that mistakes can be avoided and future projects be made more successful. A lessons learned meeting does not determine whether a project or phase is a success, and it is not supposed to be about assigning credit or blame. If the project team is introduced to the customer, it would be more likely to occur in the project kickoff meeting.
When creating a summary budget for the project charter, the project manager knows there is a high degree of uncertainty in estimates because at this point in the project
Risk is highest at the beginning of the project, when there are many unknowns. The other answers are all false. The probability of success for the project is low because there are many unknowns at this point. Stakeholder influence is very high while the project is being defined. Also, expended cost-to-date is very low, because the planning and work are just beginning.
The project manager is starting to fill in a stakeholder register. To which Process Group does this activity belong?
Initiating is the correct answer. The Initiating Process Group is made up of only two processes: Develop Project Charter (in the Project Integration Management Knowledge Area) and Identify Stakeholders (in the Project Stakeholder Management Knowledge Area). The stakeholder register is an output of the Identify Stakeholders process.
The project manager is creating the assumption log. In which process is the project manager engaged?
The project manager is engaged in the Develop Project Charter process. Although the assumption log may be updated as the output of other processes, it is created as an output of the Develop Project Charter process. The original assumptions and constraints detailed in the assumption log are often drawn from the business case.
Focus on goals, feedback, and accomplishment to determine rewards
Laissez-Faire Leadership style
Allow team to make on decisions
Focus on growth, learning development, autonomy
Empower follower with idealized behaviors, inspirational motivation, and encouragement
Inspire with high energy, enthusiasm and self-confidence
Combines transaction, transformation and charismatic leadership
Standards for conduct that project managers must try to achieve. They are not measurable. Still required for compliance.
Standards that establish firm requirements that, in many cases, limit or prohibit behavior.
Objective is ongoing, repetitive, ensures business viability by supporting an area of the business on an ongoing basis.
Project Management is accomplished through five process groups
Initiating, Planning, Executing, Monitoring and controlling, Closing
Project Management is the application of
Knowledge, skills, tools, techniques
Initiating Group Processes
Develop Project Charter
OBS (organizational breakdown structure)
A Hierarchy of organizations involved in the project
BOM (bill of materials)
A structured list of all the materials or parts and quantities needed to produce a particular finished product, assembly, subassembly, or manufactured part, whether purchased or not.
RBS (Risk Breakdown Structure)
A hierarchy of risk sources arranged by risk catagory
A technique for dividing and subdividing the project scope and project deliverables into small, more manageable parts.
inputs of sequence activities process
Project Management Plan
Enterprise environmental factors
Organizational process assets
Cost Management has four main processes
Plan Cost Management
Cost Management Plan includes
Level of precision
Level of accuracy
Units of Measure
Organization Procedures Links
Rules of Performance Measurement
Rough Order of Magnitude (ROM)
This is the estimate which is given in the initiation/ beginning stages of the project.
-25 / 75%
As the project progresses, the estimates are narrowed to something more accurate. -5 / 10%
Cost Variance (CV) =
Earned Value (EV) - Actual Cost (AC)
Schedule Variance (SV) =
Earned Value (EV) - Planned Value (PV)
Variance at Completion (VAC) =
BAC - EAC (Budgeted At Completion - Estimated At Completion)
Schedule Performance Index (SPI) =
Earned Value (EV) / Planned Value (PV)
When calculating EAC (Estimate at Completion) if CPI (cost performance index) is expected to be the same for the remainder of the project, use the following formula
EAC = Budget At Completion (BAC) / Cost Performance Index (CPI)
When calculating EAC (Estimate at completion) if future work will be accomplished at the planned rate, use the following formula
EAC = Actual Cost (AC) + Budget At Completion (BAC) - Earned Value (EV)
When calculating EAC (Estimate at completion) If the initial plan is no longer valid, use the following formula
EAC = Actual Cost (AC) + Bottom-up Estimate to Complete (ETC)
When calculating EAC (Estimate at completion) If both CPI and SPI influence the remaining work, use the following formula
EAC = Actual Cost (AC) + [(Budget At Completion (BAC) - Earned Value (EV) / Cost Performance Index (CPI) X Schedule Performance Index (SPI)
When calculating Estimate at Completion (EAC), assuming work is proceeding on plan, the cost of completing the remaining authorized work can be calculated using the following formula
ETC = EAC (Estimate at completion) - Actual Cost (AC)
When calculating (TCPI) to-complete performance index, when the efficiency that must be maintained in order to complete on plan equals
TCPI = (Budget At Completion (BAC) - Earned Value (EV) /
(Budget At Completion (BAC) - Actual Cost (AC))
Prevention vs. Inspection
Prevention is simply keeping defects from occurring while inspection is about identifying and catching the errors that have occurred before they impact others outside the project. Project Management strongly favors prevention over inspection.
Attribute Sampling vs. Variable Sampling
Attribute sampling is binary; either a work result conforms to quality or it doesn't.
Variable sampling, measures how well something conforms to quality.
Special Cause vs. Common Cause
Special causes are considered preventable by process improvement, while common causes are generally accepted.
Tolerances vs. Control Limits
Tolerances Deal with the limits of your project has set for product acceptance. Focus on the acceptability of the product.
Control limits are set at three standard deviations above and below the mean. As long as the results fall within the control limits, your process is considered to be in control. This is focused on the control of the process.
Fitness for use and conformance to requirements. Does the deliverable solve the underlying need and whether it works properly.
Good Project Manager
Project managers lead, motivate, inspire and delegate to team members, and they influence other project stakeholders.
Plan Resource Management
Create the roles, define the responsibilities, and product the Resource Management Plan
Organizational Breakdown Structure (OBS)
Listing of project activities / work packages under organization's departments
Resource Breakdown Structure (RBS)
Listing of resources by category and resource type. (Example: Labor, Material)
Responsibility Assignment Matrix (RAM)
is a way of showing which positions will be responsible for project deliverables. Positions are represented in columns and work packages are shown in rows. (RACI chart)
Common Causes of conflict during a project
Strategy for Threat - Escalate
Plan to reach out to appropriate party who can easily handle this risk. This is useful for risks which are outside your reach and are normally at program / portfolio or organization level and NOT PROJECT LEVEL.
Strategy for Threat - Avoid
Plan the project in such a way as to eliminate this risk. (Purchase equipment instead of deal rental overcharges)
Strategy for Threat - Transfer
Plan to place the risk responsibility on another party. (buy an insurance)
Strategy for Threat - Mitigate
Plan to reduce the probability and/or impact of that risk. (Example: Install metal storm shutters to mitigate storm damage)
Strategy for Threat - Accept
Plan to not use any other strategy but to just accept the risk and continue with the project.
Strategies for Opportunities - Escalate
Plan to reach out to appropriate party who can easily handle this risk. This is useful for risks which are outside your reach and are normally at program / portfolio or organization level and not project level
Strategies for Opportunities - Exploit
Plan to change the risk probability to 100% so that opportunity is definitely realized. (Complete project ahead of schedule or use organizations best resource)
Strategies for Opportunities - Share
Plan to improve probability or impact of an identified risk by partnering with another party.
(Reference or Joint Venture)
Strategies for Opportunities - Enhance
Plan to increase either the probability or impact of an opportunity
(add more availability to provide enhanced opportunity to get item)
Strategies for Opportunities - Accept
Plan to not use any other strategy, but just accept the risk and continue with the project.
Technical Performance Analysis
Comparing technical achievement with the time it has taken to accomplished.
Low priority risk
Firm Fixed Price (FFP)
Fixed Price Contract ( Risk: Seller)
The seller provides materials and time at a fixed price to the buyer. (Usually with a well-defined statement of work)
Fixed Price Incentive Fee Contract (FPIF)
Fixed Price Contract ( Risk: Seller)
The seller provides materials and time at a fixed price to the buyer and also includes some financial incentives for seller if the Pre-Defined Metric is met
Fixed Price with Economic Price Adjustment (FP-EPA)
Fixed Price Contract ( Risk: Seller)
Useful in long term (years) contract to adjust the contract price based on financial index. Seller bears the performance risk; however, the EPA provides pre-defined protection for both the buyer and the seller tied to interest rates, prices indices or exchange rates.
Point of Total Assumption (PTA)
Fixed Price Contract ( Risk: Seller)
It is the cost point beyond which the seller incurs all incremental costs, assuming 100% of the risk of cost increases.
Cost Plus Fixed Fee (CPFF)
Cost Reimbursable Contract (Risk: Buyer)
The seller passes all allowable costs back to the buyer and receives an additional fixed fee for value-added. These type of contracts are used if SCOPE IS EXPECTED TO CHANGE during the course of the project.
Cost Plus Incentive Fee Contract (CPIF)
The seller passes all allowable costs back to the buyer and receives an additional predetermined incentive fee.
Cost Reimbursable Contract (Risk: Buyer)
Cost Plus Award Fee Contracts (CPAF)
Cost Reimbursable Contract (Risk: Buyer)
The seller passes all allowable costs back to the buyer and receives an additional fee based upon seller's performance clearly stated and defined in the contract. The sellers performance is determined by the buyer.
Time and Material Contracts
The seller charges the buyer for time worked and materials. Appropriate when the buyer has NOT PROVIDED A WELL DEFINED STATEMENT OF WORK and you are looking for SME services.
A hybrid contract of fixed price and cost reimbursable contracted.
Least Cost Selection Method
Least cost wins. Applicable for routine nature procurement work.
Qualification Only Selection Method
Small procurement work. The buyer makes a selection on basis of bidders qualifications, experience, expertise, references, specialization and credibility.
Quality Based / Highest Technical Proposal Score Selection Method
First a technical proposal is requested by buyer. Seller with best technical score is selected to provide their financial proposal. After negotiation, a bidder is selected.
Fixed Budget Selection Type
The buyer gives a fixed budget to all the bidders and then select the bidder with the highest ranking technical proposal within that budget. This is used when the SOW is clearly defined and no changes are expected.
Stakeholder Analysis (Data Analysis Tool)
The output of this tool is the list of stakeholders with information such as stakeholder position, stakes, roles, expectation.
Power / Interest Grid, Power / Influence Grid, Impact / Influence Grid
Tool in stakeholder mapping which is Classification of stakeholders on the basis of level of authority (power), Level of concern on the outcome (interest), ability to influence the outcome (influence)
More sophisticated 3 dimensional mapping of stakeholders (multiple catagorizations)
Classifying stakeholders based upon power, urgency and legitimacy (involvement)
Directions of Influence
Classifying stakeholders on the basis of their influence. (Upward, Senior Management), Downward (Team), Outward (Outside project team; end users) Sideward (peers)
List and Classification of stakeholders; May be published or kept for PM use only. It includes identification information, assessment information, stakeholder classification.
5 Levels of Quality Management
1. Let the customer find the defects (most expensive)
2.Detect and correct the defects before the deliverables are in the customers hands
3. Use quality assurance to examine and correct the process itself not just special defects.
4. Incorporate quality into the planning and designing of the project and product
5. Create a culture throughout the organization that is aware and committed to quality processes and products.
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