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by rocksaregneiss1, Dec. 2015

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What is project management?	Getting from point A to point B as effectively and efficiently as possible Or The application of knowledge, skills, tools and techniques to project activities to meet the project requirements
Project vs. Operation	Projects are temporary and operations are ongoing (to sustain organization)
Examples of operations	Production, manufacturing, accounting, customer service, etc. No end date for operations
Programs	Programs are a collection of related projects that are coordinated, for example and developments, new technological infrastructure
Portfolios	Collection of projects and programs that are prioritized and aligned with strategic business activities. They contain projects and programs which may not be related.	Cars
PMO	Project management office
What is a PMO?	Provide centralized and coordinated management of projects. Key stakeholder and decision maker
Primary functions of a PMO	manage shared resources maintain project management best practices and standards develop policies, procedures, templates, etc coordinate communications * coaching, mentoring, training, oversight, and monitoring *governance organization
Three types of PMO	1. Supportive 2. Controlling 3. Directive
Supportive PMO	Primarily supporting organization, provides templates, best practices, training, etc. No authority to enforce.	Low degree of control
Controlling PMO	Provide support but also requires adherence to certain standards, methodologies, etc. Same as supportive, but authority to ensure adherence.	Moderate degree of control
Directive PMO	Controls projects by managing them directly. Estima supportive and controlling, but full control.	High degree of control
OPA	Organizational process assets
What is OPA?	Process related assets that can be used to influence the project's success
Two main categories of OPAs	1. Process and procedures ( how the work SHOULD be done). Standards, policies, work instructions, templates, change control procedures. Standard instructions. 2. Corporate knowledge base (how did the work actually get done in past). Project files, historical information, configuration management knowledge bases, financial databases	Review before projects will allow to get better. Pg 27-28.
EFF	Enterprise environmental factors
What are EFFs?	Internal and external factors that may influence the project success. Generally intangible and not process specific. Think of this as the world we work in
EFF examples	culture industry standards infrastructure market condition (strikes, etc) political climate of organization work authorization system project management information system existing human resources (people) software standards (LG)	Pg 29
EFF or OPA	Generally speaking, the different theater will be the OPA's are generally unique to your organization. If it is something housed in your corporate knowledge base, it should be an OPA (templates, policies)
Project life cycle	Can begin and end in one or more product life cycles
Product life cycle	And when it stops being that product. If car is sent to junk yard that's the end of its life cycle
Project phases	Divisions within project 1. Feasibility 2. Design 3. Develop 4. Deploy
Process groups	Initiate, plan, execute, monitor and control, close
Process group vs project phase	Process groups happen at each project phase. At the end of each is a phase gate and possible kill point
Project phase relationships	1. Phase to phase 2. Predictive life cycles 3. Iterative and incremental life cycles 4. Adaptive (change driven or agile)
Phase to phase relationships	Sequential: face can only start once a previous phase has completed. Overlapping: phase starts prior to the completion of the previous phase
Stakeholders	-Typically are actively involved in project. - interested may be positively or negatively impacted by the project - could influence the project
Stakeholder examples	-End user -Customers, vendors, partners -Upstream or downstream system -Sponsor, program/ portfolio manager, PMO -functional or operational managers - nonhuman, animals, air, water, land (represented by humans/ organizations)
Organizational influences	* corporate and societal culture (EFFs- shared work beliefs, expectations, norms, work ethic, work hours, views of authority) * organizational structure within company (functional vs matrix vs projectized	Pg 21-26
Pros and cons of organizational types	Assume strong matrix
Pros and cons of a functional organizational structure	Pro: team member has a place to return to Con: may not have the full skill set to run and coordinate project
Pro and con of weak/ balanced/ strong matrix organizational structure	Pro: better p.m. skills, shared resource pool Con: conflict between pm and functional manager
Pro and con of projectized organizational structure	Pro: PM's have high level of authority Con: team members may be on the bench or have no work at project's end
Roles within organizational structure	Project expediter Project coordinator Project manager
Project expediter	Staff assistant to the executive who has responsibility for the project. Can make few if any decisions. Primary responsibility lies in ensuring the timely arrival of resources.
Project coordinator	Reports to a higher level in the hierarchy period has authority to assign worked individuals, but lacks full of thority of project manager. As defined by PMI
Project manager	Sole person Tasked with achieving the project objectives. Lead person responsible for communicating with all stakeholders including sponsor. May report to a functional manager or program or portfolio manager.
Project selection methods	Mathematical approach ( constrained optimization methods) comparative approach (benefit measurement methods)
Mathematical project selection approaches	-linear approach - integer approach - dynamic approach - multi objective approach
Project selection comparative approaches	Project to project or compare project to desired outcome -scoring model - peer review - murder boards - Economic models
Comparative approach scoring models	which project to select based on risk, resources, etc
Murder boards	Panel that tries to poke holes in your argument
Comparative approach economic models	- cost benefit analysis - payback period - discounted cash flows - net present value - internal rate of return (IRR)
Benefit cost analysis (BCR)	Compares project benefits to the cost to drive a ratio from which a decision can be made. For example, if a project generates $125,000 in benefits and costs $50,000, the benefit cost ratio would be 2.5 (5:2) BCR=1 is breaking even
Payback period	The number of periods required to recover a project cost. For example, if a project cost 1 million dollars and will generate revenue of $100,000 per year, than the payback period would be 10 years.
Discounted cash flow	Calculates in today's (discounted) terms of what the value of a project would be, given cash inflows and outflows over a period of time. At a particular interest rate
Present value (PV)	- a formula that calculates the value today of a future cash flow PV = FV/ (1+I)^n
Internal rate of return (IRR)	- the discount interest rate when the NPV equals zero or less (concept only on exam) - always choose the project with the highest positive IRR, reject negative - assume that cash flows are reinvested at the IRR value
Sunk costs	Project costs spent to date
Law of diminishing returns	Adding more resources doesn't proportionately increased productivity
Working capital	Current assets minus current liabilities
Depreciation	Straight line (same amount each year), accelerated (examples: double declining balance and sum of years digits)
Assumptions	Something that is believed to be true or something that is taken for granted. Source of risk
Constraints	A factor that limits the project team's options, any restriction placed on the project. Examples: resources, schedule, budget, scope, etc Dates are always classified as a constraint. Never a requirement
Opportunity cost	The opportunity given up by choosing another project	The lower the opportunity cost, the better
Progressive elaboration	Starting with a broader plan, then planning in greater detail as time goes by and information becomes available. Estimates get more accurate.
Following values should be its highest possible when selecting between projects	Benefit cost ratio Net present value Return on investment Irr
For the following, the lower value is better	Opportunity cost Payback period
The project team	Includes the project manager, the project management team, and team members. Carry out the work Determine which processes are needed, called "tailoring" Prepare estimates Initially resolve interpersonal conflict
Project management team	A subset of the project team and is responsible for the project management and leadership activities of the project
Project management team responsibilities	- the sponsor is not part of this team, works directly with it. Helps remove road blocks for the project management team. - the initial planning work is done by the project management team - may help write the project charter - analyze and understand scope - assess team effectiveness. Whole project management team's responsibility.
Process	A set of interrelated actions and activities performed to achieve a pre-specified product, result, or service. Each process has an input and output.
Each individual process has:	- inputs - tools and techniques -output
Inputs	Any item that is required by a process before that process proceeds
Tools	Often something that is tangible, such as a template, chart, or software program, used in performing an activity to produce a product or results
Technique	A defined, systematic procedure to perform an activity to produce a product or result or delivery service, and that may employ one or more tools
Output	A product, service, or result generated by a process
5 process groups	Logically grouped subsets of project management processes (which do not always occur sequentially) -initiating -planning -executing -monitoring and controlling -closing
Initiating	Process group Defining a new project or new phase of an existing project ; obtaining authorization to start the project or phase ; setting high level expectations
Planning	Process group Establishing the complete scope of the project, defining the objectives and refining courses of action taken to attain the objectives
Executing	Prices group Performing the works defined in the project management plan to satisfy the project specifications
Monitoring and controlling	Tracking, reviewing, and regulating the oeuvres and performance of the project; identifying areas in which changes to the plan are required; documenting and implementing the corresponding changes.
Closing	Finalizing all activities across all prices groups to formally close the project or phase
10 knowledge areas	-project integration management -project scope management -project time management -project cost management -project quality management -project human resources management -project communication management -project risk management -project procurement management -project stakeholder management
Project integration management	PM's primary focus -incorporating and organizing the project work - processes and faces get defined, integrated, consolidated, and unified here
Integration management processes	-develop project charter - develop project management plan - direct and manage project work - monitor and control project work - perform integrated change control - close project or phase
Initiating process group	- define initial, high-level requirements - initial scope is set, stakeholders are identified, and financial resources are committed - to gain authorization to start a new project or phase
Initiation group processes	-develop project charter - identify stakeholders
Develop project charter	This process formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
Develop project charter inputs	-project statement of work (SOW) -business case -agreements -enterprise environmental factors (EFFs) - organizational process assets (OPAs)
Project statement of work (SOW)	The narrative explanation of what the project in Tales, this includes the business need, scope description, and organization's strategic plan This is the highest level of scope description
Business case	Business reason project is being done Market demand, organizational need, strategic opportunity, customer request, ecological impact, social need
Agreements	Contracts, letters of intent, etc
EFFs	Government standards, organizational culture, market conditions, industry standards, etc
OPAs	Templates, historical information, lessons learned
Develop project charter tools and techniques	-expert judgement -facilitation techniques
Expert judgement	The use of knowledge, training, expertise, or judgment. The skills of the experts needed on the project.
Expert judgment can come from:	-Subject matter experts (SME) - stakeholder, customer, sponsors, etc - consultants - professional or technical associations - industry groups - project management office (PMO)
SME	Subject matter experts
Facilitation techniques	Brainstorming, conflict resolution, problem solving, meeting management
Develop project charter outputs	Project charter
What may a project charter include?	- project purpose or business justification - project description, goals, objectives, and success criteria. ( specific, measurable, attainable, relevant, timely) - high level requirements, risks, milestones, and budget - identifies responsibility and authority level for project manager and sponsor - identifies what constitutes project success and who makes that decision sign off. One person or group. - preassigned resources if any may be identified here. P.m. is named on the project charter.
Project stakeholder management	Insurance the effective communication and management of stakeholders
Project stakeholder management processes	-identify stakeholders -plan stakeholder management - manage stakeholder engagement - control stakeholder engagement
Identify stakeholders	Process of identifying all people or organizations that are impacted by the project, and documenting how they are impacted, and their involvement level
Identify stakeholders inputs	Procurement documents
Procurement documents	If the project is the results of a procurement activity or contract, the parties to that contract are key stakeholders. Iterative, updated, ongoing -As subs are hired, their added (contracts with subs)
Identify stakeholders tools and techniques	Stakeholder analysis and meetings
Key stakeholders	Decision making ability anywhere in the process
Profile analysis Meetings	Profile analysis meetings are designed to develop an understanding of major project stakeholders. Team decides who key stakeholders are.
Stakeholder analysis	-A technique to systematically determine whose interests should be taken into account throughout the project. - identifies interests, influence, and expectations
Stakeholder analysis steps	1. Identify all potentials stakeholders. Talk to currently identified stakeholders to find more stakeholders. 2. Analyze potential impact each stakeholder (may be groups) 3. Assess how each key stakeholder will likely react or respond to various situations
Stakeholder quad grid
Example of stakeholder salience model
Identify stakeholders output	Stakeholder register
Stakeholder register	- identification information (name, organization, role, location, contact information) - assessment information (expectations, influence, interest) - classification (internal, external, attitude) The stakeholder register should be consulted and updated as needed. Excel is the best tool.
Process planning group	- total scope definition of curves and bass lines are set, accepted and approved version - planning is an iterative process - totally define every part of project specifics
Project management plan	-Guides overall execution of the project. -Documenting what needs to be done to define, prepare, integrate, and coordinate all subsidiary objectives - incorporates the outputs from most of the other planning processes into one document
Who should sign off on the project management plan	The project manager, the sponsor, the project team, and key stakeholders
16 elements of a project management plan	- the nine knowledge area plans - the three baselines ( scope, schedule, cost) -4 additional ( change, configuration, requirements, process improvements)
Change management plan	Documents how change will be controlled. Part of the project management plan.
Change control system	A system to track and manage changes. ( any software package is eff, could be eff or OPA (filling)). Part of the project management plan
Configuration management plan	Version control plan and product features that are configurable. Part of the project management plan
Configuration management system	Part of the project management information system (PMIS) is that tracks and manages changes to the deliverable version control. System used to manage configuration is an eff. Part of the project management plan
PMIS	Project management information system	trucks and manages changes to deliverables. Version control.
Process improvement plan	Defines how you will improve the project management process to be a more efficient project manager. Part of the project management plan
At what point in the project should we have a fully completed project management plan?	End of planning, but before execution
Project scope management	Ensures all required work is done and no unnecessary work is done (in scope vs out scope)
Product scope	The features, functions that characterize a product, service, or result. Project scope is measured against the project management plan, whereas product scope is measured against the product requirements
Project scope management processes	-plan scope management -collect requirements -define scope -create WBS - validate scope - control scope
Plan scope management	The process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled
Scope management plan	- a document that describes how the scope will be defined, developed, monitored, controlled, and verified. How we're going to do things. Does not include scope.
What does a scope management plan include?	- process for preparing a scope statement. Who writes, reviews, etc - process for developing, approving, and maintaining the work breakdown structure WBS - process specifying how formal acceptance of deliverables will be attained. Sign at the end of Project payment might count - process for requesting, making changes to scope statement
Requirements management plan	Output of plan scope management. A how to, does not contain requirements. - how requirements will be planned, tracked, and reported - how impacts will be analyzed, traced, tracked, and reported - prioritisation process - product metrics. which ones and why - attributes to be captured on the traceability matrix
Collect requirements	The process of determining, documenting, and managing stakeholder needs and requirements to meet the project objectives
Collect requirements inputs	Stakeholder management plan
Stakeholder management plan	- create list right after identifying stakeholders - identifies the management strategies required to effectively engage stakeholders
Collect requirements tools and techniques	- interviews - focus groups - group creativity techniques - questionnaires and surveys - observation - prototypes - benchmarking - context diagrams - document analysis
Interviews	Collect requirement tool and technique. Asking questions and documenting responses. Subject matter experts (SME)
SME	Subject matter experts
Focus groups	Conversing with a group of SMEs with a trained moderator. Collect requirements tool and technique
Facilitated workshop	Cross-functional meeting Collect requirements tool and technique
Group creativity techniques	Brainstorming, nominal group technique (ranking and voting), idea mind mapping, multi-criteria decision analysis, and affinity diagram. Collect requirements tool and technique
Group decision making techniques	Unanimity all agree, majority (greater than 50%), plurality (largest block), and dictatorship. Collect requirements tool and technique
Questionnaires and surveys	SharePoint. Collect requirements tool and technique
Observations	Job shadowing (follow) versus participant observer. Requirements of task or job position. Collect requirements tool and technique
Prototypes	Models, mockups, draft, at cetera. Collect requirements tool and technique
Benchmarking	Comparison versus a standard. Microsoft Office is a productivity benchmark. Collect requirements tool and technique
Context diagrams	Visually depicts relationships between systems, processes, and people. Collect requirements to land technique
Document analysis	Analyzing documentation to help identify requirements. Collect requirements tool and technique
Collect requirements outputs	- requirements documentation - requirements traceability matrix
Requirements documentation	Word file or requirements traceability matrix. Describes how individual requirements meet the business need and includes several components. Not part of the project management plan. It is considered a project document.
Requirements documentation components	- business requirements - stakeholder requirements - solution requirements - project requirements - transition requirements - requirements assumptions, dependencies, constraints
Business requirements	Business and project objectives for traceability, business rules, guiding principles. Part of the requirements documentation
Stakeholder requirements	Impact to other organizational areas, impacts to other entities. Part of requirements documentation
Solution requirements	Functional and non functional, support and training, quality standards. Part of requirements documentation
Project requirements	Levels of service, performance, acceptance. Part of requirements documentation
Transition requirements	Temporary capabilities during transition period. Part of requirements documentation
Requirements traceability matrix	Done in Excel. Tracing requirements for the following areas: - business need, opportunity, goal, objective - project objectives, scope, WBS deliverables - product design - product development - test strategy and test scenario - high level requirements to more detailed requirements - other columns: description, owner, source, priority, status, acceptance criteria
Requirements traceability matrix example	Don't miss requirements when going from one phase of a project to another
Define scope	Outlines with the project includes and what it excludes. Detailed definition of the project
Define scope tools and techniques	- product analysis (what should go into the product) - alternatives generation (high altitude view of the entire project. Come up with alternative ways of getting the project done. Unique approach. Project level)
Product analysis	- product breakdown, systems analysis, requirements analysis, systems engineering, and value engineering - only for projects that have a product as a deliverable
Alternatives generation	- identifying alternative approaches to complete the project. Brainstorming, lateral thinking, analysis of alternatives, etc
Lateral thinking	A highly creative approach, this relies on reasoning that is not immediately obvious and generate ideas not generally obtainable using traditional parameters (thinking outside the box)
Define scope outputs	- project scope statement - project documents updates
Project scope statement	- detailed description of the project deliverables and the work required to create those deliverables - product scope description, acceptance criteria, deliverables, inclusions, exclusions, constraints, assumptions
Project documents updates	Stakeholder register, requirements documentation, requirements traceability matrix, etcetera
Create WBS	- process of subdividing project deliverables into more manageable parts. Deliverable-oriented hierarchy of the project work Every piece of work gets included (100% rule) Lowest level = work package
Decomposition	Breaking project work and deliverables down into smaller, more manageable components
Five steps of decomposition	1. Identify the deliverables and work 2. Organize the WBS. Phase, deliverable, etc 3. Decompose the WBS into lower level components 4. Assign unique identification codes (collectively known as the code of accounts) 5. Verify the WBS. Verify all elements of the project are included. Level of breakdown is sufficient one person group is responsible for each element
Create WBS outputs	- scope base line. Approved and accepted starting point - project requirements updates
Scope baseline	- project scope statement - WBS - WBS dictionary
Project scope statement	Detailed description of the project deliverables and the work required to create those deliverables
WBS	Hierarchical to decomposition of the total scope of work to be performed. Types of breakdown: by phase of the project life cycle, by major deliverable, by subproject
WBS dictionary	Description of work, responsible persons or organization, milestone schedules. Describes each work element, who's responsible
Control account	A management control point where scope, budget, actual cost, and schedule or integrated and compared to earned value for performance measurement. Previously called cost account
Planning package	Work breakdown structure component below the control account with known work content, but without detailed schedule activities. Site mob demob, fixed price, don't need to break it down
Work package	Work defined at the lowest level of the WBS, for which accurate cost and duration can be estimated and managed. One step removed from an activity list
Code of accounts	Any numbering scheme used to uniquely identify each component of the WBS
Chart of accounts	A list detailing all accounts used by the organization to identify areas of expenditures not part of the WBS itself. Billing vendors and labour separately.
Project time management	Processes required to manage timely completion of the project
Project time management processes	- plan schedule management - define activities - sequence activities - estimate activity resources - estimate activity durations - develop schedule - control schedule
Plan schedule management	The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule
Planned schedule management tools and techniques	Analytical techniques- choosing the appropriate options to help estimate, developed, and manage the schedule. He scheduling methodology, scheduling tools and techniques, estimating approaches, formats, and project management software
Plan schedule management outputs	-Schedule management plan
Schedule management plan	A component of the project management plan, it sets forth the approaches used and activities needed to develop and manage the schedule
What does the schedule management plan establish?	- scheduling methodology and tools used - level of accuracy needed for duration estimates - units of measure, such as staff hours - process used to update the status and record progress of the project - variance thresholds indicating allowable schedule variation before action must be taken
Define activities	The process of identifying the specific actions required to complete the project work.	Activities are not on WBS. WBSD composes the project down to the work package level, but here we decompose those work packages down further into discrete activities
Rolling wave planning	The process of planning near-term activities in great detail and longer term activities at high level. This is an iterative, ongoing process, and is a form of progressive elaboration.	Can be done at activity level or WBS higher level
Define activity outputs	- activity list - activity attributes - milestone list
Activity list	Detailed list of all activities that are required to complete the project. Sufficient detail that the project team members understand what work is required
Activity attributes	Details that further explain the activity such as activityid, WBS ID, activity name, description, predecessor, successor, leads, lags, the person responsible, constraints, assumptions, location, level of effort, etc
Milestone list	A list of significant points in a project. Ie submission to the FDA, development of a prototype
Sequence activities	Process of identifying and documenting relationships among project activities. Putting activities in the proper order. Can do right after defining activities.
PDM	Precedence diagramming method
Precedence diagramming method (PDM)	A method used in critical path methodology to build a network diagram showing activity relationships - also known as activity on node (AON)
CPM	Critical path methodology
AON	Activity on node
Four types of PDM relationships	- finish to start: A finishes before B starts - finish to finish: A finishes at the same time/ before B finishes - start to finish: -A starts before B finishes - start to start: A starts before B starts
Dependency determination	- mandatory: also called hard logic or hard dependents. You have to build the walls before the roof - discretionary: also called soft logic. Preferred logic. Arbitrary. Prefer to paint walls before lay carpet - external : outside the project teams control. Must wait for FDA approval before proceeding with next step. - internal: generally within the control of the project team
Lead	Allows an acceleration of a successor activity. Always a negative number
lag	Delay
Sequence activities outputs	- project schedule network diagrams - project documents updates
Project schedule network diagrams	A visual representation of the relationship between schedule activities. Just relationships, not a schedule yet
Three types of float	-Total float (slack) -free float -project float
Total float (slack)	The amount of time that is scheduled activity can be delayed without delaying the project completion date. Total float does not get added together. Float is shared across a path.
Free float	The amount of time that has scheduled activities can be delayed without delaying the successor activity. This is calculated by subtracting early finish plus one of the current activity from the early start of the successor activity. ES-(EF+1)
Project float	The amount of time a project can be delayed, without impacting the externally imposed project deadline set by the customer or management
Modeling techniques, develop schedule	-What - if scenario analysis: changing conditions to simulate different possible scenarios and outcomes - simulation: Monte Carlo analysis ( random, iterative computer model showing probability distributions)
Simulation modeling technique	Monte Carlo analysis. Random, iterative computer model showing probability distributions
Leads and lags	Head Start (lead) and delay (lag). Adjust with Leads (compression of time) and legs (expansion)
Schedule compression	-crashing - fast tracking
Crashing	Adding resources to critical path tasks, which exchanges higher cost for shorter schedule duration. Try to do this at the lowest incremental cost. Add resources to shorten time
Fast tracking	Converts sequential activities to parallel, which increases risk. Any length of overlapping, even 30 minutes
Scheduling tool examples	Microsoft Project, Excel
Develop schedule outputs	- schedule baseline - project schedule - schedule data - project calendars
Schedule baseline	Accepted and approved version of the schedule. Part of develop schedule outputs.
Project schedule	Planned start and finish dates for each activity. -Milestone chart, bar chart, project schedule network diagram.	Different from the schedule baseline
Schedule data	Include schedule milestones, scheduled activities, activity attributes, assumptions and constraints constraints. May also include resources by time Period, alternative schedules, contingencies. Part of develop schedule output
Project calendars	Identifies working days and shifts that are available for scheduled activities. Don't confuse with resource calendars. Parts of develop schedule outputs
What project documents updates may have to be done as part of develop schedule outputs?	Activity resource requirements, activity attributes, calendar, risk register, etc
Plan cost management	The process that establishes the policies, procedures and documents for planning, managing, expending, and controlling project costs. A how to.
Project cost management	Includes the processes involved in estimating, budgeting, and controlling costs
Plan cost management tools and techniques	Analytical techniques - choosing strategic options such as self funding or financing, may also detail strategies for making, purchasing, renting or leasing. - Financial techniques employed to make project decisions may include payback period, ROI, irr, discounted cash flow, and NPV.
Cost management plan	A component of the project management plan that describes how the project costs will be planned, structured, and controlled. I
Estimate costs	The process of developing an approximation of the monetary resources needed to complete the project activities.
Fixed costs	Business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as rent being paid per month. Costs will not change.
Variable costs	Expenses that change in proportion to the activity of a business. When activity is decreased, less raw material is used, so spending for raw material falls. Will change with amount of work	Fuel in a bulldozer
Direct costs	A cost that can be directly related to producing specific goods or performing a specific service. For example, the wages of an employee engaged in producing a product can be attributed directly to the cost of manufacturing that product
Indirect costs	Costs that are not directly attributable to a particular project, such as heat and light. Overhead. Benefit several projects.
ROM	rough order of magnitude. -25% to +75% ( typically used during initiation when details are not yet developed)
Definitive estimate	-5% to +10% available after execution has begun
Human resource management plan	An input of estimate costs. - a plan that provides guidance on how to project human resources should be defined, staffed, managed and eventually released. It is part of the project management plan. - cost implications: training, staffing, rewards
Estimate costs tools and techniques	- Reserve analysis - cost of quality - project management software - vendor bid analysis
Reserve analysis	Cost estimates often include contingency reserves ( based on identified risks) to account for uncertainty. These are typically derived from risk analysis.
Cost of quality	- cost of conformance: prevention ( spent to prevent errors) and appraisal costs ( spent to evaluate). Must always be added to project costs. - cost of non conformance: internal and external failure costs. Money have to spend because of errors.
Project management software	Software, spreadsheets, simulations, statistics
Vendor bid analysis	What the project should cost based on competitive bids. Just numbers.
Estimate costs outputs	- activity cost estimates - basis of estimates (BOE) - project documents updates
Activity cost estimates	Probable cost to complete the project activities. Summary or detailed. Include things not attached to project tasks.
BOE	Basis of estimates. Explanation of how cost estimates were derived, including formulas, assumptions, constraints, possible cost ranges, confidence level. Allows you to know how risky their estimates are.
Determine budget	The process of aggregating all activity or work package cost to establish a baseline for the project
Determine budget tools and techniques	- cost aggregation - historical relationships - funding limit reconciliation
Cost aggregation	Process of rolling up costs through each level of the WBS
Historical relationships determining budget	Using parametric or now just estimate models based on past experience
Funding limit reconciliation	Variance between funding limits and planned expenditures may necessitate rescheduling work. Making sure project baseline fits.	Example: quarterly budgets for public companies
Determine budget picture
Determine budget outputs	- cost baseline - project funding requirements - project documents updates
Cost baseline	Authorized, time saved, total project budget used to measure, monitor, and control cost performance of the project. Appears as an S curve on a graph. Cumulative line. Does not include management reserves
Project funding requirements	Total and periodic funding requirements are derived from the cost baseline. Funding maker in incremental amounts.
Project quality management	Processes that determine quality policies, objectives, and responsibilities to satisfy project quality requirements
Plan quality management	The process of identifying quality requirements or standards for the project and documenting how the project will demonstrate compliance. Do not define quality requirements here. That was collect requirements
Quality management methodologies	- Six Sigma - Lean Six Sigma - quality function deployment
Six Sigma	Seeks to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. Each project follows a defined sequence of steps and has quantified efficiency target. Cost reduction and or profit increase.
Lean Six Sigma	A managerial concept that blends lean with Six Sigma to eliminate the seven kinds of ways to achieve a defect rate 3.4 defects or less per million opportunities
Quality function deployment	Seeks out customer needs, uncovers positive quality that impresses the customer and translates these into design characteristics and deliverable actions. Voice of the customer
7 kinds of waste	1. Defects 2. Overproduction 3. Transportation 4. Waiting 5. Inventory 6. Motion 7. Processing	DOTWIMP
Quality vs grade	- quality is the degree to which a set of inherent characteristics fulfill requirements. - quality describes how well a product or service is made. Low quality is always bad. - grade is a Category assigned to products or services having the same functional use but different technical characteristics. Toyota vs Lexus. Low grade is fine as well as long as quality is high
Prevention over inspection	A modern quality philosophy that says quality is planned and designed in. Not inspected in. Thus, you should spend a lot of time and resources planning and managing quality in on the front end. See cost of quality. Inspections will not improve quality.
Estimate activity resources	The process of estimating the type and quantity of material, people, equipment, or supplies required to perform each activity. No specific names, three engineers
Estimate activity resources inputs	- resource calendars - risk register - activity cost estimates
Resource calendars	Calendar that identifies the working days and shifts on which each specific resources available. This includes human resources as well as quipment etc. I just as you go along. In beginning it's types and quantities
Risk register	Document in which the results of risk analysis and risk response planning are recorded. After risk planning is done, come back
Activity cost estimates	Probable cost to complete the project activities (summary or detailed). After cost estimates are done, come back
Estimate activity resources tools and techniques	- alternative analysis -published estimating data -bottom up estimating -project management software
Alternative analysis	Examples: resource skill levels, size and type of machinery, different tools, and make or buy decisions
Published estimating data	Examples: means building construction cost data
Bottom-up estimating	It's an activity can't be estimated as a whole, it can be broken down into smaller parts which are then aggregated for the estimate. This is time consuming, but also the most accurate.
Project management software	Any software you use to estimate Examples: primavera, ms project, clarity, excel.
Estimate activity resources outputs	-activity resources requirements - resource breakdown structure - project documents updates
Activity resource requirements	Identifies the types and quantities of resources required for each activity and work package.	Estimate activity resources output
RBS	Resource breakdown structure
Resource breakdown structure	Hierarchical breakdown by resource category and type. Includes labor, materials, equipment, supplies, etc. Large projects. The numbers are not a code of accounts (only on WBS), numbers are resource codes
Estimate activity resources project documents updates	Activity list, activity attributes, resource calendars, etc
Estimate activity durations	The process of estimating the number of work periods to complete each activity with the estimated resources.	Work periods Can be a trick on the test
Effort	-The number of work units reliever units necessary to finish an activity -period may be expressed as staff hours, days, or weeks	For example, a resource could spend 10 hours (effort) over three weeks (duration) reviewing a specification.
Duration	The number of work periods Needed to complete an activity	For example, a resource could spend 10 hours (effort) over three weeks (duration) reviewing a specification.
Estimate activity durations tools and techniques	- analogous estimating - parametric estimating -three-point estimating -group decision making -reserve analysis -Delphi anonymous
Analogous estimating	Using similar previous project as a reference for your project, making adjustments for known differences (aka top-down estimating). This is the least accurate, but most expedient method
Parametric estimating	-This employs a statistical relationship using historical data and other variables. This more accurate than analogous estimating. - based on expert judgment, historical information, etc - example colon if a resource can install 25 meters of cable per hour, the duration to install 1000 meters would be 40 hours
Three-point estimating	Three estimates from the same person. 1. Everything goes right. Optimistic estimate 2. Everything goes wrong. pessimistic estimate 3. Actual estimates - triangular distribution ( simple average) o+p+a/3 - beta distribution (PERT) Optimistic+ 4*most likely+ pessimistic/6. P+4M+O/6
PERT	Program evaluation review technique P+4M+O/6
Group decision making techniques	-brainstorming - Delphi technique (blind anonymous requirements gathering) - nominal group techniques
Delphi technique	Blind or nonymous requirements gathering. Would use: 1. Wide range of experience in group. All PEs, many years plus few years 2. Political or emotional factors involved
Reserve analysis	This involves out in contingency reserve to the schedule to account for uncertainties. The contingency reserve maybe a percentage of the activity duration, or fixed number of work periods. Quantitative methods such as Monte Carlo analysis may be used to help determine how much Reserve is needed. Don't pad by adding hours, identify risks and add contingency
Standard deviation	-6 Sigma: 99.9997% (3.4 defects out of 1 million) -3 Sigma:99.73% -2 Sigma: 95.46% -1 Sigma: 68.26%
Duration formula	Duration the function of effort required and resources available. D= W / R D is duration W is work (effort) R is resources
Develop Schedule	The process of analyzing activity sequences, directions, resource requirements, and schedule constraints to create the project schedule
Project staff assignments	- specifies which resources are assigned to each activity. - can be reflected via a project team directory, memos two team members, names inserted into other parts of the project management plan, etc. -irritative	Input to develop schedule
Develop schedule tools and techniques	- schedule network analysis - critical path method - critical chain method - resource optimization techniques
Schedule network analysis	A technique used to generate the project schedule. Any technique. Be wearing when you see this as an answer on the test.
Critical path method	The most common develop schedule tool and technique. Calculates the possible start and finish time for activities by using a forward and backward pass analysis through the schedule network
Critical chain method	develop scheduled tool and technique. Takes the critical path method and adds resource constraints, project buffers which are at it at the end of schedule, and feeding buffers with your added to not critical path tasks which feed into the critical chain so they don't run late and delay the project completion
Resource optimization techniques	Develop schedule tool and technique. -resource leveling ( project schedule is allowed to slip) - resource smoothing (not allowing schedule to slip)
Resource leveling	Resource optimization technique. Adjusts activity start / finish dates when resources have been over allocated or certain resources are scarce. It often let's the schedules slip in order to smooth out an optimized all resources
Resource smoothing	Resource optimization technique I just activities such that the requirements do not exceed certain predefined resource limits. The schedule cannot slip with this method, so activities may only be delayed by periods of time that is equal to or less than their free and total float. This method may therefore not allow all resources to be optimized.
Similarities between CPM and CCM	Both CPM and CCM as longest duration paths through the network diagram
Differences between CPM and CCM	1. To manage the schedule, CPM uses float. CCM uses buffers. 2. CPM does not consider resource limitations
Feeding buffers	Protect critical chain from slippage
Project buffer	Just like feeding buffer, but last thing before project ends. Protects project from slippage
Three types of float	- total float (slack) - free float - project float
Total float (slack)	Amount of time that is scheduled activities can be delayed without delaying the project completion date. Total float does not get added together. Float is shared across a path. Calculated on each activity
Free float	the amount of time that is scheduled activity can be delayed without delaying the successor activity. This is calculated by subtracting the EF +1 of the current activity from the ES of the successor activity. ES- (EF+1)
Project float	The amount of time a project can be delayed, without impacting the externally imposed project deadline set by the customer or management.
Develop schedule modeling techniques	-what-if scenario analysis: changing conditions to simulate different possible scenarios and outcomes. - simulation: Monte Carlo analysis. Random, iterative computer model showing probability distributions.
Develop schedule leads and lags	Head start (lead) and delay (lag). Adjust with leads (compression of time) and lags (expansion of time)
Schedule compression	crashing and fast tracking
Schedule crashing	Adding resources to critical path tasks, which exchanges higher cost for shorter scheduled duration. Try to do this at the lowest incremental cost. Add resources to shorten time
Schedule fast tracking	Convert sequential activities to parallel, which increases the risk. Any length of overlapping, even 30 minutes
Develop schedule outputs	-schedule baseline - project schedule - schedule data -project calendars - project management plan updates -project documents updates
Schedule baseline	Accepted and approved version of the schedule
Project schedule	Planned start and finish dates for each activity. Milestone chart, bar chart, project schedule network diagram.
Schedule data	Includes schedule milestones, scheduled activities, activity attributes, assumptions and constraints. May also include resources by time period, alternative schedules, contingencies
Project calendars	Identifies working days and shifts that are available for scheduled activities. Don't confuse with resource calendars which are each resource available. Available days/time to work on project	Develop schedule output
Develop schedule project management plan updates	Schedule baseline. Approved by change request. Schedule management plan
Develop schedule project documents updates	Activity resource requirements (leveling impacts), activity attributes, calendar, risk register, etc
Project cost management plan	Includes the processes involved in estimating, budgeting, and controlling costs
Plan cost management	the process that establish is the policies, procedures, and documentation for planning, managing, exchanging, and controlling costs. A how-to.
Plan cost management tools and techniques	Analytical techniques - choosing strategic options such as self funding or financing, may also detail strategies for making, purchasing, renting, or leasing. - Financial techniques employed to make project decisions main include payback period, ROI , IRR, discounted flat cash flow, and NPV
Cost management plan	A component of the project management plan that describes how the project will be planned, structured, and controlled. It can establish, in part: -units of measure ($, time, tons) - level of precision: method for rounding - level of accuracy: acceptable range of deviation for estimates. - control thresholds: acceptable cost performance variances without having to take action -earned value management rules
Earned value management rules	- where control accounts where will be placed. Control account plan - measurement techniques such as percent complete - equations for EAC
Cost estimates	The process of developing an approximation of the monetary resources needed to complete the project activities
Fixed costs	Business expenses that are not dependent on the level of goods or services produced by the business they tend to be time-related, such as rent being paid per month. Cost will not change
Variable costs	Expenses that change in proportion to the activity of a business. When activity of decreases, less raw material is used, so spending off of raw material falls. Fuel in a bulldozer
Direct costs	A cost that can be directly related to producing specific goods or performing a specific service. For example the wages of an employee engaged in producing a product can be attributed directly to the cost of manufacturing that product.
Indirect costs	Costs that are not directly attributed to a particular product, such as the heat and light. Overhead. Benefit several projects. Variable
ROM	Rough order of magnitude. -25% to +75% are typically used during initiation, when details are not yet developed
Definitive estimating	-5% to +10% Available after execution has begun
Estimate costs inputs	Human resource management plan - a plan that provides guidance on how project Human Resources be defined, staffed, managed, and eventually released. It is part of the project management plan -cost implications, training, safety, rewards
Estimate costs tools and techniques	-reserve analysis -cost of quality -project management software -vendor bid analysis
Reserve analysis	Cost estimates often include contingency reserves based on identified risks to account for uncertainty. These are typically derived from risk analysis.
Cost of quality	- cost of conformance: money spent to prevent errors. Prevention and appraisal costs - cost of non conformance: money have to spend because of errors. Internal and external failure costs
Benefit bid analysis	What the project should cost based on competitive bids. Just numbers
Estimate costs outputs	-activity cost estimates - basis of estimates (BOE) -project documents updates: risk register
Activity cost estimates	Probable cost to complete the project activities summary or detailed. Include things not attached to specific tasks
BOE	Basis of estimates. Explanation of how cost estimates were derived, including formulas, assumptions, constraints, possible cost ranges, confidence levels. Allows you to know how risky their estimates are
Determine budget	The process of aggregating all activity or work package costs to establish a baseline for the project
Determine budget tools and techniques	-cost aggregation -historical relationships -funding limit reconciliation
Cost aggregation	Process of rolling up costs through each level of the WBS
Determine budget through historical relationships	Using parametric or analogous estimate models based on past experience
Funding limit reconciliation	Variance between funding limits and planned expenditures may necessitate rescheduling work. Making sure project baseline fits. Example: quarterly budgets for public companies
Determine budget
Determine bother l budget outputs	-cost baseline -project funding requirements -project documents updates: risk register, activity cost estimates, project schedule, etc
Cost baseline	Authorized, time saved, total project budget used to measure, monitor, and control cost performance of the project. Appears as an S curve on a graph, cumulative line. Does not include management reserves
Project funding requirements	Total and periodic funding requirements are derived from the cost baseline. Funding may occur in incremental amounts.
Project quality management	Processes that determine quality policies, objectives, and responsibilities to satisfy project quality requirements. Note: plan quality involves creating a quality management approach. Perform quality assurance ensures we are using the quality standards as planned. Control quality means evaluating the actual quality of the product
Plan quality management	The process of identifying quality requirements or standards for the project and documenting how the project will demonstrate compliance. Do not define quality requirements here, that was in collect requirements
Quality management methodologies	-six Sigma -lean six sigma -quality function deployment
Six sigma	Quality management methodology. Seeks to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. Each project follows a defined sequence of steps and has quantify deficiency targets cost reduction and or profit increase. 3.4 defects per million.
Lean six sigma	Quality management methodology. A managerial concept that blends lean with Six Sigma to eliminate the seven kinds of waste to achieve a defect rate of 3.4 defects or less per million opportunities
Quality function deployment	Seeks out customer needs, uncovers positive quality that impresses to customer and translates these into design characteristics and deliverable actions. Voice of the customer.
Quality vs grade	- quality is the degree to which a set of inherent characteristics will fulfill requirements. Corporate requirements. McDonald's quarter pounder is high quality - quality describes how well a product or service is made. Low quality is always bad. - grade is a category assigned to products or services having the same functional use but different technical characteristics. Toyota vs Lexus. Low grade is fine as long as quality is high
Prevention over inspection	A modern quality philosophy that says quality as planned in and designed, not inspected in. Thus you should spend a lot of time and resources planning and managing Quality in on the front end. Quality has to be planned, designed, and built into product. Inspections will not improve quality
PDCA cycle	Plan, do, check, act cycle. The basis for quality improvement as defined by Shewhart and modified by Deming. Continuous improvement process
Plan quality management tools and techniques	- cost benefit analysis - cost of quality (COQ) - seven basic quality tools
Cost benefit analysis	High quality results in less rework, higher productivity, lower cost and increased stakeholder satisfaction
Cost of quality (COQ)	Total cost of ownership, divided into two main categories, each with to subcategories
Seven basic quality tools	- cause and effect diagrams - flowcharts - check sheets -pareto diagrams - histograms -control charts - scatter diagrams
Cause and effect diagrams	Fishbone, ishikawa diagram. Take a problem, then go through potential problems. Cause and effect diagram
Quality process flow chart	Defect management process. Graphical depiction of process.
Quality check sheets	Only organized data about problems. Collects and organize dated regarding potential quality problems
Pareto chart/diagram	- histogram ordered by frequency of occurrence - only organize data about problems - 80/20 rule. Also called Pareto's law. 80% of problems come from 20% of causes
Quality histograms	It didn't showing how often each error event occurred. Only used to organize data about problems.
Quality scatter diagram	Shows the relationship or correlation between two variables. Can uncover problem.
Control charts	- control charts are used to see if quality exceeds upper and lower limits. The mean or average is the middle horizontal line.
Out of control on a control chart	When the data point Falls outside the control limits. Above the upper limit or below the lower limit. Calculated at plus or minus 3 Sigma based on the whole population
Rule of seven	On a control chart, if seven consecutive data points are plotted on the same side of the mean. Either above or below the mean, even if they are within the control limits, the project manager should investigate, because the project is out of control
Project quality management tools and techniques	- benchmarking - design of experiments (DOE) -statistical sampling -"Additional quality planning tools "
Benchmarking	Comparing actual and planned practices to those of comparable projects to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.
Design of experiences (DOE)	Statistical technique that identifies the variables that will have the greatest effect on overall project outcomes. Helps determine the number and type of tests, and their impact on quality. Used to determine the number and types of tests you'll need
Plan quality management statistical sampling	Taking a small sample as a representative of the group
Plan quality management additional quality planning tools	- brainstorming - force field analysis: diagrams of forces for and against change - nominal group technique: brainstorm then rank ideas - quality management and control tools colon used to a sequence and Link the quality management activities that have been identified.
Quality management and control tools	Sequence and link quality activities together. They do not uncover any data. used to sequence and link the quality management activities that have been identified, they include: -affinity diagrams - process decision program charts - tree diagrams - prioritization matrices. A method to rank issues by importance. - activity network diagrams - matrix diagrams: pivot table showing relationships between factors, causes, and objectives
plan quality management outputs	- quality management plan - process improvement plan
Quality management plan	Explains how the project team will implement the quality policy. A how to
Process improvement plan	A subsidiary of the project management plan. It includes: - process boundaries - process configuration - process metrics - targets for improved performance
Process boundaries	Describes the purpose of processes, what it's for, they're starting end, their input / output, required data, owner, stakeholders
Process configuration	Graphical depiction of the process. Flow chart.
Process metrics	Allows analysis of process efficiency
Target for improved performance	Guides the process improvement activities
Quality metrics	Operational definitions. Describes a project attribute and how the quality control process will measure it. I.e defect frequency, failure rate, reliability. Can also measure project management success, such as schedule and cost performance.
Quality checklists	A list that ensures every step has been performed. List of steps
Plan quality management project documents updates	Stakeholder register, responsibility assignment matrix, WBS, and WBS dictionary
Human resource management	Includes the processes that organize, manage, and lead the project team
Plan human resource management	The process of identifying and documenting project roles, and responsibilities, required skills, reporting relationships, and creating a staffing management plan.
Plan human resource management tools and techniques	- organizational charts and position descriptions - networking - organizational theory
Organizational charts and position descriptions	- hierarchy type charts: show positions in a graphic, top-down format - matrix based charts: responsibility assignment matrix (RAM) is a tabular chart that shows relationships between work packages or activities and project team members. Example RACI chart
Organizational theory	Information about how people, teams, and organizational units behave
Responsibility assignment matrix (RAM)	RACI chart is the most common format of RAM. Only one person should be accountable for any given item.
Plan human resource management outputs	- human resource management plan
Staffing management plan	Part of the human resource management plans. The purpose is to delineate how the traditional HR duties we performed on the project. - staff acquisition, resource calendars, staff release plans, training needs, recognition and rewards, compliance, safety.
Project communications management	Includes the process is required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information
Plan communications management	The process of determining the project stakeholder information needs and defining a communication approach
Communication types	-formal written: official letters, pmps, project charter, etc - informal written: email - formal verbal: presentations, speeches - informal verbal: meetings and conversations
Communications tools and techniques	- communication requirements analysis - communication technologies - communication models
Communications requirements analysis	- used to determine the information needs of a stakeholder - communication is body language mostly, then vocal inflection, then words
Potential communication channels	(N(n-1))/2
Communication technology	Email, instant messaging, SharePoint, etc
Interactive communication	Type of communication method. Two or more parties. Example: meetings, phone calls, video conferencing
Push communication	Type of communication method. One way communication sent to specific recipient. Example: emails, voice mail, press release
Pull communication	Type of communication method. type of communication method. Self service repository. Example: SharePoint, internet sites, physical files, accessing voicemail
Project risk management	The prices of conducting risk management planning and identifying, analyzing, responding to, and controlling project risks
Plan risk management	Defines how to conduct risk management activities for the project. Sets forth a General approach for risk management.
Risk	And uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. Not ambiguous. Weather is not a risk, Lightning is a risk.	Negative risks are called threats, positive risks opportunity
Identify risks	The process of determining which specific risks may affect the project. Looking for actual risk events
Identify risks tools and techniques	Diagramming techniques - cause and effect diagrams (fishbone, ishikawa) - system or process flow charts (enterprise architecture diagrams) - influence diagrams (shows relationship between variables and outcomes) SWOT analysis - analyzing the strengths and weaknesses of the organization, and the ways in which they may lead to opportunities and threats.
SWOT analysis	Identify risks tool and technique. Analyzing the strengths and weaknesses of the organization, and the ways in which they may lead to opportunities and threats.
Black swan	Extremely low probability event with extremely high consequences. Positive or negative. Powerball, 9-11, Chernobyl
Perform qualitative risk analysis	The process of prioritizing risks for further analysis or action by addressing their combined probability of occurrence and impact.
Perform qualitative risk analysis tools and techniques	- risk probability and impact assessment -probability and impact matrix -risk data quality assessment -risk categorization -risk urgency assessment
Risk probability and impact assessment	Investigates likelihood of risk occurrence and impact
Probability and impact matrix	Assigns a risk rating to each risk (numeric or high/medium/low). Looking at the chance the risk would occur.. Low might be on watch list, medium and high will have response plan.
Perform quantitative risk analysis	The process of numerically analyzing the effect of identified risks on the overall project objectives.
Perform quantitative risk analysis tools and techniques	-data gathering and representation techniques - quantitative risk analysis and modeling techniques
Data gathering and representation techniques	Part of Quantitative risk analysis. Interviewing and probability distributions
Quantitative risk analysis and modeling techniques	- sensitivity analysis: analyzes which variable have the greatest impact on the project. Results are graphically shown as a tornado diagram. -expected monetary value analysis. EVM= probability*impact -decision tree- using EVM to make a decision. -modeling and simulation ( Monte Carlo analysis)
Tornado diagram	A way to graphically display sensitivity analysis days to show which variables have the greatest impact on a given constraint (eg. Cost)
Plan risk response	The process of developing options and actions to enhance opportunities and reduce threats. Where we come up with specific response plan
Strategies for threats	Plan risk response tool and technique. avoid- eliminate threat transfer- shift rush to third party mitigate- reduce probability of it occurring or impact of it does accept- live with the risk (active acceptance involved contingency)
Strategies for opportunities	exploit- change something to ensure it occurs share- teaming * enhance- increase probability and positive impacts *accept- not pursuing it
Contingency plan	A planned risk response that's implemented in response to a particular event occurring
Fallback plan	Plan b. And alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes
Residual risk	A risk that remains after risk responses have been implemented
Secondary risk	A risk that arises as a direct result of implementing a risk response (spin off risk)
Contingency reserves	Known unknowns. These are for risks that can be foreseen. Contingency reserves cab be derived for both time and cost. They become part of the schedule and cost baseline and are owned by the PM.
Management reserves	These are for unforeseeable risks to the entire project and cab be derived for both time and cost. They are not included in the schedule or cost baseline and are owned by management. PM must get approval prior to using these.
Project procurement management	Process necessary to purchase and acquire products, services, it results from outside the project team
Plan procurement management	The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers. No contracts.
Single source	Choosing a seller/vendor without competition, perhaps because of a prior business relationship
Sole source	Choosing a seller because it is the only source of the required product or service.
Tender	Often used interchangeably with bid
Privity	Signifies a contractual relationship between two parties
Force majeure	A contact clause allowing for nonperformance when unforeseeable and uncontrollable events occur (natural disasters, riots etc)
Fait accompli	Terms and conditions are non negotiable
Contact types	-Fixed price contacts ( need very clear SOW) - cost reimbursable contacts (used when cab only describe end product) -time and materials
FFP	Firm fixed price
FPIF	Fixed price incentive fee
FP-EPA	Fixed price economic price adjustment. When performed over many years.
CPFF	Cost plus percentage of cost
CPFF	Cost plus fixed fee. Paid at end
CPIF	Cost plus incentive fee.
CPAF	Cost plus award fee. Buyer makes award decision by themselves. Seller can't file claim if doesn't get award.
Relative risks amongst contact types	Riskiest to buyer: CPPC, CPFF, CPAF, CPIF, TM, FPEPA, FPIF, FFP
Point of total assumption	The point where the seller has to pay for all cost overruns. FPIF contacts. - costs are shared in a predetermined ratio between the buyer and seller. - when the point of total assumption is reached, the buyer will stop contributing to the costs. PTA= ((ceiling price-target price)/buyers share ratio)+target cost
Ceiling price	Cost of total assumption term. FPIF. Maximum price the buyer agrees to pay.
Target cost	Point of total assumption term. FPIF. Initially negotiated figure estimated contract costs. FP
Target profit or fee	Point of total assumption term. FPIF. The initially negotiated profit. IF.
Target price	Point of total assumption term. FPIF. Target cost plus target profit. FPIF
Share ratio	Point of total assumption term. FPIF. The ratio used to determine how under-runs or overruns increase our decrease profit.
Make or buy analysis	Deciding whether work should be performed in house by the team or if it should be procured. The analysis should consider all related costs, both direct and indirect.
Market research	Examining industry and specific vendor capabilities. Teams may leverage information from conferences, review, and other sources to identify market capabilities. Internet, talk to vendors, customers, conferences
Procurement documents	- request for information -invitation for bid - request for proposal
Request for information	Preliminary request to evaluate then for bid. A formal request for preliminary information for the purpose of evaluating potential bids for services
Invitation for bid	An invitation to contractors to submit a proposal on a specific project. Generally the same thing as request for quote. The IFB or RFQ is generally focused on pricing alone, and not ideas or concepts
Request for proposal	A RFP informs vendors of customer needs and expectations. Organized typically into three areas: technical, administrative, and financial requirements. Typically used for more complex technical solutions
Elements of a contract	Offer, acceptance, capacity, consideration, and legal purpose

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