Pmp Flash V1-8Jul13 - Definitions

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Brain Stroming

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Process for generating creative ideas and solutions through intensive and freewheeling group discussion. Every participant is encouraged to think aloud and suggest as many ideas as possible, no matter seemingly how outlandish or bizarre. Analysis, discussion, or criticism of the aired ideas is allowed only when the brainstorming session is over and evaluation session begins.

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Nominal Group Technique

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More-controlled variant of brainstorming used in problem solving sessions to encourage creative thinking, without group interaction at idea-generation stage. Each member of the group writes down his or her ideas which are then discussed and prioritized one by one by the group. Also called nominal group process.

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Lateral Thinking

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Idea generation and problem solving technique in which new concepts are created by looking at things in novel ways. Whereas the logical ('vertical') thinking carries a chosen idea forward, the sideways ('lateral') thinking provokes fresh ideas or changes the frame of reference. And, while vertical thinking tries to overcome problems by meeting them head-on, lateral thinking tries to bypass them through a radically different approach. The term was coined by the Maltese-born UK psychologist Dr. Edward de Bono in his 1970 book 'Lateral Thinking.'

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heuristics

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Trial-and-error procedure for solving problems (or reaching an unclear goal) through incremental exploration, and by employing a known criteria to unknown factors. For example, trying to climb a fog shrouded hill by making every step an upward-step. In journalism, a well known heuristic is asking Who? What? When? Where? Why? in investigating a news story. A heuristic employs independent discovery, and relies heavily on common sense, creativity, and learning from experience. Unlike an algorithm, however, it offers no guaranty of solving any problem. From Greek 'heuriskein,' to discover.

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Delphi

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Collaborative estimating or forecasting technique that combines independent analysis with maximum use of feedback, for building consensus among experts who interact anonymously. The topic under discussion is circulated (in a series of rounds) among participating experts who comment on it and modify the opinion(s) reached up to that point ... and so on until some degree of mutual agreement is reached. Also called delphi forecasting.

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SWOT Analysis

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Situation analysis in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined to chart a strategy. SWOT stands for strengths, weaknesses, opportunities, and threats

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PEST analysis

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A type of situation analysis in which political-legal (government stability, spending, taxation), economic (inflation, interest rates, unemployment), socio-cultural (demographics, education, income distribution), and technological (knowledge generation, conversion of discoveries into products, rates of obsolescence) factors are examined to chart an organization's long-term plans.

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Probability Distribution

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Listing of all possible events or outcomes associated with a course of action, and their probabilities

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Probability

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Quantifiable likelihood (chance) of the occurrence of an event expressed as odds, or a fraction of 1. Probability is estimated usually through repeated random sampling, and is represented numerically as between 0 (impossibility) and 1 (certainty).

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Modeling and Simulation (Eg Monte Carlo Analysis)

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Computation intensive forecasting technique applied where statistical analysis is extremely cumbersome due to the complexity of a problem (such as queuing or waiting line probabilities, or inventories involving millions of items). Used only where the problem has a chance (random) component, and is subject to unpredictable influences, it simulates (models) a situation on the basis of current and past (historical) data. In the simulation process, it computes an equation (mathematical model) thousands or millions of times, each time injecting random numbers to come up with a range of possibilities or outcomes of possible actions. Larger the number of computations, the greater the probability (according to the law of large numbers) of approximating the future events-provided the maximum-amount of known-data is incorporated into the model. Named after the Mediterranean resort of Monte Carlo in Monaco (famous for its gambling casinos) where sophisticated betters employ scientific methods to enhance their chances to win.

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EMV Analysis

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Total of the weighted outcomes (payoffs) associated with a decision, the weights reflecting the probabilities of the alternative events that produce the possible payoff. It is expressed mathematically as the product of an event's probability of occurrence and the gain or loss that will result.

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MEDS (Quantitative risk analysis and modeling)

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"Modeling and Simulation (Eg Monte Carlo Analysis)
EMV Analysis
Decision tree analysis
Sensitivity Analysis (Eg. Tornardo Diagram)
"

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Tornardo Diagram

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Graph that plots the results of various assumption on the final outcome in a sensitivity analysis exercise. Also called sensitivity chart.

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Sensitivity Chart

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Graph that plots the results of various assumption on the final outcome in a sensitivity analysis exercise. Also called tornado diagram.

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ATM -Strategies for Negative Risks / Threats

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"Avoid
Transfer
Mitigate"

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SEE -Strategies for Positive Risks / Threats

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"Share
Enhance
Exploit"

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When the seller selection is based on PRICE, its often called a

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tender / Bid / Quotation

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When the seller selection is based on technical skills / approach called a

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proposal.

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Attribute sampling is

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whether the result conforms or not.

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Variables sampling

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the result is rated on a continuous scale that measures the degree of conformity.

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Common / Random Cause VS Special Cause

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Normal Process Variation VS Unusal Event

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Control Limits

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Process falls within control

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Tolorance Control Limits

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Result falls within specified limits

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CCFRHPS - 7 basic tools of Quality

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"Cause and Effect Diagrams.
Control Charts.
Flow charting
Run Chart
Histogram
Pareto Chart
Scatter Diagram"

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CEO - Constraints for human resource planning:

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"Collective bargaining agreements
Economic conditions
Organizational Structure"

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BPS - SOW describes

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"Business Needed
Product Scope Description
Strategic Plan"

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$
Conflict

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Conflict should be addressed early and usually in private, using a direct, collaborative approach.

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Economic model o project selection

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"Present Value PV
NPV
IRR
Payback Period
Cost Benefit Analysis"

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Present Value

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"Time value of money = Cash today is worth more tomottow =how does the payment worth right now = a way to take time out of equation & evaluate how the prokect worth right now = Value today of a future cash flow FV, what is PV for 300000 after 3 years if we expect 10% rate of intrest earned.
=FV/(1+r)n = 300000/(1+0.1)3 = 225394"

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NPV

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same as PV but you factor in cost = PV - cost

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IRR

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Used to express a project's return as intrest rate = if project were an intrest rate

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Payback Period

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Time taken to recover the investment

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EVA

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"Economic Value Add = Consider Net profit and opportunity cost = show how much wealth created or lost
= After Tax Profit - (Capital Expenditure * Cost of Capital )
A comparision theory to determine stake holder value
Result mite look like: Company would have earned $xyz extra in invested in some other project"

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BCR

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Cost / Gross Profit

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Opportunity Cost

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Value(NPV or PV) of a project which we did not select

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ROI

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"% of monay you get reurn in some period by investing X amt.
100*(profit/cost)"

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ROIC

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100* Nett income after tax / total Capital invested

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Sunk Cost

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The monies already spent on a project = not considered if continue a project =

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Law of diminishing Returns

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After certain pt. more input or effort or resourse wont produce a propertional increase in productivity

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Working capital

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Current Asset - Current Liabilities

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Best Practice

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A specific sequence of work, described in terms of Soft logic

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Interrupting when appropriate is an element of Active Listening

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NO,

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% Non Verbal Communication

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55%, phyical and mannerism

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paralingual Communication factor

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Pitch and Tone

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Quality VS Grade

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"Quality Fails => Problem
Grade = Category assigned to Product having Same function
Grade Fails => Product is acceptable but with limited features"

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Precesion VS Accuracy

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"Precesion => values of repeated measurement are clustered and have little scatter
Accuracy => Measurements are very close to true value"

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FMEA

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Bottom up' approach where potential failure modes in every sub-item is analyzed for its effect on other sub-items, and their consequences for the whole system.

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Voice Of Customer

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Collective insight into customer needs, wants, perceptions, and preferences gained through direct and indirect questioning. These discoveries are translated into meaningful objectives that help in closing the gap between customer expectations and the firm's offerings.

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Cost of Quality

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Sum of costs incurred in maintaining acceptable quality levels plus the cost of failure to maintain that level (cost of poor quality).

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Continious Improvement defined by Shewhart and modified by Deming

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PDAC - Plan do Check Act

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Lession Learned Documented at

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During the project lifecycle and at the end

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RACI matrix

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table [Responsible Accountable Consult Inform ]

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RAM

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Responsibility Assignment Matrix

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a legally required order of formal statements establishing a contract is:

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Offer, acceptance

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In which Meeting we discuss.. Has the employee been provided with sufficient instructions and work tools?

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performance-evaluation interview with a project team member

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Organizational, environmental and external assumptions should be addressed by the ___

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project charter