Pmp Prep 1

Front 1

The project manager and project team will become involved in the Scope Planning Process

Back 1

Creating a project scope management plan that describes and documents how the project scope will be defined, verified, controlled, and how the WBS will be developed. The scope management plan is a subsidiary plan to the project management plan.

Front 2

Product Scope –

Back 2

the features, functions, and physical characteristics of the product service, or result of the project.

Front 3

Project Scope

Back 3

The work that must be completed to produce the product , service, or result

Front 4

Collect Requirements

Back 4

Defining and documenting the needs of the stakeholders. Remember stakeholders can be affected negatively or positively by the results of the project.

Front 5

Define Scope

Back 5

Developing a detailed description of the project scope and the product or products to be delivered.. Proper scope definition will enable the project team to develop effective plans to achieve the desired results.

Front 6

Project Objectives should be “SMART”

Back 6

Specific, Measurable, Attainable, Realistic, and Time-based

Front 7

Create WBS

Back 7

The project team jointly develops the work breakdown structure using the process of decomposition. . The WBS is a hierarchal grouping of project components, tasks and activities. The WBS is defined to a level of detail that will enable the project team to plan and manage the project effectively. The lowest level deliverable of the WBS is the work package. The work package includes the activities that must be completed to produce higher level deliverables..

Front 8

Other Breakdown Structures

Back 8

OBS (Organizational Breakdown Structure), BOM (Bill of Materials), and RBS (Risk Breakdown Structure)

Front 9

Verify Scope

Back 9

The process of determining the correctness of the work completed through inspections and reviews of project work results. This means making sure that what was expected to be produced was actually produced. Scope verification leads to formal ACCEPTANCE. This is an important item to remember—connect scope verification with formal acceptance of the project deliverables

Front 10

Control Scope

Back 10

Monitoring the project to ensure changes are managed through an approval process. Use of change requests and a configuration control process. Approved changes require updates to the plan and documentation of lessons learned.

Front 11

Define Activities

Back 11

Working with the project team to identify the specific schedule activities that must be performed. This process is an extension of the development of the WBS. Work packages include the project activities that must be completed to produce the project deliverables. Inputs include: Enterprise environmental factors, organizational process assets, scope baseline,. Other inputs may include: historical data, WBS, constraints, assumptions, expert judgment.

Front 12

Activity Definition Tools and Techniques

Back 12

Decomposition: breaks the WBS down further into work packages which include activity lists. Rolling wave planning, templates, expert judgment

Front 13

Sequence Activities

Back 13

Remember the three dependency types: Mandatory (hard logic), Discretionary (soft logic), and External dependency (factors outside the project that may affect the project). This process produces a network diagram that will display predecessor/successor relationships or logical relationships.

Front 14

Estimate Activity Resources

Back 14

Determining the number and types of resources needed for the project.

Front 15

Estimate Activity Duration

Back 15

Remember to determine the availability of the resources needed for the project, the number of resources needed, and assess resource capabilities. Consider historical information, analogous estimates, reserve time, and contingencies.

Front 16

Develop Schedule

Back 16

To properly develop a schedule that can be managed effectively, you must consider availability of resources, capability and skills of the resources, number of resources available, the resource calendar (including international calendar issues), vacation time, sick time, external issues (weather), and lead or lag requirements

Front 17

Schedule Development Tools and Techniques

Back 17

Network Analysis, Schedule Compression which includes: Fast Tracking, which means overlapping tasks. This technique generally adds risk to the project schedule so it is important to assess the risks before fast tracking and Crashing of the critical path, the reducing of activity durations by adding cost generally through the addition of resources.

Front 18

Control Schedule

Back 18

This includes determining the status of the project schedule, influencing the factors that create schedule changes, determining if a schedule change has occurred, and managing actual changes. This involves the review of project reports, performance, change requests, and the use of a schedule change control system. Control includes the analysis of variances, taking corrective action, and documenting lessons learned.

Front 19

Control Schedule Tools and Techniques

Back 19

Performance reviews, variance analysis, resource leveling, what-if scenarios, adjusting leads and lags, schedule compression.

Front 20

PDM—

Back 20

Precedence Diagram Method. There are 4 logical relationships: FS, FF, SS, SF

Front 21

AOA—

Back 21

Activity on the arrow: may use dummy activity. Uses only FS relationship. The dummy activity may be a factor in determining the critical path

Front 22

CPM—

Back 22

Critical Path Method. Determines the early start and early finish and late start and late finish of each project activity

Front 23

Slack—

Back 23

Also known as float. A measure of flexibility in a network path. There is generally no float or slack on the critical path.

Front 24

Free Float –

Back 24

the amount of time a task may slip without affecting succeeding activities

Front 25

Total Float –

Back 25

the amount of time an activity may slip without affecting the project end date

Front 26

Float ownership –

Back 26

the path owns the float, not the individual activity

Front 27

Forward pass—

Back 27

Determines early start and finish dates

Front 28

Backward pass—

Back 28

Determines late start and finish dates

Front 29

PERT Weighted Average formula—

Back 29

(Optimistic + 4 Most Likely + Pessimistic)/6

Front 30

Standard deviation = (b – a)/6

Back 30

(Pessimistic – Optimistic divided by 6)

Front 31

Path convergence –

Back 31

multiple activities that precede an activity. In the forward pass process the early start of the succeeding is activity is determined by the activity with the greatest value early finish.

Front 32

Typical project costs include:

Back 32

Human resources (salaries), Materials and Equipment, Capital Costs, rent, leases, travel expenses, overhead expenses, recurring costs (electricity, water), training, and insurance.

Front 33

Estimate Costs

Back 33

Developing an approximation of the project costs. Use of Analogous, Parametric (Top-down estimates), and Bottom-up Estimating (also known as engineering or grass roots estimates). Make sure you know the differences and consider the advantages and disadvantages of each type.) Example: Low accuracy of top-down estimate. The cost-estimating process produces cost estimates and a cost management plan.

Front 34

Inputs to cost estimating

Back 34

Scope baseline, project schedule, human resource plan, risk register, enterprise environmental factors, organizational process assets. Consider why each of these inputs are necessary to develop reliable estimates. Example: the risk register provides a list of potential risk events that may impact project cost and may require cost contingency reserves to be added to the budget.

Front 35

Determine Budget

Back 35

Aggregating the estimated costs of all individual project activities to establish the project cost baseline, Creating the time-phased budget used to monitor project cost performance.

Front 36

Inputs to Determine Budget

Back 36

Basis of the estimates (details about how estimates were determined, scope baseline, project schedule, resource calendars, contracts

Front 37

Control Costs

Back 37

Monitoring for changes or variances in project costs and taking corrective action. This also includes the management of change requests, using performance data, and producing measurements for analysis. Using earned value management to identify variances and trends.

Front 38

Inputs to Control Costs

Back 38

Project management plan, funding requirements,, work performance information, organizational process assets.

Front 39

Learning Curves

Back 39

As units are produced, the time and cost to produce the unit decreases. Productivity improves through repetition. The rate of improvement decreases during the process.

Front 40

Life-Cycle Costing

Back 40

The total cost of a product from research and development to salvage or retirement.

Front 41

Future Value Formula

Back 41

FV = PV (1 + r)n FV= Future value PV = Present Value r=rate or cost of capital n= years

Front 42

Present Value Formula

Back 42

PV = FV/(1 + r)n

Front 43

Net Present Value

Back 43

The sum of the present values minus the initial investment. If NPV is greater than or equal to zero the project is generally considered acceptable. The greater the NPV the more acceptable the project will be financially.

Front 44

IRR

Back 44

Internal Rate of Return. This is an iterative process to determine the interest rate or cost of capital at which the NPV becomes zero. The IRR generally must meet or exceed a predetermined “hurdle rate” established as part of project selection criteria. This process will provide an organization with a relaibel assessment of the return on investment of a project. IRR is compared with other projects during the selection process.

Front 45

Payback Period

Back 45

Period of time required to recover the initial investment. It generally does not consider the time value of money.

Front 46

Breakeven

Back 46

The point at which cash outflow and inflow are equal.

Front 47

Sunk Cost

Back 47

Money already spent and not considered in decisions to go forward.

Front 48

Indirect Costs

Back 48

Costs that are not directly associated with the project but that can impact the overall budget. Examples – Overhead, building maintenance, benefits, organization operational costs

Front 49

Direct Costs

Back 49

Costs directly and clearly associated with the project. Labor and material are considered direct project costs.

Front 50

BCWP Budgeted Cost of Work Performed

Back 50

This is the estimated or planned cost of the work that has been completed at the time of measurement

Front 51

BCWS Budgeted Cost of Work Scheduled

Back 51

This the planned cost of the work that should have been completed at the time of measurement.

Front 52

ACWP Actual Cost of Work Performed

Back 52

This is the amount that was paid for the work that was performed at the time of measurement.

Front 53

Earned Value: Special note

Back 53

The PMP exam may use the acronyms EV (Earned Value) instead of BCWP, PV (Planned Value) instead of BCWS, and AC (Actual Cost) instead ACWP.

Front 54

Cost variance (CV) (a negative cost variance = budget overrun)

Back 54

EV (BCWP) – AC (ACWP) =

Front 55

Schedule variance (SV) (a negative SV means the project or work package is behind schedule)

Back 55

EV – PV (BCWS) =

Front 56

Cost performance index (CPI) (a measure of efficiency in managing the project budget)

Back 56

EV/AC (ACWP) =

Front 57

Schedule performance index (SPI) (a measure of efficiency in managing the project schedule)

Back 57

EV/PV (BCWS) =

Front 58

ACC + ETC ( Estimate to Complete) – this formula is used when new estimates are developed for remaining work.

Back 58

EAC Estimate at Complete EAC =

Front 59

ACC + BAC -EVC where BAC is the Budget at Complete This formula is used when variances are seen as atypical and similar variances are not anticipated to occur again.

Back 59

EAC =

Front 60

ACC + ( BAC –EVC / CPIC Used when current variances are seen as typicaland will be seen in the future

Back 60

EAC =

Front 61

Plan Quality

Back 61

Determining what quality standards are relevant to the project.

Front 62

Inputs to Plan Quality

Back 62

Scope baseline, stakeholder register, cost performance baseline, schedule baseline, risk register, organizational process assets, enterprise environmental factors.

Front 63

Perform Quality Assurance

Back 63

The application of the processes and systematic quality activities that will ensure project success and the achievement of project requirements. The auditing of quality requirements and results to ensure appropriate levels of quality are being achieved are or meeting standards

Front 64

Perform Quality Control

Back 64

Monitoring and recording the project results to determine compliance with established and agreed upon requirements and assess performance. Quality control also includes recommendations for changes to resolve quality related issues.

Front 65

Quality Gurus

Back 65

W. Edwards Deming – Plan Do Check Act, 85% of quality issues require management involvement, Statistical analysis. Joseph Juran – Fitness for use, Legal issues associated with quality, Philip Crosby – Quality is free, cost of quality is associated with non conformance, zero defects is possible. Taguchi – design of experiments, quality should be engineered into a product,

Front 66

Key Components of Quality Management

Back 66

Customer satisfaction, prevention of over-inspection, management responsibility, continuous improvement

Front 67

The Customer Defines Quality

Back 67

The project team takes implied needs and turns them into stated needs to meet the customer’s expectations. The project manager has ultimate responsibility for quality on a project.

Front 68

Quality Policy

Back 68

Developed by the organization. It is an indication of the intentions of an organization as it relates to quality. The organizational quality policy is usually established by upper management.

Front 69

Prevention Over Inspection

Back 69

It is generally less costly to prevent errors than to inspect and identify errors that must be corrected.

Front 70

TQM

Back 70

Total Quality Management: An organizational approach to quality that starts at the top management level and includes all levels of employees. The focus is on continuous improvement through training and awareness about quality.

Front 71

Quality Planning

Back 71

Inputs include the scope statement, product description, the company quality policy. Identifies which quality standards are relevant to the project.

Front 72

Benefit Cost Analysis

Back 72

Determining the appropriate level of quality to meet an acceptable return on the investment while meeting customer needs.

Front 73

Benchmarking

Back 73

Comparing desired or best in class performance to existing performance. Identifying gaps and developing corrective actions..

Front 74

Flowcharting

Back 74

Diagramming a process to identify all steps, identify where gaps exist, and to identify redundant work. Flow charts are used to gain an understanding of the overall operation or flow of work.

Front 75

Design of Experiments

Back 75

Introduced by Taguchi, the general principle is that quality should be built into (designed into) a product, not inspected into it.

Front 76

Cost of Quality

Back 76

There are two major components of the Cost of Quality - Cost of conformance: prevention and appraisal and Cost of nonconformance—internal failure (rework) and external failure (customer dissatisfaction).

Front 77

Quality Assurance

Back 77

Systematic activities implemented to ensure that the project will satisfy quality standards.

Front 78

Quality Control

Back 78

Monitoring project results to determine if they comply with quality standards.

Front 79

Prevention

Back 79

Keeping errors out of the process and from the customer.

Front 80

Sampling

Back 80

Two types of sampling - Attribute and variable Attribute is a pass or fail approach, with no flexibility in accepting results. Variable allows for some tolerance and variance is measured on a scale..

Front 81

Inspection

Back 81

Walk through, testing, reviews.

Front 82

Control Charts

Back 82

Rule of 7 and rule of 21: 7 points above or below the mean indicate a run or a trend. 21 data points are required for a sample to be statistically valid. Control charts are used to identify special or assignable causes and to determine if a process is in control or out of control, The control chart includes the mean or center line and upper and lower control limits. UCL and LCL.

Front 83

Pareto Diagram

Back 83

A Histogram that displays problems or issues by frequency of occurrence and is associated with the 80/20 rule. 80% of problems are associated with 20% of the causes.

Front 84

Cost of Conformance

Back 84

Includes two components –Prevention (training, design reviews, and Appraisal (inspections).

Front 85

Cost of Nonconformance

Back 85

Includes two components - Internal Failure (defects, rework) and , External Failure – customer receives a defective product.

Front 86

Remember: DTRTRTFT

Back 86

Do the right thing right the first time.

Front 87

ISO 9000

Back 87

International certification indicating documented processes for quality. ISO 9001 is the most comprehensive certification in the series. ISO 9000 is updated approximately every four years.

Front 88

Grade vs. Quality

Back 88

Low-grade products can be considered to be of high quality but may not posses the technical characteristics of other similar products. Low grade is not necessarily a problem but poor quality is always a problem. Example—software with limited functions may serve a specific need and is produced with high-quality, but limited features. (It does what it was intended to do, but it is low grade, that is, it does not have all of the features and functions of a higher grade product..

Front 89

Quality

Back 89

The basic definition is “The conformance to specifications and fitness for use.”

Front 90

Essential Quality Characteristics

Back 90

Utility – ease of use, Financial—effective management of all associated costs, Legal – warranties,, safe for use, maintainability, reliability, availability..

Front 91

Customer Satisfaction

Back 91

Managing to meet customer expectations. Define requirements and expectations early in the project and then review on a regular basis. Get to the desired result as expressed by the customer.

Front 92

Prevention Over Inspection

Back 92

The cost of prevention is generally less than the activities of appraisal, inspection, and failure. Inspection adds more cost.

Front 93

Management Responsibility

Back 93

Participation of all members is required to achieve high quality. According to Deming, management is responsible to provide the resources and is responsible for 85% of quality issues.

Front 94

Shewhart Chart—Plan, Do, Check, Act

Back 94

The basic principles of continuous improvement. This process is performed in each project phase. (Deming cycle).. It is the basis for the 5 major processes – Initiating, Planning, Executing, Monitoring and Controlling, and closing

Front 95

Attribute Sampling

Back 95

Pass or fail. Either reject or accept the unit being reviewed.

Front 96

Variable Sampling

Back 96

Units are acceptable within a tolerance level and measured using scale to determine level of conformance..

Front 97

Quality Control

Back 97

Measuring performance to determine where variances exist. Includes: Inspection, Control Charts, Pareto Diagrams (80/20 rule).

Front 98

Statistical Sampling

Back 98

Single sampling, double sampling and multiple sampling. Producer’s or Alpha risk – risk to a seller that a good lot will be rejected, Consumer’s or Beta Risk – risk that a consumer will accept a bad lot. .

Front 99

Six Sigma

Back 99

3.4 defects per million opportunities. High cost during early part of implementation. Costs are recovered over time. The goal of Six Sigma—minimize defects through continuous analysis and action. The focus is toward removing defects. It includes the need for a positive attitude toward achieving the goals. Six Sigma is achieved through a process using tools such as Pareto charts, control charts, variance testing, Design of Experiments.

Front 100

Sigma

Back 100

Statistical expression indicating how much variation there is in a product.

Front 101

Defect

Back 101

Anything that will cause customer dissatisfaction.

Front 102

 Six Sigma tools and processes eliminate unnecessary tasks and reduce or remove rework.

Back 102

5 Sigma—230 defects per million opportunities
 4 Sigma—6,210 defects per million opportunities
 3 Sigma—66,800 defects per million opportunities
3 and 4 Sigma are associated with an average quality company

Front 103

DMAIC

Back 103

Define, Measure, Analyze, Improve, Control. DMAIC is associated with the processes found within Six Sigma

Front 104

Develop Human Resource Plan

Back 104

Identifying project roles, establishing reporting relationships, and creating the staffing plan.

Front 105

Inputs to Develop Human Resource Plan

Back 105

Activity resource requirements, enterprise environmental factors, organizational process assets

Front 106

Acquire the Project Team

Back 106

Obtaining the human resources needed to complete the project. This can be done through hiring, outsourcing, or obtaining internal resources. The organizational process assets will have an impact on the acquisition of the project team.

Front 107

Develop the Project Team

Back 107

Building the project team, improving performance, improving teamwork

Front 108

Manage the Project Team

Back 108

Tracking the performance of the team and providing feedback on results, resolving problems and issues, coordinating changes, managing the effectiveness of the team to improve overall project performance.

Front 109

Roles and Responsibilities

Back 109

Should be identified and assigned during the project kickoff meeting.

Front 110

RAM—Responsibility Assignment Matrix

Back 110

The RAM is aligned with the WBS. The RAM links project team members with WBS tasks. The RAM is used to clearly define responsibility for the completion of project tasks. It is not a tool for determining resource requirements.

Front 111

Interrelationships

Back 111

The key interfaces a project manager will encounter and work with during the project. Examples—engineering, design, operations. Project Interfaces include Organizational (business units), Technical (design group and production group), and Interpersonal Relationships (formal and informal personal relationships).

Front 112

Organizational Structure

Back 112

Three major types of organizational structure -Functional, Matrix, and Projectized. Each typo of structure has unique characteristics. The authority of the project manager is lowest in the function structure, moderate in the matrix, and nearly total in the projectized structure.

Front 113

Power and Authority

Back 113

There are five major types of power or influence:
Legitimate – based on formal position
Expert – based on knowledge and experience
Penalty – based on the ability and authority to penalize employees. Also known as coercive power
Reward – based on the ability and authority to offer items of perceived value to employees in exchange for work
Referent – influencing people through the power and authority of another

Front 114

Conflict Management

Back 114

There are five general types of conflict handling: Withdrawing, Smoothing, Compromise, Forcing, Collaboration - through Confrontation and Problem Solving).

Front 115

Major Sources of Conflict

Back 115

Schedules, different priorities, costs, estimates,, different opinions, lack of communication. Consider projects that you have worked on and identify other sources of conflict and the solutions to those conflicts. Escalation to the project sponsor or executive may be necessary to resolve some conflicts. Generally conflicts are resolved by understanding the needs and wants of the opposing person or group and identifying common areas of agreement.

Front 116

Motivation Theories

Back 116

Theory X – an authoritative approach, Theory Y – a participative management style, and Z – Introduced by Ouchi- a communal type of structure., Maslow’s Hierarchy of Needs, Herzberg -Hygienic factors and motivational factors

Front 117

Motivation

Back 117

Douglas McGregor: Theory X—a micro-manager distrusts employees, believes employees do not want to work, and will do only what is minimally required. Significant levels of supervision are required Theory Y—Participative style, trusting, supportive. The manager believes people sincerely want to work and make a contribution. Theory Z – Ouchi believed that a structure in which everyone supported the greater good of the organization and where long term employment and loyalty to the organization were emphasized were key to motivating employees.

Front 118

Maslow—Hierarchy of Needs

Back 118

Expressed graphically as a pyramid . The lowest or first level is physiological needs. As each motivating factor is achieved it is no longer a motivator as the person now seeks the next level. The 5 major levels are: Physiological needs, Safety and Security, Social Needs, Esteem, and Self-Actualization.

Front 119

Herzberg’s Theory

Back 119

The manager must address hygienic factors such as working conditions, relationships, level of supervision, and compensation before attempting motivation . If these factors are not managed and provided at a satisfactory level they may cause pain, discomfort, or conflict. They are not motivators but must be managed to remove any potential dissatisfaction among employees.. Once the hygiene factors are satisfied, motivating factors can be introduced. Examples of motivators are personal growth, advancement, increased responsibility, challenging work and recognition.

Front 120

Team Building

Back 120

The project manager must remember the importance of team building and the phases of team development: Forming, Storming, Norming, and Performing. Conflict begins during the forming of the team, it intensifies during the storming phase, begins to subside in the norming phase, and is minimized in the performing stage. The project manager is a team leader and should determine the best methods to enhance the performance of the team through team building activities, reward and recognition, training, appraisals, co-location, support, direction, feedback, and performance appraisals.

Front 121

Leadership Skills

Back 121

Project managers provide coaching, facilitation, authoritative leadership, supportive leadership, vision, direction, and motivation..

Front 122

Organizational Influences

Back 122

Remember the difference between a project based and a nonproject based organization. Project based – the organization managers all work as project work or manages projects for external customers. Non project based organizations do not have a formal project management methodology or do not normally engage in project type work.

Front 123

Project Stakeholders

Back 123

Anyone involved in or directly impacted either positively or negatively as a result of the project.

Front 124

Negotiating

Back 124

Project managers must develop effective negotiating skills. This includes understanding other viewpoints and needs, creating an environment for effective negotiation and developing negotiation skills and tactics.. Items that may require negotiation include: obtaining resources, schedule development, activity duration estimates, funding requirements, resolving conflicts.

Front 125

Identify Stakeholders

Back 125

It is important to identify everyone who will be involved in the project or affected by the project. Stakeholder identification also includes determining interests, levels of influence, and their definition of success and value.

Front 126

Inputs to Identify Stakeholders

Back 126

Project charter, procurement documents, organizational process assets, enterprise environmental factors

Front 127

Plan Communications

Back 127

Preparing for the information needs of the project stakeholders.

Front 128

Inputs to Plan Communications

Back 128

Stakeholder register, stakeholder management strategy, enterprise environmental factors, organizational process assets

Front 129

Distribute Information

Back 129

Providing relevant project information to the stakeholders in a timely manner.

Front 130

Inputs to Distribute Information

Back 130

project management plan, performance reports, organizational process assets.

Front 131

Manage Stakeholder Expectations

Back 131

Ensuring that the needs of the identified stakeholders are met. Communicating with stakeholders to review and verify expectations .Understanding stakeholder requirements, managing project communications, and resolving issues between stakeholders.

Front 132

Inputs to Manage Stakeholder Expectations

Back 132

Stakeholder register, Stakeholder management strategy, project management plan, issues log, change log, organizational process assets

Front 133

Report Performance

Back 133

Collecting, analyzing, and reporting project performance information to project stakeholders.

Front 134

Inputs

Back 134

Project management plan, work performance information, work performance measurements, budget forecasts, organizational process assets

Front 135

Communication includes:

Back 135

internal communication – within the performing organization, external communication – with suppliers, the media, the public, formal and informal communications, vertical – upward and downward communications, horizontal communications – across organization’s official and unofficial communications, verbal and non-verbal communications (body language)

Front 136

Constraints

Back 136

Identified limitations that may obstruct or impede communications.

Front 137

Assumptions

Back 137

Planning items provided to the team by the customer, sponsor or executive manager that are considered to be true, real, or certain.

Front 138

Sender–Receiver Model

Back 138

basic elements – sender or transmitter, message, encode message, personality screen, sender region of experience, receiver, receiver perception screen, noise, medium (method to convey the message) receiver region of experience, receiver decode of message, feedback message, receiver personality screen, sender perception screen

Front 139

Communications Channels (X)

Back 139

= N (N – 1)/2 where N = number of people on the project team.

Front 140

Plan Risk Management

Back 140

Deciding on the approach to conducting risk management and managing project risk.

Front 141

Inputs to Plan Risk Management

Back 141

Project scope statement, cost management plan, schedule management plan, communications management plan, enterprise environmental factors, organizational process assets.

Front 142

Identify Risk

Back 142

Determining which risks might affect the project and documenting their characteristics.

Front 143

Inputs to Identify Risk

Back 143

Risk management plan, activity cost estimates, activity duration estimates, scope baseline, stakeholder register, cost management plan, schedule management plan, quality management plan, , project documents, enterprise environmental factors, organizational process assets

Front 144

Perform Qualitative Risk Analysis

Back 144

Prioritizing risks for additional analysis or action by considering the probability and impact of the risk.

Front 145

Inputs to Perform Qualitative Analysis

Back 145

Risk register, risk management plan, project scope statement, organizational process assets.

Front 146

Perform Quantitative Risk Analysis

Back 146

A numerically based approach using mathematical models and simulations to determine the affect of risks.

Front 147

Inputs to Quantitative Analysis

Back 147

Risk register, risk management plan, cost management plan, schedule management plan, organizational process assets.

Front 148

Plan Risk Responses

Back 148

Determining the appropriate actions and identifying the options that may be used to reduce or eliminate project risks.

Front 149

Inputs to Plan Risk Responses

Back 149

Risk register, risk management plan

Front 150

Monitor and Control Risk

Back 150

Tracking risks, identifying new risks, executing the risk response strategies, maintaining awareness of risks and their impact through the project life cycle.

Front 151

Inputs to Monitor and Control Risk

Back 151

There are two primary components of risk—probability and impact. Urgency is also a factor when planning for risk and determining responses.

Front 152

Risk Tolerance

Back 152

There are risk seekers, risk averse organizations, and risk neutral organizations. Remember the Utility Factor – a measure of the tolerance for risk: Utility rises at a decreasing rate for the risk averter (the greater the risk the less the risk averter likes it). Utility increases for the risk seeker as risk intensity increases. Risk seekers thrive on risk opportunities. The utility factor rises at a uniform rate with increasing risk

Front 153

Expected Monetary Value

Back 153

The product of probability and impact. Usually associated with Decision Trees.

Front 154

Hurwitz and Wald Criterion (Maximax and Maximin)

Back 154

The Hurwitz criterion or maximax decision process is associated with organizations who have a high tolerance for risk and a “go-for-broke” attitude. The Wald or maximin criterion is associated with risk averse organizations who are concerned with loss.

Front 155

Decision Tree

Back 155

Associated with Quantitative Risk Analysis. The decision tree assists in determining the potential outcomes of specific decisions by considering probability, initial cost, net path value and expected monetary value of each path. Decision trees assist in identifying the implications of choosing each of the available alternatives.

Front 156

Brainstorming

Back 156

Gathering risk data from the project team by openly generating ideas and avoiding assessment of the ideas until the generation of new ideas has been exhausted.

Front 157

Delphi Technique

Back 157

A process used in decision making and analysis where subject matter experts are engaged to provide input in an anonymous setting to eliminate bias.

Front 158

Nominal Group Technique

Back 158

Similar to Delphi but done within group. The information gathered is anonymous through notes and written input but the participants are known to all.

Front 159

Risk Triggers

Back 159

Symptoms that may lead to a risk event. It is important to address risk triggers before a serious risk event occurs.

Front 160

Probability/Impact Matrix

Back 160

a matrix utilized to establish the value of a risk or establish a risk rating using the product of probability and impact. Scales may by ordinal - .1.2.3.4.5 or cardinal scales -low, moderate, high ratings.

Front 161

Risk Response Strategies

Back 161

Avoidance, Transference, Mitigation, Exploit, Enhance, Share, Acceptance – passive acceptance means no specific action will be taken, active acceptance means a specific contingency will be planned.

Front 162

Types of Risks

Back 162

Insurable Risk: chance for loss only. Business Risk: chance for profit or loss.

Front 163

Monte Carlo Process

Back 163

A computer simulation of a project in which variable data is used for project activities, The project is simulated through software by introducing different possible activity outcomes that will affect the total project, Generally this type of simulation (similar to the throwing of dice) is done many times to determine possible outcomes and the probability achieving of task completions by a certain date or meeting project budget requirements.

Front 164

Project procurement management includes four major processes:

Back 164

Plan procurements, Conduct procurements, Administer procurements, Close procurements

Front 165

Plan Procurements

Back 165

Determining what, when, and how to purchase or acquire products or services.

Front 166

Inputs to Conduct Procurements

Back 166

Scope baseline, requirements documentation, teaming agreements, risk register,, risk related contract decisions, activity resource requirements, project schedule activity cost estimates, cost performance baseline, enterprise environmental factors, organizational process assets.

Front 167

Conduct Procurements

Back 167

The processes required to identify and document procurement requirements and determine potential suppliers or sellers.

Front 168

Inputs to Conduct Procurements

Back 168

Project management plan, procurement documents, project documents, source selection criteria, qualified seller list, seller proposals, make or buy decisions, teaming agreements, organizational process assets.

Front 169

Request Seller Responses

Back 169

This process is now included under Conduct procurements in the PMBOK® Guide—Fourth edition. It includes preparing requests for information, obtaining information, quotes, bids, offers, proposals from potential suppliers and sellers

Front 170

Select Sellers

Back 170

This process is now included under Conduct Procurements in the PMBOK® Guide—Fourth edition. Select sellers includes determining which sellers or providers are qualified to perform the required services and developing the appropriate contracts

Front 171

Administer Procurements

Back 171

Managing the contract terms and conditions and the procurement relationships between buyer and seller. Managing changes and documenting the performance of the seller during execution.

Front 172

Inputs to Administer Procurements

Back 172

Procurement documents, project ,management plan,, contract, performance reports, approved change requests, work performance information,

Front 173

Close Procurements

Back 173

Completing all procurement work and settling the contract, resolving open issues and closing all contractual items.

Front 174

Inputs to Close Procurements

Back 174

Project management plan, procurement documentation

Front 175

Contract

Back 175

A Legal document that includes an offer, acceptance, and consideration ( something of value).

Front 176

Definitive Contract

Back 176

The final, agreed upon contract

Front 177

Completion Contract

Back 177

The contractor/ supplier/ seller is required to produce a specific end product or deliverable

Front 178

Term Contract

Back 178

A contract that is intended to deliver a specific level of effort, not an actual product.

Front 179

Statement of Work

Back 179

A narrative description of work to be completed under contract. This document provides details about the work to be done by the contractor.

Front 180

Make or Buy Decisions

Back 180

Make or buy decisions depend on cost, desired level of control, capability of the buyer’s organization, type of deliverable, capacity of the buyer’s organization. Consider benefits and disadvantages of the make and buy decisions and the risks that may be associated with the decision.

Front 181

Bidder Conference

Back 181

A meeting scheduled by the buyer to provide information to all potential bidders. The meeting provides a level playing field for potential contractors.

Front 182

Negotiation

Back 182

Negotiation is a key skill and necessary activity in the procurement process. Location for negations, the negotiation environment, needs of each party, hygiene issues (type of room set up, location, type of tables and positioning of the parties involved). Understanding the opposing viewpoint and using appropriate tactics.- Fair and reasonable offers, good faith,, protocol,

Front 183

Special Terms and Conditions

Back 183

Make sure to identify Penalty clauses, liquidated damages clauses, force majeure clauses (natural disasters, events that cannot be controlled by the contractor) and other contract terms and conditions.

Front 184

Force Majeure

Back 184

A common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or act of God (e.g., flooding, earthquake, volcano),

Front 185

Privity

Back 185

In contract law provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it.

Front 186

Penalty Clause

Back 186

A provision in a contract that stipulates an excessive pecuniary charge against a defaulting party.

Front 187

Liquidated Damages

Back 187

A contractually agreed upon amount to be paid in the event of a breach of the contract, in lieu of performance or quantification of actual damages sustained.

Front 188

Contract Types

Back 188

Firm Fixed Price (FFP) or Lump Sum, Cost Plus Incentive Fee (CPIF), Fixed Price Incentive Fee (FPIF), Time and Material, Purchase Order, Cost Plus Percentage of Cost (CPPC), Cost Plus Fixed Fee (CPFF). Remember the risks associated with each type of contract and who is exposed to the greatest risk. Incentive contracts will include a sharing ratio.

Front 189

Contract Close-out

Back 189

Development of Punch Lists, verification of contracted deliverables, formal acceptance, post project review, contract reviews.

Front 190

Termination for Convenience

Back 190

A provision in the contract that allows the project to be terminated for other than performance reasons. Example—the technology is no longer needed, there are no additional funds to support the project.

Front 191

Termination Due to Default

Back 191

A breach in the agreement, failure to provide what was agreed upon in the contract.

Front 192

Non Disclosure agreement

Back 192

A non-disclosure agreement (NDA), also known as a confidentiality agreement, confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement, is a legal contract between at least two parties that outlines confidential materials or knowledge the parties wish to share with one another for certain purposes, but wish to restrict access to. It is a contract through which the parties agree not to disclose information covered by the agreement

Front 193

Fait accompli

Back 193

An accomplished fact; a thing already done

Front 194

Administrative Changes

Back 194

Generally this type of change is for records only and does not impact the work of the project.

Front 195

Constructive Change

Back 195

An action or inaction by a party associated with the project that impacts the actual work and requires a change to the planned work.

Front 196

Project Reviews

Back 196

At project completion the project manager and team conduct reviews of the entire project and compare actual results with contractual agreements.

Front 197

Close-out

Back 197

Punch lists are prepared, verification of contracted deliverables, formal acceptance is obtained, post project reviews are conducted, contract reviews are conducted, final payments are made.

Front 198

Professional responsibility includes the following subjects:

Back 198

Ensuring Individual Integrity
Responsibilities of employers
Accommodating employee needs
Diversity in the workplace
Complying with federal employment laws
Dealing ethically with project stakeholders
Making ethical business decisions (Honesty and integrity)
Dealing ethically with employees, customers, and other businesses
Promoting Interaction Among Stakeholders
Listening skills
Communication styles (authoritative, facilitating, judicial)
Effective negotiation and conflict resolution (balancing stakeholder needs)
Recognizing conflict and managing conflicts effectively
Conflict management—Collaboration, Compromise, Forcing, Withdrawing, Smoothing
Enhancing Personal and Professional Competence
Creating a personal development plan
Mentor roles and skills
Contributing to the Project Management Knowledge Base
Documenting and sharing lessons learned

Front 199

Communications channels X =

Back 199

(N*N-1) /2

Front 200

Weighted average formula (beta distribution)

Back 200

(Optimistic + 4 times the most likely value + pessimistic) / 6

Front 201

Float –

Back 201

obtained during the forward and backward pass calculations in CPM. Float is the diffeence between the late finish and early finish of an activity (check the logical relationships before determining float)

Front 202

Standard Deviation

Back 202

(Pessimistic – Optimistic) / 6

Front 203

Net Present Value

Back 203

The sum of the present values minus the initial cost

Front 204

Present Value

Back 204

FV / (1+r) n

Front 205

Future Value

Back 205

PV (1 +r) n

Front 206

Cost variance (CV) (a negative cost variance = budget overrun)

Back 206

EV (BCWP) – AC (ACWP) =

Front 207

Schedule variance (SV) (a negative SV means the project or work package is behind schedule)

Back 207

EV – PV (BCWS) =

Front 208

Cost performance index (CPI) (a measure of efficiency in managing the project budget)

Back 208

EV/AC (ACWP) =

Front 209

Schedule performance index (SPI) (a measure of efficiency in managing the project schedule)

Back 209

EV/PV (BCWS) =

Front 210

EAC Estimate at Complete EAC

Back 210

= ACC + ETC (Estimate to Complete) – this formula is used when new estimates are developed for remaining work.

Front 211

EAC

Back 211

= ACC + BAC -EVC where BAC is the Budget at Complete This formula is used when variances are seen as atypical and similar variances are not anticipated to occur again.

Front 212

EAC

Back 212

= ACC + ( BAC –EVC / CPIC Used when current variances are seen as typical and will be seen in the future