PMP Exam
to-complete performance index (TCPI)
(BAC - EV) / (BAC - AC). results greater than one are more difficult to complete. OR (BAC - EV) / EAC - AC) results greater than one are more difficult to complete.
even distribution
50 percent chance a project will be completed early and a 50 percent chance it will be completed late. no date is more likely than another, so there is no "most likely" completion date
50-50 rule
50% of the earned value is credited when the earned value activity begins. the remainder is credited when all the work is done. prevents inaccurate reporting that occurs when all the value is reported as soon as the activity begins
Juran and Demming
85-95% of the quality problems that occur in organizations are from processes controlled by upper management
VAC (Value at completion)
BAC - EAC
Professional responsibility Task 4
Balance stakeholders' interests by recommending approaches that strive for fair resolution in order to satisfy competing needs and objectives.
two process to do when ending a project
Close the Project/Phase and Close Procurements
Professional responsibility Task 2
Contribute to the project management knowledge base by sharing lessons learned, best practices, research, etc with appropriate communities in order to improve the quality of project management services, build the capabilities of colleagues, and advance the profession.
the four EVM forecasting formulas for EAC
EAC = AC + bottom-up ETC (most common) or EAC = AC + BAC - EV or EAC = BAC / cumulative CPI or EAC = AC + [(BAC - EV) / (cumulative CPI * cumulative SPI)
SV (schedule variance)
EV - PV. where you are relative to where you planned to be for the period
Professional responsibility Task 3
Enhance individual competence by increasing and applying professional knowledge to improve services.
Professional responsibility Task 1
Ensure individual integrity and professionalism by adhering to legal requirements and content standards in order to protect the community and all stakeholders.
four activities dependencies/logical relationships
FS, FF, SS, SF
compound interest formula
FV = PV (1 + I)^n
present value of money
FV = PV + (PV x I)
Ethics Code (Example 4)
Fairness is our duty to make decisions and act impartially and objectively.
five ways to resolve conflict
Forcing/directing (forcing the other to agree because of authority one has); smoothing/accommodating (making the differences seem less important. it is temporary); compromise/reconcile (each gives something up, fastest way); problem solving/collaborating (extensive work on the disagreement. most effective); withdrawal/avoid (one side retires. it is temporary)
the three key components of a process
Inputs, Tools/Techniques, Outputs
the ten knowledge areas
Integration Mgmt, Scope Mgmt, Time Mgmt, Cost Mgmt, Project Quality Mgmt, Human Resources Mgmt, Communications Mgmt, Risk Mgmt, Procurement Mgmt
Professional responsibility Task 5
Interact with team and stakeholders in a professional and cooperative manner by respecting personal, ethnic, and cultural differences in order to ensure a collaborative project management environment.
Mathematical models for the constrained optimization method of project selection
Linear, integer, dynamic, and multi-objective programming
Approaches that can be used with the benefit measurement method of project selection
Murder board, peer review, scoring models, economic models
probability of two events that are not mutually exclusive
P (A or B) = P (A) + P (B) - P (A and B)
Shewhart and Demming Cycle
PDCA = Plan, Do, Check, Act
Theory Z (William Ouchi)
Places emphasis on the well-being of employees, both on and off the job, encourages steady employment, and increases employee loyalty and productivity
four methods for displaying stakeholder information
Power/Interest grid. these examine the power, interest, authority, and influence of stakeholders
the two EVM performance index formulas
SPI = EV / PV or CPI = EV / AC
the two EVM variance formulas
SV = EV - PV or CV = EV - AC
the two to-complete performance index formulas
TCPI based on the BAC = (BAC - EV) / (BAC - AC) or TCPI based on the EAC = (BAC - EV) / (EAC - AC)
Define Scope process
Tools and Techniques include: expert judgment, product analysis, alternatives generation, facilitated workshops
Manage Communications process
Tools and techniques include: communication technology, communication models, communication methods, information management system, and performance reporting
Theory X and Theory Y managers (McGregor)
Type X managers think all people are lazy (or motivated only by money and status) and need to be threatened into working. Type Y managers believe people do a good job for its own sake and they manage through participation and information sharing. Theory Z is about the company taking care of the whole individual to breed loyalty to the company.
Ethics Code (Example 3)
We inform ourselves about the norms and customs or others and avoid engaging in behaviors they might consider disrespectful.
Ethics Code (Example 1)
We protect proprietary or confidential information that has been entrusted to us.
Ethics Code (Example 2)
We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.
Ethics Code (Example 5)
When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed.
schedule network analysis
a Develop Schedule process that generates the project schedule by using the schedule model and other techniques to help produce the schedule
composite organization
a blend of functional, matrix, and projectized. functional manager is generally responsible for employee skill improvement and seeing that people are assigned where they can be used most effectively. used because of pressure to share resources
control estimate
a bottom-up estimate that is accurate from -10% to +15%. it is based on the statistical central limit theorem. the more details we have, the more accurate the sum of those details will be because some will be overestimated and some under.
Nominal group technique
a brainstorming technique in which everyone writes down their ideas and the moderator creates a master list. then all the ideas are ranked by the group
force majeure
a catastrophic risk
configuration management system
a collection of formally documented procedures for maintaining the functional and physical characteristics of artifacts associate with a project. change control system is a subset of this
war room
a common meeting area for project members set aside to help achieve co-location
internal rate of return on investment
a comparison of the net present value of a project at the end of its useful life to the net present value of the risk free investment. risk free investments (like US Treasury bonds) are generally desirable only when interest rates are very high
activity
a component of work required to move from one event to the next in a project
cost plus incentive fee contract (CPIF)
a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) and the seller earns its profit if it meets defined performance criteria. least predictable of all types of contracts because of both variable cost of work and variable incentive
cost plus fixed fee contract (CPFF)
a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) plus a fixed amount of profit (fee). the fee is the profit the company makes. little incentive for the seller to control costs
cost plus award fee contract (CPAF)
a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) plus a fixed amount of profit (fee). the fee is the profit the company makes. performance awards defined by any number of criteria provide an incentive for the seller to control costs
Work Breakdown Structure (WBS)
a deliverable-oriented grouping of project components that organizes and defines the total scope of a project. decomposed into work packages, which are the lowest level of detail the project manager handles, even though those can be broken own into activities and tasks. includes work done by contractors and those not on the project team.
statement of work
a description of what the project is about and what will be delivered
internal rate of return (IRR)
a discount rate that makes the NPV equal zero. projects with a high IRR are likely to be chosen
Environmental and Organizational Factors
a document that addresses factors surrounding the project and the marketplace. identifies strengths and weaknesses, statement of company's management information systems, addresses stakeholder and industry risk tolerance, and addresses personnel administration
project sponsor
a executive withing the organization who has authority over the project, from allocating resources to making key decisions
fixed price incentive fee contract (FPIF)
a fixed price contract where the buyer pays the seller a set amount (defined by the contract) and the seller can earn an additional amount if the seller meets defined performance criteria. generally a penalty for delivering late
fixed price economic price adjustment contract (FP-EPA)
a fixed price contract where the buyer pays the seller a set amount (defined by the contract), but it allows for adjustments due to the economy, such as inflation. seller takes most of the risk
firm fixed price contract (FFP)
a fixed price contract where the buyer pays the seller a set amount (defined by the contract), regardless of the seller's costs. seller takes all the risk
judgmental method
a forecasting method that uses opinions, intuition, and estimates to predict future outcomes
rolling wave planning
a form of progressive elaboration where near-term work is planned in detail and future work is planned at a higher level
change control board (CCB)
a formally constituted group of stakeholders responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, with all decisions and recommendations being recorded. requires all change requests in writing, describes how change requests are managed, and requires updates to management plans. other forms of this are technical assessment board (TAB), technical review board (TRB), and engineering review board (ERB)
bubble-chart format
a format for displaying a work breakdown structure (WBS) that presents activities, tasks, and subtasks as linked circles
quality control (QC)
a function that measures the specific items that must be monitored to determine that the project will meet the stakeholders' expectations. inputs include work results, quality checklists, operational definitions, and the management plan. monitoring and recording results of executing quality activities to assess performance. requires knowledge of statistical quality control to determine the causes of unsatisfactory results
quality assurance (QA)
a function that monitors the overall ability of the project to meet the expectations of the stakeholders. the application of planned and systematic quality activities to ensure that the project will employ all processes needed to meet all stakeholder expectations and provide the confidence that the product of the project will fulfill the requirements of quality. auditing the quality requirements and the results to assure appropriate standards
risk breakdown structure (RBS)
a hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks
organizational breakdown structure (OBS)
a hierarchically organized depiction of the project organization arranged so as to relate the work packages to the performing organizational units
Algorithmic programming
a mathematical analysis model that can be used with the constrained optimization method of project selection
Nonlinear programming
a mathematical analysis model that can be used with the constrained optimization method of project selection
cost performance index (CPI)
a measure of cost efficiency on a project. CPI = EV / AC. positive is good, negative is bad
cost variance (CV)
a measure of cost performance on a project. CV = EV - AC
schedule performance index (SPI)
a measure of schedule efficiency on a project. SPI = EV / PV. positive is good, negative is bad. value of higher than one indicates project is getting more value than planned
schedule variance (SV)
a measure of schedule performance on a project. SV = EV - PV
control charts
a method of quality control that looks at the average and aims to keep production with three standard deviations of that. generally controlled by the rule of 7, that is, if there are 7 consecutive measurements above or below the mean, there is a problem that needs to be fixed. shows results of a process over time on a graph. used to determine if a process is stable
average rate of return on investment
a more complete justification of a project that considers all cash flows from the beginning of the investment to the end of the useful life of the project
statement of work (SOW)
a narrative description of products, services, or results to be supplied
audience list template
a predesigned audience list that contains audiences typically included for similar projects
Monte Carlo simulation
a probabilistic schedule distribution simulation conducted via computer simulation that selects random start and finish values. output is generally a frequency histogram and a criticality index. shows the probability of all possible project completion dates. it's a refinement of PERT
scope verification
a process that takes place at the end of a project in which the stakeholders sign off that the deliverable meets the acceptance criteria, which should have been agreed to at the beginning of the project
project calendar vs resource calendar
a project calendar describes working and non-working days and defines holidays. a resource calendar refers to the availability of individuals
Process decision program chart (PDPC)
a quality management and control tool that is useful for contingency planning. it is constructed like an organizational chart with a primary idea in the top box and related ideas branching off from there
resource breakdown structure
a refinement of the OBS that generally goes down to the individual level. shows types of resources employed by the project
constraint
a request for and agreement to a specific date for completion of a particular milestone in a project. factors that limit the project management team's options
issue
a risk event that has occurred
critical path methodology (CPM)
a schedule network analysis technique used to determine the amount of scheduling flexibility (float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. early start and finish dates are calculated by means of a forward pass, using a specified start date. late start and finish dates are calculated by means of a backward pass, starting from a specified completion date, which sometimes is the project early finish date determined during the forward pass calculation. it is a deterministic technique. uses most likely duration
precedence diagramming method (PDM)
a schedule network diagramming technique in which schedule activities are represented by boxes (nodes). schedule activities are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. generally include activity number, description, early start, early finish, late start, late finish, and duration. uses only one time estimate to determine duration. most commonly uses finish-to-start dependencies (activity-on-node, activity-in-the-box)
change control procedure
a statement within a project contract that allows for renegotiation of price and schedule for client-ordered changes in performance
responsibility assignment matrix (RAM)
a structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of the project's scope of work is assigned to a responsible person/team
change control system
a subsystem of the configuration management system. concerned with documenting procedures for change requests, tracking the status of change requests, and describing the management impacts of changes
work authorization system
a subsystem of the project management system. clarifies and initiates the work of each work package. written procedures defined by the organization. used throughout the project executing processes
aggregate project plan
a summary of various types of projects an organization engages in (portfolio project plan)
activities report
a table that lists activities and the dates on which you plan to start and end them
fait accompli
a tactic used in negotiation when one party tries to discuss an issue that is no longer relevant
Parametric estimates
a technique of Estimate Activity Durations and Estimate Costs that uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters, such as cost, scope, budget, and duration. include regression analysis and learning curve. work or units times rate or cost.
invitation for bid (IFB)
a term that is generally equivalent to RFP. sometimes has a narrower meaning. part of procurement documentation
Communication technology
a tool and technique of the Manage Communications process. takes into consideration urgency of the need for information, project environment, and duration of the project
parametric estimate
a top-down estimate that uses a parameter of the project that changes proportionately with project cost
analogous estimate
a top-down estimate that uses the actual cost of completion of a similar project. uses expert judgment and historical information. used when little information is available
double declining balances
a type of accelerated depreciation in which you halve the value every year. the result is equal to the depreciation for the year
sum of the years' digits
a type of accelerated depreciation in which you sum the digits of the years of life of the asset. example: 10 years = 10 + 9 + 8 + 7 + 6 + 5 + 4 +3 + 2 + 1 = 55. for the first year, multiply the value of the asset by 10/55 to get the amount of depreciation. next year, multiply the value by 9/55, etc.
cost plus percentage
a type of contract often used for a project that has a lot of risk associated with it. buyer must pay more if those risks occur.
activity-on-arrow
a type of network diagram (classical, traditional) in which activities are written on the arrows and the nodes are circles with no content in them (they only show dependencies). arrows also include the (tail) start and (head) end dates, which have no duration. the length of the arrow does not represent the duration of the activity. arrow diagramming method = ADM. uses only finish-to-start logical relationships
request for quotation (RFQ)
a type of procurement document used to request price quotations from prospective sellers of common or standard products or services. sometimes used in place of an RFP
request for proposal (RFP)
a type of procurement document used to request proposals from prospective sellers of products or services. seller suggests how the buyers needs might be fulfilled. may have narrower meaning in some applications
request for information (RFI)
a type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability
PERT formula
a weighted average formula of activity duration used to calculate project duration. EV = (O + P + (4)ML)/6. Also requires standard deviation which is (P - O) / 6. With PERT technique, a project with a greater than 95% chance of being completed according to the estimate has plus/minus two standard deviations (standard deviation is the square root of the variance). it is a probabilistic technique
zero sum
a win-lose reward, such as team member of the month, which limits recipients and can foster unhealthy competition
conditional activity
a work activity that's performed only if certain conditions come to pass
definitive estimate
accurate from -15% to +20%
preliminary estimate
accurate from -20% to +30%
conceptual estimate
accurate from -30% to +50%
bottom-up estimate
accurate from -5% to +10%. inherently more accurate than top-down because they are the sum of individual elements
order of magnitude estimate
accurate from -50% to +100%
Initiating process group
acquire, conduct, develop, direct, distribute, manage, perform. rough estimates of the project success are estimated and a preliminary scope definition is make. project justification is made and the project charter is written. processes include Develop Project Charter
two categories of listening techniques
active and effective. show the speaker you are interested, don't interrupt, listen for concepts and ideas, make sure both sides give feedback
quality circles
ad hoc organizations that meet to address a problem. they must be supported by the company but not managed by it
buffering
adding float to selected activities. activities on the critical path, with higher risk, or with a lot of dependencies are generally those that are buffered. this is like adding lag. two standard deviations from late finish date is a good amount of time
types of project endings
addition (is developed into an ongoing business process), starvation, integration and extinction (has been complete and accepted by stakeholders)
costs of prevention
additional planning, education and training, inspection and testing, improved design, quality staff, quality audits, quality plans and execution
Monitoring and Controlling process group
administer, control, monitor, perform, report, verify. the project is monitored for results and performance according to the project plan. recommendations for corrective action are made and the results of those are monitored. change management is important to prevent scope creep. lessons learned help with continuous improvement. includes Control Schedule process
quality management and control tools
affinity diagrams, process decision program charts, interrelationship diagrams, tree diagrams, prioritization matrices, activity network diagrams, and matrix diagrams
cost baseline
aggregates the estimated costs of project activities. used to measure variances and future project performance. the time-phased budget-at-completion for the project
benefit cost ratio
all the benefits of doing something divided by all the costs to accomplish it. if it is 1.0 or greater, the project is desirable
product scope
all the features and functions that the completion of the project will provide to the stakeholders
systems management
all work is considered a system where the work is a process that converts inputs to outputs
project management team
also called the core, leadership, or executive team. a subset of the project team and of the project management office. plans, controls, and closes the project
contract
an agreement between competent parties, for consideration, to accomplish some lawful purpose with the terms clearly set forth
failure mode and effect analysis (FMEA)
an analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component, and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of that component. or the examination of a product (at the system and/or lower level) for all the ways a failure may occur. an estimate is made of each potential failure for its effect on the total system and its impact. a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects
total quality management (TQM)
an approach to implementing quality improvement within an organization. quality is about prevention, not detection
quality audit
an independent review that identifies inefficient and ineffective processes used on a project, to improve processes and reduce the cost of quality, and to increase the percentage of product or service acceptance
risk trigger / risk symptom
an indication that a risk is about to occur
Agreements
an input to the Control Procurements and Determine Budgets processes
chart of accounts
an organization's accounting system that provides unique identifiers for control accounts, which are used for earned value management calculations. used to monitor project costs as defined by PMI
schedule data
an output of Develop Schedule process. includes project constraints and assumptions, milestones, schedule activities, and activity attributes
Work Performance Information
an output of the Control Stakeholders Engagement process
activity list
an output of the Define Activities process. includes all project activities, an identifier, and a description of the activity
Stakeholder Management Plan
an output of the Plan Stakeholder Management process. used to maintain stakeholder relationships in order to receive continued support for the project and to manage stakeholder expectations. developed by analyzing needs, interests, and potential impacts of stakeholders. includes details regarding distribution of information, reasons for distribution, and timing of information provided to stakeholders. tools and techniques include expert judgment, meetings, and analytical techniques
benefit measurement project selection methods
analysis and comparative approaches (decision models) including cost/benefit analysis
Plan Cost Management process
analysis in this process includes ROI, IRR, payback period, net present value, and discounted cash flows. output is the cost management plan that establishes the policies and procedures you'll use to plan and execute project costs
total float
applies to the whole project. if there are five tasks and each has one day of total float, once one of the tasks uses a day of total float, the float available for the other tasks becomes zero. number of days you can delay the start of a task without delaying the end of the project
standards of professional responsibility
aspirational and mandatory
earned value report
assesses the project's performance based on its scope, cost, and schedule measures. it is a cumulative report that generally has an S shape, meaning that costs are largest in the middle stages of a project. used for project performance reporting
job enrichment
assures lack of boredom, gives work meaning, lets people feel responsible, and gives a sense of competence
X bar value
average measurement of parts sampled in a control process. plotted on the control chart
four strategies for negative risks or threats
avoid (eliminate the risk), transfer/deflect (make someone else responsible), mitigate (reduce the probability or impact to an acceptable level), accept (let it happen and deal with it)
future value of money
because money is worth less in the future, projects that high returns early on in the life of the product are more justifiable
contingency reserve
budgeted funds for identified risks that may or may not come to pass. the project manager approves whether to use these funds. budget for the expected value, not the impact on the project should the risk come to pass
blanket order
buying a large amount in advance without having to take delivery. the supplier sends things as needed. at the end of the contract an economic adjustment is made to either the buyer or seller depending on whether the project used more or less of something. gives the seller a long-term investment and gives the buyer a fixed price
split order
buying a product from two difference vendors to lower the risk of something going wrong
procurement early termination methods
by agreement, via default, or for cause
decision tree analysis
calculate all of the expected values in a branching manner. whatever yields the largest result is what you should do
network circle communication links
can be calculated by [N x (N - 1)] / 2 where N is the number of people in the circle, including the project manager
motivation
can be extrinsic or intrinsic
resource leveling
can cause the whole project duration to increase because to reduce overutilization of resources, people need to be given more time to do their tasks. used when the project cannot run over schedule
contested changes
can take the form of disputes, claims, or appeals
weighted average cost of capital (WACC)
capital and assets used multiplied by the cost of capital
Ishikawa's seven basic tools of quality
cause and effect diagram (major defect, potential causes and effect), control chart (upper control limit x-axis, and lower control limit. shows variance and standard deviation), flowchart (activities, decision points, and order of processing. used to analyze how problems occur), histogram, Pareto chart (type or category, frequency by cause, and cumulative percentage), run chart, scatter diagram. used during the Plan Quality Management Process
lag
causes the dependent activity to have a designated number of time periods added to its start or finish. a delay of successor activities. used more often than leads
lead
causes the dependent activity to have a designated number of time periods subtracted from its start or finish. an early start of successor activities. used less often than lags
risk probability and impact matrix
chart that shows where risks lie when both impact and probability are taken into consideration. created during the Plan Risk Management Process
types of power
coercive, reward, legitimate, referent, expert, and representative (or reward, punishment, expert, legitimate, and referent)
Planning process
collect, create, define, determine, develop, estimate, identify, perform, plan, sequence. the project is progressively elaborated and the project scope is matured and more clearly defined.
performance reporting
collecting and disseminating information in order to provide stakeholders with information about how resources are being used to achieve project objectives. includes status reporting (earned value analysis and variance analysis), progress reporting, and forecasting
issue log
collection of objections from stakeholders
four basic decision styles
command, consultation, consensus, and coin flip (random)
variance report
compares the project's actual results to its baselines. variance can be random, predictable, or ones that are always present. used for project performance reporting. variances are depicted in control charts.
Status report
compares the project's current status relative to the performance measurement baseline
facilitated workshops
comprise cross-functional stakeholders. part of the Project Scope Management knowledge area
automated impact assessments
computerized spreadsheets that consider in combination both the risk that different situations will occur and the consequences if they do
configuration control
concerned with changes to the specifications of the deliverables or project management processes. is NOT the same as change management, which changes the deliverables (or baselines or documents) themselves
Monitor and Control Project Work process
concerned with collecting data, measuring results, determining whether corrective action is necessary, identifying new risks, providing forecasts, monitoring implementation of approved changes, and reporting on performance. occurs during initiating, planning, executing, and closing process groups
benefit analysis
conducted with stakeholders to validate project alignment with organizational strategy and expected business value
two costs of quality
conformance and non-conformance
Deming's 14 points (quality control)
constancy of purpose, adopt a new philosophy, eliminate need for inspection, consider total cost, improve constantly, initiate OJT, initiate leadership, drive out fear, break down barriers, eliminate slogans and targets, eliminate management by quota, remove barriers to pride of workmanship, institute education and self-improvement, get everyone involved
Plan Human Resource Management process
constraints include organization structures, collective bargaining agreements, and economic conditions. uses organization charts and position descriptions displayed in hierarchical charts, matrix charts, or text-oriented formats
basis of estimates
contains all supporting detail regarding cost estimates. is an output of the Estimate Costs process and an input to the Determine Budget process
project human resources management
contains organization planning, staff acquisition, and team development
cost budget
cost baseline plus the contingency and management reserves. the total amount the organization should have available to complete the project
steps in building a network diagram
create an activity list; assign duration to each; determine predecessors; calculate forward pass; calculate backward pass; calculate float; determine critical path; compare to projected completion date; adjust; apply resources; adjust for resource constraints; compare to projected completion; adjust or confirm; get approval
communication recipient filters
culture, knowledge, language, geographic location (distance), emotions, and attitudes
make-or-buy decision
decision to make a product oneself or subcontract. consider the security measures of the subcontractor to protect the product, and direct and indirect costs, ongoing need for the equipment used to make the product (buy or rent). done in a structure like an organizational chart
Define Activities Process
decomposes the work packages into schedule activities
scope management
decomposing the major deliverables into smaller, more manageable components to provide better control
teaming agreement
defines contractual obligations between parties. impacts planning processes by predefining the scope of work
Requirements Documentation
defines how each requirement of the project helps the project meet the business needs. used to manage customer expectations
Develop Project Management Plan Process
defines how the project is executed, monitored, controlled, and closed. describes the processes used to perform each phase of the project
project management plan
defines how the project will be executed, monitored, controlled, and closed. it is an input of the Close Procurement Process
Scope Management Plan
defines how the scope of the project will be defined, developed, monitored, controlled, and verified. helps in creating the WBS. documents how changes to scope will be managed
contractual WBS
defines the reporting information and timeliness of information that a supplier will give to the buyer
leadership styles
delegating, supporting, autocratic, and laissez-faire
Closing Process
deliverables are delivered and accepted by the stakeholders, accounts opened for the project are closed, scope baseline is reviewed to make sure work is complete and accurate, project documents are archived, purchasing activities are reconciled, organizational process assets are updated, and administrative closing procedures are performed.
critical success factor
deliverables or objectives that must be met in order for the project to be considered complete
Tannenbaum and Schmidt Continuum Management Theory
describes 7 levels of delegated freedom a team has regarding decision making and problem solving
Project Management Plan
describes how a project will be executed, monitored, and controlled. used as the guideline for future project decisions. captures actions required to consolidate and coordinate various supplementary plans. encompasses all outputs of the Planning Process Group
exception report
describes items that are not planned
plan-do-check-act cycle (PDCA)
describes the integrative nature of project process groups. developed by Shewart and modified by Deming
quality metric
describes what is being measured and how it will be measured by the Control Quality process. an output of the Plan Quality Management process
project plan
detailed task descriptions, schedule, costs, and scope baseline
Close Procurements process
determines if the work described in the contract was completed accurately and satisfactorily. input includes procurement documentation and the project management plan. tools and techniques include procurement audits, negotiated settlements, and records management system. output includes closed procurements and organization process assets updates
quality planning function
determines which quality standards will be used
cost of quality (COQ)
determining the costs incurred to ensure quality. prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements. failure costs (cost of non-conformance; cost of poor quality) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation
two process to do when starting a project
develop a Project Charter and Identify Stakeholders
three team member communication styles
directive, collaborative, logical (sometimes also include explorer)
tornado diagram
displays sensitivity analysis data
barriers to communcation
distorted perceptions, distrusted sources, transmission errors
methods of identifying risks
documentation review, brainstorming (good for divergent thinking), delphi technique, nominal group technique, crawford slip, expert interviews, root cause identification, SWOT analysis, checklists, and analogy
Validate Scope process
documents the level of project completeness for a cancelled project. product documentation is verified and accepted. inputs are validated deliverables, project management plan, scope baseline, requirements traceability matrix, requirements documentation, scope management plan. outputs are accepted deliverables, change requests, project document updates
crashing
doing anything at all to reduce the scheduled completion of a project. weighs cost and schedule trade-offs. often accomplished by adding resources. used during the Develop Schedule process
procurement audit
done to review the procurement process from Plan Procurement Management through Close Procurements to identify lessons learned
rough order of magnitude (ROM)
during the initiating phase it is wide. plus/minus 50 percent is normal
learning curve theory
each time people double the number of times they have done a certain task, they time they need to do it decreases by a constant percentage
three reasons for good document control
effective communication, ability to reconstruct why decisions were made, historical value
five key components of a communication model
encode, message and feedback-message, medium, noise, decode OR encode, transmit, decode, acknowledge, feedback/response
Administer Procurements process
ensures that both parties meet their contractual obligations. output includes procurement documentation
PMI Code of Ethics and Professional Conduct
ethical code to which PMP credential holders are required to adhere. applies to all PMI members, nonmembers who hold PMI certification, nonmembers who have begun to apply for certification, and nonmembers who serve as PMI volunteers
discounted cash flow technique
evaluates the cash flow for the entire project and compares it to the initial investment
Perform Qualitative Risk Analysis process
evaluates the probability and impact of identified risks using a probability and impact matrix. tools and techniques include risk probability and impact assessment, risk data quality assessment, risk categorization, risk urgency assessment, expert judgment. output includes risk register updates
win-win rewards
everyone who achieves something, like submitting reports or putting in extra hours to meet a deadline, wins
trend report
examines past results to see if the project's performance is improving
information retrieval systems
examples include manual filing systems, electronic text databases, and project management software
five estimating tools and techniques
expert judgment, analogous estimating, parametric estimating, three-point estimates (which use triangular (averaging) distribution and beta (PERT) distribution), reserve analysis
four strategies for positive risks or opportunities
exploit, share, enhance, accept
enterprise environmental factors
external factors that can negatively or positively impact the outcome of a project. include government standards, infrastructure, and project management information systems
management reserve
extra funds for unplanned project changes or risks that have not been identified. the difference between the cost performance baseline and the funding requirements at the end of a project. a person with more authority than the project manager determines when these funds can be used. these funds are not added to the cost baseline but are considered part of the project budget
bottom-up budgeting
financial estimating process in which a work breakdown structure (WBS) or action plan identifies elemental tasks, which are then converted to costs and combined to determine an overall direct cost for the project
backward pass
finish-to-start analysis by a project manager to determine critical paths and earliest start and finish dates
quality control techniques
fishbone diagram for cause and effect (also called Ishikawa); Pareto's 80-20 rule, checklists, the continuous improvement of kaizen, run charts that show periodically recorded measurements
capability maturity model integration (CMMI)
five stages of performance development. no processes, some unstandardized processes, best practices, measurable best practices, and continuous improvement
three types of contracts
fixed price, cost reimbursable, and time & materials
three major types of contracts
fixed-price (lump sum), cost-reimbursable (cost plus), time and materials (T&M)
Process Improvement Plan
focuses on finding inefficiencies in a process or activity and eliminating them. an output of the Plan Quality Management process and a subsidiary of the project management plan. considers process boundaries, expected start and end dates, process configuration, process metrics, process analysis, and any specific elements targeted for improvement.
project management office
formalized structure where the project teams and project manager reside. supports project teams with training/mentoring/coaching, software, tools, facilitating communications, managing resources, and establishing project management methodologies
five stages of developing a team
forming, storming, norming, performing, adjourning. part of the Develop Project Team Process
weak matrix organization
functional managers have more power than project managers. duties are often split between projects and functional roles. project managers may be called project coordinators or expediters instead. expediters might not manage the project but will be responsible for communications
Distribute Information process
gathering and disseminating relevant project information outlined in the communications management plan
collaborators
groups or other organizations in a project audience with which team members might pursue joint ventures related to the project
defect repair
happens before validated defect repair
attribute sampling quality inspection
has a yes or no result. it meets a criterion or it doesn't. is conforming or non-conforming. this type is fast and cheap and leaves little room for human error
Plan Procurement Management process
has the greatest ability to influence project schedule
affinity diagramming
have project members silently move sticky notes with all identified risks around on a wall, trying to group them. everyone can move any sticky note. let the process naturally come to a conclusion and see where the notes end up. it is a quality management and control tool and is similar to mind mapping. also known as KJ Methods
preventive action
help reduce the likelihood of risks that can contribute to an unfavorable project outcome
requirements traceability matrix
helps assure business value is realized when the project is complete because each requirement is linked to a business and project objective. connects requirements to their origins and traces them through the lifetime of the project
project team organization chart
helps assure that people can be located when they are needed when they move among various projects and back and forth in their functional department
organizational project management (OPM)
helps assure that projects, programs, and portfolios are managed consistently and support the overall goals of the organization
action item log
helps promote communication with stakeholders
return on assets (ROA)
how much profit is generated after each dollar of investment in the company. higher is better. NOPAT / Assets. 9% is a typical value.
return on sales (ROS)
how much profit is generated per dollar of sales. higher is better. NOPAT / gross revenue. NOPAT = net operating profit after taxes. 5% is a typical value
Plan Procurements Management process
identify which project needs should be obtained from outside the organization. uses source selection criteria (technical capability, management approach, references, financial capacity, and ownership of intellectual and proprietary rights) to choose a vendor from the proposals received. outputs include procurement documents, procurement management plan, procurement statements of work, source selection criteria, make-or-buy decisions, and change requests
expectancy theory (Victor Vroom)
if you continuously tell someone something, they will believe it and act accordingly. expectation of a reasonable and attainable positive outcomes drives motivation
Project Procurement Management KA processes
include Adminster Procurements and Close Procurements
Project Cost Management KA processes
include Estimate Costs, Determine Budget, and Control Costs
Project Communications Management KA processes
include Identify Stakeholders, Plan Communications, Distribute Information, Manage Stakeholder Expectations, and Report Performance.
Project Quality Management KA processes
include Plan Quality, Perform Quality Assurance, and Perform Quality Control. is aligned with ISO standards
change requests
include corrective action, preventive action, defect repair, and updates. expand or contract project scope. Change requests are an output of the Plan Procurement Management process (a Planning process) and are outputs of several Executing and Monitoring and Controlling processes. Approved change requests are an input to the Direct and Manage Project Work process (an Executing process) and change requests are an input to the Perform Integrated Change Control process (a Monitoring and Controlling process). Change requests are also outputs of several Monitoring and Controlling processes.
environmental factors
include government standards, infrastructure, project management information systems
Life cycle costs
include guarantees, warranties, and ongoing service
portfolios
include projects, programs, and other portfolios
financial control procedures
include reporting time, reviewing expenditures, reviewing disbursements, and assigning accounting codes using standard provisions for contracts
commercial databases
include standardized cost estimating data and industry risk study
Project Scope Management KA processes
includes (in this order) Collect Requirements, Define Scope (detailed description of the project is created), Create WBS (subdivides project deliverables into smaller components), Verify Scope, and Control Scope
project management information system
includes automated tool suites and configuration management
Develop Team process
includes enhancing competencies of the members and facilitating interactions among them. outputs include team performance assessment and enterprise environmental factor updates. tools and techniques include training
Plan Stakeholder Management Process
includes five levels of stakeholder engagement: unaware, resistant, neutral, supportive, and leading
Sequence Activities process
includes producing a schedule network diagram, updating the activity list, and identifying all activity dependencies
procurement statement of work
includes project objectives, a description of work, specifications, and a project schedule or time frame. developed from the project scope baseline and defines that portion of scope to be included in the contract
corporate knowledge base
includes the process measurement database, project files, historical information, lessons learned knowledge base, issue and defect management database, configuration management knowledge base, and the financial database
scope baseline
includes the scope statement, WBS, and project schedule. it is a subsidiary of the project management plan
should-cost estimates
independent estimates, sometimes conducted by the procurement department to compare the proposal costs against the vendor costs
the five process groups
initiating, planning, executing, controlling, and closing
Conduct Procurements process
input includes procurement management plan. receive bids and proposals and rank-order them using source selection criteria (price, technical approach, and management style). monitor vendor performance for adherence to contract. tools and techniques include bidder conferences (contractor conferences; vendor conferences; pre-bid conferences), independent estimates (should-cost estimate, used when prices from vendors vary wildly), expert judgment, advertising, Internet search, procurement negotiations, and proposal evaluations
Manage Stakeholders Engagement process
input includes the communications management plan. output includes issue log
Close Project or Phase process
inputs are the project management plan, accepted deliverables, and organizational process assets (closure guidelines and requirements, project audits, evaluations, and transition criteria, lessons learned knowledge base). Organizational process assets are updated, which means updating project files, project or phase close documents, and historical information. each phase should be closed out so lessons learned can be applies to the next phase
Estimate Activity Resources process
inputs include enterprise environmental factors, organizational process assets, activity list, activity attributes, and resource calendars. outputs include activity resource requirements, resource breakdown structure, and project document updates
Control Schedule process
inputs include organization process assets, project documents, and project management plan. Uses SV = EV - PV and SPI = EV / PV
Control Scope process
inputs include project management plan, work performance information, requirements documentation, and organizational process assets. tools and techniques include variance analysis. outputs include work performance measurements (which assess the magnitude of variation), organizational process assets, change requests, project management plan updates, and project document (such as scope baseline) updates
Estimate Costs process
inputs include scope baseline, project schedule, and human resource management plan. outputs include activity cost estimates, basis of estimates, and project document updates
three categories of communication methods
interactive, push, pull. communication should be given back in the method it was received, unless there is a compelling reason to change. communication is most effective when given with as many methods (oral, written, and visual) as possible. can also be vertical (with managers or subordinates) or horizontal (with peers)
eight tools and techniques for collecting requirements
interviews, focus groups, facilitated workshops, group creativity, group decision-making (unanimity, majority, plurality, and dictatorship), questionnaires/surveys, observations, prototypes
Perform Quality Control process
involves change requests. monitors results to assure they comply with quality standards.
capital appropriations plan
itemized list of all expenditures over an established minimum amount planned for facilities and equipment purchases, renovations, and repairs during the year
activity definition
key inputs are the work breakdown structure, the scope statement, constraints, assumptions, and historical information that supports the applicable activity
five interpersonal skills
leadership, team building, motivation, communication, and influencing (sometimes also include decision-making, political awareness, cultural awareness, and negotiation)
risk threshold
level of risk impact or uncertainty at which stakeholders may choose a different risk response
bill of material (BOM)
lists product components in a hierarchical way
sensitivity analysis
look at a single parameter of the project and just examine what affects that parameter. hold everything else in the project constant, as if it will go according to plan. the extent to which the uncertainty of each of the elements of the project affects the objective being examined when all other uncertain elements are held at their baseline values
forward buying
lowers cost of shipping and chances that product won't be available. often provides discount for bulk purchase. downside is having to store all the items and the risk that they will become obsolete
Control Communications process
makes sure the right information is delivered to the right people at the right time. Inputs include the issue log. Tools and Techniques: information management systems, expert judgment, communication methods (status meetings), and other meetings
informal performance assessment
management by walking around (MBWA)
risk management process
management planning, identification, assessment, quantification, response planning, and monitoring & control
managing vs. leading
managing is concerned with consistently producing key results expected by stakeholders. leading is about establishing direction, aligning people, motivating, and inspiring
dependencies
mandatory or hard dependencies (hard logic) are defined by the nature of the work. discretionary dependencies are defined by management as a preferred (preferential logic or soft logic) way of doing things and they create arbitrary total float values. both are used to define a sequence of activities
factors that necessitate the initiation of a project
market demand, organizational/opportunity/business need, customer requests, technological advances, legal requirements, ecological impacts, social needs
causes for projects
market demand, strategic opportunity, business need, customer requests, technological advances, legal requirements, ecological impacts, and social need
constrained optimization project selection methods
mathematical models (decision models) that use linear, dynamic, integer, nonlinear, and algorithm formulas to make decisions
Determine Budget process
may require updates to the risk register. creates cost and performance measurement baselines that are used to perform earned value management calculations such as variances and performance. tools and techniques include reserve analysis, cost aggregation, expert judgment, and historical relationships. assigns cost estimates to project activities.
graphical representations of a project schedule
milestone charts - show start and completion dates of major deliverables. bar charts - show duration of tasks. schedule network diagrams - show task dependencies
effect of risk
more risks adversely affect the schedule than improve it. therefore, most likely project completion dates are earlier than the mean/expected date
Eliyahu Goldratt - critical chain theory
most activities have a large amount of float because many activities on the critical path have resource constraints and buffering that lead to float and free float for other activities. you should delay the start of activities that are not on the critical path as long as possible to allow yourself to learn from mistakes made early in the project and complete those other activities on the feeder chains better
earned value analysis
most commonly used monetary value as a unit of measure but can also use labor hours, square footage, cubic meters, etc.
danglers
multiple places in a network diagram where a project can start and finish
how to record risks
name, description, date, person responsible for managing, reference to WBS, probability, impact, severity, and mitigation strategies
feeding buffers
nonwork activities added to dependent activities that feed into the critical chain. they help account for limited resources and/or unforeseen project issues
project buffers
nonwork activities added to the end of the critical chain. they help account for limited resources and/or unforeseen project issues
OPM
organization project management framework. a way to ensure that projects are managed consistently and that they support the goals of the organization
Perform Quantitative Risk Analysis process
output includes risk register updates
Plan Risk Responses process
output includes risk register updates and risk-related contract decisions. risk responses are preventative actions
Monitor and Control Risks process
output includes risk register updates. tools and techniques include risk reassessment, risk audits, variance and trend analysis, technical performance measurements, reserve analysis, and status meetings.
Plan Communications process
output includes the communications management plan
Identify Stakeholder process
output includes the stakeholder register
administrative closure
outputs are the project archives, project closure, and lessons learned. administrative closures should be done with the end of each major phase of the project and not held off until the project is complete
Manage Stakeholder Expectations process
outputs include organization process assets updates, change requests, project management plan updates, and project document updates. tools and techniques include communication methods, interpersonal skills, management skills
Plan Scope Management Process
outputs include the scope management plan and the requirements management plan
Delphi technique
participants anonymously provide everything they think is a risk. moderator circulates the master list around for comments
committee
people who come together to review and critique issues, propose recommendations for action, and, on occasion, implement those recommendations
functional organization
people with similar skills work together
Expectation Theory
positive outcomes drive motivation
three types of life cycles
predictive (plan driven), iterative or incremental (deliverables early), and agile (deliverables every 2-4 weeks)
two categories of the cost of quality for avoiding failures
prevention and appraisal
risk rating
probability times impact
Project Integration Management KA
process flow: develop project charter, develop project management plan, direct and manage project execution, monitor and control project work, perform integrated change control, close project or phase. all of these require expert judgment
capacity
productivity per unit time period
controlling
project management responsibility that includes reconfirming people's expected performance, monitoring actions and results, addressing problems encountered, and sharing information with interested persons
balanced matrix organization
project managers and functional managers have the same amount of power. functional manager is generally responsible for employee skill improvement and seeing that people are assigned where they can be used most effectively. project manager is generally responsible for managing the dual reporting relationship of the team members. used because of pressure to share resources
strong matrix organization
project managers have more power than functional managers. they are better able to get the people they really need on their teams
negative risk acceptance
project team develops a plan of action to take if the risk occurs
breakthrough projects
projects involving newer technology that may disrupt the status quo in an industry or marketplace
quality management approaches
proprietary ones include: Deming (cost of quality is a management issue 85% of the time), Juran (fitness for use - meet stakeholder and customer expectations), and Crosby's (zero defects). nonproprietary ones include: Total Quality Management (TQM), Six Sigma, Failure Mode and Effect Analysis, and Voice of the Customer
Develop Project Charter process
provides a well-defined start date and a way for senior management to formally accept the project. uses expert judgment and facilitation. the process that produces the project charter, which is authored by a sponsor, usually an executive manager. used to define and document the high-level requirements and description of the project. inputs to this process include contract, project statement of work, enterprise environmental factors, and organizational process assets
straight line depreciation
purchase price - salvage value. divide by number of years of life of the asset and take away an equal amount each year
Direct and Manage Project Work process
purpose is to execute the project plan. majority of project budget is spent here. approved changes are implemented. uses the project management information system (PMIS). actions include collecting project data and facilitating the forecasting of cost and schedule. outputs include work performance data (schedule status, status of deliverables, lessons learned, and resource utilization)
Perform Integrated Change Control process
put in place no later than completion of the scope baseline. purpose is to review, approve, and manage changes in the project, including staffing changes. concerned with influencing factors that circumvent the change control process, reviewing change, and managing the integrity of baselines. includes configuration management and change control systems. outputs include change request status updates, project management plan updates, and project document updates. tools and techniques include change control meetings and expert judgment
request for bid
put out for project work when the selection will largely be driven by price. used for commercial items / commodities
quality vs. grade
quality describes how well a product or service fulfills the requirements. grade describes products or services that are of the same type but have differing technical characteristics
interrelationship digraphs
quality management and control tool used for complex problem solving. can interconnect up to 50 different factors, processes, or areas of focus
contract life cycle
requirement (project and contract needs), requisition (preparing requests for proposal), solicitation (obtaining bids and proposals), and award (vendors chosen)
requirements vs. deliverables
requirements describe the specifications or necessary prerequisites. must be able to track, measure, trace, and test them. deliverables are outputs that must be produced to bring the phase or project to completion. deliverables are tangible and be measures and proved. deliverables can also be intangible, such as team training
earned value management technique
requires project baselines, progress information, and variance information
change management process
requires the stakeholder to authorize additional funding just to investigate the change. if there is justification, he then authorizes funds for the change itself
RACI
responsible, accountable, consult, and inform. a type of responsibility assignment matrix
constraints
restrictions that other place on the results, time frames, resources, and ways a project team can approach its tasks. part of the statement of work
Crawford slip
same question is asked to the participants 10 times, forcing them to think of 10 unique responses
project schedule display options
schedule network diagram with dates, Gantt chart, milestone chart
fast tracking
scheduling activities to be done in parallel that would normally have been done in sequence. used during the Develop Schedule process
costs of defects
scrap, rework, repair, replacement, loss of business, legal problems, liability, risk to life and property
ISO 9001:2000
sets international standards for quality conformance. to qualify, an organization must meet requirements in: control of documents, control of records, internal audits, control of nonconformance, corrective action, and preventive action. these standards are revised and reissued every five years
scope definition
should be completed early in the project to help estimate costs. poor scope definition can lead to rework, increased project costs, schedule changes, and poor morale
procurement agreement
should include SOW, time period of performance, pricing and payment plan, acceptance criteria, warranty periods, dispute resolution procedures, and status report procedures
responsibility-accountability matrix
shows who is responsible for certain responsibilities. uses the letters PARIS (participates, accountable, reviews, input required, sign off)
ascribed power
someone gives the project manager the authority to reward and punish those whom he or she wants to influence
Develop Schedule process
start and finish dates for your project activities are determined and activity sequences and durations are finalized. inputs to this process include calendars, lead and lags, project schedule, schedule data, schedule baseline, risk register, activity resource requirements, and activity attributes. uses compression techniques of crashing and fast tracking. one output is schedule data
David McClelland's Theory of Needs (Achievement)
states that individuals are motivated the most by achievement, affiliation, and power
Contingency Theory
states that people are continually motivated to achieve levels of competency even when the competency is reached
SWOT
strengths (internal), weaknesses (internal), opportunities (external), and threats (external)
Plan Communications Management process
subsidiary of the project management plan. should be completed as early as possible to define and manage the flow of project information. tightly linked with enterprise environmental factors and organizational process assets. tools and techniques include communication requirements analysis, communications technology, and communication models
sum of years' digits calculation for depreciation
sum the digits of each of the years of useful life, then reverse the digits and divide by the total to get the percent of the value to be taken in that year. this is an accelerated depreciation method
level of effort (LOE)
support activity which does not produce definitive end products. generally characterized by a uniform rate of work performance over a period of time determined by the activities supported
comparative risk rank
take all the risks in the project and compare them only in pairs (AA, AB, AC, BC, etc) to see which is more likely to occur. Then see which risks got the highest number of points.
reserve analysis
takes schedule risk into account and adds a percentage of time or extra work periods to prevent schedule delays. compares the remaining contingency reserve to see if it can adequately cover remaining risks
operations
tasks and functions that are ongoing and repetitive
types of risks
technical, business, project management, customer, and environmental
economic value added (EVA)
tells whether a company's NOPAT is sufficient to cover the cost of assets it uses. NOPAT - WACC
meeting size
ten people is generally the optimum. 5 to 11 is ideal for making a decision
authority
the ability to make binding decisions about a project's products, schedule, resources, and activities
corrective action
the act of performing a workaround or contingency plan. anything that brings future project performance in line with the project plan. documented, authorized instructions
float
the amount of time an activity can be delayed without causing a delay in the project
performance measurement baseline (PMB)
the approved plan for project work against which the project execution is compared and deviations are measured for management control. incuded in the project management plan
planned value (PV)
the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or WBS component. also referred to as budgeted cost of work scheduled (BCWS). cumulative plot showing when expenditures are supposed to be made. will be equal to EV and AC if the project goes according to plan
expected monetary value (EMV)
the average outcome when the future includes scenarios that may or may not happen. often calculated through use of decision tree analysis. a higher EMV is more favorable
progressive elaboration
the concept of incrementally and continually refining the characteristics of a product, service, or result as a project progresses
value engineering
the creative process used to optimize the life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, or use resources more effectively
Project Statement of Work
the description of products, services, or results to be delivered by the project. should include items that are not necessarily part of the product, such as quality reports, manuals, documentation, and performance/progress reports. includes business need, project scope description, and strategic plan.
R value
the different between the highest and lowest value of dimensions measured in a control process. plotted on the control chart
Project Charter
the document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. contains business case, project objectives and success criteria, high level risks, rough schedule (summary milestones) and budget, expectation for stakeholders, list of assumptions and constraints, project manager name, and project name. written by the project manager but distributed under the name of the person with the power to authorize the project. is the customer is external to the business, must be accompanied by a contract
project scope statement
the documentation of product scope description, project goals, deliverables, and requirements. is an input to the project management plan
estimate to complete (ETC)
the expected cost needed to complete all the remaining work for a schedule activity, WBS component, or the project. is a summation of all costs of remaining work based on estimates from team members. when work is anticipated to proceed as planned, formula is EAC - AC. when work is not anticipated to proceed as planned, formula is a reestimation. when future variances will be similar to past variances, the formula is (BAC - EV) / CPI. when future variances are expected to be atypical, the formula is BAC - EV.
estimate at completion (EAC)
the expected total cost of a schedule activity, a WBS component, or the project when the defined scope of work will be completed. basic formula is AC + bottom-up ETC. using actual costs to date and assuming ETC uses budgeted rate, the formula is AC + (BAC - EV). assuming future performance will be like past performance, the formula is BAC / CPI. when cost performance is negative and schedule dates must be met, the formula is AC + [(BAC - EV) / (CPI x SPI)]
duration
the length of time needed to do an activity (the number of days that one or more people work on it)
acceptable quality level (AQL)
the level that defects cannot exceed when using statistical sampling for quality inspection. used in sampling inspection. use of this method can cause the total outgoing quality level to decrease at first but then it will increase
Executing process
the most resources are used during this phase
effort
the number of people hours needed to do an activity
baseline schedule
the original schedule plus or minus approved changes
criticality index
the output of a Monte Carlo simulation that shows the percent of time a given activity is on the criticality index. the percent of the number of simulations that an activity is on the critical path
spending plan
the plan for the flow of money to pay for the project
organizational process assets
the plans, processes, policies, procedures, and knowledge bases (lessons learned, financial data, issue and defect management, history, identified risks) that are specific to and used by the performing organization. two kinds: organizational process and procedures, and the corporate knowledge base
breakeven point
the point where the benefits of doing the project outweigh the cost when compared to not doing the project at all, or more specifically where the sum of the investment and the unit cost times the number of units is the same. also called the payback period. doesn't consider the ongoing costs after the project is over. is the least precise method of deciding whether to take a project on. payback analysis is used to predict potential financial performance of a project or service. favors buying cheap, low quality items that pay back quickly
expected value (of a risk)
the probability of it happening times the dollar impact if it does happen. then you can calculate the best case for a project by summing only the positive values and the worst case by summing only the negative values
configuration management process
the process of making sure that the product meets the design criteria in terms of form, fit, and function. a standardized and effective way of centrally managing approved changes and baselines. processes include configuration identification, configuration status accounting, configuration verification and auditing. documents characteristics and functionality. manages approved changes to specifications of the product or project management processes.
projectized organization
the project manager has supreme authority
positive risk acceptance
the project team does nothing about the risk
backing in
the schedule process of starting at the end of a project and working backward toward the beginning, identifying activities as you go and estimating durations that will eventually add up to the amount of time that the project has been given
critical path
the series of activities that have zero float (cannot be delayed at all without causing a delay in the project)
net present value
the sum of all the cash flows of a project adjusted to present values
management by objective
the supervisor and employee jointly establish performance objectives
span
the time that elapses between the start and finish of an activity (accounts for days when no one might be working on the activity)
quality
the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs
earned value (EV)
the value of work performed expressed in terms of the approved budget to that work for a schedule activity or WBS component. also referred to as budgeted cost of work performed (BCWP). cumulative plot of work actually performed. value is equal to the budget that was estimated. will be equal to PV and AC if the project goes according to plan
products with integrity
these are complete and sound or fit for use
model of communication
thinking, encoding, symbols, transmitting, perceiving, decoding, and understanding
Risk Management Plan
this plan describes how project risk management will be structured and performed on the project. may be formal or informal, high detailed or broadly framed. the information included varies by application area and project size. it is different from the risk register that contains the list of project risks, the results of risk analysis, and the risk responses.
Quality Management Plan
this plan describes how the project management team will implement the performing organization's quality policy. may be formal or informal, high detailed or broadly framed
Communications Management Plan
this plan describes the communication needs and expectations for the project, how and in what format information will be communicated, when and where each communication will be made, and who is responsible for each type of communication. the "how and what" portion includes a collection and filing structure, distribution structure, description of info to be communicated, production schedules, methods of access, and method of updating and refining communications. that is, includes purpose, frequency, and format. project managers spend approximately 90 percent of their time communicating. includes Plan Communications Management, Manage Communications, and Control Communications
Schedule Management Plan
this plan establishes the criteria and the activities for developing and controlling the project schedule. may be formal or informal, high detailed or broadly framed
Human Resource Plan
this plan identifies and documents project roles, responsibilities, reporting relationships, and the staffing management plan (which describes when and how human resources are taken on and off the project)
Cost Management Plan
this plan sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs. may be formal or informal, high detailed or broadly framed. is established using the WBS. output of the Plan Cost Management process. based on an approved project charter, project scope, schedule, resources, and other information. units of measure are described in hours, days, weeks, or a lump sum. subsidiary of the project management plan. describes the level of accuracy, reporting formats, and units of measure.
four major factors that affect decision styles
time constraints, trust, quality, and acceptance
four categories of forecasting methods
time series, causal/econometric (regression analysis, autoregressive moving average, and econometrics), judgmental (Delphi, technology forecasting, and forecast by analogy), and other (such as simulation, probabilistic, and ensemble)
Identify Risks process
tools and techniques include brainstorming, Delphi technique, interviewing, and root cause analysis (cause-and-effect diagramming). outputs include the risk register
Create WBS process
tools and techniques include decomposition. output includes the scope baseline
Verify Scope process
tools and techniques include inspection (measuring, examining, verifying, reviews, walk-throughs, audits) and product analysis. stakeholders formally accept completed project scope and associate deliverables
Collect Requirements process
tools and techniques include interviews, focus groups, questionnaires, group creativity (including brainstorming, Delphi, and idea/mind mapping), and surveys
Acquire Project Team process
tools and techniques include preassignment, negotiation, acquisition, multi-criteria decision analysis, and virtual teams
Report Performance process
tools and techniques include variance analysis, forecasting methods, communication methods, and reporting systems. inputs include work performance information, work performance measurements, budget forecast, project management plan updates, and organizational process assets
Estimate Activity Durations process
tools and techniques: expert judgment, analogous estimating, parametric estimating, three-point estimating, group decision-making (unanimity, majority, plurality, and dictatorship), and reserve analysis
budget at completion (BAC)
total budget of the project. the last point on the PV line. the sum of the expenditures currently planned for the project. does not change from week to week unless the budget for any task changes
actual cost (AC)
total costs actually incurred and recorded in accomplishing work performed for a schedule activity or WBS. can be just labor costs, direct costs, or all costs. also referred to as actual cost of work performed (ACWP). cumulative actual costs plotted every reporting time period. will be equal to PV and EV if the project goes according to plan
total slack vs. free slack
total slack time is the amount of time you can delay the start of a task without delaying the ending of the project. free slack is the amount of time you can delay the start of a task without delaying the start of a successor task
centrally organized structure
traditional organizing structure for handling projects within an organization; individual units are established to handle all work in particular specialty areas (fixed group organization)
probability distributions
uniform, binomial, triangular (averaging), Poisson, beta (PERT), normal, and lognormal. used in the Quantitative Risk Analysis Process
workaround
unplanned response to a negative risk
risk register
updated at the end of the Plan Risk Responses process. records risks, response strategies, owners, risk triggers, budget, and schedule activities needed to implement responses, contingency plans, and residual (what remains after the implementation of a planned response) and secondary risks (a direct outcome of implementing a risk response). describes probability, impact, priority, and ownership. also sometimes status, dates, and notes
control account
used during the Project Cost Management KA to monitor and control project costs. used to calculate earned value performance measures. consists of actual cost, schedule, and scope
resource smoothing
used to accommodate resource availability by modifying activities within their float times. used when the project can run over schedule
staffing plan
used to communicate personnel need requirements, utilization of each person, and the assignments they have in the future. used to help manage costs and notify other project managers when people from one team are available to work on another. looks like a Gantt chart with a bar for each person showing length of time and dates each person will work on each project
s-curve
used to display project costs graphically. costs are highest during the Executing & Monitoring and Controlling phases
Control Procurements Process
used to monitor vendor performance and ensure all requirements of the contract are met. tools and techniques include: contract change control system, procurement process reviews, inspections and audits, performance reporting, payment systems, claims administration, and records management system. Alternative dispute resolution is the preferred method of settling contested changes. During this process, the following processes are integrated: Direct and Manage Project Work, Control Quality, Perform Integrated Change Control, and Control Risks.
Pareto diagram
used to rank-order the causes of problems and is a type of histogram. enables you to determine which defect to correct first based on the frequency
Manage Project Team process
used to track and report on the performance of individual team members and prepare performance appraisals
fallback plan
used when risk impact is high and the response plan will not likely be effective. not a contingency plan.
Plan Quality Management process
uses cost-benefit analysis, cost of quality, Seven Basic Quality Tools, benchmarking, design of experiments (identifies variables that have greatest overall effect on project outcomes), statistical sampling, additional quality planning tools, and meetings
Control Costs process
uses forecasting with ETC and EAC formulas to estimate the future conditions or future performance of the project based on what is known when the calculation is performed. outputs include updates to budget forecasts, organizational process assets, project management plan, and project documents
Hertzberg's Theory
uses hygiene factors and motivating agents to show that motivating individuals is best done by giving them rewards and letting them grow. satisfiers are sense of achievement, recognition, work satisfaction, responsibility, advancement. satisfiers improve productivity after the point of no dissatisfaction has been reached. dissatisfiers are company policy, relationships with supervisors, salary, personal factors, status, and security. dissatisfiers need to be maintained for workers to be satisfied
Develop Project Team process
uses interpersonal skills, training, team-building activities, ground rules, co-location, recognition & reward, improving competencies, team environment, and personal assessment.
Maslow's Hierarchy of Needs
uses levels that need to be fulfilled in order to attain self-actualization. food, shelter, clothing; security and safety; socialization; recognition; self-actualization
Sequence Activity process
uses precedence diagramming method
Perform Quality Assurance process
uses quality management, quality control, quality audits (may be scheduled or random), and process analysis. process analysis looks at process improvement from an organizational and technical perspective. outputs include organization process assets updates, change requests, project management plan updates, and project document updates. assures project satisfies quality standards set out in quality management plan. concerned with correctness of work. project manager has greatest impact on quality during this process.
variable vs. attribute inspection
variable inspection is the measurement of some characteristic of a part. attribute inspection is a yes/no determination of whether something is good
back charge
when a product was delivered with defects but the buyer agrees to fix the defects himself. then charges the cost of work done to the seller
project starvation
when funding or resources are cut
buyer's risk
when the sampling process passes a lot that is bad and it gets shipped to the customer
seller's risk
when the sampling process rejects a lot that is good and it gets destroyed
six techniques for avoiding conflict
withdrawing/avoiding, smoothing/accommodating, compromising, forcing, collaborating, confronting/problem solving
concurrent engineering (CE)
work processes in which two or more steps are carried out at the same time to save time and costs
project scope
work that must be done to deliver the product scope to the stakeholders. must be complete before the cost and schedule baseline can be completed. used to manage customer expectations