PMP V6

Negotiations

May occur between the buyer and the seller when the buyer is outsourcing work to another company. Negotiations should result in a win/win situation for both parties.

Communications Management Plan

Defines the communication needs of the stakeholders, the format and frequency of communications, and the person responsible for delivery. The plan can include communication rules, project expectations, reporting and meeting schedules, change processes, and contact information for the team.

Iteration Burndown Chart

Depicts remaining work from the iteration backlog.

Competition Power

Maximizes involvement in the project in the form of competition to increase the level of commitment on the part of those involved in the project.

Monitor Stakeholder Engagement (Monitoring and Controlling Process Group)

Focuses on stakeholder relationships and modifies stakeholder engagement strategies and plans as appropriate. The benefit of effectively performing this process is that stakeholder engagement will be maintained or increased throughout the project.

Project Management Office (PMO)

A group that standardizes project governance and simplifies the sharing of resources, tools, techniques, and methodologies

Design for X (DfX)

A set of technical guidelines that may be used while designing a product in order to ensure the maximum functionality of the product. The X in DfX can be applied to specific aspects of product development such as reliability, cost, service, safety, and quality. Applying DfX may result in: - Cost Reduction - Superior Performance - Quality Advances - Customer Satisfaction

Attribute Sampling

A specific measurement that is typically recorded. For example, square feet, inches, or meters. A variable must be defined before an attribute can be defined.

Rent or Buy

($ per day) x (number of days) = purchase price + (maintenance fee per day x number of days)

PERT (Program Evaluation Review Technique)

(O + P + (4 x M)) / 6

Common Negotiation Strategies

1.) Competition - using one seller against another to attain the best price or other terms the buyer desires. 2.) Deadline - Using a deadline to attempt to get a party to sign the contract 3.) The Boss is Missing - Explaining that a person who is key to the approval is not available

Histogram

A bar chart that indicates the occurrence of a variable.

Hammock Activity

A summary activity that encompasses all of the tasks or activities underneath it. Starts at the earliest start date of the activities encompassed and finishes at the latest finish date of the activities encompassed.

Project

A temporary initiative that creates business value. It has a specific purpose, creates unique results, drives organizational change, and has a definite start and finish

Rolled Throughout Yield (RTY)

A term used in Six Sigma to describe the probability that a unit can pass through a process without defects.

Cause-and-effect (Ishikawa, Why-Why, or Fishbone) Diagram

A tool used during initialization to evaluate what could potentially cause defects in a project or process. After the project has started, it can be used to review symptoms and determine the real problem

Define Scope (Planning Process Group)

A written project scope statement is created. The scope statement is used for decision-making throughout the project. It typically includes: 1.) What is included in the project 2.) What is involved in the creation of the project 3.) What the project is expected to do upon completion

Matrix Organization

Accommodates established functional organization structures while being flexible enough to implement projects. Primary drawback of a matrix organization is that a team member may report to more than one manager, which may result in conflicting priorities. Matrix Organization Types: 1.) Weak Matrix - The weak matrix organization is similar to a functional organization, but makes some accommodations for projects 2.) Balanced Matrix - The balanced matrix organization represents the middle ground between a strong matrix organization and a weak matrix organization. The functional manager controls resources and the project manager delivers the results of the projects. 3.) Strong Matrix - The strong matrix organization is almost "projectized," but its roots are still functional. It usually has a project management function or group that provides a solid foundation for project management in the organization.

Schedule Examples

Activity Lists - contains all required schedule activities for the project, an identifier for each activity, and a rather detailed scope of work description for each activity. Bar Charts - each activity, and a rather detailed scope of work description for each activity. Network Diagrams - visual representations of network logic and scheduling

Just-in-Time (JIT)

An inventory management process that results in little to no inventory, other than what is required to fulfill existing orders. Ideally, *zero inventory* is stocked and supplies arrive only when needed for product fulfillment. JIT reduces overall costs by lowering or eliminating the costs associated with unnecessary inventory.

Functional Manager

An operational position that controls operational resources

Product Scope

Associated with what is created as a result of the project and is weighted against the product requirements

Knowledge of Needs Power

Attempts to realize the stated results expected by the other party during negotiations and the actual results expected by the other party during negotiations. Knowledge of these two items allows the project manager to focus on a solution instead of a moving target.

Weighted Milestone

Approach that is utilized for activities that typically are longer than two reporting periods. The work is divided into multiple milestones with a measurable output for each section of work and fixed formula progress reporting is applied to each milestone.

Cost Baseline

Approved version of the time-phased budget, exclusive of management reserves. It contains a summation of the authorized budget for scheduled activities, which is used to compare the baseline to actual results, and cost estimates for activities and their contingency reserves collected into work package costs, which are further collected into control accounts. The cost baseline is a component of the project management plan.

Project Files

Any project documents that record what occurred, what decisions were made, and what changes were approved. Financial records and legal documents are examples of project files.

Project Management

Application of information, skills, tools, and techniques to project activities in order to meet project needs.

Attribute Sampling vs. Variable Sampling

Attribute sampling entails checking that the actual result conforms to the expected result. Variable sampling entails rating the result on a continuous scale that determines the degree of conformity to the expected result. https://www.brainbok.com/guide/pmp/study-notes/attribute-vs-variable-sampling/

Schedule Baseline

Authorized version of the schedule model. It lists connected activities with planned dates such as the planned start date and finish date for each activity, duration, milestones, and resources. The schedule baseline is a component of the project management plan.

Project Charter

Authorizes the existence of the project, is typically created after an initiative goes through preliminary planning or a feasibility study. Typically includes: 1.) Project justification and purpose 2.) Success criteria 3.) High-level scope (requirements) of the project 4.) Any constraints and assumptions 5.) Time and cost goals 6.) Authority level of the project manager 7.) Stakeholder definition and level of influence 8.) Organizational information 9.) Project approval requirements It may be created by anyone with the authority to create a charter, even the project manager, but it must be signed by someone, typically senior management or the sponsor, who can invest authority for the project.

Parametric

Based on an existing parameter, this method is usually created by industry standards or experience. The advantage is that it can be done quickly and is usually accurate. Ex: A house builder quotes the cost of a house at $150.00 per square foot. A carpet installer quotes $5.00 per square yard for installation.

Project Management and Quality Management

Both should complement each other. Both focus on customer satisfaction, management responsibility, continuous improvement, and prevention over inspection.

Buyer and Seller Names

Buyer: - Client - Customer - Prime Contractor - Contractor - Acquiring Organization - Government Agency - Service Requester - Purchaser Seller: - Contractor - Subcontractor - Vendor - Service Provider - Supplier Depending on circumstances, the terms for the buyer and seller can change during the project.

Requirements for a Contract

CCOLA - Capacity: individual legal entities who are competent and are of legal age - Consideration: the remuneration given to the seller by the buyer - Offer: the proposition that the seller will provide a product, service, or result for remuneration - Legal Purpose - Acceptance: the buyer's willingness to accept the offer from the seller

Stakeholder Engagement Plan

Can be formal and structured or informal and unstructured. Purpose of the document is to establish guidelines for the engagement, management, and control of stakeholders and their expectations. The plan helps the project manager and team: - Compare the current and desired level of key stakeholder engagement - Identify interrelationships between stakeholders - Identify stakeholder communications requirements - Update the stakeholder engagement plan when needed.

Maslow's Hierarchy of Needs

Can be used to determine what will motivate a person. Self Actualization - opportunities to realize personal potential, achieve personal growth or self-fulfillment, and/or participate in peak experiences Esteem - opportunities to experience achievement, mastery, independence, status, self-respect, and/or respect from others Belonging - Opportunities to experience friendship, trust and acceptance, and/or affiliation with a group Safety - opportunities that will achieve or increase security, stability, order, and/or freedom from fear Physiological - opportunities to fulfill survival basics, such as air, potable water, food, and shelter.

Probability and Impact Matrix

Can be used to evaluate the impact of a risk and the probability of its occurrence. This can be used to analyze each risk, and then create an overall risk ranking for the project.

Contract Interpretation

Can keep the organization out of court or put it in court. Generally, the contract administrator should understand what is defined in the contract and interpret that in alignment with general legal opinion.

Control Schedule (Monitoring and Controlling Process Group)

Changes to the schedule are managed and controlled

Basic Tools of Quality

Check sheets and checklists, flowcharts, histograms, Pareto diagrams, scatter diagrams, control (run) charts, cause-and-effect diagrams, and the Five WHYs.

Check Sheets and Checklists

Check sheets are used to capture and categorize quantitative or qualitative data. Can be used for tracking such items as instances of process failure in specific areas over a specific period of time. Checklists are tools used to ensure that all process steps have been completed as planned. The use of checklists can improve quality and eliminate defects.

Total Quality Management (TQM)

Conceived by Dr. Deming, approaches quality management proactively and applies statistical analysis as the basis for documenting improvement. Espouses planning quality and testing throughout development rather than relying on inspection after completion of the work. - Be proactive, not reactive - Utilize leadership and accountability - Measure improvement throughout the process, striving for continuous improvement. *Continuous process improvement is key to TQM*

Impact

Consequences to the project if the risk event occurs. The impact can be positive or negative.

Plan Quality Management (Planning Process Group)

Consists of determining and designing the standards, policies, and procedures for the project.

Develop Team (Executing Process Group)

Continues throughout the project although the majority of the process occurs during execution. The key to team cohesion is following the resource and project management plans. Key areas of focus should be increasing trust and interactivity between team members and improving the skill levels of team members

Cost of Quality

Cost of quality is equal to the *cost of conformance* or the *cost of nonconformance.*

Plan Stakeholder Engagement (Planning Process Group)

Create a stakeholder engagement plan that details the strategies that will be used to engage stakeholders with the project in alignment with their desires, stake, and potential influence on the success of the project.

Organizational Charts ( Organizational Breakdown Structure)

Depicts the reporting relationships of the organization's human resources. The chart is typically categorized by divisions, departments, and groups and rarely includes details related to project organization and work.

Accelerated Depreciation

Depreciates faster than standard depreciation. Two main types of accelerated depreciation: 1.) Sum of the year's digits 2.) Double declining balance (DDB)

Persuasion Power

Discounts logic, which technical people can often use to sell ideas. Persuasions is used instead of focusing on comparisons that relate to the experience of the negotiating parties, creating evidence that can't be overlooked, and demonstrating how a solution will meet the needs of the other party.

Agreements

Each selected seller is awarded a procurement contract or agreement. The contract is a legally binding agreement obligating the seller to provide one or more specified products, services, or results and obligating the buyer to compensate the seller. Study characteristics on pg. 517

Leadership and Management Styles with the Project Management Life Cycle

Early - Directing Gaining momentum - Coaching Significant work completed - Facilitating Closure - Supporting

Risk Power

Employs calculated risks in negotiations to achieve project goals. Refusal to move from a negotiation position can limit success during negotiations. It is also important to know as much about the negotiation environment as possible.

Manage Project Knowledge

Entails creating new knowledge from existing knowledge in order to achieve project objectives and add to organizational learning.

Benefits of Risk and Contracting

Example of a new risk is the failure of the seller to provide the services as promised. When outsourcing, a buyer can minimize risk exposure.

Communication Blockers

Factors that disrupt the message that the receiver is trying to interpret from the sender

Constraints

Factors that limit project options, and can include such items as the number of people, the amount of time, or the amount of money available to complete the work of the project.

Control Costs (Monitoring and Controlling Process Group)

Focuses on how to control any project budget changes and can involve influencing and managing changes related to cost, managing cost levels compared to the baseline, analyzing and managing cost variance, documenting cost records, and communicating with stakeholders regarding cost issues.

Forecast Reports

Forecast reporting methods include: 1.) Time series, which base future outcome estimates on historical information 2.) Causal/econometric, which base outcome estimates on underlying factors (weather impacts outer-wear sales) 3.) Judgement, which base outcome estimates on opinion, probability, and intuitive judgement (scenario building, surveys, Delphi method) 4.) Other methods, such as ensemble forecasting, probabilistic forecasting, and simulation Forecast reports provide information about what is expected to occur during the project, Forecast reporting associated with cost can include. 1.) Estimate at Completion (EAC): the funds needed to totally finish the project based on current spending efficiency 2.) Estimate to Complete (ETC): additional funds needed as of this point in time to finish the project 3.) Variance at Completion (VAC): the amount forecasted to be over/under budget based on budget at completion (BAC) versus estimate at completion (EAC)

Expert Power

Form of power that project managers must earn on their own. The project manager is perceived as an expert on the subject by those on the team or at the company. Example: We must listen to what he says regarding project management. He created the Crosswind Success Series of Products.

Centralized and Decentralized Contracting

In a centralized environment, contract administrators support each other. They have career paths and likely have a great degree of shared expertise. In a decentralized environment, the project has only one contract administrator who does not have support from other contract administrators. The position is viewed more as a need instead of a career type position; the person likely works on only one project, or is the only contract administrator working on a specific project.

Stakeholder Management

Key characteristic of stakeholder management is that, early in the project, an individual stakeholder can have a great degree of influence, but that influence often decreases as the project evolves. A key area of stakeholder management that needs to be considered is the identification and analysis of each stakeholder. It is vital that key stakeholders are engaged, as appropriate, throughout the project.

Requirements Traceability Matrix

Key output of the Collect Requirements process. Associates requirements with their origins and traces them throughout the project life cycle. A grid used to align requirements to the deliverables that satisfy them to ensure the requirement adds value. The matrix allows the requirements to be monitored throughout the project life cycle and provides a framework for managing scope changes

Requirements Documentation

Key output of the Collect Requirements process. Delineates how requirements fulfill the business needs of the project.

Lead and Lag

Lead - the time period in which an activity can be started before its predecessor has been completed. Lag - A delay between activities

Formal Power

Legitimate power that comes from senior management at a company authorizing you to be the project manager. Example: As you saw at the kickoff meeting, the sponsor said that I am the manager of this project and the team takes direction from me on matters related to the project.

Assumptions

Lessons learned is valuable in helping to create valid assumptions. As the project evolves, assumptions decrease.

Formal Acceptance

Major component of the contract because it represents the buyer's agreement that the outsourced work is acceptably complete.

Bidder Conferences

Meetings that provide potential sellers a forum to ask a buyer questions and obtain clarification about potential issues before creating a proposal. The conferences should let potential sellers ask questions and should make the questions and answers available to anyone considering bidding on the project. Buyer representatives need to be sure that all questions and answers are available to all potential sellers and they must take all reasonable steps to ensure that potential sellers do not collude to inflate pricing.

Iterative Relationship

Planning for the successor phase is conducted while work is being performed on the current phase. Typically used for a project characterized by uncertainty or a constantly evolving environment.

Prevention vs. Inspection

Prevention, a proactive approach to quality, entails eliminating defects and potential defects from the process. Inspection, a reactive approach to quality, entails discovering errors or defects after the work is complete.

Determine Budget (Planning Process Group)

Primary activity is rolling up the cost estimates for the activities or work packages to create a total project budget amount that will serve as the cost baseline. A detailed estimate of the project cost, as well as its individual pieces, is the result of this process.

Projectized Organization

Primary focus is on the project. This greatly increases the project team's ability to optimize its chances of success. Major drawback is that upon project completion, there might not be positions available for all team members.

Continuous Improvement (Kaizen)

Proactive approach to development with the emphasis on making improvements throughout a process. Ex: Using automated shipping software instead of performing all shipping activities manually. This approach improves the shipping process by reducing the potential for error. Unless there is a major environmental change, major process improvements are likely to occur at the beginning of an initiative with minor improvements occurring later.

Control Quality (Monitoring and Controlling Process Group)

Process area in which the product, or the output of the process, is measured against the specifications. During Control Quality, project results are measured against the approved standard.

Control Procurements (Monitoring and Controlling Process Group)

Process of administering procurement affiliations, tracking buyer and seller performance, making any necessary adjustments to the contract, and closing the contract, if applicable. The designated contract administrator verifies the product, service, or result that will be provided by the seller as they fulfill the terms and conditions of the agreement. If there are multiple sellers, the contract administrator is also responsible for managing interface points between the providers.

Define Activities (Planning Process Group)

Process of determining and listing the activities required to create the deliverables of the project. The list is created without regard to necessary resources, start dates, or completion date.

Life Cycle Costing (Total Cost of Ownership)

Process of examining all costs associated with a project plus the product's operational costs

Manage Quality (Executing Process Group)

Process of executing the project quality management plan and verifying/validating that the quality standards defined for the project will meet the desired standards. This process validates the quality process, not the product, by taking a random sampling of items created in order to verify a desired level of acceptability. During Manage Quality, the quality management plan is executed.

Develop Project Charter (Initiating Process Group)

Process which creates the document which formally authorizes the project or project phases and authorizes the project manager to use organizational resources for project activities. The charter aligns the project with organizational objectives, creates a formal record of the project, and is evidence of organizational commitment to the project.

Success Measures

Project manager and stakeholders must agree on, and then document, the factors that define project success, the approach to measuring success, and the factors that will impact success.

Plan Risk Responses (Planning Process Group)

Responses for risks are developed, strategies for addressing risks are determined, and actions for addressing risk exposure are decided for both individual risk and overall project risk.

Risk Triggers

Risk event indicators that are typically identified in conjunction with identification of the risk. The occurrence of a risk trigger is an indication that a risk event could occur in the near future.

Implement Risk Responses (Executing Process Group)

Risk response plans are implemented.

Network Diagram

Schematic of project activities. It shows how the various activities are connected as a result of Sequence Activities. The diagram provides a visual representation of the project work flow. It is also a tool that can be used to evaluate schedule compression techniques such as crashing and fast tracking.

Secondary Risk

Secondary risk that results from the implementation of a risk response.

Contract Type Selection

Study pages 504 - 507

Budget at Completion (BAC)

The amount the project is expected to cost. Total the costs of each project activity without regard to completion status

Opportunity Cost

The cost of taking one opportunity over another. If a person accepts a $75,000 job in lieu of a $60,000 job, the opportunity cost is $60,000. Pick the value of the opportunity not selected.

Quality

The degree to which a set of inherent characteristics fulfill requirements

Total Slack

The latest an activity can start without delaying the project finish date

Probability

The likelihood that an event will occur.

Probabilities

The likelihood that something will occur.

RACI Chart

The most common RAM chart used during the Plan Resource Management process. Indicates the type of involvement (Responsible, Accountable, Consult, Inform) that each team member has in a specific activity.

Strategic Planning

The practice of defining its strategic goals (planned objectives) three to five years in the future

Depreciation

The process of devaluing a capital asset in the tax system.

Progressive Elaboration

The refinement of the plan as new information relevant to the work of the project is discovered. This often involves multiple incremental changes.

Plan Scope Management (Planning Process Group)

The scope management plan and the requirements management plan are created.

Variance to Completion (VAC)

This indicates the amount the completed project is expected to be over or under budget. BAC - EAC

Analogous (Top Down)

Usually a total time or cost estimate that has no significant detail. The main advantage of this estimate is that it can be created quickly; the disadvantage is that it lacks detail or individual piece estimates. Typically, it is called analogous method when the estimate is based on the time or cost of a similar project. Ex: A high level estimate is created based on experience or past project history.

Incentive Fees

A fee that the buyer can use to impose a specified standard of productivity on the seller. The fee is typically an amount paid to the seller in addition to the base price of the contract

Enterprise Environmental Factors

A form of project influence. Includes: 1.) Government regulations 2.) Market conditions 3.) Organizational structure and culture 4.) Business infrastructure systems 5.) Government standards 6.) Personnel policies 7.) The business market 8.) Stakeholder tolerance for risk 9.) PMIS (Project Management Information Systems)

Organizational Process Assets

A form of project influence. Includes: 1.) Information systems 2.) Company policies and procedures 3.) Process definitions 4.) Templates 5.) Criteria to complete (close) projects 6.) Organizational communication needs 7.) Issue management 8.) Financial infrastructure 9.) Change control processes 10.) Risk management 11.) Work authorization

Control Scope (Monitoring and Controlling Process Group)

Addresses, through the Perform Integrated Change Control process, scope change request and recommended remedial/corrective actions. The process also addresses the management of approved changes. For a predictive project, such as a traditional project, Control Scope is executed on an ongoing basis. For an adaptive project, such as an Agile project, Control Scope is repeated for each iteration.

McClelland's Achievement Theory

Based on Maslow's Hierarchy of Needs, but considers only three needs: achievement, power, and affiliation. Those motivated by achievement want to meet goals that are challenging and receive regular feedback regarding their progress. Those motivated by power want to influence others and are motivated by recognition and status. Those motivated by affiliation want to be well-liked members of a group and are motivated by participating in collaborative efforts with little uncertainty.

Decision Trees and Expected Monetary Value (EMV)

Based on an analysis of the probability and impact of all potential decision to determine the potential expected monetary value (EMV), or expected risk value, of the opportunity as a whole This is accomplished by multiplying the probabilities and the impact (minus any costs), then totaling the results for each project or opportunity. Note that the sum of all probabilities must equal 1.0 or 100%

Precedent power

Based on an idea or solution that has achieved desired results in the past. If the idea or solution was used outside the organisation, precedent power can be used to challenge the way things have always been done at the organization.

Sources of Conflict

Best understood when the sources of conflict are understood. Traditionally, conflict occurs during planning. To minimize conflict, a project manager can utilize team ground rules, group norms, and project management practices. Greatest Source of Conflict - Scheduling Priorities - Scarce Resources - Personal Workstyle - Methodology Details - Cost - Personality Lease Source of Conflict

Perform Quantitative Risk Analysis (Planning Process Group)

Breaks down risks from a high, medium, and low ranking based on actual numerical values and probabilities of occurrence. Risks that are higher in probability and impact are more likely to be evaluated during the Perform Quantitative Risk Analysis process.

Direct and Manage Project Work (Executing Process Group)

Consists of leading and performing project work in accordance with the project management plan, as well as implementing authorized changes. The project manager, with the project team, directs the performance of the work, manages the technical and organizational interfaces in the project, and implements authorized changes. During this process, resources are allocated as available, their work is managed, and any changes that arise from the analysis of work performance data and work performance information are put into place.

Operations Management

Consists of managing operational resources and the day-to-day activities of the organization

Lessons Learned at the End of the Phase or Project

Feedback is solicited regarding what worked and didn't work on the project, as well as what could have been done to maximize the positive and minimize or eliminate the negative. This information is then recorded and tabulated. Several methods used to solicit feedback: 1.) A meeting or open discussion may be conducted 2.) A questionnaire may be distributed for completion 3.) A combination of a meeting/open discussion and a questionnaire

Responsibility Assignment Matrix (RAM) Charts

Graphically details the responsibility level of each team member for a specific item. The risk register is a RAM chart.

Persistence Power

Has the negotiator adhering to the negotiation objective, rather than giving up in the face of rejection .Persistence involves holding on and working toward the target.

Professionalism Power

Involves working with others in a professional and practical manner. It helps foster a win/win relationship by allowing the project manager to consider the needs of the other parties.

Return on Investment (ROI)

In the case of of ROI and project selection, typically, select the project with the largest ROI (number or percentage)

Interpersonal Skills

Skills utilized by project managers to take advantage of each team members's strengths. - Leadership Skills: should be used throughout the project, especially to convey vision and inspire the project team's *performance-influencing skills* which should be used in a matrix organization to influence stakeholders on a timely basis; the most important performance-influencing skills are clear presentation of information, listening skills, consideration of other viewpoints, and knowledge of critical and relevant information - Effective Decision-Making Skills: should be used to influence and negotiate with members of the project team and the organization; effective decision-making skills include focusing on goals, utilizing a decision-making process, knowledge of the environment and its impact on the project, managing opportunities and threats, and stimulating team creativity.

Project Management Life Cycle (PMLC)

Includes the five process groups: initiating, planning, executing, monitoring and controlling, and closing. These process groups can be applied to a project or to individual project phases

Product Life Cycle

Includes the product or service from concept to divestment (closure)

Project Life Cycle

Includes the project work processes

Conduct Procurements (Executing Process Group)

Incorporates soliciting responses from the sellers, selecting a seller, and awarding the contract. The team will request bids or proposals from potential sellers, apply the defined selection criteria to the bids or proposals received to determine the selected seller, and award the contract to the selected seller. Major procurements may require iterations of this process and include negotiation.

Investment Power

Involves delaying key decisions so that enough time elapses for stakeholders/other appropriate parties to make a significant time investment in the project. After such a time investment is made, stakeholders/other appropriate parties are typically more flexible in their negations with project management.

Free Slack

Involves determining the latest that an activity can start without delaying the activities that follow it

Monitoring Communications (Monitoring and Controlling Process Group)

Involves monitoring and controlling project communications to make certain that stakeholder communication requirements are achieved. A focus of this process is information flow to determine if information bottlenecks can be either limited or eliminated throughout the life of the project.

Organizational Theory

Involves strategies for motivating employees and creating a productive work environment.

Monitor and Control Project Work (Monitoring and Controlling Process Group)

Involves tracking, reviewing, and reporting project progress (through initiating, planning, executing, and closing) in order to achieve project objectives as described in the project management plan. The process provides stakeholders with an insight into the current state of the project, the information to understand actions taken to address performance issues, and the information to determine the future state of the project.

Project Expediter

Acts as a communication link to senior management and performs activities such as verifying completion of assignments and checking on the status of an undertaking. Typically they do not have decision-making abilities

Assumption Log

A document that lists the assumptions and constraints identified during the creation of the project charter. Also a key output of the Define Scope and the Create WBS process group.

Special Provisions

Typically added to a contract to account for any standard terms and conditions that will not meet the needs of the work involved. The buyer and seller negotiate these provisions, which complement any workable standard terms and conditions that have already been defined in the contract as acceptable.

Test and Evaluation Documents

Typically based on organizational templates and industry needs, are used to assess if quality expectations are met

Normal Distribution

Typically depicted as a bell shaped curve that represents a typical outcome from project activity with no abnormalities, that is a curve with an equal mean, medium, and mode. A variance in the bell share is still normal; the data is just much closer in the measurement.

Noncompetitive Form of Procurement

Typically done when there is only one source for the products or when the buyer has an established relationship with the seller and there are mechanisms in place to ensure that the buyer of the products or services attains a fair price. If a vendor is selected without competition, there is a chance for inappropriate selection and unreasonable pricing.

Attitude Power

Typically involves the use of a third party acting as the negotiator for the project manager. This arrangement can minimize the possibility of taking things personally during negotiations.

Closing the Project

Typically occurs when the customer or sponsor formally accepts the product, service or result of the project. After the project is closed, any additional work is warranty work or new work.

Arrow Diagramming Method (ADM) / Activity-on-Arrow (AOA) / Activity-on-Line (AOL)

Typically used for manual drawing. This method depicts each activity on an arrow or line, and activities are connected by a circle or box. A dummy may also be used with ADM. A dummy is a dashed line that connects an activity and has a zero duration. Has a finish-to-start predecessor.

Milestone Schedule

Typically used in executive reporting and each milestone has a zero duration. It lacks detail, generally listing only the main project milestones as diamonds instead of Gantt bars. Executives usually don't require much detail, so the milestone schedule fits their needs.

Logic Bar Chart

Sometimes called a Gantt chart, is a common chart used to track the day-to-day details of the project. Project teams require more detail so they typically use Gantt charts.

Common Causes

Sometimes called random causes or normal process variations. These are variations that can occur within a process or random events.

Special Causes

Sometimes called unusual events, activities or results that typically do not occur during a process.

Control Accounts

Specific points in the WBS where the project scope, budget, actual cost, and schedule are combined in order to establish performance measurements. This allows tracking progress at appropriate levels of detail throughout the WBS

Design of Experiments (DOE)

Statistical process used to determine the factors that can influence variables associated with a process or product. DOE should be applied during the Plan Quality Management process to determine the overall impact on the cost of quality based on testing types and number. It is useful when optimizing products or processes.

Evolution of Requirements

Starts with *business requirements*, which are created in alignment with enterprise goals. *Stakeholder requirements* are created next. Stakeholder requirements focus on stakeholder needs as they align with the business goals and server as a bridge between business requirements and solution requirements. *Solution requirements* are then created to ensure that the business need is met. Solution requirements can include *functional* and *non-functional* requirements. *Transition requirements* are created last and focus on the activities needed to implement the new solution.

Manage Team (Executing Process Group)

Team performance is analyzed and feedback provided. Also involves coordination of project-related issues and optimization of project performance.

Sample Testing

Tests a predetermined percentage of every item created. The optimum percentage ensure the discovery of defects, while keeping testing costs to a reasonable level.

Population Testing

Tests every item created (for example, every airplane built). It is used if the confidence level needs to be 100%

Monitor Risks (Monitoring and Controlling Process Group)

The PM and team focus on observing the project activities for risks, risk triggers, and appropriate risk responses. It can also include verifying that project assumptions are still applicable, the occurrence of any trends, and a determination of contingency reserves for the schedule and budget.

Identify Risks (Planning Process Group)

The PM, team, key stakeholders, and/or subject matter experts identify possible project risks.

Tolerances vs. Control Limits

Tolerances are a specified range of acceptable results Control limits are identified boundaries of common variation in at statistically stable process or process performances.

Performance Reports

*P*rogress = *P*oint in Time *S*tatus = *S*um of all Progress *F*orecast = *F*uture Work *V*ariance = *V*ary from Plan Earned *V*alue = Triple Constraint

Destructive Team Roles

- Aggressor: role with a negative attitude toward the project - Blocker: role that interrupts the project's information flow - Withdrawer: role that is non-participatory regarding project information and issues - Recognition Seeker: expects recognition or other reward in exchange for participation in the project Topic Jumper: doesn't stay focused on the primary topic - Dominator: promotes its own views without considering the views of others.

Management Styles

- Autocratic: manager has strong or unlimited power and authority - Charismatic: has an appealing persona that makes working as a team member enjoyable - Coach: brings out the best in the team/team members - Director: drives the direction of the team/team members to accomplish specific activities and goals - Facilitator: keeps the project work progressing. This style is not extremely proactive and does not have ownership - Mediator: tries to find common ground when there is disagreement. Ideal when there are varying technical opinions or disagreements among resource managers. - Mentor: similar to the coach, but focuses more on providing a road map for individual improvement and helping team members take on new skills and roles - Visionary: focuses on where the team or organization needs to be in the future. Focuses on the big picture rather than day-to-day events.

The procurement management plan helps the PM and team do the following:

- Determine make vs. buy for the various needs of the project - Establish what procurement documents (RFP, RFI, RFQ) are needed for the project - Create the procurement documents for the project - Run bidder conferences - Address single source and sole source procurement - Select vendors to do work - Establish contract(s) with vendors

Work that should not be delegated

- Evaluating or ranking team members - Long term (strategic) planning - Monitoring extremely important activities - Rewarding team members - Determining policies - Personnel selction

Procurement Management Plan

- Formalizes the types of contracts and procurement documents that will be used - Details procurement metrics, assumptions, constraints, and risk management issues - Indicates if, and when, independent estimates will be used - Designates any prequalifed sellers - Describes the manner in which multiple suppliers are managed - Describes the manner in which make-or-buy decisions are conducted - Describes the manner in which the project management ream will work with the procurement department of the performing organization - Describes the manner in which procurement is coordinated with other project processes, such as scheduling and reporting.

Constructive Team Roles

- Initiator: a proactive roles that takes initiative and contributes insights and ideas that improve the project - Information Seeker: works to increase information and knowledge associated with the project - Information Giver: shares information, which results in improved project communication - Encourager: encourages team members to focus on project results rather than project challenges - Clarifier: focuses on ensuring team members understand project details - Harmonizer: focuses on smoothing over any conflicts - Summarizer: relates back to the overall picture of the project's focus - Gate Keeper: helps bring people into the project; in business, the gate keeper is often the role that prevents access - Devil's Advocate: contradicts popular views or opinions about the work of the project.

Additional Components that may be included in Contracts

- Statement of Work (SOW) - Period of Performance - Pricing - Inspection and Acceptance Criteria - Limitation of Liability - Insurance and Performance Bonds - Termination and Alternative Dispute Resolution - Deliverables Description - Roles and Responsibilities - Payment Terms - Warranty - Fees and Retainage - Subordinate Subcontractor Approvals - Service Level Agreements - Performance Reporting - Sellers Place of Performance - Place of Delivery - Product Support - Penalties and Incentives - Change Control Procedures

Quality Responsibility

- Team Member/Worker: Responsible for the quality of their own work. Ex: the electrician is accountable for doing satisfactory work on the job - Project Manager: Responsible for the quality standards on the project. Ex: The PM is responsible for the quality of the networking project. - Senior/Executive Management: Responsible for the quality standards at the organization. Ex: The CEO and senior management are responsible for quality at the organization.

Work that can be delegated

- Technical activities - Cross-training-related work - Routine activities - Enjoyable activities - Work to alleviate the stress or routine of assigned work - Work that can be better performed by others.

Scope Baseline

- The authorized version of project scope. It contains the project scope statement, the work breakdown statement, the work package, one or more planning packages, and the WBS dictionary. - It describes the work the project is trying to complete. - The scope baseline is a component of the project management plan. Also a key output of the Create WBS process group. Also a key input and output for the Control Scope process group.

Sensitive Areas in Contract Interpretation

- The contract replaces anything that was agreed to before it was signed; if it is not in the contract, it is not a requirement - All the items of the contract should be completed, including reports, quality control, inspections, etc. - It's better to spell out numbers than use only the numerical symbols - Any agreement to modify the contract should be created and signed as an attachment to the contract - If any changes are made to the contract before it has been signed, the changes should be handwritten and initialed by all parties - Specific details associated with qualification criteria for the work should be defined at an appropriate level of detail; using verbiage such as "system will work" falls short of "system will perform requirements A through Z listed in the scope of work requirements"

Plans in the Project Management Plan Document

1.) *Requirements Management Plan* 2.) Schedule Management Plan 3.) Quality Management Plan 4.) Communications Management Plan 5.) Procurement Management Plan 6.) *Change Management Plan* 7.) Scope Management Plan 8.) Cost Management Plan 9.) *Process Improvement Plan* 10.) Resource Management Plan 11.) Risk Management Plan 12.) *Stakeholder Management Plan* 13.) *Configuration Management Plan*

Communication Types

1.) Active Listening - the receiver verifies with the sender that the message was interpreted correctly by asking for clarification or by providing feedback to the sender 2.) Effective Listening - the receiver observes visual and vocal cues, as well as asking for feedback from the sender 3.) Feedback - the sender receives feedback from the receiver (the feedback can be in the form of an acknowledgement, a simple interpretation of the message, or questions designed to clarify the message) 4.) Nonverbal - nonverbal exchanges, including body language and facial expression, can account for 55% of a communication 5.) Paralingual - voice characteristics are particular important when the sender conveys the message.

Communication Skills Commonly Used by Management

1.) Active and effective listening 2.) Questioning to enhance understanding 3.) Educating to increase the project team's knowledge, leading to increased effectiveness 4.) Fact-finding as a means of identification or confirmation of information 5.) Setting and continuously managing expectations 6.) Using persuasion to elicit desired action 7.) Using negotiation to achieve agreement acceptable to all parties 8.) Using conflict resolution to prevent negative impact 9.) Using summarization, recap, and identification of subsequent steps to ensure adequate understanding of information

Configuration Management Activities

1.) Configuration identification to establish the baseline and validate status. Configuration identification is the basis for defining and verifying product configuration, labeling products, managing change, and maintaining accountability 2.) Configuration status accounting to provide documentation, storage, and access to project product data. Configuration status accounting is the recording and reporting of data about the configuration item including item identification, proposed change status, and implementation status of approved changes 3.) Configuration verification and audits to provide verification of the project's results. Performance of configuration verification and audits ensures that the functional requirements defined in the configuration documentation have been met, that the composition of a project's configuration items is correct, and that corresponding changes have been registered, assessed, approved, tracked, and correctly implemented.

Risk Management Plan is used by the PM and Team to:

1.) Create the risk register 2.) Identify risks (positive and negative) and triggers 3.) Define the probability and impact matrix, as well as its thresholds 4.) Determine when and how to perform quantitative risk analysis, expected monetary value (EMV), and decision tree analysis 5.) Establish risk responses 6.) Establish risk owners and detail the responsibilities of each risk owner 7.) Implement risk responses 8.) Monitor and respond to risks

Different Types of Scope of Work

1.) Design - A scope of work in which the buyer provides the seller with the exact details of what is required. Design is typically used when buyers know exactly what they want and want no variance from specifications. It typically works with fixed-price contracts. Ex: A company hires a vendor to build a prototype cabinet to house telecom equipment and provides the vendor with specifications for the cabinet, which must hold a number of devices already created 2.) Functionality - A scope of work type in which the buyer details to the seller the functionality needed in the new system or development. Functionality allows sellers to propose their own solutions as long as the end-results are achieved. It typically works with cost plus (CP) contracts. Ex: A company hires a vendor to implement a a phone system and provides only functional requirements ; as long as the those requirements are met, the vendor can build the solution at its discretion.

The Communications Management Plan helps the PM do the following:

1.) Determine communication needs for the project stakeholders 2.) Establish and utilize communication infrastructure for distributing project information 3.) Report project performance to the appropriate stakeholders 4.) Address communication issues that arise on the project

The approach the PMO may take can be:

1.) Directive - PMO directly manages projects 2.) Controlling - PMO provides support and requires compliance in the form of adoption of mandated project management frameworks, governance frameworks, and/or tools and documentation 3.) Supportive - PMO provides project management templates, best practices , lessons learned, and access to other supportive information

Cost Management Plan Helps the PM and Team Do the Following:

1.) Establish the cost of activities and work packages on the project 2.) Establish the cost accounts and the procedures necessary to use the chart of accounts with the WBS and schedule 3.) Establish policies associated with updating the budget and distribution of the budget through the work of the project 4.) Update actual costs and adjust the cost baseline 5.) Establish the policies and procedures for changes to cost

Quality Management Plan

1.) Establishing the definition of quality for the project and its work (quality baseline) 2.) Establishing checklists to ensure processes are followed 3.) Defining all process steps 4.) Validating that established quality processes are effective 5.) Testing throughout development 6.) Formatting project/process data for communication to project stakeholders 7.) Responding effectively to any changes in the project's quality standards and processes

Dimensions of Communication Activity

1.) Formal - should be used for legal communication and project documents, communication involving extreme distance or complexity (written), official situations (verbal), presentations (written and verbal), communication that is primarily one-directional (verbal) 2.) Internal - communication within the project 3.) External - Communication with the customer, other projects, the media, and the public 4.) Vertical - communication up and down the organization 5.) Horizontal - communication with peers 6.) Official - communication that is on the record, such as newsletters and annual reports 7.) Unofficial - communication that is not on the record 8.) Written and Oral - communication that is in writing and/or verbal 9.) Verbal and Non-Verbal - communication that conveys signals other than words (inflection of voice, body language)

Trends for Effective Project Communication

1.) Inclusion of stakeholders in project reviews including frequent reviews of the stakeholder group to update changes in membership and attitudes 2.) Inclusion of stakeholders in project meetings where appropriate 3.) The increased use of social media to exchange information and build relationships 4.) The use of multifaceted communications approach to engage and exchange information with stakeholders

Cost management plan can be used to establish:

1.) Level of accuracy 2.) Units of measure 3.) Organizational procedures links, which includes control account (CA) links to the project WBS and company accounting system 4.) Control thresholds 5.) Reporting of cost performance

Managing Project Change Requests

1.) Never tell the customer/sponsor "no" when asked about a request. If the customer/sponsor is willing to encounter a delay or pay more to implement the change, it is the decision of the customer/sponsor 2.) Listen to the customer/sponsor regarding their request 3.) Involve the appropriate team members to determine the options associated with the request and their impact 4.) Communicate the options to the customer/sponsor 5.) Let the customer/sponsor make the final decision based on the options you have provided them 6.) If applicable, create a change request to accommodate the option decided upon by the customer/sponsor

Procurement Document Types

1.) Request for Information (RFI) *Typical Purpose*: Typically used to solicit information to learn more about a company that could provide service for a buyer. *Description*: It is a document requesting information about a service provider's *Example*: A request from a state government to determine if a consulting company has the appropriate experience to bid for the project. 2.) Request for Quote (RFQ) *Typical Purpose*: Typically used to solicit proposals for a small dollar amount or used for commodity type of products that do not require a great degree of customization *Description*: A document that request a price for a standard item. There is a general assumption that negotiation is not associated with this type of procurement document. *Example*: A request for prospective sellers wishing to provide pricing for customer-established server criteria: Quantity 50 XYZ Servers with 64 G RAM, RTB hard drive to be purchased within 90 days of submittal. 3.)Request for Proposal (RFP) sometimes called Request for Tender (RFT) *Typical Purpose*: Typically used to solicit proposals for larger, higher priced customized services or products. The seller describes the detailed solution approach it proposes to take and includes a list of related experiences. *Description*: A document that request an approach, price, and significant detail about how the seller proposes to do the requested work. The general assumption is that negotiations occur based on the scope, schedule, and cost of the buyer's request and in consideration of the seller's suggestions. *Example*: A request for a proposal to prospective sellers for design, implementation, and training for a data warehouse to consolidate five different enterprise databases at a fortune 500 company named Widgets, Inc. 4.) Invitation for Bid (IFB) sometimes called Request for Bid (RFB) *Typical Purpose*: Used for government sealed bidding processes with characteristics similar to those for an RFP (request for proposal) *Description*: A document that request an approach, price, and significant detail about how the seller proposes to do the requested work. The general assumption is that negotiations occur based on the scope, schedule, and cost of the buyer's request and in consideration of the seller suggestions. *Example*: A request from a branch of the U.S. government to sellers regarding the design, implementation, and training of an enterprise reporting system; the selection process is sealed bid and the contract is awarded on March 25th.

2 Noncompetitive Forms of Procurement

1.) Sole Source - Involves using a company that has no competition. Typically the sole source owns a patent or some other type of intellectual right. 2.) Single Source - Involves choosing a preferred vendor rather than accepting bids from competing vendors. The purchasing organization typically uses a single source if it has a preferred vendor or does not have time to go through the full selection process.

A project is typically created to:

1.) Solve a problem 2.) Take advantage of an opportunity 3.) To fulfill a business requirement 4.) Response to market demand 5.) Technological advance 6.) Customer request 7.) Legal requirement

Projects are initiated in response to:

1.) Stakeholder need or request 2.) A legal, regulatory, or social requirement 3.) A business or technological strategy 4.) A product, process, or service that needs to be created, enhanced, or corrected

Balancing Conflicting Stakeholder Interests

1.) The reasons for undertaking the project with a focus on the market conditions or business needs and the priority 2.) The requirements defined in the project charter 3.) The project management plan

Goals of a Configuration Management System

1.) To develop a consistent process for the evaluation of changes 2.) To create an environment in which the decision to approve, suspend, modify, or reject a change request is based on it's overall project impact 3.) To establish standards so the decision to approve, suspend, modify, or reject a change request can be clearly communicated in a timely manner to the appropriate stakeholders.

Meeting Rules

1.) When a meeting is scheduled, an agenda should be created and distributed beforehand to give people a chance to review and prepare; this agenda should allocate a portion of time for each topic 2.) All relevant documents should be distributed prior to the meeting 3.) Everyone should review the agenda and prepare for the meeting 4.) During (or before) the meeting, the leader (facilitator) should be established to conduct the meeting and ensure adherence to the agenda; the leader (facilitator) does not always need to be the PM 5.) If the leader/facilitator decides to honor a request to add a non-agenda item to the meeting, the should be added at the end of the meeting or moved to a future meeting. 6.) If the project is a priority and a meeting has been scheduled, functional issues should not delay the meeting.

Change Control Board (CCB)

A change control board is typically used on larger projects, which often involve multiple departments or division of the organization. The function of the board is to review (and approve, suspend, modify, or reject) changes on the project as they relate to the various areas of the represented business.

Change Control System

A change control system is used to assess the impact and consequences of requested changes on the project. An overall change control system considers the impact the requested change will have on all knowledge areas

Change Requests vs. Approved Changes

A change request is a request for change made by a project stakeholder. In situational exam questions, a requested change isn't considered approved unless so stated. An approved change is a request for change that has been approved through the formal change control process.

Plan Procurement Management (Planning Process Group)

A company analyzes its procurement or outsourcing needs. The procurement typically relates to a product, result, or service that the organization is unable to produce or undertake due to a lack of expertise, a lack of access (a patented product), or a lack of capacity.

Uncertainty

A component of risk that denotes the amount of information known (or unknown) about the outcome. The range regarding the possible outcome starts with no knowledge and ends with a high degree of knowledge.

Schedule Management Plan

A component of the project management plan that details the delineation, evolution, monitoring, and control of the schedule. It includes the methods for evolving and maintaining the project schedule model, controlling the duration of releases and iterations, determining degrees of accuracy and metric units, using the the WBS as the framework for the schedule management plan, establishing variance thresholds, and determining performance measurement rules.

Computerized/Monte Carlo

A computerized tool that simulates project outcome to determine factors such as time or cost or number of needed resources. The main advantages are the accuracy of estimates and the "what-if" analysis that can be performed. The main disadvantages are the ramp-up time and cost associated with setting up of the tool.

Rolling Wave Planning

A concept that utilizes the progressive elaboration concept in planning. It defines a low level of detail on the WBS for the immediate work being accomplished while the work to be done in the future is only at a high level of decomposition in the WBS until it is soon-to-be-started.

Share

A contract component that divides any remaining money (typically the difference between the total price and actual seller's costs) between the buyer and the seller. It is normally a negotiated split between the two parties. It is typically different from a traditional incentive fee in that an incentive fee pays compensation based on certain measurable performance metrics that have been established and agreed upon. Refer to example on pg. 507

Pareto Diagram

A cumulative histogram that can be used to determine the most common issues/defects ordered by the frequency of their occurrence. Also depicts a cumulative percentage of issues/defects. Typically reflects the 80/20 rule, which states that, as a general rule, 80% of the problems arise from 20% of the issues/defects.

Identify Stakeholders (Initiating Process Group)

A determination is made regarding which people and organizations impact and/or are impacted by the project.

GERT (Graphical Evaluation Review Technique)

A diagramming technique that uses feedback loops or multiple passes through a diagram as iterations are completed. In the exam, GERT is typically only the correct answer if the question references a technique with a feedback loop.

Team Charter

A document that details team values, agreements, and operational guidelines. It typically includes guidelines for communication and meetings, processes for decision-making and conflict resolution, team values, and team agreements. The charter emphasizes acceptable behavior by team members, especially as it pertains to codes of conduct, communication, decision-making, and meeting etiquette. All team members share a responsibility for ensuring that team charter rules are followed.

Control Chart

A form or run chart, depicts the process output over time. It can be used to track technical performance, schedule performance, or cost performance. The primary difference between a run chart and a control chart is that the control chart has defined control and specification limits, whereas the run chart may not. The upper and lower control limits represent the control points of the process. The process is under control if the data falls between the lower and upper control limits. This applies in all but on case: the Seven Run Rule. Typically, the upper control limit (UCL) and lower control limit (LCL) are set at +/- 3 sigma. The upper and lower tolerances, sometimes called upper (USL) and lower (LSL) specification (spec) limits, are customer established and can be inside or outside the control limits. The process outcome is acceptable if the data falls between the lower and upper tolerance limits. The mean is the middle of the road, the control limits are the stripes on the outer edge of the road, and the tolerance limits are the actual edges of the road.

Variable Sampling

A generic characteristic, such as capacity or height, measured during the Control Quality process.

S Curve

A graphical representation of earned value management. The classic S Curve shows the interaction between scope, cost, and time over the life of the project.

Tornado Diagram

A graphical representation of project risks and their potential impact as determined by a sensitivity analysis. Sensitivity analysis determines risk impact by considering how much the uncertainty of each project element impacts a particular project objective when the other elements remain at their baseline values.

Composite Organization

A hybrid structure that can have characteristics of a matrix, projectized, and functional environment. Characteristics: 1.) A flexible configuration for performing projects in a company 2.) Project management or leadership which can vary from organization to organization

Delegation

A key tool a project manager can use to assign work (and the respective authority and responsibility) to team members for conducting activities on the project. When used effectively, delegation evolves beyond merely assigning work to giving team members the responsibility and authority to complete assigned work accurately and in a timely manner. In return, the project manager expects accountability and reliability form those team members. Effective delegation typically results in a cooperative and engaged team. Effective delegation requires effective communication. Delegated work must be clearly defined in terms of the work description, the expected results, and the evaluation of progress. The team is expected to provide feedback regarding delegated work. A traditional role of the project manager has been to focus on *planning, directing, organizing* and related activities. Given the evolving project environment, these activities should be considered for delegation where applicable so that the project manager can focus on *coaching, motivating, evolving team performance, and managing expectations of key stakeholders.*

Chart of Accounts

A list of accounts used by the organization's accounting and/or project management system to establish and track budgets associated with work packages, projects, and other efforts that require defining a cost baseline and tracking actual cost against it. The Determine Budget process uses the chart of accounts to show where funds are allocated for the estimated work.

Earned Value (EV)

A measurement of the project's progress and the basis for cost analysis, including any work started ahead of schedule. BAC or PV multiplied by percentage complete.

Monte Carlo

A mock-up technique that uses software to simulate project characteristics in order to determine the possible outcome. While the simulation is typically applied to scheduling in order to determine the necessary schedule reserve, it can be used in other areas of the project.

Contract

A mutually binding legal agreement between buyer and seller. Other names could be purchase order (PO), subcontract, or agreement

Code of Accounts

A number system that is applied to identify individual pieces of work in the WBS. Ex: 2.5, 2.6, 2.6.1

Overlapping Relationship

A phase can begin even if its predecessor phase has not been completed. Typically used if a compression technique, such as fast tracking, is applied. While the overall project could be completed sooner, overlapping phases may increase risk and rework may be required if a phase is started prior to obtaining accurate information from the prior phase

Sequential Relationship

A phase only begins after its predecessor phase has been completed

Planning Package

A piece of the WBS above the work package. It is used to plan work that has been scoped but lacks sufficient work package level details.

Mutual Exclusivity

A principal that states that selecting an attribute for a single instance excludes all other attribute choices. For instance, if the capacity of the elevator is 500 pounds, the capacity of that same elevator cannot also be 100 pounds. http://pmzilla.com/difference-bw-mutual-exclusivity-and-statistical-independence

Cost of Conformance

A proactive approach that typically requires paying for quality upfront by investing in initiatives that plan quality into the work. Examples are additional planning, testing throughout development, and providing quality training to the team. Typically has a positive effect on team morale, customer perception, and product cost.

Project Coordinator

A project coordinator is put into place if the organizational structure doesn't support a full-scale project management environment or the project manager needs additional support. A project coordinator acts as a communications link to senior management and has some limited decision-making abilities

Risk Register

A project document created during the risk planning processes. It evolves as the risk management processes and the project evolve, and it contains the following: - Risks - Triggers - Probability (Likelihood) and Impact ($) from risk analysis - Planned Responses - Risk Owners

Cost of Nonconformance

A reactive approach that typically requires paying for quality after the work is complete by investing in rework. Examples are costs associated with rework in terms of salaries and materials. Typically has a negative impact on team morale, customer perception, and product cost in the form of excessive inventory, waste, and warranty support.

Schedule Baseline

A specific version of the project schedule that is selected and approved by the project management team as the baseline and includes baseline start and finish dates.

Earned Value Management (EVM)

A technique for measuring the progress of a project by looking at its scope, schedule, and cost in an integrated manner.

Fixed Formula Progress Reporting (Earned Value Rules)

A technique that creates a consistent status report for project activities. Instead of having a "gut feel" for the percentage of completion form each person on a project. This formula can be used for earned value management (EVM) or other less evolved means of capturing the schedule status. Typically, it is used on shorter duration activities or those generally not exceeding two reporting periods. Ex: 25%/75%. When an activity starts, it receives the initial percentage 25%. It receives the remaining percentage 75% only when the activity is complete.

Flowcharts

A technique used in Plan Quality Management to map the flow of a process or a technique. Flowcharting can improve quality by increasing the stability and repeatability of a process. Is a good tool for defining, in proper order, the steps that need to be completed to achieve a particular goal or output.

Cost Variance (CV)

A variance indicator that denotes the difference between the value of the work completed and the cost of the work completed. If the result is 0, the project is on track. If the result is greater than 0, the project is under budget. If the result is less than 0, the project is over budget. EV - AC

Schedule Variance (SV)

A variance indicator that denotes the difference between the value of the work completed and the value of the work that should have been completed. If the result is 0, the project is on track. If the result is greater than 0, the project is ahead of schedule. If the result is less than 0, the project is behind schedule. EV - PV

Risk Response Strategies

Aid for memorization is *SEEE* the *ATM* Risk Response Strategies for Positive Risks or Opportunities: - Share: involves splitting the benefit (and responsibility) of the risk with a third party to maximize an opportunity (or minimize a threat) - Exploit: involves ensuring the success of the opportunity or project. Ex: the new project had the best resources assigned to maximize the probability of success - Enhance: takes steps to improve the size or capacity of the risk event (opportunity) by determining the key components of the risk and maximizing those components. Ex: with sales exceeding projections, the organization hired more sales people to ensure that as many customers as possible know of their products - Escalate: involves entrusting the opportunity, which is outside the project scope, to program management, portfolio management, or another relevant area of the organization. Ex: the manager of the project to build a revolutionary new habitat for the zoo's big cats escalated the affiliated funding campaign to the program manager. Risk Response Strategies for Negative Risks or Threats: - Avoid: involves modifying the plan so that risk doesn't have to be considered. - Transfer: reassigns risk exposure to another party. Not all risk is necessarily eliminated and additional risk might be crated. Ex: hiring an outside organization to produce a product component rather than building the component or buying insurance against the risk - Mitigate: involves minimizing the negative characteristics of the risk. Ex: eliminating outside sources and doing work internally mitigates the risk of the vendor failing to produce project deliverables in a timely manner. Risk Response Strategies for both Positive and Negative Risk: - Acceptance: involves tolerating the risk. It is a valid option if there are no other options available. Ex: determining that, if a union goes on strike, the project will have to be delayed until the strike is settled. Contingent Response Strategy: - Contingent Response Strategy: involves defining responses that will only be enacted if triggered by predefined events, such as a change in project conditions or the need to accommodate worst-case situations. Ex: the team developed a contingency plan to add staff to the project if the important development milestone was missed.

Estimate Activity Resources (Planning Process Group)

All of the resources required for the project are determined. The amount and type of personnel, material, and equipment should be carefully examined so the results of this process are as accurate as possible.

Payback Period

Amount of time needed to earn back the original investment. If the payback period is the priority, select the project with the shortest payback period.`

Present Value (PV)

Amount that must be invested today to realize an expected value in the future. FV = Future Value R = Interest Rate N = Number of Periods

Work-Around

An action taken when the risk response(s) and any backup plans don't work

Heuristic

An aid to problem solving or learning that may not be perfect, but will serve to meet immediate goals. For example, to quickly determine if $100 is sufficient to pay for 5 items, round and approximate to the nearest $10 increment. Instead of trying to add $12.13, $19.99, $5.76, $3.47, and $10.42, add $10, $20, $10, $10, and $10. Without rounding and approximation, the answer is $51.77. With rounding and approximation, the answer is $60.00

Benefit Cost Ratio (BCR)

An analysis technique that compares the benefit to the cost of the initiative. For example, if a project has a BCR of less than one (0.75:1), each dollar invested only results in a value (benefit) of 75 cents and you would not approve that project. Select the largest ratio. To calculate BCR, divide revenue by cost and apply the quotient to 1. $200,000 in revenue and $50,000 in cost have a BCR of 4:1.

Risk Management Plan

An effective risk management plan addresses the methodologies that will be used to manage risk, as well as the risk-related roles and responsibilities, budget estimates for the activities of risk-related resources, guidelines for using contingency and management reserves, and the impact of risk activities on the project schedule.

Schedule Performance Index (SPI)

An efficiency indicator that denotes the amount of work done at a single point in time. If the result is 1.0, the amount of work done on the project at a single point in time is on track. If the result is greater than 1.0, the amount of work done on the project at a single point in time is better than expected. If the result is less than 1.0, the amount of work done on the project at a single point in time is less than expected. EV / PV

To-complete Performance Index (TCPI)

An efficiency indicator that denotes the efficiency needed from the remaining resources to meet the cost goals of the project and finish the project on budget. (BAC - EV) / (BAC - AC)

Cost Performance Index (CPI)

An efficiency indicator that denotes the return on each dollar spent at a single point in time. If the result is 1.0, the return on the project at a single point in time is on track. If the result is greater than 1.0, the return on the project at a single point in time is under budget. If the result is less than 1.0, the return on the project at a single point in time is over budget. EV / AC

Risk

An event that can impact the project positively or negatively and has some degree of uncertainty.

Standard Terms and Conditions

Are typically common (non-negotiable) contract items. They can be subject to negotiation, but generally the company's legal department imposes a tight range of parameters. The range can cover payment options, intellectual property rights, and the ability to subcontract among other parameters

ISO 9000 (International Organization for Standardization)

Associated with companies that wish to document and adhere to their processes. While quality improvement is not always a result of this standard, the repeatability associated with it typically shows a positive benefit. - Documenting what is done - Doing what is documented - Documenting any variance (from the normal processes)

Project Scope

Associated with the work required to create the project results and is weighted against the scope management plan.

Referent Power

Comes from an attitude or presence that a person has and the corresponding type of influence this person has on the team. It could also come from someone who aligns with other people in a powerful position at the company or on the team. Example 1: I want to stay late and finish this like I promised the project manager. Because he has always been good to me and the rest of the team, I don't want to let him down. Example 2: We must do what the project manager asks. She has lunch with our vice president every week and they play golf together a lot. If we let her down, he will definitely hear about it.

Bottom-Up

Compared to the analogous estimate, the main advantage of the bottom-up method is detail and accuracy. The disadvantage is that it can take significant time to create and the team may pad the estimate to compensate for unknowns. Ex: The project manager and the team work together to create a complete estimate from the bottom (activity level) up and roll it up to the total estimate.

Requirements Management Plan

Component of the project management plan that details the evaluation, documentation, and administration of project requirements.

Resource Management Plan

Component of the project management plan that outlines the methods for classifying, assigning, managing, and releasing resources. The plan should include: - Methods for the identification and quantification of the team and required physical resources - Plans for acquisition of the project team and required physical resources Documentation of roles and responsibilities with an emphasis on role definition, role authorities, role responsibilities, and role competencies - Project organization charts that define team members and their reporting hierarchy - Plans for project team resource management, including details regarding the definition, staffing, management, control, and release of team members - A training road map for members of the team - A development road map for members of the team - Strategies for management of required physical resources during the project.

Probability Distributions

Continuous probability distributions graphically represent uncertainty in schedule and cost values and are used extensively in modeling and simulation. The three most common types of probability distribution functions are normal distribution, beta distribution, and triangular distribution. Normal Distribution - typically used for statistical or scientific computing Beta Distribution - used to model events that must take place within an interval that has a minimum and maximum value. Beta distribution, along with triangular distribution, is commonly used with PERT and CPM Triangular Distribution - most common distribution used in business modeling because its parameters (minimum, most likely, and maximum) are understood even by those unfamiliar with risk analysis

Scope Management Plan

Contributes to the management and definition of the project by defining how the scope of the project will be managed, including the creation of the requirements, scope statement, WBS, and WBS dictionary, as well as the validation and control of the project scope

Testing

Control Quality tests the process output. There are many items to consider when testing. Typically, these items are addressed in Plan Quality Management, but applied in Control Quality.

Variable Cost

Cost that fluctuates with project activity. The cost of tile for a project to build twenty designer homes fluctuates depending on the materials selected by the homebuyers.

Fixed Cost

Cost that is consistent throughout the project life cycle regardless of project activity. The leasing of office space for a software project is a fixed cost.

Direct Cost

Cost that is directly attributable to the project and is incurred as a result of project work. An example is the salaries of coders on a software project.

Indirect Cost

Cost that is not directly attributable to the project, but often allocated to the project. Such a cost could be security for the building where the work of the project is performed.

Schedule Compression Techniques

Crashing - the application of additional resources to the critical path items. Usually increases cost, minimal risk exposure, and requires more people than originally planned. Fast Tracking - doing activities in parallel that are normally in sequence. Could potentially increase cost from potential rework, additional risk exposure due to possible rework, and can require additional communication to coordinate activities.

Procurement Strategy

Created after the make-or-buy analysis is complete and the decision to acquire the product, service, or result from outside of the project has been made. The strategy addresses delivery methods, contract payment types, and the advancement of the procurement through its phases.

Work Performance Information

Created as a result of the monitoring and/or controlling processes. Once analyzed, the analysis results are presented as a representation of the state of the project in areas such as the state of deliverables, the status of change requests, and forecasts related to schedule and cost. Such information is the basis of reports used to fulfill stakeholder communication requirements

Zero Defects

Created by Philip Crosby, goal is to meet quality requirements the first time and every time. It emphasizes prevention over inspection (prevent problems rather than discover them during inspections that occur at the end of the process when correction is costlier in terms of time and cost.)

Contract File

Created during Conduct Procurement and Control Procurements. It contains documentation associated with the contract, approved contract changes, and formal acceptance.

Project Management Plan

Cumulative document that contains all of the documents used In the management approach to the project. It describes the steps associated with executing, monitoring and controlling, and closing the project and can be at a summary or detailed level.

Benefits Management Plan

Describes the alignment of the project with organizational business goals, the targeted benefits, and the manner in which the benefits are transitioned and measured. The benefits management plan and the project management plan include a description of business value and the metrics that will be used to measure business value. Business value can be used to measure project success. Project manager is not responsible for updating or modifying the benefits management plan since it is a business document.

Business Case

Describes the business need and contains a cost-benefit analysis, is used to justify the creation of the project and is the basis for the project charter. At the end of the project, the business case can be used to measure project success in terms of achieving project objectives

Quality

Designed and constructed for dependability and efficiency. It functions in accordance with customer requirements, is reasonably sturdy, and if necessary, has clear and effective instructions. Any product that does not do this is lacking in quality.

Resource Breakdown Structure

Displays the breakdown by resource type across an organization. This breakdown makes it possible to distinguish where resources are being used regardless of their organizational group or division.

Dependencies

During the creation of the project schedule, dependencies must be considered. They may be flexible, causing no real impact, or inflexible, providing no options except work-arounds 1.) Mandatory (Hard Logic) - A dependency that must be completed before subsequent items can start ex: you must have the roof on before you can begin to apply shingles to it 2.) Discretionary (Soft Logic) - A dependency that should be completed but is not absolutely required to be completed before subsequent items can start ex: You prefer to, but do not absolutely have to, finish system testing before beginning user acceptance testing 3.) Internal - A mandatory or discretionary dependency that originates from within the project or company ex: You have to wait for the power supply to complete the testing of the computer you are designing. 4.) External - A mandatory or discretionary dependency that originates from an entity external to the project ream or organization. ex: The city inspector must approve any construction before issuing a certificate of occupancy so the tenant can move in.

Control Resources (Monitoring and Controlling Process Group)

Ensures that the physical resources, which have been assigned and allocated to the project, are available as planned. The team also performs any corrective action required as a result of monitoring actual utilization of resources versus planned utilization of resources and ensure that resources are available at the right time, in the right place, and are released when no longer required.

Perform Integrated Change Control (Monitoring and Controlling Process Group)

Entails the review of all change requests; the approval, rejection, modification, or suspension of each request; the management of approved changes; and the communication of the decisions. Change requests can be made by an stakeholder and can occur at anytime throughout the life of the project. Before baselines are established, changes are not required to be subject to the change control process.

Estimate Costs (Planning Process Group)

Focus is on establishing the costs of either the work packages or the activities in order to establish the total project cost. Cost Estimating Methods: 1.) Analogous (comparison to a previous, similar project) 2.) Parametric (parameters for building the estimate) 3.) Bottom-up (estimates of individual items that are added together to establish a total cost estimate) 4.) Computerized tools

Sequence Activities (Planning Process Group)

Focus is on the order of the activities: the arrangement of activities in the most efficient and effective order.

Manage Stakeholder Engagement (Executing Process Group)

Focuses on communicating with stakeholders, meeting their expectations, addressing their problems in a timely manner, and encouraging their commitment to the project. This process enables an increased probability of success by ensuring that stakeholders are aware of project benefits and risks.

Functional Organization

Focuses on operations where people of a similar skill set are grouped together and managed by someone with that same skill set. Sometimes called a silo organizational structure. Characteristics: 1.) A primary focus on operations and daily repetitive activties 2.) A secondary focus on projects 3.) A primary interest in full-time operations personnel 4.) A secondary interest in full-time project personnel

Team Development Life Cycle

Form - refers to the creation of the team, when people on the team are put together per the project organizational planning needs. Storm - refers to the chaos that occurs as people start to get accustomed to working together Norm - refers to the point in time when team behavior starts to normalize and team members are accustomed to each other Perform - refers to the activity that transpires as members work as a team instead of individuals. The group should be working at an optimal level in this phase. Adjourn - as the team work is completed, the team is disbanded and team members move to new work or assignments

Work Authorization System

Formal or informal system used in project management to ensure that work is done as planned. It ensures that the right work is done, in the right order, at the right time, by the right people. The system can help control cost. Can also help to minimize or eliminate gold plating.

Work Breakdown Structure (WBS)

Generally created by the project manager and the team doing the work, the WBS describes the work breakdown and restricts its content to listing only the project work. When completed, the WBS should encompass all of the work of the project. Generally, a heuristic (rule of thumb) is used to determine how the work is broken down and the level of decomposition required for the work packages. Components of the WBS: 1.) Control accounts 2.) Planning packages 3.) Work packages (lowest level of the WBS) 4.) Activity list 5.) Milestone list

Herzberg's Motivational Theory

Herzberg determined that workplace success is predicated on hygiene and motivating agents. Hygiene is related to factors whose absence create job dissatisfaction. Examples include a safe and clean work environment, organizational policies that are flexible and clear, reasonable pay, and a stable job. Motivating agents is related to factors whose presence creates job satisfaction. Examples include a sense of achievement, growth opportunities, responsibility, recognition, and meaningful work.

Six Sigma

It involves setting a very high standard of 6 sigma for the products or processes that the company produces. States that at least 99.9997% of everything created, or processes executed, are virtually error-free.

Project Scope Statement

Key output of the Define Scope process group. A document that develops and helps attain buy-in on a common interpretation of the project scope. It can describe *what is, as well as what is not, included in the project.* It typically includes the following: 1.) Product scope description 2.) Product acceptance criteria 3.) Project deliverables 4.) Project exclusions 5.) Project constraints & assumptions Defines the project by describing its scope, detailed deliverable and the process to create those deliverables, product acceptance criteria, exclusions, assumptions, and constraints. The statement provides all stakeholders with a common understanding of the scope of the project and enable the project team to effectively engage in detailed planning, guides the team's work during execution, and defines if change request or additional work is within the scope of the project. The scope statement differs from the project charter in that the charter is high-level and the scope statement is detailed.

Change Log

Key to execution of the project management plan. The log allows the team to ensure that it has the most current information on the state of project change requests.

Qualified Sellers List

List that a buyer can use as a screening mechanism in the procurement process. It allows a buyer to consider only sellers of services that have met predefined conditions. This list can save time by eliminating the preliminary screening process and allowing buyers to make their selection from vendors that have already met the predefined qualifications.

Create WBS ( Planning Process Group)

Major deliverables are divided into smaller components that can be easily estimated (schedule and cost), managed, and controlled. These components are ultimately rolled into the work breakdown structure. *The lowest level of the WBS is the work package. Any subsequent decomposition generally results in the creation of activity lists.*

Make-or-Buy Decisions

Make Decision Qualities: - The buyer owns intellectual property associated with the work and considers doing the work internally in order to maintain control of the information - The buyer has excessive qualified capacity Buy Decision Qualities: - The buyer doesn't possess the skills needed for the work - The buyer doesn't possess the capacity to do the work

Communication Methods

Methods utilized to share information among stakeholders. 1.) Interactive - enables an exchange of information between multiple parties and fosters a common understanding between participants 2.) Push - distributes information but does not ensure that the information was received or understood 3.) Pull - provides information in a centrally accessible location such as the Internet

Communication Channels Formula

N x (N - 1) / 2 Study the packets for more information

Code of Ethics and Professional Conduct

PMI has developed the code to explain what is expected of project managers and other practitioners of project management. The code documents the four values that a consensus of the global project management community deemed most significant and vital to the profession 1.) Responsibility 2.) Respect 3.) Fairness 4.) Honesty

Sigma (σ) (Standard Deviation)

Often used as a quality measure. Formula is (P - O) / 6 where P represents Pessimistic and O represents Optimistic -1σ to +1σ = 68.26% -2σ to +2σ = 95.46% -3σ to +3σ = 99.73% -6σ to +6σ = 99.9997%

Internal Rate of Return (IRR)

Often used in capital budgeting, the interest rate makes the net present value of all cash flow equal to zero. In the case of IRR and project selection, select the project with the highest IRR or percentage

Various Breakdown Structures

Organizational Breakdown Structure (OBS) - shows how the project organization is structured to accomplish project activities Risk Breakdown Structure (RBS) - depicts the risks that can potentially occur during the project, broken down by risk category Resource Breakdown Structure (RBS) - depicts the type of resources used during the project Bill of Materials (BOM) - includes the components, sub-assemblies, and assemblies used to build a product or service

Probability and Impact Matrix

Part of the risk management plan and can be used as the basis for the evaluation of risks in terms of their probability and impact. Typically used during the Perform Qualitative Risk Analysis process. Criteria are established by those associated with the project, including the sponsors, the project manager, and/or team members.

Halo Theory

People make good project managers regardless of background training in project management, simply because they are good in their fields. The theory also implies that people who do not excel in their fields would not make good project managers. This theory is put into practice when someone is promoted to a project manager from a technical or hands-on position and hasn't had the opportunity to receive any project management training. The results are typically negative.

Work Performance Reports

Physical or electronic depictions of work performance information in the form of project documents that help stakeholders make decisions. Examples include status and progress reports, memos, recommendations, and updates.

PMC

Plan Quality, Manage Quality, Control Quality

Manage Communications (Executing Process Group)

Primary focus is to gather information relevant to the creation, distribution, storage, and retrieval, as well as the conclusive disposition, of communications in accordance with the communications management plan. The process is designed to enable timely and productive communications between project stakeholders.

Project Manager Performing Integration

Project Managers have two roles in connection with the performance of project integration. 1.) They ensure the alignment of project objectives and results with those of the business area, program, and portfolio after working with the sponsor to understand strategic objectives 2.) They assume responsibility for persuading everyone on the team to work toward attaining project objectives and focus on project-level essentials - Process Level: PMs determine how often and when to apply the processes selected during project tailoring - Cognitive Level: PMs determine the methodology that will be used to manage the project - Context Level: PMs need to be aware of and understand new technologies and considerations when managing integration

Collect Requirements (Planning Process Group)

Project requirements are created based on an analysis of project stakeholder needs.

Acquire Resources (Executing Process Group)

Project staffing and physical resource needs are satisfied during the Acquire Resources process. The actual resources that will be working on the project are assigned to the project. Factors to consider include cost, ability, experience, availability, and interest of resources.

Plan Resource Management (Planning Process Group)

Project staffing is addressed, including the roles, reporting structure, relationships, and quantity of project participants

Cost Management Plan

Provides guidance for selecting the methods that will be used to establish and modify cost estimates, budget, performance baseline, and control thresholds. It also establishes the appropriate degree of detail that will be applied to the budget.

Status Reports

Provides information on the present overall state of the project. For example, the status report contains data on the project since inception to convey the overall state of the project. The status report is the sum of ALL progress reports.

Progress Reports

Provides information regarding what has been accomplished during a specific time frame. For example, a weekly progress report contains data regarding the most recent week's accomplishments.

Sunk Cost

Represents the cost that has already been spent on a project. Sunk cost is not considered when making future project decisions. If a project has a budget of $175,000 and has already spent $200,000, the $200,000 is not a consideration in deciding if the project should be continued.

Types of Risk

Pure Risk - risk for which insurance can be purchased, thereby transferring the risk for financial benefit to the party accepting the risk. Business Risk - typically uninsurable. It is an event that can occur during the process of doing business. An example of business risk is the forecast of sales over the next six months.

Point of Total Assumption Variables and Calculation

Purpose is to calculate the maximum that a buyer pays in a fixed-price incentive fee (FPIF) contract when taking into consideration the share ratio on cost overruns - Target Cost (TC): the expected cost of the work in the contract - Target Profit (TP): the expected profit of the work in the contract - Profit Rate at Target Cost: the profit margin of the target profit compared to the target cost (target profit/target cost) - Target Price: the total of the target cost and target profit; i.e. the total target value of the contract work barring any cost savings or overruns - Ceiling Price: a percentage of the target cost (TC) that is equal to the maximum total amount the work is expected to cost with any cost overruns being considered - Share Ratio (SR): the ratio that establishes the percentage of cost savings or cost overruns that will be assigned to the buyer and to the seller. - Point of Total Assumption (PTA): the total amount the buyer will pay regardless of cost overruns. - Point of Total Assumption Formula: PTA = [(Ceiling Price - Target Price) / Buyer Share] + Target Cost

Work Performance Data

Raw data generated as a result of project work. Examples include start and finish dates, completion percent for activities, number of defects, and number of change requests.

Lessons Learned Register

Records what worked and what didn't work in relation to the project. The register is also used to monitor existing project knowledge and new project knowledge and to contribute to organizational learning.

Accuracy

Refers to the alignment of a value with its target value. Ex: if the targeted output of a process is 300 milliliters, accuracy is determined by calculating how close the actual output is to the 300 milliliters target.

Grade

Refers to the characteristics of the product, quality refers to the stability or predictability of the product. A high-grade product has high functionality (for instance an automatic nail gun that can be used with 10 kinds of nails and can apply various levels of pressure vs. a low-grade product that can only apply one level of pressure

Precision

Refers to the consistency of the output. If a process has a targeted output of 300 milliliters, precision is determined by calculating the percentage of testes with an output of 300 milliliters in relation to the total number of tests.

Estimate to Complete (ETC)

Represents the amount needed to finish the project based on the current spending efficiency of the project. EAC - AC

Estimate at Completion (EAC)

Represents the current, projected final cost based on the current spending efficiency (CPI). If the CPI is greater than 1, the number will be less than the BAC, therefore, the project will likely finish under budget. If the CPI is less than 1, the number will be greater than the BAC; therefore, the project will likely finish over budget. If the CPI equals 1, the number will be equal to the BAC; therefore, the project will likely finish on budget. BAC / CPI

Risk Owner

Responsible for implementing the response if a risk event occurs

Sponsor

Responsible for providing resources and support for the project. The sponsor may secure financing for the project, create the project charter, be responsible for the success of the project, and/or sign off on project completion. Typically senior management supports the sponsor

Plan Risk Management (Planning Process Group)

Risk management plan is created. The project manager and the team proactively plan the manner in which risks will be identified, ranked, and addressed. The project team uses the organization's risk management policies and procedures as a guide when creating the risk management plan.

Risk Tolerance and Perspective

Risk-Averse: practices risk avoidance. Invariably select the low risk option or the sure thing Risk Seeker: does not fear risk and may embrace it. They are typically early adopters of new products and often take an all or nothing approach to an initiative Risk-Neutral: has a measured attitude toward risk; however, depending on specific circumstance, that attitude can become risk-averse or risk seeking.

Perform Qualitative Risk Analysis (Planning Process Group)

Risks are analyzed for probability and impact. A numeric value can be assigned to specific project parameters to ascertain a total score.

Project Manager in the Control Procurements Area

Role of the PM during Control Procurements is to help ensure successful execution of the contract. PMs typically work with the contract administrator to accomplish a successful execution as the scope, terms, and conditions of the contract are defined and as work results become complete. PMs cannot change the contract, only the contract administrator is authorized to change the contract.

Resource Smoothing

Similar to resource leveling in that it also removes peaks and valleys. The difference is that the focus of resource smoothing is on predefined resource limits rather than merely preventing over-allocation of resources.

Control Procurements and Close Project or Phase

Sequence of closing activities for the project is: 1.) Close out any contracts with outside vendors 2.) Deliver any required reports associated with closure (organizational process assets updates) 3.) Complete any Close Project or Phase activities 4.) Gather and record lessons learned 5.) Complete the archives of any project files (organizational process assets updates) 6.) Release resources for other projects

Variance Reports

Show the difference between what was planned and what actually occurred. For example, a variance report would show any variance between what was done and what should have been done.

Scatter Diagram

Shows a pattern between two variables associated with a process. Purpose is to show any correlation that might exist between the variables. The closer the output represents a diagonal line, the more dependent the variables are. The less the output resembles a diagonal line, the more independent the variables are.

Summary Schedule

Shows an aggregate or rolled up view of the various activities at a summary level. It gives senior management, the project management team, and team members a picture of how long the summary level work packages will take, and in what sequence they will occur.

Earned Value Reports

Shows the state of the schedule, budget, and scope of the project at specific points in time.

Audits

Structured, independent processes conducted to establish that project activities comply with organizational and project policies, processes, and procedures. Quality audits are typically conducted by a team external to the project or organization in order to: - Determine good and best practices - Determine any shortcomings or instances of non-conformity - Share good practices from similar projects - Propose positive help in the improvement of processes in order to increase the team's effectiveness - Emphasize audit contributions in the organizational lessons learned repository.

Senior Management

Supports the sponsor, the project charter, and ultimately the project. They also assist with the prioritization of items associated with other projects and coordinating with other groups or activities that can interfere with the project

Resource Leveling

The act of softening the peaks and valleys for a resource. As the schedule is created, resources are assigned often resulting in a pattern of peaks and valleys. These peaks and valleys represent resources that can be applied for example 12 hours one day, but only four hours the next.

Residual Risk

The amount of risk remaining after a risk response (from the risk response plan) has been implemented.

Project Slack

The amount of time something can be delayed without delaying the published finish date. Most scheduling software will calculate these dates for you.

Slack (Float)

The amount of time that an activity can slip or be delayed without delaying the finish date of the project. Typically, slack is calculated using a forward and backward pass. If an activity has no slack, it is on the critical path; therefore, if it slips, it pushes out the finish date. Negative or positive slack can also exist, extending or contracting the actual finish date of the project. If a project finishes two weeks early, there are two weeks of positive slack. If the project finishes two weeks late, there are two weeks of negative slack.

Baseline

The approved version of a work product. The baseline value is the value against which the work results are compared. There can be a baseline value for any item on the project that will be measured. Scope, schedule, cost, and quality are typically baselined.

Point of Total Assumption

The calculation for the point of total assumption establishes the point at which the seller is responsible for all cost overruns associated with a fixed-price incentive fee (FPIF) contract. Contrary to what fixed-price may imply, a contract of this sort can be negotiated so that the buyer agrees to share in cost overruns or under-runs. This calculation is typically used in government or defense-type contracts.

Actual Cost (AC)

The cost of the work that has been completed at a specific point in time, including any work started ahead of schedule. Total all the project costs at a specific point in time.

Develop Schedule (Planning Process Group)

The creation of activity lists, the sequencing of activities, and the estimation of activity durations all come together to create the project schedule.

Procurement Documents

The documents associated with the procurement process lay the foundation for vendor relationships. They apply to the selected vendors and those who are considering the work. An ideal procurement document answers the questions of the potential vendors and allows them to make a well-planned bid, creating a win/win relationship with the vendor.

Critical Path

The longest path on the project network diagram. Typically has no slack (float), yet the duration can change as the project evolves. The greatest project risk normally occurs on the critical path. A project has negative slack if it is behind schedule and a new finish date has not been authorized. A project can have multiple critical paths, but that would increase the risk of schedule slippage.

Configuration Management

The process used to control product features and details through change control. It standardizes the change process associated with the project baseline. To ensure that the project conforms to requirements and creates only what it's intended to create, it defines and locks down details associated with the project scope.

Contract Administrator

The manager of the contract. Main responsibility is to protect the integrity and purpose of the contract.

Estimate Activity Durations (Planning Process Group)

The number of workdays (or hours) to complete each activity is estimated. That estimation then rolls up to create summary (high-level) estimates.

Scope of Work

The part of the contract that describes what the seller will do for the buyer. When the scope of work is complete, the main work of the contract is complete and closing can begin.

Gold Plating

The practice of providing more than what the customer requested.

Future Value (FV)

Value of something at a specific point in the future. PV = Present Value R = Interest Rate N = Number of Periods

Project Management System

The project management system is a set of procedures, tools and techniques, processes, and methodologies used to manage projects

Plan Communications Management (Planning Process Group)

The project manager *determines the communication needs of all the stakeholders.* Key criteria is the information required by each stakeholder, when it is required, and the format in which it is required. The criteria is then entered into the communications management plan to show the communication requirements of the project stakeholders.

Statistical Independence

The state in which the outcomes of processes are separate from one another. Example, buying a lottery ticket last week doesn't increase the odds of winning the lottery this week.

Risk Reviews

The state of each identified risk is assessed and any new risks are identified. Identified risk are assessed for occurrence and any change to ranking, characteristics, probabilities, and impact.

Planned Value (PV)

The value of the work that should have been completed at a specific point in time, excluding any work started ahead of schedule. Total the value of each project activity scheduled for completion at a specific point in time.

Penalty Power

The worst form of power to use. Example: If you don't complete the work as planned, I will make sure that you don't get your bonus.

McGregor's Theory X and Y

Theory X describes an authoritarian management style. Managers that employ this style typically use both punishment and reward on a regular basis to motivate employees. Theory Y describes a participative management style. Managers that employ this style motivate employees by providing opportunities fro them to grow through responsibility, develop their skills, and contribute their ideas.

Communication Model

Three main components: 1.) Sender 2.) Message 3.) Receiver The medium is another component to consider because it sets the format of the message and can impact communications positively or negatively. Given the global nature of projects and diversity of people involved in projects today, breaks in the model are not uncommon. The key responsibility of the communication sender is to correctly encode (communicate) the message to the communication receiver(s) so that they can correctly decode (understand) it. Study pg. 400

Quality Reports

Typically used to meet quality expectations for the project, can be qualitative, numerical, or graphic. The information contained in the reports may include: - Quality management issues escalated by the team - Recommendations for corrective actions - Recommendations for the improvement of processes, the product, and the project - Summary of findings from the Control Quality process

Precedence Diagramming Method (PDM) / Activity-on-Node (AON)

Typically used with modern project management scheduling software. This method depicts each activity in a box (node) and connects the activities by arrows. Does not allow dummies. Predecessor Types: Finish-to-start Start-to-finish Finish-to-finish Start-to-finish

Triple Constraint

Unless otherwise stated, all three constraints are of equal importance. Achievement of the scope, schedule, and cost goals results in achieving quality.

Project Management Information Systems

Used for communication and information distribution on the project. It is not necessarily a high tech system, but is often a mixture of technical and non-technical tools.

Net Present Value (NPV)

Used in capital budgeting, is calculated by subtracting the present value of cash inflows form the present value of cash outflows. NPV compares the value of a dollar today versus the value of that same dollar in the future, after taking inflation and discount rate into account. Example: If Project A has an NPV of $150,000 and 6 months and Project B has an NPV of $295,000 and one year, select Project B because it has the larger NPV and the the years are already factored into the dollar amount.

Risk Breakdown Structure (RBS)

Used to break down project risks. Typical risk categories can include internal, external, technological, and organizational

Stakeholder Engagement Assessment Matrix

Used to compare the current and desired level of stakeholder engagement. The matrix helps focus the team on stakeholder interaction. As the project evolves, the objective is to have the C (current) and D (desired) in the same cell for each stakeholder.

Plan Cost Management (Planning Process Group)

Used to create the cost management plan.

6.1 Plan Schedule Management (Planning Process Group)

Used to create the schedule management plan, which can be formal or informal and provides guidance for creating an appropriately detailed schedule, establishing control thresholds, and updating/modifying the schedule as necessary

The Five WHYs

Used to determine the root cause of a quality defect. When a quality defect is discovered, ask "Why?" No matter what the answer is, ask "Why?" again. Repeat this as needed until you discover the defect's root cause, rather than uncovering a symptom. Typically, five Whys are needed to determine the root cause.

Predecessors

Used to establish the sequencing of activities. 1.) Finish-to-start (FS): indicates that Activity A must be completed before Activity B begins. 2.) Finish-to-finish (FF): indicates that Activity B cannot finish until Activity A is finished. This predecessor is typically used when multiple activities must finish at the same time. 3.) Start-to-start (SS): indicates that Activity B can start when Activity A starts. This predecessor is used when multiple activities can start simultaneously. 4.) Start-to-finish (SF): indicates that Activity A must start before Activity B finishes. Typically used in situations where a new system must start before an existing system is shut down. Considered unusual because it is so seldom used.

Moral or Ethical Power

Uses a moral or ethical perspective related to personal values during the negotiation process. This approach typically results in a win-win negotiation result rather than a win-lose negotiation result.

Commitment Power

Uses commitment via alliances and partnerships to tackle challenges to the project as they arise. It has a potential connection with referent power.

Planning Power

Uses preparation followed by negotiation

Reward Power

Usually the best form of power to use. Example: If you complete your work on the project ahead of schedule, we will send you to that training class you want to attend.

Critical Path Method (CPM)

Utilizes a forward pass to establish the earliest start (ES) and finish (EF) dates for activities and a backward pass to establish the latest start (LS) and finish (LF) date for activities. Any activity on the critical path typically has zero slack (float), but there can be negative slack (float) if the project is behind schedule.

Standard Depreciation

You must know: - The initial value or purchase price of the item being depreciated - The scrap value of the item being depreciated The depreciation timeframe - The depreciation timeframe You have a $10,000 copier that has a 4 year depreciation schedule with a scrap value of $2,000. $10,000 - $2,000 = $8,000 $8,000 / 4 = $2,000 annual depreciation