PMP Exam

to-complete performance index (TCPI)

(BAC - EV) / (BAC - AC). results greater than one are more difficult to complete. OR (BAC - EV) / EAC - AC) results greater than one are more difficult to complete.

even distribution

50 percent chance a project will be completed early and a 50 percent chance it will be completed late. no date is more likely than another, so there is no "most likely" completion date

50-50 rule

50% of the earned value is credited when the earned value activity begins. the remainder is credited when all the work is done. prevents inaccurate reporting that occurs when all the value is reported as soon as the activity begins

Juran and Demming

85-95% of the quality problems that occur in organizations are from processes controlled by upper management

VAC (Value at completion)

BAC - EAC

Professional responsibility Task 4

Balance stakeholders' interests by recommending approaches that strive for fair resolution in order to satisfy competing needs and objectives.

two process to do when ending a project

Close the Project/Phase and Close Procurements

Professional responsibility Task 2

Contribute to the project management knowledge base by sharing lessons learned, best practices, research, etc with appropriate communities in order to improve the quality of project management services, build the capabilities of colleagues, and advance the profession.

the four EVM forecasting formulas for EAC

EAC = AC + bottom-up ETC (most common) or EAC = AC + BAC - EV or EAC = BAC / cumulative CPI or EAC = AC + [(BAC - EV) / (cumulative CPI * cumulative SPI)

SV (schedule variance)

EV - PV. where you are relative to where you planned to be for the period

Professional responsibility Task 3

Enhance individual competence by increasing and applying professional knowledge to improve services.

Professional responsibility Task 1

Ensure individual integrity and professionalism by adhering to legal requirements and content standards in order to protect the community and all stakeholders.

four activities dependencies/logical relationships

FS, FF, SS, SF

compound interest formula

FV = PV (1 + I)^n

present value of money

FV = PV + (PV x I)

Ethics Code (Example 4)

Fairness is our duty to make decisions and act impartially and objectively.

five ways to resolve conflict

Forcing/directing (forcing the other to agree because of authority one has); smoothing/accommodating (making the differences seem less important. it is temporary); compromise/reconcile (each gives something up, fastest way); problem solving/collaborating (extensive work on the disagreement. most effective); withdrawal/avoid (one side retires. it is temporary)

the three key components of a process

Inputs, Tools/Techniques, Outputs

the ten knowledge areas

Integration Mgmt, Scope Mgmt, Time Mgmt, Cost Mgmt, Project Quality Mgmt, Human Resources Mgmt, Communications Mgmt, Risk Mgmt, Procurement Mgmt

Professional responsibility Task 5

Interact with team and stakeholders in a professional and cooperative manner by respecting personal, ethnic, and cultural differences in order to ensure a collaborative project management environment.

Mathematical models for the constrained optimization method of project selection

Linear, integer, dynamic, and multi-objective programming

Approaches that can be used with the benefit measurement method of project selection

Murder board, peer review, scoring models, economic models

probability of two events that are not mutually exclusive

P (A or B) = P (A) + P (B) - P (A and B)

Shewhart and Demming Cycle

PDCA = Plan, Do, Check, Act

Theory Z (William Ouchi)

Places emphasis on the well-being of employees, both on and off the job, encourages steady employment, and increases employee loyalty and productivity

four methods for displaying stakeholder information

Power/Interest grid. these examine the power, interest, authority, and influence of stakeholders

the two EVM performance index formulas

SPI = EV / PV or CPI = EV / AC

the two EVM variance formulas

SV = EV - PV or CV = EV - AC

the two to-complete performance index formulas

TCPI based on the BAC = (BAC - EV) / (BAC - AC) or TCPI based on the EAC = (BAC - EV) / (EAC - AC)

Define Scope process

Tools and Techniques include: expert judgment, product analysis, alternatives generation, facilitated workshops

Manage Communications process

Tools and techniques include: communication technology, communication models, communication methods, information management system, and performance reporting

Theory X and Theory Y managers (McGregor)

Type X managers think all people are lazy (or motivated only by money and status) and need to be threatened into working. Type Y managers believe people do a good job for its own sake and they manage through participation and information sharing. Theory Z is about the company taking care of the whole individual to breed loyalty to the company.

Ethics Code (Example 3)

We inform ourselves about the norms and customs or others and avoid engaging in behaviors they might consider disrespectful.

Ethics Code (Example 1)

We protect proprietary or confidential information that has been entrusted to us.

Ethics Code (Example 2)

We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.

Ethics Code (Example 5)

When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed.

schedule network analysis

a Develop Schedule process that generates the project schedule by using the schedule model and other techniques to help produce the schedule

composite organization

a blend of functional, matrix, and projectized. functional manager is generally responsible for employee skill improvement and seeing that people are assigned where they can be used most effectively. used because of pressure to share resources

control estimate

a bottom-up estimate that is accurate from -10% to +15%. it is based on the statistical central limit theorem. the more details we have, the more accurate the sum of those details will be because some will be overestimated and some under.

Nominal group technique

a brainstorming technique in which everyone writes down their ideas and the moderator creates a master list. then all the ideas are ranked by the group

force majeure

a catastrophic risk

configuration management system

a collection of formally documented procedures for maintaining the functional and physical characteristics of artifacts associate with a project. change control system is a subset of this

war room

a common meeting area for project members set aside to help achieve co-location

internal rate of return on investment

a comparison of the net present value of a project at the end of its useful life to the net present value of the risk free investment. risk free investments (like US Treasury bonds) are generally desirable only when interest rates are very high

activity

a component of work required to move from one event to the next in a project

cost plus incentive fee contract (CPIF)

a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) and the seller earns its profit if it meets defined performance criteria. least predictable of all types of contracts because of both variable cost of work and variable incentive

cost plus fixed fee contract (CPFF)

a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) plus a fixed amount of profit (fee). the fee is the profit the company makes. little incentive for the seller to control costs

cost plus award fee contract (CPAF)

a cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (defined by the contract) plus a fixed amount of profit (fee). the fee is the profit the company makes. performance awards defined by any number of criteria provide an incentive for the seller to control costs

Work Breakdown Structure (WBS)

a deliverable-oriented grouping of project components that organizes and defines the total scope of a project. decomposed into work packages, which are the lowest level of detail the project manager handles, even though those can be broken own into activities and tasks. includes work done by contractors and those not on the project team.

statement of work

a description of what the project is about and what will be delivered

internal rate of return (IRR)

a discount rate that makes the NPV equal zero. projects with a high IRR are likely to be chosen

Environmental and Organizational Factors

a document that addresses factors surrounding the project and the marketplace. identifies strengths and weaknesses, statement of company's management information systems, addresses stakeholder and industry risk tolerance, and addresses personnel administration

project sponsor

a executive withing the organization who has authority over the project, from allocating resources to making key decisions

fixed price incentive fee contract (FPIF)

a fixed price contract where the buyer pays the seller a set amount (defined by the contract) and the seller can earn an additional amount if the seller meets defined performance criteria. generally a penalty for delivering late

fixed price economic price adjustment contract (FP-EPA)

a fixed price contract where the buyer pays the seller a set amount (defined by the contract), but it allows for adjustments due to the economy, such as inflation. seller takes most of the risk

firm fixed price contract (FFP)

a fixed price contract where the buyer pays the seller a set amount (defined by the contract), regardless of the seller's costs. seller takes all the risk

judgmental method

a forecasting method that uses opinions, intuition, and estimates to predict future outcomes

rolling wave planning

a form of progressive elaboration where near-term work is planned in detail and future work is planned at a higher level

change control board (CCB)

a formally constituted group of stakeholders responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, with all decisions and recommendations being recorded. requires all change requests in writing, describes how change requests are managed, and requires updates to management plans. other forms of this are technical assessment board (TAB), technical review board (TRB), and engineering review board (ERB)

bubble-chart format

a format for displaying a work breakdown structure (WBS) that presents activities, tasks, and subtasks as linked circles

quality control (QC)

a function that measures the specific items that must be monitored to determine that the project will meet the stakeholders' expectations. inputs include work results, quality checklists, operational definitions, and the management plan. monitoring and recording results of executing quality activities to assess performance. requires knowledge of statistical quality control to determine the causes of unsatisfactory results

quality assurance (QA)

a function that monitors the overall ability of the project to meet the expectations of the stakeholders. the application of planned and systematic quality activities to ensure that the project will employ all processes needed to meet all stakeholder expectations and provide the confidence that the product of the project will fulfill the requirements of quality. auditing the quality requirements and the results to assure appropriate standards

risk breakdown structure (RBS)

a hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks

organizational breakdown structure (OBS)

a hierarchically organized depiction of the project organization arranged so as to relate the work packages to the performing organizational units

Algorithmic programming

a mathematical analysis model that can be used with the constrained optimization method of project selection

Nonlinear programming

a mathematical analysis model that can be used with the constrained optimization method of project selection

cost performance index (CPI)

a measure of cost efficiency on a project. CPI = EV / AC. positive is good, negative is bad

cost variance (CV)

a measure of cost performance on a project. CV = EV - AC

schedule performance index (SPI)

a measure of schedule efficiency on a project. SPI = EV / PV. positive is good, negative is bad. value of higher than one indicates project is getting more value than planned

schedule variance (SV)

a measure of schedule performance on a project. SV = EV - PV

control charts

a method of quality control that looks at the average and aims to keep production with three standard deviations of that. generally controlled by the rule of 7, that is, if there are 7 consecutive measurements above or below the mean, there is a problem that needs to be fixed. shows results of a process over time on a graph. used to determine if a process is stable

average rate of return on investment

a more complete justification of a project that considers all cash flows from the beginning of the investment to the end of the useful life of the project

statement of work (SOW)

a narrative description of products, services, or results to be supplied

audience list template

a predesigned audience list that contains audiences typically included for similar projects

Monte Carlo simulation

a probabilistic schedule distribution simulation conducted via computer simulation that selects random start and finish values. output is generally a frequency histogram and a criticality index. shows the probability of all possible project completion dates. it's a refinement of PERT

scope verification

a process that takes place at the end of a project in which the stakeholders sign off that the deliverable meets the acceptance criteria, which should have been agreed to at the beginning of the project

project calendar vs resource calendar

a project calendar describes working and non-working days and defines holidays. a resource calendar refers to the availability of individuals

Process decision program chart (PDPC)

a quality management and control tool that is useful for contingency planning. it is constructed like an organizational chart with a primary idea in the top box and related ideas branching off from there

resource breakdown structure

a refinement of the OBS that generally goes down to the individual level. shows types of resources employed by the project

constraint

a request for and agreement to a specific date for completion of a particular milestone in a project. factors that limit the project management team's options

issue

a risk event that has occurred

critical path methodology (CPM)

a schedule network analysis technique used to determine the amount of scheduling flexibility (float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. early start and finish dates are calculated by means of a forward pass, using a specified start date. late start and finish dates are calculated by means of a backward pass, starting from a specified completion date, which sometimes is the project early finish date determined during the forward pass calculation. it is a deterministic technique. uses most likely duration

precedence diagramming method (PDM)

a schedule network diagramming technique in which schedule activities are represented by boxes (nodes). schedule activities are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. generally include activity number, description, early start, early finish, late start, late finish, and duration. uses only one time estimate to determine duration. most commonly uses finish-to-start dependencies (activity-on-node, activity-in-the-box)

change control procedure

a statement within a project contract that allows for renegotiation of price and schedule for client-ordered changes in performance

responsibility assignment matrix (RAM)

a structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of the project's scope of work is assigned to a responsible person/team

change control system

a subsystem of the configuration management system. concerned with documenting procedures for change requests, tracking the status of change requests, and describing the management impacts of changes

work authorization system

a subsystem of the project management system. clarifies and initiates the work of each work package. written procedures defined by the organization. used throughout the project executing processes

aggregate project plan

a summary of various types of projects an organization engages in (portfolio project plan)

activities report

a table that lists activities and the dates on which you plan to start and end them

fait accompli

a tactic used in negotiation when one party tries to discuss an issue that is no longer relevant

Parametric estimates

a technique of Estimate Activity Durations and Estimate Costs that uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters, such as cost, scope, budget, and duration. include regression analysis and learning curve. work or units times rate or cost.

invitation for bid (IFB)

a term that is generally equivalent to RFP. sometimes has a narrower meaning. part of procurement documentation

Communication technology

a tool and technique of the Manage Communications process. takes into consideration urgency of the need for information, project environment, and duration of the project

parametric estimate

a top-down estimate that uses a parameter of the project that changes proportionately with project cost

analogous estimate

a top-down estimate that uses the actual cost of completion of a similar project. uses expert judgment and historical information. used when little information is available

double declining balances

a type of accelerated depreciation in which you halve the value every year. the result is equal to the depreciation for the year

sum of the years' digits

a type of accelerated depreciation in which you sum the digits of the years of life of the asset. example: 10 years = 10 + 9 + 8 + 7 + 6 + 5 + 4 +3 + 2 + 1 = 55. for the first year, multiply the value of the asset by 10/55 to get the amount of depreciation. next year, multiply the value by 9/55, etc.

cost plus percentage

a type of contract often used for a project that has a lot of risk associated with it. buyer must pay more if those risks occur.

activity-on-arrow

a type of network diagram (classical, traditional) in which activities are written on the arrows and the nodes are circles with no content in them (they only show dependencies). arrows also include the (tail) start and (head) end dates, which have no duration. the length of the arrow does not represent the duration of the activity. arrow diagramming method = ADM. uses only finish-to-start logical relationships

request for quotation (RFQ)

a type of procurement document used to request price quotations from prospective sellers of common or standard products or services. sometimes used in place of an RFP

request for proposal (RFP)

a type of procurement document used to request proposals from prospective sellers of products or services. seller suggests how the buyers needs might be fulfilled. may have narrower meaning in some applications

request for information (RFI)

a type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability

PERT formula

a weighted average formula of activity duration used to calculate project duration. EV = (O + P + (4)ML)/6. Also requires standard deviation which is (P - O) / 6. With PERT technique, a project with a greater than 95% chance of being completed according to the estimate has plus/minus two standard deviations (standard deviation is the square root of the variance). it is a probabilistic technique

zero sum

a win-lose reward, such as team member of the month, which limits recipients and can foster unhealthy competition

conditional activity

a work activity that's performed only if certain conditions come to pass

definitive estimate

accurate from -15% to +20%

preliminary estimate

accurate from -20% to +30%

conceptual estimate

accurate from -30% to +50%

bottom-up estimate

accurate from -5% to +10%. inherently more accurate than top-down because they are the sum of individual elements

order of magnitude estimate

accurate from -50% to +100%

Initiating process group

acquire, conduct, develop, direct, distribute, manage, perform. rough estimates of the project success are estimated and a preliminary scope definition is make. project justification is made and the project charter is written. processes include Develop Project Charter

two categories of listening techniques

active and effective. show the speaker you are interested, don't interrupt, listen for concepts and ideas, make sure both sides give feedback

quality circles

ad hoc organizations that meet to address a problem. they must be supported by the company but not managed by it

buffering

adding float to selected activities. activities on the critical path, with higher risk, or with a lot of dependencies are generally those that are buffered. this is like adding lag. two standard deviations from late finish date is a good amount of time

types of project endings

addition (is developed into an ongoing business process), starvation, integration and extinction (has been complete and accepted by stakeholders)

costs of prevention

additional planning, education and training, inspection and testing, improved design, quality staff, quality audits, quality plans and execution

Monitoring and Controlling process group

administer, control, monitor, perform, report, verify. the project is monitored for results and performance according to the project plan. recommendations for corrective action are made and the results of those are monitored. change management is important to prevent scope creep. lessons learned help with continuous improvement. includes Control Schedule process

quality management and control tools

affinity diagrams, process decision program charts, interrelationship diagrams, tree diagrams, prioritization matrices, activity network diagrams, and matrix diagrams

cost baseline

aggregates the estimated costs of project activities. used to measure variances and future project performance. the time-phased budget-at-completion for the project

benefit cost ratio

all the benefits of doing something divided by all the costs to accomplish it. if it is 1.0 or greater, the project is desirable

product scope

all the features and functions that the completion of the project will provide to the stakeholders

systems management

all work is considered a system where the work is a process that converts inputs to outputs

project management team

also called the core, leadership, or executive team. a subset of the project team and of the project management office. plans, controls, and closes the project

contract

an agreement between competent parties, for consideration, to accomplish some lawful purpose with the terms clearly set forth

failure mode and effect analysis (FMEA)

an analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component, and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of that component. or the examination of a product (at the system and/or lower level) for all the ways a failure may occur. an estimate is made of each potential failure for its effect on the total system and its impact. a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects

total quality management (TQM)

an approach to implementing quality improvement within an organization. quality is about prevention, not detection

quality audit

an independent review that identifies inefficient and ineffective processes used on a project, to improve processes and reduce the cost of quality, and to increase the percentage of product or service acceptance

risk trigger / risk symptom

an indication that a risk is about to occur

Agreements

an input to the Control Procurements and Determine Budgets processes

chart of accounts

an organization's accounting system that provides unique identifiers for control accounts, which are used for earned value management calculations. used to monitor project costs as defined by PMI

schedule data

an output of Develop Schedule process. includes project constraints and assumptions, milestones, schedule activities, and activity attributes

Work Performance Information

an output of the Control Stakeholders Engagement process

activity list

an output of the Define Activities process. includes all project activities, an identifier, and a description of the activity

Stakeholder Management Plan

an output of the Plan Stakeholder Management process. used to maintain stakeholder relationships in order to receive continued support for the project and to manage stakeholder expectations. developed by analyzing needs, interests, and potential impacts of stakeholders. includes details regarding distribution of information, reasons for distribution, and timing of information provided to stakeholders. tools and techniques include expert judgment, meetings, and analytical techniques

benefit measurement project selection methods

analysis and comparative approaches (decision models) including cost/benefit analysis

Plan Cost Management process

analysis in this process includes ROI, IRR, payback period, net present value, and discounted cash flows. output is the cost management plan that establishes the policies and procedures you'll use to plan and execute project costs

total float

applies to the whole project. if there are five tasks and each has one day of total float, once one of the tasks uses a day of total float, the float available for the other tasks becomes zero. number of days you can delay the start of a task without delaying the end of the project

standards of professional responsibility

aspirational and mandatory

earned value report

assesses the project's performance based on its scope, cost, and schedule measures. it is a cumulative report that generally has an S shape, meaning that costs are largest in the middle stages of a project. used for project performance reporting

job enrichment

assures lack of boredom, gives work meaning, lets people feel responsible, and gives a sense of competence

X bar value

average measurement of parts sampled in a control process. plotted on the control chart

four strategies for negative risks or threats

avoid (eliminate the risk), transfer/deflect (make someone else responsible), mitigate (reduce the probability or impact to an acceptable level), accept (let it happen and deal with it)

future value of money

because money is worth less in the future, projects that high returns early on in the life of the product are more justifiable

contingency reserve

budgeted funds for identified risks that may or may not come to pass. the project manager approves whether to use these funds. budget for the expected value, not the impact on the project should the risk come to pass

blanket order

buying a large amount in advance without having to take delivery. the supplier sends things as needed. at the end of the contract an economic adjustment is made to either the buyer or seller depending on whether the project used more or less of something. gives the seller a long-term investment and gives the buyer a fixed price

split order

buying a product from two difference vendors to lower the risk of something going wrong

procurement early termination methods

by agreement, via default, or for cause

decision tree analysis

calculate all of the expected values in a branching manner. whatever yields the largest result is what you should do

network circle communication links

can be calculated by [N x (N - 1)] / 2 where N is the number of people in the circle, including the project manager

motivation

can be extrinsic or intrinsic

resource leveling

can cause the whole project duration to increase because to reduce overutilization of resources, people need to be given more time to do their tasks. used when the project cannot run over schedule

contested changes

can take the form of disputes, claims, or appeals

weighted average cost of capital (WACC)

capital and assets used multiplied by the cost of capital

Ishikawa's seven basic tools of quality

cause and effect diagram (major defect, potential causes and effect), control chart (upper control limit x-axis, and lower control limit. shows variance and standard deviation), flowchart (activities, decision points, and order of processing. used to analyze how problems occur), histogram, Pareto chart (type or category, frequency by cause, and cumulative percentage), run chart, scatter diagram. used during the Plan Quality Management Process

lag

causes the dependent activity to have a designated number of time periods added to its start or finish. a delay of successor activities. used more often than leads

lead

causes the dependent activity to have a designated number of time periods subtracted from its start or finish. an early start of successor activities. used less often than lags

risk probability and impact matrix

chart that shows where risks lie when both impact and probability are taken into consideration. created during the Plan Risk Management Process

types of power

coercive, reward, legitimate, referent, expert, and representative (or reward, punishment, expert, legitimate, and referent)

Planning process

collect, create, define, determine, develop, estimate, identify, perform, plan, sequence. the project is progressively elaborated and the project scope is matured and more clearly defined.

performance reporting

collecting and disseminating information in order to provide stakeholders with information about how resources are being used to achieve project objectives. includes status reporting (earned value analysis and variance analysis), progress reporting, and forecasting

issue log

collection of objections from stakeholders

four basic decision styles

command, consultation, consensus, and coin flip (random)

variance report

compares the project's actual results to its baselines. variance can be random, predictable, or ones that are always present. used for project performance reporting. variances are depicted in control charts.

Status report

compares the project's current status relative to the performance measurement baseline

facilitated workshops

comprise cross-functional stakeholders. part of the Project Scope Management knowledge area

automated impact assessments

computerized spreadsheets that consider in combination both the risk that different situations will occur and the consequences if they do

configuration control

concerned with changes to the specifications of the deliverables or project management processes. is NOT the same as change management, which changes the deliverables (or baselines or documents) themselves

Monitor and Control Project Work process

concerned with collecting data, measuring results, determining whether corrective action is necessary, identifying new risks, providing forecasts, monitoring implementation of approved changes, and reporting on performance. occurs during initiating, planning, executing, and closing process groups

benefit analysis

conducted with stakeholders to validate project alignment with organizational strategy and expected business value

two costs of quality

conformance and non-conformance

Deming's 14 points (quality control)

constancy of purpose, adopt a new philosophy, eliminate need for inspection, consider total cost, improve constantly, initiate OJT, initiate leadership, drive out fear, break down barriers, eliminate slogans and targets, eliminate management by quota, remove barriers to pride of workmanship, institute education and self-improvement, get everyone involved

Plan Human Resource Management process

constraints include organization structures, collective bargaining agreements, and economic conditions. uses organization charts and position descriptions displayed in hierarchical charts, matrix charts, or text-oriented formats

basis of estimates

contains all supporting detail regarding cost estimates. is an output of the Estimate Costs process and an input to the Determine Budget process

project human resources management

contains organization planning, staff acquisition, and team development

cost budget

cost baseline plus the contingency and management reserves. the total amount the organization should have available to complete the project

steps in building a network diagram

create an activity list; assign duration to each; determine predecessors; calculate forward pass; calculate backward pass; calculate float; determine critical path; compare to projected completion date; adjust; apply resources; adjust for resource constraints; compare to projected completion; adjust or confirm; get approval

communication recipient filters

culture, knowledge, language, geographic location (distance), emotions, and attitudes

make-or-buy decision

decision to make a product oneself or subcontract. consider the security measures of the subcontractor to protect the product, and direct and indirect costs, ongoing need for the equipment used to make the product (buy or rent). done in a structure like an organizational chart

Define Activities Process

decomposes the work packages into schedule activities

scope management

decomposing the major deliverables into smaller, more manageable components to provide better control

teaming agreement

defines contractual obligations between parties. impacts planning processes by predefining the scope of work

Requirements Documentation

defines how each requirement of the project helps the project meet the business needs. used to manage customer expectations

Develop Project Management Plan Process

defines how the project is executed, monitored, controlled, and closed. describes the processes used to perform each phase of the project

project management plan

defines how the project will be executed, monitored, controlled, and closed. it is an input of the Close Procurement Process

Scope Management Plan

defines how the scope of the project will be defined, developed, monitored, controlled, and verified. helps in creating the WBS. documents how changes to scope will be managed

contractual WBS

defines the reporting information and timeliness of information that a supplier will give to the buyer

leadership styles

delegating, supporting, autocratic, and laissez-faire

Closing Process

deliverables are delivered and accepted by the stakeholders, accounts opened for the project are closed, scope baseline is reviewed to make sure work is complete and accurate, project documents are archived, purchasing activities are reconciled, organizational process assets are updated, and administrative closing procedures are performed.

critical success factor

deliverables or objectives that must be met in order for the project to be considered complete

Tannenbaum and Schmidt Continuum Management Theory

describes 7 levels of delegated freedom a team has regarding decision making and problem solving

Project Management Plan

describes how a project will be executed, monitored, and controlled. used as the guideline for future project decisions. captures actions required to consolidate and coordinate various supplementary plans. encompasses all outputs of the Planning Process Group

exception report

describes items that are not planned

plan-do-check-act cycle (PDCA)

describes the integrative nature of project process groups. developed by Shewart and modified by Deming

quality metric

describes what is being measured and how it will be measured by the Control Quality process. an output of the Plan Quality Management process

project plan

detailed task descriptions, schedule, costs, and scope baseline

Close Procurements process

determines if the work described in the contract was completed accurately and satisfactorily. input includes procurement documentation and the project management plan. tools and techniques include procurement audits, negotiated settlements, and records management system. output includes closed procurements and organization process assets updates

quality planning function

determines which quality standards will be used

cost of quality (COQ)

determining the costs incurred to ensure quality. prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements. failure costs (cost of non-conformance; cost of poor quality) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation

two process to do when starting a project

develop a Project Charter and Identify Stakeholders

three team member communication styles

directive, collaborative, logical (sometimes also include explorer)

tornado diagram

displays sensitivity analysis data

barriers to communcation

distorted perceptions, distrusted sources, transmission errors

methods of identifying risks

documentation review, brainstorming (good for divergent thinking), delphi technique, nominal group technique, crawford slip, expert interviews, root cause identification, SWOT analysis, checklists, and analogy

Validate Scope process

documents the level of project completeness for a cancelled project. product documentation is verified and accepted. inputs are validated deliverables, project management plan, scope baseline, requirements traceability matrix, requirements documentation, scope management plan. outputs are accepted deliverables, change requests, project document updates

crashing

doing anything at all to reduce the scheduled completion of a project. weighs cost and schedule trade-offs. often accomplished by adding resources. used during the Develop Schedule process

procurement audit

done to review the procurement process from Plan Procurement Management through Close Procurements to identify lessons learned

rough order of magnitude (ROM)

during the initiating phase it is wide. plus/minus 50 percent is normal

learning curve theory

each time people double the number of times they have done a certain task, they time they need to do it decreases by a constant percentage

three reasons for good document control

effective communication, ability to reconstruct why decisions were made, historical value

five key components of a communication model

encode, message and feedback-message, medium, noise, decode OR encode, transmit, decode, acknowledge, feedback/response

Administer Procurements process

ensures that both parties meet their contractual obligations. output includes procurement documentation

PMI Code of Ethics and Professional Conduct

ethical code to which PMP credential holders are required to adhere. applies to all PMI members, nonmembers who hold PMI certification, nonmembers who have begun to apply for certification, and nonmembers who serve as PMI volunteers

discounted cash flow technique

evaluates the cash flow for the entire project and compares it to the initial investment

Perform Qualitative Risk Analysis process

evaluates the probability and impact of identified risks using a probability and impact matrix. tools and techniques include risk probability and impact assessment, risk data quality assessment, risk categorization, risk urgency assessment, expert judgment. output includes risk register updates

win-win rewards

everyone who achieves something, like submitting reports or putting in extra hours to meet a deadline, wins

trend report

examines past results to see if the project's performance is improving

information retrieval systems

examples include manual filing systems, electronic text databases, and project management software

five estimating tools and techniques

expert judgment, analogous estimating, parametric estimating, three-point estimates (which use triangular (averaging) distribution and beta (PERT) distribution), reserve analysis

four strategies for positive risks or opportunities

exploit, share, enhance, accept

enterprise environmental factors

external factors that can negatively or positively impact the outcome of a project. include government standards, infrastructure, and project management information systems

management reserve

extra funds for unplanned project changes or risks that have not been identified. the difference between the cost performance baseline and the funding requirements at the end of a project. a person with more authority than the project manager determines when these funds can be used. these funds are not added to the cost baseline but are considered part of the project budget

bottom-up budgeting

financial estimating process in which a work breakdown structure (WBS) or action plan identifies elemental tasks, which are then converted to costs and combined to determine an overall direct cost for the project

backward pass

finish-to-start analysis by a project manager to determine critical paths and earliest start and finish dates

quality control techniques

fishbone diagram for cause and effect (also called Ishikawa); Pareto's 80-20 rule, checklists, the continuous improvement of kaizen, run charts that show periodically recorded measurements

capability maturity model integration (CMMI)

five stages of performance development. no processes, some unstandardized processes, best practices, measurable best practices, and continuous improvement

three types of contracts

fixed price, cost reimbursable, and time & materials

three major types of contracts

fixed-price (lump sum), cost-reimbursable (cost plus), time and materials (T&M)

Process Improvement Plan

focuses on finding inefficiencies in a process or activity and eliminating them. an output of the Plan Quality Management process and a subsidiary of the project management plan. considers process boundaries, expected start and end dates, process configuration, process metrics, process analysis, and any specific elements targeted for improvement.

project management office

formalized structure where the project teams and project manager reside. supports project teams with training/mentoring/coaching, software, tools, facilitating communications, managing resources, and establishing project management methodologies

five stages of developing a team

forming, storming, norming, performing, adjourning. part of the Develop Project Team Process

weak matrix organization

functional managers have more power than project managers. duties are often split between projects and functional roles. project managers may be called project coordinators or expediters instead. expediters might not manage the project but will be responsible for communications

Distribute Information process

gathering and disseminating relevant project information outlined in the communications management plan

collaborators

groups or other organizations in a project audience with which team members might pursue joint ventures related to the project

defect repair

happens before validated defect repair

attribute sampling quality inspection

has a yes or no result. it meets a criterion or it doesn't. is conforming or non-conforming. this type is fast and cheap and leaves little room for human error

Plan Procurement Management process

has the greatest ability to influence project schedule

affinity diagramming

have project members silently move sticky notes with all identified risks around on a wall, trying to group them. everyone can move any sticky note. let the process naturally come to a conclusion and see where the notes end up. it is a quality management and control tool and is similar to mind mapping. also known as KJ Methods

preventive action

help reduce the likelihood of risks that can contribute to an unfavorable project outcome

requirements traceability matrix

helps assure business value is realized when the project is complete because each requirement is linked to a business and project objective. connects requirements to their origins and traces them through the lifetime of the project

project team organization chart

helps assure that people can be located when they are needed when they move among various projects and back and forth in their functional department

organizational project management (OPM)

helps assure that projects, programs, and portfolios are managed consistently and support the overall goals of the organization

action item log

helps promote communication with stakeholders

return on assets (ROA)

how much profit is generated after each dollar of investment in the company. higher is better. NOPAT / Assets. 9% is a typical value.

return on sales (ROS)

how much profit is generated per dollar of sales. higher is better. NOPAT / gross revenue. NOPAT = net operating profit after taxes. 5% is a typical value

Plan Procurements Management process

identify which project needs should be obtained from outside the organization. uses source selection criteria (technical capability, management approach, references, financial capacity, and ownership of intellectual and proprietary rights) to choose a vendor from the proposals received. outputs include procurement documents, procurement management plan, procurement statements of work, source selection criteria, make-or-buy decisions, and change requests

expectancy theory (Victor Vroom)

if you continuously tell someone something, they will believe it and act accordingly. expectation of a reasonable and attainable positive outcomes drives motivation

Project Procurement Management KA processes

include Adminster Procurements and Close Procurements

Project Cost Management KA processes

include Estimate Costs, Determine Budget, and Control Costs

Project Communications Management KA processes

include Identify Stakeholders, Plan Communications, Distribute Information, Manage Stakeholder Expectations, and Report Performance.

Project Quality Management KA processes

include Plan Quality, Perform Quality Assurance, and Perform Quality Control. is aligned with ISO standards

change requests

include corrective action, preventive action, defect repair, and updates. expand or contract project scope. Change requests are an output of the Plan Procurement Management process (a Planning process) and are outputs of several Executing and Monitoring and Controlling processes. Approved change requests are an input to the Direct and Manage Project Work process (an Executing process) and change requests are an input to the Perform Integrated Change Control process (a Monitoring and Controlling process). Change requests are also outputs of several Monitoring and Controlling processes.

environmental factors

include government standards, infrastructure, project management information systems

Life cycle costs

include guarantees, warranties, and ongoing service

portfolios

include projects, programs, and other portfolios

financial control procedures

include reporting time, reviewing expenditures, reviewing disbursements, and assigning accounting codes using standard provisions for contracts

commercial databases

include standardized cost estimating data and industry risk study

Project Scope Management KA processes

includes (in this order) Collect Requirements, Define Scope (detailed description of the project is created), Create WBS (subdivides project deliverables into smaller components), Verify Scope, and Control Scope

project management information system

includes automated tool suites and configuration management

Develop Team process

includes enhancing competencies of the members and facilitating interactions among them. outputs include team performance assessment and enterprise environmental factor updates. tools and techniques include training

Plan Stakeholder Management Process

includes five levels of stakeholder engagement: unaware, resistant, neutral, supportive, and leading

Sequence Activities process

includes producing a schedule network diagram, updating the activity list, and identifying all activity dependencies

procurement statement of work

includes project objectives, a description of work, specifications, and a project schedule or time frame. developed from the project scope baseline and defines that portion of scope to be included in the contract

corporate knowledge base

includes the process measurement database, project files, historical information, lessons learned knowledge base, issue and defect management database, configuration management knowledge base, and the financial database

scope baseline

includes the scope statement, WBS, and project schedule. it is a subsidiary of the project management plan

should-cost estimates

independent estimates, sometimes conducted by the procurement department to compare the proposal costs against the vendor costs

the five process groups

initiating, planning, executing, controlling, and closing

Conduct Procurements process

input includes procurement management plan. receive bids and proposals and rank-order them using source selection criteria (price, technical approach, and management style). monitor vendor performance for adherence to contract. tools and techniques include bidder conferences (contractor conferences; vendor conferences; pre-bid conferences), independent estimates (should-cost estimate, used when prices from vendors vary wildly), expert judgment, advertising, Internet search, procurement negotiations, and proposal evaluations

Manage Stakeholders Engagement process

input includes the communications management plan. output includes issue log

Close Project or Phase process

inputs are the project management plan, accepted deliverables, and organizational process assets (closure guidelines and requirements, project audits, evaluations, and transition criteria, lessons learned knowledge base). Organizational process assets are updated, which means updating project files, project or phase close documents, and historical information. each phase should be closed out so lessons learned can be applies to the next phase

Estimate Activity Resources process

inputs include enterprise environmental factors, organizational process assets, activity list, activity attributes, and resource calendars. outputs include activity resource requirements, resource breakdown structure, and project document updates

Control Schedule process

inputs include organization process assets, project documents, and project management plan. Uses SV = EV - PV and SPI = EV / PV

Control Scope process

inputs include project management plan, work performance information, requirements documentation, and organizational process assets. tools and techniques include variance analysis. outputs include work performance measurements (which assess the magnitude of variation), organizational process assets, change requests, project management plan updates, and project document (such as scope baseline) updates

Estimate Costs process

inputs include scope baseline, project schedule, and human resource management plan. outputs include activity cost estimates, basis of estimates, and project document updates

three categories of communication methods

interactive, push, pull. communication should be given back in the method it was received, unless there is a compelling reason to change. communication is most effective when given with as many methods (oral, written, and visual) as possible. can also be vertical (with managers or subordinates) or horizontal (with peers)

eight tools and techniques for collecting requirements

interviews, focus groups, facilitated workshops, group creativity, group decision-making (unanimity, majority, plurality, and dictatorship), questionnaires/surveys, observations, prototypes

Perform Quality Control process

involves change requests. monitors results to assure they comply with quality standards.

capital appropriations plan

itemized list of all expenditures over an established minimum amount planned for facilities and equipment purchases, renovations, and repairs during the year

activity definition

key inputs are the work breakdown structure, the scope statement, constraints, assumptions, and historical information that supports the applicable activity

five interpersonal skills

leadership, team building, motivation, communication, and influencing (sometimes also include decision-making, political awareness, cultural awareness, and negotiation)

risk threshold

level of risk impact or uncertainty at which stakeholders may choose a different risk response

bill of material (BOM)

lists product components in a hierarchical way

sensitivity analysis

look at a single parameter of the project and just examine what affects that parameter. hold everything else in the project constant, as if it will go according to plan. the extent to which the uncertainty of each of the elements of the project affects the objective being examined when all other uncertain elements are held at their baseline values

forward buying

lowers cost of shipping and chances that product won't be available. often provides discount for bulk purchase. downside is having to store all the items and the risk that they will become obsolete

Control Communications process

makes sure the right information is delivered to the right people at the right time. Inputs include the issue log. Tools and Techniques: information management systems, expert judgment, communication methods (status meetings), and other meetings

informal performance assessment

management by walking around (MBWA)

risk management process

management planning, identification, assessment, quantification, response planning, and monitoring & control

managing vs. leading

managing is concerned with consistently producing key results expected by stakeholders. leading is about establishing direction, aligning people, motivating, and inspiring

dependencies

mandatory or hard dependencies (hard logic) are defined by the nature of the work. discretionary dependencies are defined by management as a preferred (preferential logic or soft logic) way of doing things and they create arbitrary total float values. both are used to define a sequence of activities

factors that necessitate the initiation of a project

market demand, organizational/opportunity/business need, customer requests, technological advances, legal requirements, ecological impacts, social needs

causes for projects

market demand, strategic opportunity, business need, customer requests, technological advances, legal requirements, ecological impacts, and social need

constrained optimization project selection methods

mathematical models (decision models) that use linear, dynamic, integer, nonlinear, and algorithm formulas to make decisions

Determine Budget process

may require updates to the risk register. creates cost and performance measurement baselines that are used to perform earned value management calculations such as variances and performance. tools and techniques include reserve analysis, cost aggregation, expert judgment, and historical relationships. assigns cost estimates to project activities.

graphical representations of a project schedule

milestone charts - show start and completion dates of major deliverables. bar charts - show duration of tasks. schedule network diagrams - show task dependencies

effect of risk

more risks adversely affect the schedule than improve it. therefore, most likely project completion dates are earlier than the mean/expected date

Eliyahu Goldratt - critical chain theory

most activities have a large amount of float because many activities on the critical path have resource constraints and buffering that lead to float and free float for other activities. you should delay the start of activities that are not on the critical path as long as possible to allow yourself to learn from mistakes made early in the project and complete those other activities on the feeder chains better

earned value analysis

most commonly used monetary value as a unit of measure but can also use labor hours, square footage, cubic meters, etc.

danglers

multiple places in a network diagram where a project can start and finish

how to record risks

name, description, date, person responsible for managing, reference to WBS, probability, impact, severity, and mitigation strategies

feeding buffers

nonwork activities added to dependent activities that feed into the critical chain. they help account for limited resources and/or unforeseen project issues

project buffers

nonwork activities added to the end of the critical chain. they help account for limited resources and/or unforeseen project issues

OPM

organization project management framework. a way to ensure that projects are managed consistently and that they support the goals of the organization

Perform Quantitative Risk Analysis process

output includes risk register updates

Plan Risk Responses process

output includes risk register updates and risk-related contract decisions. risk responses are preventative actions

Monitor and Control Risks process

output includes risk register updates. tools and techniques include risk reassessment, risk audits, variance and trend analysis, technical performance measurements, reserve analysis, and status meetings.

Plan Communications process

output includes the communications management plan

Identify Stakeholder process

output includes the stakeholder register

administrative closure

outputs are the project archives, project closure, and lessons learned. administrative closures should be done with the end of each major phase of the project and not held off until the project is complete

Manage Stakeholder Expectations process

outputs include organization process assets updates, change requests, project management plan updates, and project document updates. tools and techniques include communication methods, interpersonal skills, management skills

Plan Scope Management Process

outputs include the scope management plan and the requirements management plan

Delphi technique

participants anonymously provide everything they think is a risk. moderator circulates the master list around for comments

committee

people who come together to review and critique issues, propose recommendations for action, and, on occasion, implement those recommendations

functional organization

people with similar skills work together

Expectation Theory

positive outcomes drive motivation

three types of life cycles

predictive (plan driven), iterative or incremental (deliverables early), and agile (deliverables every 2-4 weeks)

two categories of the cost of quality for avoiding failures

prevention and appraisal

risk rating

probability times impact

Project Integration Management KA

process flow: develop project charter, develop project management plan, direct and manage project execution, monitor and control project work, perform integrated change control, close project or phase. all of these require expert judgment

capacity

productivity per unit time period

controlling

project management responsibility that includes reconfirming people's expected performance, monitoring actions and results, addressing problems encountered, and sharing information with interested persons

balanced matrix organization

project managers and functional managers have the same amount of power. functional manager is generally responsible for employee skill improvement and seeing that people are assigned where they can be used most effectively. project manager is generally responsible for managing the dual reporting relationship of the team members. used because of pressure to share resources

strong matrix organization

project managers have more power than functional managers. they are better able to get the people they really need on their teams

negative risk acceptance

project team develops a plan of action to take if the risk occurs

breakthrough projects

projects involving newer technology that may disrupt the status quo in an industry or marketplace

quality management approaches

proprietary ones include: Deming (cost of quality is a management issue 85% of the time), Juran (fitness for use - meet stakeholder and customer expectations), and Crosby's (zero defects). nonproprietary ones include: Total Quality Management (TQM), Six Sigma, Failure Mode and Effect Analysis, and Voice of the Customer

Develop Project Charter process

provides a well-defined start date and a way for senior management to formally accept the project. uses expert judgment and facilitation. the process that produces the project charter, which is authored by a sponsor, usually an executive manager. used to define and document the high-level requirements and description of the project. inputs to this process include contract, project statement of work, enterprise environmental factors, and organizational process assets

straight line depreciation

purchase price - salvage value. divide by number of years of life of the asset and take away an equal amount each year

Direct and Manage Project Work process

purpose is to execute the project plan. majority of project budget is spent here. approved changes are implemented. uses the project management information system (PMIS). actions include collecting project data and facilitating the forecasting of cost and schedule. outputs include work performance data (schedule status, status of deliverables, lessons learned, and resource utilization)

Perform Integrated Change Control process

put in place no later than completion of the scope baseline. purpose is to review, approve, and manage changes in the project, including staffing changes. concerned with influencing factors that circumvent the change control process, reviewing change, and managing the integrity of baselines. includes configuration management and change control systems. outputs include change request status updates, project management plan updates, and project document updates. tools and techniques include change control meetings and expert judgment

request for bid

put out for project work when the selection will largely be driven by price. used for commercial items / commodities

quality vs. grade

quality describes how well a product or service fulfills the requirements. grade describes products or services that are of the same type but have differing technical characteristics

interrelationship digraphs

quality management and control tool used for complex problem solving. can interconnect up to 50 different factors, processes, or areas of focus

contract life cycle

requirement (project and contract needs), requisition (preparing requests for proposal), solicitation (obtaining bids and proposals), and award (vendors chosen)

requirements vs. deliverables

requirements describe the specifications or necessary prerequisites. must be able to track, measure, trace, and test them. deliverables are outputs that must be produced to bring the phase or project to completion. deliverables are tangible and be measures and proved. deliverables can also be intangible, such as team training

earned value management technique

requires project baselines, progress information, and variance information

change management process

requires the stakeholder to authorize additional funding just to investigate the change. if there is justification, he then authorizes funds for the change itself

RACI

responsible, accountable, consult, and inform. a type of responsibility assignment matrix

constraints

restrictions that other place on the results, time frames, resources, and ways a project team can approach its tasks. part of the statement of work

Crawford slip

same question is asked to the participants 10 times, forcing them to think of 10 unique responses

project schedule display options

schedule network diagram with dates, Gantt chart, milestone chart

fast tracking

scheduling activities to be done in parallel that would normally have been done in sequence. used during the Develop Schedule process

costs of defects

scrap, rework, repair, replacement, loss of business, legal problems, liability, risk to life and property

ISO 9001:2000

sets international standards for quality conformance. to qualify, an organization must meet requirements in: control of documents, control of records, internal audits, control of nonconformance, corrective action, and preventive action. these standards are revised and reissued every five years

scope definition

should be completed early in the project to help estimate costs. poor scope definition can lead to rework, increased project costs, schedule changes, and poor morale

procurement agreement

should include SOW, time period of performance, pricing and payment plan, acceptance criteria, warranty periods, dispute resolution procedures, and status report procedures

responsibility-accountability matrix

shows who is responsible for certain responsibilities. uses the letters PARIS (participates, accountable, reviews, input required, sign off)

ascribed power

someone gives the project manager the authority to reward and punish those whom he or she wants to influence

Develop Schedule process

start and finish dates for your project activities are determined and activity sequences and durations are finalized. inputs to this process include calendars, lead and lags, project schedule, schedule data, schedule baseline, risk register, activity resource requirements, and activity attributes. uses compression techniques of crashing and fast tracking. one output is schedule data

David McClelland's Theory of Needs (Achievement)

states that individuals are motivated the most by achievement, affiliation, and power

Contingency Theory

states that people are continually motivated to achieve levels of competency even when the competency is reached

SWOT

strengths (internal), weaknesses (internal), opportunities (external), and threats (external)

Plan Communications Management process

subsidiary of the project management plan. should be completed as early as possible to define and manage the flow of project information. tightly linked with enterprise environmental factors and organizational process assets. tools and techniques include communication requirements analysis, communications technology, and communication models

sum of years' digits calculation for depreciation

sum the digits of each of the years of useful life, then reverse the digits and divide by the total to get the percent of the value to be taken in that year. this is an accelerated depreciation method

level of effort (LOE)

support activity which does not produce definitive end products. generally characterized by a uniform rate of work performance over a period of time determined by the activities supported

comparative risk rank

take all the risks in the project and compare them only in pairs (AA, AB, AC, BC, etc) to see which is more likely to occur. Then see which risks got the highest number of points.

reserve analysis

takes schedule risk into account and adds a percentage of time or extra work periods to prevent schedule delays. compares the remaining contingency reserve to see if it can adequately cover remaining risks

operations

tasks and functions that are ongoing and repetitive

types of risks

technical, business, project management, customer, and environmental

economic value added (EVA)

tells whether a company's NOPAT is sufficient to cover the cost of assets it uses. NOPAT - WACC

meeting size

ten people is generally the optimum. 5 to 11 is ideal for making a decision

authority

the ability to make binding decisions about a project's products, schedule, resources, and activities

corrective action

the act of performing a workaround or contingency plan. anything that brings future project performance in line with the project plan. documented, authorized instructions

float

the amount of time an activity can be delayed without causing a delay in the project

performance measurement baseline (PMB)

the approved plan for project work against which the project execution is compared and deviations are measured for management control. incuded in the project management plan

planned value (PV)

the authorized budget assigned to the scheduled work to be accomplished for a schedule activity or WBS component. also referred to as budgeted cost of work scheduled (BCWS). cumulative plot showing when expenditures are supposed to be made. will be equal to EV and AC if the project goes according to plan

expected monetary value (EMV)

the average outcome when the future includes scenarios that may or may not happen. often calculated through use of decision tree analysis. a higher EMV is more favorable

progressive elaboration

the concept of incrementally and continually refining the characteristics of a product, service, or result as a project progresses

value engineering

the creative process used to optimize the life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, or use resources more effectively

Project Statement of Work

the description of products, services, or results to be delivered by the project. should include items that are not necessarily part of the product, such as quality reports, manuals, documentation, and performance/progress reports. includes business need, project scope description, and strategic plan.

R value

the different between the highest and lowest value of dimensions measured in a control process. plotted on the control chart

Project Charter

the document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. contains business case, project objectives and success criteria, high level risks, rough schedule (summary milestones) and budget, expectation for stakeholders, list of assumptions and constraints, project manager name, and project name. written by the project manager but distributed under the name of the person with the power to authorize the project. is the customer is external to the business, must be accompanied by a contract

project scope statement

the documentation of product scope description, project goals, deliverables, and requirements. is an input to the project management plan

estimate to complete (ETC)

the expected cost needed to complete all the remaining work for a schedule activity, WBS component, or the project. is a summation of all costs of remaining work based on estimates from team members. when work is anticipated to proceed as planned, formula is EAC - AC. when work is not anticipated to proceed as planned, formula is a reestimation. when future variances will be similar to past variances, the formula is (BAC - EV) / CPI. when future variances are expected to be atypical, the formula is BAC - EV.

estimate at completion (EAC)

the expected total cost of a schedule activity, a WBS component, or the project when the defined scope of work will be completed. basic formula is AC + bottom-up ETC. using actual costs to date and assuming ETC uses budgeted rate, the formula is AC + (BAC - EV). assuming future performance will be like past performance, the formula is BAC / CPI. when cost performance is negative and schedule dates must be met, the formula is AC + [(BAC - EV) / (CPI x SPI)]

duration

the length of time needed to do an activity (the number of days that one or more people work on it)

acceptable quality level (AQL)

the level that defects cannot exceed when using statistical sampling for quality inspection. used in sampling inspection. use of this method can cause the total outgoing quality level to decrease at first but then it will increase

Executing process

the most resources are used during this phase

effort

the number of people hours needed to do an activity

baseline schedule

the original schedule plus or minus approved changes

criticality index

the output of a Monte Carlo simulation that shows the percent of time a given activity is on the criticality index. the percent of the number of simulations that an activity is on the critical path

spending plan

the plan for the flow of money to pay for the project

organizational process assets

the plans, processes, policies, procedures, and knowledge bases (lessons learned, financial data, issue and defect management, history, identified risks) that are specific to and used by the performing organization. two kinds: organizational process and procedures, and the corporate knowledge base

breakeven point

the point where the benefits of doing the project outweigh the cost when compared to not doing the project at all, or more specifically where the sum of the investment and the unit cost times the number of units is the same. also called the payback period. doesn't consider the ongoing costs after the project is over. is the least precise method of deciding whether to take a project on. payback analysis is used to predict potential financial performance of a project or service. favors buying cheap, low quality items that pay back quickly

expected value (of a risk)

the probability of it happening times the dollar impact if it does happen. then you can calculate the best case for a project by summing only the positive values and the worst case by summing only the negative values

configuration management process

the process of making sure that the product meets the design criteria in terms of form, fit, and function. a standardized and effective way of centrally managing approved changes and baselines. processes include configuration identification, configuration status accounting, configuration verification and auditing. documents characteristics and functionality. manages approved changes to specifications of the product or project management processes.

projectized organization

the project manager has supreme authority

positive risk acceptance

the project team does nothing about the risk

backing in

the schedule process of starting at the end of a project and working backward toward the beginning, identifying activities as you go and estimating durations that will eventually add up to the amount of time that the project has been given

critical path

the series of activities that have zero float (cannot be delayed at all without causing a delay in the project)

net present value

the sum of all the cash flows of a project adjusted to present values

management by objective

the supervisor and employee jointly establish performance objectives

span

the time that elapses between the start and finish of an activity (accounts for days when no one might be working on the activity)

quality

the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs

earned value (EV)

the value of work performed expressed in terms of the approved budget to that work for a schedule activity or WBS component. also referred to as budgeted cost of work performed (BCWP). cumulative plot of work actually performed. value is equal to the budget that was estimated. will be equal to PV and AC if the project goes according to plan

products with integrity

these are complete and sound or fit for use

model of communication

thinking, encoding, symbols, transmitting, perceiving, decoding, and understanding

Risk Management Plan

this plan describes how project risk management will be structured and performed on the project. may be formal or informal, high detailed or broadly framed. the information included varies by application area and project size. it is different from the risk register that contains the list of project risks, the results of risk analysis, and the risk responses.

Quality Management Plan

this plan describes how the project management team will implement the performing organization's quality policy. may be formal or informal, high detailed or broadly framed

Communications Management Plan

this plan describes the communication needs and expectations for the project, how and in what format information will be communicated, when and where each communication will be made, and who is responsible for each type of communication. the "how and what" portion includes a collection and filing structure, distribution structure, description of info to be communicated, production schedules, methods of access, and method of updating and refining communications. that is, includes purpose, frequency, and format. project managers spend approximately 90 percent of their time communicating. includes Plan Communications Management, Manage Communications, and Control Communications

Schedule Management Plan

this plan establishes the criteria and the activities for developing and controlling the project schedule. may be formal or informal, high detailed or broadly framed

Human Resource Plan

this plan identifies and documents project roles, responsibilities, reporting relationships, and the staffing management plan (which describes when and how human resources are taken on and off the project)

Cost Management Plan

this plan sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs. may be formal or informal, high detailed or broadly framed. is established using the WBS. output of the Plan Cost Management process. based on an approved project charter, project scope, schedule, resources, and other information. units of measure are described in hours, days, weeks, or a lump sum. subsidiary of the project management plan. describes the level of accuracy, reporting formats, and units of measure.

four major factors that affect decision styles

time constraints, trust, quality, and acceptance

four categories of forecasting methods

time series, causal/econometric (regression analysis, autoregressive moving average, and econometrics), judgmental (Delphi, technology forecasting, and forecast by analogy), and other (such as simulation, probabilistic, and ensemble)

Identify Risks process

tools and techniques include brainstorming, Delphi technique, interviewing, and root cause analysis (cause-and-effect diagramming). outputs include the risk register

Create WBS process

tools and techniques include decomposition. output includes the scope baseline

Verify Scope process

tools and techniques include inspection (measuring, examining, verifying, reviews, walk-throughs, audits) and product analysis. stakeholders formally accept completed project scope and associate deliverables

Collect Requirements process

tools and techniques include interviews, focus groups, questionnaires, group creativity (including brainstorming, Delphi, and idea/mind mapping), and surveys

Acquire Project Team process

tools and techniques include preassignment, negotiation, acquisition, multi-criteria decision analysis, and virtual teams

Report Performance process

tools and techniques include variance analysis, forecasting methods, communication methods, and reporting systems. inputs include work performance information, work performance measurements, budget forecast, project management plan updates, and organizational process assets

Estimate Activity Durations process

tools and techniques: expert judgment, analogous estimating, parametric estimating, three-point estimating, group decision-making (unanimity, majority, plurality, and dictatorship), and reserve analysis

budget at completion (BAC)

total budget of the project. the last point on the PV line. the sum of the expenditures currently planned for the project. does not change from week to week unless the budget for any task changes

actual cost (AC)

total costs actually incurred and recorded in accomplishing work performed for a schedule activity or WBS. can be just labor costs, direct costs, or all costs. also referred to as actual cost of work performed (ACWP). cumulative actual costs plotted every reporting time period. will be equal to PV and EV if the project goes according to plan

total slack vs. free slack

total slack time is the amount of time you can delay the start of a task without delaying the ending of the project. free slack is the amount of time you can delay the start of a task without delaying the start of a successor task

centrally organized structure

traditional organizing structure for handling projects within an organization; individual units are established to handle all work in particular specialty areas (fixed group organization)

probability distributions

uniform, binomial, triangular (averaging), Poisson, beta (PERT), normal, and lognormal. used in the Quantitative Risk Analysis Process

workaround

unplanned response to a negative risk

risk register

updated at the end of the Plan Risk Responses process. records risks, response strategies, owners, risk triggers, budget, and schedule activities needed to implement responses, contingency plans, and residual (what remains after the implementation of a planned response) and secondary risks (a direct outcome of implementing a risk response). describes probability, impact, priority, and ownership. also sometimes status, dates, and notes

control account

used during the Project Cost Management KA to monitor and control project costs. used to calculate earned value performance measures. consists of actual cost, schedule, and scope

resource smoothing

used to accommodate resource availability by modifying activities within their float times. used when the project can run over schedule

staffing plan

used to communicate personnel need requirements, utilization of each person, and the assignments they have in the future. used to help manage costs and notify other project managers when people from one team are available to work on another. looks like a Gantt chart with a bar for each person showing length of time and dates each person will work on each project

s-curve

used to display project costs graphically. costs are highest during the Executing & Monitoring and Controlling phases

Control Procurements Process

used to monitor vendor performance and ensure all requirements of the contract are met. tools and techniques include: contract change control system, procurement process reviews, inspections and audits, performance reporting, payment systems, claims administration, and records management system. Alternative dispute resolution is the preferred method of settling contested changes. During this process, the following processes are integrated: Direct and Manage Project Work, Control Quality, Perform Integrated Change Control, and Control Risks.

Pareto diagram

used to rank-order the causes of problems and is a type of histogram. enables you to determine which defect to correct first based on the frequency

Manage Project Team process

used to track and report on the performance of individual team members and prepare performance appraisals

fallback plan

used when risk impact is high and the response plan will not likely be effective. not a contingency plan.

Plan Quality Management process

uses cost-benefit analysis, cost of quality, Seven Basic Quality Tools, benchmarking, design of experiments (identifies variables that have greatest overall effect on project outcomes), statistical sampling, additional quality planning tools, and meetings

Control Costs process

uses forecasting with ETC and EAC formulas to estimate the future conditions or future performance of the project based on what is known when the calculation is performed. outputs include updates to budget forecasts, organizational process assets, project management plan, and project documents

Hertzberg's Theory

uses hygiene factors and motivating agents to show that motivating individuals is best done by giving them rewards and letting them grow. satisfiers are sense of achievement, recognition, work satisfaction, responsibility, advancement. satisfiers improve productivity after the point of no dissatisfaction has been reached. dissatisfiers are company policy, relationships with supervisors, salary, personal factors, status, and security. dissatisfiers need to be maintained for workers to be satisfied

Develop Project Team process

uses interpersonal skills, training, team-building activities, ground rules, co-location, recognition & reward, improving competencies, team environment, and personal assessment.

Maslow's Hierarchy of Needs

uses levels that need to be fulfilled in order to attain self-actualization. food, shelter, clothing; security and safety; socialization; recognition; self-actualization

Sequence Activity process

uses precedence diagramming method

Perform Quality Assurance process

uses quality management, quality control, quality audits (may be scheduled or random), and process analysis. process analysis looks at process improvement from an organizational and technical perspective. outputs include organization process assets updates, change requests, project management plan updates, and project document updates. assures project satisfies quality standards set out in quality management plan. concerned with correctness of work. project manager has greatest impact on quality during this process.

variable vs. attribute inspection

variable inspection is the measurement of some characteristic of a part. attribute inspection is a yes/no determination of whether something is good

back charge

when a product was delivered with defects but the buyer agrees to fix the defects himself. then charges the cost of work done to the seller

project starvation

when funding or resources are cut

buyer's risk

when the sampling process passes a lot that is bad and it gets shipped to the customer

seller's risk

when the sampling process rejects a lot that is good and it gets destroyed

six techniques for avoiding conflict

withdrawing/avoiding, smoothing/accommodating, compromising, forcing, collaborating, confronting/problem solving

concurrent engineering (CE)

work processes in which two or more steps are carried out at the same time to save time and costs

project scope

work that must be done to deliver the product scope to the stakeholders. must be complete before the cost and schedule baseline can be completed. used to manage customer expectations