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PMP Study Notes

Project – temporary work endeavor to produce a unique product, service, or result; it
consumes resources; has a beginning & end; and is a one-time event

Program – a group of related projects managed together

Operation – ongoing and repetitive tasks that produce the same result every time

Portfolio – a collection of projects, programs and/or operations managed together for a
business reason

PMO – centralized, permanent, administrative unit that supports project managers, and
hold Organizational Process Assets

Enterprise Environmental Factors (EEF) – culture, internal politics, reporting structure,
business climate

Organizational Process Assets (OPA) –policies, procedures, templates, methodologies,
lessons learned

Stakeholders – people that have influence over or are influenced by a project

Phase-to-Phase Relationships – Sequential, Overlapping & Iterative

Phase – has all five process groups in it

Progressive Elaboration – successive layers of detail added, rolling wave planning is a
type of progressive elaboration

Decomposition – breaking down into smaller pieces

Triple Constraint – Scope (requirements, goals & objectives), Time (schedule),
Resources (money, budget, cost, personnel, materials, facilities, equipment)

Process Groups – Initiating, Planning, Executing, Monitoring & Controlling, Closing

Knowledge Areas – Integration, Scope, Time, Cost, Quality, Human Resources,
Communications, Risk & Procurement

Stakeholder Analysis – identify potential stakeholders, classify as positive or negative,
plan for their reaction or response, team members involved with projects, project sponsor,
and can be negative or positive stakeholder
Organizational Structure – dictates how various groups within an organization interrelate

       Functional

       Matrix - Weak Matrix, Balanced Matrix, Strong Matrix; in a weak matrix org a
       project manager is more of an expeditor or coordinator; strong matrix is best for
       project manager

       Projectized - no functional depts., all work is project based

Code of Ethics – Responsibility, Respect, Fairness & Honesty

Milestone – is a point in time, not a duration

Project Selection – based on a business case, tied to one or more strategic goals, select the
project with the highest possible profit that meets the acceptable timeframe

Statement of Work (SOW) – list everything that must be done


Project Charter – clear, concise description of business case / need to address; formally
launches & authorizes project; names Project Manager & authorizes resources

Stakeholder Register – output of Identify Stakeholders process; identifies stakeholders of
project; list includes name, position, location, role, contact info

Stakeholder Management Strategy - output of Identify Stakeholders process; strategy
created to ensure maximum support of stakeholders and to maximize support & minimize
negative impacts throughout project life cycle

Project Management Plan – details how a project will be executed to achieve its
objectives; includes outputs from all planning processes


Decision Tree – selection criteria arranged as branches, go down each branch until one
fails, once fail = stop, not selected

Criteria Profiling – similar to Decision Tree, but not eliminated even if one criterion fails

Weighted Factor – selection criteria is weighted different and factored into the score

Q-Sorting – group of people rate rank from highest to lowest, results are compared, and
lowest is thrown out, and performed again until you get to selected group

Delphi Technique – Anonymous experts rank and provide feedback on their ranking,
results are collated and send back to group of experts until a censuses is reached
Feasibility Analysis – can company do this; do they have capability to do it

Cost Benefit Analysis – providing forecasted cost alone with projected benefits in order
to assist in decision making


Focus Groups – run by a trained moderator, provide open ended questions

Questionnaires & Surveys – based on output from focus group

Interviews

Facilitated Workshops – a mixture of in house cross functional stakeholders

Group Creativity Techniques – Brainstorming, Nominal Group technique (voting
process), Delphi technique, Mind Mapping & Affinity Diagram (categorizing ideas)

Observations – Job Shadowing

Prototypes – working model designed to get feedback to provide detailed requirements


Requirements Traceability Matrix – output from the Collect Requirements process; a list
or table that links requirements to their origin & tracks them throughout the project life
cycle

Requirements Document – includes Assumptions, Constraints & Dependencies

Scope Statement – includes Project Description, Acceptance Criteria, Deliverables,
Constraints (includes Primary Constraint: Scope, Time or Resources), Assumptions &
Milestones


Product Analysis Techniques – Functional Analysis (analyze entire product, identify
unnecessary functions), Value Analysis (cost verses benefit ratio), Quality Function
Deployment (customer needs, translate those needs into technical requirements), Systems
Engineering (analyzing technical pieces – integration factors, usage, related hardware /
software)

Alternatives Identification – Lateral Thinking, Brainstorming, Delphi Techniques
Decomposition – breaking down into manageable pieces


Work Breakdown Structure (WBS) – logical grouping of deliverables arranged in a
hierarchical structure; defines the total scope of work required; graphical presentation
Work Package – smallest most granular deliverable that cannot be further subdivided

WBS Purpose – serves the Project Team

8/80 Rule – guidelines regarding work packages; should be more than 8 hours and less
than 80 hours of work

Scope Baseline – Project Scope Statement, WBS & WBS Dictionary; get approval & sign
off from Sponsor before moving forward


Activity – an element of project work that requires action to produce a deliverable

Project Schedule Network Diagram – an output of Sequence Activities; graphical
representation of the sequence of activities & the dependencies among them

Types of Activity Dependencies – Mandatory, Discretionary & External

Precedence Relationship – logical relationship between two activities that describes the
sequence in which activities should be done

       Predecessor Activity – activity that comes first

       Successor Activity – activity that comes next

Precedence Relationship Types: in order from normal to rare

       Finish to Start (FS) – predecessor activity must finish before successor activity
       begins

       Finish to Finish (FF) - predecessor activity must finish before successor activity
       finishes

       Start to Start (SS) - predecessor activity must start before successor activity can
       start

       Start to Finish (SF) - predecessor activity must start before successor activity
       finishes

Lag – a delay in the start of a successor activity; extra time between activities

Lead – a change in the logical relationship of a FS relationship that allows the successor
activity to start before the predecessor activity ends; crunch time between activities
Precedence Diagramming Method (PDM) –a graphical representation that uses boxes to
represent activities & arrows to represent relationships between activities; does not show
time

Hammock Activity or Summary Activity – groups many related activities together

Estimate Activity Resources – determining specific resources necessary for completing
project; includes quantity & availability of resources

Resource Breakdown Structure (RBS) – an output of Estimate Activity Resources
process; a hierarchy of identified resources organized by category & type (labor,
equipment)


Bottom-up Estimating – decomposes work in an activity to the last executable level;
accuracy is very high; very time consuming process

Analogous Estimating –top down estimating technique that uses previous similar
activities

Parametric Estimating – multiplying a productivity rate by the quantity to be performed;
mathematical process

Three Point Estimating (PERT) – estimating technique using a weighted average of most
likely, optimistic & pessimistic

       PERT estimate = Optimistic + 4(Most Likely) + Pessimistic / 6

Reserve Analysis – adding extra resources to serve as a buffer


Schedule Network Analysis – technique used to calculate the early and late start and
finish dates for activities; includes Critical Path Method, Critical Chain Method, What-if
Scenario & Resource Leveling

Critical Path Method (CPM) – analysis method that uses a sequential FS relationship
network logic and calculates early & late finish & start for each activity uses duration
estimates

Critical Chain Method - analysis method that allows you to alter project schedule to
accommodate limits on resources

Resource Leveling – used to analyze the schedule model; allows you to readjust work as
appropriate so that people are not over allocated; Fully Allocated, Under Allocated, Over
Allocated
What-if Scenario Analysis – method that allows you to consider different situations;
helps in selecting optimal plan

Applying Leads & Lags – may need to be applied to accommodate scheduling elements

Schedule Compression – shortening the schedule without affecting the scope; includes
Fast Tracking & Crashing

Schedule Baseline – version of schedule created through schedule network analysis;
features approved baseline start & finish dates

Standard Schedule Diagramming Notations:

        Early Start (ES)

        Early Finish (EF)

        Late Finish (LF)

        Late Start (LS)

        Duration (DU)

Critical Path – the network path that has the longest total duration; has zero float

Total Float – slack time; is how late an activity can run without delaying the project

        TF = LF – EF or LS - EF

Free Float – how late an activity can run without delaying the ES of the Successor
Activity

        FF = ES (Successor) – EF (Predecessor)

Critical Activity – an activity on the critical path

Fast Tracking – schedule compression method that compresses project duration by
performing some activities concurrently instead of sequential; no added cost, but added
risk or rework

Crashing –schedule compression method that allocates more resources to activities on
critical path to obtain the greatest schedule compression for the least cost

        Only activities on Critical Path
        First Pass: activity with least cost per week
        Second Pass: activity with least cost per week & greatest time savings
Choose activity closest to end

Common Estimate Types – in order of accuracy lowest to highest

       Rough Order of Magnitude
       Budgetary
       Range of Estimates
       Approximate Estimates
       Definitive Estimates

Cost Baseline – time phased budget that will monitor & measure cost performance
throughout life cycle of project; typically includes budget contingency to accommodate
unidentified risk

Cost Aggregation – activity costs are added up until project cost is determined

Funding Limit Reconciliation – adjusting spending, scheduling and resources to bring
into alignment with budgetary constraints

Contingency / Reserve Allowances – additional funds set aside to cover identified,
planned risks

Management Reserves – company sets aside additional funds to cover unforeseen,
unidentified risks not planned for

Benchmarks for Measuring a Projects Success: Project Schedule, Cost Baseline &
Quality

Inputs into Plan Quality Process: Stakeholder Register, Scope Baseline, Cost Baseline &
Schedule Baseline


Control Chart – graph used to analyze the variability of a process over time by showing
multiple runs of a process with control limits; components are mean, upper control limits
(UCL) & lower control limits (LCL); process is in control if variables are between UCL
& LCL

       Seven Run Rule – when 7 or more consecutive points are on one side of the mean,
       then the process is out of control

Benchmarking – comparing to other groups; used to identify best practices

Cost of Quality (COQ) – total cost of effort needed to achieve an acceptable level of
quality

       Types of Quality: in order of costs, lowest to highest
Prevention Costs – Conformance Costs
       Appraisal Costs – Conformance Costs

       Internal Failure Costs – Non-conformance Costs
       External Failure Costs – Non-conformance Costs

Design of Experiments (DOE) – systematically identifying levels of independent
variables by running experiments, changing one variable at a time

Statistical Sampling – measures entire population by taking a representative sample of
population; the larger the sample the more representative it is

       Attributive Sampling Data – data from sample is counted

       Variable Sampling Data – data from sample is measured on a scale

Flowcharting – graphical representation of relationships between process steps

Quality Planning Tools – Brainstorming, Affinity Diagrams, Matrix Diagrams

Quality Management Methodologies – Six Sigma, Lean Six Sigma, TQM, etc

       Total Quality Management (TQM):

               Continuous process improvement
               Quality = planning, control & improvement
               Quality means it meets requirements
               Adding Value – must know long term strategy of company
               Quality caused by prevention rather than inspection

Cause & Effect Diagram, aka Ishikawa or Fishbone Diagram – similar to root cause
analysis; organize potential problems into branches, evaluate each branch to find all
problems


Standards – voluntary guidelines that have been approved by industry experts

Regulations – mandates & rules that must be followed

Quality Assurance – focuses on process; concerned with the future; is an iterative
process; includes Process Improvement

Quality Control – focuses on product; concerned about past performance
Quality Audits – independent evaluation of quality process; can be scheduled or
unscheduled; not looking at team, but whether team has training & resources to perform
work: how well team is using quality data, determine if best practices are being used

Histogram – Bar chart of variables represented vertically or in columns

Pareto Chart – histogram that shows causes in order of severity with a trend line

       80/20 Rule or Pareto rule – 80% of defects are caused by 20% of causes

Run Chart – similar to control chart without control limits; tracks a single run instead of
multiple runs

Scatter Diagram – diagram showing the relationship between two variables; the more
closely the points form a diagonal line, the more closely they are related

Variance – quantifiable deviation from the expected results

       Random Causes – everyday occurrences that are always present; typically long
       term and cost a lot to fix

       Special or Sporadic Causes – unusual; typically short term and does not involve
       high costs to fix

Six Sigma – improve quality of process outputs by removing causes of defects and
variability in process; no more than 3.4 defects per million; 3 Sigma = 99.7%


Activity Resource Requirements – list of required people & competencies necessary for
each activity; need a skills inventory of current staff to identify resources

Responsibility Assignment Matrix (RAM) – an output of Develop Human Resources
Plan process; a list that links stakeholders to deliverables by assigning stakeholders to
each element of work

RACI – Responsible, Accountable, Consultive& Informed; similar to RAM

Staffing Management Plan – forecasts what types of people will be needed, when needed,
how they will be recruited, and when they will be released

Communications Management Plan – output of Plan Communications process; describe
what will be communicated, by whom, when, and in what format

Communication Methods – Push (mail, email), Pull (post on SharePoint, Website) &
Interactive
Communications Channels = n(n-1) / 2


Risk – an uncertain event that may have either a positive or negative impact; probability
that risk will occur & impact of risk; can be classified into effect based, source based, and
level of uncertainty (known, known-unknown & unknown-unknown)

Effect Based Risks – major risks including time, cost, quality & scope

Risk Management Plan – a document that describes the team’s approach to identifying
risks; identifies the methodology, approaches and tools to be used; documents roles and
responsibilities of those involved; identifies the budgeting and scheduling for risk
activities; includes Probability & Impact Matrix; and identifies risk categories

Risk Management Plan – does not address responses to risks, those are addressed in the
Risk Response Plan

Insurable Risks – insurance for Negative Risks

Business Risks – may be insurable; competitive, legislative, monetary (increased price of
materials) & operational (fraud, theft, injury)

Risk Breakdown Structure (RBS) – a hierarchical arrangement of identified risks; very
detailed

Probability Scale – assignment of a value to the likelihood of a risk occurring; ranging
from 0 to 1

Impact Scale – rating system showing the assignment of a value that reflects the
magnitude of the impact of a risk event; ranging from very low to very high

Risks Analysis – assigning the probability & impact of the occurrence of risks

Risk Tolerance – level of acceptable risk; Risk Adverter, Risk Seeker & Risk Neutral

Risk Register – a document that identifies & categorizes risks, responses, and their
triggers

Risk Identification – responsibility of entire team and is an iterative process


SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats

Diagramming Techniques – used to identify causes; Cause and Effect Diagram,
Flowcharts
Information Gathering Techniques – Brainstorming, Delphi technique, interviewing &
root cause analysis

Qualitative Analysis –determine the probability of risk occurrence & the impact

Always do Qualitative Risk Analysis, but not necessarily Quantitative Risk Analysis

Risk Data Quality Assessment – evaluation of the usefulness of available data concerning
risk

Probability & Impact Risk Rating Matrix – graph showing the assignment of risk rating
to risk or conditions; combines the probability & impact scales to prioritize risks and
identify risks that need further analysis

Watchlist – risks that are not urgent and do not require near term action

Quantitative Risk Analysis – numerically assessing the probability & impact of each risk
and determining the extent of the overall project risk; helps identify time & cost
contingencies

Quantitative Analysis Methods:

       Sensitivity Method –effect of changing one variable to see effect on entire plan

       Expected Monetary Value – calculates the average outcome under uncertainty

       Decision Tree Analysis – factors both probability & impact for each variable;
       choose the largest expected value

       Modeling & Simulation – technique used to make predictions about the future,
       includes Monte Carlo Analysis

Standard Deviation – the measure of a spread of data

Mean – sum of all events divided by the number of occurrences

Median – the number that separates the higher half of the probability distribution from
the lower half

Monte Carlo Analysis – computerized model using a large number of variables that
produce a range of results; used to make predictions about optimistic, most likely and
pessimistic estimates

Subjective Probability – a person’s opinion

Objective Probability – deduced mathematically
Inputs to Risk Response Plans – Risk Register & Risk Management Plan

Negative Risk Strategies:

       Risk Avoidance – change the scope or plan to avoid high risk activities

       Risk Transference – shifting risk to 3rd party; outsourcing activity

       Risk Mitigation – reduce risk to an acceptable level; implement a new course of
       action

       Risk Acceptance – may be passive or active

Positive Risk Strategies:

       Exploit – make sure risk is fully realized

       Share – partner with another party to ensure best change of seizing opportunity

       Enhancement – focuses on trigger in order to optimize change of occurrence

       Acceptance

Contingency Plans – risk response strategy developed in advance, before things go
wrong, to use if risk becomes reality; active acceptance of negative risk

Contingency Reserves – predetermined amount of resources (time, money, equipment)
set aside to handle planned identified foreseen risks


At the End of Planning (Integrated Planning):

       Approved Scope Baseline – WBS, WBS Dictionary & Scope Statement

       Approved Cost Baseline

       Approved Schedule Baseline

Inputs to Direct & Manage Project Execution – Approved Project Plan & Approved
Change Requests (are recorded and can either increase or decrease project scope)

Project Management Information System (PMIS) – system used by project team to
gather, analyze, communicate & store project information
PMIS Common Problems – Lagging Indicators (must enter data first), Manage
Symptoms verses Problems (system can’t explain reason for problems), Over Reliance on
Reports, Invalid data & too much information

Work Authorization System – tool used to communicate official beginning of work on an
activity or work package

Work Performance Information – output of Direct & Manage Execution process;
periodically collected information about project activities; includes start & finish dates,
scheduled progress, deliverables completed and not complete

Acquire Project Team Tools & Techniques – Pre-assignment, Negotiation, Acquisition &
Virtual Teams

Virtual Teams – rarely meet face to face; collaborate using communications bridge;
bonding & team identity hard to create, individual contributions may be overlooked

Develop Project Team Tools & Techniques – Interpersonal Skills (soft skills), Training,
Team building activities, Ground rules, Co-location, Recognition & rewards (should be
part of planning)

Team Development Stages:

       Forming – people are polite, non-committal, hesitant & confused

       Storming – people begin to assert themselves, conflict arises

       Norming – team begins to work productively, begin to operate with mutual trust

       Performing – team working at optimal level

       Adjourning – completed assignment, mourning

Manage Project Team process – monitors individual performance, gives feedback, solves
issues & organizes changes to improve performance

Conflict is natural and forces the need for exploring alternatives; focus should be on
issues, not individuals; should be about present situation, not about past

Conflict Management Approaches:

       Confronting / Problem Solving (Good) – focuses on identifying underlying
       problems & working out solutions

       Collaborating (Good) – incorporating insights and viewpoints from different
       perspectives
Smoothing / Accommodating (Bad) –preventing conflict

       Compromising (Bad) – lose-lose choice

       Forcing (Bad) – win-lose situation; one side wins, one side loses

       Withdrawing / Avoiding (Bad) – worst


Procurement Management Plan – document that outlines specifics for procuring work
from outside sources; specifies types of contracts; describe process for obtaining &
evaluating bids, mandates standard procurement documents & describes how to manage
providers

Procurement Statement of Work (SOW) – detailed description of the resources, goods or
services that are being sought from outside source

Procurement Process:

       Plan            What you Need? Make or Buy Analysis

                       Where you get them? RFI

                       RFI – List of Supplies / Bidders

                       What you need done? RFP

                       Distribute RFP

       Conduct         Bidders Conference – Questions & Answers

                       Get Bids in from RFP

                       Evaluate Bids -Source Selection Criteria

                       Award Contract – Contract, SOW

       Admin Proc. Perform


Vendor = Seller

Grants are RFP’s
Standard Parts         Things you need
                       Where you get them
                       RFQ
                       Quotes come in from bidders
                       Award Contract

Make or Buy Analysis –assess the cost effectiveness of making in-house verses buying
outside; factors to consider:

       Impact – consider the impact on cost, tine or quality

       Ongoing Need – will organization continue to need a specific skill set? Is it a
       worthwhile investment to train current personnel?

       Learning Curve – while it may make financial sense to develop an in-house
       solution, there may not be enough time to train staff

       Cost Effectiveness – based on financial analysis

Lease, Rent or buy Decision – based on financial analysis

Bidders Conference – potential vendors get to ask Questions about RFP; Q&A’s must be
distributed to everyone RFP sent too

Teaming Agreements – legal contractual agreements; exclusive rights to do something;
preferred vendor

RFI – use to develop list of qualified sellers

RFQ – use to order standard parts; mainly used for comparison purposes when price is
the main factor

RFP – use when deliverables are not well defined or when you need the seller to solve the
problem

Types of Contract:

       Fixed Price – total price for product / service; provides maximum protection to
       buyer

       Cost Reimbursable – seller gets a refund of expenses incurred, plus a fee for
       profit; Cost Plus Award Fee Contract (CPAF) – buyer has subjective
       determination of performance

       Time & Materials – buyer pays seller a negotiated hourly rate & full
       reimbursement for materials used
Point of Total Assumption (PTA) – Fixed Price Incentive Fee Contract (FPIF) in which
seller bears all cost overruns

Conduct Procurement (Executing Process Group) – getting seller responses, vendor
selection & contract award

Source Selection Criteria – ranking & weighted factors used to evaluate seller’s proposals
and to make comparison between proposals; should be included in RFP so bidders know
what criteria they will be scored on

Procurement Negotiations – 5 steps of contract negotiations

       Introduction
       Probing
       Bargaining
       Closure
       Agreement

Term Contract – for a specific amount of service over a set time

Completion Contract – until project is complete & contract is fulfilled

Administering Procurement (Monitoring & Controlling Process Group) – process of
managing relationship with vendor/seller

Force Majeure Clause – protects parties from extraordinary circumstances, “Act of God”

Warranty – promise that goods or services will meet a predefined standard

       Express Warranty – predetermined standard specified

       Implied Warranty - predetermined standard NOT specified

       Warranties of Merchantability – goods fit for sale

       Warranties of Fitness for Purpose –goods fit for intended use

Waivers – giving up a contract right, even inadvertently

Breach of Contract – failure to do something in contract

       Immaterial Breach – minor, no damage to parties

       Material Breach – series breach, one party is injured

       Fundamental Breach – negates fundamental part of contract
Anticipatory Breach – unavoidable indication that one party can’t fulfill contract

Close Procurement happens naturally at end of contract

Incomplete Contract Closeout – call sellers ASAP & provide written notice ASAP

Contract Closeout Tools – Procurement Audits (verify work performed), Negotiated
Settlements (negotiating an end to contract)

Alternative Dispute Resolution (ADR) – Mediator handles contract termination
negotiations

Distribute Project Information – involves getting the right information to the right people
at the right time

Manage Stakeholders Expectations – occurs at the same time as you update stakeholders
on project status

Face to face Meetings are the best way to communicate with stakeholders

Use Issues Log to assign, track & resolve open issues

Monitor & Control Project Work – done throughout the project life cycle

Change Categories:

       Corrective Action – bring back on track
       Preventive Action – diminish effect of negative risks
       Defect Repairs – address defects

Performance Reports – current project status, significant accomplishments, scheduled
activities (completed vs. should be completed), issues & forecasts

Perform Integrated Change Control – process of identifying, documenting, approving or
rejecting & controlling any changes to the project baseline

If a Change is Rejected project manager should get back in touch with Submitter to let
them know status

Change Control Board (CCB) – addresses issues that affect cost, time & product quality

Configuration Management – tool used to manage changes to a product or service being
produced; includes version control

Process Control Structure – defines how modifications will be reviewed, documented,
delivered, communicated & revised
Verify Scope (Deliverables / Closing) – process of demonstrating to stakeholders that
they have received what they were promised in a given deliverable & getting their
acceptance; done after quality control process

Inspection (Tool) – an official examination or work results to verify that requirements are
met; AKA Review, Product Review, Audit or Walkthrough

Control Scope – process of monitoring project scope & holding changes to project scope
baseline in check

Variance Analysis (Tool)

Control Project Schedule – process of monitoring schedule performance & controlling
changes to schedule baseline

Earned Value Management (EVM) – method of measuring project progress by
comparing actual schedule & cost performance against planned performance

       Budget At Completion (BAC)

       Planned Value (PV): Time% x BAC; Time% = Status Date/Length of Project

       Earned Value (EV): EV = $Work% x BAC; $Work% = $Work Done/$TotBudget

       Actual Cost (AC) – actual money spent for work that has been completed

       Scheduled Variance (SV): SV = EV – PV (negative SV indicates project is behind
       schedule)

       Scheduled Performance Index (SPI): SPI = EV / PV (SPI of less than 1 indicates
       planned schedule was not very good and you are getting less work done than
       planned)

       Cost Variance (CV): CV = EV – AC (negative CV indicates project cost are over
       budget)

       Cost Performance Index (CPI): CPI = EV / AC (CPI of less than 1 indicates
       budget costs were low and you are paying more than planned)

       Estimate To Complete (ETC): ETC = BAC – EV

       Estimate At Completion (EAC): EAC = AC + ETC

Risk Audit – examining the Team’s ability to identify risks, effectiveness of Risk
Response Plan & performance of risk owners
Administrative Closure – verifying & documenting project results; ensures project
requirements were met



Test Strategies for PMP Exam:
What should PM do First? Next?

       Same question, weed out what’s not relevant & what’s already done, then put
       answers in order


Tools & Techniques = 80% of exam; understand them and where they will be used


PMO – if in answer, then it is probably the correct choice


Check Policy, Procedures & Templates (OPA) first


Lessons Learned - if in answer, then it is probably the correct choice


Consult the Plan - if in answer, then it is probably the correct choice


Conflict question – answer is never about personality


Procurement question – never ask seller / vendor to speed up their process; respect
vendor’s procurement process


Make the Plan, Consult the Plan, Follow the Plan

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PMP Study Notes

  • 1. PMP Study Notes Project – temporary work endeavor to produce a unique product, service, or result; it consumes resources; has a beginning & end; and is a one-time event Program – a group of related projects managed together Operation – ongoing and repetitive tasks that produce the same result every time Portfolio – a collection of projects, programs and/or operations managed together for a business reason PMO – centralized, permanent, administrative unit that supports project managers, and hold Organizational Process Assets Enterprise Environmental Factors (EEF) – culture, internal politics, reporting structure, business climate Organizational Process Assets (OPA) –policies, procedures, templates, methodologies, lessons learned Stakeholders – people that have influence over or are influenced by a project Phase-to-Phase Relationships – Sequential, Overlapping & Iterative Phase – has all five process groups in it Progressive Elaboration – successive layers of detail added, rolling wave planning is a type of progressive elaboration Decomposition – breaking down into smaller pieces Triple Constraint – Scope (requirements, goals & objectives), Time (schedule), Resources (money, budget, cost, personnel, materials, facilities, equipment) Process Groups – Initiating, Planning, Executing, Monitoring & Controlling, Closing Knowledge Areas – Integration, Scope, Time, Cost, Quality, Human Resources, Communications, Risk & Procurement Stakeholder Analysis – identify potential stakeholders, classify as positive or negative, plan for their reaction or response, team members involved with projects, project sponsor, and can be negative or positive stakeholder
  • 2. Organizational Structure – dictates how various groups within an organization interrelate Functional Matrix - Weak Matrix, Balanced Matrix, Strong Matrix; in a weak matrix org a project manager is more of an expeditor or coordinator; strong matrix is best for project manager Projectized - no functional depts., all work is project based Code of Ethics – Responsibility, Respect, Fairness & Honesty Milestone – is a point in time, not a duration Project Selection – based on a business case, tied to one or more strategic goals, select the project with the highest possible profit that meets the acceptable timeframe Statement of Work (SOW) – list everything that must be done Project Charter – clear, concise description of business case / need to address; formally launches & authorizes project; names Project Manager & authorizes resources Stakeholder Register – output of Identify Stakeholders process; identifies stakeholders of project; list includes name, position, location, role, contact info Stakeholder Management Strategy - output of Identify Stakeholders process; strategy created to ensure maximum support of stakeholders and to maximize support & minimize negative impacts throughout project life cycle Project Management Plan – details how a project will be executed to achieve its objectives; includes outputs from all planning processes Decision Tree – selection criteria arranged as branches, go down each branch until one fails, once fail = stop, not selected Criteria Profiling – similar to Decision Tree, but not eliminated even if one criterion fails Weighted Factor – selection criteria is weighted different and factored into the score Q-Sorting – group of people rate rank from highest to lowest, results are compared, and lowest is thrown out, and performed again until you get to selected group Delphi Technique – Anonymous experts rank and provide feedback on their ranking, results are collated and send back to group of experts until a censuses is reached
  • 3. Feasibility Analysis – can company do this; do they have capability to do it Cost Benefit Analysis – providing forecasted cost alone with projected benefits in order to assist in decision making Focus Groups – run by a trained moderator, provide open ended questions Questionnaires & Surveys – based on output from focus group Interviews Facilitated Workshops – a mixture of in house cross functional stakeholders Group Creativity Techniques – Brainstorming, Nominal Group technique (voting process), Delphi technique, Mind Mapping & Affinity Diagram (categorizing ideas) Observations – Job Shadowing Prototypes – working model designed to get feedback to provide detailed requirements Requirements Traceability Matrix – output from the Collect Requirements process; a list or table that links requirements to their origin & tracks them throughout the project life cycle Requirements Document – includes Assumptions, Constraints & Dependencies Scope Statement – includes Project Description, Acceptance Criteria, Deliverables, Constraints (includes Primary Constraint: Scope, Time or Resources), Assumptions & Milestones Product Analysis Techniques – Functional Analysis (analyze entire product, identify unnecessary functions), Value Analysis (cost verses benefit ratio), Quality Function Deployment (customer needs, translate those needs into technical requirements), Systems Engineering (analyzing technical pieces – integration factors, usage, related hardware / software) Alternatives Identification – Lateral Thinking, Brainstorming, Delphi Techniques Decomposition – breaking down into manageable pieces Work Breakdown Structure (WBS) – logical grouping of deliverables arranged in a hierarchical structure; defines the total scope of work required; graphical presentation
  • 4. Work Package – smallest most granular deliverable that cannot be further subdivided WBS Purpose – serves the Project Team 8/80 Rule – guidelines regarding work packages; should be more than 8 hours and less than 80 hours of work Scope Baseline – Project Scope Statement, WBS & WBS Dictionary; get approval & sign off from Sponsor before moving forward Activity – an element of project work that requires action to produce a deliverable Project Schedule Network Diagram – an output of Sequence Activities; graphical representation of the sequence of activities & the dependencies among them Types of Activity Dependencies – Mandatory, Discretionary & External Precedence Relationship – logical relationship between two activities that describes the sequence in which activities should be done Predecessor Activity – activity that comes first Successor Activity – activity that comes next Precedence Relationship Types: in order from normal to rare Finish to Start (FS) – predecessor activity must finish before successor activity begins Finish to Finish (FF) - predecessor activity must finish before successor activity finishes Start to Start (SS) - predecessor activity must start before successor activity can start Start to Finish (SF) - predecessor activity must start before successor activity finishes Lag – a delay in the start of a successor activity; extra time between activities Lead – a change in the logical relationship of a FS relationship that allows the successor activity to start before the predecessor activity ends; crunch time between activities
  • 5. Precedence Diagramming Method (PDM) –a graphical representation that uses boxes to represent activities & arrows to represent relationships between activities; does not show time Hammock Activity or Summary Activity – groups many related activities together Estimate Activity Resources – determining specific resources necessary for completing project; includes quantity & availability of resources Resource Breakdown Structure (RBS) – an output of Estimate Activity Resources process; a hierarchy of identified resources organized by category & type (labor, equipment) Bottom-up Estimating – decomposes work in an activity to the last executable level; accuracy is very high; very time consuming process Analogous Estimating –top down estimating technique that uses previous similar activities Parametric Estimating – multiplying a productivity rate by the quantity to be performed; mathematical process Three Point Estimating (PERT) – estimating technique using a weighted average of most likely, optimistic & pessimistic PERT estimate = Optimistic + 4(Most Likely) + Pessimistic / 6 Reserve Analysis – adding extra resources to serve as a buffer Schedule Network Analysis – technique used to calculate the early and late start and finish dates for activities; includes Critical Path Method, Critical Chain Method, What-if Scenario & Resource Leveling Critical Path Method (CPM) – analysis method that uses a sequential FS relationship network logic and calculates early & late finish & start for each activity uses duration estimates Critical Chain Method - analysis method that allows you to alter project schedule to accommodate limits on resources Resource Leveling – used to analyze the schedule model; allows you to readjust work as appropriate so that people are not over allocated; Fully Allocated, Under Allocated, Over Allocated
  • 6. What-if Scenario Analysis – method that allows you to consider different situations; helps in selecting optimal plan Applying Leads & Lags – may need to be applied to accommodate scheduling elements Schedule Compression – shortening the schedule without affecting the scope; includes Fast Tracking & Crashing Schedule Baseline – version of schedule created through schedule network analysis; features approved baseline start & finish dates Standard Schedule Diagramming Notations: Early Start (ES) Early Finish (EF) Late Finish (LF) Late Start (LS) Duration (DU) Critical Path – the network path that has the longest total duration; has zero float Total Float – slack time; is how late an activity can run without delaying the project TF = LF – EF or LS - EF Free Float – how late an activity can run without delaying the ES of the Successor Activity FF = ES (Successor) – EF (Predecessor) Critical Activity – an activity on the critical path Fast Tracking – schedule compression method that compresses project duration by performing some activities concurrently instead of sequential; no added cost, but added risk or rework Crashing –schedule compression method that allocates more resources to activities on critical path to obtain the greatest schedule compression for the least cost Only activities on Critical Path First Pass: activity with least cost per week Second Pass: activity with least cost per week & greatest time savings
  • 7. Choose activity closest to end Common Estimate Types – in order of accuracy lowest to highest Rough Order of Magnitude Budgetary Range of Estimates Approximate Estimates Definitive Estimates Cost Baseline – time phased budget that will monitor & measure cost performance throughout life cycle of project; typically includes budget contingency to accommodate unidentified risk Cost Aggregation – activity costs are added up until project cost is determined Funding Limit Reconciliation – adjusting spending, scheduling and resources to bring into alignment with budgetary constraints Contingency / Reserve Allowances – additional funds set aside to cover identified, planned risks Management Reserves – company sets aside additional funds to cover unforeseen, unidentified risks not planned for Benchmarks for Measuring a Projects Success: Project Schedule, Cost Baseline & Quality Inputs into Plan Quality Process: Stakeholder Register, Scope Baseline, Cost Baseline & Schedule Baseline Control Chart – graph used to analyze the variability of a process over time by showing multiple runs of a process with control limits; components are mean, upper control limits (UCL) & lower control limits (LCL); process is in control if variables are between UCL & LCL Seven Run Rule – when 7 or more consecutive points are on one side of the mean, then the process is out of control Benchmarking – comparing to other groups; used to identify best practices Cost of Quality (COQ) – total cost of effort needed to achieve an acceptable level of quality Types of Quality: in order of costs, lowest to highest
  • 8. Prevention Costs – Conformance Costs Appraisal Costs – Conformance Costs Internal Failure Costs – Non-conformance Costs External Failure Costs – Non-conformance Costs Design of Experiments (DOE) – systematically identifying levels of independent variables by running experiments, changing one variable at a time Statistical Sampling – measures entire population by taking a representative sample of population; the larger the sample the more representative it is Attributive Sampling Data – data from sample is counted Variable Sampling Data – data from sample is measured on a scale Flowcharting – graphical representation of relationships between process steps Quality Planning Tools – Brainstorming, Affinity Diagrams, Matrix Diagrams Quality Management Methodologies – Six Sigma, Lean Six Sigma, TQM, etc Total Quality Management (TQM): Continuous process improvement Quality = planning, control & improvement Quality means it meets requirements Adding Value – must know long term strategy of company Quality caused by prevention rather than inspection Cause & Effect Diagram, aka Ishikawa or Fishbone Diagram – similar to root cause analysis; organize potential problems into branches, evaluate each branch to find all problems Standards – voluntary guidelines that have been approved by industry experts Regulations – mandates & rules that must be followed Quality Assurance – focuses on process; concerned with the future; is an iterative process; includes Process Improvement Quality Control – focuses on product; concerned about past performance
  • 9. Quality Audits – independent evaluation of quality process; can be scheduled or unscheduled; not looking at team, but whether team has training & resources to perform work: how well team is using quality data, determine if best practices are being used Histogram – Bar chart of variables represented vertically or in columns Pareto Chart – histogram that shows causes in order of severity with a trend line 80/20 Rule or Pareto rule – 80% of defects are caused by 20% of causes Run Chart – similar to control chart without control limits; tracks a single run instead of multiple runs Scatter Diagram – diagram showing the relationship between two variables; the more closely the points form a diagonal line, the more closely they are related Variance – quantifiable deviation from the expected results Random Causes – everyday occurrences that are always present; typically long term and cost a lot to fix Special or Sporadic Causes – unusual; typically short term and does not involve high costs to fix Six Sigma – improve quality of process outputs by removing causes of defects and variability in process; no more than 3.4 defects per million; 3 Sigma = 99.7% Activity Resource Requirements – list of required people & competencies necessary for each activity; need a skills inventory of current staff to identify resources Responsibility Assignment Matrix (RAM) – an output of Develop Human Resources Plan process; a list that links stakeholders to deliverables by assigning stakeholders to each element of work RACI – Responsible, Accountable, Consultive& Informed; similar to RAM Staffing Management Plan – forecasts what types of people will be needed, when needed, how they will be recruited, and when they will be released Communications Management Plan – output of Plan Communications process; describe what will be communicated, by whom, when, and in what format Communication Methods – Push (mail, email), Pull (post on SharePoint, Website) & Interactive
  • 10. Communications Channels = n(n-1) / 2 Risk – an uncertain event that may have either a positive or negative impact; probability that risk will occur & impact of risk; can be classified into effect based, source based, and level of uncertainty (known, known-unknown & unknown-unknown) Effect Based Risks – major risks including time, cost, quality & scope Risk Management Plan – a document that describes the team’s approach to identifying risks; identifies the methodology, approaches and tools to be used; documents roles and responsibilities of those involved; identifies the budgeting and scheduling for risk activities; includes Probability & Impact Matrix; and identifies risk categories Risk Management Plan – does not address responses to risks, those are addressed in the Risk Response Plan Insurable Risks – insurance for Negative Risks Business Risks – may be insurable; competitive, legislative, monetary (increased price of materials) & operational (fraud, theft, injury) Risk Breakdown Structure (RBS) – a hierarchical arrangement of identified risks; very detailed Probability Scale – assignment of a value to the likelihood of a risk occurring; ranging from 0 to 1 Impact Scale – rating system showing the assignment of a value that reflects the magnitude of the impact of a risk event; ranging from very low to very high Risks Analysis – assigning the probability & impact of the occurrence of risks Risk Tolerance – level of acceptable risk; Risk Adverter, Risk Seeker & Risk Neutral Risk Register – a document that identifies & categorizes risks, responses, and their triggers Risk Identification – responsibility of entire team and is an iterative process SWOT Analysis – Strengths, Weaknesses, Opportunities & Threats Diagramming Techniques – used to identify causes; Cause and Effect Diagram, Flowcharts
  • 11. Information Gathering Techniques – Brainstorming, Delphi technique, interviewing & root cause analysis Qualitative Analysis –determine the probability of risk occurrence & the impact Always do Qualitative Risk Analysis, but not necessarily Quantitative Risk Analysis Risk Data Quality Assessment – evaluation of the usefulness of available data concerning risk Probability & Impact Risk Rating Matrix – graph showing the assignment of risk rating to risk or conditions; combines the probability & impact scales to prioritize risks and identify risks that need further analysis Watchlist – risks that are not urgent and do not require near term action Quantitative Risk Analysis – numerically assessing the probability & impact of each risk and determining the extent of the overall project risk; helps identify time & cost contingencies Quantitative Analysis Methods: Sensitivity Method –effect of changing one variable to see effect on entire plan Expected Monetary Value – calculates the average outcome under uncertainty Decision Tree Analysis – factors both probability & impact for each variable; choose the largest expected value Modeling & Simulation – technique used to make predictions about the future, includes Monte Carlo Analysis Standard Deviation – the measure of a spread of data Mean – sum of all events divided by the number of occurrences Median – the number that separates the higher half of the probability distribution from the lower half Monte Carlo Analysis – computerized model using a large number of variables that produce a range of results; used to make predictions about optimistic, most likely and pessimistic estimates Subjective Probability – a person’s opinion Objective Probability – deduced mathematically
  • 12. Inputs to Risk Response Plans – Risk Register & Risk Management Plan Negative Risk Strategies: Risk Avoidance – change the scope or plan to avoid high risk activities Risk Transference – shifting risk to 3rd party; outsourcing activity Risk Mitigation – reduce risk to an acceptable level; implement a new course of action Risk Acceptance – may be passive or active Positive Risk Strategies: Exploit – make sure risk is fully realized Share – partner with another party to ensure best change of seizing opportunity Enhancement – focuses on trigger in order to optimize change of occurrence Acceptance Contingency Plans – risk response strategy developed in advance, before things go wrong, to use if risk becomes reality; active acceptance of negative risk Contingency Reserves – predetermined amount of resources (time, money, equipment) set aside to handle planned identified foreseen risks At the End of Planning (Integrated Planning): Approved Scope Baseline – WBS, WBS Dictionary & Scope Statement Approved Cost Baseline Approved Schedule Baseline Inputs to Direct & Manage Project Execution – Approved Project Plan & Approved Change Requests (are recorded and can either increase or decrease project scope) Project Management Information System (PMIS) – system used by project team to gather, analyze, communicate & store project information
  • 13. PMIS Common Problems – Lagging Indicators (must enter data first), Manage Symptoms verses Problems (system can’t explain reason for problems), Over Reliance on Reports, Invalid data & too much information Work Authorization System – tool used to communicate official beginning of work on an activity or work package Work Performance Information – output of Direct & Manage Execution process; periodically collected information about project activities; includes start & finish dates, scheduled progress, deliverables completed and not complete Acquire Project Team Tools & Techniques – Pre-assignment, Negotiation, Acquisition & Virtual Teams Virtual Teams – rarely meet face to face; collaborate using communications bridge; bonding & team identity hard to create, individual contributions may be overlooked Develop Project Team Tools & Techniques – Interpersonal Skills (soft skills), Training, Team building activities, Ground rules, Co-location, Recognition & rewards (should be part of planning) Team Development Stages: Forming – people are polite, non-committal, hesitant & confused Storming – people begin to assert themselves, conflict arises Norming – team begins to work productively, begin to operate with mutual trust Performing – team working at optimal level Adjourning – completed assignment, mourning Manage Project Team process – monitors individual performance, gives feedback, solves issues & organizes changes to improve performance Conflict is natural and forces the need for exploring alternatives; focus should be on issues, not individuals; should be about present situation, not about past Conflict Management Approaches: Confronting / Problem Solving (Good) – focuses on identifying underlying problems & working out solutions Collaborating (Good) – incorporating insights and viewpoints from different perspectives
  • 14. Smoothing / Accommodating (Bad) –preventing conflict Compromising (Bad) – lose-lose choice Forcing (Bad) – win-lose situation; one side wins, one side loses Withdrawing / Avoiding (Bad) – worst Procurement Management Plan – document that outlines specifics for procuring work from outside sources; specifies types of contracts; describe process for obtaining & evaluating bids, mandates standard procurement documents & describes how to manage providers Procurement Statement of Work (SOW) – detailed description of the resources, goods or services that are being sought from outside source Procurement Process: Plan What you Need? Make or Buy Analysis Where you get them? RFI RFI – List of Supplies / Bidders What you need done? RFP Distribute RFP Conduct Bidders Conference – Questions & Answers Get Bids in from RFP Evaluate Bids -Source Selection Criteria Award Contract – Contract, SOW Admin Proc. Perform Vendor = Seller Grants are RFP’s
  • 15. Standard Parts Things you need Where you get them RFQ Quotes come in from bidders Award Contract Make or Buy Analysis –assess the cost effectiveness of making in-house verses buying outside; factors to consider: Impact – consider the impact on cost, tine or quality Ongoing Need – will organization continue to need a specific skill set? Is it a worthwhile investment to train current personnel? Learning Curve – while it may make financial sense to develop an in-house solution, there may not be enough time to train staff Cost Effectiveness – based on financial analysis Lease, Rent or buy Decision – based on financial analysis Bidders Conference – potential vendors get to ask Questions about RFP; Q&A’s must be distributed to everyone RFP sent too Teaming Agreements – legal contractual agreements; exclusive rights to do something; preferred vendor RFI – use to develop list of qualified sellers RFQ – use to order standard parts; mainly used for comparison purposes when price is the main factor RFP – use when deliverables are not well defined or when you need the seller to solve the problem Types of Contract: Fixed Price – total price for product / service; provides maximum protection to buyer Cost Reimbursable – seller gets a refund of expenses incurred, plus a fee for profit; Cost Plus Award Fee Contract (CPAF) – buyer has subjective determination of performance Time & Materials – buyer pays seller a negotiated hourly rate & full reimbursement for materials used
  • 16. Point of Total Assumption (PTA) – Fixed Price Incentive Fee Contract (FPIF) in which seller bears all cost overruns Conduct Procurement (Executing Process Group) – getting seller responses, vendor selection & contract award Source Selection Criteria – ranking & weighted factors used to evaluate seller’s proposals and to make comparison between proposals; should be included in RFP so bidders know what criteria they will be scored on Procurement Negotiations – 5 steps of contract negotiations Introduction Probing Bargaining Closure Agreement Term Contract – for a specific amount of service over a set time Completion Contract – until project is complete & contract is fulfilled Administering Procurement (Monitoring & Controlling Process Group) – process of managing relationship with vendor/seller Force Majeure Clause – protects parties from extraordinary circumstances, “Act of God” Warranty – promise that goods or services will meet a predefined standard Express Warranty – predetermined standard specified Implied Warranty - predetermined standard NOT specified Warranties of Merchantability – goods fit for sale Warranties of Fitness for Purpose –goods fit for intended use Waivers – giving up a contract right, even inadvertently Breach of Contract – failure to do something in contract Immaterial Breach – minor, no damage to parties Material Breach – series breach, one party is injured Fundamental Breach – negates fundamental part of contract
  • 17. Anticipatory Breach – unavoidable indication that one party can’t fulfill contract Close Procurement happens naturally at end of contract Incomplete Contract Closeout – call sellers ASAP & provide written notice ASAP Contract Closeout Tools – Procurement Audits (verify work performed), Negotiated Settlements (negotiating an end to contract) Alternative Dispute Resolution (ADR) – Mediator handles contract termination negotiations Distribute Project Information – involves getting the right information to the right people at the right time Manage Stakeholders Expectations – occurs at the same time as you update stakeholders on project status Face to face Meetings are the best way to communicate with stakeholders Use Issues Log to assign, track & resolve open issues Monitor & Control Project Work – done throughout the project life cycle Change Categories: Corrective Action – bring back on track Preventive Action – diminish effect of negative risks Defect Repairs – address defects Performance Reports – current project status, significant accomplishments, scheduled activities (completed vs. should be completed), issues & forecasts Perform Integrated Change Control – process of identifying, documenting, approving or rejecting & controlling any changes to the project baseline If a Change is Rejected project manager should get back in touch with Submitter to let them know status Change Control Board (CCB) – addresses issues that affect cost, time & product quality Configuration Management – tool used to manage changes to a product or service being produced; includes version control Process Control Structure – defines how modifications will be reviewed, documented, delivered, communicated & revised
  • 18. Verify Scope (Deliverables / Closing) – process of demonstrating to stakeholders that they have received what they were promised in a given deliverable & getting their acceptance; done after quality control process Inspection (Tool) – an official examination or work results to verify that requirements are met; AKA Review, Product Review, Audit or Walkthrough Control Scope – process of monitoring project scope & holding changes to project scope baseline in check Variance Analysis (Tool) Control Project Schedule – process of monitoring schedule performance & controlling changes to schedule baseline Earned Value Management (EVM) – method of measuring project progress by comparing actual schedule & cost performance against planned performance Budget At Completion (BAC) Planned Value (PV): Time% x BAC; Time% = Status Date/Length of Project Earned Value (EV): EV = $Work% x BAC; $Work% = $Work Done/$TotBudget Actual Cost (AC) – actual money spent for work that has been completed Scheduled Variance (SV): SV = EV – PV (negative SV indicates project is behind schedule) Scheduled Performance Index (SPI): SPI = EV / PV (SPI of less than 1 indicates planned schedule was not very good and you are getting less work done than planned) Cost Variance (CV): CV = EV – AC (negative CV indicates project cost are over budget) Cost Performance Index (CPI): CPI = EV / AC (CPI of less than 1 indicates budget costs were low and you are paying more than planned) Estimate To Complete (ETC): ETC = BAC – EV Estimate At Completion (EAC): EAC = AC + ETC Risk Audit – examining the Team’s ability to identify risks, effectiveness of Risk Response Plan & performance of risk owners
  • 19. Administrative Closure – verifying & documenting project results; ensures project requirements were met Test Strategies for PMP Exam: What should PM do First? Next? Same question, weed out what’s not relevant & what’s already done, then put answers in order Tools & Techniques = 80% of exam; understand them and where they will be used PMO – if in answer, then it is probably the correct choice Check Policy, Procedures & Templates (OPA) first Lessons Learned - if in answer, then it is probably the correct choice Consult the Plan - if in answer, then it is probably the correct choice Conflict question – answer is never about personality Procurement question – never ask seller / vendor to speed up their process; respect vendor’s procurement process Make the Plan, Consult the Plan, Follow the Plan