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TABLE OF CONTENTS 1.

PMP Preparation Guideline...................................................................................................................... 3

2.

PMP Quick Study Reference ..................................................................................................................... 3

3.

PMP 350 One Liner Important Tips.................................................................................................... 58

4.

PMP Numerical Formulas ...................................................................................................................... 76

5.

PMP Frequently Asked Questions (FAQ) .......................................................................................... 77

6.

Exam Day Tips ............................................................................................................................................ 80

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1. PMP Preparation Guideline ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑

Ensure qualifying requirements for PMP Exam Buy PMBOK current edition (PMI Membership) Read PMBOK at least 2 times Follow “Personalized Study Plan” or “Create Your Own Study Plan” Practice the questions knowledge area or by process group Prepare flash cards Implement the PM framework in your projects Apply for PMP Exam Assess your exam readiness by practice/mock exam (200 questions) Use PMP exam Simulator 10 Simulated Model Exam or 2000 (+/-) Scenario based MCQ which is available at (www.pmaspire.com) ❑ Continue mock exam till getting 75% marks in PMaspire Model Exams ❑ Schedule exam day ❑ Pass the Exam 2. PMP Quick Study Reference What is a Project? • • • • • •

Temporary, with defined start and end time Creates a unique product, service, result, or combination thereof Needs resources and budget Must meet stakeholder expectations or requirements Is progressively elaborated Transitions current state to a future state

What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the 49 logically grouped project management processes comprising 5 process groups across 10 knowledge areas. Success is a measure of quality, timeliness, budget compliance, and degree of customer satisfaction. Program Management? A program is defined as a group of related projects, subprograms, and program activities managed in a coordinated manner to obtain benefits not available from managing each individually. Program management focuses on program and project-level interdependencies. Success is a measure of the program’s ability to deliver its intended benefits to an organization.

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Portfolio Management? A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. E.g., A software development firm having a strategic objective to “maximize ROI” may put together a portfolio that includes a mix of projects in ERP, Banking and COTS projects. From this mix the firm may choose to manage related projects as one program. Success is measured in terms of the aggregate investment performance and benefit realization of the portfolio. Operation Management Operations is an organization’s ongoing execution of activities that produce the same product or provide repetitive services. Operations management ensures processes efficiently transform inputs (e.g., materials, labor) into outputs (e.g., products, goods, services). Requires business process management or operations management, e.g., Accounts management, Personnel management, Inventory management, Marketing management, etc. Project Management Office (PMO) A Project Management Office (PMO) is an organizational body or entity assigned various responsibilities related to the centralized coordinated management of projects under its domain. Types of PMO Structure: 1. Supportive - consultative role, low degree of control 2. Controlling - requires compliance, moderate degree of control 3. Directive - manages projects, high degree of control Role of a Project Manager The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project’s objectives. Applies skillsets balanced across technical project management, leadership, and strategic and business management. Interpersonal Skills of a Project Manager Leadership Communicating Political and cultural awareness Conflict management

Team building Influencing Negotiating Coaching.

Motivating Decision making Facilitating

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Enterprise Environmental Factors (EEFs) Conditions outside the immediate control of the project that may impact the organizational, portfolio, program, or project. Internal EEFS to the organization Organizational culture, structure, and governance Geographic distribution of facilitates and resources Infrastructure Information technology software Resource availability Employee capability

External EEFs to the organization Market Place Condition Social and cultural influences and issues Legal restrictions Commercial Databases Academic research Government or industry standards Financial considerations Physical environmental elements

Organizational Process Assets (OPAs) Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization that influence the management of the project. Project Stakeholder Stakeholders are individuals, groups, or organizations that may be affected or perceived affected by a decision, activity, or outcome of a project. Can be internal or external to the project. Involvement may be active, passive, or unaware of the project. May cause or incur a positive or negative impact on or by the project. Stakeholder management throughout the project lifecycle is critical to project success.

ITTO (Inputs, Tools & Technology, Output) Quick Reference Process Develop Project Charter

Knowledge Area Integration Management

Process Group Initiating

Develop Project Charter: process of developing a document that formally authorizes the existence of a project and provides the project manager with authority to apply organizational resources to project activities. INPUTS: Business Documents • Business Case: Justifies and bounds the project. Based on market demand, organizational needs, customer request, technological advance, legal requirement, ecological impacts, social needs. • Benefit Management Plan: The project benefits management plan is the document that describes how and when the benefits of the project will be delivered, and describes the mechanisms that should be in place to measure those benefits. Key benefits includes: Target

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benefits, strategic alignment, timeframe for realizing benefits, benefit owners, metrics, assumptions, risks etc. Agreements: defines initial intentions for a project. A contract from the customer’s acquiring organization is an input if the project is being done for an external customer, e.g., Contracts, Service Level Agreements (SLAs), MOUs, LOIs, etc. EEFs/OPAs: factors and assets that may influence the project’s charter. TOOLS & TECHNIQUES: Expert Judgment: Other units within the organization, Consultants, Stakeholder, including customers and sponsors, Professional and technical associations, Industry groups, Subject matter experts, Project Management Office (PMO). Data Gathering: brainstorming, focus groups, interviews. Interpersonal and Team Skills: conflict management, facilitation, meeting management. Meetings: identify project objectives, success criteria, key deliverables/requirements/milestones, etc. OUTPUTS: Project Charter: Project purpose, measurable project objectives and related success criteria, high-level requirements, high-level project description, overall project risk, summary milestone schedule, preapproved financial resources, key stakeholder list, project approval requirements, assigned project manager with responsibility and authority level, and name and authority of the sponsor or other person(s) authorizing the project charter. Assumption Log: records the assumptions and constraints identified in the business case and as developed throughout the project life cycle. Process Develop Project Management Plan (PMP)

Knowledge Area Integration Management

Process Group Planning

Develop PMP: Document actions that define how the project is to be executed, monitored, controlled, and closed. The PMP integrates and consolidates all of the subsidiary management plans, baselines, and additional project documents (e.g., activity attributes, issue log, lessons learned register, quality metrics, resource calendars, etc.) necessary to manage the project. INPUTS: Project Charter: provides high-level information to be elaborated in the PMP. Outputs from other Processes: includes subsidiary plans, baselines, and associated changes. EEFs/OPAs: factors and assets that may influence the PMP.

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TOOLS & TECHNIQUES: Expert Judgment: Expertise from individuals or groups with specialized knowledge of or training to tailor, develop, determine, define, and prioritize project activities and work. Data Gathering: brainstorming, checklists, focus groups, interviews. Interpersonal and Team Skills: conflict management, facilitation, meeting management. Meetings: discuss the project approach, determine how work will be executed to accomplish project objectives and establish the way the project will be monitored and controlled. OUTPUTS: PMP: describes how the project will be executed, monitored, controlled, and closed and includes baselines and subsidiary plans: Project Baselines: Scope Baseline, Schedule Baseline, and Cost Baseline Subsidiary Plans: 1. 2. 3. 4. 5. 6. 7.

Scope Management Plan Requirements Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Resource Management Plan Communications Management Plan

Process Direct and Manage Project Work

8. 9. 10. 11. 12. 13. 14.

Risk Management Plan Procurement Management Plan Stakeholder Engagement Plan Change Management Plan Configuration Management Plan Project life cycle description Development approach

Knowledge Area Integration Management

Process Group Executing

Direct and Manage Project Work: Execute the work defined in the PMP to accomplish established objectives. Direct and Manage Project Work also requires implementation of approved changes covering: • • •

Corrective Action: Documented direction for executing the project work to bring the expected future performance of the project work in line with the project management plan Preventive Action: A documented direction to perform an activity that can reduce the probability of negative consequences associated with project tasks. Defect Repair: The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component.

INPUTS: PMP: any component in the PMP may be an input to this process.

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Project Documents: typically includes change log, lessons learned register, milestone list, project communications, project schedule, requirements traceability matrix, risk register, and risk report, amongst others. Approved Change Requests: may be a corrective or preventive action, or a defect repair. EEFs/OPAs: includes organizational structures and standards, infrastructure, stakeholder risk thresholds, and issues and defects procedures/databases, amongst others. TOOLS & TECHNIQUES: Expert Judgment: Expertise from individuals or groups with specialized knowledge of or training on technical knowledge, cost and budget management, legal, procurement, and others. Project Management Information System (PMIS): IT software tools such as scheduling, work authorizations, and others. Meetings: to discuss and address pertinent topics for directing and managing project work. OUTPUTS: Deliverables: A deliverable is any unique and verifiable product, result, or capability to perform a service required to be produced to complete a process, phase, or project. Work Performance Data: Raw observations and measurements of work completed, including KPIs, technical performance measures, actual start/finish dates, deliverable status, schedule progress, cost incurred, amongst others. Issue Log: project document where all issues (problems, gaps, inconsistencies, or conflicts) are recorded and tracked. The project manager tracks and manages issues until resolved. Change Requests: formal process to modify any document, deliverable, or baseline, includes Corrective and preventive actions, Defect repair, and Updates to formally controlled project documents. PMP, Project Documents, and OPAs: update as a result of this process. Process Manage Project Knowledge

Knowledge Area Integration Management

Process Group Executing

Develop Project Charter: process of using existing knowledge (explicit and tacit) and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. INPUTS: PMP: all PMP components are inputs.

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Project Documents: includes lessons learned register, project team assignments, resource breakdown structure, and stakeholder register. Deliverables: any unique and verifiable product, results, or capability to perform a service that is required to be produced to complete a process, phase, or project. EEFs/OPAs: factors include organizational culture, geographic distribution of facilities and resources, organizational knowledge experts, and legal/regulatory requirements/constraints. OPAs include organizational standards, personnel administration (e.g., training records), and other internal assets. TOOLS & TECHNIQUES: Expert Judgment: expert individuals or groups in knowledge/information management and organizational learning. Knowledge and Information Management: the tools and techniques that connect people so they can work together to create, share, and integrate team knowledge. Interpersonal and Team Skills: includes active listening, facilitation, leadership, networking, etc. OUTPUTS: Lessons Learned Register: records challenges, problems, realized risks and opportunities, and other related content. Organized into categories with descriptions, impact, recommendations, and proposed actions associated with the situation. PMP: any PMP component may be updated as a result of this process. OPAs: new knowledge can be codified or embedded in organizational process assets. Process Monitor & Control Project Work

Knowledge Area Integration Management

Process Group Monitor & Control

Monitor & Control Project Work: Process of tracking, reviewing, and reporting the overall progress to meet performance objectives defined in the PMP. Occurs throughout the project lifecycle. INPUTS: PMP: all PMP components are inputs. Project Documents: includes assumption log, BOEs, cost/schedule forecasts, issue log, lessons learned register, milestone list, quality reports, and risk register and report, amongst others. Work Performance Information (WPI): gathered through work execution and passed to the controlling processes. Becomes WPI when compared to PMP components (e.g., scope, schedule, budget, and quality defined at project start).

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Agreements: Such as comparing work performed to the terms and conditions contained in procurement agreements. EEFs/OPAs: factors include PMIS (i.e., scheduling, costs, databases), infrastructure, stakeholder expectations and risk thresholds, and government/industry standards. OPAs include organizational standards, financial controls, monitoring/reporting methods, issue management procedures, etc. TOOLS & TECHNIQUES: Expert Judgment: Individuals or groups expert earned value analysis, interpretation and contextualization of data, trend analysis, industry knowledge, risk and contract management. Data Analysis Techniques include: 1. Alternative analysis 2. Cost-benefit Analysis 3. Regression 4. Causal Analysis 5. Root Cause Analysis 6. Forecasting methods (time series, scenario building, etc.)

7. 8. 9. 10. 11. 12.

Fault Tree Analysis (FTA) Reserve Analysis Failure mode and effect analysis (FMEA) Trend Analysis Earned Value Analysis Variance Analysis

Decision Making: includes voting to make decisions based on unanimity, majority, or plurality. Meetings: may be face-to-face, virtual, formal, or informal. Members may be from the project team or other project stakeholders when appropriate. OUTPUTS: Work Performance Reports: such as status reports and progress reports. Used to create awareness and generate decisions or actions. Change Requests: result of comparing planned results to actual results. Can initiate formal process to modify any document, deliverable, or baseline, includes Corrective and preventive actions, Defect repair, and Updates to formally controlled project documents. PMP: Any PMP component may be updated via the organization’s change control process as a result of this process. Project Documents: may include cost forecasts, issue log, lessons learned register, risk register, and schedule forecasts. Process Perform Integrated Change Control

Knowledge Area Integration Management

Process Group Monitor & Control

Perform Integrated Change Control: Reviewing change requests (e.g., project scope, baselines, project plans and artifacts), approving changes, managing changes, and communicating change decisions. ✓ The Change Control Board (CCB) is responsible for approving or rejecting change requests.

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✓ Roles and responsibilities of CCB are defined within configuration control and change control procedure. INPUTS: PMP: PMP components include change management plan, configuration management plan, and baselines for scope, schedule, and cost. Project Documents: includes BOEs, requirements traceability matrix, and risk report, amongst others. Work Performance Reports: include resource availability, schedule and cost data, earned value reports, and burnup or burn down charts. Change Requests: many processes produce change requests as an output and may include corrective or preventive action, defect repairs, and updates to formally controlled documents and/or deliverables. EEFs/OPAs: factors and OPS involved are those that can influence the Perform Integrated Change Control Process. TOOLS & TECHNIQUES: Expert Judgment: Individuals or groups expert in technical and industry knowledge areas of the project, legislation and regulation, legal and procurement, and configuration and risk management. Change Control Tools: the manual or automated tools used to facilitate configuration and change management. Data Analysis: techniques including alternative analysis and cost-benefit analysis, and others. Decision Making: includes voting, autocratic decision making, multi-criteria decision analysis. Meetings: Change control meetings are held with a change control board (CCB) responsible to approve, reject, or defer change requests. OUTPUTS: Approved Change Requests: processed according to the change management plan by the project manager, CCB, or an assigned team member. Changes may be approved, deferred, or rejected. PMP: Any PMP component may be updated via the organization’s change control process as a result of this process. Does not change past performance but can change the last baseline for going forward. Project Documents: uses the change log to record changes that occur during a project. Process Close Project or Phase

Knowledge Area Integration Management

Process Group Closing

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Close Project or Phase: Finalize all activities to formally close the project, phase, or contract. Information is archived, planned work is completed, and resources are released to pursue new endeavors. INPUTS: Includes project charter, PMP, project documents (e.g., assumption log, BOEs, change logs, issues logs, lessons learned, quality reports, risk register and report, etc.), Accepted deliverables, business documents (business case and benefits management plan), agreements, procurement documentation, agreements, and OPAs. TOOLS & TECHNIQUES: Expert Judgment: Individuals or groups expert in management control, audit, legal and procurement, and legislation and regulation. Data Analysis: techniques including document analysis, regression analysis, trend analysis, and variance analysis, amongst others as applicable. Meetings: used to confirm that deliverables have been accepted, validate that exit criteria have been met, formalize contract completions, evaluate stakeholder satisfaction, gather lessons learned, transfer project knowledge and information, and to celebrate success. OUTPUTS: Final Product, Service, or Result Transition: Formal acceptance and delivery/transition of the final product, service or result that the project was authorized to produce. The acceptance includes receipt of a formal statement that the terms of the contract have been met. Final Report: Summarizes project performance. OPAs: Provide updates to project documents, operational and support documents, project or phase closure documents, and the lessons learned repository. Process Plan Scope Management

Knowledge Area Scope Management

Process Group Planning

Plan Scope Management: The process of creating a scope management plan that documents how the project scope will be defined, monitored, validated, and controlled. • • • •

Product scope: The features and functions that characterize the product, service, or result. Project Scope: The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. Requirements define the product behavior and indicate what the users want from the product. Scope indicates the approved activities that need to be done in order to achieve the requirements. Uncontrolled expansion (no adjustment to time, cost, and resources) to product or project scope is called scope creep.

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INPUTS: Include the Project Charter, PMP (e.g., quality management plan, project life cycle descriptions, and development approach), and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgment: Expert individuals or groups with specialized knowledge of previous similar projects and information in the industry, discipline, and application area. Data Analysis: techniques including alternatives analysis amongst others. Meetings: used to develop the scope management plan. OUTPUTS: Scope Management Plan: processes include: ▪ Preparing a detailed project scope statement. ▪ Enable the creation of WBS. ▪ Establish how the scope baseline will be approved and maintained. ▪ Specifies how formal acceptance of completed deliverables will be obtained. Requirements Management Plan: describes how requirements will be analyzed, documented, and managed. It includes, but not limited to: • How requirements activities will be planned, tracked and reported. • Configuration management activities. • Requirements prioritization process. • Metrics and rationale for using them. • Traceability structure. Process Collect Requirement

Knowledge Area Scope Management

Process Group Planning

Collect Requirement: Process of determining, documenting, and managing stakeholder needs and requirements to ensure project objectives are met. INPUTS: Inputs include project charter (high-level project descriptions and requirements), PMP (e.g., scope, requirements, and stakeholder engagement plans), project documents (including assumption log and lessons learned and stakeholder registers), business documents, agreements, EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgment: Expert individuals or groups with specialized knowledge or training in business analysis, requirements elicitation and documentation, diagramming techniques, facilitation, and conflict management. Data Gathering: • Brainstorming: to generate and collect multiple ideas for project and product requirements.

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Interviews: Project Manager or Business Analyst will Interview Subject matter experts often in a one-to-one meeting to identify and define the features and functions of the desired deliverable. Focus Groups: Another way to get groups of people to discuss their needs. The key to this tool lies in picking the subject matter experts and stakeholders to participate in the focus group. Questionnaires and surveys: written questions designed to quickly accumulate information from many respondents. Benchmarking: comparing actual or planned products, processes, and practices to comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance. The organizations compared during benchmarking can be internal or external. Questionnaires and Surveys: written questions designed to quickly accumulate information from many respondents.

Data Analysis: of agreements, business plans/processes/rules, process flows, Use Cases, and others. Decision Making: techniques include: • Voting: Unanimity: everyone agrees on a course of action; Majority: support reached from more than 50% of the group members; Plurality: the largest block in a group decides even if a majority is not achieved. • Dictatorship: one individual makes the decision for the group. • Autocratic: group decision occurs by one individual. • Multi-criteria Decision Analysis: decision matrix used to provide a systematic analytical approach for establishing criteria (e.g., risk levels, uncertainty, and valuation). Data Representation: Affinity Diagrams to sort and group large numbers of ideas and Mind Mapping to consolidate brainstorming ideas. Interpersonal and Team Skills: includes the Nominal Group Technique where brainstormed ideas are voted upon and sorted by priority, Delphi Technique (relies on anonymity), observation/conversations, and facilitation (e.g., JAD, QFD, User Stories). Context Diagram: Produces a scope model to visually depict systems, people, and interactions. Prototyping: obtains early feedback on requirements by providing a model of the pre-built expectant product. Storyboarding (using illustrations) is a related technique. OUTPUTS: Requirements Documentation: includes Business Requirements, Stakeholder requirements, Solution requirements (functional and nonfunctional), Transition and readiness requirements, Project requirements, and quality requirements. Requirements Traceability Matrix (RTM): Requirements traceability matrix is a table that links requirements to their origin and tracks them throughout the project life cycle. Process Define Scope

Knowledge Area Scope Management

Process Group Planning

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Define Scope: Developing a detailed description of the project and product, service, or result, and provides a basis for future decisions. Can be highly iterative in life cycle projects. INPUTS: include Project Documents (e.g., assumption log, requirements documentation, and risk register), and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgment: By any group or individual with specialized knowledge or training on similar projects. Data Analysis: includes alternative analysis to evaluate ways to meet the requirements and objectives identified in the charter. Decision Making and Interpersonal and Team Skills: (reference the Collect Requirements Process). Product Analysis: used to define products and services. Techniques include product breakdown, systems analysis, requirements analysis, systems engineering, value engineering, and value analysis. OUTPUTS: Project Scope Statement: Is much more detailed than the Project Charter as it describes project and product scope, major deliverables (in detail), assumptions, and constraints. Includes the work required to create the deliverables. Project Document Updates: include assumption log, requirements documentation, RTM, and stakeholder register, amongst others. Process Create WBS

Knowledge Area Scope Management

Process Group Planning

Create WBS: Subdividing project deliverables and project work into smaller, more manageable components. Provides a framework of items that must be delivered. INPUTS: PMP (scope management plan), project documents (scope statement, requirements documentation), and EEFs/OPAs (e.g., industry standards, lessons learned). TOOLS & TECHNIQUES: Expert Judgment: By any group or individual with specialized knowledge or training on similar projects. Decomposition: technique that subdivides project scope and deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. OUTPUTS: Scope Baseline: • Project scope statement - approved and detailed.

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Work Breakdown Structure (WBS) - hierarchical decomposition of the total scope of work. Work Package: lowest level of the WBS is a work package with a unique identifier. Planning package - is a WBS component below the control account and above the work package. WBS Dictionary: Code of work package, description of work, responsible organization/person, duration, effort, milestone, and resources required, technical reference, etc.

Project Document Updates: including assumption log and requirements documentation. Process Validate Scope

Knowledge Area Scope Management

Process Group Monitor & Control

Validate Scope: Formal acceptance of the completed project deliverables. Occurs periodically throughout the project and brings objectivity to the formal acceptance process. INPUTS: includes PMP (scope and requirements management plans, scope baseline), project documents (lessons learned register, quality reports, requirements documentation, and RTM), verified deliverables, and work performance data (e.g., number and severity of nonconformities). TOOLS & TECHNIQUES: Inspection: includes activities such as measuring, examining, and validating to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called reviews, product reviews, and walkthroughs. Decision Making: includes voting to reach a conclusion when the validation is performed by the project team and other stakeholders. OUTPUTS: includes accepted deliverables (signed and approved by the customer or sponsor), WPI (those accepted and not accepted with reasons why), change requests, and project document updates (e.g., lessons learned register, requirements documentation, and RTM). Process Control Scope

Knowledge Area Scope Management

Process Group Monitor & Control

Control Scope: Monitoring the status of the project and product scope and managing changes to the scope baseline. Ensure the scope baseline is maintained throughout the project and helps control scope creep. INPUTS: PMP: plans typically referenced include scope management, requirements management, change management, and configuration management. Also involves the scope baseline and performance measurement baseline. Project Documents: includes lessons learned register, requirements documentation, and RTM.

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Work Performance Data: reveals the number of change requests received and accepted; as well as the number of deliverables verified, validated, and completed. OPAs: entails formal and informal scope, control-related policies, procedures, guidelines, and methods and templates for monitoring and reporting. TOOLS & TECHNIQUES: Variance Analysis: Project performance measurements are used to assess the magnitude of variation from the original scope baseline’ and if corrective or preventive action is needed. Trend Analysis: examines project performance over time to determine if performance is improving or deteriorating. OUTPUTS: WPI: Correlated and contextualized on how the project and product scope are performing compared to the scope baseline. Change Requests: Analysis of project performance may result in change requests to baselines and PMP components. Project Documents Updates: includes lessons learned register, requirements documentation, and RTM. Process Plan Schedule Management

Knowledge Area Schedule Management

Process Group Planning

Plan Schedule Management: Establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. Provides guidance and direction on how the project schedule will be managed. INPUTS: Includes project charter for summary milestones, PMP for scope management plan and development approach, and EEFs/OPAs (e.g., scheduling software tools and historical information). TOOLS & TECHNIQUES: Expert Judgment: By any group or individual with specialized knowledge or training on similar projects involving schedule development, management, control, methodologies, scheduling software, and related industry. Data Analysis: Alternatives analysis to determine schedule methodology, level of detail, durations, and appropriate efforts to review and update. Meetings: Involves the project manager, sponsor, selected team members and stakeholders, and anyone with responsibility for schedule planning, execution.

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OUTPUTS: Schedule Management Plan: Provides the criteria and activities to develop, monitor, and control the schedule. Includes: • • • • • •

Project Schedule Model Development: Scheduling methodology and the scheduling tool Release and iteration length (for time-boxed periods) Level of accuracy: Estimation acceptable range Unit of Measures: Staff hours, staff days, or weeks, etc. Rules of Performance Management: to establish %-complete, Earned Value Management (EVM) techniques, and schedule performance measurements (e.g., SV, CV, SPI, TCPI, etc.). Reporting Formats: Formats and frequency of various schedule reports etc.

Process Define Activities

Knowledge Area Schedule Management

Process Group Planning

Define Activities: Identify, define, and document the specific actions to be performed to produce the project deliverables; results in the activity and milestone list, and updated cost and schedule baselines. INPUTS: includes PMP (schedule management plan and scope baseline), and EEFS/OPAs (e.g., PMIS and lessons learned, activity definitions, etc.). TOOLS & TECHNIQUES: Expert Judgment: By any group or individual with specialized knowledge or training on similar projects and the work being performed. Decomposition: Technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts required to complete a work package. Rolling Wave Planning: Rolling wave planning is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail at a low level of WBS, while future work is planned for the WBS components that are at relatively high WBS levels. Meetings: Involves selected team members and subject matter experts able to define the activities required to complete the work. OUTPUTS: Activity List: Activity list is a comprehensive list including all schedule activities required on the project. Agile techniques apply periodic updates as the project progresses. Activity Attributes: •

Activity attributes extend the description of the activity by identifying the multiple components associated with each activity.

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The component of each activity evolves over time. During the initial stages of the project they include the Activity ID, WBS ID, and activity name, and when completed may consist of activity codes, activity description, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constrain and assumptions.

Milestone List: A milestone is a significant point or event in the project. A milestone has zero duration because it represents a moment (point or event) in time. PMP Updates: includes changes to the schedule and cost baselines. Process Sequence Activities

Knowledge Area Schedule Management

Process Group Planning

Sequence Activities: Identify and document the logical relationships and dependencies among the project activities. Convert the activities list to a logical sequence diagram designed to maximize efficiencies based on project constraints. INPUTS: includes PMP (schedule management plan and scope baseline), project documents (describing activities, assumptions, and milestones), and EEFs/OPAs. TOOLS & TECHNIQUES: Precedence Diagramming Method (PDM): A method used in Critical Path Methodology (CPM) for constructing a project schedule network diagram that uses boxes or rectangles, referred to as nodes, to represent activities, and connects them with arrows that show the logical relationships that exist between them. This technique is also called Activity-on-Node (AON) and is the method used by most project management software packages. Four types of logical relationships/dependencies: • • • •

Finish-to-start (FS): A successor activity cannot start until a predecessor activity has finished. Example: The awards ceremony (successor) cannot start until the race (predecessor) has finished or only after finishing analysis can the design work start. FS is the most common type. Finish-to-finish (FF): A successor activity cannot finish until a predecessor activity has finished. Example: Writing a document (predecessor) is required to finish before editing the document (successor) can finish. Start-to-start (SS): A successor activity cannot start until a predecessor activity has started. Example: Level concrete (successor) cannot begin until pour foundation (predecessor) begins. Start-to-finish (SF): A successor activity cannot finish until a predecessor activity has started. Example: The first security guard shift (successor) cannot finish until the second security guard shift (predecessor) starts.

Dependency Determination and Integration: The sequence of activities is determined based on the following dependencies: •

Mandatory Dependency (Hard Logic) A mandatory dependency is inherent in the nature of the work being done (e.g., must design before can construct) or is required by the contract.

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Discretionary Dependency (Preferred, Preferential, or Soft Logic): The project manager or team determines this dependency. Can change a discretionary dependency if needed but cannot easily change the other types of dependencies. External Dependency: The dependency is based on the needs or desires of a party outside the project (e.g., government or suppliers). Internal Dependencies: Internal dependencies involve a precedence relationship between project activities and are generally inside the project team’s control. For example, ‘unable to test a machine until assembled’ is an internal mandatory dependency.

Time between Predecessor and Successor Activities: •

Lead: A lead allows an acceleration of the successor activity. For example, on a project to construct a new office building, the landscaping could be scheduled to start 2 weeks ‘prior’ to the scheduled punch list (list of contract items) completion. This would be shown as a FS with a 2-week lead. LAG: A lag directs a delay in the successor activity. For example, a technical writing team can begin editing the draft of a large document 15 days ‘after’ writing has started. This could be shown as an SS relationship with a 15-day lag.

PMIS: scheduling software used to help plan, organize, and adjust activity sequence based on logical relationships, lead/lag, and dependencies. OUTPUTS: Project Schedule Network Diagram: A graphical representation of the logical relationships, also referred to as dependencies, among the project schedule activities. Depicts a project schedule network diagram. Project Documents Updates: includes activity attributes and list, milestone list, and assumption log. Process Estimate Activity Durations

Knowledge Area Schedule Management

Process Group Planning

Estimate Activity Durations: Estimate the number of work periods (amount of time) needed to complete individual activities with estimated resources (e.g., amounts, types, and skill levels). INPUTS: Includes PMP (schedule management plan and scope baseline), project documents (including activities, assumptions, lessons learned, team assignments, resource breakdown structure / calendars / requirements, and risk register), and EEFs/OPAs (e.g., productivity metrics, historical information, etc.). TOOLS & TECHNIQUES: Expert Judgment: By any group or individual with specialized knowledge or training on schedule development, estimating, and discipline or application knowledge. Analogous Estimating: Top-down estimating, uses the actual duration of activities from historical data on previous, similar projects. Is less costly and less time-consuming, but tends also to be less accurate.

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Parametric Estimating: Top-down estimating, activity duration can use a mathematical model to determine estimates. Estimating the basis for activity duration can be quantitatively determined by multiply the quantity of work to be performed by the productivity rate, e.g., Function Point Estimation, Use Case Estimation. Three Point Estimating: Estimating an average of the most likely, optimistic (best-case scenario), pessimistic (worst-case scenario) estimated duration. Bottom-Up Estimating: Estimates by aggregating the estimates of the lower-level WBS components. Data Analysis: including alternatives analysis (e.g., schedule compression, make or buy, etc.) and reserve analysis (i.e., amount of contingency and management reserve needed for the project). Decision Making: such as voting, including Agile methods use of fist of five for levels of support. Meetings: Agile methodology conducts sprints or iterative planning meetings to discuss prioritized product backlog items and decide which the team will commit in the upcoming iterations. OUTPUTS: Duration Estimates: Activity duration estimates are quantitative assessments of the likely number of work periods that will be required to complete an activity. Activity duration estimates may include some indication of the range of possible results. For example, 2 weeks +/- 2 days to indicate that the activity will take at least eight days and no more than twelve (assuming a five days work week). Percent of probability can also be provided. Basis of Estimate: provides amount and type of details to give a clear and complete understanding of how the duration was derived. Project Documents Updates: includes activity attributes, assumption log, and lessons learned register. Process Develop Schedule

Knowledge Area Schedule Management

Process Group Planning

Develop Schedule: Analyze sequences, durations, resources and constraints to document project schedule. INPUTS: includes PMP for schedule management plan and scope baseline, project documents for activity attributes and list, assumption log, BOE, duration estimates, lessons learned, milestone list, network diagrams, team assignments, recourse calendars and risk register, contract agreements, and EEFs/OPAs. TOOLS & TECHNIQUES: Schedule Network Analysis: overarching and iterative technique to generate the project schedule model.

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Critical Path Method (CPM): is a procedure for using network analysis to identify those tasks which are on the critical path (longest path = zero float), such that any delay in the completion of these tasks will lengthen the project timescale (day-for-day extension) unless action is taken. Types of Float: • • •

Total Float (Slack): The amount of time an activity can be delayed without delaying the project end date or/and intermediary milestone. Free Float (Slack): The amount of time an activity can be delayed without delaying the start of its successor. Project Float: The amount of time a project can be delayed without delaying the externally imposed project completion date.

Critical Chain Method (CCM): schedule network analysis techniques that modifies the project schedule to account for limited resources. Resource Optimization Technique: • Resource Leveling: start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply. Resource leveling can often cause the original critical path to change, usually to increase. • Resource Smoothing: adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predefined resource limits. Data Analysis: • What-If Scenario Analysis: evaluating scenarios in order to predict their effect, positively or negatively, on project objectives. This is an analysis of the question, “What if the situation represented by scenario ‘X’ happens?” • Simulation: involves calculating multiple project durations with different sets of activity assumptions, usually using probability distributions constructed from the three-point estimates to account for uncertainty. The most common simulation technique is Monte Carlo, in which a distribution of possible activity durations is defined for each activity and used to calculate a distribution of possible outcomes for the total project. Leads and Lags: see Sequencing Activities. Leads are refinements applied during network analysis to develop a viable schedule by adjusting the start time of the successor activities and advance a successor activity with respect to the predecessor activity, while Lags are used where processes require a set period of time to elapse between the predecessor and successors without work or resource impact. Schedule Compression: • Crashing: Cost and schedule trade-offs are analyzed to determine how to obtain the greatest amount of compression for the least incremental cost. Example: approving overtime, adding additional resources, or paying to expedite delivery to activities on the critical path. Crashing may result in increased risk and cost. • Fast Tracking: phases or activities normally performed in sequence are performed in parallel. Example is constructing the foundation for a building before completing all architectural drawings. Fast tracking may result in reword and increased risk. PMIS: Uses software that expedites the process of building a schedule model.

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Agile Release Planning: Provides a high-level summary timeline of the release schedule; also determines the number of iterations or sprints in the release so can adjust durations based on business goals, dependencies, and impediments. OUTPUTS: Schedule Baseline: the approved version of a schedule model; is a PMP component. Project Schedule: Can be displayed as Bar charts (also known as Gantt charts), Milestone charts, and Project schedule Network diagrams (activity-on-node). Schedule Data: information that describes and help for controlling schedule. Information includes resource requirements by time period, alternative schedules, and applied schedule reserves, etc. Other outputs: Include Project Calendars, Change Requests, PMP updates (e.g., schedule management plan and cost baseline), and project document updates. Process Control Schedule

Knowledge Area Schedule Management

Process Group Monitor & Control

Control Schedule: Monitor, control, and manage changes to the project schedule baseline. Requires knowing actual performance to date and controlling change. INPUTS: Include PMP (schedule management plan; and schedule, scope, and performance measurement baselines), Project Documents (from lessons learned register, project calendars and schedule, resource calendars, and schedule data), Work Performance Data (activities started, in progress, and finished), and OPAs. TOOLS & TECHNIQUES: Data Analysis: • • • • • •

Earned Value Analysis - to assess the magnitude of variations to schedule baseline. Iteration Burndown Chart - forecasts completion based on remaining work. Performance Reviews Trend Analysis - based on improving or deteriorating performance. Variance Analysis What-if scenarios analysis -as guided by the Project Risk Management processes.

Critical Path Method: comparing progress along the critical path helps identify schedule risk. PMIS: for tracking, reporting, and forecasting. Other tools/techniques include: Resource Optimization, Leads/Lags, and Schedule Compression.

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OUTPUTS: Work Performance Information: Compares project work to schedule baseline. The calculated SV and SPI time performance indicators for WBS components, e.g., the work packages and control accounts, are documented and communicated to stakeholders. Schedule Forecasts: are estimates of predictions of conditions and events in the project’s future based on information and knowledge available at the time of the forecast. Other Outputs include Change Requests, PMP Updates, and Project Document Updates. Process Plan Cost Management

Knowledge Area Cost Management

Process Group Planning

Plan Cost Management: Provides guidance on how project costs will be estimated, budgeted, managed, monitored, and controlled. Is a PMP component. Life Cycle Costing: the cost of using, maintaining, and supporting the product, service or result of the project, but it is not part of the project's budget (may get many questions on life cycle costing). Types of Costs: • Fixed - rent of the seminar room is a fixed cost • Variable – cost of food to participants varies with the number of participants • Direct – hiring of PA system for the seminar, Cost of gravel, sand, cement, and wages incurred on production of concrete • Indirect – cost of electricity of the venue is shared by all the other users, Cost of depreciation, insurance, power, salaries of supervisors incurred in a concrete plant INPUTS: Includes PMP for schedule and risk management plans (reveals the processes and controls that will impact cost estimation and management), and EEFs/OPAs for external markets and internal financial procedures. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on previous similar projects; industry, discipline or application knowledge; cost estimating and budgeting, and EVM. Data Analysis: including alternatives analysis (e.g., reviewing strategic funding options) and ways to acquire resources such as making, purchasing, renting, or leasing. OUTPUTS: Cost Management Plan: Describes how the project costs will be planned, structured, and controlled. Established the following: • •

Units of measure: staff hours/days/weeks, meters, tons, pages, etc. Level of precision: decimals, rounding, etc.

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Level of accuracy: such as +/- 10%. Organizational procedures links: includes WBS control accounts, accounting system. Control thresholds: variance thresholds from baseline for monitoring costs performance. Rules of performance measurement: EVM rules and tracking methodologies. Reporting formats: and frequency of cost reports. Additional details: describes funding choices, accounting for exchange rate fluctuations, etc.

Process Estimate Costs

Knowledge Area Cost Management

Process Group Planning

Estimate Costs: Develop an approximation of the costs of resources needed to complete the project work. Determines the monetary resources required for the project. Rough Order of Magnitude (ROM): • Initial Stage: -25% to +75% • Later Stage (when more information is known): -5% to +10% INPUTS: include the PMP for cost and quality management plans and scope baseline for scope statement and WBS information. Also includes project documents for lessons learned, project schedule, resource requirements, and risks. EEFS/OPAs provide market and costing information and policies. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on previous similar projects; industry, discipline or application knowledge; and cost estimating methods. Analogous Estimating: Using actual cost of previous, similar projects as the basis for costing current project. This method is less costly than other techniques but is less accurate. Most reliable when previous projects are similar. Parametric Estimating: Uses statistical relationship between relevant historical data and other variables (e.g., required work hours, square footage in construction, etc.). Bottom-up Estimating: Estimating the cost of individual work packages or schedule activities with the lowest level of detail. This detailed cost is then summarized or ‘rolled up’ to higher levels for reporting and tracking purposes. Usually is more accurate than Analogous Estimating. Three-Point Estimating: PERT uses three estimates to define an approximate range for an activity’s cost: • Triangular distribution: {Optimistic + Most Likely + Pessimistic} / 3. • Beta distribution: {Optimistic + (4 * Most Likely) + Pessimistic} / 6. Data Analysis: including alternatives analysis (e.g., options to execute and perform), reserve analysis (for contingencies, become part of cost baseline), and cost of quality (additional investment versus cost of nonconformance). PMIS: Uses spreadsheets, simulation software, and statistical analysis tools to assist cost estimating.

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Decision Making: such as voting; increase team member engagement and committing to the estimates. OUTPUTS: Cost Estimates: includes quantitative and contingency amounts needed for all resources (labor, materials, equipment, services, facilities, IT, and special categories such as interest charges, exchange rate changes, etc. Basis of Estimates: The amount and type of additional details supporting schedule activity cost estimate vary by application area. Documenting the supporting detail for activity cost estimate vary by application area, including: • Basis of the estimate development • Assumptions made • Any known constraints • Identified risk included in estimates. • Range of estimates • Confidence level of the final estimate Project Document Updates: includes assumption log, lessons learned register, and risk register. Process Determine Budget

Knowledge Area Cost Management

Process Group Planning

Determine Budget: Aggregating estimated costs to establish an authorized cost baseline. Determines the cost baseline to which project performance can be monitored and controlled. INPUTS: Inputs include the PMP (cost and resource management plans, scope baseline), project documents (e.g., BOEs, schedule, risk register), business documents, agreements, and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on previous similar projects; industry, discipline or application knowledge; financial principles, and funding sources. Cost Aggregation: Cost estimates of all activities in each work package are aggregated in accordance with the WBS. Data Analysis: includes reserve analysis to establish contingency reserves, such as the management contingency reserve, that are allowances for ‘unknown unknowns’ risks identified in risk register. PM needs approval for using such reserves. They are not part of project cost baseline, but are included in the budget for the project. Historical Information Review: assists in developing parametric estimates or analogous estimates. Funding Limit Reconciliation: The expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project.

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Financing: acquiring project funds which may require external sources for long-term infrastructure, industrial, and public service projects. OUTPUTS: Cost Baseline: Is the approved time-phased project budget used to measure, monitor, and control overall cost performance on the project. It is developed as a summation of the approved budgets by time period and is typically displayed in the form of an S-curve. Project Funding Requirements: Get funding requirements, total and by period (e.g., annual or quarterly) as derived from the cost baseline, which can exceed (usually by a margin) to allow for either early progress or cost overruns. Project Document Updates: includes cost estimates, project schedule, and risk register.

Process Control Costs

Knowledge Area Cost Management

Process Group Monitor & Control

Control Costs: Monitoring project status to update the project costs (authorized budget) and managing changes to the cost baseline throughout the project. INPUTS: include PMP (cost management plan, cost baseline, and performance measurement baseline via EV), project documents (e.g., lessons learned register), project funding requirements, work performance data for costs that have been authorized/incurred/invoiced/paid, and OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training including on variance analysis, earned value analysis, forecasting, and financial analysis. Data Analysis: including alternatives analysis (e.g., options to execute and perform), reserve analysis (for contingencies, become part of cost baseline), and cost of quality (additional investment versus cost of nonconformance). Earned Value Analysis (EVA): compares the performance measurement baseline to the actual schedule and cost performance. EVM integrates project baselines (scope, cost, and schedule) to form the performance measurement baseline. EVM develops and monitors: • Planned Value (PV): authorized budget assigned to scheduled work. • Earned Value (EV): measure of work performed to the authorized budget for that work. • Actual Cost (AC): realized cost incurred for activity work performed during a specific time period. Variance Analysis: used in EVM helps explain variances for cost (CV = EV – AC), schedule (SV = EV – PV), and at completion (VAC = BAC – EAC). Cost and schedule variances are the most frequently analyzed measurements. Schedule Performance Index (SPI) is the ratio measuring schedule efficiency, and Cost Performance Index (CPI) is the ratio measuring cost efficiency of budgeted resources. Trend Analysis comparing PV, EV, and AC, and forecasting charts aid in observing variances to baselines.

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Reserve Analysis: monitors the status of contingency and management reserves and if reserve amounts or if more reserves are needed. PMIS: Used to monitor, display, and forecast using PV, EV, AC, and other variance data and indexes. NOTE: This PMP Quick Study Guide provides a subset of project Earned Value calculations. OUTPUTS: includes WPI to compare performance to the cost baseline, cost forecasts using EAC or bottom-up EAC value, Change requests (to cost and/or schedule baselines or other PMP components), PMP updates to the cost management plan, cost baseline, and performance measurement baseline, and project document updates (e.g., assumption log, BOEs, cost estimate, lessons learned and risk registers). Process Plan Quality Management

Knowledge Area Quality Management

Process Group Planning

Plan Quality Management: Process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with those requirements/standards. The project manager and project management team bust trade between quality and grade: • Quality is the degree to which a set of characteristics fulfill requirements. • Grade as a design intent is a category assigned to deliverable having the same functional use but different technical characteristics. Prevention (keeping errors out) is preferred over inspection. Cost of Quality (COQ) includes all costs incurred over the life of the product by investments in preventing nonconformance, appraising, rework. Trends and Emerging Practices in Project Quality Management: • Customer Satisfaction: Understanding, evaluating, defining, and managing combination of Conformance to requirements (the project must produce what it said it would produce), and Fitness for use (the product or service must satisfy real needs). • Continual Improvement: The plan-do-check-act cycle is the basis for quality improvement (as defined by Shewhart and modified by Deming). • Management Responsibility: Management must provide resources needed to meet quality levels and thus succeed. INPUTS: include PMP (plans for requirements management, risk management, and stakeholder engagement; and scope baseline), project documents (assumptions log, requirements documentation, RTM, risk and stakeholder register), and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on quality involving assurance, control, measurements, improvements, and systems.

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Data Gathering: • • •

Benchmarking: Comparing actual or planned project practices to those of other projects to generate ideas for improvement and to provide a basis by which to measure performance Brainstorming: This technique is used to generate ideas by gathering data creatively from a group of team members or subject matter experts. Interviews: to gather quality needs/expectations, implicit/explicit data, and formal/informal.

Data Analysis: •

Cost-Benefit Analysis: Quality planning must consider cost-benefit tradeoffs. The primary benefit of meeting quality requirements is less rework, which means higher productivity, lower costs, and increased stakeholder satisfaction. The primary cost of meeting quality requirements is the expense associated with Project Quality Management activities. Cost of Quality (COQ): (prevention, appraisal, and failure costs): o Cost of Conformance: Avoids failures: Prevention - training, surveys, using a quality system, planning, recruiting quality staff, etc. Appraisal - testing, inspecting, auditing, etc. o Cost of non-conformance: Because of failures: Internal - rework, rejects, etc. External warranty, recall, repairs, handling complaints, legal issues, loss of goodwill, etc. Decision Making: uses a variety of tools: o Control Charts: used to determine whether or not a process is stable or has predictable performance. o Design of Experiments: Statistical method helps identify which factors may influence specific variables of a product or process under development or production. o Statistical Sampling: choosing part of a population of interest for inspection. o Force Field Analysis: diagrams of the forces for and against change, such as: while upgrading a manufacturing plant, key forces are low maintenance cost, reduced training time, improved production speed. While forces against change could be loss of staff overtime, impact on the environment, cost, etc. o Nominal Group Technique: allows ideas to be brainstormed in small groups and then reviewed by a larger group. o Quality Management and Control Tools: link and sequence the activities identified.

Data Representation: uses flowcharts (such as the SIPOC Model), logical data models, matrix diagrams, and mind mapping, and other visualization techniques to represent data. Others: Test and inspection planning and team meetings. OUTPUTS: Quality Management Plan: Describes how the project management team will implement the performing organization's quality policy (Quality management plan is a component or a subsidiary plan of the project management plan).

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Quality Metrics: A metric is an operational definition that specifically describes a project or product and how the Control Quality process will verify compliance to it. Metric may include % of tasks completed on time, CPI, failure rate, errors per line of code, etc. PMP Updates: involves the risk management plan and scope baseline to address changes to the agreedupon approach or specific quality management activities needing added including in the WBS. Project Document Updates: includes lessons learned, risk, and stakeholder registers, and the RTM. Process Manage Quality

Knowledge Area Quality management

Process Group Executing

Manage Quality: has also been called quality assurance but manage quality is broader as it is used in non-project work (e.g., product design and process improvements) and not just the processes. Manage Quality is considered the work of everybody - and is the process of translating the quality management plan into executable quality activities to increase the probability of meeting the quality objectives and find process and causes of poor quality. Quality Concepts: • Gold Plating: Giving the customer extras; does not add value to the project. • Just in Time (JIT): Decreasing inventory close to zero; forces attention to quality. • Total Quality Management (TQM): Company and employees focus on finding the ways to improve the quality of its business practices and products continuously. INPUTS: PMP: primarily the quality management plan. Project Documents: • Lessons learned register: from early in the project to assist with later phases. • Quality Control Measurements: QC measurements are the results of quality control activities that is feedback to the QA process for use in re-evaluating and analyzing the quality standards and processes of the performing organization. • Quality Metrics. • Risk Report: sources and drivers of risks and risk exposure. OPAs: policies, procedures, guidelines, templates, previous audit results, lessons learned. TOOLS & TECHNIQUES: Data Gathering: Uses structured, component-specific checklists to verify that a set of required steps has been performed); checklists may be simple or complex and should include acceptance criteria. Data Analysis: includes alternatives analysis, document analysis, process analysis, and root cause analysis (RCA). RCA helps determine the basic underlying reasons for a variance, defect, or risk. Decision Making: relies on multicriteria decision analysis and focuses on project and product decisions.

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Data Representation: includes: • • • • • • • • •

Affinity Diagrams: organize potential causes of defects into groups to steer focus. Cause and Effect Diagram: Also called Ishikawa (inventor) or fishbone diagrams. Factors include people, process, equipment, material, environment, and management. Control Charts: Shows whether or not a process is stable or has predictable performance over a period of time. Stable or Predictable – normal (no action required). Out of control – process is subject to special cause variation and (needs to be fixed). Rule of Seven: occurs when 7 values in a row are all below or all above the mean or increase/decrease in direction. Flowcharting: Helps to analyze how problems occur. A flowchart is a graphical representation of a process. Histogram: A bar chart showing a distribution of variables. Pareto Chart: A Pareto chart is a specific type of histogram, ordered by frequency of occurrence. Run Chart: A run chart shows the history and pattern of variation. Scatter Diagram: Shows the pattern of relationship between two variables.

Audits: a structured, independent review to determine whether project activities comply with organizational and project policies, processes, and procedures. Usually conducted by personnel external to the project. Others: Includes Design for X (DfX: to optimize a specific design aspect), problem-solving (define, identify root-cause, generate solutions, chose the best solution, implement, and verify), and quality improvement methods (e.g., Plan-do-check-act and Six Sigma tools). Note that Process Improvement Plan: PMP component that details the steps for analyzing processes to facilitate identification of waste, error and non-value added activity, thus increasing customer value. OUTPUTS: include quality reports (graphical, numerical, or qualitative), test and evaluation documents (used to evaluate the achievement of quality objectives and may consist of checklists and RTM), change requests, PMP Updates (quality management plan, and baselines for scope, schedule, and cost), and project documents updates to Issue log and lessons learned and risk registers. Process Control Quality

Knowledge Area Quality Management

Process Group Monitoring & Control

Control Quality: Monitoring and recording results of executing the quality activities to assess performance (completeness, compliance, and fitness for use of a product or service) and recommend necessary changes. Key Differences: • Prevention (keeping errors out of the process); Inspection (keeping errors out of the hands of the customer). • Attribute sampling (result conforms or does not); Variables sampling (result is rated on a continuous scale that measures the degree of conformity); Statistical sampling (measures only a percentage of items, e.g., 5 out of every 100), example is 3.5 gm. • Special causes (unusual events); Common or random causes (normal process variation).

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Tolerances (the result is acceptable if it falls within the range specified by tolerance); Control limits (the process is in control if the result falls within the control limits).

INPUTS: include PMP (e.g., the quality management plan on how quality will be controlled), Project documents (including lessons learned, quality metrics, T&E documents), approved change requests (using a change log), deliverables (unique and verifiable products, results, or compatibilities), work performance data, and EEFs/OPAs (e.g., standards and regulations, reporting procedures and checklists, etc.). TOOLS & TECHNIQUES: Data Gathering: • Checklists: help manage and structure control quality activities. • Check sheets: or tally sheets, help organize facts to facilitate the collection of data about potential quality problems. • Statistical sampling: involves choosing the part of a population of interest for inspection. The sample is taken to measure controls and verify quality. • Questionnaires and Surveys: may be used to gather data about customer satisfaction after the deployment of the product or service. Data Analysis: includes performance reviews (to measure, compare, and analyze PQM metrics to actual results) and RCA for identifying defect source(s). Inspection: examines a work product to determine if it conforms to documented standards. Testing/Product Evaluations: organized and constructed investigation conducted to provide objective information about the quality of the product or service under test in accordance with the project requirements. The intent of testing is to find errors, defects, bugs, or other nonconformance problems in the product or service. Data Representation: includes: • •

• •

Cause and Effect Diagram: to identify the possible effects of quality defects and errors. Control Charts: to determine whether or not a process is stable or has predictable performance. Upper and lower specification limits are based on the requirements and reflect the maximum and minimum values allowed. Upper and lower control limits are different from specification limits. The control limits are determined using standard statistical calculations and principles to establish the natural capability for a stable process ultimately. Histogram: bar chart to demonstrate the number of defects by source or by component. Scatter Diagram: two axes to compare planned performance and actual performance.

Meetings: for approved change requests and lessons learned / improvement areas. OUTPUTS: Quality Control Measurements: Documents results of Control Quality activities; captured in the format that was specified in the quality management plan.

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Verified Deliverables: become an input to the Validate Scope process for formalized acceptance. Any change requests or improvements related to the deliverables may be changed, inspected, and reverified. Work Performance Information: includes information on project requirements fulfillment, causes for rejections, rework required, recommendations for corrective actions, lists of verified deliverables, status of the quality metrics, and the need for process adjustments. Other Outputs include change requests, PMP updates, and project document updates (e.g., to the issue log, lessons learned and risk registers, and T&E documents). Process Plan Resource Management

Knowledge Area Resource Management

Process Group Planning

Plan Resource Management: Defines how to estimate, acquire, manage, and use sufficient levels of team and physical resources to establish the approach and level of management effort needed for managing project resources based on the type and complexity of the project. INPUTS: includes project charter (e.g., stakeholders, summary milestones, and financial resources), PMP including quality management plan and scope baseline, project documents (schedule, requirements, risks, stakeholders), and EEFs/OPAs (locations, marketplace conditions, HR policies, historical). TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on negotiating for the best organizational resources, talent management and personnel development, estimating lead times required for acquisition, identifying risks associated with resource acquisition/retention/release plans, government and union regulations, and managing sellers and logistics efforts. Data Representation: document and communicate team member roles and responsibilities, including: • •

Hierarchical Charts: shows positions and relationships in a graphical, top-down format, includes WBS, organization breakdown structure (OBS), Resource breakdown structure. Assignment Matrix: shows the project resources assigned to each work package to illustrate connections between work packages, or activities, and project team members. A RAM example is RACI (Responsible, Accountable, Consult, Inform) to ensure clear assignment of roles and responsibilities when the team consists of internal and external resources. Text-Oriented Formats: Team member responsibilities that require detailed descriptions.

Organizational Theory: Provides information regarding how people, teams, and organizational units behave. Helps managing people and groups. Includes motivational theories (e.g., Maslow’s HoNs, Theory X-Y, etc.). Theories may recommend flexible/adaptable leadership styles to align with a team’s maturity level. An organization’s structure and culture may impact the project organizational structure.

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OUTPUTS: Resource Management Plan: Component of PMP, provides guidance on how project resources should be categorized, allocated, managed, and released. Includes staff acquisition, timetable, staff release plan, training needs, recognition and rewards, compliance, and safety. Team Charter: establishes clear expectations regarding acceptable behavior by project team members and includes team values, communication guidelines, decision-making criteria and process, conflict resolution process, meeting guidelines, and team agreements. Project Document Updates: includes assumption log and risk register, amongst others as needed. Process Estimate Activity Resources

Knowledge Area Resource Management

Process Group Planning

Estimate Activity Resources: estimating team resources and the type and quantities of materials, equipment, and supplies necessary to perform project work. Provides the type, quantity, and characteristics of the resources required to complete the project. INPUTS: Includes PMP (resource management plan and scope baseline), project documents (e.g., activity attributes and list, assumption log, cost estimate, resource calendars, and risk register), EEFs/OPAs cover resource location and availability, and policies and historical information, amongst others. Resource Calendars show the working and nonworking days for determining resource availability. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training in team and physical resource planning and estimating. Bottom-Up Estimating: estimating project duration or cost by aggregating the estimates of the lowerlevel components of the WBS. When an activity cannot be estimated with a reasonable degree of confidence, the work within the activity is decomposed into more detail. The resource needs are estimated, then aggregated into a total quantity for each of the activity’s resources. OUTPUTS: Activity Resource Requirement: An identification and description of the types of quantities of resources required for each schedule activity in a work package Resource Breakdown Structure: The resource breakdown structure is a hierarchical representation of resources by category and type. Examples of resource categories include labor, material, equipment, and supplies. Analogous Estimating: uses information regarding resources from a previous similar project as the basis for estimating a future project. Applies when the project manager can only identify a few top levels of the WBS.

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Parametric Estimating: uses algorithms or statistical relationships between historical data and other variables to calculate resource quantities needed for an activity. For example, an activity needing 4,000 hours of coding and must finish in 1 year will require two people to code (each doing 2,000 hours a year). Can produce by highly accurate depending on its sophistication and underlying data. Other tools/techniques include data analysis, PMIS, and team meetings. OUTPUTS: include resource requirements (types and quantities based on assumptions and availability), BOEs, resource breakdown structure (labor, material, equipment, supplies), and project document updates (e.g., activity attributes, assumption log, and lessons learned register). Process Acquire Resources

Knowledge Area Resource Management

Process Group Executing

Acquire Project Team: obtaining team members, facilities, equipment, materials, supplies, and other internal or external resources necessary to complete project work. Outlines and guides the selection of resources and assigns them to their respective activities. Internal resources are acquired (assigned) from functional or resource managers; external resources are acquired through procurement processes. INPUTS: include PMP (e.g., resource and procurement management plans, cost baseline), project documents (including project schedule, resource calendars and requirements, and stakeholder register), and EEFs/OPAs. TOOLS & TECHNIQUES: Decision Making: acquire resources via selection criteria, such as availability, cost, ability, experience, knowledge, skills, attitude (ability to work with others as a cohesive team), and international factors. Interpersonal and Team Skills: e.g., negotiating with functional managers, other project management teams, and external organizations and suppliers. Pre-assignment: determining a project’s physical or team resources in advance. Virtual Teams: groups of people with a shared goal, placed at different locations. Requires communication planning to set clear expectations, facilitate communications, develop protocols for resolving conflict, empower decision making, handle cultural differences, and share credit in successes. OUTPUTS: Physical Resource Assignments: records the material, equipment, supplies, locations, and other physical resources that will be used during the project. Project Staff Assignments: • Project is staffed when appropriate people are assigned to work on it. • Documentation can include a project team directory, memos to team members, and names inserted into other parts of the PMP (e.g., organization charts and schedules).

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Resource Calendars: • Documents the time periods project team members can work on the project. • Creates a reliable final schedule as it considers each person’s schedule conflicts, including vacation time and commitments to other projects. Other Outputs include change requests, PMP updates (resource management plan, cost baseline), project document updates (lessons learned, project schedule, resource breakdown structure and requirements, risk and stakeholder register), and EEFs/OPAs. Process Develop Team

Knowledge Area Resource Management

Process Group Executing

Develop Team: Develop individual or group skills to enhance project performance. TOOLS & TECHNIQUES: Interpersonal Skills: improving competencies, team member interaction, and the overall team environment to enhance project performance. Improves interpersonal skills, sometimes known as ‘soft skills’. Achieved via open and effective communication, creating team-building opportunities, developing trust among team members, managing conflicts in a constructive manner, encouraging collaborative problem solving, and encouraging collaborative decision making. Based on Tuckman’s five phases of teams: • Forming Learning about roles and responsibilities; people are not as open in this phase. • Storming Are not collaborative and open to differing ideas and perspectives (destructive). • Norming Work together and adjust work habits. • Performing Interdependent and work through. • Adjourning Complete the work and move on. Theories: • McGregor’s Theory X-Y: X = people need more supervision, Y = people need less supervision. • Expectancy Theory: People are motivated by their conscious expectations of what will happen if they do certain things, and are more productive when they believe their expectations will be realized. • Herzberg’s Theory: Hygiene Factors: working condition, salary, personal life, relationship at work, security, status. Motivating Agents: responsibility, self-actualization, professional growth, recognition. Ground Rules: Establish clear expectations regarding acceptable behavior by project team members to decrease misunderstandings & increase productivity. INPUTS: include PMP (e.g. resource management plan), project documents (lessons learned, project schedule, project team assignments, resource calendars, and team charter), EEFs/OPAs. TOOLS & TECHNIQUES:

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Co-Location: placing project team members in the same physical location to enhance their ability to perform as a team; may be temporary. Co-location strategy can include a meeting room (war room) with electronic communication devices and other tools to enhance communication and a sense of community. Virtual Teams: can provide benefits such as the use of more skilled resources, reduced costs, less travel and relocation expenses, and the proximity of team members to suppliers, customers, or other key stakeholders. Communication Technology: helps build a harmonious environment for the co-located team and a better understanding for the virtual team, especially for different time zones. Examples: shared portal, video and audio conferencing, email/chat. Interpersonal and Team Skills: includes Conflict management (resolve conflicts in a timely manner and in a constructive way), Influencing (to reach agreements while maintaining mutual trust), Motivation (providing a reason for someone to act), Negotiation (to reach consensus on project needs), and Team building. Recognition and Rewards: involves recognizing and rewarding only desirable behavior, e.g., need to work overtime because of poor planning should not be rewarded (undesirable behavior). Training: Activities designed to enhance the competencies of the project team members. Individual and Team Assessments: give the project manager and the project team insight into areas of strengths and weaknesses. OUTPUTS: include team performance assessments, change requests, PMP updates, project document updates, and EEFS/OPAs. Process Manage Team

Knowledge Area Resource Management

Process Group Executing

Manage Project Team: Tracking team performance, providing feedback, resolving issues, managing changes to optimize project performance. Helps influence team behavior, manage conflicts, and resolves issues. Requires a variety of management and leadership skills for fostering teamwork and integrating the efforts of team members. INPUTS: PMP (e.g., resource management plan), project documents (e.g., issue log, lessons learned register, project team assignments, and team charter), work performance reports, team performance assessments (for actions to resolve issues, modify communication, address conflict, and improve team interaction), and EEFs/OPAs. TOOLS & TECHNIQUES: Observation and Conversation: Stay in touch with the work & attitudes of project team members. The PM team members monitor indicators such as progress toward project deliverables accomplishments that are a source of pride for team member’s interpersonal issues

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Interpersonal and Team Skills: • Conflict Management: Successful conflict management results in greater productivity and positive working relationships. Requires abilities to influence conflict resolution: o Withdrawal (avoiding) (lose/lose) - one party gives up & refuses to discuss the conflict, which is probably the worst technique. o Smoothing (accommodating) (lose/lose) - attempts are made to make conflict appear less important than it is. o Compromise (negotiating) (neutral/neutral) - each party gives up something to reach a solution. o Forcing (Win/lose) - One-person forces solution on the other parties. o Confrontation (collaboration/problem solving) (win/win) - the only true and best solution a fact-finding mission results in some possible solutions, which are chosen from. • Decision Making: involves the ability to negotiate and influence. • Emotional intelligence: ability to identify, assess, and manage the personal emotions of oneself and other people. • Influencing: ability to influence stakeholders on a timely basis. • Leadership: ability to lead a team and inspire them to do their jobs well. OUTPUTS: include change requests (corrective or preventive, such as staffing changes that include moving people to different assignments, outsourcing some of the work, or replacing team members who leave), PMP updates, Project document updates (issue log, lessons learned register, and project team assignments), and EEFs/OPAs. Process Control Resources

Knowledge Area Resource Management

Process Group Monitor & Control

Control Resources: ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective action as necessary. Ensures that the assigned resources are available to the project at the right time and in the right place and are released when no longer needed. INPUTS: PMP (e.g., resource management plan), project documents (e.g., issue log, lessons learned register, physical resource assignments, project schedule, resource breakdown structure and requirements, and risk register), work performance data (e.g., number and type of resources used), agreements, and EEFS/OPAs. TOOLS & TECHNIQUES: Data Analysis: • Alternatives Analysis. Alternatives can be analyzed to select the best resolution for correcting variances in resource utilization. Alternatives such as paying additional for overtime or additional team resources can be weighed against a late delivery or phased deliveries. • Cost-Benefit Analysis. Helps to determine the best corrective action in terms of cost in case of project deviations. • Performance Reviews. Measure, compare, and analyze planned resource utilization to actual resource utilization.

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Trend Analysis. Use trend analysis, based on current performance information, to determine the resources needed at upcoming stages of the project to determine whether performance is improving or deteriorating.

Problem Solving: Steps: identify, define, investigate, analyze, solve, and check to the problem being fixed. Interpersonal and Team Skills: are personal competencies that include negotiation and influencing. PMIS: tools to ensure the right resources are working on the right activities at the right time and place. OUTPUTS: include WPI, change requests, PMP Updates, (resource management plan and cost/schedule baselines), and project document updates. Process Plan Communication Management

Knowledge Area Communications Management

Process Group Planning

Plan Communication Management: developing an appropriate approach and plan for project communication activities based on the information needs of each stakeholder or group, available organizational assets, and the needs of the project. Provides a documented approach to effectively and efficiently engage stakeholders by presenting relevant information in a timely manner. INPUTS: include project charter, PMP (resource management plan, stakeholder management plan), project documents, and EEFS/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training about the organization entailing politics and power structures; Environment and culture, other customer organizations; change management approach and practices; Industry or type of project deliverables; communications technologies; policies and procedures regarding legal requirements of corporate communications; policies and procedures regarding security; and Stakeholders, including customers or sponsors. Communication Requirements Analysis: determines the information needs of the project stakeholders. Communication Technology: considers factors or information urgency need, availability and reliability of technology, ease of use, project environment (face-to-face, virtual), and sensitivity and confidentiality of the information. Communication Models: • Encode: To translate thoughts or ideas into a language that is understood by others • Transmit Message and Feedback Message: The output of encoding • Medium: The Method used to convey the message. • Noise: interfaces with the transmission and understanding of the message. • Decode: To translate the message back into meaningful thoughts or ideas

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Lines of Communication: Total number of communication channel = n(n-1)/2 When n = Number of stakeholder. A team of 3 has 3 communication channels and a team of 5 has 10 channels. Communication Methods:

Communication Blocker: Noise, Distance, Improper encoding of the message, language, culture Communication Methods can be interactive, push, or pull: • Interactive communication: Between two or more parties performing a multidirectional exchange of information. • Push communication: Sent to specific recipients who need to know the information. Push communication includes letters, memos, reports, emails, faxes, voice mails, press releases etc. • Pull communication: Used for very large volumes of information, or for very large audiences, that requires the recipients to access the communication content at their own discretion. These methods include intranet sites, e-learning, and knowledge repositories, etc. OUTPUTS: include communications management plan (covers stakeholder communication requirements, escalation processes, roles and responsibilities, methods or technologies, glossary of common terms, etc.), and PMP updates, and project documents updates for project schedule and stakeholder register. Process Manage Communications

Knowledge Area Communications Management

Process Group Executing

Manage Communications: to ensure timely and appropriate creating, collecting, distributing, storing, retrieving, and ultimate disposition of project information according to the communication management plan. Enables efficient and effective information flow between the project team and stakeholders. Techniques and considerations for effective communications management include sender-receiver models, choice of media, writing style (e.g., active versus passive voice), meeting management, presentations (and impact awareness of body language and design of visual aids), facilitation (e.g., building consensus, overcoming obstacles, group dynamics), and active listening. INPUTS: include PMP (e.g., plans for resource management, communications, and stakeholder engagement), project documents, work performance reports (e.g., organization culture, stakeholder risk thresholds, team locations), and EEFs/OPAs.

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TOOLS & TECHNIQUES: Communication Technology: considers whether the team is co-located, confidentiality of information, resources available to the team members, and how organization’s culture influences the way in which meetings and discussions are normally conducted. Communication Methods: such as levels of flexibility. Communication Skills: techniques include Communication competence (tailored for clarity of purpose, effective relationships, information sharing, and leadership behaviors), Feedback (e.g., via coaching, mentoring, and negotiating), Nonverbal (body language to transmit meaning through gestures, tone of voice, and facial expressions), and Presentations. PMIS: tools include electronic project management tools, electronic communications management, and social media management. Project Reporting: Provide information at an appropriate level for each audience. Format may range from a simple status report to more elaborate reports and may be prepared regularly or on an exception basis. A simple status report might show performance information, such as percent complete or status dashboards for each area (i.e., scope, schedule, cost, and quality). More elaborate reports may include: • Analysis of past performance • Analysis of project forecasts (including time and cost) • Current status of risks and issues • Work completed during the period • Work to be completed in the next period • Summary of changes approved in the period • Other relevant information, which is reviewed and discussed Interpersonal and Team Skills: includes active listening (acknowledging, clarifying and confirming, understanding, and removing barriers that adversely affect comprehension), conflict management, cultural awareness, meeting management, networking (informal interaction with others to understand political and interpersonal factors via proactive correspondence, luncheon meetings, informal conversations, and trade conferences), and political awareness. OUTPUTS: includes project communications (e.g., reports, deliverable status, progress, costs incurred, and presentations), PMP updates to communications management and stakeholder plans, project document updates, and OPAs. Process Monitor Communications

Knowledge Area Communications Management

Process Group Monitor & Control

Monitor Communications: ensures the information needs of the project and its stakeholders are met. The key benefit is the optimal information flow as defined in the communications management plan and the stakeholder engagement plan.

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INPUTS: PMP: includes management plans for resources communications, and stakeholder engagement. Project Documents: • Issue Log: to document and monitor the resolution of issues. Helps facilitate communication and ensure a common understanding of issues. • Lessons learned register. Lessons learned earlier in the project can be applied to later phases in the project to improve communication effectiveness. • Project communications. Information about communications that have been distributed. Other inputs: include Work performance data and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training in communications with the public, community, media, virtual groups, and others, as well as with project management systems. PMIS: provides standard tools to capture, store, and distribute information to internal and external stakeholders per the communications plan. The information contained in the system is monitored to assess its validity and effectiveness. Data Representation: includes the stakeholder engagement assessment matrix which provides information about the effectiveness of the communications activities. Interpersonal and Team Skills: includes observation, conversation, discussion, and dialogue with the project team for determining appropriate ways to update and communicate project performance, and to respond to requests from stakeholders for information. Meetings: Face-to-face or virtual meetings for decision making, responding to stakeholder requests, and having discussions with suppliers, vendors, and other stakeholders. OUTPUTS: include WPI on how the team is performing communications, change requests (e.g., stakeholder communications and new procedures to eliminate roadblocks, PMP Updates with communications management and stakeholder engagement plans, project document updates (e.g., issue log, and lessons learned and stakeholder registers). Process Plan Risk Management

Knowledge Area Risk Management

Process Group Planning

The Risk Management knowledge area considers that all projects are risky since each project is a unique undertaking with varying degrees of complexity, constraints, assumptions, conflicts, changes, and other challenges in delivering benefits. Risk approaches are tailored to project size, complexity, importance, and development approach.

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Risk exists at two levels within every project. Each project contains individual risks that can affect the achievement of project objectives. It is also important to consider the riskiness of the overall project, which arises from the combination of individual project risks and other sources of uncertainty. Project Risk Management processes address both levels of risk in projects, and these are defined as follows: Individual project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. Overall project risk is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative. A project risk is the uncertain event or condition that, if it occurs, has a positive (opportunity) or a negative (threat) effect on at least one project objective (i.e., time, cost, scope, or quality). Known risks are identified and can be proactively managed & analyzed, whereas unknown risks (unknown known & unknown unknowns) cannot be proactively managed. Risk Attitudes: include: • • •

Risk appetite: degree of uncertainty an entity, is willing to take on in anticipation of a reward. Risk tolerance: degree, amount, or volume of risk that an organization or individual will withstand. Risk threshold: level of uncertainty or impact that a stakeholder may have a specific interest.

Plan Risk Management: defines how to conduct risk management activities for a project. Aims to ensure that the degree, type, and visibility of risk management are proportionate to both risks and the importance of the project to the organization and other stakeholders. INPUTS: include project charter (boundaries, high-level requirements, and risks), PMP and all subsidiary management plans, project documents, and EFAs/OPAs for risk thresholds, policies, templates, etc. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training with the organization’s approach to managing risk, including enterprise risk management, tailoring risk management to the specific needs of a project, and types of risk likely to be encountered. Data Analysis: include determining the risk appetite of project stakeholders. Involves analytical techniques to understand and define the overall risk management context of the project (i.e., a combination of stakeholder risk attitudes and the strategic risk exposure based on the overall project context). OUTPUTS: Risk Management Plan: considers risk sources (i.e., technical, management, commercial, external) and describes:

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Risk Strategy Methodology Roles and responsibilities Funding Timing Risk Categories – risk breakdown structure Stakeholder risk appetite Definition of Risk Probability and Impact – e.g., very high, high, medium, low, very low, nil. Probability and Impact Matrix – e.g., 1 x 5 matrix and others. Reporting Formats Tracking – and auditing

Process Identify Risks

Knowledge Area Risk Management

Process Group Planning

Identify Risk: identifying and documenting project risks and sources of overall project risk. Aims to bring together information so the project team can respond appropriately to identified risks. INPUTS: PMP: risks based on uncertainty and ambiguity come from a variety of PMP components including: Requirements management plan, Schedule management plan, Cost management plan, Quality management plan, Resource management plan, Risk management plan (roles and responsibilities and how risk management activities are included in the budget and schedule), Scope baseline, Schedule baseline, and Cost baseline. Project Documents: assumption log, cost and duration estimates, issue log, lessons learned register, requirements documentation, resource requirements, and stakeholder register. AGREEMENTS: project having external procurement of resources may have agreement information such as milestone dates, contract type, acceptance criteria, and awards and penalties that can present threats or opportunities. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training with similar projects or business areas. Data Gathering: include (as described earlier in this study guide) brainstorming, checklists, interviews, Delphi technique). Checklist Analysis may apply, and uses checklists developed from historical information and knowledge, are impossible to be exhaustive, and sample checklists or questionnaires can be obtained commercially or via the internet. Data Analysis: include (as described earlier in this study guide) root cause analysis, assumptions and constraints analysis, SWOT analysis (internal for strengths and weaknesses, and external for

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opportunities and threats), Documentation analysis (structured reviews of project documentation including plans, assumptions, prior project files, and other information). Others include: interpersonal and team skills (facilitation to keep focus on risk identification methods), prompt lists (framework to aid idea generation), and meetings. OUTPUTS: include Risk Register (contains list of identified risks, potential risk owners, and potential responses), Risk report, and project document updates. Process Perform Qualitative Risk Analysis

Knowledge Area Risk Management

Process Group Planning

Perform Qualitative Risk Analysis: process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics. This process focuses efforts on high-priority risks. INPUTS: includes PMP, project documents (e.g., assumption log, risk and stakeholder register), and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training with similar projects and qualitative risk analysis. Often obtained through facilitated risk workshops or interviews. Data Gathering: include interviews (structured or semi-structured) to assess the probability and impacts of individual project risks and other factors. Interviewer should promote an environment of trust and confidentiality in the interview setting to encourage honest and unbiased assessments. Data Analysis: •

Risk Data Quality Assessment o Risk analysis requires accurate & unbiased data o Examine the degree to which the data about the risk is useful o Examine the degree to which the risk is understood o Examine the risk data for accuracy, quality, reliability, & integrity

Risk Probability and Impact Assessment: for the likelihood that each specific risk will occur, and the impact assessment for the potential effect on one or more project objectives such as schedule, cost, quality, or performance. Risk characteristics include urgency, proximity (when it might occur), dormancy, manageability, controllability, detectability, connectivity, strategic impact, and propinquity (e.g., a risk perceived as very significant by one or more stakeholders has high propinquity).

Other tools/techniques include interpersonal and team skills (facilitation improves effectiveness of the qualitative analysis of risks), risk categorization (by source of risk, project affected, area of effect such as phase or budget, and by root cause), data representation (e.g. via probability and impact matrix, hierarchical charts), and meetings.

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OUTPUTS: include project documents updates for assumption log, issue log, risk register and risk report. Process Perform Quantitative Risk Analysis

Knowledge Area Risk Management

Process Group Planning

Perform Quantitative Risk Analysis: Numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives. Quantifies overall project risk exposure, and can provide additional quantitative risk information to support risk response planning. This process is not required for every project. Quantitative risk analysis usually requires specialized risk software and expertise in the development and interpretation of risk models. It also consumes additional time and cost. INPUTS: include PMP (risk management plan, and baselines for scope, schedule, and cost), project documents, EEFS/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training with translating information from sources of uncertainty into numeric inputs, selecting the most appropriate representation of uncertainty to model, modeling techniques, identifying tools suitable for modeling, and interpreting quantitative risk analysis outputs. Data gathering: Interviewing to gain input on areas of uncertainty. Data Analysis: • •

• •

Simulation: such as Monte Carlo Analysis: Monte Carlo analysis for cost risk uses the project cost estimates, and Monte Carlo analysis for schedule risk uses the schedule network diagram and duration estimates. An integrated quantitative cost-schedule risk analysis uses both inputs. Sensitivity Analysis: such as tornado diagram to present calculated correlation coefficients for each element of the quantitative risk analysis model; can include individual project risks, project activities, or specific sources of ambiguity. Items are ordered by descending strength of the correlation, hence tornado appearance). Decision tree analysis: Support selection of the best of several alternative courses of action. The decision tree is evaluated by calculating the expected monetary value of each branch, allowing the optimal path to be selected. Influence diagrams: graphical aids for decision making under uncertainty. Represents a project or situation within the project as a set of entities, outcomes, and influences, together with the relationships and effects between them. Influence diagrams are evaluated using a simulation technique, such as Monte Carlo analysis.

OUTPUTS: includes project document updates including the Risk Report, which includes: • Assessment of overall project risk exposure • Detailed probabilistic analysis of the project • Prioritized list of individual project risks • Trends in quantitative risk analysis results • Recommended risk responses

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Process Plan Risk Responses

Knowledge Area Risk Management

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Process Group Planning

Plan Risk Response: Develop options, selecting strategies, and agreeing on actions to address overall project risk and individual project risks. Allocates resources and inserts activities into project documents and the project management plan as needed. INPUTS: includes PMP (e.g., resource and risk management plans and cost baseline), project documents (e.g., risk register and risk report), and EFAs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training in threat response strategies, opportunity response strategies, contingent response strategies, and overall project risk response strategies. Strategies: Strategies for Threats •Escalate •Avoid •Transfer •Mitigate •Accept

Strategies for Opportunities •Escalate •Exploit •Share •Enhance •Accept

Data Analysis: Used to select a preferred risk response strategy, including alternatives analysis (simple comparison of the characteristics and requirements of alternative risk response options) and costbenefit analysis. Other tools and Techniques include data gathering, interpersonal and team skills, contingent response strategies (e.g., responses designed only if certain events or predefined conditions occur), and decision making. OUTPUTS: includes change requests, PMP updates, and Project document updates. Process Implement Risk Responses

Knowledge Area Risk Management

Process Group Executing

Implement Risk Responses: process of implementing agreed-upon risk response plans. Helps ensure that agreed-upon risk responses are actually executed as planned in order to address overall project risk exposure, minimize individual project threats, and maximize individual project opportunities. INPUTS: includes PMP (e.g., risk management plan), project documents (lessons learned register, risk register, and risk report), and OPAs (e.g., lessons learned repository).

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TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on validating or modifying risk responses, and how to implement them in the most efficient and effective manner. Interpersonal and Team Skills: include influencing, as some risk response actions may be owned by people outside the immediate project team or who have other competing demands, thus the need to encourage risk owners to take necessary action where required. PMIS: can include schedule, resource, and cost software to ensure that agreed-upon risk response plans and their associated activities are integrated into the project alongside other project activities. OUTPUTS: includes change requests (e.g., to cost and schedule baselines), project document updates (e.g., issue log, lessons learned register, project team assignments, risk register and risk report). Process Monitor Risks

Knowledge Area Risk Management

Process Group Monitoring and Control

Monitor Risks: monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. Enables project decisions to be based on current information about overall project risk exposure and individual project risks. Uses performance information to determine if: • Implemented risk responses are effective • Level of overall project risk has changed • Status of identified individual project risks has changed • New individual project risks have arisen • Risk management approach is still appropriate • Project assumptions are still valid • Risk management policies and procedures are being followed • Contingency reserves for cost or schedule require modification • Project strategy is still valid INPUTS: PMP (risk management plan on how and when to review risks, policies, R&R, reporting formats), project documents (issue log, lessons learned register, risk register and report), work performance data, and WPI. TOOLS & TECHNIQUES: DATA ANALYSIS: • •

Technical Performance Analysis: Compares technical accomplishments during project execution to the schedule of technical achievement. Deviations can indicate the potential impact of threats or opportunities. Reserve Analysis: Compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project in order to determine if the remaining reserve is adequate. Communicated using various graphical representations, including a burndown chart.

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Risk Reassessment: requires identification of new risks & re-assessment of risks; Risk reassessment should be regularly scheduled & should be an agenda item at project team status meetings. Risk Audits: Examine & document the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process. Variance and Trend Analysis: Earned value analysis & trend analysis may be used to monitor overall project performance. Outcomes from these analyses may forecast potential deviation of the project at completion from cost and schedule targets. Technical Performance Measurement: Compares technical accomplishment during project execution to the plan’s schedule of technical achievement. Reserve Analysis: Compares the amount of contingency reserves remaining to the amount of risk remaining at any time in the project, to determine if the remaining reserve is adequate. Status Meetings: Risk management can be an agenda item in periodic status meetings to proactively manage risk. Fallback Plans: Fallback plans for use as reaction to a risk that has occurred and the primary responses proved to be inadequate. Residual Risk: A risk that remains after risk responses have been implemented. E.g., switching to a new subcontractor for better production but still have 10% risk remaining. Secondary Risk: Secondary risks that arise as a direct outcome of implementing a risk response. E.g., going for second contracted causing communication error.

OUTPUTS: includes WPI, change requests (e.g., cost and schedule baselines or PMP components), PMP updates, project document updates, and OPA updates (e.g., templates for risk management plan, risk register, risk report, and risk breakdown structure). Process Plan Procurement Management

Knowledge Area Procurement Management

Process Group Planning

The Project Procurement Management knowledge area includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team and includes the processes required to develop and administer agreements, e.g., contracts, purchase orders, MOAs, or internal SLAs. More than most other project management processes, there can be significant legal obligations and penalties tied to the procurement process. The project manager is typically not authorized to sign legal agreements binding the organization; this is reserved for those who have the authority to do so. Plan Procurement Management: documents project procurement decisions, specifying the approach and identifying potential sellers. This process is that it determines whether to acquire goods and services from outside the project and, if so, what to acquire as well as how and when to acquire it. Goods and services may be procured from other parts of the performing organization or from external sources. INPUTS: include project charter, business documents (business case, benefits management plan), PMP (management plans for scope/quality/resources, and scope baseline), Project documents (Milestone lists, project team assignments, requirements documentation RTM, resource requirements, risk and stakeholder register), EFAs/OPAs.

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OPAs can influence the Plan Procurement Management process. Various Contract Types pertain to project procurement management: Fixed Priced Contract: • Firm Fixed Price Contracts (FFP): Seller to complete the job within a fixed total price. The Product has to be well defined (both seller and buyer are at risk). • Fixed Price Incentive Fee Contracts (FPIF): Incentive is based on seller’s performance tied to achieving agreed to metrics. In FPIF contracts, a price ceiling is set, and all costs above the price ceiling are the responsibility of the seller, who is obligated to complete the work. • Fixed Price Plus Incentive Fee (FPIF): Seller completes within a fixed total price, plus an extra incentive for meeting or exceeding certain objectives. e.g., fixed price of $100,000 + $25,000 for completing by a target date • Fixed price with Economic Price Adjustment Contracts (FPEPA): Used whenever the seller’s performance period spans a considerable period of years, as is desired with many long-term relationships. Cost Reimbursable Contract: • Cost Plus Fixed Fee (CPFF): Buyer pays all costs plus a fixed fee Cost overruns will not increase the fixed fee. e.g. cost of $100,000 + fixed fee of $15,000 (as profit). • Cost Plus Incentive Fee (CPIF): Buyer pays all costs plus an incentive to beat some criteria. Criteria might be a cost or time target with a certain formula, e.g., cost of $100,000 + a predetermined fee $5,000 as an incentive for early delivery. • Cost Plus Award Fee contracts (CPAF): The seller is reimbursed for all legitimate costs, but the majority of the fee is only earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract. Time & Material Contracts (T&M): Hybrid type of contractual agreement that contains aspects of both cost-reimbursable & fixed-price contracts. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on procurement and purchasing, contract types and contract documents, and regulations and compliance topics. Data Gathering: can involve Market Research for the examination of industry and specific vendor capabilities. Procurement teams may leverage information gained at conferences, online reviews and a variety of sources to identify market capabilities. Data Analysis: include make-or-buy analysis to determine whether work or deliverables can best be accomplished by the project team or should be purchased from outside sources. Factors to consider include the organization’s current resource allocation and their skills and abilities, the need for specialized expertise, the desire to not expand permanent employment obligations, and the need for independent expertise. Source Selection Analysis: methods include: • Least cost • qualifications only • Quality-based/highest technical proposal score

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Quality and cost-based Sole source Fixed budget

Meetings: Research alone may not provide specific information to formulate a procurement strategy without additional information interchange meetings with potential bidders. OUTPUTS: Procurement Management Plan: • Types of contracts to be used • Risk management issues • Evaluation criteria • Standardize procurement document • Any constraint and assumption • Identifying prequalified sellers Procurement Strategy: includes delivery methods, contract payment types, procurement phases. Bid Documents: • Invitation for Bid (IFD) • Request for Information (RFI) • Request for Quotation (RFQ) • Request for Proposal (RFP) Procurement Statement of Work (SOW): defines only that portion of the project scope that is to be included within the SOW, including specifications, quantity desired, quality levels, performance data, period of performance, work location, and other requirements. Source Selection Criteria: The project team must be prepared to compare the proposals received in an unbiased manner based on identified and documented selection criteria to rate or score proposals. Other Outputs include make-or-buy decisions, independent cost estimates, change requests, project documents updates, and OPAs updates. Process Conduct Procurements

Knowledge Area Procurement Management

Process Group Executing

Conduct Procurements: Obtaining seller responses, selecting a seller, and awarding a contract. Selects a qualified seller and implements the legal agreement for delivery, and producing established agreements including formal contracts. INPUTS: PMP: •

Scope management plan- how the overall scope of work will be managed, including the scope performed by sellers.

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Requirements management plan - how requirements will be analyzed, documented, and managed. Communications management plan - how communications between buyers and sellers will be conducted. Risk management plan- how risk management activities will be structured and performed. Procurement management plan - activities to be undertaken during the Conduct Procurements process. Configuration management plan - defines items that are configurable, require formal change control, and the process for controlling changes. Cost baseline - the budget for the procurement as well as costs associated with managing the procurement process and sellers.

Project documents include Lessons learned register, project schedule, requirements documentation, risk register, and stakeholder register. Procurement documentation including bid documents, procurement SOW, independent cost estimates, and source selection criteria. Seller proposals - forms the basic information for an evaluation body to select one or more successful bidders (sellers). EFAs/OPAs TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on proposal evaluation, technical or subject matter, functional areas (e.g., finance, engineering, design, development, supply chain management), industry regulatory environment, laws, regulations, and compliance requirements, and negotiation. Advertising: communicating with users or potential users of a product, service, or result. Most government jurisdictions require public advertising or online posting of pending government contracts. Bidder Conferences: Meeting with all prospective sellers and buyers prior to submittal of a bid or proposal. Data Analysis: uses Proposal Evaluation Techniques for complex procurements, where source selection will be made based on seller responses to previously defined weighted criteria, a formal evaluation review process will be defined by the buyer’s procurement policies. Interpersonal and Team Skills: requires Procurement Negotiations to clarify the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract. OUTPUTS: include selected sellers (those judged to be in a competitive range based on the outcome of the proposal or bid evaluation), agreements (including SOW, schedules, performance reporting, acceptance criteria, incentives/penalties, terms and conditions, etc), change requests, PMP Updates (most all plans and baselines), project document updates, and OPAs updates.

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Process Control Procurements

Knowledge Area Procurement Management

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Process Group Monitor & Control

Control Procurements: Managing procurement relationships; monitoring contract performance, and making changes and corrections as appropriate, and closing out contracts. Ensures that both the seller’s and buyer’s performance meet the project’s requirements according to terms of the legal agreement. Because of the legal aspect, many organizations treat contract administration as an organizational function that is separate from the project. INPUTS: include PMP (management plans for requirements, risks, procurement, and change, and the schedule baseline), project documents (assumptions, lessons learned, milestones, RTM, etc.), agreements/duties between/of parties, procurement documentation, approved change requests, work performance data including information on the seller invoices that have been paid, and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on functional areas such as finance, engineering, design, development, supply chain management, etc.; Laws, regulations, and compliance requirements; and Claims administration. Claims Administration (disputes/appeals) : contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change or cannot agree that a change has occurred. Should be documented and managed in accordance with the terms of the contract. Might involve arbitration or litigation. Data Analysis: includes performance reviews (structured review on the sellers’ progress to deliver as per planned for scope, quality, schedule, quality, etc.), EVA (CPI, SPI), and trend analysis (EAC). Contract Change Control System: Defines the process to modify a contract and includes paperwork, tracking systems, dispute resolution procedures and approval levels necessary for authorizing changes, i.e., work authorization system. Inspections and Audits: • Required by the buyer and supported by the seller as specified in contract documentation. • If authorized by contract, some inspections and audit teams can include buyer procurement personnel. Performance Reporting: How effectively the seller is achieving contractual objectives. Payment Systems: Payments to the seller are typically processed by the accounts payable system of the buyer after certification of satisfactory work by an authorized person on the project team. Records Management System: A set of processes and automation tools consolidated into the PMIS to manage contract documentation and records.

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OUTPUTS: include closed procurements, WPI, procurement documentation updates, change requests, PMP Updates (to risk and procurement management plans, and schedule and cost baselines), project document updates, and OPAs. Process Identify Stakeholders

Knowledge Area Stakeholder Management

Process Group Initiating

The key to effective stakeholder engagement is a focus on continuous communication with all stakeholders, including team members, to understand their needs and expectations, address issues as they occur, manage conflicting interests, and foster appropriate stakeholder engagement in project decisions and activities. Identify Stakeholders: identifying project stakeholders regularly and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success. Enables the project team to identify the appropriate focus for engagement of each stakeholder or group of stakeholders. INPUTS: include project charter (key stakeholders list), business documents (business case and business management plan), PMP (Communications management plan and Stakeholder engagement plan), project documents (change log, issue log, requirements documentation), agreements, and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on understanding organizational politics and power structures, the organizational environment and culture, the industry or type of project deliverable, and individual team member contributions and expertise. Data Gathering: including questionnaires, surveys, brainstorming (elicits input from team members and subject matter experts), and brain writing (allows individual participants time to consider the question(s) individually before the group creativity session is held). Data Analysis including Stakeholder Analysis: 1. Identify all potential project stakeholders and relevant, roles, departments, interests, knowledge levels, expectation and influence level. 2. Identify the potential impact or support each stakeholder could generate and classify so can define an approach strategy. 3. Assess how stakeholders may react and respond in various situations, to plan how to influence them to enhance their support and mitigate potential negative impacts. Data Representation: includes stakeholder mapping/representation to categorize stakeholders to assist the team in building relationships. Common methods include • Power/interest grid, power/influence grid, or impact/influence grid • Stakeholder cube - 3D model • Salience model - based on power and levels of authority or influence • Directions of influence (upward, downward, outward, sideward) • Prioritization

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OUTPUTS: Stakeholder Register: contains information about identified stakeholders that includes: • Identification information • Assessment information • Stakeholder classification Change Requests PMP Updates: management plans for requirements, communications, and risks; and stakeholder engagement plan. Project Document Updates: assumption log, issue log, and risk register. Process Plan Stakeholder Engagement

Knowledge Area Stakeholder Management

Process Group Planning

Plan Stakeholder Engagement: developing approaches to involve project stakeholders based on their needs, expectations, interests, and potential impact on the project. Provides an actionable plan to interact effectively with stakeholders. INPUTS: Project Charter, PMP (e.g., management plans for resources, communications, risks), Project documents, Agreements, and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on understanding organizational politics and power structures, the organizational environment and culture, analytical and assessment techniques with stakeholder engagement, communication means and strategies, and projects having similar characteristics of stakeholders and stakeholder groups and organizations. Data Gathering: includes benchmarking using stakeholder analysis to compare information from other organizations or other projects considered as world class. Data Analysis: including assumption and constraint analysis, and root cause analysis. Data Representation: such as mind mapping. Also, the Stakeholder engagement assessment matrix which classifies the engagement level of the stakeholders: • Unaware: Unaware of project and potential impacts. • Resistant: Aware of project and potential impacts but resistant to change. • Neutral: Aware of project yet neither supportive nor resistant. • Supportive: Aware of project and potential impacts and supportive to change. • Leading: Aware of project and potential impacts and actively engaged in ensuring the project is a success. Other tools and techniques: include decision making (e.g., prioritization/ranking stakeholders) and meetings.

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OUTPUTS: Stakeholder Management Plan • Desired and current engagement levels of key stakeholders. • Interrelationship and potential overlap between stakeholders. • Stakeholder communication requirements. Process Manage Stakeholder Engagement

Knowledge Area Stakeholder Management

Process Group Executing

Manage Stakeholder Engagement: Communicating and working with stakeholders to meet their needs/expectations, address issues, and foster appropriate stakeholder involvement. Allows the project manager to increase support and minimize resistance from stakeholders. INPUTS: PMP (e.g., management plans for communications, risks, and change; and stakeholder engagement plan), Project documents (e.g., change log, issue log, lessons learned and stakeholder register), and EEFs/OPAs. TOOLS & TECHNIQUES: Expert Judgement: By any group or individual with specialized knowledge or training on understanding organizational politics and power structures, the organizational environment and culture, analytical and assessment techniques with stakeholder engagement, communication methods and strategies, projects having similar characteristics of stakeholders and stakeholder groups and organizations, and Requirements management, vendor management, and change management. Communications Skills: • Conversations; both formal and informal • Issue identification and discussion • Meetings • Progress reporting • Surveys Interpersonal and Team Skills: • Conflict management: PM should ensure that conflicts are resolved in a timely manner. • Cultural awareness: to help communicate effectively by considering cultural differences and the requirements of stakeholders. • Negotiation: to achieve support or agreement that supports the work of the project or its outcomes and to resolve conflicts within the team or with other stakeholders. • Observation/conversation: to stay in touch with the work and attitudes of project team members and other stakeholders. Political awareness: achieved through understanding the power relationships within and around the project. Management Skills: Presentation skill, Negotiating, Writing skill, Public speaking.

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Other tools and techniques: include Ground Rules (as defined in the team charter) and meetings for Decision making, Issue resolution, Lessons learned and retrospectives, Project kick-off, Sprint planning, and Status updates. OUTPUTS: include change requests, PMP Updates, and project document updates. Process Monitor Stakeholder Engagement

Knowledge Area Stakeholder Management

Process Group Monitor & Control

Monitor Stakeholder Engagement: Monitoring project stakeholder relationships and tailoring strategies for engaging stakeholders through modification of engagement strategies and plans. Maintains or increases the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes INPUTS: PMP (e.g., management plans for resources and communications; and stakeholder engagement plan), Project documents (e.g., issue log, lessons learned, project communications, and risk and stakeholder registers), work performance data, and EEFs/OPAs. TOOLS & TECHNIQUES: Data Analysis: including alternatives analysis, root cause analysis, and stakeholder analysis Decision Making: including Multicriteria decision analysis and voting. Communication Skills: includes feedback so information to stakeholders is received and understood, and presentation skills. Interpersonal and Team Skills: entails: • Interpersonal skills • Cultural awareness • Leadership • Networking • Political awareness Meetings: include status meetings, standup meetings, retrospectives, and any other meetings as agreed upon in the stakeholder engagement plan to monitor and assess stakeholder engagement levels. Meetings can be face-to-face, voice-to-voice, or a hybrid. OUTPUTS: include WPI, change requests, PMP updates (to resource and communications management plans, and stakeholder engagement plan), and project document updates (including Issue log, and registers for lessons learned, risks, and stakeholders).

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3. PMP 350 One Liner Important Tips •

Product of the Project is actually created in the EXECUTION Phase /Group. The execution phase is the biggest project phase.

It’s not enough that the Project Manager approves of the Project Management Plan; it needs to be approved by all of the stakeholders in the project.

When original estimates are flawed then EAC = AC + ETC.

Residual risks are REMAINING RISKS and Secondary risks are introduced risks that get introduce while planning risk response.

Quality is the process of completing the scope to meet stated or implied needs. It’s all about the customer satisfaction. Its also defined as degree to which your project fulfills requirements, Fitness for use, conformance to requirements.

A statistical method that helps identify which factors may influence specific variables of a product or process under development or in production is DESIGN OF EXPERIMENTS.

Large numbers of simultaneously performed projects utilize the same groups of human and other resources – is called RESOURCE POOLING.

As per HERZBERG, base Salary is a HYGINE FACTOR.

Quality Assurance is also a root-cause analysis process.

Inspections are NOT called as Assessments. Inspections are rather called as reviews, Audits and walkthroughs.

Historical information, i.e., organization assets, is the best input for the initiation phase.

Operations: are ongoing and repetitive while project are always temporary.

Making a coffee is a Project, getting it from a vending machine is an operation.

The Resource Breakdown Structure shows various resources, both human and mechanical needed for project.

Acquisition: When the performing organization lacks the in house staff needed to complete the project, the required services can be acquired from outside sources.

The work authorization system is a part of your company’s Enterprise Environmental Factors, and it’s generally part of any change control system.

When conflicts happen, the people involved in the conflict should work it out first.

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Planning phase is LEAST risky because the expected monitory loss is minimum. The final cost of the project is HIGH at the start and gets progressively LOW as the project continues.

Control Management System tracks the changes (not configuration management).

Comparing proposals received from sellers done in the Conduct Procurements.

Make payment to seller is done in the Administer Procurements.

Confronting means figuring out the cause of the problem and fixing it. That’s the best way to be sure that the right decision is made.

Control charts are graphic display of the results over a time of a process. They are used to determine if the process is "in control" or “within set limits”.

Pareto chart: Focus on critical issues to improve quality. It’s an 80-20 rule. This is a Histogram showing defects RANKED from GREATEST to LEAST. This rule states that 80% of the problems come from 20% of the causes. It is used to help determine the FEW ROOT CAUSES behind the MAJORITY OF THE PROBLEMS on a project.

Fishbone diagram/Ishikawa: Determines how various factors linked to potential problems or effects, it’s majorly referred as “root cause” analysis.

Histogram: ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause.

The point of total assumption is the point at which the seller assumes the costs.

Poor planning is the major cause of Failure and it applies to all process group and phases.

Approximating number of work periods required to complete individual activities with estimated resources is done in Estimate Activity Duration process.

Monte Carlo Analysis - A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results. It provides probability of any task being at CRITICAL PATH. It indicates the risk involved in the project

For any project work, it’s the project team along with the project manager who participates. This applies to all project phases after initiation.

For an immediate work, a letter contract may be sufficient.

Performance Measures are done in contract Administration.

Project Closure: o Contract closure occurs before Administrative closure.

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Product Verification, Procurement Audit and creation of a contract file are done in CONTRACT CLOSURE.

Last stage of project closure is project archives.

Procurement closure needs to happen before Project Closure. All procurements MUST be CLOSED before the project is closed.

Administrative closure should be carried out at the completion of each phase of the project Administrative closure is COMPLETE PROJECT Closure - so it can be done only once for project (or) Phase o

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Last step in Administrative closure is Release resources.

Procurement Audit is the only tool and Technique of contract closeout process o

Procurement Audit is used to identify successes to transfer the success to other procurements.

Employee records should be updated by PM when he completes the tasks assigned to him or her.

Individual development is the Foundation of Team development and is used during performance appraisal. T&M – has the characteristics of both Fixed and Cost reimbursement

When there’s a dispute between a buyer and a seller, that’s called a claim.

Symbols can be used in a good communication.

Independent estimates are prepared to compare the cost to an estimate created with. It’s a technique to verify the estimate given by various vendors.

Any change in the Project Charter needs to be approved by the senior management and should always be in favor of the sponsor.

REFERRENT power = PM’s PERSONALITY POWER.

Work Authorization system ensures that work is done at right time and in proper sequence. It helps in preventing scope creep is UNMANAGED changes to the Project SCOPE that goes out of control.

Solicitation is the process of obtaining quotations, bids, offer.

The Cost expended at the completion of phase is known as SUNK Costs.

Conflicting priorities in resource assignments – is an issue in the Matrix structure.

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Scope verification should be done – WHEN A PROJECT IS TERMINATED to determine the extent of the completion. It’s also done when the project is terminated (also referred using postmortem).

Gold plating is when you or your team adds more work to the project that was not requested by the sponsor or client.

Juran’s Quality Triology = PLANNING IMPROVEMENT CONTROL.

UCL: Upper Control Limit: Is derived from Random variation.

UTL: Upper tolerance limit is the higher of two tolerance limits.

Organization Matrix: Functional Matrix – FM has more power

Projectized Organization – PM has more power (resource has NO HOME) Weak Matrix – FM has more power.

Balanced Matrix – PM and FM has equal power. Folks who work in a balanced matrix organization report to a PM AND a functional manager equally.

Strong Matrix – PM has more power. Project managers have more authority than functional managers, but the team still reports to both managers.

Team development with WEAK Matrix is very difficult

Team building is difficult in ANY Matrix Organization structure.

In a matrix organization, the project manager doesn’t have LEGITIMATE power, because the team doesn’t directly report to the project manager.

MAKE or BUY is used for PLAN Purchases and Acquisitions.

CRASHING -> Add more resources to shorten the duration -> MORE COST.

FAST TRACK -> Perform more task in parallel -> MORE RISK.

Risk mitigation is to decrease the probability of risk.

Elapsed time is the time inclusive of non working days.

OUTSOURCING is risk transference.

The staffing management plan tells you everything that you need to know about when resources will be released from a project.

Networks (diagram) identify the Activity dependencies and path convergence risks.

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The process that begins with “Develop” or/and “Create” have main output same as that mentioned in the process. E.g. Output of “Develop Project Charter” is project charter.

E.g. Output of “Create WBS” is WBS.

Internal rate of return (IRR): o o o

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It’s the inherent discount rate or investment yield rate produced by the project over a pre-defined period of time. IRR is the discount rate when NPV equals zero. IRR assumes that cash inflows are reinvested at the IRR value. You should ALWAYS choose projects with the highest IRR value. It is the discount rate when the present value of the cash inflows EQUALS the original investment

Sensitivity chart (Tornado diagram) displays sensitivities in descending order.

85% cost of quality = DEMING.

A process goes out of control when there are special causes of variation.

A change control board (or CCB) is a group of people that approves or rejects changes. It usually includes the sponsor, which makes sense because the sponsor is the one funding the project.

Worker needs to be involved in Management Practice = OUCHI’s THEORY Z.

Definite costs are most accurate.

Milestone Duration is Always zero.

PERT is also a network diagram.

Complex project will best fit in MATRIX org structure.

BRUCE TRUKMAN Model is related to TEAM MANAGEMENT.

Payback period ended means Cumulative Revenue and cumulative cost from Starnet became equal.

Beta Distribution and Triangular distribution are probability distributions used in Risk Analysis.

Any time there’s a conflict of interest, it’s your duty to disclose it to your company.

The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs.

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The area consisting of typically three standard deviations on either side of a mean value of a control chart to plot measured values found in statistical quality control – this is definition for CONTROL CHARTS.

PMBOK Guide process groups Interact based on DEMING SHEWARTS PLAN DO CHECK ACT cycle.

The critical chain Method modifies the SCHEDULE to account for LIMITED RESOURCES.

A group of related scheduled activities – shown, as single aggregate activity for the reporting purpose is known as HAMMOCK Activity.

Cost base line does not include management reserve. Stake holder model – SALIENCE GRID.

RANK THE IDEAS in BRAINSTOMING – NOMINAL GROUP.

The Resource Histogram is a bar chart that shows your staffing needs over time. Arbitration and mediation are Negotiation Techniques.

Standards are OPTIONAL, Regulations are REQUIRED.

Single source seller means – there is only one seller the company wants to do BUSINESS with. Cost Performance baseline is represented as S curve.

First time feedback to a team member = Informal verbal (Face 2 Face), second time FORMAL written. ALL project communication to concern stakeholders should be FORMAL WRITTEN.

Non verbal communication is about 55%.

The Plan-Do-Check-Act cycle is a way of making small improvements and testing their impact before you make a change to the process as a whole. It comes from W. Edwards Deming’s work in process improvement.

CPI is considered most critical EVM Metric.

Resource leveling results in INCREASED PROJECT DURATION. Resource leveling can cause the original critical path to change.

Measuring Quality of the product against standard is called Benchmarking Fait accompli – done deal / non negotiable.

Lessons learned are part of the organizational process assets, not enterprise environmental factors. The nodes on the AOA diagrams represent completion of the activities and have ZERO time usage Statistical sampling for Inspection is used to reduce the cost of Quality control.

One method to determine how well the project is getting executed is using – CPI (Cost performance Index) It’s important to know that resources, schedules and priorities cause 50% of project problems and conflicts.

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Seller completes the work as specified, but the buyer is not happy – then the Contract is said to be COMPLETE (not closed though).

TCPI is the projection of the cost performance that must be achieved on the remaining work The objective of lesions learned document and audit process is continuous Improvement Training for the team members is not a prerequisite – it can happen during the project also. Resource over allotted – then do resource leveling.

Any time you do coaching, mentoring, training or anything else to help others learn about project management, you’re contributing to the project management body of knowledge.

Withdrawal – has cooling off period – but the problem is not solved.

The most important criteria for project selection is REALISM.

INFLATION = is an EXTERNAL UN Predictable RISK.

RDU = Remaining Duration.

The Pillars of the quality are DOING It RIGHT – first time and ZERO Defects.

Project risk is categorized by 3 factors a) Risk event, b) risk probability) amount at stake.

Probing, scratching and small bites – are the behaviors of the contract negotiations.

If you have to look/refer any plan – to respond regarding improving customer satisfaction – you need to look at QUALITY PLAN.

Lag means – make sure one tasks waits before it gets started. Lead means you let the task get started before its predecessor is done.

The best thing that you can do with a risk is avoiding it – if you can prevent it from happening, it definitely won’t hurt your project.

Output for source selection is CONTRACT.

Participative leadership is most preferred leadership style.

GERT (Graphical Evaluation and Review Technique) is a System Dynamics model. GERT, allows for conditional advancement. GERT allows for branching and LOOPBACKS.

Trigger is a warning sign.

People exhibit slowest rate of change (Bruce Willis -16 BLOCKS).

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For any given project, the project manager, in collaboration with the project team, is always responsible for determining which processes are appropriate, and the appropriate degree of rigor for each process.

The project initiator or sponsor will either create the project charter or delegate that duty to the project manager. The initiator’s signature on the charter authorizes the project.

Philip Crosby – said QUALITY IS FREE.

Whenever you use any of the seven basic tools of quality to examine the results of an inspection of your product, you are performing Quality Control.

An Expressed Warranty is a statement of characteristics of the product.

Which questions the functional manager is most likely to ask? WHO WILL DO THE TASK.

An activity that consumes no time or resources and shows only a dependency = DUMMY Activity.

The practice of ceasing mass inspections and ending awards based on price is credited to DEMING Making a GIANT leap followed by a period of Maturity = INNOVATION.

12 to 20% of the sales is estimated to be the cost of NON QUALITY RISK response of eliminating a threat = RISK AVOIDANCE.

The stage of the negotiation meeting – when he points of concession is identified = scratch bargaining Completion of PROJECT scope is measured against the plan (not PRODUCT SCOPE).

Quality control measurements are used to reevaluate and analyze the quality standards and processes and are fed back through: Quality ASSURANCE.

On large or mega projects the integration is the responsibility of the project office.

The Staffing Management plan includes a “Reward and Recognition” section that describes how you’ll reward your team for good performance.

If the results fall under customer tolerance then the results are acceptable to client Benchmarking is a Technique used in QUALITY PLANNING.

Lessons learned are professional obligation of the project Manager.

The project manager's ability to influence others whose cooperation and support are crucial to the project is called: DE FACTO AUTHORITY.

Taguci loss function states that - VARIATION from Target Value Increases, the Loss also INCREASES Contract is LEGAL relationship while project is NOT.

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The triple constraint is cost, schedule, and scope.

Withdrawal is the LEAST preferred method by the Project Manager. Risk audit documents the effectiveness of the risk responses.

Triangular distribution = PERT – Relies on Optimistic, Pessimistic and Most likely estimates (in Risk rating) Brain storming and Lateral Thinking are used in scope definition for ALTERNATIVES IDENTIFICATION Progressive Elaboration is what happens in rolling wave planning process.

Every risk should have a risk owner listed in the register.

Avoid, Mitigate, Transfer, Accept – are applicable for Negative Risks also Communications are COMPLEX in Matrix organization.

EVM does not play a major role in QUALITY MANAGEMENT PG Successor Activity LS- Duration of current activity= LS of Current Activity.

FIRM FIXED PRICE = Seller carries COST RISK, Buyer carries SCOPE RISK.

Product scope means the features and functions of the product or service being built.

Procurement documents ensure the receipt of complete proposals.

Project Performance appraisal focus on how individual team member is performing in the team.

Baseline is established during the PLANNING.

Meetings are always classified as INFORMAL VERBAL.

BCR 1.8 means that revenue from the project is 1.8 times the cost.

Training & Performance Appraisal for the team member in GENERAL Skills is the function of the FUNCTIONAL MANAGER.

High Standard Deviation is High Risk.

Constrained Optimization doesn’t have anything to do with Scope Definition – it’s a kind of benefit selection method.

Costs and staffing levels are lowest early in the life cycle, peak while the project work is underway, and then drop off as the project nears completion.

Risk is highest early in the project since uncertainty is high about the project’s deliverables, resource needs, and work required.

Stakeholder Influence in the project and its deliverables is highest early in the life cycle but diminishes as the project proceeds.

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Controlling unexpected project cost is to engage stakeholders early to prevent unnecessary and costly changes later in the project.

Time and Materials (T&M) contracts are used in labor contracts.

The payback period tells us how long it will take to recoup the expense of the project, so a shorter payback period is better.

Portfolio: A portfolio is a group of projects or programs that are linked together by a BUSINESS GOAL.

Program: A program is a group of projects that are closely linked, to the point where managing them together provides some BENEFIT.

Project: A project is any work that produces a specific result and is TEMPORARY.

Projects always have a beginning and an end. But they are never ongoing. Portfolios are organized around business goals and Programs are organized around a shared benefit in managing them together.

The most effective type of power for a project manager is Expert power.

ROI = (Benefit – Cost)/Cost

Mathematical models are that they use linear, dynamic, integer, nonlinear, and/or multiobjective programming in the form of algorithms—or in other words, a specific set of steps to solve a particular problem. Mathematical models are also known as constrained optimization methods.

Benefit Measurement Methods: employ various forms of analysis and comparative approaches to make project decisions. These methods include comparative approaches such as cost-benefit analysis, scoring models, and benefit contribution methods that include various cash flow techniques and economic models.

NET PRESENT VALUE - NPV: When you get a positive value for NPV, it means that the project will earn a return at least equal to or greater than the cost of capital.

There are two kinds of project selection methods. Benefit measurement models, or comparative methods, are used to compare the benefits and features of projects. Mathematical models use complex formulas to determine which project has the most value to the company.

The primary difference between focus groups and facilitated workshops are that focus groups are gatherings of prequalified subject matter experts and stakeholders and facilitated workshops consist of cross-functional stakeholders who can define cross-functional requirements.

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Completion of PROJECT SCOPE is measured against the PROJECT MANAGEMENT PLAN. While, completion of PRODUCT SCOPE is measured against PRODUCT REQUIREMENTS.

Control Account may include one or more Work Packages; each Work Package represents only one Control Account.

The WBS doesn’t show the order of the work packages or any dependencies between them.

Scope verification is primarily concerned with ACCEPTANCE of deliverables. Quality control is done before scope verification.

Project managers must have a “zero tolerance” policy on racist remarks, or any other cultural insensitivity.

Product scope: means the features and functions of the product or service that you and your team are building.

Project scope: is all of the work that needs to be done to make the product.

The work package is the LOWEST level on a WBS.

The WBS doesn’t show the order of the work packages or any dependencies between them.

Verify Scope: The process of formalizing acceptance of the completed project deliverables. Usually performed after Perform Quality Control.

Verify Scope happens at the end of each phase and the project and upon delivery of Product/Service/Result.

Verify Scope is concerned with completeness and acceptance, and Perform Quality Control is concerned with correctness.

If the project is cancelled/terminated before completion, Verify Scope is performed to show where the Project was in relation to the Scope when it ended.

If we don't receive a final sign off from our customer; we have to escalate the issue to our Management.

The halo effect is when you put someone in a position they can’t handle, just because they’re good at another job.

Defining activities is an iterative process performed together by the project manager and the project team member by further decomposing the WBS work packages.

ADM’s drawback is that it can only show finish-to-start (FS) relationships.

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In order to show relationships between tasks on different node branches, ADM diagrams use dummy activities.

The Arrow Diagramming Method (ADM) creates diagrams known as activity-on arrow (AOA).

The Precedence Diagramming Method (PDM) creates diagrams known as activity-on-node (AON).

Lead-time causes the successor task to begin before its predecessor task concludes...for example FS-2 would schedule the successor task to start before the predecessor task finish.

Lag time causes the successor task to begin sometime after its predecessor task concludes...for example; FS+1 would delay the start of the successor by 1 day.

Rough order of Estimate = +-50%.

Resource Calendars specify WHEN and HOW LONG identified project resource will be available during the project.

Analogous is TOP DOWN, Parametric is More Accurate, bottoms up is Accurate (when Parametric is not given).

Duration is the amount of time that an activity takes, while effort is the total number of personhours that are expended.

The Staffing Management Plan always includes a Resource Histogram.

Sunk Costs: costs incurred that cannot be reversed irrespective to future events.

Value Engineering/Analysis: finding less costly way to do the same work. E.g. outsourcing Marginal analysis: Spend time on improvement if it improves revenues or productivity.

Direct cost: include dedicated labor, material, supplies, equipment, licenses, fees, training, travel, or professional service fees - [Applied directly to THIS project].

Indirect cost: Example, if several project teams share a color printer, it’s difficult to definitively determine what percentage of costs each should share. [Expenses not for ONE project - these are Shared Expenses].

Variable cost: fluctuate and can't be predicted with absolute certainty. For example, travel or transportation costs that can change depending upon the cost of fuel or certain commodities and types of raw materials.

Fixed cost: are static throughout the project or have only a small likelihood of fluctuation. Fixed costs are usually for items such as rents, leases, licenses, salaries, and fixed fees.

Life Cycle Costing includes Acquisition, Operation, Maintenance, and Disposal Costs.

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SMOOTHING is minimizing the problem, and it can help cool people off while you figure out how to solve it.

The Scope Statement provides the Product Description, Acceptance Criteria, Key Deliverables, Project Boundaries, Assumptions, and Constraints about the Project.

Cost benefit: Looking at how much your quality activities will cost.

Benchmarking means using the results of quality planning on other projects to set goals for your own. It’s done during planning.

Design of experiments: is the list of all the kinds of tests you are going to run on your product.

Attribute Sampling: is binary, it either conforms to quality or it doesn’t (YES or NO). Variable Sampling: Measures how well something conforms to quality (RANGES).

Special Causes: considered unusual and preventable by process improvement. While, common causes are generally acceptable.

Tolerances deal with the limits your project has set for product acceptance.

Control Limits are set at three standard deviations above and below the mean. As long as your results fall within the control limits, your process is considered to be in control.

Tolerances focus on whether the product is acceptable, while Control Limits focus on whether the process itself is acceptable. (Control limit is for PROCESS).

Control Charts: The upper and lower control limits are set at THREE STANDARD DEVIATIONS ABOVE and BELOW MEAN.

Rule of Seven: If seven or more consecutive data points fall on one side of the mean, they should be investigated. This is true even if the seven data points are within control limits.

The Project Charter is often created without the project manager’s involvement. Sometimes it is handed to the Project Manager by the sponsor or high level manager.

Just In Time (JIT): To reduce expensive cost of holding inventory, many companies decrease inventory close to zero. A company using JIT must have high quality practices.

Cost of Quality = Prevention cost + Appraisal cost + control cost.

Low grade is OK, but Low Quality is NOT OK.

Quality assurance is focused on the processes and not the quality of the deliverables.

This is important for us to remember: quality assurance is concerned with quality processes while quality control is concerned with quality deliverables.

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Flow Chart: Shows HOW PROCESSES INTERRELATE.

Histogram (Column Chart): It shows HOW OFTEN something occurs, or it’s FREQUENCY (no Ranking).

KAIZEN is a JAPANESE word that means “improvement” - and it’s also a management technique that helps your company use problem solving to constantly find new ways to improve.

Run Chart: tell about TRENDS in the project. Shows the HISTORY and PATTERN.

Scatter Diagram: It is powerful tool for SPOTTING TRENDS in Data. Scatter Diagrams are made using two variables (a dependent variable and an independent variable).

W. Edwards Deming = Plan DO- check- Act + He also developed 14 activities for implementing quality Philip Crosby = Zero Defects,

Dr. Genichi Taguchi developed the concept of 'Loss Function'.

KAIZEN = Process Improvement.

Special causes are considered preventable. For example, a backup generator failed to start up during a power failure. The failure of the backup generator can be prevented in the future through regular mechanical maintenance and operational tests.

Common causes are thus generally considered as non-preventable and accepted as part of the process.

Inspection keeps errors in the product from reaching the customer. Prevention keeps errors from occurring in the process.

FORMAL, REWARD, PENALTY are powers derived from project manager’s position in the company.

Theory X - Authoritarian leadership style.

Theory Y - Authoritarian Democratic/ Laissez- faire leadership style Theory Z - Authoritarian Democratic leadership style.

Laissez-faire: The leader turns nearly all control over to the group and is generally absent.

Conflict can come from seven main sources, of which the first three account for 50%. They are 1. Schedules, 2. Priorities, 3. Manpower/human resource availability, 4. Technical opinions, 5. Procedural or project administration, 6. Costs, 7. Personalities (SP is first 2 and CP is last 2).

Generally, only one person is assigned Accountability for a work package, but more than one person may be responsible for performing the work on a work package.

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Confronting: It’s a Win-Win situation.

Compromising: Lose-Lose method.

Withdrawal: Lose-Leave method.

Smoothing: Lose-Yield method.

Forcing: Win-Lose method (Worst way).

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Salience Model - describing classes of stakeholders based on their Power, Urgency and Legitimacy.

When you’re asked to use benefit-to-cost (BCR) ratios to select a project, always choose the project with the highest BCR because that’s the project that gives you the most benefit for the least cost.

SENDER'S responsibility to make the message clear, complete, and understood.

Nonverbal communication means your gestures, facial expressions, and physical appearance while you are communicating your message.

Paralingual communication is the tone and pitch of your voice when you’re talking to people. If you sound anxious or upset, that will have an impact on the way people take the news you are giving.

Distribute Information is concerned with general project information, such as meeting minutes, issues, and correspondence.

Report Performance focuses on performance reporting against baselines, such as scope, schedule, cost, or quality. Report Performance uses time, cost, and related WPI.

According to Kerzner - "90% of the Project Manager's time is spent communicating."

Management Skills = Presentations skills, negotiation skills, writing and public speaking skills.

Risk Breakdown Structure (RBS): It is not breaking down the actual risks, instead, we are breaking down the CATEGORIES of risks that we will evaluate.

The amount of tolerance a person or organization has for risks is referred to as its risk utility.

By the time the Contract Closure procedure happens, you should have already gotten formal written acceptance for the deliverables.

Watchlist: Low priority risks should be regularly monitored so make sure they are not occurring and that their probability, impact, or priority hasn't changed.

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Risk Score: The probability and impact score for the risk. This is obtained from a formula (usually probability x impact) defined in the risk management plan and generated from the probability and impact matrix.

The management reserve is for unknown-unknowns—things that you haven’t planned for but could impact your project.

The contingency reserve is for known - unknowns, or risks that you know about and explicitly planned for and put in your risk register.

Transfer: Transference assigns all or part of risk to a third party through outsourcing, contracts, insurance, warranties, guarantees, or performance clauses.

Risk response- fails> then contingency plan...If contingency plan fails then > Fall back plan, i.e., in other words=> It can be looked at as a contingency plan for the contingency plan.

The two main outputs of Direct and Manage Project Execution are Deliverables and WPI.

CPFF - More risk for BUYER (some say T&M).

FFP - More risk for SELLER.

UNILATERAL: this is a special class of contract in which the seller doesn't have to explicitly accept the offer in order for a contract to be established. This is a unilateral contract, and the best example is a purchase order (PO).

Claims are usually addressed through the contract change control system.

The payment system is how your company pays its sellers.

100% rule comes in WBS.

Force Majeure Risks, such as Earthquakes, Floods, Acts of Terrorism, Etc., should be covered under Disaster Recovery Procedures instead of Risk Management.

Journey to Abilene = Committee decisions can have the paradox outcome, that a jointly made or approved decision is not desired by any individual group member.(nobody likes the outcome).

“Force majeure” is a kind of clause that you’ll see in a contract. It says that if something like a war, riot, or natural disaster happens, you’re excused from the terms of the contract.

What is a constructive change? = Consideration of undocumented change = A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.

Getting collective action from a group of people who may have quite different interests is 'Politics'.

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Arbitration is a form of negotiation. Technically, it is a form of assisted negotiation.

Primary Responsibility of the Project Manager is 'Interact with others in a Professional Manner while completing the project'.

Subnets are often included in network templates to summarize common activities in a project.

Parkinson's Law states that work will expand to fulfill the time allotted to it. (SUPER!- That’s what we do in real life right…)

Soft logic allows the project manager to make decisions based on conditions outside of the project, best practices, or guidelines.

Milestone Schedule can also be called as Master Schedule.

The arrow diagramming method does not support finish-to-finish of relationships.

GERT is the only diagramming technique that allows loops.

The primary purpose of a network diagram is to show logical relationships.

Value analysis is a way of finding the least expensive way to do the work.

Fringe benefits are included in overhead and are part of indirect costs.

Administrative closure means working with the team to make sure that all of your project’s exit criteria are met.

Contract closure is what you do to make sure that your contract’s terms are satisfied.

Design of experiments uses experiments and 'what-if' scenarios to determine what variables are affecting quality.

Having an allowable defect rate is an example of the cost of non-quality. Any system or process that will accept defects adds cost to the product or service. Staffing Management Plan: WHEN and HOW resource will be ADDED and TAKEN OFF the team.

A corner office is a "perk" whereas health benefits are a fringe benefit.

Mentoring: is the work that a project manager may be frequently called on to perform.

Performance issues are senior and functional management's responsibility - usually the manager who supervises the resource.

The projects REPORTS are documents formal reports on project status and/or issues, while project RECORDS are correspondence, memos, and documents describing the project.

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Conflict is not a filter of communication—it is a communication hindrance. Nonverbal communication carries 55 percent of the message you send. With this much at stake, nonverbal communication is of major importance.

The utility function describes a person's willingness to tolerate risk.

For immediate work, a letter contract may suffice. The intent of the letter contract is to allow the vendor to get to work immediately to solve the project problem.

When you must begin work immediately without a procurement statement of work, the most appropriate choice is time and material.

Outputs of all 42 Processes will be stored in PMIS.

Cause & Effect/Ishikawa/Fishbone Diagram are also called the 5 WHY Technique.

Leads and lags are APPLIED as part of the Develop Schedule process, but then they are ADJUSTED in the process of Control Schedule.

Zero Schedule Variance (SV) means the task is completed.

The To-Complete-Performance-Index (TCPI) is: The cost performance index (CPI) required in the remainder of a project to meet financial goals.

The S curve is the cost performance baseline. The cost performance baseline is used to track cost performance based on the original plan plus approved changes.

Requirement Traceability Matrix helps preventing gold plating Parametric Estimates may not scale

For cost plus contract RFP is suitable.

NPV will help you to build most precise business case Standard deviation in a chart measures PRECISION.

Changing Management Approach based on the team members experience = SITUATIONAL CONTINUUM PMIS resides in EEF (enterprise environmental factors).

ARMA is an econometric method (Auto regressive moving average) LOI is not a legal document.

Project Manager cannot be a lead negotiator.

Work performance measurements will ALWAYS compare actual progress vs planned progress. WPI is information and data without any benchmark comparison.

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4. PMP Numerical Formulas PV EV AC PERT Project PERT Standard Deviation Variance Float or Slack Cost Variance (CV) Schedule Variance (SV) Cost Performance Index Schedule Performance. Index

Estimate At Completion (EAC)

Estimate To Complete (ETC) Variance At Completion (VAC) To Complete Performance Index (TCPI)

Net Present Value Present Value PV Internal Rate of Return Benefit Cost Ratio Payback Period BCWS BCWP ACWP Order of Magnitude Estimate (early stage) Budget Estimate Definitive Estimate Total Communication Channels Expected Monetary Value (EMV)

Planned Value Earned Value Actual Cost (P + 4M + O)/ 6 Pessimistic, Most Likely, Optimistic SUM of PERT values of all individual tasks (P - O) / 6 [(P - O)/6] squared (squared i.e. n * n) LS-ES and LF-EF EV – AC [Positive value is good] EV – PV [Positive value is good] EV / AC EV / PV 1. AC + ETC [if the original estimate is based on wrong data/assumptions or circumstances have changed] 2. AC + BAC – EV [the variance is caused by a one-time event and is not likely to happen again] 3. BAC/CPI [if the CPI would remain the same till end of project, i.e. the original estimation is not accurate] 4. AC+[(BAC-EV)/(CPI*SPI] [if substandard performance continues] EAC – AC BAC – EAC (BAC - EV) / (BAC - AC) -> Based on BAC (BAC – EV) / (EAC – AC) -> Based on EAC Values for the TCPI index lesser then 1 is good because it Indicates the efficiency to complete is less than planned. Bigger is better (NPV) FV / (1 + r)^n Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback VS. cost) Or PV or Revenue / PV of Cost Less is better Net Investment / Avg. Annual cash flow. PV EV AC -25 to + 75% as per PMBOK -10% - +25% -5% - +10% N (N -1)/2 Probability * Impact

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Point of Total Assumption (PTA) Critical Path: Forward Pass: (Add 1 day to Early Start) Critical Path: Backward Pass: (Minus 1 day to Late Finish)

Sigma σ Or Normal Distribution

Return on Sales (ROS) Return on Assets (ROA) Return on Investment (ROI) Working Capital Discounted Cash Flow

Contract related formulas Project Variance

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((Ceiling Price - Target Price)/buyer's Share Ratio) + Target Cost EF = (ES + Duration - 1) LS = (LF - Duration + 1) ES = Early Start; EF = Early Finish LS = Late Start; LF = Late Finish 1σ = 68.27% 2σ = 95.45% 3σ = 99.73% 6σ = 99.99985% Net Income Before Taxes (NEBT) / Total Sales OR Net Income After Taxes (NEAT) / Total Sales NEBT / Total Assets OR NEAT / Total Assets NEBT / Total Investment OR NEAT / Total Investment Current Assets - Current Liabilities Cash Flow X Discount Factor Savings = Target Cost – Actual Cost Bonus = Savings x Percentage Contract Cost = Bonus + Fees Total Cost = Actual Cost + Contract Cost Sum of variances of all individual task

5. PMP Frequently Asked Questions (FAQ) What is the PMP exam? PMP stands for Project Management Professional certification. This is an exam offered by PMI (the Project Management Institute) for practicing Project Managers. The PMP is a globally recognized certification exam and is well respected in the industry. The exam is extremely popular. What kind of organization is PMI? The Project Management Institute was founded in 1969. The goal of PMI is continuous growth and development of the discipline of Project Management. PMI started the PMP exam in 1984. PMI has chapters all across the globe. These chapters provide extensive help in preparing for the exam. PMI offers four types of services/products. Details of PMI can be found at www.pmi.org What is the procedure to get PMP certified? The certificate requires that you have at least 4500 hours of experience in Project Management. Also the candidate should have attended at least 35 hours of classroom training on Project Management. PMI explains the eligibility criteria in detail in the PMP certification handbook. If you meet these criteria, then you can file the application from PMIs site Certification section. You also have to submit the application fees when you submit the application. After you have submitted the

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application, PMI will review your application. If everything goes smoothly, in a few days you will receive an acceptance letter/e-mail from PMI. After this you can schedule the exam. How many questions are there in the exam? How much time do I get? The exam has 200 multiple-choice questions. Each question has exactly one correct answer. You will get four hours to answer these questions. Most people find four hours to be more than sufficient for the exam. Out of these 200 questions, 25 questions are pretest questions. These are randomly places throughout the exam and are used for research purposes. These questions are not evaluated while computing exam results. You will only be evaluated on the basis of 175 questions. Is there any negative marking in the exam? There is no negative marking in the exam. Unanswered questions are treated as wrong questions. Exam is preceded by 15-minute computer tutorial on the format of the exam. Can I view my exam results at the PMI site? You can view your PMP credential status at https://www.pmi.org/certapp/default.aspx You can also view certification status of other individuals at https://www.pmi.org/CertApp/Registry.aspx How much does it cost to take the exam? PMP is an expensive exam. This ensures that only serious candidates pursue it. It also ensures that the certificate remains prestigious. The exam costs $405 for PMI members and $555 for non-members. Since the annual fees for PMI membership is $139, it makes sense to become a member and then apply for the exam. Do I need to memorize all the Inputs, Tools and Techniques, and Outputs? Opinions vary on this one. The most important thing is to understand the meaning and concepts related to all the inputs, tools and techniques, and outputs. You do not have to memorize the inputs, tools and techniques, and outputs for all the processes to clear the exam. You may get few questions that directly ask the inputs, tools and techniques, and outputs for a process. So if you can memorize a few key ones that will be helpful too. Will the PMP certification help me get a job? More and more Project Management related jobs in today's world require PMP certification. Getting PMP certification is not a guarantee for a successful job search. But it can help you get those elusive interview calls. In today's competitive job market if you are looking for a Project Managers position, then getting PMP certified can significantly increase your chances of getting a job. Also many organizations use the terminology and tools that you will learn as part of PMP certification. The certification will certainly help you do your job better.

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What am I allowed to take inside the exam? You are not allowed to take anything except your IDs into the exam room. Inside the examination center you will be provided with rough sheets, pencils and a calculator. Where to concentrate more for the PMP exam? Every PMBOK line is a potential PMP questions. Please do not try any shortcut. Spent time and read and understand PMBOK the maximum you can. Is PMP exam questions arranged in any sequence? We have kept it randomly arranged so that your mind accepts anything unexpected from any section. How do I learn ITTO? You need to find out your own way. Importantly you need to understand the flow What is PMP passing score? PMI institute that conducts PMP exam has removed information about PMP passing score from their “PMP – Handbook”. What you hear from across and forums are all interpreted individual’s rumors. Just keep a simple formula in mind i.e. try scoring around 70% in ALL process group, you will pass for sure. Does it matter if I score “Target” or “Above Target”? Yes, if it’s a mock test like us. Above Target means higher accuracy and of course it shows your better preparations. BUT, in real PMP exam, just look for the verdict i.e. “Pass” because PMP certificate issued by PMI does not put any percentage it just says you have passed the PMP exam. But it shows what is your score in terms of process group etc.

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6. Exam Day Tips

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If You Have Any Questions or Need Support Please write to support@pmaspire.com

“BEST WISHES FOR THE PMP EXAM!” Distributing of this document is strictly prohibited.

Disclaimer "PMI", "PMP", "PgMP", "CAPM", “PMI-ACP”,"PMBOK Guide" and the PMI Registered Education Provider Logo are trademarks of Project Management Institute, Inc.

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PMP QUICK STUDY GUIDE  

PMP Quick Study Guide is a 62 pager special notes for PMP Aspirants. This note will help a student quickly recap the 600 pages PMBOK in just...

PMP QUICK STUDY GUIDE  

PMP Quick Study Guide is a 62 pager special notes for PMP Aspirants. This note will help a student quickly recap the 600 pages PMBOK in just...

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