PMI Exam Study Notes - Rajesh

PROJECT MANAGEMENT KNOWLEDGE AREAS & 44 Processes....................................................................................2 PMBOK (Project Management Body of Knowledge)....................................................................................................................7 Chapter 1 – Introduction (Project Management Framework)....................................................................................................7 Chapter 2 – Project Life Cycle and organization.......................................................................................................................9 Chapter 3 – Project Management Processes for a project.......................................................................................................10 Chapter 4 – INTEGRATION Management................................................................................................................................11 Chapter 5 – SCOPE Management.............................................................................................................................................13 Chapter 6 – TIME Management................................................................................................................................................16 Monte Carlo Analysis – 1. Probability of Completion 2. Probability of Completion in amount of Cost 3.Probability of activity in critical path 4. Risk...............................................................................................................................................................17 Chapter 7 – COST Management................................................................................................................................................20 Chapter 8 – QUALITY Management..........................................................................................................................................23 Chapter 9 - HUMAN RESOURCE Management.......................................................................................................................27 Chapter 10 – COMMUNICATIONS Management....................................................................................................................31 Chapter 11 – RISK Management...............................................................................................................................................34 Chapter 12 – PROCUREMENT Management...........................................................................................................................37 Select Sellers – Tools & Techniques........................................................................................................................................37 Chapter 13 – Professional Responsibilities...............................................................................................................................41 POSSIBLE EXAM QUESTIONS....................................................................................................................................................42

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PMI Exam Study Notes - Rajesh PROJECT MANAGEMENT KNOWLEDGE AREAS & 44 Processes
Knowledge Areas Major Processes Primary Inputs Tools & Techniques Primary Outputs

Develop Project Charter

Developing the project charter that formally authorizes a project or a project phase 1. Contract (when applicable) 2. Project Statement of Work 3. Enterprise environmental factors 4. Organizational Process Assets 1. Project Charter 2. Project Statement of Work 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Preliminary project Scope Statement 2. Project Management Processes 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Project Management Plan 2. Approved Corrective actions 3. Approved Preventive Actions 4. Approved Change Requests 5. Approved defect repair 6. Validated defect Repair 7. Administrative Closure Procedure 1. Project Management Plan 2. Work Performance Information 3. Rejected Change Requests 1. Project Selection Methods 2. Project Management Methodology (PMM) 3. Project Management Information system(PMIS) 4. Expert Judgment 1. PMM 2. PMIS 3. Expert Judgment 1. PMM 2. PMIS 3. Expert Judgment 1. PMM 2. PMIS 1. Project Chapter

Develop Preliminary Project Scope Statement Develop Project Management Plan

Developing Preliminary Project Scope Statement that provides high level scope narrative. Documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans into a project management plan. Executing the work defined in the project management plan to achieve the project’s requirements defined in the project scope statement.

1. Preliminary project Scope Statement

1. Project Management Plan

Direct and Manage Project Execution

1. Deliverables 2. Requested Changes 3. Work Performance Information 4. Implemented corrective actions 5. Implemented Preventive actions 6. Implemented Change Requests 7. Implemented defect repair 1. Recommended corrective actions 2. Recommended Preventive actions 3. Recommended Defect Repair 4. Forecasts 5. Requested Changes 1.Project Management Plan(updates) 2. Project Scope Statement (updates) 3. Deliverables 4. Approved corrective actions 5. Approved corrective actions 6. Approved Change Requests 7. Rejected Change Requests 8. Approved Defect Repair 9. Validated Defect Repair 1. Administrative closure Procedure 2. Contract closure Procedure 3. Final Product, Service or result 4. Organizational Process Assets (updates)

Monitor and Control Project Work

Integrated Change Control

Monitoring and Controlling the processes used to initiate, plan, execute, and close a project to meet the performance objectives defined in the project management plan Reviewing all change requests, approving changes, and controlling changes to the deliverables and organizational process assets.

1. PMM 2. PMIS 3. Earned Value Technique 4. Expert Judgment 1. PMM 2. PMIS 3. Expert Judgment

1. Project Management Plan 2. Deliverables 3. Work Performance Information 4. Requested Changes 5. Recommended corrective actions 6. Recommended Preventive actions 7. Recommended Defect Repair

Close Project

Finalizing all activities across all of the project management process groups to formally close the project or a project phase.

1. Project Management Plan 2. Contract Documentation 3. Deliverables 4. Work Performance Information 5. Enterprise environmental factors 6. Organizational Process Assets

1. PMM 2. PMIS 3. Expert Judgment

Scope Planning

Pack Dynamite With Verified Care – (PDWVC)
Creating a project scope management plan that documents how the project scope will be defined, verified, controlled and how the work breakdown structure will be created and defined. Developing a detailed project scope statement as the basis for future project decisions. Subdividing the major project deliverables and project work into smaller more manageable components 1. Project charter 2. Preliminary Project Scope Statement 3. Project Management Plan 4. Organizational Process Assets 5. Enterprise environmental factors 1. Project charter 2. Preliminary Project Scope Statement 3. Project Scope Management Plan 4. Organizational Process Assets 5. Approved Change requests 1. Project Scope Statement 2. Project Scope Management Plan 3. Organizational Process Assets 4. Approved Change requests 1. Expert Judgment 2. Templates, forms, standards 1. Project Scope Management Plan

Scope Definition

1. Product analysis 2. Stakeholder analysis 3. Alternatives Identification 4. Expert Judgment 1. Work Breakdown Structure Templates 2. Decomposition

1. Project Scope Statement 2. Project Scope Management plan (updates) 3. Requested changes 1. Project Scope Statement (Updates) 2. Project Scope Management plan (updates) 3. Scope baseline 4. Work Breakdown Structure 5. WBS dictionary 6. Requested changes 1. Accepted deliverables 2. Requested Changes 3. Recommended corrective actions 1. Project Scope Statement (updates) 2. Scope Baseline (updates) 3. Work Breakdown Structure (updates) 4. WBS Dictionary (updates) 5. Project Management plan (updates)

Create WBS

Scope Verification

Formalizing acceptance of the completed project deliverables. Controlling changes to the project scope.

Scope Control

1. Project Scope Statement 2. Project Scope Management Plan 3. WBS dictionary 4. Deliverables 1. Project Scope Statement 2. Project Scope management plan 3. Work breakdown structure 4. WBS dictionary 5. Work Performance information

1. Inspection

1. Variance analysis 2. Re planning 3. Change Control system 4. Configuration Management system

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PMI Exam Study Notes - Rajesh
6. Performance reports 7. Approved Change requests 6. Organizational Process Assets (Updates) 7. Recommended Corrective action 8. Requested changes

Activity Definition

Identifying the specific schedule activities that need be performed to produce the various project deliverables 1. Enterprise environmental factors 2. Organizational Process Assets 3. Project Scope Statement 4. Project Management Plan 5. Work breakdown structure 6. WBS dictionary 1. Project Scope Statement 2. Activity list 3. Activity Attributes 4. Milestone list 5. Approved Change Requests 1. Enterprise environmental factors 2. Organizational Process Assets 3. Project Management Plan 4. Activity list 5. Activity Attributes 6. Resource Availability 1. Enterprise environmental factors 2. Organizational Process Assets 3. Project Scope Statement 4. Project Management Plan .Risk register .Activity Cost estimates 5. Activity list 6. Activity Attributes 7. Activity Resource requirements 8. Resource Calendar 1. Enterprise environmental factors 2. Project Scope Statement 3. Project Management Plan . Risk register 4. Activity list 5. Activity Attributes 6. Project Schedule network diagrams 7. Activity Resource requirements 8. Resource Calendars 9. Activity duration estimates 1. Schedule management plan 2. Schedule baseline 3. Performance reports 4. Approved Change requests 1. Decomposition 2. Templates 3. Rolling wave planning 4. Planning component 5. Expert Judgment 1. PDM 2. ADM 3. Schedule Network templates 4. Dependency determination 5. Applying leads and lags 1. Bottom-up estimating 2. Alternatives Analysis 3. Published estimated data 4. Project Management Software 5. Expert Judgment 1. Analogous estimating 2. Parametric estimating 3. Three-point estimates 4. Reserve Analysis 5. Expert judgment 1. Activity List 2. Activity Attributes 3. Milestone list 4. Request Changes

Activity Sequencing

Identifying and documenting dependencies among schedule activities

1. Project Schedule Network diagrams 2. Activity list (updates) 3. Activity attributes (updates) 4. Requested changes 1. Activity resource requirements 2. Activity attributes (updates) 3. Resource calendar (updates) 4. Resource Breakdown Structure 5. Requested changes 1. Activity Duration estimates 2. Activity attributes (updates)

Activity Resource Estimating

Estimating the type and quantities of resources required to perform each schedule activity

Activity Duration Estimating

Estimating the number of work periods that will be needed to complete each schedule activities.

Schedule Development

Analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

1. Schedule Network analysis 2. Critical path method 3. Schedule Compression 4. What-if scenario analysis 5. Resource leveling 6. Critical chain method 7. Project management software 8. Applying calendars 9. Adjusting leads and lags 10. Schedule model 1. Progress Reporting 2. Schedule change control system 3. Performance measurement 4. Project management software 5. Variance analysis 6. Schedule comparison bar charts

1. Project schedule 2. Schedule model data 3. Schedule baseline 4. Resource requirements (updates) 5. Activity attributes (updates) 6. Project calendar (updates) 7. Requested Changes 8. Project Management Plan (updates) .Schedule Management Plan (updates) 1. Schedule model data (updates) 2. Schedule baseline (updates) 3. Activity list (updates) 4. Activity Attributes (updates) 5. Performance measurements 6. Requested changes 7. Recommended Corrective actions 8. Project Management Plan (updates) 9. Organizational Process Assets (updates)

Schedule Control

Controlling changes to the project schedule.

Cost Estimating

EBC radio is free of cost.
Developing an approximation of the costs of the resources needed to complete project activities 1. Enterprise environmental factors 2. Organizational Process Assets 3. Project Scope Statement 4. Work breakdown structure 5. WBS dictionary 6. Project Management Plan Schedule Management Plan Staffing Management Plan Risk Register 1. Project Scope Statement 2. Work breakdown structure 3. WBS dictionary 4. Activity Cost estimates 5. Activity Cost Estimate Supporting detail 6. Project Schedule 7. Resource Calendars 8. Contract 9. Cost management plan 1. Cost baseline 2. Project funding requirements 1. Analogous estimating 2. Determine Resource Cost Rates 3. Bottom-up estimating 4. Parametric estimating 5. Project Management Software 6. Vendor Bid analysis 7. Reserve analysis 8. Cost of Quality 1. Cost aggregation 2. Reserve Analysis 3. Parametric Estimating 4. Funding Limit reconciliation 1. Activity Cost estimates 2. Activity Cost Estimate Supporting detail 3. Requested Changes 4. Cost management plan (updates)

Cost Budgeting

Aggregating the estimated costs of individual activities or work packages to establish a cost baseline.

1. Cost baseline 2. Project funding requirements 3. Cost management plan (updates) 4. Requested Changes

Cost Control

Influencing the factors that create cost variances and

1. Cost change control system 2. Performance measurement

1. Cost estimates (updates) 2. Cost baseline (updates)

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PMI Exam Study Notes - Rajesh
controlling changes to the project budget. 3. Performance reports 4. Work performance information 5. Approved Change requests 6. Project management plan Analysis 3. Forecasting 4. Project performance reviews 5. Project Management software 6. Variance Measurement 3. Performance Measurements 4. Forecasted Completion 5. Requested Changes 6. Recommended corrective actions 7. Organization process assets (updates) 8. Project management plan (updates)

Quality Planning

The quality 3PACk. (3 PAC)
Identifying which quality standards are relevant to the project and determining how to satisfy them. 1. Enterprise environmental factors 2. Organizational Process Assets 3. Project Scope Statement 4. Project Management Plan 1. Cost-Benefit analysis 2. Benchmarking 3. Design of experiments 4. Cost of quality (COQ) 5. Additional quality Planning Tools 1. Quality planning tools and techniques 2. Quality audits 3. Process analysis 4. Quality control tools and techniques 1. Quality management plan 2. Quality Metrics 3. Quality Checklists 4. Process Improvement Plan 5. Quality Baseline 6. Project Management Plan (updates) 1. Requested Changes 2. Corrective Actions 3. Organization process assets (updates) 4. Project management plan (updates)

Perform Quality Assurance

Applying the planned systematic quality activities to ensure that project employs all processes needed to meet requirements

1. Quality management plan 2. Quality Metrics 3. Process Improvement Plan 4. Work performance Information 5. Quality control Measurements 6. Approved Change Requests 7. Implemented Corrective Actions 8. Implemented Preventive Actions 9. Implemented Change Requests 10. Implemented Defect Repair 1. Quality management plan 2. Quality Metrics 3. Quality Checklists 4. Organization process assets 5. Work performance Information 6. Approved Change Requests 7. Deliverables

Perform Quality Control

Monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

1. Cause and effect diagram 2. Control charts 3. Flow-charting 4. Histogram 5. Pareto chart 6. Run Chart 7. Scatter diagram 8. Statistical sampling 9. Inspection 10. Defect repair review

1. Quality Control Measurements 2. Validated Defect Repair 3. Quality Base line (updates) 4. Recommended Corrective Actions 5. Recommended Preventive Actions 6. Requested Changes 7. Recommended Defect Repair 8. Organization process assets (updates) 9. Validated deliverables 10. Project management plan (updates)

Human Resource Planning

Identifying and documenting project roles, responsibilities and reporting relationships as well as creating the staffing management plan Obtaining the human resources needed to complete the project. 1. Enterprise Environmental Factors 2. Organizational Process Assets 3. Project management plan .Activity resource requirements 1. Enterprise Environmental Factors 2. Organizational Process Assets 3. Roles and responsibilities 4. Project Organization charts 5. Staffing management plan 1. Project Staff Assignments 2. Resource Availability 3. Staffing management plan

1. Organization charts and
position descriptions 2. Networking 3. Organizational theory. 1. Pre-assignment 2. Negotiation 3. Acquisition 4. Virtual teams 1. General management skills 2. Training 3. Team-building activities 4. Ground rules 5. Co-location 6. Recognition and rewards 1. Observation and conversation 2. Project performance appraisals 3. Conflict management 4. Issue log

1. Roles and responsibilities 2. Project Organization charts 3. Staffing management plan 1. Project Staff Assignments 2. Resource Availability 3. Staffing management plan (updates) 1. Team Performance assessment

Acquire Project Team

Develop Project Team

Improving the competencies and interaction of team members to enhance project performance.

Manage Project Team

Tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance

1. Organizational Process Assets 2. Project Staff Assignments 3. Roles and responsibilities 4. Project Organization charts 5. Staffing management plan 6. Team Performance assessment 7. Work Performance Information 8. Performance Reports

1. Requested Changes 2. Recommended Corrective Actions 3. Recommended Preventive Actions 4. Organization process assets (updates) 6. Project management plan (updates)

Communications Planning

Determining the information and communications needs of the stakeholders 1. Enterprise Environmental Factors 2. Organizational Process Assets 3. Project Scope Statement 4. Project management plan .Constraints .Assumptions 1. Communication management plan 1. 2. Communications requirement analysis Communications Technology 1. Communication management plan

Information Distribution

Making needed information available to project stakeholders in a timely manner

1. Communication skills 2. Information gathering and retrieval systems 3. Information distribution methods 4. Lessons learned Process

1. Organizational Process Assets (updates) 2. Requested Changes

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Organizational Process Assets 2. EMV. Performance information gathering and compilation 3. Recommended Corrective Actions 5. Project Management Plan 1. Contract change control system 2. This includes Status reporting. Weighting system 2. Project scope statement 4. 1. Procurement Document Package 5. Strategies for positive risk or opportunities 3. Risk Management Plan 2. Requested Changes 3. Project Management Plan 1. Checklist analysis 4. Recommended Corrective actions Plan Contracting Preparing the documents needed to support solicitation Obtaining quotations. Decision Tree) 1. Resource Availability 5. Make or buy analysis 2. Recommended Preventive actions 5. Technical performance measurement 5. Project Management Plan 1. Risk Register 5. Approved corrective actions 4. Procurement Documents 1. (Sensitivity. Organizational Process Assets (updates) 5. Forecasts 3. Organizational Process Assets 3. Risk Management Plan 4. Status review meetings 4. Enterprise Environmental Factors 2. Risk Register 3. Deliverables 1. Enterprise Environmental Factors 2. ensuring the execution of risk plans and evaluating the effectiveness in reducing risk. Procurement Management Plan (Updates) 6. Quantitative Risk analysis & modeling techniques. Proposal Evaluation Techniques 1. Organizational Process Assets 1. Contingency response strategy 1. Forecasted completion 4. Develop qualified sellers list 1. Project Management Plan 1. Project Management Plan (Updates) PROCUREMEN T Plan Purchases & Acquisitions PPSSAC Determining what to procure and when (make or buy) 1. Resolved Issues 2. Performance Measurements 3. Project Scope Statement 5. Risk Management Plan 2. and identifying new risk. Assumptions analysis 5. Risk Register 1. Risk data quality assessment 4. Data Gathering and representation techniques (Interviewing. Project Management Plan 1. Proposals 6. Variance and trend analysis 4. monitoring residual risks. Expert judgment 3. Determining which risks are likely to affect the project & documenting their characteristics Assessing the impact and likelihood of identified risks. Work Performance Information 5.PMI Exam Study Notes . Risk Register (Updates) 1. Information presentation tools 2. offers. Approved Change requests 7. Procurement documents 2.Risk Register Qualitative Risk Analysis 1. Organizational Process Assets 3. Risk audits 3. Deciding how to approach and plan risk management activities. Evaluation criteria 3. Make or Buy Decisions 4. Proposals 1. Requested Changes 3. Planning meetings and analysis 1. Expert Judgment 7. Buyer conducted performance review Request Seller Responses Select Sellers Contract Administration Ensuring that the seller’s performance meets contractual requirements Page 5 of 46 12/19/07 Last Updated .Rajesh Performance Reporting Collecting and distributing performance information. Project management plan (updates) RISK Risk Management Planning Risk Identification It's risky to have an IQ in DC. Make or Buy Decisions 4. Procurement Document Package 3. Requested Changes 4. Requested changes 1. Communications Methods 2. Selected Sellers 2. Project management plan Performance measurement baseline 6.Risk Register (Updates) Quantitative Risk Analysis A process that analyzes numerically the probability of each risk and its consequence on project objectives Risk Response Planning Developing options & determining actions to enhance opportunities to reduce threats to project objectives 1. Qualified Sellers List 7. 1. probability distribution and EJ) 2. Reserve analysis 6. progress measurement and forecasting 1. Cost reporting systems 1. Work Performance Information 2. 1. Risk Register 3. Contract Statement(s) of Work 3. Risk management plan 1. Organizational Process Assets (updates) Manage Stakeholders Managing communications to satisfy the requirements of and resolve issues with project stakeholders. Risk related contractual agreements Risk Monitoring & Control Tracking identified risk. Project Management Plan * Project Schedule Management Plan * Project Cost Management Plan 1. Contract Negotiation 5. Info-gathering techniques 3. Performance Reports 1. Enterprise Environmental Factors 2. Approved Change Requests 4. WBS Dictionary 6. Contract 2. Strategies for both threats and opportunities 4. Risk Categorization 5. Contract Statement of work (updates) 1. Contract Management Plan 3. Project Management Plan 1. Quality control measurements 5. Project Scope Statement 4. Probability and impact matrix 3. Evaluation Criteria 4. Procurement management plan 2. Procurement mgmt plan 2. Contract types 1. Organizational Process Assets 2. Recommended Corrective actions 4. Qualified sellers list 2. Project Scope Statement 4. Status Meetings 1. Diagramming techniques 1. Risk urgency assessment 1. Organizational process asset (Update) 6. Project Scope Statement 3. Time reporting systems 5. Contract Management Plan 4. Organizational Process Assets 2. Communications management plan 2. Requested Changes 1. Approves Change Requests 3. Performance reports 2. Expert judgment 1. Contract Statement(s) of work 3. Bidder conferences 2. Issue Logs 1. WBS 5. Screening system 4. Procurement Management Plan 3. Project Management Plan (Updates) 3. or proposals (answer questions) Involves the receipt of bids or proposals and the application of evaluation criteria to select a provider 1.Documentation reviews 2. Standard forms 2. bids. Contract Documentation 2.Risk management plan 4. Risk probability & impact assessment 2. Strategies for negative risk or threats 2. Risk Register (Updates) 2. Advertising 3. Organizational Process Assets 3. Organizational Process Assets 2. Independent estimates 3. Risk reassessment 2. Procurement Management Plan 3. Seller Rating System 6. Selected Sellers 1. Risk Register (Updates) 2. Contract 3.

Procurement management Plan 2. Work Performance information 3. Inspections and audits 4. Project Management plan (updates) * Procurement Management Plan * Contract management plan 1.PMI Exam Study Notes . Procurement audits 2. Contract closure procedure Page 6 of 46 12/19/07 Last Updated . Claims administration 7. Organizational process assets (Updates) Contract Closeout Product verification and administration closeout (finish) 1. Contract documentation 4. Records Management System 4. Information technology 1.Payment system 6. Performance reporting 5. Contract management plan 3. Closed Contracts 2. Organizational Process assets (Updates) 5. Approved change requests 6. Records management system 8.Rajesh 4. Performance Reports 5.

” Standards start out as guidelines and later with widespread adaptation becomes accepted as if they were regulations. collection.various elements of the project are properly coordinated. Project – Temporary and ensure timely and appropriate generation. service or result is it creates is usually intended to be long lasting. Performed by People 2. Page 7 of 46 12/19/07 Last Updated . with which compliance is mandatory.Leadership 4.Staffing 4.project will satisfy the needs for which it was undertaken Project Human Resource Management . An organization that adopts this approach defines its activities as projects in a way that is consistent with definition of project. process or service characteristics. and techniques to project activities to meet project requirements.completed within the approved budget. developed thoroughly” Projects (Temporary & Unique) & Operations (repetitive) Common Characteristics 1.” while elaborated means “worked out with care and detail. Program – Group of related Projects managed in a coordinated way to obtain benefits and control not available from managing them individually. which lays down product. Project is temporary but the product. skills. opportunities and Market window. Project Risk Management .to make the most effective use of the people involved with the project.Physical Environment General Management Knowledge and Skills 1. 3.Executing 5.The Purpose of PMBOK Guide is to identify that subset of Project Management Body of Knowledge that is generally recognized as good practice.Planning 2.ensure timely completion of the project. Time and Scope + a “document approved by a recognized body. Risk and Customer Satisfaction Management By Projects – Management of Projects and some ongoing operations. that provides. 1. including the applicable administrative provisions. 3.PMI Exam Study Notes .Communication 2.includes all the work required. to complete the project successfully. dissemination. Constrained By limited Resources 3. which can be redefined as projects using “Project Management”. tools. Project Cost Management . Project Quality Management .is a “document. Project Time Management .International and political 3. Temporary also applies to project team. processes or services with which compliance is not mandatory. 9. for common and repeated use. Storage. Planned. Executed and Controlled Project management .Progressively means “proceeding in steps. Five PM process groups 3.Application of knowledge. 6.Organizing 3. 4. Regulation . 2. standards and regulations Understanding Project environment 1.Negotiation & Conflict resolution 6. 5. Project Communications Management . 8. Areas of Expertise 1.Rajesh PMBOK (Project Management Body of Knowledge) Chapter 1 – Introduction (Project Management Framework) PMBOK . PMI Members Adhere to – Code of Ethics PMP adhere to – Code of Professional Conduct Triple Constraint – Cost. 4. rules.Control operations Interpersonal Skills acquire goods and services from outside the performing organization. Nine Knowledge areas Application area knowledge. guidelines. continuing steadily by increments. Project Scope Management . analyzing. 5. and responding to project risk. Project Life cycle Definition 2.Problem Solving Standard . Project Procurement Management . Progressive Elaboration . 2. or characteristics for products. Project Integration Management .Influenct 3.Cultural and Social 2.identifying. and ultimate disposition of project information. PMBOK 1. 7.Motivation 5.

Page 8 of 46 12/19/07 Last Updated . program or both. OPM3 – PMI’s organizational maturity model. oversee or administer project. Programs and other work grouped together to facilitate effective management to meet strategic objectives. power and reports to higher-level manager.Rajesh Portfolio – Collection of Projects. Program Office – Centralize and Coordinate the management of project. Project office.PMI Exam Study Notes . Expeditor – Staff Assistant and Communication coordinator. PMO – Project Management Office. No Power to make decisions Coordinator – Some authority.

how they are reviewed. PMO Differences . team & sponsor (pays). Project 1. Aligning people to vision. Project Management team. Collectively. Motivating and inspiring. Organizational Structure Influence on Projects PM authority Resource Availability Project Budget PM Role Administrative Staff Functional Little or None Little or None Functional Mngr Part Time Part Time Weak Matrix Limited Limited Functional Mngr Part Time Part Time Balanced Matrix Low to Moderate Low to Moderate Mixed Full Time Part Time Strong Matrix Moderate to High Moderate to High PM Full Time Full Time Projected High to Total High to Total PM Full Time Full Time Composite Organization – A functional organization may create a special project team to handle a critical project.” Leading . 4.Rajesh Chapter 2 – Project Life Cycle and organization Project life cycle . Completion . Problems may be internal (a key employee is reassigned to another project) or external (a permit required to begin work is delayed). differences between or among stakeholders should be resolved in favor of the customer. Life Cycle Define – What technical work to do in each phase When the deliverables are to be generated. 2.PMI Exam Study Notes . to a) determine if the project should continue into its next phase and b) detect and correct errors cost effectively. Planning – Planning is the only PM Process group that has a specific order of activities Release Resources – Is the Last activity in the closing process group. Managing .Each project phase is marked by completion of one or more deliverables. Cost and staffing .Organizations performing projects will usually divide each project into several project phases to improve management control. Practice of overlapping phases is often called fast tracking . Who is involved in each phase How to control and approve each phase Project Phase . A deliverable is a tangible. stage gates. the team may have some characteristics of a project team in a projectized organization.Establishing direction vision of the future and strategies. Problems may be technical (differences of opinion about the best way to design a product). Page 9 of 46 12/19/07 Last Updated . Problem definition .levels are low at the start.requires distinguishing between causes and symptoms. Usually they are sequential. the project phases are known as the project life cycle . Iterations – Start after Risk management because only after this final cost and schedule can be determined. and may have full time admin staff from different functional departments. These phase-end reviews are often called phase exits . Stakeholder Influence – On the final characteristics of the project’s product and the final cost of the project is highest at the start and gets progressively lower as the project continues. and drop rapidly as the project draws to a conclusion. or interpersonal (personality or style clashes).is primarily concerned with “consistently producing key results expected by stakeholders. or kill points . The conclusion of a project phase is generally marked by a review of both key deliverables and project performance to date. verifiable work product. Risk – Uncertainty and hence risk of failing is high at the beginning and get progressively lesser/better as project continues Key stakeholders – pm. verified & validated. managerial (a functional group is not producing according to plan).The probability of successful completion generally gets progressively higher as the project continues. 3. org. PMO – Can exist in any kind of organization including the functional organization.In general. may develop its own set of operating procedures and may operate outside the standard formalized reporting structure. higher towards end. customer (buy/use).

from project initiation thru Project “a series of actions bringing about a result” Process Group – Are not project phases. Process . Application of Processes – to the project is iterative. Executing Process Group – Majority of the project budget will be spent in performing Executing process group. Page 10 of 46 12/19/07 Last Updated . Initiating Process – Are often done external to the project’s scope of control.PMI Exam Study Notes .Performed intermittently and as needed during project planning.Rajesh Chapter 3 – Project Management Processes for a project Pick Process – Project Manager along with team is responsible for picking what processes are appropriate.(By Shewhart & Deming) – PLAN – DO – CHECK – ACT Monitoring & Control – Group not only monitors and controls the work being done within a process group but also monitors and controls the entire project effort. It links project to the ongoing work of the organization. Concept of interaction among PM processes . Integrated Change Control – Is performed throughout the project. they are not Optional. indicating plan is an interactive and ongoing process. Core processes – Are Performed in same order & may be iterated several times during any one phase Facilitating processes. Project Charter – Approval and funding are handled external to the project boundaries. Charter is primarily concerned with authorizing the project /phase. Rolling Wave Planning – Progressive detailing of the project management plan is called rolling wave planning. Process groups are usually repeated for each phase/sub project.

infrastructure. Multiple Objective Programming 2. Change Control Procedure.Quality Baseline 15.Risk 6. Discounted Cash Flow 7. personal administration (Hire. Commercial database.Business case and return on investment 9.Requirements & Characteristics 3. Gives Project Manager Authority 3. Economic Models 1.Cost 4. PM and team must address every process and level of implementation for process Project Deliverables – Need to be integrated with ongoing operations.Constaints 7. Dynamic 4. Return On Investment Constrained Optimization Methods (Mathematical Models) 1.1. It also involves making tradeoffs among competing objectives and alternatives. Resource Calendar 13. Procedure for Approving & issuing work authorization. Templates. about where to concentrate resources and effort.Project purpose or justification 4. Murder board – Panel of people who try to shoot down a new project idea.Business Requirements Project Charter . PMIS Organizational Process Assets – Standards. Risk Control procedure. Problems 2.Quality 5.Schedule Milestone 11. 4. articulation and interactive actions that are crucial to project completion.Opportunity Cost 6.Functional organization participation 7.Mile Stone list 12. Integration is about making choices.Risk Register Page 11 of 46 12/19/07 Last Updated . Consolidation. It also include Process Measurement database.Initial Defined Risks 10. Scoring Models 2.Company Culture & Structure.Business Needs 3.Staff 11.Boundaries 5. Government or industry standards. Peer Review 5.Initial WBS 12. performance). Benefit Cost Ratio 2. Policies. Preliminary Project Scope Statement Contain 1.PMI Exam Study Notes .Procurement 8. Communication requirements. Stake holder risk tolerance. Project Charter Contain 1. It is broad enough that it does not have to change as the project changes. wants and expectations 2. Nonlinear 3.Project Organization 9.Assumptions 8. Historical information & Lessons learned. Market place condition. Authorize project 2. Configuration Management Requirements Project Management Plan – It defines how project is executed.Order of Magnitude Cost Estimate 13. PMP can be either summary level or detailed and can be composed of one or more subsidiary plans and other components.Stakeholder influence 6. Quality policies & procedure. Benefit Contributions 3.Process improvement Plan 10. Assigned PM authority 5. Project Closure Guidelines. financial database containing labor hours. performance measurement criteria.Schedule 3. Issue and Defect Management Procedure.Rajesh Chapter 4 – INTEGRATION Management Integration Management – Unification. Cash Flow 3. Linear 2. 4. Standard Product and Project Life Cycles.Cost Baseline 14.Project & Product Objectives 2. Scope 2. Preset Value (PV) and net present value (NPV) 5. Configuration management database.Requirements and Deliverables 6. Fire.Acceptance Criteria 4.Schedule Baseline 9. Market Opportunity 3. work authorization. monitored and controlled and Closed. Benefit Measurement Methods (Comparative Approach) 1. project files.Communication 7.Issued by initiator or sponsor external to project organization who has the authority to fund. existing human resources.Internal Return Rate 4. Reasons to start projects – 1. Integer 5. It contains following management plans 1. Project Selection Methods 1.Assumptions & Constraints 8. Requirements that specify Customer/Sponsor Needs. costs & budgets.Summary Budget Environmental Process Assets .

intangible deliverables such as training is also provided. Documenting impact of requested changes 9. and not all the changes approved Organization Process Assets – Includes an index & location of project documentation • Formal Acceptance Documentation • Project Files • Closure Documents • Historical information Page 12 of 46 12/19/07 Last Updated . Maintain integrity of baseline 6.Rajesh Configuration Management – It is a sub system of overall project management information system. road or software. It documents the physical characteristics of formal project documents and steps required to control changes to them (e. you have to be concerned with competing needs and requirements impacting your efforts on configuration management Configuration Management Activities – 1. It is a means of monitoring and controlling emerging project scope against the scope baseline.g. Managing approved changes as and when they occur and regulating them 5. Validating defect repair Changes .PMI Exam Study Notes . schedule and quality 8. The best method to deal with changes is to direct the changes to the Change Control Board . The best method to control changes on the project is to look for sources of change.Configuration Status Accounting 3. senior management (not the Project Manager) should authorize the change. Reviewing and approving requested changes 4.if the functional manager wants to make a change to time associated to a task (change in goals and objectives of the Charter) and there is not enough reserve.Configuration Verification and auditing Change Control System – It is a collection of formal documented procedures that define how project deliverables and documentation are controlled. Controlling and updating scope. Project Manager has authority to approve some change requests. Make sure only approved changes are implemented 3. result of an emergency) Integrated Change Control – It is performed from project inception thru completion. its purpose is to control change throughout the project. It is any documented procedures used to apply technical and administrative direction and surveillance to audit the items and system to verify conformance requirements. budget.g. Project Execution – Although the products. The project manager is normally not the approval authority. Review and approve all recommended corrective and preventive actions 7. Sometimes. Schedule Change Control System – can include the paper. cost.Configuration Identification 2. When more than one individual has sign a Charter . Identifying that a change needs to occur or has occurred 2. He is given authority to approve Changes in Emergency Situations. It must also include procedures to handle changes that may be approved without prior review (e. services or results of the project are frequently in the form of tangible deliverables such as building. systems and approvals for authorizing changes. certain classification of changes gets automatic approval on a project and do not need Change Control Board approval. Integrated change Control – Occurs during all the project management processes. Project Plan – as an input to team development. . changed and approved. the project plan describes the technical context within which the team operates. Project Baseline – should be changed for all implemented changes. It is a subsystem of configuration management. it includes 1. would be used by a customer who wishes to expand the project scope after the performance measurement baseline has been established).

real. Management by Objective (MBO) – determining company’s objective and how the project fits into them. documented. A process that enables creation of WBS also establishes how WBS will be maintained and approved 3. For example. responsible organization. not change to project scope.Specifications 16. a statement of work.Project Organization 10. verified. Resource Breakdown Structure (RBS) 4. where as work to be performed far into the future can be planned at the relatively high level of the WBS. The review at the end of the project phase is called phase exit. Bill of Materials (BOM) – Hierarchical tabulation of physical assemblies. Work Break Down Structure (WBS) 2. Scope Verification – to verify that the work done satisfies the scope of the project.Product Acceptance Criteria 7. are considered to be true. Risk Breakdown Structure (RBS) 5. A similar activity during closure is Product Verification. Audits and Walkthroughs. Occur during the control phase of the project. it is directly linked to integrated change control Scope Statement Contain – 1. Constraints . Scope Verification is normally done after quality control (which checks for product correctness) but these two processes can be performed in parallel. WBS Dictionary – For each WBS Component. 2nd level – Deliverables (Break down till cost estimates can be done. Assumptions 9. not at the end.Fund Limitation 13. Product Reviews. Decomposition . for planning purposes. So Work to be performed in the near future is planned to the low level of the WBS. Break Down Structures 1. Scope Creep – Uncontrolled changes are often referred as project scope creep. WBS and WBS dictionary are the scope baseline. Project Scope Management Plan .Provides guidance on how project scope will be defined.Product Scope Description 3.(1st level – Project phases. It must be done at the end of each phase. or certain. Organizational Breakdown Structure (OBS) 3. MBO focuses on the goals of an activity rather than the activity itself (manager is responsible for results rather than performing certain activities) Page 13 of 46 12/19/07 Last Updated . This is referred as rolling wave planning. subassemblies & components needed to fabricate a manufactured product.Approval Requirements Rolling Wave Planning – The Project Management team usually waits until the deliverable or subproject is clarified so the details of the WBS can be developed.Schedule Milestones 12. How formal verification and acceptance of the completed project deliverables will be obtained 4.Project Configuration Management Requirements 15. Work not in the WBS is outside the scope of the project. It includes finding the cause of variation relative to the scope baseline. Variance Analysis – Project performance is measurements are used to assess the magnitude of variation. Other information can be Contract information. managed and controlled by project management team. Scope Baseline – Approved detailed project Scope statement. or kill point.Rajesh Chapter 5 – SCOPE Management Project Scope Management .Project Deliverables 6.PMI Exam Study Notes .Project Boundaries 5.Initial identified risks 11. a predefined budget is a constraint Assumptions . Inspection – Are called Reviews. Constraints 8.processes required to ensure that the project includes only the work required to complete the project successfully.Cost Estimate 14.Assumptions are factors that. Focuses on customer acceptance/performance measurement. verify decomposition correctness) ) lowest level of the WBS may be referred to as work packages.Project Requirement 4.Project Objectives 2. It includes 1. stage gate. WBS dictionary includes a “Code of Account Identifier”.A constraint is an applicable restriction that will affect the performance of the project. A process to control changes to project scope. and a list of schedule milestones. Quality requirements and technical reference. A process to prepare detailed project scope statement based on preliminary project scope statement 2.

PMI Exam Study Notes . project manager would refer to the Scope Management Plan to make a change) Stakeholder Management – the project manager must identify the stakeholders. The WBS is created by the team (helps to get buy-in) and it is used to make certain that all the work is covered. Scope Management Plan .deliverable at the lowest level of WBS. more manageable components (activities/action steps).subdividing project deliverables into smaller. poorly identified customer needs. The heuristic (rule of thumb) used in project decomposition is 80 hours. Assumptions – factors that. completion is measured against the Product requirements. Anything missing in the WBS should be added. WBS Dictionary – Defines each item in the WBS. (e.g. Deliverable oriented. Its purpose is to include the total project scope of all the work that must be done to complete the project. It is a deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. Design Scope – contain the detailed project requirements (used for FP contract) Scope Definition – subdividing major project deliverables. work content. WBS dictionary can be used as a part of Work Authorization system to inform team members of when their work package is going to start. and end product. Defines the project’s scope baseline. Resources cannot be committed without the Charter. It is a communication tool and it describes what needs to be done and what skills are required. Work Package . completion is measured against the project plan. inadequate specified project requirements. determine their needs and expectations. A documented description of the objectives. for planning purposes. Statement of Work . Scope Statement – Define and record Requirements . Top down effort to decompose work into small pieces.the work that must be done in order to deliver a product. The 1st level should be the project lifecycle (not product ). They are used to pass a group of work for further breakdown in the executive organization. It can be supplied as a result of a previous project to determine the requirements. It includes meetings.formal document used and approved by senior management that explains purpose of the project including business needs addressed and the resulting product (deliverables and objectives).describes how scope will be managed and how changes will be integrated into project. It helps reduce Scope Creep and increases understanding. cost budgets and staff assignments. and poor planning and control. it includes a description of project assumptions and constraints. Product Scope .a narrative description of products or services to be supplied under contract. are considered to be true. more manageable components. Decomposing – subdividing project work packages into smaller. schedule milestones and other info. Project success depends primarily on customer satisfaction. They are control points in the WBS and are used for assignments to work centers. elements will slip thru cracks 2. It provides a basis for estimating the project and helps to organize the work. life-cycle phasing and organizational. It describes responsibilities and authority of the project manager to apply organizational resources to project activities. Project Charter . reports.features and functions that are to be included in a product. WBS . Clarification to the Project Charter must be addressed to the sponsor(s) who approved the charter. then manage and influence expectations to ensure project success. Cost Account – one level above the Work Package. analysis and all the other parts of PM. Project will take longer. deliverables. The 3 most common types of WBS are system/sub systems. Provides stakeholders with a common understanding of the scope of the project and is a source of reference for making future project decisions.Rajesh Project Scope . Page 14 of 46 12/19/07 Last Updated . Without WBS 1. including description of the work packages and other planning info such as schedule dates. not only customer deliverables but all deliverables 3. real or certain The principal sources of project failure are organizational factors. also includes assessment of expected stability of project scope. The Charter is an input to ALL the project management processes.

He should ask for a change order and look for impacts to the triple constraint. Scope Changes on project can be minimized by spending more time developing the scope baseline. Most Change Requests are the result of: An external event An error or omission in defining the scope of the product An error or omission in defining the scope of the project A value-adding change A Change Request is the most effective way of handling the disconnect between what users actually want and what management thinks they want. logical framework analysis and multi-objective programming.PMI Exam Study Notes . the Project Manager can approve the change (we are paid to manage the scope completion within our budget and reserves) Page 15 of 46 12/19/07 Last Updated . The project manager’s role related to project change is to influence the factors that affect change. If there is enough reserve to accommodate a change.Rajesh Constrained optimization – includes analytic hierarchy process.

Parametric Estimation – Quantity of Work * Productivity Rate . Three Point Estimates – Most Likely. constraints and assumptions. Fragment Network – Portions of project schedule network diagram are often referred to as a Sub network or Fragment Network. resource requirements. Sub Network templates are useful when project has several identical or nearly identical deliverables. Performed by team members responsible for the work package. imposed dates. given to PM from Management or Sponsor. RBS (Resource Break Down Structure) – Output of Activity Resource Estimation process. Pessimistic. Activity Resource Estimation – Identifies type and quantities of resources required for a schedule activity. Activity Attributes – Contain Activity identifier. Milestone – Can be mandatory or optional. Activity Duration Estimate – Some indication of range of possible values (2Weeks + or – 2 days) TT for Activity Duration Estimation 1. Planning Component (TT used in Activity Definition) Control Account – From management Perspective a control line is drawn in the WBS Hierarchy levels. Resource Estimation. Lead and Lag – Lead allows acceleration of the successor activity.1.Rajesh Chapter 6 – TIME Management Project Time Management . activity Code. Activity Definition output is schedule activities not Deliverables (Create WBS output is Deliverables) Activity list. Duration Estimation and Schedule development are so tightly linked that they are viewed as single process.PMI Exam Study Notes . Bottom Up Estimation (TT of Resource Estimation) – Estimation is done for lower level items and then aggregated. 3. Decomposition (TT used in Activity Definition) Involves sub dividing the Work Packages into smaller components called activities.Learning Curve. Activity List Does not include any schedule activity that is not required as part of the project scope It includes a activity identifier and scope of work description for each schedule activity in sufficient detail. WBS and WBS dictionary can be developed either sequentially or concurrently.Regression Analysis (Scatter Diagram) 2. It is used in schedule model and is part of PMP(Project Management Plan) Discrete components of Project Schedule but are not components of the WBS.processes required to ensure timely completion of the project Activity Definition – defines activities that must take place to produce project deliverables Activity – consumes time (eg testing) Events – specified accomplishment / does not consume time (eg tested ) Time Management – In small projects Activity Definition. Results of Parametric Estimation can become heuristics. Schedule Management Plan – Development of Schedule Management Plan is part of Develop Project Management Plan Process. Page 16 of 46 12/19/07 Last Updated . it is a form of Expert Judgment. Successor activities. All the Planning components above this line belong to what is called the Control Account. Optimistic. included in SS and WBSD and used in schedule model. It is project level. SMP is a subsidiary plan of PMP and may formal or informal. Predecessor Activities. it is a hierarchical structure of resources by category & type. Sequencing. it a component of PMP. 2. leads and lags. A lag direct a delay in Successor activity. highly detailed or broadly framed depending on the project. These are aggregated to determine the estimated resources for each work package. Analogous Estimation – Using actual duration of previous similar schedule activity. logical relationships. Activity Description. All efforts performed within a control account are documented in a control account plan. PM can impose additional milestones. Planning Package – It is a WBS Component below the control account but above the work package.

to determine which activities have the least scheduling flexibility. and optimistic The probability of completing a project at or later than its expected time is 50% Event oriented. Critical path length and Float. project schedule is preliminary till resource allocations are done. Finish to Finish] Work is done during activity. Project network diagrams . Coding structure .g. Schedule Network Analysis (TT for Schedule Development) 1.Rajesh 4. Project network diagrams are schematic displays of the project’s activities and the logical relationships (dependencies) among them. Probability of Completion in amount of Cost 3. The easiest example is when you have an activity to design a component and then test it. Time Estimate – Non-Calendar Schedule – Calendar Based Hammock Activity – O/p of Schedule Development -> Bar Charts -> For Control and management communication. It is a method of sequencing (e. geographic area . the broader more comprehensive summary activity called Hammock Activity is used between milestones or across multiple interdependent work packages. Reserve Analysis Expert Judgment Imposed Dates – Imposed dates in Scope Statement (I/P to Schedule Development Process) restrict the start or finish date. Resource Leveling – Applied after Critical Path Method. Adds duration buffers that are non work schedule activities. What if Scenario – Monte Carlo Analysis 4. Project Time Management Arrow Diagramming Method (ADM): PERT PERT and CPM focuses on float duration. – Activities must have different attributes (as responsibility. Risk Project Schedule – Should at least include planned start date and finish date for each schedule activity. Activity on Arrow. activity on arrow (AOA) Finish-to-Start logical relationship Time estimates appear on arrow Emphasis on controlling cost and leaving the schedule flexible One time estimate per activity Activity oriented. Only Show finish-to-start relationship Program Evaluation and Review Technique Emphasis on meeting schedules with flexibility on cost Three time estimates per activity: pessimistic. Critical path can have 0 or negative total float. It is a form of ADM (A Network Drawing Method) that allows loops between activities. a project requires redesign after completion of testing) Often involve physical or technological limitations (based on the nature of work being done) Page 17 of 46 12/19/07 Last Updated Critical Path Method (CPM) Precedence Diagram Method (PDM) GERT Dependencies Mandatory or Hard . 5. Arrow indicates dependancy Activity on node. Monte Carlo Analysis – 1. 2.Probability of activity in critical path 4. Start to Finish. uses dummy. activity on arrow Time estimates appear on arrow Represents improvement to PERT and CPM by adding lag relationships to activities [Start to Start.Used for sorting) Critical Path Method (CPM) (ML) —calculates start and finish date for each activity & float Graphical Evaluation and Review Technique (GERT)— allows for probabilistic treatment of both network logic and activity duration estimates. uses dummy. Project schedule is when presented in summary form is called as master schedule or milestone schedule. Critical Chain Method – Uses Pessimistic resource availability. most likely. Schedule Compression – Crashing (Additional Resources) and Fast Tracking (Parallel) 3. Finish to Start. Keep resource usage at constant level 5. Start-to-finish relationships are rarely used A network diagram drawing method that allows loops between tasks. Probability of Completion 2. Critical Path Method – Calculate Project Duration.PMI Exam Study Notes . which usually happens before completion of PMP. Program Evaluation and Review Technique (PERT ) (O+4ML+P/6)—uses a weighted average duration estimate to calculate activity durations.… . no dummy finish-to-start is the most commonly used type of logical relationship.

Scheduling and allocating resources to multiple projects may affect schedule slippage and in-process inventory. Include crashing. tracking systems. The project performance measurement baselines should generally change only in response to a scope or deliverable change. result represented in S curve.Rajesh Discretionary may also be called preferred logic . Project Float. approved project schedule.PMI Exam Study Notes . or as close as possible. Free Float – Amount of time a task can be delayed without delaying the early start of its successor Total Float – amount of time that an activity may be delayed from early start without delaying the project finish date Lag – waiting time between two tasks (negative lead) Schedule Baseline . fast track . Is anything done to bring expected future schedule performance in line with the project plan. Should be created at the beginning of the project and used during the project to gauge (measure) overall project performance. preferential logic . PERT Weighted Average = (O + 4M + P)/6 standard deviation = (P . Float variance is an essential planning component for evaluating project time performance. or soft logic . A negative slack on the critical path means that the project is behind schedule. Monte Carlo Analysis .O)/6 variance = standard deviation2 (To add standard deviations: convert to variance then add. Resource Planning Tools Responsibility Matrix Resource Spreadsheet Identify who does what at what time/phase of the project Quantifies how much work is needed from each resource during each time period Page 18 of 46 Last Updated 12/19/07 . Revisions are changes to the scheduled start and finish dates in the approved project schedule. Difference between the required end date and the expected project completion date. not just schedule. may be formal or informal.rules of thumb Critical Path – longest path (almost always have no float) Near Critical Path – Path is close in duration to critical path. Should fast track tasks on the critical path (float = 0) in order to save time. Root Cause Analysis – used to identify the cause of the variation Variance analysis – key element to time control. the close it is the more RISK project has. Duration Compression Methods – occurs after activity duration estimating and before finalizing the schedule. The most important element necessary for project control is clear requirements. So 1. Provides the ability to compute the probability of completing a project on a specific day.Free 2. Fast Track – resources in parallel. Resource Leveling – often results in a project duration that is longer than the preliminary schedule. Time an activity may be delayed from its early start without delaying the project finish date. Cost increase Finish to Finish .the original. and approval levels required for authorizing schedule changes. Results is the 50% point (mean). take the square root of the sum). Variance . Revision – category of schedule update that result in change to the project’s scheduled start or finish dates.activities must finish on a specific sequence “Start no earlier than” & “Finish no later than” – Respectively #1 and #2 most popular date constraint in project management software. Soft: desirable and customary (based on experience) Preferential: preferred or mandated by a customer (also. to the originally intended overall duration. involve increase simulation of project outcomes using PERT estimates. New target schedule should be the usual mode of schedule project time management primarily concerns expediting to ensure that activities remain on schedule. Resource reallocation from non-critical to critical path activities is a common way to bring the schedule back. Schedule Can Slip 2. Total 3. should never be changed without proper review and approval. not so much about costs.Plan minus Actual Float / Slack – 1. Schedule Change Control System – defines procedures for changing the project schedule and includes the documentation. Corrective action . Crashing – when you are worried about time. Can also be used to assess feasibility of schedule under adverse conditions (eg when a schedule constraint is identified) Heuristics . Best method when you have no historical data for a similar task. Any approved change should be documented in writing. generally revised only in response to scope changes. Rebaselining may be needed to provide realistic data to measure performance. The project Performance Measurement Baseline should generally change only in response to a scope or deliverable change. need of the project sponsor) Defined by PM Team Input needed from another project or source External Critical chain is a technique that modifies the project schedule to account for limited resources. Schedule Management Plan – defines how schedule changes will be managed.

Weak Planning Tools 2. 0/100 – An Activity is considered X percent complete when it begins and gets credit of the last 100-X percent only when it is completed.PMI Exam Study Notes .g. CPM. Page 19 of 46 12/19/07 Last Updated . no logical relationships shown between activities Significant events. Good reporting tools 3. calendar date) when a particular resource is working on a particular task Vertical bar chart showing the total number of resources needed during each time period Interdependencies. PDM) Barchart (Gantt) Milestone Chart Identify the periods of time (e. good for communicating status (used to track success) Bar Chart (Grant Chart) – 1. how related Effective progress reporting tool.Rajesh Resource Gantt Chart Resource Histogram (Resource Loading Chart) Scheduling Tools Networks (PERT. 20/80. No Dependency Shown 4. No Resources shown Progress Report – 50/50.

per square foot of living space Parametric Estimation – It uses statistical relationship between historical data and other variables to calculate cost estimate. It can produce higher levels of accuracy depending on sophistication.Management (Unknown Unknowns) – Part of Cost Budget Chart of Accounts .Rajesh Chapter 7 – COST Management Cost Estimating . Process descriptions (Each of the three cost management Processes) ROM – Accuracy of project estimate will increase as it progresses. The Page 20 of 46 12/19/07 Last Updated . Cost Budgeting . equipment.Computation Formula 2. Resource Planning—determining what resources (people. It can establish 1. When current variances are seen as typical of future variances. Cost baseline .Developing an approximation (estimate) of the costs of the resources needed to complete project activities.Earned Value Credit Criteria 3. Funding Limit Reconciliation – Customer will set limits on disbursement of funds for the project.WBS Level) 6.Earned Value Technique Performance Measurement Analysis (TT of Cost Control)– PV. SV. which includes cost of resources needed to complete schedule activities along with effect of decisions on cost of using. Formula: EAC = AC + ETC. CPI. AC. Bottom-up estimating . materials) and what quantities of each should be used to perform project activities. It is accomplished by placing imposed date constraints for some work packages. Organizational Procedure Links (Control Account. maintaining & supporting the product. Cost Management Plan . or that they are no longer relevant to a change in conditions. code or account number directly linked accounting system) 4. CV. service or result of the project.The cost baseline is a time-phased budget that will be used to measure and monitor cost performance on the project.Allocating the overall cost estimate to individual work activities. Current variances are seen as atypical and the project management team expectations are that similar variances will not occur in the future. $1000 etc) 2. Formula: EAC = AC + ((BAC – EV)/CPI) Project Cost Management Benefit Cost Ratio Processes required to ensure that the project is completed within the approved budget.PMI Exam Study Notes . Cost Control .It is created as part of the Develop Project Management Plan process. Formula: EAC = AC + BAC – EV. similar project Parametric modeling . Project Performance Reviews (TT of Cost Control) – 1. not just profits. Earned Value rules (1.the cost of individual activities or work packages rolled up to get the estimate for whole component.A chart of accounts describes the coding structure used by the performing organization to report financial information in its general ledger. ETC. Analogous estimating . Life Cycle Costing – Broader view of Project Cost Management.mathematical model to predict project costs . Expected Revenues / Expected Costs. EV.Trend Analysis 3. Funding Limit Reconciliation (TT of Cost Budgeting) will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures. resource quantity and cost data.Variance Analysis 2. Units of Measure (Staff hours/days/lump sum etc) 3.Controlling changes to the project budget. project at initial stages can have rough order of magnitude (ROM) in the range of –50 to +100% later it will narrow to a range of –10 to +15%. Reporting Formats 7. SPI EAC -Original estimating assumptions were fundamentally flawed.Project (known Unknowns) – Part of Cost Baseline 2. means using the actual cost of a previous. It is shown as an S curve. Control thresholds (Agreed amount of variation allowed) 5. Contingency Reserve 1. Precision Level ($100. Measure benefits (payback) to costs.also called top-down estimating.

Types 1. Involves using project characteristics (parameters) in a mathematical model to predict project costs. Part of Cost Control Tool for analyzing a design. Weakness in this approach is the lack of emphasis on the magnitude of the profitability. Straight Line 2. Double Declining Balance 2. measured in $/unit (scalable.g. Usually computed as a percentage of the direct costs. Using a mathematical model to predict the duration of a task (e. operations and maintenance). the benefits are greater than the costs) Interest Rate which makes the PV of costs equal to PV of benefits Number of time periods up to the point where cumulative revenues exceeds cumulative costs. Designed to cover specific risk events previously identified and measured in the Risk Management Process. Does not account for time value of money nor consider value benefits after payback. (part of cost budgeting and cost estimating). Cost of choosing one alternative and therefore giving up the potential benefits of another alternative: it is the value of the project not selected (lost opportunity). Provide a picture of the total cost for the product (project.g. taking the average duration of all past tasks) Statistical technique graphically represented on scatter diagram Mathematically models the intuitive notion that the more times we do something. (output to cost control) Process and procedures developed for the closing or canceling of projects Regression Analysis Learning Curve Variable Costs Fixed Costs Direct Costs Indirect Costs Cost accounts Cost Change Control Systems Budget updates Operating profit Discounted cash-flow approach Parametric modeling Life-Cycle Cost Project Closeout Page 21 of 46 12/19/07 Last Updated . non-recurring (e. project setup costs) Incurred directly by a specific project. Same amount each time period (e. Charge remaining at completion. Expended costs which should be ignored when making decisions about whether to continue investing in a project The point beyond which the marginal addition of resources does not provide a proportional amount of utility. Finding the least expensive way to do the scope of work. and approval levels needed to authorize a change.g. quantifiable). determining its function. tracking systems. Separate quantity of time/money for unknown unknowns Current Assets . Sum of Years Digits) Separate quantity of time/money for known unknowns. Relies on knowledge of mathematical relationships. charge 50% of its BCWS to the account. 10 – 10 – 10).Rajesh Internal Rate of Return Payback Period Opportunity Cost Sunk Cost Law of Diminishing Returns Straight Line Depreciation Contingency Reserve Management Reserve Working Capital Value Analysis Value Estimating Value Engineering Tool 50-50 Rule Analogous Estimating Bottom-up Estimating Parametric Estimating higher the better (if rating over 1. Part of the overall organization's cost of doing business and are shared by all projects. Amount of money earned: Revenue – (direct + indirect costs) Present value method determines the net present value of all cash flow by discounting it by the required rate of return. Would provide best overall quality of the estimate. Represent the basic level at which project performance is measured and reported.PMI Exam Study Notes . Represents a form of expert judgment. and assessing how to provide those functions cost effectively. It does not make use of team estimate. The PMI want the team to participate in the cost estimates to get their buy-in. Accelerated (1. At beginning. Top down. The purpose of cost accounts is to monitor and report on project performance. Gives project team an understanding of management’s expectations (part of cost budgeting and cost estimating) Detailed cost estimates of work packages are aggregated. Should be the next steps after an approved cost baseline has changed because of a major change on a project. the faster we will be able to perform Costs rise directly with the size and scope of the project Costs do not change.Current Liabilities Cost reduction tool that considers whether function is really necessary and whether it can be provided at a lower cost without degrading performance or quality. based on similar projects. Includes the documentation.

EV) / CPI BAC – EAC AC/BAC CV/EV SV/PV (BAC-EV)/(BAC – AC) How much should be done? This is the performance measurement baseline .normal cost) / (crash time . EV equals PV when the project is completed.Costs are more practical to calculate at one level higher (Control Account) than work package level Page 22 of 46 12/19/07 Last Updated .Rajesh Formulas Expected Value Present Value Cost Variance CV Schedule Variance SV Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate at Completion (EAC) Estimate to Completion (ETC) Variance at Completion (VAR) % Spent Cost Variance in % Schedule Variance in % To Complete Performance Index (TCPI) BCWS (PV) BCWP (EV) ACWP (AC) BAC EAC ETC CPI EV=PV [BCWP=BCWS] AD Slope Probability * Impact FV / (1 + r)t EV = BAC * (work completed/total work required) EV – AC [BCWP – ACWP] Variance = planned – actual PV = BAC *(Total time passed /total schedule time) EV – PV [BCWP – BCWS] (if <0. if <0. <1 bad) EV/PV [BCWP / BCWS] I am progressing at ____% of the rate originally planned BAC / CPI AC+ETC (when original estimates are considered flawed) AC+BAC-EV (when everything is OK and variance will not occur in the future) AC+((BAC-EV)/CPI) (when everything is OK and variance will occur in the future) EAC .PMI Exam Study Notes . as the time required for a project/task decrease. How much work is done? (Progress) Budgeted cost of work performed.AC or (BAC . Cost Calculations .normal time) . The CPI provides a quick statistical forecast of final project costs. Based on project performance and risk quantification Estimate to Completion Cumulative CPI does not change by more than 10% once a project is approximately 20% complete. (>1 good. Value of the work completed in terms of what you budgeted (your baseline) How much did the “is done” work cost? Budget at Completion – How much is budgeted for the total job? BAC would change every time there is a funded scope change approved for activity to be performed in the future. the cost increase Documentation Cost Management Plan – (from Cost Estimating) The action taken by the project manager for all variances are described in the Cost Management Plan. work completed is less than what was planned) EV/AC [BCWP / ACWP] I am getting ____ out of each dollar. Work Quantity(scope of the activity) / Production rate (crash cost .

Check and Act Philip Crosby – Quality – Conformance to requirements. Accurate – It correctness of measured value. but it should not be adjusted when it is in control.Process configuration 3.PMI Exam Study Notes .Control Charts 3. Quality . Tolerances . audits .All work to ensure conformance to requirements + nonconformance to requirements. Seven Basic Tools of Quality – 1.Is planned.are variously called reviews .Process matrix 4. Control chart – UL.Rajesh Chapter 8 – QUALITY Management Low grade (a limited number of features) . Quality Management –Complements Project Management. designed and built in.Run Chart 7. prevention over inspections. it is not recommended. Process boundaries 2. Quality Management Plan – Provides input to the overall project management plan and must address Quality Control. it includes 1. Gold Plating – Giving Customers extras. it includes root cause analysis. it follows steps outlined in Process improvement plan. accurate measurements may not be precise. ordered freq of occurrence.Histogram 5. Quality Control Measurements – Results of QC activities that are fed back to QA to reevaluate and analyze the quality standards and processes for performing organization.LL Pareto Diagram – Histogram.Pareto Chart 6. Do. and walkthroughs . Page 23 of 46 12/19/07 Last Updated .low quality (many bugs) Precision – Consistency that the value of repeated measurements have little scatter. Both recognize the importance of Customer satisfaction.Statistical sampling involves choosing part of a population of interest for inspection Trend analysis involves using mathematical techniques to forecast future outcomes based on historical results. it details the steps for analyzing processes that will facilitate the identification of waste and non value added activity. Advocated Prevention over inspection and “Zero Effects”. The process may be changed to provide improvements. Process Analysis – TT of QA.Scatter Diagram Design of experiments . not inspected in. Marginal Analysis – Optimal Quality is reached at the point where the increased revenue from improvement equal incremental cost to secure it. Management Responsibility and Continuous improvement. Quality Matrix – Defines what something is and how to measure it.Flowcharting 4. Cost of quality . take corrective action & 80 prob/20 causes Statistical sampling .Targets for improved performance. Process improvement Plan – Subsidiary of PMP. product reviews . Project Quality Management – processes required to ensure that the project will satisfy the needs for which it was undertaken. Inspections .Fitness of Use Edward Deming – Quality Improvement – Plan. Joseph Juran – Quality .(the result is acceptable if it falls within the range specified by the tolerance) and control limits (the process is in control if the result falls within the control limits). Quality Assurance and continues process improvement for the project. Precise measurements may not be a statistical method that helps identify which factors might influence specific variables Operational definitions are also called metrics Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer).Cause and Effect Diagram 2. Peer review may not include individuals that worked on the material being reviewed.

you can produce products that are more forgiving and tolerant. ensure cross functional teamwork.g. Quality Variable Quality Attribute Benchmarking Statistical Analysis Trend Analysis Quality Audit Inspection Design of Experiments Flow chart Attribute Sampling Variable Sampling Assignable Causes Specification Limit Control Chart Statistical Control Chart “Out of Control” Upper and Lower Control Limit on a Control Chart Specification Limit Pareto Diagram Ishikawa Taguchi Method A quality characteristic that is measurable A quality characteristic that is classified as either conforming or nonconforming Comparing practices of other projects. generates discussion Page 24 of 46 Last Updated ISO 9000 Checklists “Statistically Independent” Mutually Exclusive Special Cause Random Cause Cause and Effect Diagram 12/19/07 . Provide management confidence that the project will satisfy relevant quality standards.] Fixed by the customer Used to show how results were generated. Provides a standard to measure performance (time consuming). The result is rated on a continuous scale that measures the degree of conformity.PMI Exam Study Notes . and link the main phases of product development. Help people understand and control their process work. analyze the color/size combination that will contribute most to the functionality of the new product). Rework – action taken to bring a non-conforming item into compliance. Used to verify that a set of required steps has been performed in quality control process Determine if problems are related before planning what to do about them If two events cannot both occur in a single trial (?) Unusual event Normal process variation (1) Creative way to look at actual causes and potential causes of a problem (2) Process of constructing helps stimulate thinking about an issue.g. Its main feature are to capture the customer’s requirements. investigating quality standards that other companies are using) Involves determining the probability of an occurrence Uses mathematical techniques to forecast future outcomes based on historical results.Rajesh Quality is the conformance to requirements/specifications and to fitness of use. An attribute is what you are measuring. Provides a basic set of requirements for a quality system. Help analyze how problems occurs Measures whether or not the results conforms to specifications Are characteristic you want to measure (size. Can be done throughout product development. Rework is a frequent cause of project overruns. Quality function deployment – provide better product definition and product development. The tool helps determine the value or break-even point of improving a process to reduce variability. [These limits are set based on the company’s quality standards. (e. Can be used to monitor project management processes such as coscard. If you select good design parameters. The control limits are determined from data obtained from the process itself. schedule variance. shape. volume and frequency of scope changes. Prevent errors from reaching the customer before delivery to the customer. and schedule performance Structured review of other quality management activities performed to identify lessons learned (used for process improvement) Part of Quality Assurance. Can be applied to cost and schedule tradeoffs. cost. and errors in project documents. etc…). used to measure technical. Data point on a control chart that requires investigation Shows customer’s expectations for quality (on a control chart) …Help newly assigned project manager determine whether the project is out of control (in order to verify quality level). without specifying the particulars for implementation. weight. Cause-and-Effect Diagram and Control Chart Is used to estimate the loss associated with controlling or failing to control process variability. Are used to monitor process variations overtime. A technique to identify which variables have the most influence on overall outcomes (part of Quality Planning) (e. by type or category of identified cause Made popular Pareto Chart. Non-random points that are still within the upper and lower control limit Acceptable range of variation of a process. helps to organize thoughts.

Quality control measurement are records of quality control testing and measurement in a format for comparison and analysis (input to quality assurance). Refers to specific performance of a task (measuring quality and comparing results to the quality plan) Refers to overall quality requirements (standards) (e. To effectively use statistical quality control .20% of sales. responsibilities. Although it usually occur during planning phase. Cost of non-quality is estimated to be 12 . The team member is ultimately responsible for quality management. evaluating overall project performance regularly) Cost of Quality Conformance Planning Training Process Control Design and process validation Test and evaluation Quality audits Maintenance and calibration Inspection Field testing Impact of Poor Quality Increased cost Decreased productivity Increased risk and uncertainty Increased costs in monitoring Non-Conformance (most accurate) Scrap Rework and repair Additional Material Repairs and service Complaints Liability Product recalls Field service Expediting Goal of the cost of quality program should be 3 . the project team should know the differences between special causes and random causes. rework)/External (warranty) Failure costs Management is 85% responsible for quality. Standard Deviation – From 3 point Estimates = (P – O)/6 Page 25 of 46 12/19/07 Last Updated . procedures. Appraisals Costs (inspection/testing) and Internal (scrap. Process Analysis – Lessons learned in first few cases is used to improve the process on the remaining ones. Sampling and probability are the most important topics to understand in statistical process control . TQM – Total Quality Management Philosophy encourages companies and their employees to focus on finding ways to continuously improve quality of their business practices and products.Rajesh (Fishbone) (3) Used to explore a wide variety of topics (4) Also known as Ishikawa or Fishbone diagram Quality Planning Quality Control Quality Assurance Refers to potential problems. Two components of product availability are reliability and maintainability.5% of total value. it can occur during execution if there is a change. Documentation • Quality Management Plan – describes method for implementing quality policy project quality system and organizational structures. processes and resources needed to implement project quality management. The project manager is primarily responsible for quality management.g. Cost of Quality Includes Prevention Costs (training).PMI Exam Study Notes . Top management should direct continuous improvement .

1 Sigma equal to 68. which is percentage of occurrences to fall between the two control limits.26%. Page 26 of 46 12/19/07 Last Updated . It represents that they are not random and should be investigated.PMI Exam Study Notes . seven random data points grouped together in a series with in control limit. Rule of Seven – Based on Heuristics.Rajesh Six Sigma – Level of Quality. +/.

relationships) 2. Roles and Responsibilities – (O/P of HR planning) Role. Economic Conditions. illness.How is the team going to do this work? 5. SMP can be updated because of promotions. What is this team going to do? 4. Storming. training and team building 4.process required to make the most effective use of the people involved with the project Page 27 of 46 12/19/07 Last Updated . 4. Compliance – With Government regulations 7. conversation and project performance appraisals. Authority. culture and language differences etc) 4. Political (Individual goals and agendas) Constrains – Organizational Structure. Consult and Inform) Halo Effect – Tendency to rate high or low on all the factors due to the impression of a high or low rating on some specific factor. bars beyond the maximum available hours identify need for resource leveling strategy. co-location. RACI (Responsible. Organizational Charts – Hierarchical. performance issues and changing workloads.PMI Exam Study Notes . It should answer 1. Organizational theory – Provides information regarding the ways that people. Matrix based and Text Oriented. RBS – Resource Break Down Structure is an hierarchical chart which shows break down of project by resource types. their working arrangements. Performing and Adjourning Kickoff Meeting – Indirect Method to start team development. Staff acquisition – internal or external or contract. Special skills and competencies by team members discovered 5.How do I fit into all this? Lessons Learned from Manage Project Team – 1. Safety Interpersonal Skills – Are also known as soft skills Management of Project teams – is complicated in Matrix organization. Norming. Recognition and rewards 6. RBS is helpful in tracking project costs. can contain categories other than human resources. aligned with organizations accounting system. positions and SMP 2. same location or different etc 2. Accountable. Release criteria – Morale is improved if transitions are already planned. 3.Rajesh Chapter 9 . teams and organizational units behave. Ground rules. conflict management techniques and recognitions 3. Logistical (How much distance) 5. RAM – Responsibility assignment Matrix. retirements. Procedures for Virtual teams. Unplanned training takes place as a result of observation. Interpersonal (Formal or informal reporting relationships. SMP contents: 1.HUMAN RESOURCE Management Enterprise Environmental Factors – (I/P to HR Planning) 1.Why am I here? 2.Who are you and your expectations of me? 3. Issues and solutions Project Human Resource Management . Organizational (which departments. Responsibility and competency Staff Management Plan – Describes when and how human resource requirements will be met. Timetable – Resource histogram is prepared. Training Needs 5. Five Stages of Team Development – Forming. Collective bargaining agreements. can be developed at various levels. Project organization charts. Technical (Disciplines and Specialties needed) 3.

g. Resources Histogram – often part of Staffing Management Plan. friendly but avoids solving root causes. could be lose/lose Retreating from actual or potential disagreement. who is accountable. assignments by work packages and action required. mth) of a specific job function. Analyze the situation / Document the situation 2. personality. Types of Power Legitimate (Formal) Coercive Reward Derived from formal position Predicated on fear Involves positive reinforcement and ability to award something of value Project often needs their own rewards system to affect employee performance. Go to management Page 28 of 46 12/19/07 Last Updated . neither party wins but each gain some satisfaction [win-lose/win-lose] this is very rarely a good way to resolve technical issues. Develop alternatives with the team 3.A depiction of the project organization arranged so as to relate work packages to organization units. Manager says an issue is valid but doesn’t think it will be a big problem later) Address conflict directly in problem solving mode [win/win] EXECUTIO N& CONTROL 1 2 3 Most tension + 1 3 2 + + + INITIATI ON 1 2 3 PLANNI NG 1 3 2 CLOSEOUT 3 steps of problem solving: 1. Also referred to as RAM. Expert Held in esteem because of special knowledge or skill (requires time) Referent Ability to influence others through charisma. One party meets other party need at expense of his own. etc. Organizational Breakdown Structure (ORS) . bring the team’s goals and objectives in line with each other and with the project. The best forms of power are generally Reward and Expert Conflict Management Avoidance/Withdrawal (Ignoring) Competition/Forcing Compromising Accommodation Collaborating **Smoothing **Problem Solving / Confrontation Sources of Conflict Priorities Admin Procedures Schedules Technical Issues Personnel Resources Personality Conflict At least one party withdraws from conflict. Show who is participant. who handles reviews. Opposite of Competition. must make the link between performance and reward clear. “Just document the problem”) Exerting one’s viewpoint. Rewards and Recognition Systems -. y=phase). “Call the customer and demand that you receive the approval today.g. delaying (eg. delaying (e. explicit and achievable. shows resource usage (eg staff hours) per time period (eg wk. Lose/Win Involves incorporating multiple ideas and viewpoints from people with different perspectives and offers a good opportunity to learn from others (good when project is too important to be compromised) Win/Win Best Strategy De-emphasize differences and emphasize commonalities. Cool off period. a last resort [win/lose] (e.” Bargaining and searching for solutions. Linear Responsibility Chart (LRC) – identifying responsibility. The most important feature of the RAM is the participatory development process involving all stakeholders. Used be effective.Rajesh Responsibility Assignment Matrix (RAM) – Show who does what (x=person. who provides input and who must sign off on specific work packages or project phases.PMI Exam Study Notes .

Forms of Organization Functional Groups people by specialization. not more power (remain to PM) Leadership Theories: McGregor – Theory X (employee lack ambition) and Theory Y (org structure are responsible for motivation) Tannenabaum-Schmidt model – Continuum of leadership styles between the autocratic and participative styles Blake and Mouton – ref to managerial grid (Concern for People Vs Concern for Production). Recognition. Self-Actualization) 2.PMI Exam Study Notes . motivate by reward and punishment. All the project team members report directly and solely to the project manager. Relationship at Work.9 is Country Club mgmnt. Professional Growth. can become self-motivated and exercise self-control. Maslow’s Hierarchy of Needs Theory (Physiological. Hygiene: Working Conditions. Strong Matrix Same as Weak except that the balance of power leans towards the Project Manager Projectized A separate. open discussion and information gathering by team Shareholder Little or no information exchange. Team development is based on the individual development of each member.9 is team mgmnt. **Memorize PMBOK “Organizational Structure Influence on Projects” Team building is most difficult in a matrix organization. Project Expeditor Retains functional but adds a Project Expeditor who serves as a communications link and coordinator for the project across functional units Project Similar to Project Expeditor except the Coordinator reports to a higher level manager and has some Coordinator authority to assign work Weak Matrix Vertical functional lines of authority maintained with a relatively permanent horizontal structure containing managers for various projects. Social/Belonging.) 2. Safety. directs behavior – 1.Rajesh Motivational Theory: Content & Process Theories Content: “What” energizes. MBO – More support to team. whereas 1. 9. collective decisionmaking ) Other Motivational Theories: Behaviorism – people behavior can be modified through manipulation of rewards and punishments Expectancy Theory – Motivation is explained in terms of expectations that people have about (1) their ability to perform effectively on the job. vertical structure is established for each project.1 is laissez faire mgmnt. Physiological) Process: “How” personal factors influence behavior 1. Leadership Styles Autocratic PM makes decision without soliciting information from team Consultive Intensive information solicited. 1. are inherently selfcentered and are not very bright. Its main purpose is to improve team performance. Can cause a project to fall behind because functional managers are pulling resources away to perform non-project related tasks. Salary. motivate by removing obstacles and providing self-directed environment. will accept responsibility. Y: Assumes people become lazy w/o recognition. team has ultimate authority for final decision Page 29 of 46 12/19/07 Last Updated . 5. Social. The Project Manager may be able to make resource decision on his own but not technical decision. usually lifetime employment. Self-Actualization.5 is Compromise mgmnt and 9. Ouchi’s Theory Z/Japanese Theory ( focus on team. Project manager has no formal authority of resources and must rely on informal power structure and his own interpersonal skills to obtain resource commitments from functional managers. Hertzberg’s Motivator/Hygiene Theories (Motivator: Responsibility. company. Esteem. Safety.1 is Task oriented mgmnt. Balance of power leans toward the Functional Manager. dislike responsibility. McGregor’s Theory X and Theory Y (X: Assumes people lack ambition. (2) the rewards they might obtain if they do perform effectively and (3) the value or degree of satisfaction they anticipate from those rewards. PM makes decision Consensus Team makes decision. Esteem.

the project manager should update employee’s record with the new skills acquired. Schedule 2. Technical Opinions 5.PMI Exam Study Notes . • Employee Record Update – as part of closure. Page 30 of 46 12/19/07 Last Updated . • Resource calendar – identifies period when work is allowed. Resources 4. Personality Arbitration – The hearing and resolution of a dispute performed by a neutral party.Rajesh Roles of the Project Manager Integrator Communicator Team Leader Decision Maker Climate Creator/Builder Functions of the Project Manager Planning Organizing Leading Controlling Documentation • Staffing Management Plan – describes when resources will be brought into and taken off the project. Conflicts in Order of Frequency – 1. Team Performance assessment is done by the PM in order to evaluate and improve the effectiveness of team. Project Priorities 3. Perquisites – Giving Special rewards Fringe Benefits – Standard benefits given to all employees. Administrative Procedures 6. Cost 7. Performance Appraisals/Assessment – Project Manager will collect information from team member’s supervisors when project performance appraisals are completed.

Communications Model Communicator The originator of the message Message Thoughts. Project Communications Management .all team members allocated in a single office space A variance is considered to be significant if it jeopardizes project objectives. The output of project plan execution consists of work results and change requests. person responsible. Expected Project Staffing. Performance Reviews – meetings held to assess status and/or progress.Encoding  Transmission  Decoding -. Presentation techniques and Meeting Management Techniques. Availability of technology. But may include information on Risk and Procurement. memos Formal Verbal Presentations Informal Verbal Conversations Note: 55% of communications is non-verbal (it is the most important aspect of a conversation) Page 31 of 46 12/19/07 Last Updated . frequency of communication. The purpose of project plan development is to create a document to guide project execution and control. and how it will be given to them. methods for CMP updates. Writing Style.n)/2 or n(n-1)/2 …the fact that two team members are working “directly” together does not reduce the number of communication channels. information format. Communications Technology – (TT of Communication planning) factors that affect the project include Urgency of the need for information. Choice of Media. content.process required to ensure proper collection and dissemination of project information. when they will need it. Tight Matrix . Team Meetings – periodic team meetings is the most effective way to accelerate the project integration process. CMP – Contains stakeholder communication requirements.Rajesh Chapter 10 – COMMUNICATIONS Management Communications Planning —determining the information and communications needs of the stakeholders: who needs what information. methods or technologies. Types of Communications Formal Written Project Charter.[Receiver]  Feedback Communications Channels = (n2. Schedule and Cost. or ideas reduced to "code" that is understood by both sender and receiver Medium The vehicle or method used to convey the message Recipient The person for whom the message is intended [Sender] -. feelings. Management Plan (this is the best type of communication method to use when there are cultural differences and distance between team members) Informal Written Notes.PMI Exam Study Notes . Length of the Project and Project Environment. detail level. Performance reporting – Generally on Scope. Art of Communications – Includes Sender-receiver Models. It is often tightly linked with enterprise environmental factors and organizational influences. escalation process & Glossary of common terms. Quality.

Rajesh 90% of Project Manager's time is spent acquiring and communicating information Objectives of a Kickoff Meeting Get to know each other Set team goals and objectives Review project status Review project plans Identify problem areas Establish responsibilities and accountabilities Obtain commitments Barriers to Communications (which lead to conflict) Lack of clear communication channels Physical or temporal distance Difficulties with technical language Distracting environmental factors Detrimental attitudes The most likely results of communication blocker and miscommunication as a whole is conflict. Building Effective Team Communications Be an effective communicator Be a communications expeditor Avoid communication blockers Use a "tight matrix" (single office space) Make meetings effective (meeting during execution is the best format to communicate) Management Styles Authoritarian Combative Conciliatory Disruptive Ethical Facilitating Intimidating Judicial Promotional Secretive Lets individuals know what is expected of them Eager to fight or be disagreeable over any situation Friendly and agreeable Tends to disrupt unity and cause disorder Honest and sincere Does not interfere with day-to-day tasks. aligning people. encourages subordinates to realize their full potential Not open or outgoing in speech. but is available for help and guidance when needed Reprimands employees for the sake of a "tough guy" image Applies sound judgment Cultivates team spirit. or purpose Management Skills Leading Communicating Negotiating Problem Solving Influencing the Organization Establishing direction. and motivating and inspiring The exchange of information in a variety of dimensions Conferring with others in order to come to terms or reach an agreement A combination of problem definition and decision making The ability to get things done based on an understanding or the formal and informal structures of the organization Page 32 of 46 12/19/07 Last Updated . activity. rewards good work.PMI Exam Study Notes .

Page 33 of 46 12/19/07 Last Updated . they might be sent out as they are created.Rajesh Documentation …the prevailing measurement of what information to accumulate and communicate on a project is that it contributes to its success.should cover all phases of the project • Performance reports – provide info on schedule performance. PM Team. Sellers and Customers WBS – Can be effective tool for communicating in a situation internal and external to the project.PMI Exam Study Notes .summarize project status. • Trend Report – show performance over time (shows if it is improving or deteriorating) Reports are a method to distribute information. • Progress Report . Lessons Learned – One should not wait till the Project is over. Preferred report to quickly review where a project now stands. not • Variance Report – compare project results. LL are created by Stake Holders. thereby alerting the team to problems that may arise in the future. Communication in Contract – Everything we do is more formal in contract environment. looks at specific project items or tasks just to report on progress • Forecasting Report – only looks into the future • Status Report – relating a moment in time (static) • Project Plan • Staffing Management Plan • Communications Management Plan . PM.

Definition of Risk Probability and Impact (Used for Qualitative Risk Analysis. as well as those have been deliberately accepted. the project team leaders. Revised Stakeholders tolerances 8.project manager.Probability Distributions (Beta Distribution and Triangular Distribution) 2. Strategy for Positive Risk or Opportunities . Risk Categories (RBS. if it occurs.Interviewing 4.Acceptance Residual Risks – Risks that are expected to remain after planned responses have been taken. tools and data sources) 2.Delphi Technique 3. Communication about risk should be honest and open. Schedule Risk analysis use PDM. Modeling and Simulation is recommended for Cost & Schedule Risk analysis because they are more powerful and less subject to misuse than EMV analysis.Brainstorming 2.SWOT analysis Check List Analysis (I/P for Risk Identification) – Can be based on Historical information of previous similar projects. it includes 1.Is an uncertain event or condition that. Risk identification is an iterative process. Data Gathering and Representation Technique 1.PMI Exam Study Notes . Cost Risk Analysis use CBS or WBS. Secondary Risks – Risks that arise as a direct outcome of implementing a risk response. Enhance Strategy for Negative Risk or Threats – ATM – Avoid. Pure Risk (Only Risk of Loss) Planning meetings . Quantitative Risk Analysis and Modeling Techniques • Sensitivity Analysis – Determine which risks have most potential impact. Good practice is to review risk categories during RMP prior to Risk Identification Process) 5. • Expected Monetary Value – Opportunity expressed as Positive. if it occurs. Business (Gain or Loss) 2. Interviewing 2. Moderate or High) 7. Page 34 of 46 12/19/07 Last Updated . Probability and Impact Matrix (Look up table. • Decision tree analysis – Shows available choices and their possibilities • Modeling and Simulation – Done using Monte Carlo Technique . Timing (When and how often) 4. Reporting Formats (Describes Risk Register Contents and format) 9. (Just like core process) Risk Types – 1.Rajesh Chapter 11 – RISK Management Project risk . Risk response reflects organizations perceived balance between risk taking and risk avoidance. Transfer.SEE – Share. a consequence. Methodology (Approach. A threshold is the amount of risk that is acceptable. Tracking (Auditing and Documentation for LL) Information Gathering Techniques (I/P for Risk Identification) – 1.Attendees . Qualitative Risk Analysis – Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact . Attitude about Risk – Should be made explicit. Some one who does not want to take risks is said to be Risk Averse. has a positive or a negative effect on a project objective. Risk Management Plan – Describes how Risk Management will be structured and performed. Tolerance and Threshold – Tolerance are areas of risk that are acceptable or unacceptable. Tornado Diagram. Risk expressed as negative. anyone in the organization with responsibility to manage the risk planning and execution activities.Root cause analysis 4. key stakeholders. Mitigate Strategy for Both . Exploit. with impact categorized as Low. Quantitative Risk Analysis 1. Budgeting (Resource and Cost Estimate) 3. Quantitative Risk Analysis – Numerically analyzing the effect on overall project objectives of identified risks. the lowest level of RBS can also be used as Risk Checklist. A risk has a cause and. Quality & credibility important) 6.

The most likely cause of poor risk management is lack of prioritized list of risks. Use of this database will assist risk management throughout the organization and. areas of the project and how they affect project objectives 15. Contingency reserves of Time and Cost. Probability of Achieving Cost and Time Objective 12. and responding to uncertainty. Updated Risk Categories (RBS which is developed in RMP is enhanced or amended) Updates after Qualitative Risk Analysis 5. we obtain insurance. Symptoms and warning signs of risks occurrence 18. legal liability.Rajesh Recommended Corrective Actions – For Risk monitor and Control include Contingency plans and workaround plans. analyzing. Trends in Quantitative Risk Analysis Results Updates after Risk Response Planning 14. Prioritized List of Quantified Risks 13. List of Risk requiring Response in the near term 8. we have contract. (e. maintenance. Budget and Schedule activities required to implement the chosen responses 19. developing alternative activity sequences) Page 35 of 46 12/19/07 Last Updated . Contingency Triggers. Identified Risks. 20. their descriptions. form the basis of a risk lessons learned program.PMI Exam Study Notes . Relative Ranking or Priority list of Project Risks 6. Types of Risk Business Normal risks that offer gain and loss Pure / Insurable Only loss: property damage. Work around plans are not initially planned but are required to deal with emerging risks that were previously unidentified or accepted.g. Fallback plan 21. Risk Register – (O/P of Risk Identification) 1. Agreed upon response strategies 17. For pure risks. For risk we can outsource. Risk database . Trends in Relative Risk analysis results Updates after Quantitative Risk Analysis 10. Risks grouped by categories 7. over time. indirect consequential loss. Probabilistic Analysis of the project 11. Root causes of Risks 4. Watch list of low priority risks 9. List of Potential Responses 3. Residual and Secondary Risks Project Risk Management – processes concerned with identifying. Risk owners and their responsibilities 16. and analysis of data gathered and used in the risk management processes. personnel. Risk Factors Risk event Risk probability Amount at Stake Statistical Independence Data Precision Ranking Secondary Risk Path Convergence Contingency Plan Occurrence of one event is not related to occurrence of the other Purpose is to test the value of data (input to Qualitative Analysis) (part of Risk Response Planning) Tendency of parallel paths of equal duration to delay the completion of the milestone where they meet Planned action steps to be taken if an identified risk occurs. List of Identified Risks (including root causes and assumptions) 2.A repository that provides for collection.

warranties) Accept or retain consequences. you can determine how they might react to different situation and risk events. It calculates EMV in more complex situations 3.1. Insurance. After a risk event. Takes into account future events in trying to make decision today 2.PMI Exam Study Notes . -25% -10% -5% 68. the project manager’s role is to reassess the risk ranking. Page 36 of 46 12/19/07 Last Updated .5% 99. output of risk identification. Involves mutual exclusivity Fall back Plan – Specific actions that will be taken if the contingency plan is not effective. simplest form of analysis Role is to investigate the effectiveness of the risk owner (which can cause potential conflict with risk owner) Risk Taker.7% 99. Float can be use to mitigate potential risks Deflect or share (eg. characterized by the absence of any information related to a desired outcome. Unplanned response to negative risk events (requires to be impacted by the risk first) = Probability * Monetary Impact (used in Decision Tree Analysis) A discrete occurrence that may affect the project for better or worse. Can be done by changing the Project Plan or protecting project objectives from its impact. if you know the tolerance of the stakeholders. Risk Trigger Risk Portfolio Utility Theory Sensitivity Analysis Risk Auditor Risk Tolerance Responses to Risk Avoidance (elimination/abateme nt) Mitigation (reduction) Transfer Acceptance Numbers to Know Cost Estimates: Order of Magnitude (ballpark estimate) Budget Definitive 1 sigma 2 sigma 3 sigma 6 sigma Eliminating cause eliminates risk. Risk Adverse. Decision Tree Analysis . A symptom of risk.Rajesh Uncertainty Workaround Expected Monetary Value Risk Event An uncommon state of nature.3% 95.99% +75% +25% +10% The range of an estimate with the smallest range is the least risky. example is poor morale Risk data assembled for the management of the project Technique that characterizes an individual’s willingness to take risk Places a value on the impact to the project plan by adjusting a single project variable. 2 types: Active Acceptance (develop a contingency plan) or Passive Acceptance (no action). indirect manifestation of actual risk event. Reduce the Expected Monetary Value. Risk Neutral. You use this information to help assign levels of risk on each work package. Documentation Risk Management Plan – would most likely be developed during scope planning phase of the scope management process. The risk owner is responsible to take action when an identified risk occurs.

PM team may be present during negotiations for providing any clarification of project’s technical and management requirements. ensures clear and common understanding of procurement needs.g. Contract Negotiation – Project Manager may not be the lead negotiator. Select Sellers – Tools & Techniques 1. Performance 2. Procurement Documents 1. Contract SOW Types – 1. It includes Type Of contract. Request for Quotation – Price Quote per item Contract – Subjects covered include Responsibilities. Seller Rating Systems 6. also called overhead costs. Request for Quotation (RFQ). Page 37 of 46 12/19/07 Last Updated . Design IT. Seller is allowed to propose alternative solution in a separate proposal. salaries of full-time project staff). Procurement Document Package – Buyer prepared formal request sent to each seller and is the basis upon which a seller prepares a bid for the requested products. Independent Estimates – called “Should-Cost” .Rajesh Chapter 12 – PROCUREMENT Management Project Management Team – Is responsible to help tailor the contract to the specific needs of the Project. law and terms. Information for sellers 2. Bid. Part of PMP. Procurement Documents – Common names for different types of procurement documents include: Invitation for Bid (IFB). as Contactor Conferences. Proposed terms and conditions of the contract (Legal & Business) Proposal . Functional 3. financing. that is contract. schedule. tender notice. comparable responses but flexible enough to allow seller suggestions for better ways to satisfy the requirements. Request for Proposal (RFP). 5. delivery and performance requirements that the buyer and seller must meet. Expert Judgment 7. the processes from solicitation planning (Section 12. service or result. Proposal Evaluations techniques – Use some Expert judgment and evaluation criteria to rate and score proposals. The plan covers the contract administration activities throughout the life of the contract. identifying seller list etc. Screening System – Establish minimum performance requirement for one or more criteria and use 1 & 2 methods 4. Invitation for Bid/Request for Bid (IFB. authorities.. Request For Proposal/Tender (RFP.technical approach. who prepares independent estimates. technical and management approaches.. R & D or Projects never done before – Performance & Functional Construction. It has 1. Procurement Processes Repetition . Indirect costs. Tender and quotation – price Procurement Management Plan – Describes how procurement will be managed till contract closure.Design Bidder Conferences – Also called. prepared by procuring organization. selection based on total weight 2. and Contractor Initial Response. 3. Invitation for Negotiation. RFB) – One Price 3. rating sellers. Weighting System – Numeric Weight to each criteria.When the project obtains products and services (project scope) from outside the performing organization.Direct costs are costs incurred for the exclusive benefit of the project (e. payments and price. Contract Management Plan – Lists documentation.6) would be performed once for each product or service item. WBS and WBS Dictionary describes procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing it.2) through contract closeout (Section 12. Contract SOW 3. Constraints and assumptions. Costs . are costs allocated to the project by the performing organization as a cost of doing business (e. Equipment or Purchase .g. standardized procurement documents. Contract SOW – Developed from Scope Statement. RFT ) – Requests for Price and Detailed Proposal 2. High-tech.PMI Exam Study Notes . Contract negotiations conclude with a document that can be signed by both buyer and seller. salaries of corporate executives). Vendor Conferences and Pre-Bid Conferences are meetings with prospective sellers prior to preparation of bid or proposal. Procurement documents are rigorous enough to ensure consistent. The final contract can be a revised offer by the seller or counter offer by the buyer.

Project Procurement Management . Payment terms should be defined within the contract and must involve a specific linkage between seller progress made and seller compensation paid. This is the most common cost reimbursable contract. Seller Performance evaluation documentation PMP updates – Procurement Management Plan and Contract Management Plan. S-curves. Contract file.4) in that it involves both product verification (Was all work completed correctly and satisfactorily?) Administrative closeout (updating of records to reflect final results and archiving of such information for future use). Buyer(Give Order )----PO------------ Seller Seller ----Invoice------ Buyer (Pay order) Contract administration also has a financial management component. Contract Types and Risk Cost Plus Percentage of Cost (CPPC) Cost Plus Fixed Fee (CPFF) Cost Plus Incentive Fee CPIF) 1. including resolution of any open items.4 Administrative Closure (Internal)—generating. Payment Schedules and Requests 3. Cost-Reimbursable 3. long performance periods and substantial development and test requirements (incentive to the vendor to perform on or ahead of time) Page 38 of 46 12/19/07 Last Updated .the processes required to acquire goods and services from outside the performing organization. Buyer and seller share in savings based on predetermined %s. Disputes or appeals) are those where buyer and seller cannot agree. and tables. The risk rests with the buyer. 10. Fixed Price 2. a purchase order. Contract closeout is similar to administrative closure (described in Section 10. Claims Administration – Contested Charges (claims. Procurement Audit – Review of procurement processes from Plan purchases to Contract administration. A complete set of indexed records should be prepared for inclusion with the final project records When PRJs involve significant procurement. fixed fee can change if there is a change to the contract (usually through change orders).PMI Exam Study Notes . 2. histograms. Correspondence – In addition to documentation. Payment System – Usually handled by accounts payable system of the buyer. It includes reviews & approvals by PM team. Contract administration includes application of the appropriate project management processes to the contractual relationships(s) and integration of the outputs from these processes into overall management of the project. an agreement . If both parties do not resolve a claim it is handled according to the resolution procedures established in the contract. Records Management System – Set of procedures and automation tools that are consolidated as part of PMIS to manage contract documentation and records.Rajesh Contract Administration – Ensures the seller meets the performance requirements of the contract. Contract Closeout—completion and settlement of the contract. gathering.a subcontract . Make or Buy Decision – it is generally better to do the work yourself if using an outside company means you have to turn over highly confidential proprietary data to other company. and disseminating information to formalize a phase or project completion. Because of legal considerations many organizations treat contract administration as a separate administrative function from the project organization.Time & Material No valid for federal contracts Used for research and development contracts (which generally have low level of detail in the scope). (External ) Common formats for performance reports include bar charts (also called Gantt charts). a contract . Contract clauses can involve arbitration or litigation and can be invoked prior or after contract closure. Aims to identify successes and failures. Organization Process Assets (After Contract Administration) – 1. particular attention must be paid to archiving of financial records. it is a record of all the written and oral communication. or a memorandum of understanding .

This money is paid when work is complete. It is simplest type of fixed price contract and is usually unilateral(Signed by one party instead of bilateral) FP – FPIF – FPAF – FPEPA – T&M – CPIF – CPAF – CPFF .Rajesh • In Cost plus contract.g.g. Fire etc Indemnification – relationship that exists between any contracting parties (e. written or spoken Something of value Able to contract No violation of public policy Introductions Identify concerns. Force Majeure – Act of God. “C” is not legally bound by anything “A” can say. Forebearance can mature into waiver.PMI Exam Study Notes . Profit factor into the hourly rate. Floods. Good when deliverable is not a core competency. even if it meets the needs of the project. The SOW supplements the specification in describing what must be done to complete the project. Fixed Price (FP) is the most common type of contract in the world. strengths. weaknesses Actual bargaining Positions summed up Documenting Specification . the privity is with “B”) Waiver . Allow Price increase if the contract is for multiple years A form of contract that is normally unilateral and used for simple commodity purchases. 100K + 10K for every designated incremental quality level reached. Warranty . it has to also meet the requirement of the contract. Privity . the only firm figure is the fee High-value projects involving long performance periods Reasonably definite specifications (e.a party can relinquish rights that it otherwise has under the contract. procedure.precise description of a physical item. SOW). Amount of money usually 5% to 10% withheld form each payment. Shift risk to seller.g. who is liable Retainage – withholding of funds under contract. Liquidated damages Page 39 of 46 12/19/07 Last Updated .CPPC Fixed Price – T&M . if company “A” hires “B” and “B” subcontract to “C”. or service.assurance of the level of quality to be provided A contract ends by: Successful performance Mutual agreement Last two are Termination Breach of contract Terms and Conditions – the project manager must uphold the Terms and Conditions of the contract.Cost Reimbursable Buyer’s risk from low to high Seller’s risk from high to low Fixed Price Plus Incentive Fee (FPI) Firm Fixed Price (FFP) Time & Material (T&M) Fixed Price Award Fee Fixed Price Economic Price Adjustment (FPEPA) Purchase Order Contract type Vs Risk Elements of a Contract Offer Acceptance Consideration Legal Capacity Legal Purpose Stages of Contract Negotiation Protocol Probing Scratch bargaining Closure Agreement Assent to certain terms by both parties Agreement. Good if the buyer wants to be in full control and/or the scope is unclear/not detailed or work has to start quickly. “bonus” to the seller based on performance (e.

Rajesh Contract Control System vs Project Control System – they both include procedures. Sole Source (not Single Source )– Only one seller.No standard policies Strategic Delay Reasoning Together Withdrawal Unreasonable Suggesting Arbitration Fait Accompli (A done deal) Difference Between Contract Closeout and Admin Closure 1. Page 40 of 46 12/19/07 Last Updated . Contract Closure comes first 2. the level of extent of completion should be established and documented. comparing cost estimates with in-house estimates or with outside assistance (part of Source Selection) Procurement Audit – structured review that flush out issues. Beneficial Efficiency – when the work is being used for the intended purpose and has been certified Terminating contract for Convenience – if a project is terminated before it is complete. Material Breach – Breach so large that it may not be possible to complete the work.AC – Lessons learned CC – Procurement audit 4.PMI Exam Study Notes .May become a bottleneck .Duplication of contracting efforts .Less attention to special needs Negotiating Tactics Deadline Surprise Limited Authority Missing Man Fair and Reasonable Decentralized + Project Manager has more control + Contracting personnel are more familiar with project + More flexible and adaptable to project needs . and set-up lessons learned. Identify successes and failures that warrant transfer to other procurements. Performance Scope of Work – describes the performance – not the functionality-.required by the customer Independent Estimate – most concern with costs. Contracting Centralized + More economical + Easier to Control + Higher degree of specialization (expertize) + Orders can be consolidated .Higher costs . AC – Less Formal CC – More Formal. It helps with integrating tasks into a whole. Helps ensure problems are resolved for future projects. Work Authorization Systems – can be used to coordinate/control what time and sequence work is done. CC is done only once at the end of Contract 3. it might be a company that owns a patent. The contract control system requires more documentation and more signoff. AC is done at end of each phase or project.

report thefts Company and Customer’s Interest . If such compromise is found.It is the project manager’s professional responsibility to ensure that company policies are followed during the project.PMI Exam Study Notes .Rajesh Chapter 13 – Professional Responsibilities Routine Government Fee (Transfer Fee) – only government official can collect routine government fees (this is not a bribe) Company Policies . you should add as a lump sum contingency fund to handle project risks) Rights . action must be taken.when a team member makes a mistakes. Page 41 of 46 12/19/07 Last Updated .g.professional responsibility requires the investigation of any instances where the legitimate interests of the customer may be compromised. Copyright laws – do not violate Employee mistake . allow him to save face and to fix the problem. Protect your company’s interests Budget tampering .do not do business with a country where there is a clear violation of the fundamental rights (e. non-discriminating treatment). Try to workout an issue before escalating. it should be reported directly to the employee’s manager.g. Do not make illegal payments. if a customer ask to estimate “pessimistically”. Exception: if it is not considered a project related issue (e.presenting anything besides your original estimate to allocate more to the budget is inaccurate and calls into question your competence and integrity as project manager (e. harassment).g.

and staff assignments for each WBS element. (1) Establish unambiguous and realistic objectives (2) Periodically evaluate whether project objectives are being achieved (3) Act on the results of the evaluation. Scope verification is primarily concerned with acceptance of the work results. Each task should be broken down into work packages that require no more than 80 hours to complete. To describe how project scope will be managed and how scope change will be integrated into the project. Multiple CCBs may be used on large projects. At the end of the project. Managers organize the elements of the productive enterprise in the interest of economic ends. and Projectized It holds that people tend to be highly productive and motivated if they believe Page 42 of 46 Last Updated 12/19/07 . Managers should try to create an environment where workers can achieve their own goals. including the business need that the project was undertaken to address and the product description. they are willing and eager to accept responsibilities and are concerned with self-growth and fulfillment. lacking ambition. cost budgets. lazy. It provides the project manager with the authority to apply organizational resources to project activities. To provide interested parties with work package descriptions and other planning information such as schedule date. Matrix. Traditional approach: workers are self-centered. Obj. To formally document the existence of the project. To approve or reject change requests according to responsibilities defined and agreed upon by key stakeholders. What is the expectancy theory? Problem Solving/confrontation because both parties can be fully satisfied if the work together to find a solution that satisfies both their needs. Functional.: Gain consensus of expert opinions. quality control is primarily concerned with the correctness of the work results.Rajesh POSSIBLE EXAM QUESTIONS Scope Questions Why is a careful and accurate needs analysis important? How is a change control board used? Can there be more than one? What is the purpose of the project charter? How does it benefit the project manager? What is the Delphi Technique? What is the purpose of the scope management plan? What is the purpose of the WBS dictionary? What is the 80 hour rule? What is the difference between scope verification and quality control? What are the three steps involved in MBO? When should scope verification occur? HR Questions Which are the five methods of managing conflict is recommended? Why? What are the three types of project interfaces that serve as inputs to the organizational planning process. (1) Organizational interfaces (2) Technical interfaces (3) Interpersonal interfaces They can occur simultaneously. A forecasting technique used to gather information. Workers are not by nature resistant to organizational needs. it relies on gathering expert opinions. Usually goes three rounds. When can they occur? What is McGregor’s Theory X? What is management’s role in this approach? What is McGregor’s theory Y? What is management’s role in this approach? To make sure customer or stakeholder expectations can be identified and satisfied. What is an organizational breakdown structure (OBS)? What is the purpose of a resource Gantt chart? Does the matrix form of project organization facilitate or complicate project team development? Name three major forms of project organizational structure.PMI Exam Study Notes . A specific type of organizational chart that shows which units are responsible for which work items It identifies when a particular resource is or will be working on a particular task It complicates team development because team members are accountable to both a functional manager and a project manager.

quality. and up-to-date schedules and status reports. It provides a repository for project artifacts. Stakeholder analysis Ability to work well with others Last Updated Page 43 of 46 . Senior and functional management Weak matrices are similar to functional organizations. Addressing conflict directly by getting the parties to work together to define the problem. According to PMI. the biggest problem in Administrative Closure is retaining team members until closure of the project. It gives an identity to the project team. functional organization is established for each project. attitude of supervisor. It is used to help the project management team assess project performance. Multiple CCBs may be used on large projects. (1) Be an effective communicator (2) Be a communications expeditor (3) Avoid communications blockers (4) Use a tight matrix (5) Have a project war room (6) Make meetings effective Listening in which the recipient is attentive and asks for clarification of ambiguous messages Schedules Personality conflicts An analysis that integrates cost and schedule measures. schedule.Rajesh Scope Questions Why is a careful and accurate needs analysis important? How is a change control board used? Can there be more than one? What is problem solving/confrontation? Give three examples of hygiene factors in Herzberg’s theory of motivation. To make sure customer or stakeholder expectations can be identified and satisfied. but improving hygiene factors in not likely to increase motivation. Project manager’s concern is that the team may not be focused on completing the project (team looks for new mandate or tries to extend the length of the project). Poor hygiene may destroy motivation. How do they affect motivation. and select the most appropriate alternative. (1) What information will be collected (2) How the information will be collected (3) How and to whom the information will be distributed (4) When the information will be communicated (5) How to obtain information between regular communications (6) How the Communications Plan will be updated through the project Comparing actual project results to planned or expected results in terms of cost. scope. their efforts will lead to successful results and they will be rewarded for their success. Who is responsible for addressing individual performance problems? Describe the difference between a weak matrix and a strong matrix. To approve or reject change requests according to responsibilities defined and agreed upon by key stakeholders. Motivators are an opportunity to achieve and experience self-actualization. develop and analyze alternatives.PMI Exam Study Notes . What is a projectized organization? Communications Questions What is a project "war room"? What is its primary benefit? Describe the six parts of a Communications Management Plan. Pay. Personnel are assigned on a full-time basis. What is variance analysis? What are six actions project managers should take to ensure effective project team communications? What is active listening? What is major cause of conflict with functional managers? What is most difficult conflict to deal with? What is earned value analysis? How is it used in performance reporting? What is the tool for used for communication planning? What is the most important characteristic for a 12/19/07 A single location for the team to get together for any purpose. collect information. and working conditions. and risk. Strong matrices are similar to projectized organizations (with balance of power tipped toward the project manager) One in which a separate. records.

maintenance. All project docs goes into the archives. Taking action to determine how to obtain the greatest amount of duration compression for the least incremental cost. and risk. records. it shows only dependency Amount of time that an activity can be delayed without delaying project. When the archive is completed. but their work boundaries and role definitions are unclear. quality. They exist when two or more parties have related responsibilities. and disposal costs. operating. (1) What information will be collected (2) How the information will be collected (3) How and to whom the information will be distributed (4) When the information will be communicated (5) How to obtain information between regular communications (6) How the Communications Plan will be updated through the project Comparing actual project results to planned or expected results in terms of cost. this is the last thing to create before releasing the team.PMI Exam Study Notes . scope. Code of accounts is numbering of WBS elements They represent the basic level at which project performance is measured and reported. Administrative Closure or Contract Closure? What is "chart of accounts"? What are cost accounts? Concept of including acquisition. schedule. schedule by smoothing or leveling peaks and valleys of resource utilization Assessing the number of work periods likely to be needed to complete each activity One that consumes no time or resources. Coding structure used to report financial information in general ledger. project manager? What factor has the greatest effect on the project's communication requirements? What is the primary condition leading to conflict in both the weak and strong matrix organizations? When is a project considered closed? Time Questions What is the critical path? What is crashing? What is fast tracking? How does resource leveling work? What is activity duration estimating? What is a dummy activity? What is slack or float? Free float? What is lag? The longest path through the network which represents the shortest amount of time in which the project can be completed. and up-to-date schedules and status reports. total cost of ownership Contract Closure includes an audit. It provides a repository for project artifacts.Rajesh Communications Questions What is a project "war room"? What is its primary benefit? Describe the six parts of a Communications Management Plan. What is variance analysis? What are six actions project managers should take to ensure effective project team communications? A single location for the team to get together for any purpose. generally increases cost. (1) Be an effective communicator (2) Be a communications expeditor (3) Avoid communications blockers (4) Use a tight matrix (5) Have a project war room (6) Make meetings effective The project's organizational structure Ambiguous jurisdictions. may result in rework and increased risk. logical relationships are modified By using positive float available on non-critical paths. Compressing the schedule by overlapping activities that would normally be done in sequence. Free float is the amount of time an activity can be delayed without delaying the early start of the next activity Required waiting time between activities Cost Questions What is life cycle costing? Which of the following includes an audit. It gives an identity to the project team. Page 44 of 46 Last Updated 12/19/07 .

An inventory control approach that attempts to reduce work -in-process inventory (Decreasing Inventory cost to 0). It has no value. Risk is highest during Initiation and Planning. corrective action can be taken. What is purpose of a risk management plan? What should it include? What is a reserve? Initiation What are the two most common types of management reserves? How are they used? When is the highest risk impact generally occur? Who is ultimately responsible for identifying and managing risk? You are finding it difficult to evaluate the exact cost consequences of risks. how contingency plans will be implemented. To document the procedures that should be used to manage risk throughout the project. external is beyond control or influence. It puts issues into an easily understood framework. Project manager Evaluate them on a qualitative basis. Giving the customer more than what was required. even though within control limits. there is no extra stock kept in reserve Cost of conformance and cost of nonconformance They show how various causes and sub causes relate to create potential problems. Assignable cause is a point outside the control limits Continuous improvement. A relatively small number (20%) of causes will typically produce a large majority (80%) of the problems or defects. how reserves will be allocated.Rajesh Risk Questions Generally speaking. To describe how the project management team will implement its quality policy A bar chart in which data are arranged in descending order of importance. A provision in the project plan to mitigate cost and/or schedule risk.PMI Exam Study Notes . (part of Risk Monitoring and Control) Add tasks to the WBS By applying a general contingency based on past experience Risk that can be identified as possibly happening (e. Small improvements in products or procedures to reduce costs and ensure consistency of performance of product or service. they should be investigated as an assignable cause. If seven or more observations in a row occur on the same side of the mean. Whenever sample size increases. It should include the risk identification and risk quantification. If a risk occurs and has a greater impact on the project than what was anticipated. the standard deviation decreases. Flood if a business is located in a flood zone) Quality Questions What are control limits as used in control charts? Define "kaizen"? What is gold-plating? What is the effect of sample size on the standard deviation? What is the Rule of Seven? Control limits describe the natural variation of a process. What is Just-In-Time? What is meant by the cost of quality? How are cause and effect diagrams used? What is the principal purpose of the Quality Management Plan? What is a Pareto Diagram? What is the underlying concept of a Pareto Diagram? Page 45 of 46 12/19/07 Last Updated .the Amount at Stake is high though risk has decreased. used to reduce the chance of overruns in either area During Implementation and Close-out . in what project phase are risk and opportunity greater than the amount at stake by the widest margin? Describe the difference between an internal risk and an external risk. You should: In what circumstance would you have to update the Risk Response Plan? What should be done after competing/updating the Risk Response Plan? How do you address unknown risks? What is a known-unknown risk? An internal risk is under the control or influence of the project team.g. Cost and Schedule. After these are identified. Management reserves are for “unknown unknowns” and contingency reserves are for “known unknowns”.

(2) determine option and (3) go to management or customer. Document project planning decisions regarding alternatives chosen 4. (1) Contact seller and ask what’s going on. Provide a baseline for progress measurement and project control Historical information STRATEGY FOR VARIOUS TYPES OF QUESTIONS: #1: “What has the project manager FORGOTTEN to do?” a) determine what process they are referring to b) determine if answer choices are/should be input/output/tools (activities) c) determine which input/output/tool the question is looking for d) select the one missing #2: “What is the BEST thing to do?” The correct answer should resolve the underlying problem. Usually cost effective Meetings with prospective sellers to ensure that they have a clear. positive and negative. Scope of Work. held before sellers prepare their proposals.g.g. Facilitate communications among stakeholders 5. but maintain a schedule baseline (baseline is there to determine how the project is progressing) 1. #5 Tip: Know problem solving processes (e. Guide the project execution 2. #3 “The project manager must be MOST careful to / Which is the MOST important?” The easiest way to deal with these questions is to look for the choice that will have the highest impact on the project. pick the one that answer the question. It is best to rely on ?? to improve your chances of success? Project team Refers to the Triple Constraints : Cost.) Page 46 of 46 12/19/07 Last Updated . common understanding of the procurement.Rajesh Who is ultimately responsible for quality? Procurement Questions What is make or buy analysis? What are contract incentives? The individual. Document project planning assumption 3. general provision. along with customer satisfaction and scope of work. special provisions (which takes precedence over general provisions) Take action. Time. #4 Tip: However accurate answer choice are. for a change: (1) Evaluate impact of the change with the team. what should a project manager do? What is the purpose of a Project Plan? A technique used to determine whether a product can be produced cost effectively by the organization. (2) let seller know he is in default (e. Define key management review 6. You are a new project manager. The project manager has overall responsibility. What is a bidder's conference? What is part of the contract document? What do you do if a seller does not perform according to the contract? Integration Questions Lessons learned are completed by? What are the major constraints on a project? When many changes are made to a project. Terms and Conditions (which should be the result of a risk analysis). Inducements provided by the buyer to the contractor in an attempt to ring the objectives and interests of the contractor in line with those of the buyer. Proposal. Make change as needed. default letter). Quality.PMI Exam Study Notes .

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