All Categories Except ITTO and Calculations Flashcards
All opinions are formed by one component. A great engineer doesn’t always make a great project manager.
Halo Effect
A positive risk that a project wants to take advantage of
Exploit
The amount of an opportunity that is given up.Consider: Project A is worth $55,000 and Project B is worth $89,000, you’d choose Project B to do. The opportunity is $55,000—the amount of Project A that you can’t do because of the opportunity of Project B.
Opportunity cost
Qualifying the risks for their legitimacy. This is a very quick, subjective approach.
Qualitative analysis
How much is the Present Value (PV) worth in the future?FV=PV(1+i)n where:FV is the value to be determinedPV is the current investmenti is the interest raten is the number of time periods
Future Value(FV)
like a run chart, but it instead tracks the relationship between two variables. The two variables are considered related the closer they track against a diagonal line. Consider the relationship of costs and schedule
Scatter Diagram
Projects are chartered to give theproject manager the authority toact on behalf of the project sponsoror customer.Projects are chartered to solve aproblem or seize an opportunity.
Project Purpose
Vendors all meet with the buyer to discuss the detailsof the statement of work so they may prepare a bid, quote, or proposal.
Bidder conference
The project manager has the authority to discipline the project team members. This is also known as “penalty power.”
Coercive
The project manager has been assigned by senior management and is in charge of the project. Also known as positional power
Formal
Both parties work together for the good of the project in a spirit of problem solving. Also known as confronting. This is a win-win solution
Problem Solving
These are grids to plot out stakeholder power, influence, and interest in the project. Here are four common models:
Stakeholder classification models
Early planning estimate and/or top-down approach.Range of variance is -10% to +25% forthe project completion.
Budget estimate
the pitch, tone, inflection of the speaker that affects the content of the message
Paralingual
An amount of funds used to offset a project’s risks
Contingency fund
N(N-1)/2, where N represents the number of stakeholders
Communication Channels Formula
defines all of the project deliverables, resources, cost and time estimates, and associated information for each work package
WBS Dictionary
watching the speaker’s body language, interpreting paralingual clues, asking questions for clarity, and offering feedback
Effective Listening
Quantifies the risk exposure based on evidence, research, and in-depth analysis of the risk events.
Quantitative analysis
The risk may be small so the risk may be accepted.
Acceptance
This relationship means Task A must complete before Task B does. Ideally, two tasks must finish at exactly the same time, but this is not always the case.
Finish-to-finish (FF)
Requires a WBS and accounts for each work package
Bottom-up
What percentage of communication is non-verbal?
55%
Activities are moved closer together or even overlap (negative time).
Lead
Uses a parameter (cost per ton, cost per unit) for the estimate.
Parametric
Costs that are directly tied to the project.
Direct costs
Thory that we have five needs; we’re on a quest to satisfy these needs. The needs are, from the bottom up: 1. Physiological. We need air, food, clothing, and shelter. 2. Safety. We need safety and security. 3. Social. We need friends, approval, and love. 4. Esteem. We need respect, appreciation, and approval. 5. Self-actualization. We need personal growth, knowledge, and fulfillment.
Maslow’s Hierarchy of Needs
the addition of small, undocumented changes that bypass the scope change control system. Scope creep is sometimes called project poison.
Scope Creep
Management’s perspective of employees. X people are bad, lazy, and need to be micromanaged. Y people are self-directed. Most managers have X and Y attributes.
McGregor’s X and Y
Risk is with the buyer as the buyer pays for cost overruns.
Cost reimbursable contracts
Condition, event, or warning sign that a risk is about to happen. Usually “triggers” a risk response
Triggers
Workers do well if motivated. This provides participative management, familial work environment, and lifelong employment. Known as Japanese Management Style.
Ouchi’s Theory Z
A risk response creates another risk.
Secondary risks
Needs are acquired over time and are shaped by life experiences. Our needs are categorized as achievement, affiliation, and power. McClelland used a Thematic Apperception Test (TAT) to determine an individual’s needs.
McClelland’s Theory of Needs
Risks with a negative impact.
Negative risks
A person’s or organization’s willingness to accept risk.Relative to the project priority as high-priority projects are typically risk adverse. Also known as risk tolerance.
Utility function
defines who needs what information, when they need it, and in the specified modality
Communications Management Plan
Complex formulas to determine aproject’s worthiness to be selected.Examples include:• Linear programming• Nonlinear programming• Integer algorithms• Dynamic programming• Multiobjective programming
Constrained Optimization Methods
monies that have been invested into a project. Sunk costs are gone, they are “sunk” into a project.
Sunk costs
A unilateral form of a contract.
Purchase order
Messages are __________
Transmitted
A vertical bar chart that creates a graphic display of events (such as causes of defects or types of defects) in descending order. The objective is to rank problems based on the frequency of occurrence to determine the order in which to resolve them.
Pareto diagrams
The project manager has the authority to reward the project team
Reward
What 5 activities in the WBS needed for?
- Defining project activities2. Cost estimating3. Cost budgeting4. Identifying the project risks5. Qualitative risk analysis
The project team personally knows the project manager. Referent can also mean the project manager refers to the person who assigned him the position.
Referent
classifies stakeholders based onpower, urgency, and legitimacy for the project
Salience model
Used to identify the root causes or contributors to a problem, error, or defect. The problem statement is the effect and the possible contributing factors are the causes. For example, a failure in a system integration test could be due toImproper codingUnskilled coderInappropriate environmentInappropriate test scriptInsufficient bandwidthThe preceding are just a few examples. And each cause can be further explored for a more elaborate cause-and-effect diagram, also known as a “fishbone” diagram (because when drawn, it looks like a fish) or an “Ishikawa” diagram (named for the person who developed it).
Cause and effect diagram
Generally short-term purchase used as a stopgap or emergency response.
Letter contract
A positive risk that can be shared with the organization or other projects
Share
the process of adding extra features to drive up costs and consume the budget
Gold Plating
PM has little authority.• Organization is structured bydepartments or functions (sales,manufacturing, IT, etc.).• PM may be called a projectcoordinator or expediter.• The functional manager has all of the authority.• Focus is on completing the project work along with day-to-day work.• PM is part-time and has part-time administrative staffing.
Functional
deliverables-orienteddecomposition of the project scope
WBS
Individuals allow their work to consume all of their time. Work will expand to fill the amount of time allotted to it.
Parkinson’s Law
An expense that can be shared with other projects or the organization, such as rent, phone, or equipment.
Indirect costs
Creates an analogy between projects; also known as a top down estimate
Analogous
There are hygiene agents and motivating agents. Hygiene agents are expectations for employment: paycheck, insurance, safe working environment. Motivating agents are motivators for employees such as bonuses, career advancement, opportunity to grow. Hygiene agents will not motivate, but their absence will de-motivate.
Herzberg’s Theory of Motivation
Simple, early estimate. Range of variance is -25% to +75% for the project completion.
Rough order of magnitude
an accounting system to track project costs by category (labor, specific materials, contractor rates). A project’s chart of accounts works with the organization’s chart of accounts for specific deliverables, work, and/or materials
Chart of Accounts
The amount of time an activity can be delayed without delaying the next activity’s start date
Free float
This network diagramming approach is based on the availability of project resources todetermine project completion. It is more accurate than the traditional network diagram, but is more complex to create.
Critical chain
Most accurate estimate, but takes longest tocomplete; uses the bottom-upapproach. Range of variance is -5% to+10% for the project completion.
Definitive estimate
This relationship means Task A must start before TaskB can start. This relationship allows both activities to happen in tandem.
Start-to-start (SS)
Waiting time between activities (positive time).
Lag
One party quickly forces their solution over another. Often done by seniority. This is a win-lose solution.
Forcing
numbering system to identify the deliverables down to the work package within a WBS. The PMBOK® Guide uses a type of code of accounts: 5.3.3.2
Code of Accounts
Net Present Value This formula finds the presentvalue on the project for each year the project promises a return:1. Each time period’s promised return is calculated into present value.2. Sum all of the time periods’ present value.3. Subtract the project’s original investment from the sum.4. An NPV greater than one is good, less than one is bad.
Net Present Value
Shows on a bar graph which factors are more significant
Pareto Chart
based on a previous project and this is a called
WBS Template or WBT
Reduce the probability or impact of the risk event
Mitigation
• PM has less power than functional managers.• Internal competition may increasefor resources.• Project team members are on multiple projects.• PM is part-time and has part-time administrative staffing.
Weak Matrix
Documents stakeholder identification, assessment of influence, and stakeholder type.
Stakeholder register
• PM and functional managers balance power.• Power struggles are common. Internal competition may increasefor resources.• Project team members are on multiple projects.• PM is full-time and has part-time administrative staffing.
Balanced Matrix
Only offers a negative impact (injury, fire, theft, destruction).
Pure risk
This relationship means Task A must completebefore Task B can begin. This is the most common relationship.
Finish-to-start (FS)
Buyer pays for the time and materials of the vendor. Must have a not-to-exceed (NTE) clause.
Time and materials contract
One party leaves the discussion. This is a yield-lose solution.
Withdrawl (Avoidance)
Adding resources to reduce the project duration. This adds costs to the project
Crashing
A graphic display of process data over time and against established control limits, and that has a centerline that assists in detecting a trend of plotted values toward either control limit.
Control Chart
The ownership of the risk is transferred to some other party, usually for a fee
Transference
A response that ensures that a positive risk will likely happen
Enhance
category or rank given to entities having the same functional use but different technical characteristics
Grade
People behave based on what they believe (expect) their behavior to bring them.
Vroom’s Expectancy Theory
This is a three-step process of identifying the project stakeholders early in the project, identify the impact/support of each stakeholder, and then plan how to influence stakeholders to act in given situations
Stakeholder analysis
participating in the conversation through verbal and nonverbal signs of message receipt
Active Listening
An opportunity to delay an activity. Also called slack
Float
An offer and consideration. Contracts are backed by the court system
Contracts
A constant “fixed” cost throughout the project
Fixed costs
The differences of the problem are downplayed. This is a delay and is a lose-lose solution
Smoothing
inspection-driven process to keep mistakes from entering the customers’ hands
Quality Control
Both parties give up something, often in a heated scenario. This is a lose-lose solution.
Compromising
• PM has strong authority.• Typical full-time resources from functional departments.• Internal competition may increasefor resources.• Project team members are on multiple projects.• PM is full-time and has full-time administrative staffing.
Strong Matrix
This relationship is unusual and is rarely used. It requires Task A to start so that Task B may finish. It is also known as just-in-time (JIT) scheduling.
Start-to-finish (SF)
Graphs pairs of numerical data, one variable on each axis, to look for a relationship.
Scatter Diagram
The cost of the deliverable, service, or materials canfluctuate based on varying factors
Variable costs
prevention-driven process to do the project work right the first time.
Quality Assurance
Can help you see the relationship between the process steps. You can use this information to optimize the process and to see where problems and defects can occur. Useful in process improvement projects or to document any process.
Flowcharts
Used to ensure that a series of steps are followed consistently. Can be used to organize data around a quality problem. For example, you can tally the number of times that a specific cause is the source of a defect, and then use that when creating a histogram or Pareto chart to prioritize quality problems.
Checksheets
Allows project phases to overlap to reduce theproject duration. This adds risk to the project
Fast tracking
Risks that can offer an upside or a downside (both positive and/or negative impacts). Investing in a project is a business risk.
Business risk
A vertical bar chart (like the Pareto diagram), but a is arranged to show the shape of distribution of an event: for example, the shape of distribution of calls coming into a call center. It can show the spread of results (dispersion) and the median (or mean or mode).
Histograms
A risk response may create small generally accepted risks
Residual risk
The buyer tells the vendor they intend to do business with them; not a binding agreement.
Letter of intent
The amount of time an activity can be delayed without delaying the project’s end date
Total float
• PM has the most authority.• Team is typically assigned to the project full-time.• Competition between teams may hurt the organization.• Team is uncertain of future work after the project is completed.• PM is full-time and hasfull-time administrative staffing.
Projectized
The authority of the project manager comes from experience with the technology the project focuses on
Expert
comprised of the project scope statement, the WBS, and the WBS Dictionary
Scope Baseline
Knowledge is __________
Transferred
conformance to requirements and a fitness for use. It is fulfilling the project scope.
Quality
Risk is with the seller as seller pays for cost overruns
Fixed-price (lump-sum contracts)
How much will a future value be worth in today’s dollars?PV=FV/(1+i)n where:PV is the value to be determinedFV is the promised return oninvestmenti is the interest raten is the number of time periods
Present Value
Also known as weighted scoring models, these use a common set of values to “score” each project’s worthiness.
Scoring Models
This model compares benefitsto costs. Consider a BCR of 4:1versus another project of 2:5.
Benefit-Cost Ratios (BCRs)
Risks with a positive impact
Positive risk
