MBA 742 - Project Management Professional Concepts Final Exam Terms Flashcards
1
Q
What is Product Scope?
A
The features and functions that characterize a product, service or result
2
Q
What is Project Scope?
A
The work performed to deliver a product, service, or result with the specified features and functions. This term is sometimes viewed as including product scope
3
Q
What is Scope Baseline?
A
The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison.
4
Q
What is WBS (Work Breakdown Structure)?
A
Work Breakdown Structure
5
Q
What is Scope Change?
A
Any change to the project scope. A change almost always requires an adjustment to the project cost or schedule.
6
Q
What is Scope Creep?
A
The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources.
7
Q
What is Scope Management Plan?
A
A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled, and verified.
8
Q
What is the Requirements Management Plan?
A
A component of the project or program management plan that describes how requirements will be defined, developed, monitored, controlled, and verified.
9
Q
What is Decomposition?
A
A technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts.
10
Q
What is the Requirements Traceability Matrix?
A
A grid that links product requirements from their origin to the deliverables that satisfy them.
11
Q
What are the major components of Project Scope Management?
A
The processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully
12
Q
True or False: Managing Project Scope includes determining what is AND what is NOT included in the project
A
TRUE
13
Q
What is gold plating?
A
This refers to when a project team delivers more than what is expected based on the product/project scope
14
Q
What are the steps in the Scope Management Process?
A
1) Plan Scope Management 2) Collect Requirements 3) Define Scope 4) Create WBS 5) Validate Scope 6) Control Scope
15
Q
What is the Plan Scope Management Process?
A
The process of creating a scope management plan that documents how the project scope will be: Defined, Validated and Controlled
16
Q
What are the Tools and Techniques in Planning Scope Management Process?
A
Expert Judgement
Data Analysis
Meetings
17
Q
What is the key benefit of the Plan Scope Management Process?
A
It provides direction on how to manage scope throughout the entire process
18
Q
What is the Collect Requirements Process?
A
The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives
19
Q
What is the key benefit of the Collect Requirements Process?
A
It provides a basis to define and manage project and product scope
20
Q
What is benchmarking?
A
The comparison of actual or planned practices, such as processes and operations, to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.
21
Q
What are context diagrams?
A
A visual depiction of the product scope showing a business system(process, showing a business system (process, equipment, computer system, etc.), and how people and other systems (actors) interact with it
22
Q
What are Observations (AKA “Shadowing”)?
A
A technique that provides a direct way of viewing individuals in their environment performing their jobs or tasks and carrying out processes
23
Q
What are Prototypes?
A
A method of obtaining early feedback on requirements by providing a working model of the expected product before actually building it
24
Q
What are questionnaires and surveys?
A
Written sets of questions designed to quickly accumulate information from a large number of respondents.
25
What are Requirements Documentation?
A description of how individual requirements meet the business need for the project.
26
What are Requirements Traceability Matrix?
A grid that links product requirements to their origin to the deliverables that satisfy them.
Requirements traceability can be further defined as the ability to describe and trace the life of a requirement, in both a forward and backward direction. This allows the project team to ensure that all original sources of the requirements are identified and that all the requirements have been used as part of the implementation.
27
What does Define Scope Process mean?
The process of developing a detailed description of the project and the product
28
What is the key benefit of the Define Scope Process?
It provides a clear account of what is in and out of scope for the project. A properly prepared project scope statement, once approved, serves as the basis for a common understanding of the project objectives and deliverables among all project stakeholders.
29
What is the Risk Register?
The risk register contains response strategies that may affect the project scope, such as reducing or changing project and product scope to avoid or mitigate a risk. We will be discussing risk and risk management in more detail in later modules.
30
What is Product Analysis?
For projects that have a product as a deliverable, product analysis is a tool to define scope that generally means asking questions about a product and forming answers to describe the use, characteristics, and other the relevant aspects of what is going to be manufactured.
31
What is Alternatives Generation?
A technique used to develop as many potential options as possible in order to identify different approaches to execute and perform the work of the project.
32
What are Facilitated Workshops?
An elicitation technique using focused sessions that bring key cross-functional stakeholders together to define product requirements.
33
What is Alternative Generations?
A technique used to aid in the Define Scope process including Alternative Analysis, Brainstorming, Nominal Group Technique, Mind Mapping
34
In the theme of Alternative Generation, what is Alternative Analysis?
A technique used to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project
35
In the theme of Alternative Generation, what is Brainstorming?
A general data gathering and creativity technique that can be used to identify risks, ideas, or solutions to issues by using a group of team members or subject matter experts.
36
In the theme of Alternative Generation, what is Nominal Group Technique?
A technique that enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or for prioritization.
37
In the theme of Alternative Generation, what is Mind Mapping?
Technique used to consolidate ideas created through individual brainstorming sessions into a single map to reflect commonality and differences in understanding and to generate new ideas.
38
What do we mean by Create WBS Process?
The Create WBS (Work Breakdown Structure) process is the process of subdividing project deliverables and project work into smaller, more manageable components
39
What does WBS stand for?
Work Breakdown Structure
40
What is the key benefit of the Create WBS process?
It provides a structured vision of what has to be delivered
41
What is the objective of creating a WBS?
To identify all required deliverables and work packages needed to complete the project. A work package is the work identified at the lowest level of the WBS for which cost and duration can be estimated and managed
42
What are the 5 Steps on Decomposition?
1) Gather information on major project deliverables (SOW)
2) Start development of the WBS at the highest level
3) Begin decomposing each of the higher WBS components into lowe level deliverables
4) Identify each work package and WBS components with a unique code (1, 2, 3)
5) Ensure that the WBS is at sufficient level to estimate from
43
What is a Control Account?
A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement. Each control account may include one or more work packages, but each of the work packages should be associated with only one control account
44
What is the Validate Scope Process?
The process of formalizing acceptance of the completed project deliverables
45
What is the key benefit of the Validate Scope Process?
Validating the deliverables increases the chance of final acceptance of the project
46
What are the Tools and Techniques of the Validate Scope Process?
Inspection
Decision Making (such as Voting)
47
True or False: In the Validate Scope process, the project manager also compares performance to
baselines and/or terms and conditions of a contract. The results will determine if the
project or phase should be accepted as complete or if corrective action is required
TRUE
48
What is Inspection in the context of the Validate Scope Process?
Examining or measuring to verify whether an activity, component, product, result, or service conforms to the specified requirements. Inspections might be conducted through formal reviews, audits, walk-throughs, etc.
49
What is the 'defects' list in the context of the Validate Scope Process?
A common method for recording incomplete or incorrect work. Often, this list then must be completed for the project or phase to be accepted
50
What is the Control Scope Process?
The process of monitoring the status of the project and product scope and managing changes to the scope baseline
51
What is the key benefit to the Control Scope process?
It allows the scope baseline to be maintained throughout the project
52
What is Variance Analysis?
A technique for determining the cause and degree of difference between the baseline and actual performance
53
What can we decipher from the Variance Analysis graph? **Enter the image here**
If you know what work should be complete now, and you can determine
what work has been completed now, any variance between the two is very useful information for many reasons
54
What is Scope Creep?
The uncontrolled expansion to product or project scope without adjustments to Time/Schedule, Cost/Budget, and resources
55
What are the impacts of Scope Creep?
Impact to Time/Schedule, Cost/Budget, and resources without adjusting those constraints may impact quality and risk (typically negatively as you would expect).
56
What is an Activity List?
A documented tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope of work description so project team members understand what work is to be performed.
57
What are Activity Attributes?
Multiple attributes associated with each schedule activity that can be included within the activity list. Activity attributes include activity codes, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions.
58
What is a Milestone List?
A list identifying all project milestones and normally indicates whether the milestone is mandatory or optional
59
What is a Mandatory Dependency?
AKA Hard Logic - A relationship that is contractually required or inherent in the nature of the work
60
What is a Discretionary Dependency?
AKA Preferred or Soft Logic - A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired
61
What is an Internal Dependency?
Internal dependencies involve a precedence relationship between project activities and are generally inside the project teams control
62
What is an External Dependency?
External dependencies involve a relationship between project activities and non-project activities. These dependencies are usually outside of the teams control
63
What are Logical Relationships?
A dependency between two activities, or between an activity and a milestone
64
What is lag time?
The amount of time whereby a successor activity is required to be delayed with respect to a predecessor activity
65
What is lead time?
The amount of time whereby a successor activity can be advanced with respect to a predecessor activity
66
What is predecessor Activity?
An activity that logically comes before a dependent activity in a schedule
67
What is successor activity?
A dependent activity that logically comes after another activity in a schedule.
68
What is Plan Schedule Management?
The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing and controlling the project schedule
69
What is the key benefit of the Plan Schedule Management process?
It provides guidance on how the schedule will be managed
70
What is the schedule management plan?
A component of the project management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule.
71
What is the Define Activities Process?
The process of identifying and documenting the specific actions to be performed to produce the project deliverables
72
What is the key benefit of the define activities process?
It breaks down the work packages in the WBS into specific activities
73
What are Activity Attributes in the context of the Define Activities Process?
Multiple attributes associated with each schedule activity that can be included within the activity list.
Activity attributes include activity codes, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions.
74
What are Activity Lists in the context of the Define Activities Process?
A documented tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope of work description so project team members understand what work is to be performed.
75
What is a Milestone List in the context of the Define Activities Process?
A list identifying all project milestones and normally indicates whether the milestone is mandatory or optional.
76
What is a Milestone in the context of the Define Activities Process?
A significant point or event in a project, program, or portfolio. For example, when building a house, the completion of the foundation work could be considered a project Milestone. It has several distinct activities that need to be performed/delivered (for example, purchasing the materials, excavating and preparing the foundation site, pouring the concrete, waterproofing and finishing the concrete, etc.), but these distinct activities form a larger logical unit of deliverable work; a Milestone.
77
What is Rolling Wave Planning in the context of the Define Activities Process?
An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while work further out in the future is planned at a higher level. As that further out work gets closer, it is then planned in detail
78
What is Decomposition in the context of Define Activities Process?
Each of the resulting work packages is decomposed into the specific activities required to produce the work package deliverables
79
What is the Sequence Activities Process?
The process of identifying and documenting relationships among the project activities
80
What is the key benefit of the sequence activities process?
It defines the logical sequence of work
81
What is the PDM (Precedence Diagramming Method)?
A technique used for constructing a schedule model in which activities are represented by nodes and are graphically
linked by one or more logical relationships to show the sequence in which the activities are to be performed.
82
What is Dependency Determination?
A technique used to identify a type of dependency that is used to create the logical relationships between predecessor or successor activities
83
What is a Project Schedule Network Diagram?
A graphical representation of the logical relationships among the project schedule activities. This diagram is the result of the precedence diagramming effort and is an output of the Sequence Activities process
A schedule network diagram can be thought of as a flowchart that shows the order and relationships between the work that must be performed, and the Precedence Diagramming Method (PDM) is the technique used to develop this schedule network diagram.
84
What is a Precedence Relationship?
The term used in the precedence diagramming method for a logical relationship. In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably, regardless of the diagramming method used. See also logical relationship
85
What are the 4 different precedence relationships?
1) Finish-to-start (FS)
2) Finish-to-finish (FF)
3) Start-to-Start (SS)
4) Start-to-Finish (SF)
86
Regarding precedence relationships: what is Finish-to-Start?
A logical relationship in which a successor activity cannot start until a predecessor activity has finished.
87
Regarding precedence relationships: what is Finish-to-Finish?
A logical relationship in which a successor activity cannot finish until a predecessor activity has finished.
88
Regarding precedence relationships: what is Start-to-Start?
A logical relationship in which a successor activity cannot start until a predecessor activity has started.
89
Regarding precedence relationships: what is Start-to-Finish?
A logical relationship in which a successor activity cannot finish until a predecessor activity has started.
90
What is the most commonly used of the four different precedence relationships?
Finish-to-start
91
What is the least commonly used of the four different precedence relationships?
Start-to-finish
92
What is Estimate Activity Duration Process?
The process of estimating the number of work periods needed to complete individual activities with estimated resources
93
What is the key benefit of the Estimate Activity Durations process?
It provides the time each activity will take to complete?
94
What is bottom up estimating?
A method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS).
95
What are activity resource requirements?
The types and quantities of resources required for each activity in a work package.
96
What is Analogous Estimating?
A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.
97
What is Parametric Estimating?
An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters
98
What is Effort in the context of Analogous and
Parametric Estimating?
The number of labor units required to complete a schedule activity or work breakdown structure component, often expressed in hours, days, or weeks.
99
What is Duration in the context of Analogous and
Parametric Estimating?
The total number of work periods (not including holidays or other non working periods) required to complete a schedule activity or work breakdown structure component. Usually expressed as workdays or workweeks.
100
Why is it important to understand the difference between effort and duration when determining schedule estimates?
It is important to understand the difference between effort and duration to understand how the different types of estimating help in determining schedule estimates:
101
What is Three Point Estimating?
A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.
102
What are the two types of Three Point Estimating?
PERT and Triangular Distribution
103
What is PERT (Three Point Estimating Type)?
A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.
4x most likely +
1x optimistic +
1x pessimistic
All divided by 6
104
What is Triangular Distribution (Three Point Estimating Type)?
The more simple of the two types, here the most likely, optimistic and pessimistic estimate are simply summed and result is divided by 3.
105
What are the 3 values individually estimated in Three Point Estimating?
Most likely (m), Optimistic (o), and Pessimistic (p)
106
What does the Most Likely estimating technique mean in regards to the Three Point Estimating Type?
An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance. This is sometimes also called the best guess (BG) estimate
107
What does the optimistic estimating technique mean in regards to the Three Point Estimating Type?
An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance. This estimate considers what the estimate might be if positive factors do occur
108
What does the pessimistic estimating technique mean in regards to the Three Point Estimating Type?
An estimate of the longest activity duration that takes into account all of the known variables that could affect performance. This estimate considers what the estimate might be if negative factors do occur.
109
What is Develop Schedule Process?
The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule module.
110
What is the key benefit of the Develop Schedule Process?
It generates planned dates for completing project activities.
111
What is Schedule Network Analysis?
The techniques of identifying early and late start dates, as well as early and late finish dates, for the incompleted portions of project schedule activities
112
What is Critical Path in the Schedule Network Analysis?
The sequence of activities that represents the longest path through the project, which determines the shortest possible duration.
113
What is Critical Path Method (CPM) in the Schedule Network Analysis?
A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule module.
114
What is Critical Chain Method (CCM) in the Schedule Network Analysis?
A schedule method that allows the project team to place buffers on any limited resources and project uncertainties.
115
Why go forward and backwards pass to determine critical path?
In order to determine the project’s critical path, it is necessary to perform a forward pass and a backward pass through the network. The forward pass will identify the early-start and early finish times, and the backward pass will identify the late-start and late-finish times.
116
What is the forward pass in the Critical Path Method?
A critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the project start date or a given point in time.
117
What is the backwards pass in the Critical Path Method?
A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date
118
What is the Early Start (ES) in the Critical Path Method?
The earliest date the activity can start
119
What is the Early Finish (EF) in the Critical Path Method?
The earliest date the activity can finish
120
What is the Late Finish (LF) in the Critical Path Method?
Latest date that the activity can finish without causing a delay to the project completion date.
121
What is the Late Start (LS) in the Critical Path Method?
Latest date that the activity can start without causing a delay to the project completion date
122
What is Free Float in the Critical Path Method?
The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint
123
What is Total Float in the Critical Path Method?
The amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint
124
What is a Critical Activity in the Critical Path Method?
Any activity in the schedule that does not possess any float; Total Float = 0
125
What does the Critical Path Method calculate?
The amount of scheduling flexibility that exists based on the parameters and known constraints entered into the model
126
What does the Critical Chain Method calculate?
A schedule method that allows the project team to palce buffers on any project scheudle path to account for limited resources and project uncertainties. Developed from CPM and considers the effects of resource allocation, resource optimization, resource leveling and activity duration uncertainty on the criticla path determined
127
What commonly causes a project to slip (in Critical Chain Method)?
The unavailability of "critical" resources
128
What is Resource Leveling?
A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply
129
What is a "what-if scenario analysis" in context of modeling technique?
The process of evaluating scenarios in order to predict ttheir effect on project objectives.
130
What is a "Simulation" in context of modeling technique?
Uses a project model that ttranslates the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project. Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level, and are typically performed using Monte Carlo analysis.
131
What is a "Monte Carlo Simulation" in context of modeling technique?
A process which generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole.
132
What is Crashing in context of Schedule Compression?
A technique used to shorten the schedule duration for the least incremental cost by adding resources (Ex: Adding Resources, Overtime)
133
What is Fast Tracking in context of Schedule Compression?
A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. (Ex: Discretionary dependencies, soft logic)
134
What is Reserve in context of Schedule Compression?
A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier(e.g., management reserve, contingency reserve) to provide further detail on what types of risks are meant to be mitigated.
135
What is a Gantt chart?
A horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project.
136
What is the Control Schedule Process?
The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan.
137
What is the key benefit of the Control Schedule Process?
Recognizing deviation from the plan so as to have ability to take appropriate action
138
What are performance reviews in context of Control Schedule Process?
A technique that is used to measure, compare, analyze actual performance of work in progress on the project against the baseline
139
What is a scheduling tool in context of Control Schedule Process?
A tool that provides schedule component names, definitions, structural relationships, and formats that support the application of a scheduling method.
140
What are work performance measurements in context of Control Schedule Process?
These are the “calculated schedule variance (SV) and the schedule performance index (SPI).”
141
What are scheudle forecasts in context of Control Schedule Process?
These are the “potential schedule changes based on the current schedule baseline”
142
What are project plan updates in context of Control Schedule Process?
These may include, but are not limited to, the “schedule baseline, schedule management plan, or cost baseline.
143
What are project document updates in context of Control Schedule Process?
These include, but are not limited to, “a revised network diagram and/or schedule.”
144
What are organizational process assets in context of Control Schedule Process?
Items that could be updated might include, but are not limited to, “causes of variances documents, corrective actions and rationales, and lessons learned.
145
What is Cost Aggregation?
Summing the lower-level cost estimates associated with the various work packages for a given level within the project's WBS or for a given cost control account
146
What is Analogous Estimating?
A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.
147
What is Parametric Estimating?
An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters.
148
What is bottom up estimating?
A method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS).
149
What is an S-Curve?
A display of cumulative costs, labor hours or other quantities plotted against time. The name derives from the S-like shape of the curve, flatter at the beginning and end and steeper in the middle, which is typical of most projects. The beginning represents a slow, deliberate but accelerating start, while the end represents a deceleration as the work runs out.
150
What is Cost Baseline?
The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results.
151
What is Earned Value Management?
A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.
152
What does Project Cost Management include?
The processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
153
What is Plan Cost Management Process?
The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
154
What is Cost Management Plan?
A component of a project or program management plan that describes how costs will be planned, structured, and controlled.
155
What is Estimate Cost Process?
The process of developing an approximation of the monetary resources needed to complete project activities.
156
What is the key benefit of the Estimate Cost Process?
It determines the amount of cost required to complete project work.
157
What are a handful examples of types of costs?
Direct Costs, Labor, Material, Equipment, Subcontractors, Indirect Costs, Supervision, Engineering, Training, Taxes, Temporary Facilities, Contingency Costs, Inflation Allowance, Risk Factors
158
What are Three Point Estimates?
Estimating Type that features:
Are used when there is uncertainty assocaited with an estimate
Take the optimistic, pessimistic, and most likely estimate to derive an expected cost
159
What is the Determine Budget Process?
The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
160
What is the key benefit of the Determine Budget Process?
Having identified all the costs needed to complete the project.
161
What is Cost Aggregation?
Summing the lower-level cost estimates associated with the various work packages for a given level within the project’s WBS or for a given cost control account
162
What is Reserve?
A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier(e.g., management reserve, contingency reserve) to provide further detail on what types of risks are meant to be mitigated.
163
What is Contingency Reserve?
Budget within the cost baseline or performance measurement baseline that is allocated for identified risks that are accepted and for which contingent or mitigated responses are developed
164
What is Management Reserve?
An amount of project budget withheld for management control purposes. These are budgets reserved for unforeseen work that is within scope of the project. The management reserve is not included in the performance measurement baseline.
165
What is Reserve Analysis?
An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project.
166
What are Risk reserves determined by?
Rule of Thumb
Risk Analysis
Lessons learned
Historical Information
167
What is the difference between Contingency Reserve and Management Reserve?
Contingency Reserve are reserves put in place for things that the team knows will happen. These are known unknowns
Management Reserves are reserves put in place for things that might come up that the team hasn't thought of. These are unknown unknonws and referred to as padding.
168
Budget Outputs Chart
169
What is Actual Cost (AC)?
The realized cost incurred for the work performed on an activity during a specific time period
170
What is Budget at Completion (BAC)?
The sum of all budgets establishedfor the work to be performed. This is the total budget for the project
171
What are Project Life Cycle Costs?
These costs consider all costs of the temporary endeavor (the project) whereas Product life cycle costs consider all projects supporting the product and may include operational expenses as well
172
What are Product Lify Cycle Costs?
These costs consider all projects supporting the product and may include operational expenses as well
173
What is the Product Life-Cycle Cost Analysis?
Ask a number of questions like: what are the doownstream implications for maintaining the projects product in production or operation? Attempting to reduce temporary effort or project by using shortcuts now may have significant impacts later
174
What is the Control Costs Process?
The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
175
What are the Cost Control Basics?
Establish cost performance thresholds.
Monitor cost performance for variances.
Bring expected costs within acceptable limits.
Accurately record changes to the baseline.
Guard against improper changes to the baseline
Inform stakeholders of changes.
176
What is the key benefit of the Control Costs Process?
Provides the means to recognize variance from the plan
177
What is the To-Complete-Performance-Index? (TCPI)
A measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget.
178
What are the 3 common variance thresholds described in the notes?
0-5% variance is acceptable
5-10% variance is a warning
Greater than 10% is unacceptable
The project manager should monitor planned vs. actual expenditures for the work that was accomplished. If the variance trend is deteriorating, the team should take preventative action to keep the variance from passing the threshold limit. If the variance is outside the threshold limit, the team should take corrective action to bring it back to acceptable p
179
What are the steps to problem solve when a variance is outside an acceptable threshold?
1. Describe the problem and it’s setting.
2. Set objectives.
3. Identify the root cause.
4. Identify potential solutions.
5. Decide on the solution.
6. Implement the solution.
7. Monitor and adjust.
180
What is Earned Value Management? (EVM)
A technique used to integrate, measure, and report project performance for the project’s scope, schedule, and resources. This technique allows the project manager to relate schedule cost, and scope using specific mathematical formulas that, when used in calculations, will indicate where variances to the plan exist and where corrective action may be required.
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What are the two questions EVM tries to answer?
1) Where are we today AND
2) Where will we end up?
The more frequently you address these two questions, the easier it will be to take the necessary corrective actions. Variance from a baseline are easier to manage when the variances are small and detected early
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What is a Forecast?
An estimate or prediction of conditions and events in the project's future based on information and knowledge available at the time of the forecast. The information is based on the project's past performance and expected future performance, and includes information that could impact the project in the future, such as estimate at completion and estimate to complete.
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What is EAC (Estimate at Completion)?
The expected total cost of completing all project work.
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What is ETC (Estimate to Complete)?
The expected cost to finish all the remaining project work.
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What is TCPI (To-Complete Performance Index)?
A measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget.
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What is VAC (Variance at Completion)?
A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion.
