Planning Process Group Flashcards
1
Q
Define the Planning Process Group
A
the processes necessary to establish the total scope of the effort, define and refine the objectives and develop a course of action to obtain those objectives
2
Q
___________ are set as part of the planning process group
A
Baselines
3
Q
Planning is an __________ process and may require revisiting one or both of the initiating processes
A
iterative
4
Q
Output of Develop Project Management Plan (4.2)
A
Project Management Plan; details HOW the PM team will manage the project; HOW the work will be executed; HOW changes will be monitored and tracked; HOW the project will be closed
5
Q
What are the (24) processes in the Planning process group?
A
(4. 2) Develop Project Management Plan
(5. 1) Plan Scope Management
(5. 2) Collect Requirements
(5. 3) Define Scope
(5. 4) Create WBS
(6. 1) Plan Schedule Management
(6. 2) Define Activities
(6. 3) Sequence Activities
(6. 4) Estimate Activity Durations
(6. 5) Develop Schedule
(7. 1) Plan Cost Management
(7. 2) Estimate Costs
(7. 3) Determine Budget
(8. 1) Plan Quality Management
(9. 1) Plan Resource Management
(9. 2) Estimate Activity Management
(10. 1) Plan Communications Management
(11. 1) Plan Risk Management
(11. 2) Identify Risks
(11. 3) Perform Quantitative Risk Analysis
(11. 4) Perform Qualitative Risk Analysis
(11. 5) Plan Risk Response
(12. 1) Plan Procurement Management
(13. 2) Plan Stakeholder Engagement
6
Q
Who should sign the project management plan?
A
project manager, the sponsor, the project team, and key stakeholders
7
Q
Key Project Management Plan Components
A
Change Management Plan; Configuration Management Plan; Performance measurement baseline; Development Approach
8
Q
Who or what determines the change control procedures set forth in the plan?
A
PM or OPA
9
Q
At what point in the project can we stop consulting the Project Management Plan?
A
After closing
10
Q
Can we make changes to the Project Management Plan without following the formal change control procedure?
A
when in draft/planning = yes
once baselined/signed = no
11
Q
At what point in the project should we have a fully completed project management plan?
A
end of the planning process group
12
Q
What is the objective of project scope management?
A
To ensure all required work is done and no unnecessary work is done (in scope vs out of scope)
13
Q
Project scope is measured against…
A
the project management plan
14
Q
Product scope is measured against…
A
the product requirements
15
Q
What are the inputs of plan scope management?
A
(1) Project charter
(2) Project management plan
16
Q
What are the outputs of plan scope management?
A
(1) Scope management plan; a document that describes how the scope will be defined, developed, monitored, controlled and verified.
(2) Requirements management plan; How requirements will be planned, tracked and report
17
Q
What are some data gathering techniques?
A
brainstorming, focus groups, benchmarking (comparison vs a standard), document analysis, observation/conversation
18
Q
Outputs of collect requirements (5.2)?
A
(1) Requirements documentation
(2) Requirements traceability matrix; links products back to business need, opportunity, goal, objective; project objectives, scope/WBS deliverables, product design, etc.
19
Q
What is define scope (5.3)?
A
The process of developing a detailed description of project and product
20
Q
What are the outputs of define scope (5.3)?
A
(1) Project Scope Statement: describes in detail the deliverables (product scope); sets forth constraints and assumptions along with how deliverables will be created (project scope)
(2) Project Documents updates
21
Q
What level of detail should be reflected in the scope statement?
A
In detail (very detailed)
22
Q
What is the difference between project scope and product scope?
A
How I am building it vs what I am building
23
Q
How does the scope statement differ from the Charter?
A
Level of detail associated with each document. Scope statement is very detailed while the charter is high level
24
Q
Define Create WBS
A
Process of subdividing (decomposing) the project deliverables and project work into smaller, more manageable components
25
What is the lowest level of a WBS?
work package
26
What is decomposition?
breaking project work and deliverables down into smaller, more manageable components
27
What are the outputs of create WBS (5.4)?
(1) Scope Baseline: Project Scope Statement, WBS, WBS Dictionary (companion document to WBS)
(2) Project Documents Updates: requirements document, assumption log
28
Define Control Account
Important Terminology for WBS!
A management control point where scope, budget, actual cost and schedules are integrated and compared to earned value for performance measurement. Two or more work packages can be assigned to a control account. Work packages will be assigned to a single control account.
29
Define planning package
Important Terminology for WBS!
WBS component below the control account and above the work package level, with known work content but without detailed schedule activities, especially useful in agile environments
30
Define work package
Important Terminology for WBS!
Work defined at the lowest level of the WBS, for which cost and duration can be estimated and managed
31
Define code of accounts
Important Terminology for WBS!
Any numbering scheme used to uniquely identify each component of the WBS
32
Define chart of accounts
Important Terminology for WBS!
list detailing all accounts used by the organization to identify areas of expenditures (not part of the WBS itself)
33
Define Project Schedule Management (6.0)
Processes required to manage timely completion of the project
34
What processes are within Project Schedule Management (6.0)?
```
Plan Schedule Management (6.1);
Define Activities (6.2);
Sequence Activities (6.3);
Estimate Activity Durations (6.4);
Develop Schedule (6.5);
Control Schedule (6.6)
```
35
Define Plan Schedule Management (6.1)
The process of establishing the policies, procedures and documentation for planning, developing, managing, executing and controlling the project schedule
36
Output of Plan Schedule Management (6.1)?
Schedule Management Plan
37
Define Define Activities (6.2)
The process of identifying and documenting the specific actions to be performed to product the project deliverables
38
What is the starting point of Define Activities
work package
39
What are two types of progressive elaboration?
rolling wave planning and prototypes
40
Outputs of Define Activities (6.2)?
(1) Activity List: detailed list of all activities that are required to complete the project (action words!...i.e. peel the potato)
(2) Activity attributes: detailed explanation of the activity
(3) Milestone List: a list of significant points or events in a project (usually aligns with the completion of a phase)
(4) Change requests: identified work not part of the initial baseline
(5) Project Management Plan Updates
41
What are (4) types of PDM relationships used in Sequence Activities (6.3)?
(1) Finish-to-start: A finishes before B starts (most common) (ex. finish system testing before starting end-user testing)
(2) Start-to-finish: A starts before B finishes (rarely used) (ex. new shift starts before previous shift can finish)
(3) Finish-to-finish: A finishes before B finishes (ex. installing electrical system and installing appliances could be ongoing at the same time, but electrical must finish before appliances)
(4) Start-to-start: A starts before B starts (ex. author writes first chapter of book before graphic designed can start adding illustrations)
42
What is a lead?
allows an acceleration of a successor activity
43
What is a lag?
delay
44
Project Management Information System (PMIS)
software tool used to build schedules
45
Outputs of Sequence Activities (6.3)?
(1) Project Schedule Network Diagrams: visual representation of the relationship between schedule activities
(2) Project documents updates: activity attributes, activity list, assumption log, milestone list
46
Define Estimate Activity Durations (6.4)
The process of estimating the number of work periods needed to complete each individual activity with the estimated resources
47
Define Effort
Important Terminology for Estimate Activity Duration!
The number of LABOR units required to finish an activity (may expressed as staff hours, days or wks)
48
Define Duration
Important Terminology for Estimate Activity Duration!
The number of work periods needed to complete an activity
49
Define law of diminishing returns
Important Terminology for Estimate Activity Duration!
a point will eventually be reached when adding one factor (resources) yields less (products)
50
What are some Tools and Techniques used to Estimate Activity Duration (6.3)
Analogous Estimating: top down; reference past project to estimate schedule; LEAST accurate, but FASTEST
Parametric Estimating: employs a statistical relationship using historical data and other variables; more accurate than analogous; = MATH
Three point estimating: Triangular Distribution
Bottom Up Estimating: aggregating estimates of lower-level components of the WBS; time consuming but MOST accurate
Data analysis:
51
What is the Triangular Distribution Formula?
[Optimistic + Most Likely + Pessi(1) Duration Estimates
| mistic]/3
52
What are the outputs of Estimate Activity Durations (6.4)?
(1) Duration Estimates
(2) Basis of Estimates
(3) Project Documents Updates
53
Define Develop Schedule (6.5)
The process of analyzing activity sequences, durations, resource requirements and schedule constraints to create the project schedule for project execution and control
54
Define Resource Leveling
FLEXIBILITY in the schedule; adjusts activity start/finish dates when resources have been over-allocated or certain resources are scarce; it often lets the schedule slip to level out resources and can cause the critical path to change
55
Define Resource Smoothing
NO FLEXIBILITY; adjusts activities such that the requirements do not exceed certain predefined resources limits. The schedule and/or the critical path cannot slip, so activities may only be delayed by a period of time equal to or less than their free and total float
56
Float formula
Late Finish - Early Finish
57
What are the three types of float?
Total float (slack); free float; project float
58
Define Total Float (slack)
the amount of time that a schedule activity can be delayed without delaying the project completion date. Total float is not added together; it is shared across the path
59
Define Free float
The amount of time that a schedule activity can be delayed without delaying the early start of any successor activity. This is calculated by subtracting the EF + 1 of the current activity from the ES of the earliest successor activity.
60
Define Project float
The amount of time a project can be delayed, without impacting the externally imposed project deadline set by the customer or management
61
What is crashing?
Adding resources to critical path tasks, which exchanges higher costs for shorter schedule duration
crashing = cashing
62
What is fast tracking?
Converts sequential activities to parallel, which primarily increases risk
63
Outputs of Develop Schedule (6.5)
(1) Schedule Baseline: accepted and approved version of the schedule
(2) Project Schedule
(3) Schedule Data
(4) Project calendars: identifies working days and shifts that are available for scheduled activities (don't confuse with resource calendar)
(5) Change requests
(6) Project Management Plan Updates: schedule baseline; schedule management plan
(7) Project Documents Updates
64
What are the processes of Project Cost Management (7.0)?
```
Plan Cost Management (7.1)
Estimate Costs (7.2)
Determine Budget (7.3)
Control Costs (7.4)
```
65
Define Plan Cost Management
The process of defining how project costs will be estimated, budgeted, managed, monitored, and controlled
66
Output of Plan Cost Management
Cost Management Plan
67
What are some of the data analysis techniques you might employ in planning cost management?
NPV
IRR
Return on Investment
Payback period
68
Define Estimate Costs (7.2)
The process of developing an approximation of the cost of resources needed to complete the project work
69
Define Fixed Costs
Expenses that are not dependent on the level of goods and services produced by the business. They tend to be time-related, such as rents paid per month
70
Define Variable costs
Expenses that change in proportion to the activity of a business.
71
Define Direct costs
A cost that can be directly related to producing specific goods or performing a specific service.
72
Define indirect costs
Costs that are not directly attributable to a particular object, such as heat and light (overhead)
73
Define Rough Order of Magnitude
-25% tot 75%
74
Define Definitive Estimate
-5% to 10%
75
Cost of Quality
Cost of Conformance: Prevention and appraisal costs
Cost of Non-conformance: internal and external failure costs
76
Three - point Estimating
(1) Triangular Distribution (simple average)
| 2) BETA Distribution (PERT
77
Triangular Estimation Formula
[Optimistic + Most Likely + Pessimistic]/3
78
BETA Distribution (PERT) Formula
[Optimistic + (4 x Most Likely) + Pessimistic]/6
79
+/- 3 sigma
99.73%
80
+/- 2 sigma
95.46%
81
+/- 1 sigma
68.26%
82
Activity Standard Deviation Formula
(Pessimistic-Optimistic)/6
83
Outputs of Estimate Costs (7.2)
(1) Cost Estimates
(2) Basis of Estimates
(3) Project Documents Updates
84
What is the purpose of standard deviation in estimating costs?
establishes confidence level by providing a range
85
Define Determine Budget Process
The process of aggregating all estimated costs of individual activities or work packaged to establish an authorized cost baseline
86
What is the difference between cost baseline and project budget?
management reserves
87
Outputs of Determine Budget (7.3)
(1) Cost Baseline
(2) Project Funding Requirements
(3) Project Documents Updates
88
What is the difference between the determine budget process and estimate costs process?
activity level; estimate costs focuses on the cost of resources while budget is the costs of the entire project
89
Define contingency reserves
IDENTIFIED RISKS; amounts set aside by PM to cover known risks and are included in the baselines (can take the form of time and money)
90
Define management reserves
UNIDENTIFIED RISKS; amount management sets aside to cover unknown risks and are not included in the baselines (can take the form of time and money)
91
Define reserve analysis
contingency reserves used to account for schedule or cost uncertainty (risks)
92
Processes of Project Quality Management
(8. 1) Plan Quality Management
(8. 2) Manage Quality; checks the processes - is the team following the plan?
(8. 3) Control Quality; checks the deliverable
93
Define Project Quality Management (8.0)
Processes that incorporate organizational quality policies, manage and control product and project quality to meet stakeholder objectives
94
Define Plan Quality Management (8.1)
The process of identifying quality requirements and/or standards for the project and its deliverables; documenting how the project will demonstrate compliance with quality requirements and/or standards
95
Define Six Sigma
Seeks to improve the quality of process outputs by IDENTIFYING AND REMOVING THE CAUSES OF DEFECTS AND MINIMIZING VARIABILITY IN MANUFACTURING AND BUSINESS PROCESSES.
96
Define Lean Six Sigma
A managerial concept that blends lean with six sigma to eliminate the seven kids of wastes to achieve a defect rate of 3.4 defects or less per million opportunities
97
What are the 7 kinds of waste in LSS?
```
(TIMWOOD)
Transportation
Inventory
Motion
Waiting
Overproduction
Over-processing
Defects
```
98
Methodology Approaches in LSS?
DMAIC (Define, Measure, Analyze, Improve, Control)
| DMADV (Define, Measure, Analyze, Design, Verify)
99
What is the Kanban method?
A method for managing knowledge work with an emphasis on JUST IN TIME (JIT) delivery (current work) while not overloading the team members (all of the work)
100
Four principles of the Kanban Method?
Visualize work, limit work in process, focus on flow and continuous improvement
101
Best Practices and Standards in Quality
ISO - International Organization for Standardization
BS - British Standard
CMMI - Capability Maturity Model Integration (AGILE)
102
What are the 5 Levels of CMMI?
Level 1: Initial - Processes unpredictable, poorly controlled and reactive (chaos, rely on people only)
Level 2: Managed - Processes characterized for projects and is often reactive (every project is different)
Level 3: Defined - Processes characterized for the organization and is proactive (projects can tailor processes)
Level 4: Quantitatively Managed - Processes are measured and controlled (variance analysis with actions)
Level 5: Optimizing - Focus on process environment
103
Five levels of effective quality management
(1) Let customers find defects: most expensive
(2) Detect and correct defects before deliverables are set to customer (quality control)
(3) Use quality assurance to examine and correct process itself
(4) Incorporate quality into planning and design
(5) Create a culture that is aware and committed to quality in processes and products
104
Define quality
the degree to which a set of inherent characteristics fulfill requirements
how well a product or service is made
105
Define grade
a category assigned to products or services having the same functional use but different technical characteristics
106
Plan-Do-Check-Act cycle
The basis for quality improvement as defined by Shewhart and modified by Deming
107
Cost of Conformance
$$ spent during project to avoid failures
108
Cost of Nonconformance
$$ spent during and after project because of failures
109
Cost of Quality is...
total cost of ownership....
...divided into two categories - cost of conformance and cost of nonconformance
cost of conformance = prevention costs + appraisal costs
cost of nonconformance = internal failure costs = external failure costs
110
What are the outputs of Plan Quality Management (8.1)
(1) Quality Management Plan: explains how the project team will implement the quality policy
(2) Quality Metrics: Describes a project attribute and how the control quality process will measure it
(3) Project Management Plan Updates: risk management plan, scope baseline
(4) Project Documents Update: stakeholder register, requirements traceability matrix, risk register, lessons learned register
111
What processes are included in Project Resource Management?
```
Plan Resource Management (9.1 - Planning);
Estimate Activity Resources (9.2 - P);
Acquire Resources (9.3 - E);
Develop Team (9.4 - E);
Manage Team (9.5 -E);
Control Resources (9.6 - M)
```
112
Define Plan Resource Management (9.1)
The process of identifying how to estimate, acquire, manage and use human and physical resources
113
Outputs of Plan Resource Management (9.1)
Resource Management Plan;
Team Charter;
Project Documents
114
What does the Team Charter contain?
Team's values, agreements and operational guidelines
115
What is the purpose of the Project Team Resource Management?
Plan for how to define, staff, manage and eventually release team members
116
Who should develop the team charter?
The team
117
Define Activity Resources
The process of estimating team resources and the type and quantities of material, equipment and supplies necessary to perform work
118
Outputs of Estimate Activity Resources
(1) Resources Requirements;
(2) Basis of Estimates;
(3) Resource Breakdown Structure: hierarchical breakdown by resource category;
(4) Project documents update
119
What type of resources will you be estimating for your projects?
labor, material, equipment, supplies
120
Define Projects Communications Management
Includes the processes necessary to ensure that the information needs of the project and its stakeholders are met through the development of artifacts
121
What processes are included in Project Communication Management?
```
Plan Communications Management (10.1 - P);
Manage Communications (10.3 - E);
Monitor Communications (10.4 - M)
```
122
What are a few examples of communication mechanisms?
Written; spoken,; formal or informal; gestures; media; choice of words
123
5C's of communication
Correct, Concise, Clear, Coherent, Controlling
124
Equation to calculate communication pathways
n(n-1)/2
125
Outputs of Plan Communications Management
(1) Communications Management Plan: one exception to the plan rule of just "how"; this plan includes, who, what, when and why
(2) Project Document Updates
126
Define Project Risk Management (11.0)
The processes of planning, identifying, analyzing, responding to, and monitoring project risks
127
Processes within Project Risk Management (11.0)
Plan Risk Management (11.1 - P);
Identify Risks (11.2 - P);
Perform Qualitative Risk Analysis (11.3 - P);
Perform Quantitative Risk Analysis (11.4 - P);
Plan Risk Responses (11.5 - P);
Implement Risk Responses (11.6 - E);
Monitor Risks (11.7 - M)
128
Output of Plan Risk Management (11.1)
Risk Management Plan
129
Risks exists at what levels?
(1) Individual - uncertain event or condition which could have a positive or negative effect on one or more project objectives
(2) overall - the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.
130
What are negative risks?
Threats
131
What are positive risks?
Opportunities
132
Define non-event risk
Variability risk: e.g. productivity may be above or below target, unseasonal weather conditions may occur during construction
Ambiguity risk: e.g. future developments in regulatory frameworks, inherent systemic complexity in the project
133
Define emergent risk
unknowable risk;
can only be addressed after its occurred;
addressed by developing project resilience
134
Define Identify Risks Process
The process of identifying individual project risks and sources of overall project risk and documenting characteristics
135
Outputs of Identify Risks
(1) Risk Register: identified risks, potential responses, potential risk owner
(2) Risk Report: targeted for leaders or organizations - presents info on overall risks and individual project risk
(3) Project document updates
136
Why are there so many inputs to the Identify Risks Process?
Risks can come from anywhere
137
Why would you conduct a SWOT analysis in the Identify Risks Process?
analyzes the project from all angles; gain overall awareness of the entire project
138
What is difference between a risk register and the risk report?
Focus is different. Risk register captures a running list of individual risks while the risk report captures a summary; a prepped narrative for upper management that highlights overall risks.
139
Define Perform Qualitative Risk Analysis Process
The process of prioritizing risks for further analysis or action by assessing their combined probability of occurrence and impact as well as other characteristics
140
Define Qualitative Risk Anaylsis
a quick and easy risk assessment method that combines the probability and impact to assign a risk score
141
Tools and Techniques to Perform Qualitative Risk Analysis
(1) Data Analysis: risk probability and impact assessment, risk data quality assessment, assessment of other risk parameters
(2) Risk categorization: grouping risks by category (RBS, WBS, Phase, etc)
(3) Data Representation: Probability and impact matrix, hierarchical charts
142
Define Probability and Impact Matrix
use to rank two variables; a matrix used during qualitative risk analysis that multiplies the risk probability (high, medium or low) by the impact to come up with a risk score, which is then used to create a prioritized list of risks
143
Outputs of Perform Qualitative Risk Analysis
Project Documents Updates: Assumption log updates, risk register updates, issue log, risk report
144
What do we do with risks that score very low on probability and impact?
Watch list on the Risk Register Updates
145
Where do probability and impact matrices come from?
Risk Management Plan
146
The specialized meeting dedicated to the discussion of identified individual project risks is often called a _______?
Risk workshop
147
What are some factors which should be considered when assessing risk?
urgency, proximity, manageability, dormancy, controllability, detectability, connectivity, strategic impact, propinquity
148
Define Perform Quantitative Risk Analysis Process
The process of numerically analyzing the combined effect of identified individual project risks and sources of uncertainty on the overall project objectives
149
How to calculate Expected Monetary Value when performing quantitative risk analysis?
EMV = Probability x Impact
150
Outputs of Perform Quantitative Risk Analysis
Project Documents Update: Risk report updates
151
When if ever should we repeat the Perform Quantitative Risk Analysis process?
After we implement risk response
152
What diagram display the results of sensitivity analysis?
Tornado Diagram
153
Define Plan Risk Responses Process
The process of developing options, selecting strategies and agreeing on actions to address overall project risk exposure as well as to treat individual risks
154
Define contingency plan
AKA fallback plan or risk response plan
a planned risk response that is implemented in response to a particular event occurring
155
Define Residual Risk
A risk that remains after risk responses have been implemented
156
Define Secondary Risk
A risk that arises as a direct result of implementing a risk response (spin-off risk)
157
Strategies for Threats (Tools and Techniques)
Escalate: Send to higher authority for management of the risk (use when the risk is outside the scope of the project or the PM's authority)
Avoid: Change something so that it's no longer a threat
Transfer: Shift risk to a third party (contract)
Mitigate: Reduce the probability and/or the impact
Accept: Deal with it when it occurs (passively or actively)
158
Strategies for Opportunities (Tools and Techniques)
Escalate: Send to higher authority for management of the risk
Exploit: Change something to ensure that it occurs
Share: Share with a third party (teaming agreement)
Enhance: Increase the probability and/or positive impacts
Accept: Take advantage when it presents itself (passively or actively)
159
Outputs of Plan Risk Responses
Change Requests
Project Management Plan Updates
Project Documents Updates: Risk Register Updates** (Most important)
160
What are Two Types of Reserves
```
Contingency Reserves (known unknowns)
Management Reserves (unknown unknowns)
```
161
Define Contingency Reserves
There are fort risks that can be foreseen. Contingency reserves can be derived for both time and cost. They become part of the schedule and cost baseline and are owned by the project manager.
162
Define Management Reserves
These are for unforeseeable risks to the entire project and can be derived for both time and cost. They are not included in the schedule or cost baseline and are owned by the management.
163
Define Reserves
money or time set aside case a risk occurs; contingency reserves are for identified risks, management reserves are for unidentified risks
164
Where is the action plan we develop for each individual risk documented?
Risk register
165
Where is the action plan we develop for the overall project risk documented?
Risk report
166
Exploit, enhance and share are strategies for _________ risks.
Positive
167
Avoid, transfer and mitigate are strategies for _________ risks.
Negative
168
Which strategies can be applied to both positive and negative risks?
Escalate and accept
169
Each risk response should be entrusted to a risk owner. True or False
True.
170
What is the difference between residual risk and secondary risk?
Residual is the risk that remains after risk mitigation has been applied; secondary is a risk that arises as a result of implementing risk response
171
What are the processes included in Project Procurement Management?
```
Plan Procurement Management (12.1 - P)
Conduct Procurements (12.2 - E)
Control Procurements (12.3 - M)
```
172
Define Sole Source
Buyer asks a specific seller for a proposal with no competition from other vendors
173
Define Tender
Often used interchangeably with bid
174
Define Privity
Signifies a contractual relationship between two parties
175
Define Force Majeure
A contract clause allowing for non-performance when unforeseeable and uncontrollable events occur (natural disasters, riots, etc.)
176
Define Centralized Purchasing
Organization has a purchasing and/or legal department to handle contracts
177
Define Decentralized Purchasing
The PM may be doing most of the work to negotiate, sign and manage contracts
178
What are the basic steps in the procurement process?
1. Prepare a procurement statement of work (SOW) or terms of reference (TOR)
2. Develop high-level cost estimates and determine a budget
3. Advertise the procurement activity
4. Identify a short list of qualified sellers
5. Prepare and issue the bid documents (RFP, RFI, RFQ, etc)
6. Receive seller prepared proposals
7. Conduct evaluations for cost, technical and quality
8. Identify the winning proposal
9. Negotiate and sign the contract between the buyer and seller
179
Contract Types
Fixed Price Contracts; Cost Reimbursable Contracts;
| Time & Materials Contracts
180
The buyer (government) prefers what type of contract?
Fixed Price Contract
181
Contract types are used to shift ________.
Risk
182
In cost-reimbursable contracts, the risk tends to be on who?
The buyer (government) bc the seller recovers all legitimate costs incurred, plus a fee which represents the seller's profit
183
Define the Point of Total Assumption
The point where the seller assumes responsibility for all cost overruns.
184
Define Ceiling Price
Maximum the price the buyer (government) agrees to pay
185
Define Target Cost
Initially-negotiated figure for estimated contract costs
186
Define Target Profit or Fee
The initially negotiated profit
187
Define Price
Target cost plus the target fee
188
Define Share Ratio
The ratio used to determine how under-runs or overruns increase or decrease profit
189
Outputs of Plan Procurement Management
(1) Procurement Management Plan
(2) Procurement Management Strategy: should include how the procurement will progress through the various phases; types of agreements that will be used; delivery method, i.e. subcontracting allowed or not
(3) Bid documents: Request for Information, Invitation for Bid (or Request For Quote), Request for Proposal
(4) Procurement Statement of Work
(5) Source Selection Criteria: factors used to select the right seller
(6) Make or buy Decisions
(7) Independent Cost Estimates
(8) Change Requests
(9) Project Documents Updates (requirements documentation, traceability matrix, risk register, lessons learned register, stakeholder register, milestone list)
(10) Organization Process Assets Updates
190
What can we use to shift risks in a given contract?
contract types
191
Plan Procurement Management process results in contract being signed. True or False
False.
192
What is the procurement document that describes the procurement item in detail?
The procurement statement of work
193
Define the Plan Stakeholder Engagement Process
The process of developing approaches to involve stakeholders based on the analysis of their needs, interests, and potential impact on the project.
194
Outputs of the Plan Stakeholder Engagement Process
Stakeholder Engagement Plan
195
What is purpose of the stakeholder engagement assessment matrix?
Provide a snapshot -> what are the current engagement levels of various stakeholders in comparison to what those levels should be.
"Are you giving the accurate level of attention to each stakeholder?"
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Define Stakeholder Management Plan
outlines strategies for managing various stakeholders' expectations/involvement
