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

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2
Q

___________ are set as part of the planning process group

A

Baselines

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3
Q

Planning is an __________ process and may require revisiting one or both of the initiating processes

A

iterative

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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

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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

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6
Q

Who should sign the project management plan?

A

project manager, the sponsor, the project team, and key stakeholders

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7
Q

Key Project Management Plan Components

A

Change Management Plan; Configuration Management Plan; Performance measurement baseline; Development Approach

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8
Q

Who or what determines the change control procedures set forth in the plan?

A

PM or OPA

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9
Q

At what point in the project can we stop consulting the Project Management Plan?

A

After closing

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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

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11
Q

At what point in the project should we have a fully completed project management plan?

A

end of the planning process group

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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)

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13
Q

Project scope is measured against…

A

the project management plan

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14
Q

Product scope is measured against…

A

the product requirements

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15
Q

What are the inputs of plan scope management?

A

(1) Project charter

(2) Project management plan

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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

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17
Q

What are some data gathering techniques?

A

brainstorming, focus groups, benchmarking (comparison vs a standard), document analysis, observation/conversation

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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.

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19
Q

What is define scope (5.3)?

A

The process of developing a detailed description of project and product

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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

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21
Q

What level of detail should be reflected in the scope statement?

A

In detail (very detailed)

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22
Q

What is the difference between project scope and product scope?

A

How I am building it vs what I am building

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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

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24
Q

Define Create WBS

A

Process of subdividing (decomposing) the project deliverables and project work into smaller, more manageable components

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25
Q

What is the lowest level of a WBS?

A

work package

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26
Q

What is decomposition?

A

breaking project work and deliverables down into smaller, more manageable components

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27
Q

What are the outputs of create WBS (5.4)?

A

(1) Scope Baseline: Project Scope Statement, WBS, WBS Dictionary (companion document to WBS)
(2) Project Documents Updates: requirements document, assumption log

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28
Q

Define Control Account

A

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.

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29
Q

Define planning package

A

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

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30
Q

Define work package

A

Important Terminology for WBS!

Work defined at the lowest level of the WBS, for which cost and duration can be estimated and managed

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31
Q

Define code of accounts

A

Important Terminology for WBS!

Any numbering scheme used to uniquely identify each component of the WBS

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32
Q

Define chart of accounts

A

Important Terminology for WBS!

list detailing all accounts used by the organization to identify areas of expenditures (not part of the WBS itself)

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33
Q

Define Project Schedule Management (6.0)

A

Processes required to manage timely completion of the project

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34
Q

What processes are within Project Schedule Management (6.0)?

A
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)
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35
Q

Define Plan Schedule Management (6.1)

A

The process of establishing the policies, procedures and documentation for planning, developing, managing, executing and controlling the project schedule

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36
Q

Output of Plan Schedule Management (6.1)?

A

Schedule Management Plan

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37
Q

Define Define Activities (6.2)

A

The process of identifying and documenting the specific actions to be performed to product the project deliverables

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38
Q

What is the starting point of Define Activities

A

work package

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39
Q

What are two types of progressive elaboration?

A

rolling wave planning and prototypes

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40
Q

Outputs of Define Activities (6.2)?

A

(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

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41
Q

What are (4) types of PDM relationships used in Sequence Activities (6.3)?

A

(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)

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42
Q

What is a lead?

A

allows an acceleration of a successor activity

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43
Q

What is a lag?

A

delay

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44
Q

Project Management Information System (PMIS)

A

software tool used to build schedules

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45
Q

Outputs of Sequence Activities (6.3)?

A

(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

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46
Q

Define Estimate Activity Durations (6.4)

A

The process of estimating the number of work periods needed to complete each individual activity with the estimated resources

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47
Q

Define Effort

A

Important Terminology for Estimate Activity Duration!

The number of LABOR units required to finish an activity (may expressed as staff hours, days or wks)

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48
Q

Define Duration

A

Important Terminology for Estimate Activity Duration!

The number of work periods needed to complete an activity

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49
Q

Define law of diminishing returns

A

Important Terminology for Estimate Activity Duration!

a point will eventually be reached when adding one factor (resources) yields less (products)

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50
Q

What are some Tools and Techniques used to Estimate Activity Duration (6.3)

A

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:

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51
Q

What is the Triangular Distribution Formula?

A

[Optimistic + Most Likely + Pessi(1) Duration Estimates

mistic]/3

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52
Q

What are the outputs of Estimate Activity Durations (6.4)?

A

(1) Duration Estimates
(2) Basis of Estimates
(3) Project Documents Updates

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53
Q

Define Develop Schedule (6.5)

A

The process of analyzing activity sequences, durations, resource requirements and schedule constraints to create the project schedule for project execution and control

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54
Q

Define Resource Leveling

A

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

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55
Q

Define Resource Smoothing

A

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

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56
Q

Float formula

A

Late Finish - Early Finish

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57
Q

What are the three types of float?

A

Total float (slack); free float; project float

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58
Q

Define Total Float (slack)

A

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

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59
Q

Define Free float

A

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.

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60
Q

Define Project float

A

The amount of time a project can be delayed, without impacting the externally imposed project deadline set by the customer or management

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61
Q

What is crashing?

A

Adding resources to critical path tasks, which exchanges higher costs for shorter schedule duration

crashing = cashing

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62
Q

What is fast tracking?

A

Converts sequential activities to parallel, which primarily increases risk

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63
Q

Outputs of Develop Schedule (6.5)

A

(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

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64
Q

What are the processes of Project Cost Management (7.0)?

A
Plan Cost Management (7.1)
Estimate Costs (7.2)
Determine Budget (7.3)
Control Costs (7.4)
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65
Q

Define Plan Cost Management

A

The process of defining how project costs will be estimated, budgeted, managed, monitored, and controlled

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66
Q

Output of Plan Cost Management

A

Cost Management Plan

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67
Q

What are some of the data analysis techniques you might employ in planning cost management?

A

NPV
IRR
Return on Investment
Payback period

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68
Q

Define Estimate Costs (7.2)

A

The process of developing an approximation of the cost of resources needed to complete the project work

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69
Q

Define Fixed Costs

A

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

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70
Q

Define Variable costs

A

Expenses that change in proportion to the activity of a business.

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71
Q

Define Direct costs

A

A cost that can be directly related to producing specific goods or performing a specific service.

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72
Q

Define indirect costs

A

Costs that are not directly attributable to a particular object, such as heat and light (overhead)

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73
Q

Define Rough Order of Magnitude

A

-25% tot 75%

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74
Q

Define Definitive Estimate

A

-5% to 10%

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75
Q

Cost of Quality

A

Cost of Conformance: Prevention and appraisal costs

Cost of Non-conformance: internal and external failure costs

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76
Q

Three - point Estimating

A

(1) Triangular Distribution (simple average)

2) BETA Distribution (PERT

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77
Q

Triangular Estimation Formula

A

[Optimistic + Most Likely + Pessimistic]/3

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78
Q

BETA Distribution (PERT) Formula

A

[Optimistic + (4 x Most Likely) + Pessimistic]/6

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79
Q

+/- 3 sigma

A

99.73%

80
Q

+/- 2 sigma

A

95.46%

81
Q

+/- 1 sigma

A

68.26%

82
Q

Activity Standard Deviation Formula

A

(Pessimistic-Optimistic)/6

83
Q

Outputs of Estimate Costs (7.2)

A

(1) Cost Estimates
(2) Basis of Estimates
(3) Project Documents Updates

84
Q

What is the purpose of standard deviation in estimating costs?

A

establishes confidence level by providing a range

85
Q

Define Determine Budget Process

A

The process of aggregating all estimated costs of individual activities or work packaged to establish an authorized cost baseline

86
Q

What is the difference between cost baseline and project budget?

A

management reserves

87
Q

Outputs of Determine Budget (7.3)

A

(1) Cost Baseline
(2) Project Funding Requirements
(3) Project Documents Updates

88
Q

What is the difference between the determine budget process and estimate costs process?

A

activity level; estimate costs focuses on the cost of resources while budget is the costs of the entire project

89
Q

Define contingency reserves

A

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
Q

Define management reserves

A

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
Q

Define reserve analysis

A

contingency reserves used to account for schedule or cost uncertainty (risks)

92
Q

Processes of Project Quality Management

A

(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
Q

Define Project Quality Management (8.0)

A

Processes that incorporate organizational quality policies, manage and control product and project quality to meet stakeholder objectives

94
Q

Define Plan Quality Management (8.1)

A

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
Q

Define Six Sigma

A

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
Q

Define Lean Six Sigma

A

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
Q

What are the 7 kinds of waste in LSS?

A
(TIMWOOD)
Transportation
Inventory
Motion
Waiting
Overproduction
Over-processing
Defects
98
Q

Methodology Approaches in LSS?

A

DMAIC (Define, Measure, Analyze, Improve, Control)

DMADV (Define, Measure, Analyze, Design, Verify)

99
Q

What is the Kanban method?

A

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
Q

Four principles of the Kanban Method?

A

Visualize work, limit work in process, focus on flow and continuous improvement

101
Q

Best Practices and Standards in Quality

A

ISO - International Organization for Standardization
BS - British Standard
CMMI - Capability Maturity Model Integration (AGILE)

102
Q

What are the 5 Levels of CMMI?

A

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
Q

Five levels of effective quality management

A

(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
Q

Define quality

A

the degree to which a set of inherent characteristics fulfill requirements

how well a product or service is made

105
Q

Define grade

A

a category assigned to products or services having the same functional use but different technical characteristics

106
Q

Plan-Do-Check-Act cycle

A

The basis for quality improvement as defined by Shewhart and modified by Deming

107
Q

Cost of Conformance

A

$$ spent during project to avoid failures

108
Q

Cost of Nonconformance

A

$$ spent during and after project because of failures

109
Q

Cost of Quality is…

A

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
Q

What are the outputs of Plan Quality Management (8.1)

A

(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
Q

What processes are included in Project Resource Management?

A
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
Q

Define Plan Resource Management (9.1)

A

The process of identifying how to estimate, acquire, manage and use human and physical resources

113
Q

Outputs of Plan Resource Management (9.1)

A

Resource Management Plan;
Team Charter;
Project Documents

114
Q

What does the Team Charter contain?

A

Team’s values, agreements and operational guidelines

115
Q

What is the purpose of the Project Team Resource Management?

A

Plan for how to define, staff, manage and eventually release team members

116
Q

Who should develop the team charter?

A

The team

117
Q

Define Activity Resources

A

The process of estimating team resources and the type and quantities of material, equipment and supplies necessary to perform work

118
Q

Outputs of Estimate Activity Resources

A

(1) Resources Requirements;
(2) Basis of Estimates;
(3) Resource Breakdown Structure: hierarchical breakdown by resource category;
(4) Project documents update

119
Q

What type of resources will you be estimating for your projects?

A

labor, material, equipment, supplies

120
Q

Define Projects Communications Management

A

Includes the processes necessary to ensure that the information needs of the project and its stakeholders are met through the development of artifacts

121
Q

What processes are included in Project Communication Management?

A
Plan Communications Management (10.1 - P);
Manage Communications (10.3 - E);
Monitor Communications (10.4 - M)
122
Q

What are a few examples of communication mechanisms?

A

Written; spoken,; formal or informal; gestures; media; choice of words

123
Q

5C’s of communication

A

Correct, Concise, Clear, Coherent, Controlling

124
Q

Equation to calculate communication pathways

A

n(n-1)/2

125
Q

Outputs of Plan Communications Management

A

(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
Q

Define Project Risk Management (11.0)

A

The processes of planning, identifying, analyzing, responding to, and monitoring project risks

127
Q

Processes within Project Risk Management (11.0)

A

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
Q

Output of Plan Risk Management (11.1)

A

Risk Management Plan

129
Q

Risks exists at what levels?

A

(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
Q

What are negative risks?

A

Threats

131
Q

What are positive risks?

A

Opportunities

132
Q

Define non-event risk

A

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
Q

Define emergent risk

A

unknowable risk;
can only be addressed after its occurred;
addressed by developing project resilience

134
Q

Define Identify Risks Process

A

The process of identifying individual project risks and sources of overall project risk and documenting characteristics

135
Q

Outputs of Identify Risks

A

(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
Q

Why are there so many inputs to the Identify Risks Process?

A

Risks can come from anywhere

137
Q

Why would you conduct a SWOT analysis in the Identify Risks Process?

A

analyzes the project from all angles; gain overall awareness of the entire project

138
Q

What is difference between a risk register and the risk report?

A

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
Q

Define Perform Qualitative Risk Analysis Process

A

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
Q

Define Qualitative Risk Anaylsis

A

a quick and easy risk assessment method that combines the probability and impact to assign a risk score

141
Q

Tools and Techniques to Perform Qualitative Risk Analysis

A

(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
Q

Define Probability and Impact Matrix

A

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
Q

Outputs of Perform Qualitative Risk Analysis

A

Project Documents Updates: Assumption log updates, risk register updates, issue log, risk report

144
Q

What do we do with risks that score very low on probability and impact?

A

Watch list on the Risk Register Updates

145
Q

Where do probability and impact matrices come from?

A

Risk Management Plan

146
Q

The specialized meeting dedicated to the discussion of identified individual project risks is often called a _______?

A

Risk workshop

147
Q

What are some factors which should be considered when assessing risk?

A

urgency, proximity, manageability, dormancy, controllability, detectability, connectivity, strategic impact, propinquity

148
Q

Define Perform Quantitative Risk Analysis Process

A

The process of numerically analyzing the combined effect of identified individual project risks and sources of uncertainty on the overall project objectives

149
Q

How to calculate Expected Monetary Value when performing quantitative risk analysis?

A

EMV = Probability x Impact

150
Q

Outputs of Perform Quantitative Risk Analysis

A

Project Documents Update: Risk report updates

151
Q

When if ever should we repeat the Perform Quantitative Risk Analysis process?

A

After we implement risk response

152
Q

What diagram display the results of sensitivity analysis?

A

Tornado Diagram

153
Q

Define Plan Risk Responses Process

A

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
Q

Define contingency plan

A

AKA fallback plan or risk response plan

a planned risk response that is implemented in response to a particular event occurring

155
Q

Define Residual Risk

A

A risk that remains after risk responses have been implemented

156
Q

Define Secondary Risk

A

A risk that arises as a direct result of implementing a risk response (spin-off risk)

157
Q

Strategies for Threats (Tools and Techniques)

A

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
Q

Strategies for Opportunities (Tools and Techniques)

A

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
Q

Outputs of Plan Risk Responses

A

Change Requests
Project Management Plan Updates
Project Documents Updates: Risk Register Updates** (Most important)

160
Q

What are Two Types of Reserves

A
Contingency Reserves (known unknowns)
Management Reserves (unknown unknowns)
161
Q

Define Contingency Reserves

A

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
Q

Define Management Reserves

A

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
Q

Define Reserves

A

money or time set aside case a risk occurs; contingency reserves are for identified risks, management reserves are for unidentified risks

164
Q

Where is the action plan we develop for each individual risk documented?

A

Risk register

165
Q

Where is the action plan we develop for the overall project risk documented?

A

Risk report

166
Q

Exploit, enhance and share are strategies for _________ risks.

A

Positive

167
Q

Avoid, transfer and mitigate are strategies for _________ risks.

A

Negative

168
Q

Which strategies can be applied to both positive and negative risks?

A

Escalate and accept

169
Q

Each risk response should be entrusted to a risk owner. True or False

A

True.

170
Q

What is the difference between residual risk and secondary risk?

A

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
Q

What are the processes included in Project Procurement Management?

A
Plan Procurement Management (12.1 - P)
Conduct Procurements (12.2 - E)
Control Procurements (12.3 - M)
172
Q

Define Sole Source

A

Buyer asks a specific seller for a proposal with no competition from other vendors

173
Q

Define Tender

A

Often used interchangeably with bid

174
Q

Define Privity

A

Signifies a contractual relationship between two parties

175
Q

Define Force Majeure

A

A contract clause allowing for non-performance when unforeseeable and uncontrollable events occur (natural disasters, riots, etc.)

176
Q

Define Centralized Purchasing

A

Organization has a purchasing and/or legal department to handle contracts

177
Q

Define Decentralized Purchasing

A

The PM may be doing most of the work to negotiate, sign and manage contracts

178
Q

What are the basic steps in the procurement process?

A
  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
Q

Contract Types

A

Fixed Price Contracts; Cost Reimbursable Contracts;

Time & Materials Contracts

180
Q

The buyer (government) prefers what type of contract?

A

Fixed Price Contract

181
Q

Contract types are used to shift ________.

A

Risk

182
Q

In cost-reimbursable contracts, the risk tends to be on who?

A

The buyer (government) bc the seller recovers all legitimate costs incurred, plus a fee which represents the seller’s profit

183
Q

Define the Point of Total Assumption

A

The point where the seller assumes responsibility for all cost overruns.

184
Q

Define Ceiling Price

A

Maximum the price the buyer (government) agrees to pay

185
Q

Define Target Cost

A

Initially-negotiated figure for estimated contract costs

186
Q

Define Target Profit or Fee

A

The initially negotiated profit

187
Q

Define Price

A

Target cost plus the target fee

188
Q

Define Share Ratio

A

The ratio used to determine how under-runs or overruns increase or decrease profit

189
Q

Outputs of Plan Procurement Management

A

(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
Q

What can we use to shift risks in a given contract?

A

contract types

191
Q

Plan Procurement Management process results in contract being signed. True or False

A

False.

192
Q

What is the procurement document that describes the procurement item in detail?

A

The procurement statement of work

193
Q

Define the Plan Stakeholder Engagement Process

A

The process of developing approaches to involve stakeholders based on the analysis of their needs, interests, and potential impact on the project.

194
Q

Outputs of the Plan Stakeholder Engagement Process

A

Stakeholder Engagement Plan

195
Q

What is purpose of the stakeholder engagement assessment matrix?

A

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?”

196
Q

Define Stakeholder Management Plan

A

outlines strategies for managing various stakeholders’ expectations/involvement