PMP 2021 Flashcards

1
Q

1.1 - Team Charter

A

a project document - (container of ‘project information’)
that establishes team’s:

1) norms
2) expectations
3) behaviors

4) purpose,
5) communication

Set Ground Rules
values
agreements
practices

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2
Q

1.2 - Values

A

Something I hold in high regard
(aristotle) ‘Something I’m willing to sacrifice for’

  • Responsibility
    take ownership for decisions we make, actions we take,and consequences as these outcomes.
  • Respect
    Show a high regard for OURSELVES others, and what’s entrustedto us.
  • Fairness
    Make decisions and act impartially and objectively.I don’t want my opinion to be right, I want to hear ALL opinions and work with you to find the best one.
  • Honesty
    Understand the truth. Act and speak in a truthful manner. We find out what’s right and we speak of it and do it.
  • Communications
    We take statements and comments in chat as opinions and perceptions, not facts or truths. Even facts, without analysis, are not truth.
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3
Q

1.3 - Resource Management

A

Management of:
1) Human Resource My ‘team’
2) Physical Resources Materials nuts, bolts,
cabling. Tools Supplies
cases of bottled water

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4
Q

2.1 - Resposible VS Accountable

A

Responsible:
“no one has to tell me to get my work done”
- having a duty to deal with something or lead someone.
“If you are responsible, you step in and take action.”

Accountable:
“I care about the results”
- having a duty for the outcome of an action.
“If you are accountable, the outcome is on your shoulders.”

The PM is responsible and accountable
For the objective being met by the deliverable
deliverable - is what we create
objective - is what the deliverable does for the final owner.

The TEAM is responsible and accountalbe
for the work they perform.

Example:
A team member is building a file server.
They are responsible
* noone has to tell them how to build a file server.
* noone has to tell them they need to do it now.

		They are accountable
			* they are concerned about the results of this 
                           work
			* They want to complete all the work
			* they want to do it correctly
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5
Q

2.2 - SERVANT Leadership

A

I get all the distractions out of the way

I ensure that people have good reasons to work together and get great done (How?)

Understanding and addressing needs and development of project team members
in order to enable highest possible project team performance.

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6
Q

2.3 - Competency

A

Consist of:

1) Skill
2) Knowledge
3) Attributes

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7
Q

2.4 - Skill

A

‘hard’ technical capabilities

expertise that generates results of work (build a server, design a business process)

What are the specific actions and work needed for this project?

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8
Q

2.5 - Knowledge

A

information required to complete work

information need to perform work (business environment, where confidential information is)

What does the team need to know to complete this work?

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9
Q

2.6 - Attributes

A

‘soft’ (but not easy) human factors
character, behavior, etc.

behavior, character, and characteristics of actions team performs self-awareness, emotional intelligence, patience, responsibility, accountablity, integrity

What behavior and character are required?

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10
Q

2.7 - Stakeholder

A

1) If they can impact my work
2) If they can be impacted by my work
3) If they perceive they can be impacted by my work

Internal or External

Competitor - are THEY a stakeholder? YES. They are an external, negative stakeholder.

STAKEHOLDERS. CHANGE. CONSTANTLY

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11
Q

2.8 - Sponsor

A

1) Provides funds, resources
2) Authorizes the work

client, another corporation, management, another organization…

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12
Q

2.9 - Stakeholder Register

A

Project Document “Container of Project Information”

Contains Stakeholder’s

1) contact information
2) needs, expectations, objectives
3) any other information needed to understand HOW to engage

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13
Q

2.10 - Engagement

A

1) keep involved
2) share information
3) ensure they remain curious

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14
Q

2.11 - ROLE

A

a group of tasks performed by one or more entity, individual, group

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15
Q

2.12 - Brainstorming

A

Capturing data.

It’s not organizing (analyzing); it’s only capturing - organizing comes later.

‘ideation’: creating new ideas.

* coming up with new ideas

* Analysis is a separate activity
	analysis: turning data into information
	brainstorming: collecting data
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16
Q
  1. 13 RACI Chart
A

is a form of “Resource Assignment Matrix” / RAM
A RAM - assigns specific tasks to specific individuals.

1) Responsible - “I perform the work”. (team, stakeholders)
2) Accountable - “I lead the work (and sometimes also perform it).” (team lead, can also be PM)
3) Consulted - “I am a subject expert” (team, stakeholders)
4) Informed - “I need project information” (team, stakeholders)

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17
Q

2.14 - TEAM SKILLS APPRAISAL

A

Assesment of competencies

strengths VS weaknesses

  • gather information through appraisal
  • learn how to movitate people to learn
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18
Q

2.15 - Diversity

A

we are all different

	                  * this gives us innovation
	                  * also gives us conflict

Differences of experience, opinions, ideas

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19
Q
  1. 16 - Equity
A

Everyone carries

	              * the same vote
	              * the same opportunity to provide information
  • Everyone has the same chance to vote, provide ideas, participate.
  • Just like this class - “we all cross the finish line together.”

‘Everyone is equal.’

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20
Q

2.17 - Inclusion

A

Everyone is part of the team

	* THe TEAM *does the work* not the individuals
	* "We all cross the finish line together."

you are part of the group and part of the work.

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21
Q

3.1 - Resource Management Plan

A
a Plan ('How do I do something)
Project Document (container of 'project information')
  • how we will (on this project)
    1) plan our resources
    2) acquire our resources
    3) train, develop and maintain our team (human resources)
    4) monitor and control our (physical) resources
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22
Q

3.2 - Physical resources

A

1) Materials - nuts, bolts, cabling
2) Tools - shovels, constructtion equipment
3) Supplies - Cases of bottled water

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23
Q

3.3 - Authority

A

“Right to exercise power”

  • position of control
  • given to individuals within an organization- to foster overall
    effective and efficient function
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24
Q

3.4 - Information Radiator

A

tool/process/activity that ‘radiates’ or distributes
information to a group of people.

1) The Dashboard -> OUR INFORMATION
2) The Monitor/Sharepoint -> Our Information RADIATOR

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25
Q

3.5 - Assign

A

Formal declaration of

	                    1) responsibility
	                    2) accountability
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26
Q

3.6 - Asssess and train

A

close gaps in competency needs

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27
Q

3.7 - Predictive

A

“Predictive, Traditional”
(waterfall - a ‘form’ of predictive work)

I know this work - we’ve done it before and have archives of documents.

If we put together a plan, we can be reasonably successful.

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28
Q

3.8 - Agile

A

“Agile, Adaptive”

1) Adaptive: “Self-organizing”

self-organizing: a pattern that emerges as seemingly random
work is performed.

2) Iterative: ‘Repeats’
3) Incremental: ‘adds detail’
We do this in agile until teh patterns emerge.

I don’t know this work - it’s complicate, unknown, uncertain
and prone to great change.
* we need to train our team for the unknown
* we need to explore the work a bit before we build a
formal plan

Iterative:
We repeat.
We demonstrate a prototype to stakeholders, and receive feedback that helps us in our change.

Incremental:
We deliver functionality and value early, and then
follow with incremental (growing) value and functions as we progress.

Agile: Combines iterative and incremental

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29
Q

3.9 - Agile is like scrum

A

These adaptive are a project manager responsibility or SME responsibility?
team responsibility: the work
PM responsibility: the deliverable meeting the objectives

'Get the decisions closest to the work' 
the team (experts) should be the ones who know best how to get work done.

‘Build your controls so that is not disturbed.’ - “Servant Leadership”
the PM / Manager / Lead ensures that nothing gets in the way of the team

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30
Q

3.10 - Job of Project Manager

A

The PM does not perform the work, they ensure the team has

	* everything needed to perform
	* distractions (obstacles, issues) removed

includes:

	- what do they need in regards to training (competency)
	- do we need more resources? different resources?
	- access to stakeholders? Experts?
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31
Q

3.11 - Facilitation

A

If I’m a facilitator

* I step outside of the process (even voting)
* I ensure teh process is followed.

I am the PM. I can tell everyone what I think, but if I do, they’ll stop thinking.

“The leader should speak last. It’s a signal that says, others should contribute.”

‘Stepping out of the process’
I don’t vote.
I don’t participate in providing information.

It’s a leader who says, “I don’t want my ideas, I want better ideas - and I can lead you to the results.”

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32
Q

3.12 - Ethics

A

Ethics - is What is good, bad; wrong, right
Morals - is Behavior shaped by ethics

Ethics	-> morals	-> behavior

	        - > habits	-> perception
	        - > opinions.
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33
Q

3.13 - Norm (Ethics)

A
  • expected ‘normal’ behavior

* in order for a group of people to behave as a “team”

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34
Q

3.14 - Value ( Ethics)

A

Something I hold in high regard

(aristotle) ‘Something I’m willing to sacrifice for’

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35
Q

3.15 - Integrity

A

Words and actions say the same

If they don’t, how can anyone trust or even follow?

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36
Q

3.16 - People are like hammers

A
A hammer:	it is neither good nor bad.
			It is designed perfectly to place nails into wood
			this design	
				1) makes it the best tool to do this
				2) makes it great to break windows
         The hammer does not make the decision.
         The hand behind the hammer makes the decision.

People are like hammers.
	"What is the hand behind people?"
	Our habits, our perceptions, our behaviors...

So - our intent is not to make people wrong or right.
Our intent is to help people change behaviors
and only then if we can’t help them, do we consider
confronting and when all else fails, replacing.

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37
Q

3.17 - Win/Loose - Vs - Win/Win

A

Win-lose: is a ‘finite’ game.
this eliminates players
“Who is the winner, loser?”

Win-win:	        is an infinite game.
		        this opens the game
			1) to infinite players
			2) to infinite benefits
			"How can we keep the game going?"
			(THIS is almost infinitely harder...)
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38
Q

4.1 Conflict

A

a signal that tells us we have differences of opinion.
INNOVATIONS (lessons learned)

1) we manage conflict first
2) we then resolve the issue/s.

Issue	  'Something that is occurring, has occurred
		   May impact (for worse).'
  • we don’t place others in the position of being wrong.
    This isolates them and cuts them off from being an asset for our project.
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39
Q

4.2 Conflict resolution

A

As a leader I cannot control what others think. I can control the impact of that thinking on the project’s progress.

I don’t intend to control people’s behavior. I do intend to ensure that behavior does not impact the work.

I don’t intend to force people to see my ideas. I do intend to ensure that the best process gets the idea selected from debate, analysis, and voting.

The work of a PM is manage issues.
The work of a PM is to lead people.

To tell people that they are getting in the way of work is counterproductive.
To tell people that their conflict and mindset needs to change is different.

You have a great point here. It’s worthy of recording. However, the team has chosen to go in a different direction.
Can I have you on record as disagreeing with the decision, yet supporting the team in its direction?’

1) Avoid - later - lets discuss on our next meeting
2) Compromise/ Reconcile - Lose/lose - certain dergee of satisfiction - just part from both
3) Collaborate/ Solve - Win-Win
4) Accomodate
5) Force

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40
Q

4.3 Negotiation

A

an attempt to influence others
to see a different point of view
An attempt to come to agreement

1) persuasion - negotiation using logic, ethics, emotions
2) motivation - connecting negotiation to fulfillment of
personal needs
3) influence - attempting to cause action through others
using power.

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41
Q

4.4. Negotiation - Predictive/Agile

A

In predictive life cycles: we negotiate the very discrete details

in agile life cycles: We may not be able to discuss discrete details, we negotiate the process
* invest in training teams to be self-organizing
* build a framework that we can experiment and explore
within
* and quickly negotiate to the details we need

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42
Q

4.5 Consensus

A

We agree.
We may not agree on the result, outcome, decision

we WILL agree
to support the decision of the team.

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43
Q

4.6 Moscow

A
1 MSCW analysis	(prioritization)
	We	Must ...
	We 	Should ...
	We	Could ...
	We 	would (but) ... (won't is a common term here too)
You can use this for sorting out multiple options and 
    determininglevels of criticality
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44
Q

4.7 Kano Model / QUALITY break down

A

Breaks down quality definitions of a project into 5
categories:

* Must-be - customers expect these and take them for
  granted.

* 1-dimensional - result in satisfaction when fulfilled,
  result in dissatisfaction when unfulfilled.

* Attractive - result in satisfaction when fulfilled,
  do NOT result in dissatisfaction when unfulfilled.

* Indifferent - neither good, or bad, don't result in
  satisfaction or dissatisfaction

* Reverse - by satisfying some, dissatisfy others.
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45
Q

5.1 Reports

A

Progress - Yesterday
Status - Where we are now
Forecast - Where we expect to be.

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46
Q

5.2 Data - Information - Reports

A

1) Data: Raw, unorganized.
“We spent $5,000 last week.”
- Is this bad, good? I don’t know.
It’s only data, without qualification.

2) Information: Data, in context (with background),
integrated (tied together)
“We are now $500 over budget.”
‘It’s bad.’
We can say that informatio is organized and
analyzed data.

Rrpormatted information, USED FOR CONTROL.
Dashboard}

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47
Q

5.2 Data - Information - Reports

A

1) Data: Raw, unorganized.
“We spent $5,000 last week.”
- Is this bad, good? I don’t know.
It’s only data, without qualification.

2) Information: Data, in context (with background),
integrated (tied together)
“We are now $500 over budget.”
‘It’s bad.’
We can say that informatio is organized and
analyzed data.

R3) Reports: formatted information, USED FOR CONTROL.
{Dashboard}

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48
Q

5.3 Estimation

A

This is the process of converting data to information.

	* I collect enough (and the 'right') data
	* I apply a thoughtful analysis
	* I generate a reasonably accurate forecast.
  • Raw data is dumping puzzle pieces on a table without putting them into groups.
  • Information is putting the puzzle pieces into groups.
  • Reports are using the information to determine how effective we are in building the puzzle.
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49
Q

5.4 Expert Judgment

A

My subject Experts

	* the team
	* stakeholders (including sponsor/s, executives, clients,

This is teh essence of facilitation.

You ‘guide’ the process of collecting data, analyzing for information, and organizing for reports.

You could do this on your own, but if you use experts, you get better results.

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50
Q

5.5. Resource Calendar

A

‘The availability of my team’
‘The availability of my vendor (seller)’

I compare this against my schedule.
Available resources -> required activities.

Resources have:
                            a 'what'
                            a 'how much'
                                a "when"
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51
Q

5.6 Team Performance

A

1) results of the work
2) health of the team
3) engagement of the members

  • What is the result of my team’s work? Is it appropriate?
    progress, status, forecast
  • Is my team bonding, growing, maturing? Is THIS appropriate?
  • Are the team members contributing, growing, and engaged?
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52
Q

5.7 Lessons Learned

A

‘innovations’
unique ideas that can improve our projects, other projects, even the organization.

We capture these constantly.
We aim for constant (‘continuous’) improvement.

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53
Q

5.8 Lessons Learned Register - Vs - Lessons learn Repository

A

Lessons Learned Register
a project document
that lists and organizes my project’s lessons learned
** to benefit my project **

Lessons learn Repository
	a a knowledge base
		Could be organized by your PMO
		Could be organized by your organization
		could be organized by a group of PMs
			(NASA had to do this for years)
that lists and organizes my project's lessons learned

	* ** to benefit other projects ***
	* ** to benefit the organization ***
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54
Q

5.9 word ‘‘Necessary’’

A
  • Ensures project success

* Minimizes Project Failure

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55
Q

5.10 Closing out a project

A

1) We need to determine that the work is done.
Validation (of scope -> “Scope validation”)
BLACK OUT

2) We confirm the final owner is ready for the deliverable handoff
Transition
GO LIVE

3) We formally close and archive the project

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56
Q

5.11 Black out

A

a decision and a statement
“We will make no more changes”

PRESERVE THE STATE OF THE DELIVERABLE

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57
Q

5.12 Go Live

A

The actions and decisions
To not only receive but place the deliverable in itsfull operation

We hand over the deliverable

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58
Q

5.13 Empower / Delegate

A

‘If I give my power over, doesn’t that make me weak?’
No. It frees you up to perform more powerful activities.

I want people to work where they’re strong

I also need to assess and understand weaknesses.

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59
Q

5.14 Agreement / Consensus

A

‘Agreement’ We are in alignment (outcome, decision, results)

'Consensus'

		- we agree
		- we may not agree with the outcome, decision, results
		- We WILL agree to support the direction of the team

Consensus:	we can not agree
		and this will Not be an obstacle
		'It won't be an obstacle if we don't agree'
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60
Q

5.15 Outcome/Results

A

Outcome and results are generally the same.
Outcome is sometimes referenced with decision and action
Results are sometimes referenced with action.

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61
Q

5.16 Estimation

A
  • We collect enough (and the right data)
  • We analyze that data through a valid and thorough analysis (‘thoughtful’)
  • We generate a reasonably accurate forecast
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62
Q

5.17 Story points - Agile estimation

A

acts as a ‘bridge’ when we have no duration estimates

Let’s call ‘story point’ a “unit of difficulty”
My experts may not be able to estimate duration,
but they can help me with estimating difficulty.

Let’s take a walk.
We walk on the sidewalk. That’ll be easy.
3 story points

		We walk in the water. That'll be trickier.		 5 story points

		We walk through the mud. That's difficult.		 13 story points

As we go through the work, we find out
a sidewalk walk is 1 day.
That means that 1 story point can be considered
1 /3 of a day.

If we now assume 1 story point = 1/3 of a day,
	Walking through water should take about 1 2/3 days
	Walking through mud   should take about 4 1/3 days
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63
Q

5.18 Time-box - Agile estimation

A

When we have no durations, we use time-boxes:

	* an early estimate
	* used as a benchmark.

We always use benchmarks (time-boxes) in estimating meeting durations.

Time-boxes do 2 things:

  • Create a sense of urgency (we don’t have all the time in the world)
  • They give us an ‘initial estimate’ which we then can refine

Sprint: a “special type of time-box” in agile and lean (and scrum)
‘2 to 4 weeks’

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64
Q

5.19 Sprint

A

a “special type of time-box” in agile and lean (and scrum)
‘2 to 4 weeks’

is a pre-defined time-box, that is used in scrum, agile, and other work.
- does NOT define the work. Sprint DOES define the duration of the work.
It’s not a feature, not an epic, not a backlog item. It is the time-box we use to estimate these.

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65
Q
  1. Brainstorming / Analysis / Organization
A

Brainstorming Creates that set of unorganized data
Analysis Turns that data into information
Organization Turns information into reports that we can use
for control -decisions, further analysis,
meetings, change, etc

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66
Q

6.2 Accountability

A

Task accountability - how do I hold my team accountable?
1) Emotional intelligence, personal awareness
2) 3 sets of data
1) “How is the work progressing?”
Reading the project data

		2) "How is the team bonding?"
			Reading the relationships (emotional intelligence)

		3) "Are the team members engaged and contributing?"
			Reading the individuals (personal awareness)
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67
Q

6.3 Stand-ups (SCRUMs)

A

“Beginning of work” (beginning of day, week, month, task, phase, feature, epic, etc etc)

The facilitator (often the PM):

1) What did we complete yesterday? (“progress”)
2) Where are we now (today)? (“status”)
3) What do we expect to work on tomorrow? (“forecast”)
4) Issues, risks…

Standups give us our work information we need to change

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68
Q

6.4 Reviews

A

“DURING the work” (beginning of day, week, month, task, phase, feature, epic, etc etc)

The team demonstrates prototypes
these gather feedback from stakeholders
this feedback is collected and organized

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69
Q

6.5 Retrospectives

A

“End of work” (end of day, week, month, task, phase, feature, epic, etc etc)

The facilitator (often the PM):

1) What did we do well?
2) What could we have done better?
3) If we knew what we know now, how would we do it now?

Retrospectives give us our innovations we can use to change (LESSONS LEARNED)

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70
Q

6.6 Difference Agile/Srum

A

Agile is a methedology..while SRUM is a framework

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71
Q

6.7 Training

A

We train for COMPETENCIES:
* skills ‘how to’ do the work
* knowledge ‘information’ required for the work
* Attributes behavior, character, mindset
active listening, responsibility
decision-making, patience and resilience

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72
Q

6.8 Coaching / Mentoring

A

Coach: impart a skill (generally time-bound)

Mentor: Create a relationship to explore, practice, demonstrate competencies

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73
Q

6.9 T-Shaped skills

A

Vertical part of the “T” I am deep in my area of expertise

Horizontal part of the “T” I am broad in my ability to bring my expertise to support the group…

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74
Q

6.10 Pre-tests, post-tests

A

1) I receive a benchmark and a demonstration of improvement.
(if you were to take the PMP exam without formal training, 40-70% correct…)

2) I demonstrate the capability and the value of the training.

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75
Q

7.1 Analysis

A

decomposition in order to understand the pieces

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76
Q

7.2 Variance Analysis

A

progress yesterday
status today

Predictive:
			actual compared to plan
			progress against expectations
			completed work compared to non-completed 
                         work

Agile: velocity: how quickly pieces of work are
completed
throughput: how many pieces of work I am
completing at a certain time
Completed work compared to non-completed work

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77
Q

7.3 Trend Analysis

A

progress yesterday
status today
FORECAST tomorrow

Observable patterns (‘trends’) give you an opportunity to predict the future (forecast)

This will be VERY important when we get into agile.

Trend will gives idea of time required to complete the task based on existing status
** THIS **

This is why we time-box.
We can take our trends from completed work and use them to refine our forecasts.

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78
Q

7.4 Project charter

A

Project Document (container of project information)

* Authorizes the project
* Provides the PM Authority - assignment of the PM

Example:
Director: “Help me with this proposal”
They’re asking you to help them develop the project charter.

Director: “Put together the plan, here are some details…”
A charter is in place, in some form, usually scattered - emails, PPTs, other business documents.

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79
Q

7.5 Project overview statement / AGILE

A

we don’t have enough information for a project charter

Predictive: I know how to do this, so I want to build a plan.

Agile: I don’t know how to do this, so I want to build a
framework of activities within which I can explore.

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80
Q

7.6 Project methodology / (Life cycle)

A

The way we manage projects is shaped by this methodology
scope, schedule, cost shaped by methodology
quality, risk, contracts shaped by methodology
teams, stakeholders, comms shaped by methodology
integration shaped by methodology

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81
Q

7.7 Iterations

A

(“repeat” cycles)

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82
Q

7.8 Release

A

transition to final operating environment / market

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83
Q

7.9 Product life cycle / Product roadmap

A

Product life cycle: the life of a product from its idea to its obsolescence

Product roadmap: a strategic overview (forecast) of a product’s life cycle

example of a roadmap:

	* We'll first release a basic smartphone.
	* We'll then release that phone with newest memory
	* We'll then release that phone with newest camera
	* We'll Then release that phone with lots and lots of apps
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84
Q

7.10 Backlog / Backlog item

A

“remaining work”

Backlog items” -> pieces of agile work
color of box
size of box
raw material of box

Backlog item

* a piece of agile work
* a 'small, bite-sized' piece

Backlog
the entire group of backlog items
will constantly change

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85
Q

8.1 Voting

A

1) Have a yes/no decision? Roman voting (thumbs up/down)
2) Have a range decision? ‘fist of five’ (from all fingers to no fingers)
3) Have necessary discussion? ‘polling’ (opinions with a vote)
4) Want a weighted result? ‘Dot’ Voting

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86
Q

8.2 Good practice

A

We learned through previous work that this is a great approach. And if you apply it, you can expect better thannormal results.

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87
Q

8.3 T-shirt shizing

A

The organization of work based on different levels of complexity and associating the number of relative story points to each piece of work.

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88
Q

8.4 XP Metaphore

A

XP Metaphore in extreme programing - you use the langueage of client

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89
Q

8.5 Product Box

A

I am handing you an invisible box. Don’t describe the shape,
color or size. What does it do for you? How does it solve your problem? Why do you need that box and not other boxes?

Redirects the conversation

* Away from requirements and into needs and objectives
* Away from engineering a solution and towards what success looks like
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90
Q

8.6 Business Case

A

1) What is the cost?
2) What is the benefit?
3) What is the profit? (difference)

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91
Q

8.7 Feasibility

A

Can we do this?
Should we do this?
Is this even something we need to consider?

High-level benefits: ‘This will increase the safety of our factory
workers’

More specific: ‘We’ll re-design this tool in order to ensure
moving it doesn’t create a safety incident.’

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92
Q

8.8 Starting the project

A

1) Choose methodology
2) Feasibility study
3) Project Charter Project Overview Statement
4) Business case
5) Implementation plan ( how to document)

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93
Q

8.9 Implementation Plan

A

Not just how we will build and deliver
in addition
How will we assist in the transition into production / market
How we will assist in the adoption of the deliverable.

delivery of the product meets project needs
Support of implementation meets BUSINESS needs
	Can we get this deliverable up and running?
	Can we maintain this deliverable successfully?
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94
Q

8.10 Progressive Elaboration

A

Progressive “move forward”

Elaborate “add detail”

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95
Q

8.11 Rolling Wave

A

a ‘form’ of progressive elaboration -

	* Progressive	"move forward"
	* Elaborate	"add detail"

and in addition...

	* Near term work is defined in detail
	* Far  term work is left at a high level.

The early work needs to be planned in detail (and often worked through) in order to even start planning later work.

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96
Q

8.12 Predictive / Agile / Hybrid

A

Agile
work is relatively unknown, uncertain, prone to great change.
* coordination of customer and team drives the project forward.

Predictive
work is known, and we have history we can rely on.
* Plans drive the project forward

Hybrid
a ‘combination’ of these two other methodologies
* we may start agile and determine we know the work now.
* we may start predictive and determine this is really risky
* we may identify certain parts of the project benefit an agile
approach, where other parts benefit a predictive one.

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97
Q

8.13 Adaptive

A

‘self-organizing’ (“change and learn”, constant course-correction)

GROUP OF FISH
Agile adaptive
iterative adaptive
incremental adaptive

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98
Q

8.14 Rough order of Magnitude

A

‘Bigger than a breadbox, smaller than a truck’

Just enough detail to say things like yes, no.

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99
Q

9.1 Iterative

A

Iterative:
We repeat.
We demonstrate a prototype to stakeholders, and receive feedback that helps us in our change.

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100
Q
  1. 2 Incremental
A

We deliver functionality and value early, and then follow with incremental (growing) value and functions as we progress.

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101
Q

9.3 Life Cycle

A

the steps a project goes through from its initiation (approval) (project) to its end (transition)

To methodologies -> how the ‘work’ is performed
to a PM Framework -> how the ‘control work’ is performed
to a Project Life Cycle -> how these two work together.

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102
Q

9.4 Methodology

A

the manner in which the work (of creating the deliverable) is performed.

To methodologies -> how the ‘work’ is performed
to a PM Framework -> how the ‘control work’ is performed
to a Project Life Cycle -> how these two work together.

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103
Q

9.5 Agile

A

1) Agile is both
* the way the work is performed - Methodology
* the steps a project goes through - Life cycle

2) Combines iterative and incremental

Example:
Product Owner: “This is the product roadmap”
* We’ll deliver a basic smartphone first.
* We’ll then release a smartphone with better memory.
* We’ll then release a asmartphone with a better camera.
* We’ll then release a smartphone with lots of apps

AND we’ll iterate each of these releases.

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104
Q

9.6 Project Management Framework

A
  • Defines
    * the work performed to CONTROL the work of the deliverable.1) THE TEAM performs the work.
    This creates the deliverable.2) The PM leads the Project management
    This controls the creation of teh deliverable (the ‘work’)3)This leads us 1:21 !!!
    To methodologies -> how the ‘work’ is performed
    to a PM Framework -> how the ‘control work’ is performed
    to a Project Life Cycle -> how these two work together.
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105
Q

9.5 Scope

A

Scope -> My how and my what

- Project Scope
  HOW we will create the deliverable - The work required
      measured against the plan 

- Product Scope
  WHAT we will have at the end - The Deliverable	
      measured against the requirements

Deliverable and work required to create it.

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106
Q

9.10 Scope Management Plan / Scope statement ( Agile)

A

The Scope Management Plan (scope management piece of the PM Plan) discusses approval of the deliverable.

In the charter,
- a high level understanding of acceptance is documented
In the scope management plan
- a discrete (step-by-step) understanding is documented.
* THIS is integrated into the scope statement and will be
brought into the PM PLan
=====================
* How we will (Predictive)

1) Identify requirements
2) integrate requirements into a scope statement
3) decompose the scope statement into a
work breakdown structure (WBS)
4) Construct our Scope Baseline

5) Control scope
6) Validate Scope

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107
Q

9.11 Control scope / Validate Scope

A

If our project is ‘let’s bake cookies:

Control Scope -> “Do we need to change temperature, time, recipe?”

Validate Scope-> “Are the cookies done?”

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108
Q

9.12 Requirement

A

a project ‘must-have’

SMART
	Specific
	Measurable
	Achievable
	Realistic
	Timely/Time-bound
==================
1) PRODUCT requirements:
'The box must be 20x20x20 cm'
		'The box must be black'

2) PROJECT requirement
The box must be complete
before January.

109
Q

9.13 Deliverable

A

Product a ‘thing’
Service an ‘action’
Result an ‘outcome’

110
Q

9.14 Scope baseline / Backlog

A

Predictive: a Scope Baseline
Baseline: “My initial (scope) estimate, used for further planning and control.
This WILL be approved.

Includes
* Scope Statement
* Work Breakdown Structure (WBS)
* WBS Dictionary - extra scope details organized
to assist in further planning and control

Agile: a Backlog
The ‘remaining work’at the beginning of the project:
ALL the work constantly changes

111
Q

9.15 Tolerance

A

a QUALITY Term
Acceptable variation.

Requirement Tolerance Quality Metric
16.3 cm diameter +/- 1 cm “16.3 cm, +/- 1 cm”

112
Q

9.16 Quality Metric

A

Quality Metric = Requirement + Tolerance

Quality Metric = define my product specifications

I also have PROJECT specifications
‘We need to be done by January, +/- 1 month’

113
Q

9.17 EEFs

A
Enterprise Environmental Factors
	* We can't control these
	* They WILL impact the project.
	* We MUST consider them, build
	  them into the project.
114
Q

9.18 OPAs

A

Organizational Process Assets
* Organizational process documents
Standard Operating Procedures
Knowledge bases (LESSONS LEARNED)

- We NEED to consider -
	- they improve project success
	- they keep us from 're-inventing the wheel'
115
Q

9.19 Focus Groups

A

a ‘subset’ of my stakeholders

who can then provide a small subset of requirements and needs, and objectives, and perceptions…

116
Q

9.20 Experts

A

provide expertise for the planning and performance of the project

117
Q

9.21 Benchmark

A

an initial, rough order of magnitude estimate

used in early planning and analysis

(something to start with and replace as soon as we have more information)

118
Q

9.22 Assumption

A
  • a planning factor
  • CONSIDERED to be real, true, certain
  • WITHOUT proof.
119
Q

9.23 Proof / Estimate

A

‘estimate’ :

	* I collect enough (and the correct) data
	* I provide a reasonably thorough analysis
	* I generate a reasonably accurate forecast

	They can be 	HIGH LEVEL	(rough order of magnitude)
				DEFINITIVE	(actual actions and steps)
120
Q

9.24 Good Practice

A

“We discovered a good way to do this.

If you do it this way, you can expect a better than normal outcome.”

This can be shaped by (“Tailored”)

Organizational preference	(the organization has 'their way')	
Business Requirement		(finance, legal,
121
Q

9.26 Finite / Infinte GAME

A

“I win, you lose.” This means I get more than you.
I’m happy, you’re miserable.

'Finite' Game		   'basketball, football'
 ==============
"Let's work  together."	This means that not only do we
					have a chance on fulfillment,
					we can creaet fulfillment forever.

‘Infinite’ Game.

122
Q

10.1 Voting

A

Unanimity: 100% (we all agree)

Majority: Greater than 50%

Plurality: go with the largest block of voters, even if
not > 50%.
This DOES happen.

123
Q

10.2 Mind Mapping

A

Mind Mapping we have a room of about 20-25 people (for example)
Let’s break them into teams of 5-6
Let’s have each team have their own discussion
After, we bring them together for a review

	We discover:

	* ~ 68% talk about the same things.
	* the rest have unique ideas.

	Using this method we can find and organize
		common ideas
		innovations

Brainstorming is a component of mind mapping.
“coming up with general, ramdom ideas (‘data’)

124
Q

10.3 Diagram / Context

A

Diagram: ‘Graphical representation of information’ (“report”) 1:35
Context: Surrounding, environment information, used for
further analysis, clarification

125
Q

10.4 Use Cases

A

Captures the steps a stakeholder goes through (business).

“The student walks up to the kiosk, searches for and selects
classes, and submits for approval.

126
Q

10.5 Storyboardig

A

‘a report (graphical representation) of a use case - the steps a stakeholder performs…’

“How this stakeholder gets from point A to point B…”

127
Q

10.6 User Stories

A

Captures users, needs, objectives

Template:
“I, as a/n <>, need to <> in order to

128
Q

10.7 Objectives

A

Major purpose/s, needs, outcomes of the deliverable. 1:19
Often represent the over-all project value, benefits.

Objective: “WE need to tie the functions of students, professors, counselors into one integrated system.

129
Q

10.8 Prototype

A

a ‘model’ (simplified version of reality, used to explore and demonstrate a small set of characteristics)

a tool that describes an early understanding of a deliverable in order to demonstrate to stakeholders and elicit (receive) feedback.

130
Q

10.9 Requirements Documentation

A

an organized list of all project requirements

And their necessary characteristics.

131
Q

10.10 Requirements Traceability Matrix

A

‘traces’ requirements through the project life cycle

in order to monitor and control progress in completing scope

132
Q

10.11 Affinity Diagrams

A
Affinity = "similarity"
	Venn diagram (build a university registration system)
Intersection of domains -> venn diagram

data into categories	-> affinity diagram

venn diagram is a unique exuample of an affinity diagram
133
Q

10.12 Requirements Management Plan

A
  • How we will
    • Gather requirements (same as in scope plan)
    • use these requirements in scope planning and control
    • use these requirements in understanding quality
===============
Scope Management Plan 
	* How we will
	* Gather requirements
	* group them into a scope statement
	* decompose that scope statement into a work breakdown structure (WBS)
	* create our Scope baselin
* control scope
* validate scope
134
Q

10.13 Requirements Traceability matrix

A

organizations the requirements in a manner such that
we can trace their (and the scope) completion across the project.
BACKLOG or OUR TRAINING PROGRESS SHEET

135
Q

10.14 Scope statement

A

Requirements

	* box will be black
	* box will be 20x20x20 cm
	* box will be made of same raw material as tool

Scope Statement (p. 154, 6e PMBOK - a good template)

“The box needs to be black in order to match the tool color. It also needs to be made of similar material so it doesn’t cause wear on the tool, and the tool doesn’t cause wear on the box. The box needs to be 20x20x20 cm in order to fit inside the switch housing yet be able to be removed easily.

136
Q

10.15 Work Breakdown Structure

A
  • hierarchical description
  • of the project work and deliverable
  • in order to understand the individual pieces
  • and how they may fit together
137
Q

10.16 Work package

A
  • the most discretely defined
  • piece of work
  • on the WBS
  • # (the lowest level)Scope: HOW and WHAT
    Schedule: WHEN
    Charter: WHY
    Budget: HOW MUCH
    Resources: WITH WHAT
138
Q

10.17 Code of Accounts

A

‘numbering (indexing) system’

used to organize our WBS and its details

139
Q

10.18 WBS Dictionary

A

Associates extra details around the WBS elements

140
Q

10.19 Milestone

A

A control point on the schedule
(0-duration activity)
Used to denote WHEN we are to apply control

141
Q

10.20 Control accounts

A

Each control activity will have: 2:58
Milestone (‘when’ piece of control) - schedule
Control Acct (level of detail) - WBS

142
Q

11.1 Scope baseline

A

Baseline: an initial estimate (scope, cost, schedule)
used for further planning and control.
Includes
* Scope Statement
* Work Breakdown Structure (WBS)
* WBS Dictionary - extra scope details organized
to assist in further planning and control

143
Q

11.2 Definition of Done

A

Criteria needing to be met
so that a deliverable can be considered
ready for customer use

Acceptance criteria work is complete
Definition of done deliverable will be able to function

Do requirements include all the functionality?
Requirements are completeness (SCOPE)
Quality is correctness (QUALITY)

144
Q

11.3 Acceptance Criteria

A
  • a set of conditions
  • required to be met
  • before deliverables are accepted

Acceptance criteria work is complete
Definition of done deliverable will be able to function

Do requirements include all the functionality?
Requirements are completeness (SCOPE)
Quality is correctness (QUALITY)

145
Q

11.4 Definition of Ready

A

Criteria needing to be met
so that a deliverable can be considered
ready for team to start the work

146
Q

11.5 Work Authorization System (WAS)

A
  • a written method that sanctions the right work is done
    in the right order.
  • It also provides direction that enables a team member
    to begin work on a specific activity or work package.
      - provides proper sequence
      - gives authorization

Definition of Ready ‘The team says we have all we need’
Work AUthorization ‘YOu have approval to start (and the proper sequence)

147
Q

11.6 Variance Analysis (2)

A
Variance -> DIFFERENCE
	Predictive:
		* actual to plan
		* Actual to forecast
		* Actual to baseline
Agile:

	* actual to benchmark
	* actual to post-iteration analysis
	* remaining work to completed work
148
Q

11.7 Planning and managing schedule

A

Scope How and what
Schedule When

We will connect resources, durations and sequence to
our decomposed scope elements.

149
Q

11.8 Project Schedule

A

If I can determine durations of activities and
their sequences, I can determine the start of the
first activity and the end of its last activity.
This is going to be my schedule.

Agile: Benchmark
An early assumption (consider to be true withou proof)

Predictive: Estimate

	* I gather reasonable (and enough) data
	* I apply a thoughtful analysis
	* I generate a reasonably accurate forecast
150
Q

11.9 Schedule Management Plan

A
  • How we will
    • decompose our scope into activities
    • determine sequence of activities
    • determine effort and duration of activities
    • build our schedule baseline
    • control and forecast our schedule
151
Q

11.10 Iterative Scheduling with a Backlog (Agile scheduling)

A

reorganized BASED ON PRIORITY during stands up

	* Iterations allow for multiple releases
	* releases can bring early and incremental value
	* Does not work well when each backlog item is 
               dependent on others.
152
Q

11.11 On-Demand Scheduling (Agile scheduling)

A

all the same does not matter on the order - NO PRIORITY
* Each backlog item is relatively the same
* Selection and priority of backlog item is not a priority.
* we treat the backlog as a ‘stack of work’
* When resources are free, they merely grab the next
‘piece of work’ (utilization drives progress)

	* Does not work well when each backlog item is dependent on others.
153
Q

11.12 Feature

A

“A service that fulfills a stakeholder need”
NOT a Requirement.

	Color of box
	Size of box
	"Save" button	(xp metaphor)

Features are defined by:
	users, needs, objectives
154
Q

11.13 Epic

A
  • a large, related body of work (sounds like a phase)
  • intended to hierarchically organize
  • a set of requirements and business outcomes

Scope Baseline Backlog
Phase Epic —- these are included
Work Package Feature —- in the term ‘backlog item’

155
Q

11.14 Phase:

A

a large group of work in a schedule
usually defined through a unique skill

	"Build a restaurant"
	--------------------
	Landscaping		- phase
	Building		        - large group of work
	Kitchen			- defined through its skill
	Bar
	Dining area
	Menus
	Staff
156
Q

12.1 Activity

A

is a specific piece of work, which associates

- duration
- sequence
- resources

Activity List WBS
Activity Attributes WBS Dictionary

‘my extra activity details I capture for further planning and control’

157
Q

12.2 Milestone (2)

A

Milestone point (0-duration) activity
which designates a control.
* ‘here’s where we’ll decide to go forward’
* ‘here’s where we’ll decide to start’
* ‘here’s when we need to send the report’
* ‘here’s when we need to check the mail room’

Completion of activity: is not the control
!!!Confirmation of that activity is the control.!!!
(I’ll place a milestone to ‘control’ or confirm the completion).

158
Q

12.3 Sequencing

A

logical relationship between 2 activities -
“predecessor” and “successor”
====================================
* Mandatory “hard logic” YOU HAVE TO DO
“We have to build the server racks first; then we can place
the servers in the rack.”

  • Discretionary “soft logic”
    ‘We can build the servers at our desk and then take them to the lab, or just build them in the lab…’
  • External (outside the work/project) EEF and OPA
    “We can’t start construction until City Hall has approved Blue-prints.”
  • Internal (inside the work/project)
    ‘… within the team’s control…’
    “As soon as we’ve brought the concrete mix on-site, we can start building the concrete pad.”
159
Q

12.4 Sequencing Relationship

A

1) Finish-Start The start of one activity is contingent (zavysli) on the finish of another.
“NO OVERLAP”

2) Finish-Finish The finish of one activity is contingent on the finish of another.
“May allow for SOME overlap”

3) Start-Start The start of one activity is contingent on the start of another.
“May allow for SOME overlap”

4) Start-Finish The finish of one activity is contingent on the start of another.
“REQUIRES Overlap”

160
Q

12.5 Effort / Duration

A

Effort: Total work required
1 hamburger = 5 minutes
5 hamburgers = 25 minutes

Durations: Length in time from start to end
1 hamburger = 5 minutes
1 cook can cook 1 hamburger at a time…

161
Q

12.6 Risk - Buffer

A

just guess 10% on top
is okay if you do nothing else. It is NOT good practice.
We can get much more accurate…

162
Q

12.7 Reserve

A

The extra cost and time required
if a risk occurs, and I need to respond.”
Reserve: I now have a risk activity I need to add
to my cost and duration estimates.

163
Q

12.7 Reserve analysis

A

The estimation of the cost, schedule

reserve (if a risk occurs, I respond)

164
Q

12.8 CONTINGENCY reserve

A

Reserve for Known + Unknowns

Identified Risks

165
Q

12.9 SCHEDULE MODEL

A

1) Schedule Data Raw data,

2) Project Schedule My ‘running’ (changing) schedule I will
used for comparison to baseline.

3) Schedule Baseline Approved version of schedule model
“My initial (schedule) estimate, used for
further planning and control.” (‘Baseline’)

4) Project Calendar Down-time. Vacations, holidays,
saturday/sunday.
Calendar compares work time to NON-
WORK time.

166
Q

12.10 GANTT Chart

A

Horizontal bar chart
represents activities, sequences, durations and
(Please remember this - ) IMPORTANT
‘Work complete as a percentage’

167
Q

12.11 Critical Path Method

A
  • estimates minimum project duration
    • determines schedule flexibility (and INFLEXIBILITY) on
      various project paths.
  • LONGEST path through a project schedule (network diagram)
    * Represents the shortest possible project (diagram)
    duration
    - assuming activities, relationships, durations
    - the entire project cannot be shorter than CP duration
168
Q

12.12 Float

A

The amount of time I can allow this activity / part of this path to slip AND

		* Not have it impact the end of the project
		* Not have it impact succeeding activities
169
Q

13.1 Smoothing - Resource Optimization

A

Keep resource assignments within pre-defined limits:
Resource limit: ‘Noone will work more than 40 hrs/week (100% utilization)

	Engineer A:	 45% utilized
	Engineer B:	 65% utilized
	Engineer C:	125% utilized

‘How can I move C’s over-utilization to A,B?’
I may not even be able to do it…
“Balancing the workload”

170
Q

13.2 Levelling - Resource Optimization

A

Adjusts activity starts, finishes
Based on resource constraints:

‘Our engineers are only available starting January.
Can we move their activities to Jan? If so….’

171
Q

13.3 Crashing - Schedule Compression

A

ADDING RESOURCES ; FOR CRITICAL PATH ONLY
Shortens duration by adding resources.

this assumes effort can be spread across multiple durations (Duration is impacted by effort and number of resources)

172
Q

13.4 Fast-Tracking - Schedule Compression

A

OVERLAPING ; IN PARALEL
performing previously sequential activities
in parallel (increases risk, complexity)

173
Q

13.5 Program

A

A group of projects
run as a group
in order to gain benefits

174
Q

13.6 Budget VS Cost

A

Budget:

- money set aside to pay for something (our project)	Noun
- the activity of setting this money aside		Verb

Cost:
Actual money spent in performing the work.
‘Money is the gasoline of projects’

175
Q

13.7 Estimating activity costs

A

We’ll estimate the costs
We’ll also estimate the reserve required
- if a risk occurs within this activity
- and the risk and its response generate a cost
“Reserve Analysis”

Estimation (this goes for schedule, cost/budget, resources) 1:26
Capturing the correct (and enough data)
Performing a thoughtful analysis
Generating a reasonably accurate forecast

176
Q

13.8 Estimation - Top-down

A

I perform an analysis at the whole-project level.
‘Here is the project budget estimate’.
Fast, not too accurate. BOSS SAYS HE NEEDS IT IN 15 MINUTES

(2) variations that are top-down.
* Analogous (estimating by analogy, or history)
“uses history”

‘Since similar projects have cost about $65,000,
this project should also cost about $65,000.’

  • Parametric (estimating by history and a little math/parameters)
    “uses history and a bit of math”

‘Other projects have taught us it takes about 10 days to build
1 km of road. This project requires 10 km, therefore should take
about 100 days.’
Parameter -> 1 km road = 10 days duration…

177
Q

13.9 Estimation - Bottom-up

A

I perform an analysis on each activity, and roll
the totals up to a single project total.
Accurate, not too fast.

No variations. Merely Bottom-up.

178
Q

13.10 Accurate Estimation

A

1) Rough Order of Magnitude:
‘Bigger than a breadbox, smaller than a truck.’ 1:34
(-25% to +75% of what we expect the true outcome to be)

2) Definitive:
‘Actual actions and steps’
(- 5% to + 10% of what we expect the true outcome to be)

3) Phased, Phase-based, ‘S-Curve’ 1:38
Not merely the cost,
But also “the cost OVER TIME”

179
Q

13.11 Authorization / Compliance

A

Authorization: Approval
Compliance: Approval, ensures we are following process

180
Q

13.12 Determining the budget

A

estimating the total project Cost (COst/Budget Baseline)

In scheduling planning,
we applied reserve analysis at the activity level.

In budget planning 2:00
WE apply reserve analysis at the activity level AND
at the Budget level

181
Q

13.13 Cost Baseline

A

My initial cost estimate
used for further planning and control

Contingency reserve (reserve for identified risks)
IS part of the budget. known unknowns
This is what we determined in reserve analysis

Management reserve (reserve for UNidenfitied risks)
IS NOT part of the budget. unknown unknowns
This we’ll discuss in risk management.

182
Q

13.14 Funding Limit Reconciliation

A

“What is my foreseen budget across this future length of time?”
‘Income’
“What are my foreseen costs across this future length of time?”
‘Outgo’
“What is the difference?”

183
Q

13.15 Quality

A

Scope asks “Are we completing all the work?” Completeness

Quality asks “Are we doing the work correctly? Correctness

fulfillment of requirements Completeness (scope)
Degree to which ‘tolerance’

184
Q

13.6 Requirement

A

a hole in the top of the box must be 16.3 cm diameter. (scope)
It may be +/- 1 cm (tolerance/quality)

185
Q

13.7 Tolerance

A

-> ‘acceptable variance’ (precision) 2:25

16.3 cm +/- 1 cm => “quality metric”
scope quality

186
Q

13.8 Standard

A

model, general consent
(PMBOK) -> this is good practice
(Telecordia standard)
‘When you tie data cables down to the ladders,
* every 18 inches
* if you use waxed thread, here are good
knots for you to use.’

187
Q

13.9 Regulation

A

government-mandated compliance
(Telecordia standard)
‘when you drill a hole in a wall to run a cable,
you WILL fill the gaps with smoke-stopping putty
or a metal plate.’

1) De Facto(R)	"of the facts"
		widely accepted, adopted through use.
		'through the nature of the work' (example)

2) De Jure(R)	"of the jury/law"
		"mandated by law"
		'OSHA 30 (occupational safety and health)'
188
Q

13.20 Verified Vs Validated

A

Verified: determining the quality expectations and requirements
are in place. (“this deliverable is correct”)
Validated: determing the scope requirements are in place
(“this deliverable is complete”)

	Deliverable:		- quality testing  
	'control quality' 	- "verified" deliverable -
	'Validate scope'	- "accepted deliverable  -
	'Close Project / Phase'
189
Q

13.21 Cost of Quality

A
  • Doing work correctly costs (conformance cost)
    • Doing work incorrectly costs (nonconformance cost)
    Cost of quality = Conformance + NonConformance Costs

Conformance Costs:
* Prevention: (activities we build into the plan or add as lessons learned) - Training, time to do it right
* Appraisal: (activities we perform for our inspections)
Testing, inspecions

Nonconformance Costs:

  • Internal (through the project’s life) - Rework, Scrap
  • External (after the end of the project - Liability, Warranty
190
Q

14.1 Inferior work

A

(Defect)

Requirements with tolerance - ‘specificiations’ -> quality metrics

Outside of our quality metrics = ‘outside our specification’
“defect”

191
Q

14.2 Guarantee / Warranty / Liability:

A

1) Guarantee:
“a formal assurance that certain conditions will be fulfilled,
especially that a product will be of a specified quality” (‘within specification’)

2) Warranty:
“a written guarantee promising to repair or replace an article if necessary within a specified period.”

3) Liability:
“Being responsible, especially by law.” - I broke something while I am working

192
Q

14.3 Audit

A

a form of inspection -
- I go back and confirm we are following process and procedure
(quality, risk, contracts)

193
Q

14.4 Quality Management

A

1) Plan Quality
* ‘Quality is PLANNED in, not bolted onto the side
as a series of inspections.’

2) Manage Quality    1:19
	Quality Assurance
	Continuous Improvement

3) Control Quality
	Quality Control
194
Q

14.5 Quality Assurance

A

Audit the Process

!!!PRECISION!!!: Are we following the process to a good enough level?
Archery - Are the arrows all hitting a certain part of the target?
“repeatability” - The process works.

Quality Assurance -> “We audit the process
Quality Control -> “We inspect the deliverable & data

195
Q

14.6 Quality Control

A

Quality Control
Inspect the deliverable and data

!!!ACCURACY!!!: Is This arrow close to or at the target’s center?
Archery - is one arrow close to the center?

Are we doing the work correctly?
Did we apply approved changes, and are they behaving as expected?
Do we have our defects?

Repeatability is required, almost before accuracy.
If you’re accuracy once, without repeatability, your accuracy may have little value.

Quality Assurance -> “We audit the process
Quality Control -> “We inspect the deliverable & data

196
Q

14.7 Statistical Sampling

A

1) Am I collecting enough information?
2) Am I collecting the ‘right’ information?

Attribute Sampling -> Simple 'yes or no'
	"Is this a defect?"

Variable Sampling  -> 'Ranged' analysis (tolerance)
	"Is this within specification or tolerance?"
197
Q

14.8 Quality Reports - Ishikawa / Fishbone / Cause & Effect !

A
  • Ishikawa / Fishbone / Cause & Effect 1:35
    • Good for brainstorming
    • Good for Root Cause Analysis (RCA)
198
Q

14.9 Quality Reports - Scatter Diagrams !

A
  • Scatter Diagrams 1:41
    • 2 variables
    • correlation
199
Q

14.10 Quality Reports - Control Charts !

A
  • Control Charts 1:46
    • control and specification limits 1:51 pozri obrazok!!!!
    • “rule of 7” - 1:52 !!!1:54 pozri obrazok BELL CURVE
200
Q

14.11 Histogram / Pareto

A
  • Histogram “Historical Diagram” 2:14
    • vertical bar chart
    • compares frequencies across categories
  • Pareto (80/20)
    • histogram
    • categories organized by frequency DESCENDING.

If I find my ‘critical few’ defects,
I can focus my efforts where they will generate the greatest benefit.

201
Q

14.12 Integration

A

Director:
‘I want it now’ time constraint
‘I want it cheap’ budget constraint
‘I want it fancy’ scope constraint

What do you say?
	* "Thank you." (they gave you something - information)
	* "Please select 2."
		By selecting 2, the other is defined.

Constraint	a limiting factor.
They don't only impact the project
They can and will impact the other

YOU get to figure out how they all work together
	And then, you also need to consider -
		quality, risk, contracts
		my team, stakeholders, communications
202
Q

14.13 PM Plan

A
  • How we will
    • Perform the work
    • monitor and control the work
    • close the work

Integration ties this together:

Process groups 2:34
Initiating gaining project approval
Planning developing a robust plan
Executing doing the work and creating data
M&C capturing, inspecting, and addressing
change / risk
Closing transition of deliverable and project
archiving

Knowledge Areas
scope, shcedule, cost
quality, risk, contracting (procurement)
resources, stakeholders, communication
Integration

203
Q

14.14 Project Management Information System (PMIS)

A

System (collection of tools, processes, procedures)

Helps me manage my PM Process outputs (artifacts)

	* project documents
	* Work Performance (data, information, reports)
	* deliverable in various states
	* multiple updates

Sharepoint

* Who has access
* Who can make changes

Shared network drive

* Who has access
* Who can make changes

My local computer Project folder

* Who has access
* Who can make changes
204
Q

14.15 Adapt / Tailor

A

Organizational Preference (organizations have “their way” of doing things)

Business Requirement (HR, Finance, Purchasing, legal tell us it has to be this way)

205
Q

14.16 Change

A

Change WILL be formal.
Predictive WE’ll have a formal process for integrated change.
Agile We’ll have a formal understanding of the use
of meetings and feedback to continously support
change

206
Q

14.17 Change Management Plan

A

How we will

* Receive changes
* Document changes
* determine impact of changes (2 ways)
* dispense with changes (approved, rejected, deferred)
* apply approved changes
* confirm applied changes are behaving as expected (quality control)
207
Q

14.18 Configuration

A

The deliverable MUST be

    * consistent	- provides the same result every time used (precision)
* operative	- provides the function it was defined for

What are the items (and what items do I need)
in order to demonstrate?

* My tests
* My inspections
* My version control

EVERY project has some level (formality) of configuration and configuration management

Generally
The team owns the configuration management of the deliverable
The PM owns the configuraiton management of the project

  • how do I test? What are the results and how do I use them?
  • how do I inspect? What are the results and how do I use these?
  • how do I use version control to ensure consistency and functionality?
208
Q

14.19 Disciplined Agile

A
A combination ('integrated') agile, traditional, hybrid "toolbox".
	it includes agile and predictive tools.

As you progress through the project
- when you discover agile work, you apply agile tools
- when you discover predictive work, you apply predictive
tools

Under disciplined agile,
The methodology does not define agile or predictive
the work in front of you does.

This is the mindset for which the 7e PMBOK was defined

1) agile <=> 'changeable'
2) agile <=> 'self-organizing' (the work is defined by the 
                         team,
		therefore the tools are selected by the team)
209
Q

14.20 Scrum of Scrums

A

Scrum -> ‘daily standup’
- we may have multiple parallel features / epics
- each will have its scrum
- we (or whoever is defined the owner) will
integrate the results together
- this is taken back to the backlog
- and adds, removes, modifies, re-prioritizes backlog items

	All this activity is called 'scrum of scrums'
	This may be formal or informal.
210
Q

14.21 Scaled Agile Framework

A

Looks at this problem -
‘How can My organization implement agile effectively?

2 ways to bring new processes into a business
	1) do it all in one major implementation
		'fork-lift'
	2) do it in pieces (piece-meal)

SAFe: 'Let's see what the organization is prepared for,
and implement those pieces:
	* possibly - self-organizing teams
	* possibly - scrums and ceremonies
	* possibly - integration of stakeholders into the project
211
Q

15.1 Planning and Managing Procurement

A

Includes

* Finance
* Legal
* Purchasing

Contract represents
* a commitment / obligation
* a relationship
* an exchange
	- buyer	The entity who gives fair value in exchange
	- seller The entity who provides product, service, 
               result

We will be our seller's sponsor

* You will take a piece of your scope
* You will build a Procurement Statement of WOrk
* You and your team will negotiate a contract
* Your seller will create that part of the scope
	The seller will be the PM for their project
	You will be the PM for your project
	You will be the sponsor for your seller's project
* You will receive this scope and re-integrate back into the project.
212
Q

15.2 Purchase decision

A

1) developing the project charter (project approval)
“Will outsourcing negate this project?”
‘If we have to outsource, is this project even feasible?’

2) developing the plan (the actual work)
“What pieces do we want to do or not?”
“How will we find the best seller to do the work?”
“How does this fit in with our scope, schedule, budget,
risk, quality…?”

213
Q

15.3 Statement of work

A

1) PROJECT Statement of WOrk (5e PMBOK)
“Narrative” Description of the deliverable and work
required (scope)
even higher level than ‘high level’ (charter level)
- an input into developing the charter.

2) PROCUREMENT Statement of WOrk
Descriptive agreement of work and work details
in the contract, in order to agree and commit to the
relationship and work.
Based on contract, this may be high level, or in great
detail.

214
Q

15.4 Price

A

Cost - the budget required for the seller to complete the contract.
Fee - the seller’s profit
Risk - the reserve required to protect the results of the work
under contract.
——
PRICE = cost+fee+risk

215
Q

15.5 Roles in Purchasing

A

Role Responsibility

1) Legal own the interpretation of (contract) law

2)Procurement own the purchasing actions and the contract dispensat (they ‘close’ the contract - ensure the exchange has occurred, formally announcing closure, archiving
all documents as per corporate rules)

3)Finance own the actual exchange of fair value for reception of deliverable

4)PM owns the Procurement Statement of WOrk, relationship with the seller, technical (procurement statement of work)
audit of the contract

216
Q

15.6 Level of authority of a PM

A

‘Consulting PM’ owns the business aspects

‘Organizational PM’ owns the scope, schedule, risk, quality
THe organization owns the legal,
procurement, finance details

217
Q

15.7 Qualified Vendors Vs Preferred Vendor

A

‘Qualified’ Vendors’
They have gone through some process to evaluate their
capabilities of delivering a general level of service,
product, result.

‘Preferred Vendor list’
is a list of ‘qualified vendors’. Purchasing may keep this
list for commonly contracted work.

218
Q

15.8 Vendor bidding

A

Two concepts are arching over this discussion:

* Fair and Equitable
  all entities capable of the work have an equal chance to get 
       it

* 'Public' 
  no decisions behind closed doors,
  information is shared equally
219
Q

15.9 Vendor bidding steps

A

1) Request for Information (RFI)
“We are interested in outsourcing this work. If you are interested in doing it, please fill out this packet and provide it back by this date…”

2) Request for Proposal (RFP)
Buyer: “Please tell us how you expect to go through the work.”

3) Request for Quote (RFQ) (may be part of Proposal)
Buyer: “Please tell us the price.”

4) Request for Bid (RFB)
Buyer: “I’m giving you one last chance to be competitive on cost…”
This is *** NOT the buyer attempting to drive down cost.

220
Q

15.10 Types of contracts

A

FIXED
‘WOrk well known, buyer doesn’t have to participate?’
COST
‘Work unknown, buyer has to influence and participate’
TIME AND MATERIALS
‘Buyer needs an expert for a short amount of time’

Difference between cost and T&M
Cost: work is unknown, the seller is handling all the work
T&M: work is unknown, the seller is a small component of the work

1) Fixed, Fixed Fee, Lump Sum
The work is well known, and the seller doesn’t need a lot of input from the buyer. <>

The price is in the contract - it will Not change.
If the seller spends too much, the buyer doesn’t worry.
If the seller spends less, it’s to the seller’s benefit.

!!!!!The risk of cost is on the shoulders of the SELLER, not the buyer.

2) Cost, Cost reimbursible, Cost plus
The work is generally known, but details may be uncertain.
<>

Buyer: “I need a fence, but don’t know the size and material.
Can you help me with decisions and the work?
1) I’ll reimburse you for cost.
2) I’ll pay you a fee (profit).

!!!!!The risk of cost is on the shoulders of the BUYER.

!!!!!share ratio!!!!! in case of lost for material price

3) Time & Materials
Buyer: “I need an expert, and I need them for a certain amount of time. I’ll pay you hourly/weekly/monthly, and you will become a member of the team for that time.”

221
Q

15.11 Controlling procurements

A

1) auditing the contract (2nd of 3 places where ‘audit’ shows up)
2) Managing the seller’s performance
3) reviewing Approved change requests and validating against the contract

222
Q

15.2 Procurement - closing the project

A
  • the PM as the sponsor accepts the work under contract.
  • procurement manager (purchasing dept)
    - alerts finance
    - alerts legal
    - archives and announces closure of the contract
223
Q

15.13 Contract changes

A

The contract itself will have a term discussing how changes are made.
Claims may be announced -
Claim: an ‘open item’ that must be closed
before the contract is closed.

Claims administration is the process we adhere to.
Purchasing and legal will have the business requirements
necessary for you to perform and understand contract change.

224
Q

15.14 Dispute resolution

A

1) We’ll try to resolve it between us both
2) We’ll hire a decision-maker
3) We’ll go to court.

Minor changes - mutual agreement

225
Q

15.15 Waiver foregoing or “giving up” a right.

A
/// Vzdat sa ///
For example

The buyer requests the seller waives their right to copyright, trademark…

226
Q

15.16 Governance

A

Authorizations, oversight, approvals, signatures…
We need high rank authority
We need specialists

Sponsor is the primary role for governance

	* Provide funding, resources
	* Provide ***AUTHORIZATION***

Approval, oversight, validation and verification necessary for the business preference and requirements.

227
Q

16.1 Closing out the project

A
  • Completion of the work (‘validate scope’)
    User Acceptance Testing
  • Administrative closure (‘close project / phase’)
    Client acceptance of the deliverable and its function

Closing a project is a continuous project
Mise en place -> “Everything in its place”
we clean as we go
we organize for the work at hand

228
Q

16.2 Definition of Done Vs Acceptance criteria (Closing project)

A

Definition of Done
Criteria needing to be met
so that a deliverable can be considered
ready for customer use

 the customer / stakeholder/end user can use the 
     deliverable
* fulfillment of satisfaction
Acceptance criteria
	deliverables are accepted
	they meet requirements and specifications
	scope and quality expectations
	* fulfillment of quantifiable metrics
229
Q

16.3 Lessons learned register Vs repository

A

Lessons learned register

* project document
* provides me the lessons learned
* to benefit my project

Lessons learned repository

* knowledge base
* provides lessons learned
	- for other projects' benefit
	- the organization's benefit
230
Q
  1. 4 Risk Vs Issue
A

Issue Something that has occurred, is occurring
may impact

Risk Might occur (future event) and if it does
will impact

		may have negative impacts	Threats
		may have positive impacts	Opportunities
231
Q

16.5 Contingency plan

A

Plan A: cool down tool when it reaches a certain temperature -contingency plan

Plan B: clean up tool if it overheats - backup plan

232
Q

16.6 Risk Management Plan

A
  • How we will
    • Plan our management of risk
    • identify our risk/s and trigger/s
    • prioritize our risk/s and trigger/ Qualitative risk analysis
    • ‘further analysis’ Quantitative risk analysis
      for risks that require
    • Respond to Risk
    • Monitor risks
      • to observe risks/triggers occurring
      • continuously improve
233
Q

16.7 Risk Documents

A
  • Risk Register
    • captures and prioritizes all our project risks
  • Risk Report
    • organizes and analyzes general project risk
      and highest priority risks
    • Primarily for communication
234
Q

16.8 Risk can be classified

A

1) Known Unknowns
Identified risks

Identified, but they have a less than 100% probability of occurring

2) Unknown Unknowns
UNidentified, and have a less than 100% probability of occurring

A risk that occurs (known or unknown) is now an issue.

235
Q

16.9 Risk Tolerance

A

“The degree of uncertainty (risk) that an
organization or individual is willing to withstand.”

	- Let's establish our tolerance:
		* let's set up an account
		* Place $15,000 into it

We can now ‘tolerate’ or withstand up to two occurrences or
$15,000 of this risk.

236
Q

16.10 Risk Appetite

A

The degree of risk willing to accept
in anticipation of a reward
(REWARD) marks appetite

I have a potential reward	(opportunity)
How much threat am I willing to carry on the chance
	I will receive that reward?

			Cost:	Threat
			Benefit:   Opportunity

'when opportunity is less than threat, your
appetite for that opportunity should drop...'
"Business risk": when opportunities = threats
237
Q

16.11 Risk Threshold

A

“A measure of the level of risk (exposure)
above which action must be taken to address risks proactively, and below which risks may be accepted.”

	- there is an agreed upon line:
	- Below this line, I'll accept the risk ('do nothing')
	- Above this line, I'll take further action ('further analysis')
238
Q

16.12 Risk prioritization - Risk Priority Number RPN

A

Probabylity? Impact? Both.
Category? We also use this.

What we want is a combination of % and impact
'Risk Priority Number' (RPN)	= % * Impact    2:09

RPN = .15 * 7000 = 1050.
239
Q

16.13 Expected Monetary Value (EMV)

A

1) when our impact is in a $$$ metric, RPN => “Expected Monetary Value” (EMV) 2:11

2) we can calculate a total project risk by combining individual risks.
		Risk			EMV
		A			-	1000
		B			-	 250
		C			+	2000
		-------------------------------------
				Total EMV	+ 750
Individual risks go into the risk register         1:12
Total Risk (EMV)	goes into the risk report.
240
Q

16.14 Risk Responses to Threats

A

1) Avoid Change the plan build somewhere else.

2) Transfer Hand over to a 3rd party Insurance,
hire a local property manager

3) Mitigate Minimize %,impact, both Place sandbag walls around buildings Residual risk * water may go over sandbag walls 2:30
Secondary risk * Sandbags may become airborne in high winds

4) Accept Do nothing 2:32
when the RPN is very very small (‘accept’)
when the RPN is very very large (when response has no impact)

5) Escalate Hand over to approprate decision-maker
Raise to appropriate decision-maker
Raise $10,000 risks to $10,000 decision-makers
Raise $1 MM risks to $1 MM decision-makers

When you use mitigate, ALWAYS consider 2:30
Secondary risk A new risk arising from the response
Residual Risk A little of the original risk left over

241
Q

16.15 Risk Responses to opportunities

A

1) Exploit Change the plan
Move up the schedule for designing menus and training staff

2) Share Bring in a 3rd party
Hire a catering agent

3) Enhance Maximize %,impact,both
Invest in proactive marketing, aligning the restaurant with sports interests

4) Accept Do nothing
when the RPN is very very small (‘accept’)
when the RPN is very very large (when response has no impact)

5) Escalate Hand over to approprate decision-maker
Raise to appropriate decision-maker
Raise $10,000 risks to $10,000 decision-makers
Raise $1 MM risks to $1 MM decision-makers

242
Q

17.1 Business Value

A

Benefits, REVENUE, PROFIT

	Quantifiable:	I can measure it (SMART - acronym)
	Specific
	Measurable
	Achievable
	Realistic
	Timely/TIme-bound
Intangible (non-quantifiable)
"Community good will"
	What we do with value 
	We Plan for it
	We identify it
	We measure it
	We analyze it
	We take actions / make changes on increasing it.
243
Q

17.2 Product Roadmap

A

a strategic overview of the product’s life

244
Q

17.3 Minimal Viable Product (MVP)

A

How much functionality do I really need for an early release?

Enough to demonstrate basic functionality.

It works, I can make calls, I can text.

MVP - Functionality
MBI - Value

245
Q

17.4 Minimum Business Increment (MBI)

A

How much value do I really need for an early release?

Enough to demonstrate basic value

     'I like the way this phone feels and looks - it's 
 an expression of who I am.'

MVP - Functionality
MBI - Value

246
Q

17.5 Communications

A

Communications: 2-way exchange of information
Intentional, unintentional
‘Even though we stop saying words, our bodies
continue to converse.’

90% of our work is invested in ensuring proper communications
* Planning communications
* ‘doing’ communications
* Monitoring communications and making appropriate
changes

A stakeholder is “unhappy*

We make things MORE FORMAL in order to clarify.
Acknowledge - PM resposibility
No feedback = No information

247
Q

17.6 Communication Noise

A

Something that gets in the way of the transition of the message.

		* large room
		* noisy machine

Something that gets in the way of interpretation of the message.

		* tired, distracted, headache
		* multitasking
248
Q

17.7 Communication Methods

A

Push - I ‘send information out’ for you.
Emails, phone calls, distribution lists.
I can do this in a timely manner (it’s good for urgency)

Pull - I post information for access.
SharePoint, a shared network drive.
I can do this, and you can receive at your convenience
(it’s good for easy access)

249
Q

17.8 Stakeholders’ engagement

A

1) Unaware Unaware of work Unaware of change
2) Resistant Aware of work Resistant to change
3) Neutral Aware of work Neither resistant nor supportive
4) Supportive Aware of work Supportive to change
5) Leading Aware of work Actively participating in success

1) We desire ALL stakeholders to be supportive
2) We would like one or two (with high levels of authority)
to assist us as leading (assisting with roadblocks)

How do I influence?
Negotiation
Debate

250
Q

17.9 Project Artifacts

A
Project Documents
Work Performance (data, information, reports)
Deliverable (in its various state/s)

We manage our artifacts in a
Project management Information System
PMIS A system…
That allows us to organize our project artifacts

251
Q

17.10 Configuration Management

A
  • the tests, inspections, and version control
  • that assist with confirming that the deliverable
    can repeat its function and is also within expectation.
252
Q

17.11 Change Control Board

A

Deep, deep experts
Responsible for analysis
and dispensation of certain changes
on certain projects.

1) Receive
2) Document
3) Analyze
4) Dispense ( Approve/Reject/ Deffered)
5) Apply and analyze the approved change

====================

*) Document the change request
This is the only evidence you will have of
rejected, deferred changes.

*) Analyze the change request
(2 levels)
1) is the impact high, or inconsequential?
if the impact is truly low, the change may not be
necessary?

		2) Impact to scope, schedule, cost?
		   impact to quality, risk, contracts?
		   impact to team/resources, stakeholders, 
                   communication?
		   impact to integration?

*) Dispense with the change request
APproved - IS necessary
Rejected - Is NOT necessary
Deferred - “Not today”

*) Apply and analyze the approved change
Taken to the work (the team) and placed in the deliverable
AND
it is then later validated that
this change did occur
and it is providing the expected results

253
Q

17.12 Managing Issues

A

Managing Issues:
Issue Has occurred May impact Today
is occurrng

Risk Might occur If it does Future
Will impact

If a risk occurs, it is now an issue.

Managing issues:
	We assess the issue
	We determine the appropriate response
	This may or may not generate a change request

	The change request system will assist us
	in determining the effectiveness of the change
	to the impact of the issue.
254
Q

17.13 Knowledge Management

A

Lessons Learned

Explicit knowledge
I can create checklists, prompt lists,
and other material to guide you 
through this knowledge.

Tacit knowledge
'Muscle Memory'
'We've always just done it like this'
'Habits' and 'Culture'

The valuable information is in tacit knowledge.
It's your job to ensure the team and experts
can assist in converting tacit to explicit knowledge -

This is what we call "lessons learned"

Lessons Learned Register

	* a project document
	* captures lessons learned
	* for the benefit of this project
	Lessons Learned Repository
		* a 'knowledge base' (PMO, organization or just between PMs)
		* captures lessons learned
		* for the benefit of other projects
		  and to improve the business
255
Q

17.14 Knowledge Management Vs Information Management

A

Knowledge Management
connecting people to people
in order to grow new information
meetings, collaboration, brainstorming, etc etc etc

	Information Management
		connecting people to information
		in order to grow information
		google, wikipedia
		books, research, articles
We are responsible for ensuring access to both knowledge and information management.
256
Q

18.1 Tuckman Model/Ladder

A

1) Form: we are individuals. We are not yet relaxed around each other.
2) Storm:We let down our guards and start sharing our opinions.
3) Norm: Where the true power of the team starts emerging
4) Perform: Where the team starts improving and focuses on the deep issues together
5) Adjourn: We do this with respect, with the desire that we want to work together again.

257
Q

18.2 Earned Value / AC / PV / BAC

A

1) Planned Value:
Value of our work over time (prediction/forecast)
A plan we have at the beginning.
“Value of planned work / across time.” (PV)

2) Actual Cost:
‘Realized cost incurred’ / “Actual money spent”

3) Earned Value:
‘Work completed in terms of the cost of the work’

		Activity:		$5,000.
		50% complete
		"Earned" value		.5 * $5,000 = $2,500.

	Planned Value = $5,000
	Earned Value  - $2,500

Budget At Complete (BAC): 1:16
“Planned Value for my entire project”

We want to compare EV to PV for our schedule analysis
‘ahead/behind schedule’

We want to compare EV to AC for our budget analysis
I want to understand how much work I got done by spending this much money.
money is gasoline for projects.

258
Q

18.3 Schedule Performance Index

A

EV/PV What is the ratio of complete work to planned work?
miles/hr, km/hr (velocity)
We are progressing at xx% of planed rate.

	EV = 25k of work
	PV - 30k of work	We are progressing at 83% of 
                                             planned rate
				         We are behind schedule
259
Q

18.4 Cost Performance Index

A

EV/AC What is the ratio of complete work to money spent?
miles / gal, Km/L ‘fuel efficiency’ (cost efficiency)
of my project

	EV = 25k
	AC = 32k	We Are receiving .78 of work / effort
			for every $1 spent.
			WE are over budget by 7k.
260
Q

18.5 Estimate At Complete (EAC) / Variance at Completion (VAC)

A

Forecasting:
Estimate At Complete (EAC)
Based on progress to date,
what does the end of the project look like?

	Variance at Completion (VAC)
	How far off is my forecasted total budget from my initial estimates?
		EAC - BAC (Budget At Complete)
  • ONE * way of estimating EAC
    ‘Assume our current CPI (like .78) is what we normally run at.
    How does that impact our total project budget?
      .78			EAC = BAC/CPI = 40k/.78	=> 51,282   BAC = 40k			VAC = 11,282 *Over Budget*

You can do this in a very detailed manner (definitive)
You can do this at a pretty high level (rough order of magnitude)

261
Q

18.6 Estimate To Complete (ETC)

A

Estimate To Complete (ETC)
“How much more money do we need to spend to complete the project?

EAC	my total budget revised estimate (TOTAL BUDGET)
ETC	how much more I need to spend

EAC can be considered (what I spent) + (what I expect to spend)

262
Q

18.7 Issue

A

Obstacles ‘I can go arround, over, under, through’ Green
Impediments ‘ slows down work’ Yellow
Blockers ‘stops work’ Red

	Risk	may happen (future)	will impact
	Issue	is here    (now)	might impact

Once a risk occurs, it is now an issue.

* unplanned risks that occur
* planned   risks that occur
263
Q

18.8 Compromise

A
  • partial satisfaction
  • at the cost of concession
    ‘give a little, get a little’
    “Meet in th emiddle” (split the difference)
    NEVER split the difference.
264
Q

18.9 Business Value Metrics / Present value

A

Present Value (PV) ‘Today’s value’

Project A:		45,000
Project B:		65,000
265
Q

18.10 Business Value Metrics / Net Present value

A

We take the entire life of the product
we take each year’s Present value of costs, benefits
we add those together and compare.
NVP = sum(PV(Costs)) compared to sum(PV(Benefits))
+ :-)
- :-(

266
Q

18.11 Internal Rate of Return

A

discount rate: 2:37
at some future time, the benefits will equal costs (break-even) what rate do I need to apply in order for this break-even
to occur at this point in time?

267
Q

18.12 Return On Investment (RoI)

A

What is the size of my profits relative to the size of costs?
RoI = PROFIT / Costs
‘we expect a 26% return…’

268
Q

18.13 Net Promoter Score (NPS)

A

Net Promoter Score (NPS)
35% consumers really happy
Compare 15% really sad
45% really sad

When we look at our surveys,
we observe the difference between satisfied and dissatisfied, not just observing satisfied.

269
Q

18.14 Monte Carlo

A

We add risk in a random manner to generate a range of potential outcomes with an associated probability
Instead of “This will take 5 weeks”
we determine “This has a 65% chance of
taking between 3.5 and 6 weeks…”