PMP Exam Flashcards
Pass the Exam
Product definition
is an artifact, is quantifiable, and can be either an end item in itself or a component item. Additional words for products are materials and goods.
Triangular & Beta distribution
Used to calculate activity duration, use three estimates. Expected Duration = (O + M + P)/3
1) Optimistic Estimate
2) Pessimistic Estimate
3) Most Likely Estimate
PERT
Program Evaluation and Review Technique
Most likely estimate by giving weightage
Expected Duration = (O +4M + P)/6
Low standard deviation and High standard deviation
Low: data points are close to the mean of the data set (average)
High: data points are spread out across the board
Standard deviation equation
SD= (Pessimistic Value - Optimistic value)/6
Variance equation
SD^2
standard deviation squared
Critical Path
Longest path duration
Has zero float so activities on it will also have zero float
Total Float
The amount of time the tasks on the non-critical path can be delayed without affecting the project schedule ; also known as float or slack
Late finish - early finish
Free Float
the amount of time that an activity is delayed by without affecting the early start of the next activity
Free Float of Activity X = Early start of next activity - early finish of activity x - 1
Early Start
the earliest time when an activity can be started
Early Finish
The earliest time when an activity can be completed
Late Start
The latest time when an activity can be started
Late Finish
The latest time when an activity can be completed
Activity Duration & equation
the amount of time taken by an activity on a network diagram to complete itself
Duration = early finish - early start + 1
OR
Duration = late finish - late start + 1
The precedence diagram activities have four types of dependencies, what are they?
Start to Finish - The second activity cannot be finished until the first activity starts (least common)
Finish to Start - The next activity cannot be started until the first completes (most common)
Start to Start - the second activity cannot start until the first activity starts, both start simultaneously
Finish to Finish - the second activity cannot finish until the first activity finishes, both finish simultaneous
Schedule Variance
tells you whether you are ahead or behind of schedule.
SV = Earned Value - Planned Value
If a schedule variance is positive you are…
ahead of schedule
If a schedule variance is negative you are
behind schedule
If a schedule variance is 1 you are _ When a project is completed the schedule variance becomes _
on schedule
zero
Cost Variance
tells you whether you are under budget or over budget
CV = Earned Value - Actual Cost
If a cost variance is positive you are
over budget
If a cost variance is negative you are
under budget
If a cost variance is zero you are
on budget
Schedule Performance Index
Tells you how efficiently you are progressing compared to planned progress
SPI = Earned Value/ Planned Value
If Schedule Performance is greater than one
you are ahead of schedule
If schedule performance is less than one
you are behind schedule
If schedule performance is 1
all work is completed
Cost Performance Index
Helps you analyze the cost performance of the project
CPI = Earned Value/ Actual Cost
If the cost performance index is one
you are on budget
If the cost performance index is greater than one
you are under budget
If cost performance index is less than one
you are over budget
In Cost Performance Index you have three project forecasting tools
Estimate at Completion
Estimate to Complete
To Complete Performance Index
Estimate at Completion (EAC)
The amount of money the project will cost you when all is said and done
EAC = BAC (budget at completion) /CPI (cost performance index)
OR
EAC =AC + (BAC - EV)
Estimate to Complete (ETC)
The estimated money you’ll have to spend to complete the remaining work
ETC=EAC-Actual Cost
To complete performance Index (TCPI)
Gives you the future cost performance index that you must follow for the remaining work if you want to complete it within a given budget (TCPI)
TCPI equation (when under budget & over budget)
To complete performance index
TCPI =remaining work/remaining funds
TCPI under budget: (BAC - EV) / (BAC-AC)
TCPI over budget: (BAC - EV) / (EAC - AC)
BAC budget at completion
EV Earned Value
AC actual cost
EAC = estimate at completion
How to find remaining work equation - when over budget
RW =BAC ( budget at completion) - EV (earned value)
How to find remaining work equation - when under budget
RW = BAC (budget at completion) - AC (actual cost)
Budget at Completion (BAC)
Total budget allotted to the project
Actual Cost (AC)
Total cost spent
Planned Value (PV)
BAC (budget at completion) * % planned completed work
Earned Value (EV)
EV = BAC (budget at completion) *% actual work completed
Project budget equation
Project budget = project cost +contingency reserve +management reserve
What is the definitive estimate of a project?
-5% to 10% of the estimated budget
Variance at Completion (VAC)
VAC = BAC - EAC
budget at completion - estimate at completion
Communication Channels Formula
Communication channels = n * (n-1)/2
n is the number of stakeholders
Expected Monetary Value (EMV)
Probability * Impact
Procurement Contract has 3 categories
- ) Fixed Price
- ) Cost Reimbursable
- ) Time and Material
Fixed Price Contracts can be broken down into 3 more pieces
- ) Firm Fixed Price (FFP)
- ) Fixed Price Incentive Fee (FPIF).
- ) Fixed Price with Economic Price Adjustment ( FP -EPA)
Point of Total Assumption
PTA = ((ceiling price - target price) / buyers share ratio) + target cost
Cost Reimbursable Contract has 4 parts
- ) Cost Plus Fixed Fee Contract (CPFF)
- ) Cost Plus Incentive Fee (CPIF)
- ) Cost Plus Award Fee (CPAF)
- ) Cost Plus Percentage of Cost (CPPC)
Share Ratio
buyer ratio/seller ratio
Future Value formula
FV = Present Value (1+r)^n r= interest rate n = time period
At IRR, Net Present Value will be
zero, always
highest IRR is always
better
Payback period
PBP = total cash out / average per period cash in
Accuracy
within the quality management system, the assessment of correctness
Acquisition
obtaining human and material resources necessary to perform project activities. Implies cost of resources, not necessarily financial
Activity
a distinct, scheduled portion of work performance during the course of a project
Activity duration estimates
the quantitative assessments of the likely number of time periods that are required to complete an activity
Activity List
a documented tabulation of schedule activities that shows the activity description, activity identifier and a sufficiently detailed scope of work description so project team members understand what work is to be performed
Affinity Diagram
a technique that allows large numbers of ideas to be classified into groups for review and analysis
Alternative Analysis
a technique used to evaluate identified options in order to select the options or approaches to use to execute and perform the work of the project
Analogous Estimating
A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project
Attribute Sampling
Method of measuring quality that consists of noting the presence (or absence) of some characteristic (attribute) in each of the units under consideration
Backward Pass
a critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date
Basis of Estimate
Supporting documentation outlining the details used in establishing project estimates such as assumptions, constraints, level of detail, ranges and confidence levels
Bid Documents
all documents used to solicit information, quotations or proposals from prospective sellers
Bidder Conference
The meetings with prospective sellers prior to the preparation of a bid or proposal to ensure all prospective vendors have a clear and common understanding of the procurement. Also known as contractor conferences, vendor conferences or pre bid conferences
Bottom-Up Estimating
a method of estimating project duration or cost by aggregating the estimates of the lower level components of the WBS
Business Case
a documented economic feasibility study used to establish validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities. may be used before project initiation and may result in a go/no-go decision for the project.
most commonly used to create the project charter.
Determines if expected outcomes of the project justify the required investment. Business need and cost benefit analysis are contained in this.
Cause and Effect Diagram
a decomposition technique that helps trace an undesirable effect back to its root cause
Change Control Tools
Manual or automated tools to assist with change and/or configuration management. Tools should support the CCB activities
Change Management Plan
a component of the project management plan that establishes the change control board, documents the extent of its authority, and describes how the change control system will be implemented
Checklist Analysis
a technique for systematically reviewing materials using a list for accuracy & completeness
Checksheets
a tally sheet that can be used as a checklist when gathering data
Claim
A request, demand, or assertion of rights by the seller against a buyer or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change
Code of Accounts
a numbering system used to uniquely identify each component of the work breakdown structure
Communications Management Plan
a component of the project, program or portfolio management plan that describes how, when, and by whom information about the project will be administered and disseminated
Conduct Procurements
the process of obtaining seller responses, selecting a seller and awarding a contract
Configuration Management Plan
A collection of procedures used to track project artifacts and monitor and control changes these artifacts
Context Diagram
a visual depiction of the product scope showing a business system (process, equipment, computer system) and how people and other systems interact with it
Contract Change Control System
the system used to collect, track, adjudicate and communicate changes to a contract
Control
comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives and recommending appropriate corrective action as needed
Control Account
A management control point where scope, budget, actual cost and schedule and integrated and compare to earned value for performance measurement
Control Chart
the process of monitoring the status of the project to update the project costs and manage changes to the cost baseline
Control limits
the area composed of three standard deviations on either side of the centerline or mean of a normal distribution of data plotted on a control chart, which reflects the expected variation in the data
Cost Baseline
the approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures
Cost Management Plan
a component of a project or program management plan that describes how costs will be planned, structured & controlled
Cost Plus Award Fee Contract (CPAF)
A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee representing seller profit
Cost Plus Fixed Fee Contract (CPFF)
a type of cost reimbursable contract where the buyer reimburses the seller for the sellers allowable costs plus a fixed amount of profit (fee)
Cost Plus Incentive Fee Contract (CPIF)
a type of cost reimbursable contract where the buyer reimburses the seller for the sellers allowable costs, and the seller earns its profit if it meets defined performance criteria
Crashing
a technique used to shorten the schedule for the least incremental cost by adding resources
Create WBS
the process of subdividing project deliverables and project work into smaller, more manageable components
Critical Path Method (CPM)
a method used to estimate the minimum project duration and determine the amount of schedule flexibility on the logical network paths within the schedule model
Decision Tree Analysis
a diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty
Earned Value Management
a methodology that contains scope, schedule and resource measurements to asses project performance & progress
Develop Project Charter
the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities
Diagramming Techniques
approaches to presenting information with logical linkages that aide in understanding
Discrete Effort
An activity that can be planned and measured and that yields a specific output
Discretionary Dependency
a relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired
Estimate Activity Durations
the process of estimating the number of work periods needed to complete individual activities with the estimated resources
Explicit Knowledge
Knowledge that can be codified using symbols such as words, numbers and pictures
External Dependency
a relationship between project activities and non project activities
Fallback plan
an alternative set of actions and tasks available in the even that the primary plan needs to be abandoned because of issues, risks or other causes
Fast Tracking
A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration
Firm Fixed Price Contract (FFP)
a type of fixed price contract where the buyer pays the seller a set amount regardless of the sellers costs
Fixed Price Incentive Fee (FPIF) contract
a type of contract where the buyer pays the seller a set amount and the seller can earn an additional amount if the seller meets defined performance criteria
Fixed Price with Economic Price Adjustment (FPEPA) Contract
a fixed price contract but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes
Forecast
an estimate or prediction of conditions and events in the projects future based on information and knowledge available at the time of the forecast
Forward Pass
a critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the projects start date or a given point in time
Free Float
the amount of time that a schedule activity can be delayed without delay the early start date of any successor or violating a schedule constraint
Functional Organization
an organizational structure in which staff is grouped by areas of specialization and the project manager has limited authority to assign work and apply resources
Funding Limit Reconciliation
the process of comparing the planned expenditure of project funds against an limits on the commitment of funds for the project to identify any variances between the funding limits and the planned expenditures
Grade
a category or rank used to distinguish items that have the same functional use but do not share the same requirements for quality
Histogram
a bar chart that shows the graphical representation of numerical data
Imposed Date
a fixed date imposed on a schedule activity or schedule milestone, usually in the form of a start no earlier than…and finish no later than.. date
Independent Estimate
a process of using a third party to obtain and analyze information to support prediction of cost, schedule or other items
Influence Diagram
a graphical representation of situations showing casual influences, time ordering of events and other relationships among variables and outcomes
Information Management System
facilities, processes, and procedures used to collect, store and distribute information between producers and consumers of information in physical or electronic format
Inspection
Estimation of work product to determine whether it conforms to documented standards
Invitation for Bid (IFB)
Generally, the term is equivalent to request for proposal. However in some application areas it may have a narrower or more specific meaning
Lag
the amount of time whereby a successor activity will be delayed with respect to a predecessor activity
Lead
the amount of time whereby a successor activity can be advanced with respect to a predecessor activity
Level of Effort (LOE)
an activity that does not produce definitive end products and is measured by the passing of time
Make or Buy Analysis
the process of gathering an organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product
Make of Buy Decisions
decisions made regarding the external purchase or internal manufacture of a product
Management Reserve
an amount of the project budget or project schedule held outside of the performance management baseline for management control purposes, that is reserved for unforeseen work that is within scope of the project
Mandatory Dependency
a relationship that is contractually required or inherent in the nature of work
Master Schedule
a summary level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones
Matrix Diagrams
a quality management and control tool used to perform data analysis within the organizational structured created in the matrix. This seeks to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix
Matrix Organization
Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing work of person assigned to the project
Mind Mapping
a technique used to consolidate ideas created through individual brainstorming sessions into a single map to reflect commonality and differences in understanding and to generate new ideas
Monitoring &; Controlling Process Group
Those processes required to track, review, and regulate the progress and performance of the project, identify any areas in which changes to the plan are required and initiate the corresponding changes
Monte Carlo Simulation
An analysis technique where a computer model is iterated many times, with the input values chosen at random for each iteration driven by the input data, including probability distributions and probabilistic branches. Outputs are generated to represent the range of possible outcomes for the project
Multicriteria Decision Analysis
This technique utilizes a decision matrix to provide a systematic analytical approach for establishing criteria such as risk levels, uncertainty and valuation to evaluate and rank many ideas
Network Logic
all activity dependencies in a project schedule network diagram
Network Path
a sequence of activities connected by logical relationships in a project schedule network diagram
Node
a point at which dependency lines connect on a schedule network diagram
Nominal Group Technique
a technique that enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming and prioritization
four steps
- ) question or problem is posed to the group, each person writes down their ides
- ) moderator writes down the ideas on a flip chart
- ) each recorded idea is discussed
- ) individuals vote privately to prioritize the ideas on a scale 1-5
Opportunity
Risk that would have a positive effect on the project’s outcome
Organizational Breakdown Structure
a hierarchal representation of the project organization which illustrates the relationship between project activities and organizational units that will perform those activities
Parametric Estimating
an estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters
Path Convergence
a relationship in which a schedule activity has more than one predecessor
Path Divergence
a relationship in which a schedule activity has more than on successor
Performance Measurement Baseline
Integrated scope, schedule and cost baselines used for comparison to mange, measure and control project execution
Perform Qualitative Risk Analysis
The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics
Perform Quantitative Risk Analysis
the process of numerically analyzing the contained effect of identified individual project risks and other sources of uncertainty
Planning Package
a work breakdown structure component below the control account with known work content but without detailed scheduled activities
Planning Process Group
the processes required to establish the scope of the project, refine the objectives and define the course of action required to attain the objectives that the project was undertaken to achieve
Plurality
Decisions made by the largest block in a group, even if a majority is not achieved
Portfolio
Projects, programs, subsidiary portfolios and operations managed as a group to achieve strategic decisions
Portfolio Management
The centralized management of one or more portfolios to achieve strategic objectives
Precedence Diagramming Method (PDM)
a technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed
Probability and Impact Matrix
a grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs
Procurement documents
The documents utilized in bid and proposal activities, which include the buyers invitation for bid, invitation for negotiations, request for information, request for proposal, and sellers responses
Procurement Documentation
all documents used in signing, executing and closing an agreement.
Procurement Management Plan
A component of the project or program management plan that describes how a project team will acquire goods and services from outside of the performing organization
Procurement Statement of Work
Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services or results
Procurement Strategy
the approach by the buyer to determine the project delivery method and the type of legally binding agreements that should be used to deliver the desired results
Program
Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually
Program Management
the application of knowledge, skills and principles to a program to achieve the program objectives and obtain benefits and control not available by managing program components separately
Project
a temporary endeavor undertaken to create a unique product, service or result
Project Charter
a document issues by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager authority to apply organizational resources to project activities
if external project, a contract is usually preferred, project charter may still be used to establish internal agreements within the org
Project Funding Requirements
Forecast project costs to be paid that are derived from the cost baseline for total or periodic requirements, including projected expenditures plus anticipated liabilities
Project Governance
The framework, functions, and processes that guide project management activities in order to create a unique product, service or result to meet organizational, strategic and operational goals
Project Initiation
Launching a process that can result in the authorization of a new project
Project Management
the application of knowledge, skills, tools and techniques to project activities to meet the project requirements
Project Manager Body of Knowledge
A term that describes the knowledge within the profession of project management. Includes proven traditional practices that are widely applied as well as innovative practices that are emerging
PMO
A management structure that standardizes the project related governance processes and facilitates the sharing of resources, methodologies, tools and techniques
Project Procurement Management
includes the processes necessary to purchase or acquire products, services or results needed from outside the project team
Project Schedule Network Diagram
a graphical representation of the logical relationships among the project schedule activities
Project Team Directory
a documented list of project team members, their project roles and communication information
Proposal Evaluation Techniques
the process of reviewing proposals provided by suppliers to support contract award decisions
Quality
the degree to which a set of inherent characteristics fulfills requirements
RACI Chart
a common type of responsibility assignment matrix that uses responsible, accountable, consult and inform statuses to define the involvement of stakeholders to project activities
Regression Analysis
an analytical technique where a series of input variables are examined in relation to their corresponding output results in order to develop a mathematical or statistical relationship
Request for Information (RFI)
buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability
Request for Proposal (RFP)
used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning
Request for Quotation (RFQ)
request price quotations from prospective sellers of common or standard products or services. Sometimes used in place of request for proposal and in some application areas it may have a narrower or more specific meaning
Requirements Traceability Matrix
a grid that links product requirements from the origin to the deliverables that satisfy them
Reserve Analysis
an analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project
Residual Risk
the risk that remains after risk responses have been implemented
Resource Breakdown Structure
a hierarchical representation of resources by category and type
