PMP - Keeping the Business in Mind (L5)

Question 1

There are no such things as surprise Audits!

Answer 1

We always know what will be audited

Question 2

** Root Cause Analysis **

Answer 2

Examines a problem and seeks to determine the underlying reason or cause of the problem, which can then be used to work on creating a preventative action

Question 3

** Monte Carlo Simulation **

Answer 3

analysis where 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

• Iterative Simulation environment in order to get the probabilistic look of possible outcomes

Question 4

** Decision Tree Analysis **

Answer 4

Diagramming and calculation technique for evaluating chain of multiple options in the presence of uncertainty. Solving the decision tree indicates the decision that will provide the greatest expected monetary value.

• If you have three vendors and your decision tree for each vendor leads to a best & worst case return, the EMV is the sum of these two for each vendor. You always pick the path with the highest EMV
• See Diagram on P. 263

Question 5

** Types of Project Management Organizational Structures **

1.
2.
3.
4.

Answer 5

1. Functional
2. Matrix
3. Projectized
4. Composite

Question 6

** Functional Structure - Project Management Organization **

Answer 6

• Each department is responsible for carrying out
  specific, similar set of activities
• Multiple people perform each type of activity
• Reporting is hierarchical, each individual reports to a
  single manager
• Project Manager’s authority is low, relative to
  functional managers authority

Question 7

** Matrix Structure - Project Management Organization **

Answer 7

• Blend of functional & projectized structures in which
  individuals report upward in the functional hierarchy,
  but they also report horizontally to one or more
  project managers
• Matrixed reporting scheme may be permanent or
  temporary
• Structure may be characterized as weak, balanced or
  strong depending on the relative authority of the
  project manager to the functional manager
  -An organization has strong matrix when the PMs authority is higher than that of the functional manager
• Weak - functional managers power
• Balanced - equal functional manager / PM power
• Strong - PMs power

Question 8

** Projectized Structure - Project Management Organization **

Answer 8

• Project Manager and core team operate as a
  completely separate organizational unit within the
  parent organization
• Core team members are responsible for the work of
  extended team members in their functional area
• Team members are often co-located
• PM reports to a program manager and has a
  significant amount of authority and independence
• May have their own support system such as separate
  procurement department

Question 9

** Composite Structure - Project Management Organization **

Answer 9

• Most modern organizations involve all these
  structures at various levels. It is a combination of all
  the other types of organizations

Question 10

Project Management Office (PMO) - standardizes the project-related governance processes and facilitates sharing of resources, methodologies, tools and techniques.

Three different types of PMO structures:

1. Supportive PMOs
2. Controlling PMOs
3. Directive PMOs

Answer 10

1. Supportive PMOs - provide a consultative role to projects by supplying templates, best practices, training access to info, and lessons learned form other projects
2. Controlling PMOs - provide support and require compliance through various means. May involve adopting project management frameworks or methodologies, using specific templates, or forms and tools conforming to governance
3. Directive PMOs - take control of the projects by directly managing the projects. Small number of PMOs fall into this category.

Question 11

** Kaizen Implementation of Continuous Improvement **

Answer 11

• Improvements are based on many small changes
• Small changes are less likely to require major -
  expenditures of capital
• Ideas come from workers themselves, rather than
  from expensive research, consultants, or equipment
• All employees should continually try to improve their
  own performance
• Workers should be encouraged to take ownership of
  their work, improving motivation

-Small Incremental Improvements to Make Effective Improvements

Question 12

This continuous improvement methodology, sometimes called the Deming cycle, involves four steps:

1.
2.
3.
4.

Answer 12

1. Plan - Define objectives and processes to deliver a
   set of desired results
2. Do - Execute the plan and collect data to determine
   the effectiveness of the process
3. Study - Evaluate the data and compare the results to
   expected outcomes
4. Act - Identify issues with the process, determine root
   causes.

• (PDSA)